Ayala Land

Between 2016 and 2021 the company decreased its in-use emissions intensity of managed buildings at the rate required by its 1.5°C pathway. The required historical annual decrease in emissions intensity was around 9% and the company’s annual emissions reduction averaged 50% annually. Ayala Land’s main strategy to reach net-zero emissions is to shift its energy mix to renewables. To achieve this, the company shifted the use of 65 buildings or 85% of the total mall and office area to renewable energy sources through power purchase agreements (PPA). However, the company excludes emissions from resorts, warehouses and residential properties from its report, which account for around 31% of its emissions.

Ayala Land’s vendors are required to complete a ‘Green Metrics’ form to verify their sustainable practices. This assessment includes compliance with environmental management systems, environmental certification and sustainability programs. However, the metrics used to quantify this are not publicly disclosed. In 2021, the company engaged with 51% of its vendors through coffee talks to discuss environmental standards. However, there is no evidence that suppliers are required to publicly report their greenhouse gas (GHG) emissions. The company can improve by including emissions reductions in its selection of new suppliers and contract renewal of existing suppliers.

Although the company has strategies to align some parts of its business to a low-carbon transition, there is no evidence that Ayala Land has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

Ayala Land has a net-zero target for scope 1, 2 and 3 emissions by 2050 and an interim target to achieve zero scope 1 and 2 emissions by 2022 for its property management activities. The company does not report an interim target for its scope 3 emissions nor for its property development business.

Ayala Land plans to reduce in-use emissions of managed buildings through energy efficiency and renewable PPAs. However, the company does not have a publicly available transition plan, nor has it conducted scenario analysis to inform its strategy.

Ayala Land has been expanding the use of renewable energy through PPAs in its managed buildings. In 2021, the company shifted 65 buildings or 85% of the total mall and office GLA. Ayala Land’s concrete batching plants use fly ash, reducing cement consumption in 2021 by 20%.

For the past five years, the company has been increasing procurement of renewable energy by approximately 13% annually and reached 85% in 2021. As of end-2021, the company has 11 LEED-certified buildings, representing 23% of total office GLA and 15% of hotel rooms.

Ayala Land has not created a transition plan. The company has started to take action to transition its business model to align with the low-carbon transition. The company has decreased its in-use emissions in line with its 1.5°C pathway. To address its embodied emissions of developed buildings, Ayala Land’s concrete batching plants use fly ash, reducing cement consumption in 2021 by 20%. However, property development activities are not included in the company’s interim target.

Ayala Land publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found that the company undertakes low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate that the company engages in social dialogue and with stakeholders in its just transition planning.

There was evidence to indicate Ayala Land has a public commitment stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found that the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found that the company’s assesses employment dislocation risks.

The company discloses the actions it takes to provide up-skilling opportunities for workers and affected stakeholders. For instance, it offers online self-paced learning platforms for employees to upskill anytime and provides training workshops on sustainable farming technique to local residents. However, no relevant disclosure was found that the company embeds equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found that the company has a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

Ayala Land discloses its contribution to providing social protection for the affected stakeholders. For instance, the company initiated Project Kasibulan which considers the economic needs of the local communities that depend on the forest for resources and livelihood and implement payment for ecosystem services (PES) arrangement to decrease the unsustainable use of natural resources in Oriental Mindoro. However, no relevant disclosure was available to display if the company identifies impacts of the low-carbon transition on social protection for workers, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

Ayala Land has a grievance mechanism available to workers and external stakeholders. However, no other policies or commitments of the company related to respect for human rights were found. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

While Ayala Land commits to respecting the health and safety of its workers, no evidence was found that the company expects the same commitment of its business relationships. Furthermore, no evidence was found of a time-bound target for paying all workers a living wage. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Moreover, no evidence was found that the company commits to gender equality and women’s empowerment.

Ayala Land commits to protecting personal data and discloses a privacy statement regarding use of personal data. No evidence was found that the company discloses its global tax strategy and the corporate income tax paid for each relevant jurisdiction. There is evidence that the company has a policy prohibiting bribery and corruption, but no evidence was found that it includes corresponding clauses in its contracts with business relationships. No relevant disclosure was found of the company’s lobbying and political engagement policy and its expenditure on lobbying activities.