AboitizPower

AboitizPower states that it wishes to align with the Philippines’ Nationally Determined Contribution (NDC) but does not specify any targets. The company should develop a long-term target that aligns with its 1.5°C pathway and covers all emissions from its sale of electricity. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

AboitizPower’s emissions intensity for its own generation significantly increased between 2017 and 2022. The company brought a new coal plant online in 2019 causing a significant spike in its emissions intensity. Since then, the company has committed to not open any new coal power plants. Consequently, based on forward-looking projections of the company’s assets, its emissions intensity is expected to reduce between 2022 and 2027 but not at a rate aligned with its 1.5°C pathway. AboitizPower’s commitment to not open any new coal power plants is not sufficient. To improve, the company should take more ambitious steps and aim to phase out unabated coal by 2040.

AboitizPower discloses evidence of transition planning, but this can be improved. The company has set long-term goals for renewable energy capacity but lacks short-term measures to drive action towards those goals. Similarly, the company has conducted climate change scenario analysis using a 1.5°C pathway but lacks evidence to show this is being used to inform its strategy. The company has identified the cost of climate opportunities but can improve by disclosing the carbon price used to make this assessment. Similarly, the company provides a planned total spending for its renewable energy capacity but can improve by disclosing more detailed financial commitments.

AboitizPower states that it wishes to align with the Philippines’ NDC but does not specify any emissions targets. The company has set a target to develop an additional 3.7 GW of renewable energy capacity and achieve a 50:50 balance between thermal and renewable capacity by 2030.

The company plans to invest USD 3.5 billion in low-carbon technology over the next ten years. It also identifies the significance of driving energy efficiency among its clients and is promoting smart metering and Internet of Things (IoT) solutions, as well as demand optimisation for customers. Though AboitizPower has committed to not opening any new coal power developments, it has recently announced its investment in an existing development and has no plans to reduce its fossil fuel generation.

AboitizPower has disclosed plans for renewable energy growth; however, the company does not disclose its spending on low-carbon technology or research and development (R&D) in 2022. There is also no evidence that the company is seeking to address life cycle emissions from its operations. Additionally, there is no evidence that AboitizPower has a supplier, client or policy engagement strategy.

AboitizPower’s emissions intensity significantly increased between 2017 and 2022. This is likely due to the company bringing a new coal plant online in 2019. The company does not disclose sufficient information to assess its emissions intensity for its purchased power, which represents a fifth of the company’s total sold power.

As AboitizPower increases its renewable energy portfolio to achieve its goal for a 50:50 split between renewable and thermal generation capacity by 2030, its emissions intensity is projected to decrease. However, the company is projected to significantly exceed its 1.5°C carbon budget by 2037 because it has no plans to reduce its fossil fuels. It is not sufficient for Aboitiz to increase its renewables capacity; it must also make plans to reduce its fossil fuel capacity and work with external stakeholders to reduce emissions.

No evidence was found of the company’s commitment to social dialogue or the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking 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 the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found 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 of 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 of the company’s assessment of employment dislocation risks. The company discloses the actions it takes to provide reskilling and upskilling opportunities for workers and affected stakeholders. For instance, it provides subscription to LinkedIn Learning to its employees and offers Aboitiz Scholarship Program for scholars. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having 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.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, 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.

No evidence that the company commits to respecting human rights and the ILO fundamental rights at work. Moreover, there is no evidence that shows if the company expects its business relationships to respect the ILO fundamental rights at work. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of 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. The company commits to gender equality and women’s empowerment.

The company commits to protecting personal data, and it has a privacy statement regarding the collection, sharing and access to personal data. However, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no evidence found that the company has a lobbying and political engagement policy and that it does not make political contributions. No relevant disclosure was found of the company’s expenditure on lobbying activities.