Conglomerate Ayala Corp. on Thursday announced its commitment to achieve net-zero greenhouse gas emissions by 2050.
Ayala President and CEO Fernando Zobel de Ayala said during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit, that the company hopes to develop its greenhouse gas footprint that includes all relevant emissions from the value chain. These include its direct emissions from its units and indirect emissions from the generation of purchased electricity.
Zobel said the move aligns Ayala with the global movement for climate action, using the Paris Agreement’s goal of limiting global warming to 1.5C compared to pre-industrial levels.
“We believe that we have the capabilities and collective will to make this happen,” Zobel said.
“We are partnering with South Pole, a leading project developer and global climate solutions provider that has worked with some of the world’s largest institutions on their own climate ambitions. We will also regularly report our progress, share our learnings, and work with like-minded peers to develop collaborative and comprehensive solutions to present and future climate challenges.”
Its business units will have their own net zero roadmap, which will be refined and validated regularly. It will have interim targets to achieve before the 2050 deadline, he said.
Some of its companies have already taken steps to achieve this goal.
For instance, AC Energy Holdings Inc. and Ayala Land Inc. have recently signed a power supply agreement. Under the deal, the energy company’s 120 megawatt solar plant in Alaminos, Laguna will supply Ayala Land’s commercial properties up to 2050.
AC Energy and Bank of the Philippine Islands, meanwhile, have agreed to work together towards the early retirement of its coal facility at South Luzon Thermal Energy Corp. by 2040, 15 years ahead of its technical life, while the lender will stop financing new greenfield coal power generation projects.
“We are excited at these bold steps by AC Energy, Ayala Land and BPI, and will share more about these in the next few days,” Zobel said.
SLTEC is a 50-50 joint venture between AC Energy and Trans-Asia Oil and Energy Development Corp. of the Phinma Group.
Ayala’s announcement of its net zero ambition comes ahead of the 26th United Nations Climate Change Conference of the Parties (COP26) to be held in Glasgow, United Kingdom in November, where signatories to the Paris Agreement will be reporting back on progress made since 2015.
Last April, the Philippines submitted its first nationally-determined contribution to the Paris Agreement, committing to a projected greenhouse gas emission reduction and avoidance target of 75 percent by 2030.
“Our commitment to net zero greenhouse gas emissions by 2050 signifies Ayala’s intent to contribute to the greater good, and to be a significant partner for sustainable development, a progressive Philippines, and a better world. We are delighted to start this ambitious journey,” Zobel said.