Sustainability in Ayala Land

Sustainability Reporting Framework

The company’s sustainability practices and performance are measured and reported in accordance with global goals, frameworks and standards on sustainability disclosures. ESG assessments are fulfilled and monitored by Ayala Land to benchmark itself against industry best practices and identify and manage emerging environmental, social and governance concerns.


MSCI	As of 2024, Ayala Land Inc. received an MSCI ESG Rating BB. MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers. Learn more about MSCiI ESG Ratings here: bit.ly/4k6Izu5
CDP	In 2024, Ayala Land Inc. received the B - Leadership Rating on Climate Change and B – Management Rating on Water Security from the Carbon Disclosure Project (CDP). Learn more about CDP here: https://www.cdp.net/en
FTSE4Good	FTSE4Good Index: Member since 2019 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that Ayala Land Inc. has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products
Sustainalytics	In 2024, Ayala Land Inc. received an ESG Risk Rating of 20.5 and was assessed by Morningstar Sustainalytics to be at Medium risk of experiencing material financial impacts from ESG factors. The information contained or reflected herein is not directed to or intended for use or distribution to India-based clients or users and its distribution to Indian resident individuals or entities is not permitted, and Morningstar/Sustainalytics accepts no responsibility or liability whatsoever for the actions of third parties in this respect.
S&P	Ayala Land Inc. received an ESG score of 52 on a scale of 0-100 in the S&P Global Corporate Sustainability Assessment (CSA) as of 2024.

Our Sustainability Targets

	2024 Progress	2025 Targets	2030 Targets
Net Zero Emissions	More than 20% emissions reduction vs. 2024 Business as usual	5% emissions reduction vs. a 2021 base year	42% emissions reduction vs. a 2021 base year
Circular Economy	32% of total waste from construction and operations diverted from landfill	35% of total waste diverted from landfill	Zero waste sent to landfill
Green Certification	29 ALI properties certified	24 additional ALI properties certified	100% of properties launched are green-certified

Aligned with Ayala Land’s commitment to Net Zero by 2050, the company also pledged to support the Business Ambition for 1.5°C to set science-based targets for reducing greenhouse gas (GHG) emissions. This initiative was led by the Science Based Targets Initiative (SBTi)in partnership with the United Nations Global Compact and the We Mean Business Coalition. In September 2024, the SBTi has verified Ayala Land Inc’s science-based net-zero emissions reduction targets for the near and long term.

Aside from Net Zero and Circular Economy targets, we have also set 2030 targets for the following:

All new developments shall be connected to renewable energy sources
10% reduction of water withdrawal thru recycled water
20% increase utilization of low-carbon materials for construction
All suppliers and service providers to undergo ESG screening

Explore Our Path to 2030 Sustainability

We're taking real steps toward cleaner energy, smarter resource use, and responsible partnerships—see how we're making it happen.

Materiality

Ayala Land identifies and manages economic, environmental and social issues and topics that are material to its stakeholders and core businesses, aligned with the UN Sustainable Development Goals (SDGs), the six capitals of the Integrated Reporting <IR> Framework, Global Reporting Initiative (GRI) Indicators, Sustainability Accounting Standards Board (SASB) Material Topics, and Task Force on Climate-Related Financial Disclosures (TCFD) Recommendations. 

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Stakeholder Engagement

Ayala Land’s vision of “enhancing land, enriching lives for more people” rests on the support and contribution of its stakeholders. As such, the company engages with its stakeholders through various means and initiatives to understand and address issues and concerns and build and maintain strong relationships for long-term shared value creation. 

Stakeholder Group	Issues and Concerns of Stakeholders	Engagement Means and Initiatives of Ayala Land	Frequency of Engagement
Property Buyers: Provide feedback on market demands and preferences for projects and influence improvements for future developments.	Accessibility and affordability of real estate products    Business Ethics    Climate Adaptation & Resilience    Customer Health & Safety / Tenant Well-being    Customer Relations    Environmental Compliance    Project Delivery & Quality    Resource Management and Efficiency	Customer satisfaction surveys   Customer service representatives   One-on-one engagements   Website and Social Media	Weekly, Monthly
Brokers and Sellers: Drives property sales and market real estate products to buyers and locators.	Accessibility and affordability of real estate products   Business Ethics    Climate Adaptation & Resilience    Customer Health & Safety / Tenant Well-being    Environmental Compliance    Green Certifications    Labor Practices    Learning & Development    Project Delivery & Quality    Resource Management and Efficiency	Customer satisfaction surveys   Customer service representatives   One-on-one engagements   Loyalty and appreciation programs   Training and learning sessions; blended learning modalities	Weekly, Monthly
Residents, Shoppers, Tenant Employees, Tourists, and Hotel Guests: Drives foot traffic to tenants, demand for spaces and services, and the increase in occupancy rates. They influence market preferences and economic positioning for properties.	Climate Adaptation & Resilience    Community Investment & Engagement     Customer Health & Safety / Tenant Well-being    Green Certifications    Resource Management and Efficiency	Community events   Customer satisfaction surveys   Customer service representatives   One-on-one engagements   Loyalty and appreciation programs   E-newsletters   Website and Social Media	Daily, Weekly, Monthly
Employees and Workers: Contribute to the overall value and success of project developments and the whole organization.	Business Ethics    Climate Adaptation & Resilience    Diversity, equity, and inclusion   Labor Practices    Learning & Development    Occupational Health & Safety    Risk and crisis management   Talent Attraction & Retention	Access to healthcare services   Company-wide social engagement activities and events   Corporate townhalls   Employee orientations, briefings, surveys and interviews   Grievance mechanisms and channels   Employee performance reviews and evaluations   Training and learning sessions; blended learning modalities   Volunteer Programs with partner organizations and local communities	Daily, Weekly, Monthly Quarterly
Business Partners Suppliers and Service Providers: Ensure the timely delivery of quality materials, services, and expertise, enabling the successful execution and operation of project developments.	Business Ethics    Corporate Policies & Risk Management   Customer Health & Safety / Tenant Well-being    Green Certifications    Occupational Health & Safety   Project Delivery & Quality    Sustainable Procurement Practices	Corporate Governance Manual   Policy reviews and communication   Supplier Code of Conduct   Assessment, engagement, and capacity building   Partnership projects for innovative solutions	Weekly, Monthly, Quarterly
Creditors: Provide the necessary financial support for projects and operations while ensuring financial stability and growth.	Business Ethics    Debt servicing capacity   Financial and Operating Performance	Financial Sustainability and Capital Management Strategies   Regular engagement with partner banks and investors	Quarterly
Shareholders and Analysts: Provide insights for strategic financial decisions and ensuring the company's long-term profitability and growth.	Business Ethics    Climate Adaptation & Resilience    Corporate governance   Corporate Policies & Risk Management    Debt servicing capacity   Financial and Operating Performance   Occupational Health & Safety     Project Delivery & Quality	Financial Sustainability and Capital Management Strategies   Regular engagement with partner banks and investors	Quarterly
Communities and NGOs       Provide insights on the needs of the local communities and concerns for topics on livelihood, education, biodiversity, and so on.	Community Investment & Engagement     Customer Health & Safety / Tenant Well-being    Local Economic Development	Alagang Ayala Program   Community events   Community consultations and meetings   Partnerships in national and local projects, programs and initiatives   Dialogues and meetings with stakeholders, including leaders at the barangay, local government and national agency levels	Monthly
National and Local Government Units       Influences the overall growth of projects by ensuring alignment with national and local policies and regulations for the environment and the public.	Community Investment & Engagement     Customer Health & Safety / Tenant Well-being    Local Economic Development	Alagang Ayala Program   Community events   Community consultations and meetings   Partnerships in national and local projects, programs and initiatives   Dialogues and meetings with stakeholders, including leaders at the barangay, local government and national agency levels	Monthly
Media      Enhance brand visibility, promote initiatives and milestones, and shape public perception, driving awareness and interest in projects and developments.	Accessibility and affordability of real estate products    Business Ethics    Climate Adaptation & Resilience    Corporate governance   Customer Health & Safety / Tenant Well-being    Customer Relations    Environmental Compliance    Project Delivery & Quality    Resource Management and Efficiency	Interviews    Feedback and responses to media enquiries   Media conferences and speaking engagements   Press releases   Annual Report   Website and Social Media	Monthly,  Quarterly

Contribution to the UN SDGs

In 2015, the United Nations (UN) established the Sustainable Development Goals (SDGs) as the "blueprint to achieve a better and more sustainable future for all".

Aligned with the Ayala Group’s Sustainability Blueprint of providing meaningful impact to the UN SDGs, Ayala Land champions SDG 11 on sustainable cities and communities with our vision of enhancing land and enriching lives. Other SDGs and specific targets where the company can generate the biggest positive contribution have also been identified.

SDGs	How the company contributes to specific SDG targets
1: No Poverty	1.2 Ayala Land contributes to nation-building and poverty eradication by creating value for the community and the business where it is located. It invests in human capital and provides local communities with opportunities for employment, livelihood, and basic health services. It conducts training programs for the communities so that their available workforce can seek employment in its projects and other workplaces.
3: Good Health and Well-Being	3.9 Ensuring the health, safety and well-being of its employees, workers and customers is central to Ayala Land’s operations. Due diligence practices and health and safety standards are continuously developed and implemented across the organization so that customers and the general public in Ayala Land’s shopping centers, managed estates, and properties, and workers in its construction sites have safe experiences.
5: Gender Equality	5.5 We integrate micro, small, and medium-sized enterprises into the supply chain and promote innovative technologies to maximize resource efficiency for all at all stages of development.
6: Clean Water and Sanitation	6.3 Ayala Land ensures that its properties and projects are properly connected to the wastewater treatment facilities of Manila Water and Maynilad, where possible. In areas which are not serviced, Ayala Land installs Septage Treatment Plants (STPs) for proper treatment of wastewater.  6.4 Water management and conservation measures are implemented to address potential future water risks. New technologies and behavioral adjustments are carried out to minimize water consumption and achieve maximum water efficiency while maintaining a level of comfort in Ayala Land developments.
7: Affordable and Clean Energy	7.2 To the maximum extent possible, Ayala Land sources renewable energy for its properties. It aims to maintain a significant share of its energy mix to come from renewable sources.  7.3 Ayala Land commits to improving the energy efficiency of its projects during planning, construction and operational stages. It implements energy management programs, invests in energy-efficient technologies and undertakes operational adjustments to conserve energy. The company actively expands its green building portfolio through LEED and other equivalent certifications.
8: Decent Work and Economic Growth	8.3 Through the Alagang AyalaLand program, the company promotes job creation and entrepreneurship by providing social enterprises with spaces in Ayala Malls nationwide where they can incubate, restart and develop their businesses.  8.7 The company rejects any form of forced, compulsory and child labor, carefully auditing vendors and suppliers to ensure that no underage worker is employed in their operation and that they adhere to general labor standards.  8.8 Ayala Land is committed to the protection of labor rights and advancement of safe and secure working environments of all employees within the company and its value chain. The company adheres to all relevant laws and regulations and on labor rights and health and safety, and establishes internal mechanisms such as the Code of Ethical Behavior and Vendor’s Code of Ethics to ensure that working conditions in its projects are safe and workers are treated with respect and dignity.  8.9 Ayala Land prioritizes local hiring for its projects, including tourism estates. To promote sustainable tourism, it integrates local communities into the supply chain to provide them with sustainable livelihood opportunities. Local products are sourced and local merchants are allocated with spaces to showcase their goods and services
9: Industry, Innovation and Infrastructure	9.3 Where possible, micro-, small- and medium-sized enterprises are integrated into the company’s supply chain to help in their stabilization and growth as part of the Alagang AyalaLand program.  9.4 Ayala Land aims to ensure the efficient use of resources such as materials, energy and water, and thus has dedicated teams that undertake investments, research and development and operational adjustments on resource efficiency and adoption of cleaner technologies and processes.
10: Reduced Inequalities	10.3 Ayala Land is committed to supporting diversity and equal opportunity in the workplace. In accordance with the company’s Code of Ethics, it does not tolerate discrimination based on race, gender, age, religious affiliation, disability, union membership, or marital status. This commitment encompasses hiring and all employment practices, such as but not limited to promotions, pay and rewards, succession planning, and access to training.
11: Sustainable Cities and Communities	11.1 To enhance inclusive and sustainable urbanization by increasing sevenfold the number of launched affordable housing units  11.2 Principles of pedestrian mobility and public transport connectivity are employed to provide alternatives to car use. The Company promotes walking, biking and commuting in its developments through pedestrian only areas and walkways, bike infrastructure and transit stops and terminals.  11.7 Ayala Land is committed to allocating open and green spaces to strengthen site resilience and raise the quality of life in its communities. The company provides accessible green spaces for social interaction and physical activities, promoting customer health and well-being.
12: Responsible Consumption and Production	12.2 Ayala Land is implementing resource efficiency measures for its material, energy and water consumption to address the continuing loss of natural resources.  12.3 The company works to divert food waste from the landfill generated from its properties through composting and other waste diversion initiatives.  12.5 Under the Circular Waste Management program, Ayala Land is committed to a circular economy model to eliminate waste disposal by continually using materials in one way or another. The company aims to reduce solid and hazardous waste generation and landfilling by strictly implementing segregation at source, regularly conducting waste management audits, providing alternative destinations where waste is recycled, reused or reprocessed, and using these materials in new construction projects.  12.6 To enable the company to continuously adopt and report sustainable practices, sustainability performance and targets are integrated in its annual report.
13: Climate Action	13.1 Ayala Land employs strategies to strengthen resilience and adaptive capacity to climate change impacts. These include undertaking technical due diligence and environmental scanning, compliance with all relevant codes, standards and laws, establishment of 24/7 operation centers to facilitate readiness, and provision of emergency response teams.
14: Life Below Water	14.2 For tourism developments located along coastal areas, Ayala Land is committed to marine ecosystems conservation and protection. The company works closely with the community and local government for the prevention of illegal fishing, coral and reef fish assessments, environmental education campaigns, marine conservation programs and more.
15: Life On Land	15.2 & 15.B Ayala Land works to restore carbon forests or carbon sinks within its landbank as part of the carbon neutrality and net zero program. Afforestation and reforestation are conducted by working with environmental organizations and local communities to rescue and nurture seedlings, plant trees and remove competing vegetation.  15.5 Studies on native flora and fauna found within the property or estate are integrated into the business model, development plan, and operations to conserve and protect biodiversity. To help minimize impacts in tourism developments, biodiversity monitoring systems that identify threatened species are conducted by project teams regularly.  15.8 Ayala Land is committed to promoting native trees in its developments that enhance biodiversity. It works to increase the number of native tree species and maintain a high share of native trees in its tree inventory.
17: Partnerships for the Goals	17.16 We foster strong partnerships and continuous engagements with our communities, the local government, and industry leaders to cultivate growth and sustainable development for the organization.