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.

Materiality Assessment

From the company’s 2013 Materiality Assessment and focused discussions within the company’s business units, stakeholder surveys, media reports, and the Board-level Sustainability Committee, four aspects were identified as essential for Philippine development: vulnerability to the effects of climate change and natural disasters; need for pedestrian mobility in urban areas; continuing loss of natural resources; and socio-economic imbalances.

The results from the assessment led to the determination of Ayala Land’s Sustainability Four Focus Areas: site resilience, pedestrian mobility and transit connectivity, resource efficiency, and local economic development.

While these focus areas remain relevant today, emerging climate concerns and external factors have prompted us to conduct a double materiality assessment to strengthen our ESG approach. Details of the double materiality assessment are discussed below.

Ayala Land's Material Topics

To measure Ayala Land’s performance and report its impact on local and global development, Ayala Land identified UN SDGs and GRI, SASB and TCFD topics that correspond to the four focus areas and other material topics.

	Site Resilience	Pedestrian Mobility and Transit Connectivity	Resource Efficiency	Local Economic Development	Corporate Governance and Risk Management	Labor Practices and Decent Employment
GRI	303: Water and Effluents   304: Biodiversity   307: Environmental Compliance	203: Indirect Economic Impacts   416: Customer Health and Safety	204: Procurement Practices   301: Materials   302: Energy   303: Water and Effluents   305: Emissions   306: Waste   308: Supplier Environmental Assessment	202: Market Presence   203: Indirect Economic Impacts   401: Employment   404: Training and Education   411: Rights of Indigenous People   413: Local Communities	201: Economic Performance   205: Anti-Corruption   206: Anti-Competitive Behavior	402: Labor Management Relations   403: Occupational Health and Safety   405: Diversity and Equal Opportunity   406: Non-Discrimination   407: Freedom of Association and Collective Bargaining    408: Child Labor   409: Forced Labor   412: Human Rights Assessment
SASB	IF-RE-450: Climate Change Adaptation		IF-RE-130: Energy Management   IF-RE-140: Water Management   IF-RE-410: Management of Tenant Sustainability Impacts   IF-RE-450: Climate Change Adaptation		IF-RE-450: Climate Change Adaptation
TCFD	Strategy   Metrics and Targets		Strategy   Metrics and Targets		Governance   Strategy   Risk Management
UN SDGs	11: Sustainable Cities and Communities   13: Climate Action   14: Life Below Water   15: Life on Land	3: Good Health and Well-Being   9: Industry, Innovation, Infrastructure   11: Sustainable Cities and Communities	6: Clean Water and Sanitation   12: Responsible Consumption and Production   11: Sustainable Cities and Communities    17: Partnerships for the Goals	1: No Poverty   8: Decent Work and Economic Growth   10: Reduced Inequalities   11: Sustainable Cities and Communities   17: Partnerships for the Goals	17: Partnerships for the Goals	5: Gender Equality  8: Decent Work and Economic Growth

Materiality Review

Ayala Land is committed enhancing its ability to quantify and assess the impacts of its operations on society, business, and the environment. The conduct of a comprehensive Materiality Review will shape the framework of our sustainability strategy, guiding the development of policies and projects aimed at mitigating the negative impacts and enhancing the positive impacts. Furthermore, future company disclosures will be aligned with International Financial Reporting Standards (IFRS) requirements, specifically for sustainability-related financial information (S1) and climate-related disclosures (S2) for the succeeding reporting periods.

Identification of Material Topics

Ayala Land conducts an annual review its material topics through discussions with stakeholders and core businesses. Adhering to the materiality assessment practices of the IIRC, GRI, and SASB reporting standards,, thirty (30) material topics were considered for review. These were derived based on the company’s current ESG approach and focus areas, through a peer benchmarking analysis, and by reviewing existing and upcoming regulatory standards and frameworks.

Under a double materiality approach, Ayala Land’s ESG topics were assessed by the company’s impacts to the environment and society and by the impact of the external environment on the company’s financial performance how we create value.

Engagement with Stakeholders

Representatives from a range of relevant stakeholder groups were invited to provide feedback on the identified material topics to obtain a perspective on the relative importance of the company’s material issues as it impacts our stakeholders and our business.

Analysis and Prioritization

Results from the double materiality assessment plotted the 30 material topics into three distinct categories on an impact matrix.

Critical Impact Topics: The most important material issues to focus on, with the highest potential impact on business success
High Impact Topics: Material issues enabling progress on ESG priorities with a high potential impact on business success
Moderate Impact Topics: ESG topics to maintain and monitor performance

Validation of Results

This 2025, further review on Ayala Land’s material topics and engagement workshops with our stakeholders will be conducted to validate the results of the double materiality assessment. The company will also engage a third-party consultant to verify our materiality process and results, ensuring that our Focus Areas will be best guided in the planning and execution of sustainability projects and programs.