Road to Net Zero

Undertaking Emissions Reduction 

Ayala Land, a pioneer in sustainability in the Philippines, began its journey to reduce emissions in 2007 by assessing its carbon footprint and overall environmental impact. The company adopted proactive measures to reduce its resource consumption, through design changes, innovative technology, and influencing company behaviors and culture. Over time, Ayala Land refined its approach and directed its efforts towards managing emissions within its direct (Scope 1) and indirect (Scope 2) control, setting clearer decarbonization targets in 2017 and again in 2021, as the science of climate change mitigation measurement evolved. 

Achieving Carbon Neutrality 

The "Carbon Neutrality 2022" initiative was launched in 2017 with the aim to reduce Scope 1 and 2 emissions across its commercial properties. This involved shifting to renewable energy sources through power purchase agreements bundled with quality Renewable Energy Certificates (RECs). Additionally, Ayala Land initiated forest carbon projects in its private properties to remove emissions from the atmosphere, offsetting the impact of Scope 1 emissions. 

By 2022, the program had succeeded in shifting 91% of commercial properties’ gross leasable area (GLA) to renewable energy sources or power accompanied by quality RECs. Additionally, four out of six carbon forest projects produced 8,732 tCO2e credits. This contributed towards a reduction in Scope 1 & 2 emissions to 14% of business-as-usual levels. With most of its leasing properties already operating with clean energy, the company was ready for the next phase of its decarbonization journey: the reduction of emissions in its supply chain, or Scope 3. 

Year-on-Year Carbon Neutrality Progress (in t-CO2e) and Setting Science-Based Targets

Reviewing our Baseline 

The baseline revealed that 95% of Ayala Land’s emissions footprint came from Scope 3 sources, with “purchased goods and services” emerging as the primary contributor, encompassing materials such as steel, cement and PVC. As experienced by many companies on the net zero journey, getting to net zero emissions presents significant challenges, requiring advancements in technology and supportive policy frameworks. Ayala Land is committed to prioritizing cost-neutral and readily available technologies to mitigate emissions, leveraging the coming years to implement changes and collaborate with supply chain partners to transition towards a renewable energy future conducive to achieving net-zero emissions. 

Implementing Interventions

Aside from shifting the properties to renewable energy sources, the business units and project development leads identified additional interventions which were implemented in 2023 and 2024. This included conducting feasibility studies on readily available technologies to mitigate emissions and engaging with supply chain partners, most notably its steel, cement and PVC suppliers.

Ayala Land’s Emissions Inventory 

Ayala Land has conducted a thorough inventory of the company’s Scope 1, 2 and 3 emissions, covering all activities across the business lines from 2021 to 2024. The company engaged South Pole for the re-measurement and recalculation of GHG emissions based on the actual business and operational activities of the company. 

The table below summarizes the preliminary results of the recalculation. 

Ayala Land's journey to net zero shows the company's continued commitment to responsible development and sustainable operations throughout the organization.