Ayala Land, Inc., the First Publicly-Listed PH Property Developer to Get its Net Zero Targets Validated by the SBTi

Ayala Land is the Philippines' first publicly traded property development company to receive validation and approval from the Science Based Targets Initiative (SBTi) for its near-term and net-zero science-based greenhouse gas (GHG) emission reduction goals.

​This milestone demonstrates Ayala Land's commitment to sustainability and climate action by aligning its strategy with the global objective of reducing warming to 1.5°C over pre-industrial levels, in accordance with the Paris Agreement and the UN-backed Race to Zero campaign.

Ayala Land has consequently committed to achieving net zero greenhouse gas emissions across its value chain by 2050. Ayala Land has committed to reducing its absolute scope 1 and 2 GHG emissions by 42% by 2030 from a 2021 base year, as well as its absolute scope 3 GHG emissions by 29.4% within the same period, which includes land-related emissions and removals from bioenergy feedstocks. Ayala Land's long-term goals, on the other hand, are to cut absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2021 baseline year, as well as absolute scope 3 GHG emissions by 90% within the same period, which includes land-related emissions and removals from bioenergy feedstocks.

Ayala Land and the Ayala Group of Companies launched on their Net Zero journey in 2021, when they announced a critical commitment to achieve Net Zero Greenhouse Gas (GHG) emissions by 2050. Following a thorough review of its operational and supply chain emissions, Ayala Land completed its GHG inventory with a baseline year of 2021. By the end of 2022, Ayala Land had completed a high-level net zero plan that included SBTi-aligned targets for 2030 and 2050, thanks to the assistance of the South Pole Group, a global decarbonization consultancy.

​Ayala Land's action plans to accomplish its science-based aims include converting its commercial properties to renewable energy sources via power purchase agreements reinforced by quality Renewable Energy Certificates (RECs). By the end of 2023, renewable energy sources would have powered 91% of Ayala Land's entire gross leasable area (GLA).

Other strategic interventions that Ayala Land intends to implement in the next few years include selecting cost-neutral and easily available technology to reduce emissions. These interventions include converting service trucks and construction equipment to electric vehicles, switching backup generators to fuel cells, and replacing air-conditioning refrigerants with lower global warming potential refrigerants like hydrofluoroolefin (HFO).

​Ayala Land's supply chain accounts for 75% of its total GHG emissions, primarily from building materials including steel, cement, and PVC. Ayala Land will actively cooperate with its supply chain partners to accelerate their own transition to a renewable energy and circular economy future, achieving net-zero emissions as well.

One of Ayala Land's major sustainability imperatives is its Net Zero plan, which promises to dramatically reduce environmental impact while also contributing to global climate change mitigation efforts. Following global frameworks and standards, such as the SBTi criteria and recommendations, promotes transparency and accountability in sustainability reporting and disclosures.