Building a greener tomorrow with Ayala Land becoming the first publicly traded developer with SBTi-endorsed net zero targets

Ayala Land is changing the future of real estate, not only by creating iconic spaces, but also by leading activities for sustainable development. As the first publicly-traded developer in the Philippines to have net-zero targets endorsed by the Science Based Targets Initiative (SBTi), Ayala Land is setting new standards in green performance, demonstrating that development and environmental responsibility can thrive together.

The company’s drive to achieve net zero greenhouse gas (GHG) emissions by 2050 began in 2021. It began with a comprehensive assessment of its operations and supply chain and the establishment of a greenhouse gas inventory based on 2021 data. By the end of 2022. Ayala Land has developed an action plan in line with SBTi guidelines, setting ambitious targets for 2030 and 2050 in line with the South Pole Group’s guidelines, thereby paving the way to a greener future.

Imagine playing with a toy car that consumes a battery and emits fake smoke – an action similar to the direct energy used by Ayala Land (Scope 1). Now think about the electricity that powers your home also producing fake smoke – the Land of Ayala needs this energy too (Scope 2). This “fake smoke” symbolizes greenhouse gas emissions, and Ayala is working diligently to reduce them. By 2030, the company aims to reduce these emissions by 42 percent, as well as reduce emissions from its supply chain (Scope 3) by almost 30 percent. The aim is to reduce them by 90 percent by 2050 to help keep the air and planet clean.

These efforts are part of global initiatives such as the Paris Agreement and the UN-backed Race to Zero campaign, which aim to limit warming to 1.5°C. Ayala Land is committed to transforming its commercial properties into sustainable spaces with a focus on renewable energy through strategic power purchase agreements and high-quality renewable energy certificates (RECs). By the end of 2023, 91 percent of the total gross leasable area was powered by renewable sources. The company also plans to further reduce emissions by switching to electric company vehicles, converting backup generators to fuel cells and using environmentally friendly refrigerants.

With 75 percent of greenhouse gas emissions coming from the supply chain – mainly from materials such as steel, cement and PVC – Ayala Land works with partners to promote the transition to renewable energy and a circular economy. This proactive approach is part of the Net Zero Action Plan, aligned with global standards such as SBTi to ensure transparency and accountability in sustainability efforts.