Ayala Group gears up to a low-carbon economy; strengthens commitment to TCFD
The Ayala group is coming strong in responding to the call for more effective climate related financial reporting with its business units signing as official supporters of the Task Force on Climate-related Financial Disclosures (TCFD). Recognizing that climate change is a universal challenge that could irreversibly devastate communities and organizations, the Ayala group took deliberate steps in affirming its resolve, supported by initiatives to protect and renew the environment. Now joining the more than 1,800 TCFD supporters from 78 countries are Ayala Land Inc, Bank of the Philippine Islands, Globe Telecom Inc., AC Energy, Manila Water Co., and Integrated Micro-electronics Inc. – setting another milestone for the group since its pioneering effort to report on TCFD disclosures in its 2019 Integrated Report.
TCFD is a set of globally recognized recommendations by the Financial Stability Board that encourages organizations to align their strategies and financial reporting to the risks and opportunities associated with climate change. Adoption of these recommendations helps companies build a more resilient financial system, based on more transparent climate-related disclosures, risks, and opportunities.
With this strengthened commitment, the newly signed-up business units of Ayala will undergo a gap analysis against the four pillars of TCFD: Governance, Strategy, Risk Management, and Metrics & Targets. Each organization will disclose according to the 11 recommendations and set up strategies that will ensure adherence to the four pillars. Beyond helping investors, lenders, and insurers have a better view of the company’s longevity and resilience, this will help Ayala navigate the financial landscape as it transitions to a low-carbon economy.
This bold step is in line with Ayala Corporation’s Sustainability agenda, one that is backed by commitments of CEOs across the group:
Ernest L. Cu, Globe President and CEO, emphasizes the responsibility they have in ensuring they positively contribute to the environment as they serve their customers, “As a sustainability leader, we are mindful of our impact on Filipinos and our society. That is why we leverage our strong culture of innovation and use of technology to mitigate risks to our business operations and protect the environment. Climate change is a global concern that requires an ‘all of nation’ approach to manage its impact. In supporting the Task Force on Climate-related Financial Disclosures (TCFD), Globe joins a robust multi-sector international alliance to address climate-related risks through science-based research, financial information, and disclosures. We invite our partner vendors, customers and the rest of our stakeholders to collectively join us in taking action on climate change for a sustainable future.”
BPI President and CEO, Jose Teodoro “TG” K. Limcaoco, also expresses the bank’s aim to further integrate sustainability in the business and encourages their stakeholders, saying, “This ongoing pandemic magnified the importance of having a strategy to create long-term value and longevity. BPI has contributed significantly to nation-building in the past 170 years, and we are committed to continue our role in shaping a better Philippines by integrating sustainability into our strategies and practices. We support the Task Force on Climate-related Financial Disclosures (TCFD) as this will help us better understand climate-related risks, and more importantly, put us in a better position to address and mitigate potential risks and seize opportunities. We encourage all our stakeholders, customers, and partners to commit to responsible business practices for a more sustainable and brighter future.”
Manila Water President and CEO, Jose Rene Gregory D. Almendras, also sees TCFD as an avenue to further engage with stakeholders and says, “Manila Water adopted a climate change policy in 2007, even before a law was passed, because we knew we had to commit to climate change adaptation efforts to ensure resilience towards situations of ‘too much water’ and ‘too little water’ brought about by extremes in the water cycle. The disclosure recommendations from TCFD will hopefully gain us more support from our stakeholders in taking collective action to address this global issue.”
Meanwhile, IMI President and CEO Arthur R. Tan says, “IMI has always been in the forefront of pioneering ESG values in the manufacturing sector for the Philippines. As a part of the global supply chain for the world’s top brands and products, we have been complying and exceeding these requirements over the past decades. Our decision to support the TCFD initiatives is a natural path for us to take and support.”
In the field of real estate, Ayala Land President and CEO Bernard Vincent O. Dy¸ stresses the benefit of being a TCFD supporter and says, “As a real estate company operating in the Philippines, Ayala Land has long recognized the importance of responding to climate change.
We welcome the Task Force for Climate Related Financial Disclosures (TCFD) recommendations as these provide a clear framework on disclosing material climate-related information. By adopting TCFD recommendations, the company will have a more thorough understanding of climate risks and opportunities. We can then continue to align our future investment strategies so that we can effectively transition to a lower-carbon economy.”
Speaking more about efforts toward a low-carbon economy, John Eric Francia, President and CEO of AC Energy, reaffirms their commitment by saying, “AC Energy is transitioning to a low carbon portfolio. The company will be divesting all its coal assets by 2030 and scaling up renewable investments, which is expected to exceed 5GW by 2025. In line with this commitment to sustainable investing, the company is adopting the TCFD framework along with the Ayala group.”
Ayala Corporation’s President and CEO, Fernando Zobel de Ayala, takes this joint effort of the business units to support TCFD as a vital step in the group’s sustainability journey, “This decisive effort of the Ayala group to collectively support TCFD is in line with our aspiration to be a regional leader in the field. This is a common ground for our largely diversified group, one that speaks of our continued commitment to transparency and accountability. In light of the pandemic, we believe that our alignment with TCFD will help make us a more future-ready Ayala.”
Published on June 18, 2021