Leading the charge: 4 ways Ayala Land is innovating sustainable development

With increasing discussions around climate change, the importance of focusing on the environment and green initiatives is becoming increasingly clear. Amidst the growing discourse on and the urgent call for sustainability, one might wonder what a company can do to truly make a difference.

Ayala Land, Inc. (ALI) walks the talk by embedding sustainability at the core of its projects, setting new industry standards. As climate change and urbanization challenges become more pressing, the need for eco-conscious development has never been greater. Sustainability goes beyond mere buzzwords; it involves concrete actions and commitments to create a positive impact on the environment and society. Ayala Land’s approach is comprehensive, addressing environmental, social, and economic dimensions to build resilient, efficient, and thriving communities. Their carefully planned developments showcase how resilience can be achieved through thoughtful design and sustainable practices, ensuring long-term benefits for both people and the planet.

1. Sustainability at its core

Ayala Land’s commitment to sustainability is deeply ingrained in its operations and developments. This commitment is evident in four key pillars: site resilience, mobility and pedestrian-transit connectivity, resource efficiency, and local economic growth. By focusing on these pillars, Ayala Land ensures that its projects are not only environmentally friendly but also socially and economically beneficial.

Site Resilience: Designing with Nature in Mind

Estates like Nuvali in Laguna and Parklinks in Pasig and Quezon City feature extensive green areas that serve as recreational amenities and urban cooling solutions, supporting biodiversity. These green spaces not only provide a breath of fresh air and leisure for the community but also play a crucial role in maintaining ecological balance. Furthermore, innovative stormwater management systems are in place, such as underground detention tanks and bioswales in Arca South, Taguig, to capture and store rainwater. These systems are designed to mitigate flood risks, promote natural absorption, and enhance groundwater recharge, showcasing Ayala Land’s commitment to resilient infrastructure.

Mobility and Connectivity: Promoting Efficient Urban Transit

Ayala Land has made significant strides in enhancing urban transit efficiency through projects like One Ayala in Makati’s Ayala Center, which connects residents to major transit lines. This reduces reliance on private vehicles, thereby lowering traffic congestion and greenhouse gas emissions. Additionally, projects like Nuvali include dedicated bike paths and walkways, encouraging healthier, sustainable transportation modes. This not only reduces the carbon footprint but also fosters community interaction and promotes an active lifestyle.

Resource Efficiency:

Ayala Land is dedicated to promoting the mindful use of materials, energy, and water in its developments. By focusing on reducing consumption and managing resources responsibly, the company prioritizes sustainability. This includes efforts to maximize waste diversion and minimize their carbon footprint.

Centers for Local Economic Growth: Driving Regional Prosperity

Ayala Land strategically places commercial centers, business hubs, and retail spaces within its estates, generating employment and attracting investments. By aligning with local governments and stakeholders, Ayala Land’s developments contribute to regional economic plans, driving significant economic activity and prosperity in areas like Cebu and Davao. These developments are not just residential spaces but catalysts for local economic growth, fostering dynamic economic zones.

Ayala Land’s commitment to sustainability is comprehensive, addressing environmental, social, and economic dimensions to create resilient, efficient, and thriving communities.

2. Sustainability by action

Net Zero by 2050

Ayala Land is on a mission to achieve net-zero carbon emissions by 2050. This journey involves creating eco-efficient designs and forming groundbreaking partnerships. One of their significant achievements is having the largest portfolio of EDGE-Zero Carbon certified office buildings in the Philippines, with eight offices certified, emphasizing their dedication to energy efficiency and reducing materials. Ayala Land pledged 1.5 million sqm. of leasable office space to be EDGE Zero Carbon certified in the next 2 years. Additionally, Ayala Land Hotels and Resorts Corp (AHRC) aims to achieve EDGE-Zero Carbon certification for its 2,826 hotel rooms by 2026, making a significant stride towards sustainable tourism in the country.

3. Sustainability by accountability

Ayala Land has successfully raised P20.5 billion through its pioneering Sustainability-Linked Financing (SLF) Program. This includes a P6 billion Sustainability-Linked Bond (SL-Bond) and a P14.5 billion Sustainability-Linked Loan (SL-Loan) from the International Finance Corporation (IFC), marking a first for the Philippine real estate sector. The SLF Program aligns Ayala Land’s financial commitments with its environmental targets, with interest rates linked to performance on key sustainability metrics.

Meean Dy, President and CEO of Ayala Land, highlighted the importance of this milestone, “This landmark investment drives our efforts in portfolio decarbonization, reinforcing our commitment to a greener property sector in the Philippines.”

4. Sustainability as a continuous journey

In 2007, Ayala Land took its first step in its sustainability journey by formalizing sustainability as a guiding principle in land use and development. By 2009, they launched Nuvali, their first sustainable estate, and formed a sustainability committee to oversee their program. In 2017, Ayala Land announced its carbon neutrality program, aiming to neutralize emissions from commercial properties. Ayala Land CFO, Augusto D. Bengzon, reflected on their progress, “Our sustainable practices have not only aligned us with the values of an evolving consumer base demanding more livable spaces but have also encouraged a culture of innovation within our organization…Encouraging eco-friendly solutions has led to the advancement of pioneering concepts and developments in our country. Among these are the One Ayala Integrated Transport Hub, the transit connectivity and pedestrianization of the Makati central business district, Bonifacio Global City, and our other estate developments.”

Ayala Land’s journey is a testament to its unwavering commitment to building a more sustainable and inclusive future. As the country echoes the urgent call for a greener tomorrow, Ayala Land’s vision and leadership serve as guiding lights, illuminating the path toward a sustainable future for generations to come. Through its innovative practices and bold initiatives, Ayala Land is not only leading the charge in sustainable development but also inspiring others to follow in its footsteps.

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