Ayala Land, Inc. (ALI), and the International Finance Corporation (IFC) signed a Memorandum of Understanding (MOU) today, signifying a partnership that would help accelerate the transition of the Philippine property sector toward net zero.
Under this historic agreement, Ayala Land and AREIT aim to achieve by 2025 EDGE Zero Carbon certification across its portfolio of 1.5 million square meters, with advisory support from IFC. This ambitious undertaking aims to establish the Philippines’ largest EDGE Zero Carbon portfolio, comprising 900,000 square meters to be certified by 2024, and an additional 600,000 square meters by 2025.
“For Ayala Land and AREIT, this highest level of EDGE is what we are aiming to secure in line with our goal to become the largest EDGE Champion in the Philippines,” Carol T. Mills, president and CEO of AREIT and Head of Ayala Land Offices said. “We believe achieving zero carbon in our buildings will yield not only for ourselves but also for our valued office locators the most substantial, relevant and much needed contribution towards long-term sustainability and environmental responsibility,” Mills added.
The certification of these properties within the leasing portfolio signifies a profound commitment to optimizing energy and water utilization while significantly reducing embodied carbon within construction materials. Notably, 1.3 million sqm of ALI & AREIT’s portfolio already operate on 100% renewable energy sources, a commitment that will endure for all forthcoming developments.
“The Ayala Group is a longtime partner on sustainability initiatives, and I look forward to welcoming Ayala Land and AREIT as EDGE Champions,” said Jean-Marc Arbogast, IFC Country Manager for the Philippines. “In many ways, it’s much harder to green existing infrastructure. Ayala Land’s pledge to certify its portfolio as zero carbon underscores their deep commitment to net zero and whole-portfolio decarbonization.”
IFC, a member of the World Bank, is the largest global development institution focused on the private sector in emerging markets. An innovation of IFC, EDGE is a green building certification that has gained traction among property owners and developers seeking to reduce the operational costs and greenhouse gas emissions of their building portfolios without incurring significant additional costs. EDGE is complemented by a free software that encourages green building measures that can be applied during the design, construction, or retrofitting of a building, to reduce the use of energy, water, and materials by at least 20% compared to base case, which is the EDGE standard.
EDGE provides a pathway to net zero through EDGE Zero Carbon, the highest level. To reach EDGE Zero Carbon, a building must demonstrate a 40% improvement in energy efficiency compared to the base case and it must incorporate renewable energy sources, carbon offsets, or a combination of both, for its total energy demand.
Since its inception in 1988, Ayala Land has been at the forefront of sustainability and innovation, as it strives to realize its vision and commitment to a sustainable future. This latest initiative stands as a testament to ALI’s enduring dedication.
“Ayala Land is prepared to go above and beyond the EDGE Zero Carbon framework, starting with Embodied Carbon – we are committing to reduce embodied carbon in our buildings beyond what is required through efficient design and use of construction materials,” Meean Dy, EVP, COO and incoming President and CEO of ALI said. “We will continue to explore partnerships with suppliers of sustainable materials with less carbon footprint and further offset our embodied carbon through our carbon forests. We are also taking initiative to divert generated waste away from landfills. We make sure that a significant volume of our generated waste is being sent to recyclers, ecohubs and composts.”
Sustainable design, construction and property management are integrated in Ayala Land’s extensive portfolio of premium office real estate developments. These structures are designed to not only cater to the present-day needs of top businesses but also to prioritize sustainability throughout their construction and design. Additionally, they offer convenient commuting options for employees and are strategically located in areas that contribute to the country’s economic growth.
In a significant pledge made in 2017, ALI committed to neutralizing scope 1 and 2 carbon emissions across its malls, offices, hotels, and resorts. This pledge closely aligns with the Paris Agreement’s imperative to combat climate change and restrict global warming to a maximum of 1.5 degrees Celsius by 2030.
“ALI has always operated with an unwavering dedication to sustainability. This partnership with IFC is just one of the many steps that we are taking towards our sustainability goals. Together with our partners, we will continue to innovate and guide the industry, continuing to be a leader in sustainable development,” Dy added.
Ayala Land and IFC signed a MOU to achieve by 2025 EDGE Zero Carbon certification across the developer’s office leasing portfolio. At the historic signing were L-R: Angelo Tan, IFC Country Lead for the Philippines and the Pacific Islands; Jean-Marc Arbogast, IFC Country Manager for the Philippines; Diep Nguyen-van Houtte, IFC Climate Business Department Senior Manager; Meean Dy, EVP, COO and incoming President of Ayala Land, Inc.; Carol Torres-Mills, President & CEO of AREIT Inc. and Head of AyalaLand Offices; Francis Roxas, COO of AyalaLand Offices.