Let`s build sustainable communities

Transcription

Let’s build
sustainable
communities
2014 Sustainability Report
1
Makati Central Business District
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Let’s build sustainable communities
Our Company
Ayala Land is the leading, most diversified property developer in
the Philippines today, with a proven track record in developing
large-scale, integrated, mixed-use communities that become
thriving economic centers in their respective regions. To achieve this,
we pioneer standards and practices that reflect an understanding
and respect for the importance of sustainability.
Following the success of the Makati Central Business District
(Makati CBD), Ayala Alabang, Cebu Park District, Bonifacio
Global City (BGC), and Nuvali, we continue to increase our
footprint in building estates that benefit more people nationwide.
With over 8,000 hectares of land bank, we are now present in
45 growth centers across the country, offering a balanced and
complementary mix of residential spaces, shopping centers, offices,
hotels and resorts, convenience stores, and healthcare facilities.
Our Vision and Mission
Our vision is to enhance our standing and reputation as the
Philippines’ leading real estate developer, and to be a strong partner
in nation-building. By developing integrated, masterplanned, and
sustainable mixed-use communities in vibrant growth centers all
over the country, we strive to continually elevate the quality of life
for all of our customers.
We shall be a responsible corporate citizen and act with integrity,
foresight, and prudence.
We shall empower our employees to deliver products that exceed
our customers’ expectations and build long-term value for our
shareholders.
Our Core Values
At Ayala Land, we value integrity, long-term vision, empowering
leadership, and commitment to national development.
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Eco-efficiency
Creative use of passive design and
technology to minimize energy,
water, and waste footprint
Pedestrian-Transit
Connectivity
Facilities that promote
walkability, ease street congestion,
and improve the pedestrian
experience
Local Employment
Developments that provide
opportunities for job creation
Site Resilience
Open spaces, parks, and
resilient landscapes provide
respite and refuge
Greenbelt Mall Makati
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About this
Sustainability Report
This is Ayala Land’s eighth sustainability report. This report
complements our 2014 Annual Report where our financial
results and corporate governance practices are discussed. This
year, we adapt a new approach where we report our sustainability
performance in terms of our Four Focus Areas: Site Resilience,
Pedestrian-Transit Connectivity, Eco-efficiency, and Local
Economic Development. This approach enables us to provide
a comprehensive discussion on how we embed sustainability
in the way we conduct the business.
We also recognize that an empowered organization is
critical to the growth and sustainability of the Company.
We include a section on our efforts in enabling our people
to integrate sustainable practices in their line of work.
This report covers the economic, environmental, and
social performance and impact of Ayala Land and its
wholly owned subsidiaries. The specific boundary and
business units for which certain performance indicators are most
material and applicable is specified in the GRI Content Index.
This covers performance data from our operations in the
Philippines from January 1, 2014 to December 31, 2014.
For comparison, data from previous years are included where
available. (G4-18)
This report was prepared in accordance with the Core GRI
G4 guidelines, and was externally assured by DNV-GL using
the DNV-GL Report Verification Protocol (VeriSustain)
covering economic, environmental, governance, and social
indicators. (G4-33)
This report is available online for download at www.ayalaland.com.ph/sustainability.
Contents
6
President’s Message
10
Sustainability Framework
16
Site Resilience
22
Pedestrian-Transit Connectivity
28
Eco-efficiency
38
Local Economic Development
47
Notes, Appendix, and
GRI Content Index
5
President’s Message
G4-1, G4-2
It is my pleasure to introduce an enhanced reporting
approach designed for better communication of
Ayala Land’s sustainability performance to our diverse
stakeholders.
As the country’s pioneer developer of business districts
and catalysts for enduring economic growth, we have
long recognized that continued financial success is
supported by our healthy adherence to the precautionary
principle (principles of responsible corporate citizenship,
prudence, and due diligence). Our dedication to
improvements for society and the enhancement of built
and natural environments finds expression in the sustainable
communities we develop. For these reasons, sustainability
has and always will be a significant part of Ayala Land’s
identity, values, and operating principles.
In 2014, I enjoined our units to focus on four areas that
would make the most difference for the Philippine
economy, society, and environment, as well as represent
our brand’s continued commitment to nation-building. It
is our fundamental belief that these four areas—site resilience,
pedestrian and transit connectivity, eco-efficiency, and local
economic development—embody the characteristics of
sustainable communities.
To determine these four focus areas, we reviewed our
risks and opportunities, as well as our impacts on real
estate development. We gathered stakeholder insights and
undertook iterative discussions with our sustainability
committee and company veterans in our project
development process.
By embedding these sustainability features into communities
that we develop, we create long-term value, and provide
Filipinos all over the country with distinctive spaces that
minimize their impact on the environment, address
vulnerabilities to climate change, promote healthy
lifestyles, and promote economic growth in their host
localities.
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Through our masterplanning exercises, we are able to
give due respect to the balance between natural and built
environment. We not only create value for the long term,
we also provide spaces for refuge, water absorption, and
healthy social interaction. More than 50,000 recorded
native trees populate the green spaces of our managed
properties, providing much needed respite to thousands of
urban dwellers who use our gardens and landscaped areas.
I am truly grateful for the continuing recognition of
Ayala Land’s efforts in sustainability, and for the
foundation laid by my predecessor Tony Aquino, who
received for us the Green Luminary Award from Channel
NewsAsia Awards in the early part of 2014. This award
recognized Ayala Land’s attention to sustainability in each
step of our project development cycle, inspiring us to work
for consistency throughout our units.
We have also started to promote a culture of walking in our
various developments, starting with our mature estates,
the Makati Central Business District and Bonifacio Global
City. We look forward to raising the bar on pedestrian and
transit connectivity in our future estates.
We recognize that measurement, tracking, and refining of our sustainability metrics continue to be our challenge.
I am, however, confident that our empowered organization
is composed of men and women who possess values and
competencies that will uphold sustainability for years to come.
Our design, planning, and property management teams
continue to develop and implement ways to use energy,
water, and materials efficiently, while lowering our carbon
dioxide emissions per square meter.
Finally, we thank all our stakeholders for continuing to be with
us all the way in our sustainability journey. We appreciate
their feedback and willingness to continue to dialogue with
us, for we recognize that leadership in sustainability
requires that we share a common vision with the
communities we operate in.
We estimate that our P109 billion worth of construction
projects has generated additional employment for
286,000 people. We look forward to fostering increased
productivity in different locations, creating more jobs in the
construction, retail, tourism, and health sectors through
our various estates.
In the short term, we will continue to refine indicators
that are appropriate for the Philippine property
development situation. In the medium and long term,
we look forward to continuing to work with scientists,
the academe, and other experts to add to the increasing
knowledge base for sustainable development in the
Philippines. As we learn and benchmark with global best
practices and covenants, we also work toward responding
to unique conditions in our geographic location.
BERNARD VINCENT O. DY
President and CEO
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Large-scale
Sustainable Estates
Each Ayala Land estate has the attributes of our Four Focus Areas that
make it a sustainable community. By embedding these features, we create
long-term value for our stakeholders, provide distinctive developments that
benefit more people, and minimize impact on the environment.
P93.62M
worth of savings due
to energy conservation
initiatives
Eco-efficiency
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318
hectares of open spaces
in our mature estates
Site Resilience
Around
210,000
people walk along
Ayala Avenue’s
pedestrian facilities daily
P1.6B
Pedestrian-Transit
Connectivity
spent on construction
manpower and related costs
Local Economic
Development
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Building
the Foundations
of Sustainability
Ayala Land’s commitment to the triple bottom line is best
expressed in its vision to “be a strong partner in nation-building,’’
and its mission of developing sustainable mixed-use communities
that seek to uplift the quality of life of communities in vibrant
growth centers all over the Philippines. By continuing our
founders’ tradition of creating long-term value from the
land we develop, we uphold a legacy of foresight and
prudence, resulting in developments that respect the
environment and community, while serving as catalyst of
economic growth.
Ayala Avenue, 1960s
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Ayala Land began its sustainability program and reporting in
2007 by identifying targets, and initiating programs, projects,
and activities under five pillars, namely Environmental
Stewardship and Impact Reduction, Community Stewardship
and Social Development, Personnel Development, Health and
Safety, and Market Shaping and Accountability. These pillars
embodied the Company’s comprehensive contributions to the
Ayala Group’s call for responses to a group-wide Sustainable
Development Policy.
Nuvali, Laguna
It was during this time that the Ayala Group of Companies
consolidated its position and vision of sustainable development
not only for its member companies, but also for Philippine
society. Ayala Land heeded this call to contribute to the
long-term and enduring success of the nation through its
own comprehensive and embedded sustainability program.
Reporting initiatives were guided by then Presidents and
CEOs Jaime I. Ayala (2007), and later Antonino T. Aquino, who
chaired the Ayala Land Sustainability Committee from 2008 to
2014. Projects, programs, and activities under each pillar
were championed by corresponding technical working
groups and support units.
Gearing for growth and efficiency in a time of climate
change and rapid development, Ayala Land’s environmental
stewardship initiatives focused on solutions in the areas of
eco-efficiency and green design. A culture of “malasakit”1
resulted in programs that considered the livelihood needs
of local communities in the vicinity of project areas.
Understanding that employees are the backbone of
sustainable business, activities were geared toward
increasing staff awareness of the triple bottom line
and their role in it. The Company’s construction and
property management arms focused on firming up their
health and safety programs by undergoing requisite
certifications.
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Alviera, Pampanga
Finally, recognizing that a sustainable society is only
possible with the cooperation of various stakeholders,
including customers, Ayala Land embarked on marketing,
communications, and sustainability reporting to share
sustainable living concepts and communicate its progress
on targets under the market shaping and accountability
pillars.
Vertis North, Quezon City
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In 2009, Ayala Land mobilized its 5-10-15 strategy2, which
resulted in unprecedented successes as well as new mindsets,
practices, and new ventures for the Company. Nuvali, the
country’s first large-scale mixed-use estate built around the
theme of sustainability, was also fully activated in this period. Its
popularity among buyers and non-buyers alike indicated that
Filipinos were ready to embrace healthier and sustainable
lifestyles. New subsidiaries such as PhilEnergy and
DirectPower were established to undertake projects to
improve energy efficiencies in estates and commercial
centers. Ayala Land’s entry into sustainable resort
development in El Nido, Palawan signified the Company’s
recognition of the country’s destination potentials and
commitment to responsible tourism.
Circuit Makati
New residential subsidiaries Amaia and BellaVita also
emerged from this period of growth, using Ayala Land’s
expertise and track record in producing quality affordable
and socialized housing for broader markets.
Ayala Land’s sustainability thrust also laid the
foundation for programs such as VoluntarALI3, Alay sa
Komunidad4, and continuing career development
programs such as Professionals in Development and
various executive training activities. An empowered
organization geared for sustainable growth emerged from
these efforts. Various support unit initiatives such as the
HR network, Business Integrity Program and Investor
Relations’ active compliance with the ASEAN Governance
Scorecard were also undertaken in this period.
Today, under the leadership of President and CEO
Bernard Vincent O. Dy, Ayala Land reaffirms its dedication
to sustainability by building on this foundation, and further
embedding sustainability into the business by focusing on
four areas that best respond to the Philippine sustainability
context.
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Defining Material Aspects
From 5 Pillars
to Four Focus Areas
G4-12, G4-14, G4-18 to G4-20, G4-25 to G4-27
Identification and Prioritization
As Ayala Land continued to report using the Global
Reporting Initiative (GRI) framework, we also began
to see the recurrence of a number of sustainability
concerns outside the prescribed indicators. The GRI
G4 guidelines provided us with an opportunity to
revisit and refine our sets of indicators, through the
lens of the Philippine development context.
We also saw that while the Philippine economic outlook
was optimistic, the company saw four major areas that
were sources of both opportunity and risk. These are (a)
the Philippines’ vulnerability to climate change and
disasters, (b) growing urban traffic congestion,
(c) continuing loss of natural resources, and (d) uneven
socio-economic development. These four areas of
concern provided the filters for which indicators to
prioritize.
Iterative consultation processes within the company,
tracking of recurring themes from media reports,
project and operating teams, as well as customer
surveys, resulted in the identification of four focus
areas or themes: Site Resilience, Pedestrian and Transit
Connectivity, Eco-efficiency, and Local Economic
Development. (Refer to p. 55 for Stakeholder
Sustainability Concerns)
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We provide our customers with sustainable communities by
embedding Ayala Land’s Four Sustainability Focus Areas in
the Project Development Process and Supply Chain.
The sustainability scorecard serves as the units’
checklist for the identification of opportunities,
features, and targets that they must incorporate into
their products. This initial scorecard includes the
aspects categorized under the four focus areas. (Refer to p. 54 for Sustainability Scoreboard Table)
On its first year of use, the scorecard served as a selfassessment tool and a challenge to the project teams
to strengthen their sustainability position. To support
implementation, Planning and Finance group conducted
roadshows and consultations with the respective units
through their finance officers and heads to rally their
full support. Sustainability learning events continue to
be undertaken to share best practices and solutions.
Validation
The Sustainability Team further consulted with the
various leads in charge of planning and design,
risk management, construction and property
management, as well as other units to identify risks
and opportunities under each of the aspects. An
initial assessment of company strengths resulted in
the identification of four areas where Ayala Land can
positively contribute to societal sustainability and meet business goals.
The Company’s Sustainability program is overseen by
the board level Sustainability Committee, composed
of two external directors and the CEO/President. The
Sustainability Team shepherds initiatives that support
implementation of the four focus areas. These include,
but are not limited to, providing technical assistance to
business and support units, research and analysis, and
learning events.
With the roll out of the scorecard, however,
sustainability becomes a responsibility of each unit
and each employee. The sustainability KR As provide
each team member with guidance on their roles until
sustainability becomes “second nature.”
How We Implement
Ayala Land recognizes that the key to the successful
implementation of the goals of the focus areas is an
empowered organization. In 2014, the Planning and
Finance Group worked closely to craft and roll out the
Focus Areas scorecard together with business units.
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The wetland in Nuvali—an expression of Ayala Land’s commitment
to site resilience and one of its contributions to human and environmental well-being.
16
z
Site Resilience
EC7, EC8, EN12
Globally, the Philippines ranks third among the countries
that are most vulnerable to climate change. While
Ayala Land recognizes and fulfills its responsibility to
continuously manage and minimize its greenhouse gas
emissions to slow down climate change, it also has to
address the fact that Philippine property development
is continuously challenged by risks brought about by
the nature of its geographic location. As resilience is
best seen as the ability to weather these challenging
times, Ayala Land continuously develops projects that
are able to reduce risks and also thrive for generations.
To reduce risks and increase resilience, each Ayala Land
development undergoes careful study that focuses on
(a) site selection, masterplanning, and design through
technical due diligence and hazards-screening, (b) employing soil and stormwater sensitive designs
and systems, and (c) using indigenous plants that are
appropriate for local conditions.
All these features come together in Ayala Land’s
tradition of incorporating open and green areas for
refuge, rainwater absorption, and social interaction
into its estates and various products.
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Ayala Triangle Gardens
Site Resilience Through Due Diligence
The art and science of disaster risk reduction, as
well as the balance between natural landscapes,
built spaces, and infrastructure, is a challenge that
Ayala Land takes very seriously. The task begins with
the careful consideration of a site’s natural features
(including slope and native vegetation), development
potentials, limitations, and business intentions.
Planning in Ayala Land involves an iterative process
that incorporates the inputs of various disciplines.
This process results in products that are valued by our
stakeholders.
Since 2011, at least 111 technical due diligence
studies have been undertaken in-house for Ayala
Land projects. As necessitated by specific project
requirements, additional detailed and focused
investigations on soils and waterways are also
conducted. These scientific studies enable planners
and designers to create amenity out of stormwater
management solutions, and/or undertake rectification
measures as additional precautions.
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As part of due diligence, Ayala Land’s survey protocols
continue to be refined to correctly identify existing
stands of native trees that can be incorporated into
projects. To further enhance climate resilience and
contribute to the Philippines’ biodiversity stock, we
will continue to plant more native trees and protect
them. To date, 62 properties managed by
Ayala Property Management Corporation (APMC)
have reported a total of 16,036 trees5 planted and
retained, of which 45 percent are native. Likewise, the Nuvali estate has a total of 51,986 trees since 2012.
44,540 of these trees are native, representing
76 percent of the total surviving trees.
Green Spaces as Refuge Areas
For decades, Ayala Land has provided open spaces to
allow for social activity and to enhance the overall
experience in its properties. Beyond fulfilling aesthetic goals, these natural landscapes provide
refuge, enable water absorption into the ground,
and promote biodiversity that contributes to climate
resilience. Where feasible, land disturbance is kept
to what is necessary for efficient construction and
maintenance of urban infrastructure. Planning and
development methods are continuously enhanced to
integrate an area’s natural terrain and native vegetation
into estate plans.
Ayala Land pioneered the balancing of natural landscapes
and developed spaces, as demonstrated by its established
estates—Makati CBD, Nuvali, and Bonifacio Global City
(BGC). The MCBD, through the Makati Commercial
Estate Association (MACEA), is maintaining 25,778
square meters of parks with its Legazpi, Velazquez/
Salcedo, and Washington Sycip Parks 6. By integrating
organized green spaces into its property developments
at Ayala Center and Ayala Triangle Gardens, the
Company contributes approximately 46,736 square
meters7 of open, landscaped, and permeable areas. This
adds up to about 72,514 square meters of open space
with greenery in the 163-hectare managed business
district.
Greenbelt Park
BGC has also been able to apportion about 145,489
square meters of open greenery to the 142-hectare
development. An additional 373,251 square meters is
dedicated to road right of way, including sidewalks
and medians. To this, Ayala Land contributes the
pedestrian-dedicated Bonifacio High Street (BHS)
measuring 20,442 square meters or about two hectares.
Dita in BGC
19
Nuvali Lake
Similarly, Nuvali’s masterplan allocated 297 hectares
of combined landscaped and natural space, or about
16 percent of its total of 1,860 hectares. Another
148.8 hectares or eight percent is dedicated for road
pavement in the estate. On top of this, each residential
locator is expected to add additional organized green
spaces within their respective developments.
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Case Feature: Nuvali’s Constructed Wetland
Most regular visitors to Nuvali’s Solenad and
Evoliving zones are familiar with its man-made lake,
a four-hectare body of water that runs through its
retail and business districts. The lake provides people
a perfect backdrop for dining and shopping, or simply
for relaxation and rejuvenation after a day or week of
work. One can choose to go on a boat ride or feed the
koi that inhabit its clean waters.
Behind the Evoliving Center is the equally important
South Evozone Wetland. Designed to take advantage
of a naturally low-lying area, the constructed wetland
is part of the stormwater management system of the
Nuvali estate. The system was created as a biological
(natural) filter that removes potential pollutants and
sediments from stormwater before it is slowly absorbed
into the ground or released to the lake.
A series of greenways and a main pond, altogether
measuring around 2.32 hectares, is planted with
predominantly indigenous trees and vegetation specified
for their ability to filter contaminants and provide a
habitat for wildlife that is critical to ecosystem balance.
Wetland filters water into the lake.
The water-loving Putat (Barringtonia asiatica) and the
soil-conserving Matang-araw (Melicope triphylla) are
expected to dominate the landscape. The bamboo-lined
greenways, which also function as pedestrian routes
and bikeways, slowly convey water to a main pond
designed to hold 28,000 cubic meters of stormwater.
The wetland system can also delay stormwater by four
hours before it drains to the outfall.
The wetland in Nuvali—an expression of Ayala Land’s commitment to
site resilience and one
of its contributions to human and environmental well-being.
Constructed wetland in Nuvali
21
Elevated walkways facilitate smoother pedestrian flow and movement
around Ayala Center and the Makati Central Business District.
22
Pedestrian-Transit
Connectivity
EC7
Filipinos all over the archipelago need transport
infrastructure and public transit systems in order to
access economic opportunities that will uplift their
standard of living. As the country’s economic outlook
remains positive and urbanization contributes to growth,
the working Filipino continues to confront mobility
issues on an everyday basis. A 2014 study by the Japan
International Cooperation Agency (JICA) estimated
that the country loses P2.4 billion a day due to lost
work hours, lost business opportunities, and delays due
to traffic congestion in Metro Manila8. While other parts of
the country have yet to experience the same problems, Ayala
Land recognizes that there are opportunities to prevent the
same issues by providing pedestrian-friendly and transportoriented developments. The Company’s pioneering work in
developing business districts and mixed-use communities
demonstrated that for pedestrian and public transit
facilities to work, collaboration with partners and
stakeholders is important.
Ayala Land contributes to connectivity by (a) applying
lessons learned from its mature developments to plan for
better pedestrian-friendly facilities in newer projects, and
(b) ensuring that its developments are better served by
public transport. As our experience in Makati shows, our
focus on improving the environment for pedestrians
and commuters can provide significant benefits. Our
newer projects, such as BGC are already applying and
reaping the benefits of the lessons we have learned from
the Makati Central Business District (MCBD).
23
Over the next two decades, an extensive and
interconnected network of pedestrian underpasses,
elevated walkways, covered sidewalks, public transport
terminals, rebuilt sidewalks, better landscaping, and
traffic management measures were implemented
which transformed the MCBD from a traffic- and
road-oriented district to a haven for pedestrians and
commuters. An estimated daytime population of about
a million people benefit from this extensive pedestrian
facility network that starts from the Ayala MRT3
station along EDSA up to the Ayala-Buendia area with
branches at Salcedo and Legazpi Village. This network
provides a safe, comfortable, and weather-protected
walk for pedestrians and accessible public transport for
commuters, which created a viable alternative to using
a private car in the MCBD.
Greenbelt’s elevated walkway
MCBD: A Haven for Pedestrians
In the early nineties, the planners of Ayala Land and
the Makati Commercial Estate Association (MACEA)
embarked on a unique masterplanning effort to
improve the walking experience in the 163-hectare
MCBD. A wave of economic development and
construction in the Philippines’ premier business
district brought not only progress, but also traffic
congestion9. Approximately 400,000 people worked
in the MCBD in 199510. Many of them were
commuters who had to cross busy intersections and
walk along obstacle-filled sidewalks. MACEA, with
the technical assistance of Ayala Land and local and
foreign planning consultants, laid out a long-term
vision to be implemented over the next several years
to dramatically change and improve the experience of
pedestrians and commuters in the MCBD.
24
This pedestrian facility network increased the average
walking distance of pedestrians from 400 to 700
meters and enables people to walk all the way from
Ayala Center to Rufino Street in about 15 minutes
without ever having to cross through traffic. From
40,000 pedestrians crossing the intersections along
Ayala Avenue in the MCBD in 1995, studies in 2011
and 201311 showed that more than 210,000 people use
the pedestrian facility network. The elevated walkway
to Ayala Center alone serves 44,000 people a day.
Prioritizing the Pedestrian
Ayala Land continues to transform the pedestrian
experience by applying lessons learned from the
MCBD. BGC, a partnership between Ayala Land,
Evergreen Holdings, and the Bases Conversion
Development Authority (BCDA) is one development
that has benefited.
In an unprecedented move, Ayala Land designed a
1.2-kilometer strip called Bonifacio High Street
(BHS) at the BGC estate for pedestrians only.
Instead of a road, BHS was intended to become a new
way of integrating retail, office, and residential
uses with each other. BHS has since become the
defining and most well-known feature of BGC, and
efforts continue to further improve BGC’s pedestrian
environment through traffic improvement measures
such as pedestrian traffic signals, speed limits, speed
tables, and greenways, among others.
The Bonifacio Transport Corporation, a wholly owned
subsidiary of the Fort Bonifacio Development Corporation
(FBDC), operated 37 buses serving a reported count of
around 32,800 riders by the end of 2014. In a similar
manner, Ayala Land Offices ensure that the 100,000 fulltime employees of their tenants in 20 locations around
the Philippines have access to public transport including
bike racks in all of its establishments to support a growing
demand from bike riders.
A tree-lined street at BGC
BGC terminal here (to be provided)
25
Case Feature: MACEA and Ayala Land,
Walking Toward a Better CBD
The pedestrian experience in the MCBD would not have
happened without the combined forces of MACEA and
Ayala Land. Having recognized the worsening traffic
congestion in 1992, and having anticipated further growth
in the area, urban planners and consultants of MACEA
and Ayala Land recommended that the best solution
was to improve the walking experience within the
CBD to lessen the dependency on cars for short trips.
To create an environment that encouraged walking was
a challenge, as the planners and consultants had to work
within the confines of an already built-up area. The
answer was to lessen pedestrian and vehicular traffic
with an extensive system of pedestrian underpasses,
elevated walkways, covered sidewalks, public transport
stops and terminals, and rebuilt sidewalks.
In 1995, the first of several pedestrian underpasses
and covered sidewalks was constructed when a
portion of an existing street (Legazpi) was closed to
traffic, paved and landscaped for exclusive pedestrian
use, and connected to a pedestrian underpass across
Ayala Avenue12 . It was an immediate success, providing
a safe and traffic-free crossing along Ayala Avenue to
Greenbelt, and continues to be used by about 23,000
people a day.
Legazpi Street Makati in 1994
Part of Legazpi Street Makati today—a road dedicated to pedestrians
To date, about P749 million has been spent on
pedestrian facility projects in the MCBD, with P679
million contributed by MACEA, P51 million by
Ayala Land, and P19 million by PLDT and Kuok. These
resources have transformed the walking habits of visitors
and residents of the Makati CBD, creating an exclusive
pedestrian network free of traffic.
26
An art-filled Makati underpass
An additional investment of P117 million has been
provided by MACEA for the extension of the elevated
walkway along Dela Rosa from Rufino up to the
intersection of Ayala Avenue and Gil Puyat which will
provide pedestrians a direct weather-protected walk to
Gateway and the extensive new developments that will
be happening in this area.
Transport terminal at Nuvali
27
At Ayala Land, eco-efficiency initiatives are driven by an astute team
of construction and property management experts.
28
Eco-efficiency
Materials such as steel, cement, energy, and water make
up the bulk of resources used in Ayala Land’s project
development process. It is estimated that operating
commercial buildings account for approximately 40
percent of global energy use, but also offer the greatest
opportunity for energy reduction and global greenhouse
gas emissions13. Waste is produced throughout a property’s
life-cycle, i.e. during land development, construction,
demolition, and operations.
Ayala Land’s eco-efficiency initiatives for the past seven
years have been focused primarily on supply chain and
process improvements by our two subsidiaries, Makati
Development Corporation (MDC) and Ayala Property
Management Corporation (APMC). These two support
units have been monitoring, managing, and undertaking
projects to improve performance in areas with the most
significant impacts, and where we could make the most
difference. These are in (a) materials such as steel and
cement, (b) energy consumption in investment properties,
(c) greenhouse gas emissions, (d) water consumption in
investment properties, and (e) residual waste management.
Our efforts in these aspects resulted in benefits for the
environment as well as the Company’s bottom line.
We remain conscious of our resource consumption as
we continue to maintain the quality and service that
Ayala Land is known for, and set new heights for the
Company to grow14.
29
Wise Use of Construction Materials
EN2
In response to Ayala Land’s call for wise resource use,
MDC, through the Green Procurement initiatives of
Ayala Land’s Supply Chain Management Division
(SCMD), began to use steel containing 88.6 percent
post-consumer recycled content in 2010. In addition,
MDC was able to recycle 1,955 tons of rebars and metal
in our construction projects in 2014. We continue to
monitor consumption of reinforced bars, steel, and
cement. Our cement consumption grew by 21 percent
from last year, while our reinforced bars and steel
consumption grew only by 0.2 percent from 2013 to
2014. We look forward to more insights as construction
projects approach completion.
1,955 tons of recycled reinforced steel bars
and metal can be used to build 20 four-story
affordable housing projects15
2014 Materials Consumption
EN1
Cement (tons)
Another result of Green Procurement directives in the
supply chain was the specification of cement containing
30 percent fly-ash replacement in 2012. This initiative
resulted in beneficial partnerships with cement companies
that supported green practices. Pre-fabrication of components
and establishment of cement batching plants in strategic
locations enabled MDC to reduce wastage, and minimize
travel time and fuel consumption.
191,558
231,208
Cement (thousand bags)
4,789
5,780
Rebars/Steel (tons)
96,648
96,857
2013
2014
30
Energy
EN6
Ayala Land’s property management unit, APMC,
continues to realize better energy efficiencies as a result of
investments in technology and implementation of best
practices that it started as far back as 2007. Through
the efforts of property managers, we have slowed down the
growth of our electricity consumption from 24 percent in
the period 2012 to 2013, to only six percent in the period
2013 to 2014. As a result, we avoided the consumption
of 10,721 mWh of electricity in 2014, equivalent to
P93.62 million worth of savings. District-cooling systems
are also used in projects with the right mix of uses to
reduce energy demand.
From 2012 to 2014 APMC was able to save 15,321 mWh
of electricity, which is equivalent to providing electricity
to 13,600 households for one hour17.
Our energy intensity, measured as kWh consumption
per square meter of space, decreased by 36 percent
since 2011 despite a growth of 33 percent in
absolute energy consumption in the same period 16 .
This translates to an annual 13.8 percent reduction
in three years, well beyond the target of a three-percent
reduction in energy intensity annually for APMC’s
managed properties.
31
FUEL CONSUMPTION BY SOURCE
Stationary Sources
Fuel Consumption
(in Liters)
APMC- managed
Properties
Hotels
Resorts
EN3, EN4
Diesel
Mobile Source
LPG
Diesel
Gasoline
641,400.64
-
-
-
241,452.00
193,141.00
1,680.00
-
535,810.00
80,039.00
1,385,389.00
-
Diesel – Stationary and Mobile Services
Construction
4,133,808.28
ELECTRICITY CONSUMPTION IN APMC-MANAGED PROPERTIES
EN3, EN4
2012*
2013*
2014
Car Parks
4,484,575.35
4,661,861.35
4,970,658.48
Estate
2,906,091.93
3,036,501.55
3,324,264.71
Mall
176,197,890.74
234,543,976.88
248,862,825.57
Office – BPO
115,587,010.50
145,950,105.77
158,259,971.64
Office – Traditional
45,773,966.50
43,585,122.20
41,917,587.78
3,621,414.03
4,131,094.35
3,759,703.07
15,706,965.81
16,261,223.86
18,488,634.71
364,277,914.86
452,160,885.96
479,365,194.95
Residential – Horizontal
Residential – Vertical
Grand Total
Note: Restated to include Visayas-Mindanao Group malls and offices
ELECTRICITY CONSUMPTION IN NON-APMC-MANAGED PROPERTIES
2012
Electricity Consumption (kWh)
2013
2014
8,993,845.66
9,964,481.00
15,085,752.30
15,725,416.92
40,297,966.12
41,721,166.00
-
-
3,784,946.00
Infographic: From 2012-2014 APMC was able to save 15,321
Construction
mWh of electricity, which is equivalent to providing electricity to
13,600
households for one hour .
Hotels
Resorts
32
EN3, EN4
Reducing GHG Emissions Intensity
As Ayala Land recognizes that the pursuit of growth
will result in higher greenhouse gas (GHG) emissions,
we began to voluntarily track our Scope 1 and Scope 2
GHG emissions in 2008 to better understand causes
and manage at source. With increasing occupancy and
opening of new projects, our absolute Scope1 and Scope 2
emissions increased to 290,117 t-CO2e in 2014, or by
9.22 percent from 265,618 t-CO2e in 2013. Our average
Scope 2 GHG intensity (Emissions per Gross Leasable
Area or GLA) in our investment properties18 went down
by 8.7 percent from the previous year.
From 2010 to 2014, we were able to decrease our GHG
intensity from investment properties by 17.6 percent.
Average GHG intensity from our shopping centers and
offices went down by 24 and 12.5 percent, respectively,
from 2010. These decreases may be attributed to our
various energy-efficiency initiatives.
Investment Propeties – Scope 2 GHG Intensity
Malls GHG per GLA
Offices GHG per GLA
Average GHG per GLA
332
350
308
295
251
244
241
252
220
219
218
215
218
191
2010
2011
2012
2013
2014
267
300
250
200
273
150
100
50
Restated: differs from 2014 Annual Report table due
to inclusion of Iloilo BPO (G4-22)
Through the years, we have studied various approaches to
further reduce GHG emissions where practicable and
sustainable, considering the current limits of available
technologies. There is certainly more room for improvement, as
at the moment, our renewable energy consumption is at
.004 percent of our total. This comes from solar energy
posts and panels that we have installed in selected malls and
estates such as Nuvali, BGC, Trinoma, and Lio in El Nido19.
We also look forward to measuring potential emissions in
our residential developments in order to report and manage Scope 3 emissions.
33
Managing the Water Cycle
EN10
As a pioneer in real estate development, Ayala Land was
the first private sector player to construct large-scale
wastewater treatment plants in the Philippines. The Company
set up the Magallanes sewerage plant in Makati in the 1960s to
process wastewater generated from around 700 hectares of
residential and commercial developments in the Makati
CBD area 20. Estate developments such as Ayala Alabang,
Muntinlupa, and Cebu Business Park, also benefited from
the Company’s environmental responsibility and longrange thinking with their own sewerage treatment plants.
The plants in Magallanes and Alabang have subsequently
been taken over and expanded by water utility companies
in the early 2000s21, when the Philippine government
mobilized its water utilities privatization program.
Ayala Land’s sustainability efforts in water management
included the pilot operation of water recycling facilities
in properties such as UP Ayala Land TechnoHub and
Nuvali. We shall report on the results and impacts of
these water recycling facilities as soon as they are fully
operational.
Ayala Land complies with the national law (Philippine
Water Code) and local policies regulating water
extraction and utilization. Our developments utilize
water district suppliers such as Manila Water and
Maynilad if they operate in the project sites. For
properties outside of their coverage area, Ayala Land
coordinates with the local water district suppliers to
lessen and ultimately eliminate the use of deepwell or
groundwater.
34
To lessen the impact of our use of water, we have specific
guidelines on water efficiency and savings. Annually, we
have a target water metric per type of property that is
included in APMC’s Key Result Areas (KRA).
In APMC-managed properties, growth in water
consumption slowed to 19 percent in 2014 versus
29 percent in 2013, as a result of water management
initiatives in place since 2010. These include the
installation of low-water consumption fixtures and
occupant sensors for urinals, water closets, and faucets.
Water is also reused and recycled for landscaping and
toilet flushing at Nuvali and El Nido Resorts.
WATER CONSUMPTION IN APMC-MANAGED PROPERTIES
Water Consumption (m3)
EN8
2013*
2014
2,304,333.20
3,180,024.62
3,271,639.72
Office – Traditional
314,864.37
293,729.63
296,039.17
Office – BPO
822,188.54
1,091,181.97
1,311,901.27
Residential – Vertical
226,778.49
248,267.26
357,692.21
Residential – Horizontal
296,351.51
337,221.65
1,015,836.81
Car Park
38,654.39
30,117.17
31,536.67
Estate
217,603.24
214,197.03
201,337.55
4,220,773.74
5,434,739.34
6,485,983.39
Mall
Subtotal
2012*
*Restated to include Visayas-Mindanao malls and offices, and data correction (G4-22)
WATER CONSUMPTION IN NON-APMC-MANAGED PROPERTIES
Water Consumption (m3)
2012
EN8
2013
2014
Construction
411,734.22
630,000.00
1,547,771.51
Hotels
173,553.34
368,682.64
444,431.66
Resorts
87,510.10
35
Waste
Ayala Land began to monitor the solid waste from its
developments in the year 2000, by doing so, managed to
reduce its residual waste by 85 percent in 200722. This was
achieved by setting up Materials Recovery Facilities (MRF) to
recover materials that could be reused, recycled, or processed
into compost. As early adopters of the national Solid Waste
Management Act of 2000, Ayala Land was able to reap the
benefits early on.
Waste segregation continues to this date in APMC-managed
properties, and MRFs have long been regarded as standard in all
of Ayala Land’s designs and plans. APMC managed to keep
the ratio of waste that are diverted from landfills at an
average of 55 percent from the years 2009 to 2014. The rest
of the waste are either recycled, sold to pig farms, or made
into compost. This translates to 90,926 tons of waste
diverted from 2009 to 2014, which is equivalent to
filling 6,635 ten-wheeler dump trucks.23
El Nido Resorts, which has a central MRF where the
waste of three island resorts are processed, was able to
produce 14,059.59 kilograms or four percent of their
total waste into compost. This compost is then used in
the resort gardens and its organic farms in the El Nido
mainland.
Complying with a target of 50 percent reduction in
residual construction waste set in 2014, MDC was able
to avoid P225,093,341.6 million in hauling costs, as
they recycled 662,039 cubic meters of waste.
36
WASTE GENERATED BY TYPE AND SOURCE
2014 Waste
Generation
(In ‘000 kg, unless
stated otherwise)
Recyclable
EN23
FOOD
RESIDUAL
COMPOSTABLE
TOTAL
AMPC-managed
properties
4,477.22
7,850.26
16,191.48
5,541.11
34,060.07
Construction (in
‘000 cubic meters)
662.0424
-
1,310.91
-
1,869.25
-
-
-
-
1,014.84
29.33
265.90
73.13
-
368.36
48%
48%
Hotels
Resorts
Waste Generation
45%
43%
41%
44%
52%
55%
57%
59%
56%
52%
2009
2010
2011
2012
2013
Waste hauled to landfill (Residual Waste)
Waste diverted from landfill (Food, Recyclable, Compostable Waste)
37
2014
Serving as engines of growth, Ayala Land developments spark
new job opportunities and business activities that benefit the community.
38
Local Economic
Development
EC7, EC8
Together with partners and other stakeholders throughout
the country, Ayala Land and its subsidiaries serve as
catalysts and engines of growth for new business activities
and settings through its masterplanned mixed-use
communities.
As a provider of spaces for homes, business, leisure,
culture, and other urban functions, Ayala Land is able
to stimulate local economic activity at every step of its
project development cycle.
The various stages involved in a project development cycle
provide jobs for various expertise from land assessment,
design preparation to construction, and ultimately during
operation. Our investments in human capital and local
productivity enable our partner communities to develop
and grow with the Company.
Ayala Land’s expansion to other growth areas in the
country provides us with unique platforms for creative
and enduring property solutions, most appropriate
locations, and promote efficient and safe environments
of social activities (land uses).
For this focus area, we look into (a) the value we are
able to contribute through our developments all over
the Philippines, (b) numbers of direct (and indirect)
jobs created in the construction and operating phases
of the project development cycle, and (c) community
investments.
39
El Nido locals help boost tourism in the province.
Value Generated and Distributed
We continue to find ways to measure the economic impact
of Ayala Land and how our products might better serve
Filipinos. This can be through the value we distribute and the
employment that we directly and indirectly create. In 2014,
Ayala Land generated a total of P95.52 billion in value resulting
from its various activities in the Philippines. Around 82 percent
of this value was distributed to our various stakeholders, while
only 18 percent was retained by the Company. Ayala Land
has also invested more than P250 billion for projects all
over the country over the course of three years.
40
Ayala Land has spent P19.9 billion in value for its
manpower from 2011 to 2014. This includes spending for
its employees and construction, and for maintenance jobs
all over the country. As of 2014, Ayala Land has provided
jobs for about 20,00025 people for our operations and
construction activities. Our P109 billion worth of
construction projects is estimated to have generated
additional employment of 286,00026 all over the country.
2014 Economic Value Distributed and Retained
(in million pesos)
4,342
Capital Expenditures (in million pesos)
27
90,000
4.56% .03%
83,298
8,344
80,000
8.76%
71,293
70,000
11,299
11.87%
66,263
60,000
50,000
18.41%
17,524
56.37%
53,663
40,000
30,000
Payments to suppliers/ contractors
Economic value retained
Payments to providers of capital
Payments to governments
Payments to employees
Payments to communities
29,914
20,000
10,000
-
2011
41
2012
2013
2014
Contruction Manpower Expense per Region (in million pesos)
Central Luzon
CALABARZON
NCR
Western Visayas
MIMAROPA
Central Visayas
Negros Island
Northern Mindanao
Davao
2009
2010
2011
2012
2013
2014
NCR
226.96
349.85
328.29
461.35
1,060.71
1,248.80
CALABARZON
66.00
62.30
86.15
163.20
135.55
136.65
Central Visayas
11.04
14.78
28.48
85.10
115.20
117.96
Central Luzon
16.77
8.63
10.23
18.91
33.63
46.83
-
-
4.80
23.82
36.14
35.68
Davao
Negros Island
1.56
4.36
5.47
13.09
8.61
1.96
Northern Mindanao
-
-
-
0.29
4.22
20.26
Northern Visayas
-
-
-
-
4.46
9.15
MIMAROPA
-
-
-
3.22
5.49
1.07
322
440
463
769
1,404
1,618
TOTAL
42
Education drive initiated by Alviera and Ayala Business Club for Pampanga community.
Community Direct and Indirect
Investments
Not only do Ayala Land’s estates and commercial centers
provide quality spaces that the public can enjoy, they are
also able to assist non-profit organizations by providing
them opportunities to interact with their publics, raise
awareness, and support their sustainability.
P600 million in these initiatives. Ayala Land has also started
to invest in human capital required by our developments
through manpower development trainings for potential
construction, hotel, and property management personnel.
Community partners are also given importance in the
project development cycle. As good corporate citizens,
project teams collaborate with local government units
in providing much-needed assistance in education,
disaster rehabilitation, and community infrastructure.
From 2010 to 2014, Ayala Land has invested around
43
An Empowered
Organization
LA10
The year 2014 marked the completion of Ayala Land’s
5-10-15 plan and signalled the beginning of its new 202040 growth target, which seeks to achieve a net income of
P40 billion by the year 2020. This ambitious target
relies on various strategies that utilize the synergies
available across Ayala Land’s business units. As this
target means that the Company must grow at an annual
rate of 20 percent, this also means that project teams
must be ready to identify and seize opportunities, and
be accountable where the Company can make a
difference—in the development of sustainable
communities.
Ayala Land recognizes that the successful execution of
the 2020-40 plan relies on an empowered organization
committed to the mastery of sustainable development.
Leadership learning session
Sustainability in
Our KRAs
Sustainability learning session for marketing practitioners
44
A major milestone for 2014 was the development and roll out of
a scorecard to enable teams to track and report on Ayala Land’s
sustainability focus areas. Finance and sustainability teams
worked together to conduct roadshows and consultations
with various units through their finance officers and
heads. By incorporating the scorecard into performance
key result areas (KRAs), sustainability becomes a
responsibility of each unit and employee. The scorecard
is an evolving tool designed to provide project team
members with process and guidance on the four focus
areas until sustainability becomes “second nature.”
Professional and
Organizational
Development
Our highly responsive Human Resources unit
continued to include sustainability orientations for
new employees in its Professionals in Development
(PID) program in 2014. Learning sessions on the
four focus areas were also initiated during the said
period. Experts provided inputs on geo-hazards
and how native plant use contributes to resilience.
Best practice exchange sessions on pedestrian and
transit connectivity, eco-efficiency, and economic
development, among other topics are scheduled for
2015.
To further empower various team members, we
rolled out the Break Out initiative in 2014. Break
Out is a methodology to develop practical solutions
quickly, by people managing a process and affected
by a business problem. The process aims to simplify
existing processes, define clear lines of accountability,
and produce immediate short-term business results.
The sessions provided opportunities for the various
subsidiaries and the 2,992-strong workforce with
mastery over the complex processes in sustainable
property development.
Sustainability learning session for project managers
Inspiring Confidence
Through Communication
Upholding the results of the previous year’s
Organizational Climate Survey, Ayala Land unit heads
and managers sustained inclusive communication practices
in 2014, such as regular town halls, quarterly updates, and
active multidisciplinary approaches to problem solving.
These practices enabled various teams to effectively
harness creativity and diversity of their members while
maintaining the rigor of work procedures.
The improvement in overall Ayala Land engagement
scores was driven primarily by the following:
1) more inclusive decision-making process, 2)
implementation of work procedures that promote
high-quality results, 3) commensurate value given
to responsibilities and workload, and 4) increased
prospects for career advancement and promotions.
45
Leaders of Ayala Land’s Governance, Risk Management, and Compliance Summit
Case: Good Governance
Summit
Ayala Land held its first Governance, Risk Management,
and Compliance Summit on November 19, 2014. The
summit was an opportunity to affirm the gains of Ayala
Land’s enhanced Business Integrity Program which rolled
out Codes of Ethical Behavior, Ethical Procurement
Conduct, as well as the Vendor’s Code of Ethics in 2012.
Top management used the occasion to point out that
cultivating a culture of integrity at Ayala Land is
everybody’s responsibility, and everybody should be
Integrity Champions.
46
President and CEO Bernard Vincent O. Dy also stressed
that the strict adoption of corporate governance—simply
defined as doing the right things the right way—benefits
the Company in concrete ways that are reflected on its
bottom line.
The summit also concluded that adhering to the highest
corporate governance standards will play a key role in
achieving Ayala Land’s ambitious program to grow
revenues by 20 percent every year and record a net profit
of at least P40 billion by 2020.
Notes, Appendix,
and GRI Content Index
47
Notes
1
Malasakit can be roughly translated as “compassion.”
2
In 5 years, Php 10 billion in income and 15% on ROE.
3
Enabling employees to take 4 day leaves of absence per year to do volunteer work.
4
Alay sa Komunidad can be roughly translated as “contribution to community.”
5
Planted and retained in the past 20 years.
As measured through Google Maps, Legazpi Park is 8,392 sqm, Salcedo/ Velazquez Park is 6,452 sqm, Washington Sycip Park is 10,934 sqm.
6
Ayala Triangle Gardens is 21,442 sqm; Glorietta is 9,949 sqm; Greenbelt is 15,345 sqm. Data is provided by Ayala Property Management Corporation (APMC).
7
Rodis, Rodel (2014). Manila’s traffic jams cost $57 million a day. Retrieved August 26, 2015,
from http://globalnation.inquirer.net/113269/manilas-traffic-jams-cost-57-million-a-day.
8
Japan International Cooperation Agency (2014). JICA transport study lists strategies for congestion-free MM by 2030. Retrieved August 26, 2015, from http://www.jica.go.jp/philippine/english/office/topics/news/140902.html.
Estimated 200,000 cars per day in “How to Make Makati People-friendly” by Marge Enriquez (Philippine Daily Inquirer, 9 April 1995).
9
10
Salvador Tan, quoted by Lynette Corporal in “The Greening of Makati”(Manila Standard, 8 July 1995).
11
Based on 2013 traffic studies for Ayala Land estates.
12
Pedestrian-Friendly Streetscape in a Tropical Business District by Zenaida C. Galingan, 2009.
13
Asia Pacific Real Estate Association (APREA) Sustainability Handbook published in 2012.
We have also started to monitor top soil reuse, and are coming up with initiatives to improve surveys, identification and utilization of existing native trees in our estates.
14
15
Based on a 4-story Amaia project with 625m² floor plate (2,500m² total CFA) with 40kg/CFA rebar ratio.
Base year: 2011 Ayala land Sustainability Report, All Areas APMC-Managed Accounts. Consumption
at 360,800,00 kWh.
16
17
Based on 1,125 kwh consumption per household in the Philippines.
(2015). Average Electricity Consumption Per Electrified Household. Retrieved August 26, 2015,
from https://www.wec-indicators.enerdata.eu/household-electricity-use.html.
18
Investment properties include our shopping centers and offices where we have operational control.
We have installed solar panels which are used to provide electricity for 10 rooms and the kitchen of El Nido Cove Resort, located within our Lio development in El Nido town.
19
Makati South Sewage Treatment Plant Upgrade With On-Site Power Document Form. Retrieved August 26, 2015, from http://www.dnv.com/focus/climate_change/upload/msstp%20pdd%20ver02_280307.pdf.
20
USAID (2008). Philippine Sanitation Alliance Quarterly Report. Retrieved August 26, 2015,
from http://pdf.usaid.gov/pdf_docs/PA00HWHW.pdf.
21
(2012). Environment Al Assessment Report – Rehabilitation of Ayala Wastewater Treatment Plant. Retrieved August 26, 2015, from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/02/0
6/000333038_20120206214353/Rendered/INDEX/E26770v30EA0P10202020120Box365794B0.txt.
22
Based on the 2010 Ayala Corporation Annual Report.
23
Based on 15 tons (US) or 13.6078 metric tons capacity of a standard ten-wheeler dump truck.
24
Excludes recycled rebars and metal.
Ayala Land (Groupwide) – 2,992 full-time employees, APMC – 9,497 Outsourced Labor, MDC – 7,486 Contractuals Total – 19,975.
25
26
Based on employment multiplier of the construction industry.
Dumaua, M. B. (2010). Input-output multiplier analysis for major industries in the Philippines. 11th National Convention on Statistics.
48
Appendix
FINANCIAL HIGHLIGHTS
IN MILLION PESOS,
EXCEPT IF INDICATED
2013
2014
59, 932.0
81,523.0
95,197.0
9,038.3
11,741.8
14,802.6
Market capitalization,
in billion pesos
363.7
350.8
478.0
Capital expenditures,
in billion pesos
71.3
66.3
83.3
2012
2013
2014
59,932.2
81,523.1
95,197.0
Payments to suppliers/
contractors
32,914.9
45,347.6
53,662.5
Payments to employees
4,432.2
5,766.6
4,341.6
Payments to providers
of capital
6,167.1
8,244.9
11,298.7
Payments to governments
4,772.5
6,416.4
8,343.7
Payments to communities
22.0
316.7
27.0
11,623.5
15,430.9
7,523.5
Revenue
Net income
ECONOMIC VALUE DISTRIBUTION
IN MILLION PESOS
2012
EC1, EC9
Economic value generated
Total revenue
Economic value distributed
Economic value retained
49
MATERIALS CONSUMPTION
EN1
Materials
Unit
2013
2014
Rebars/steel
tons
96,648
96,857
Cement
tons
191,558
231,208
Cement
bags
4,788,948
5,780,209
ENERGY INTENSITY
APMC-managed
properties
EN1/CRE5
Unit
2011
2012
2013
2014
kWh/sqm/year
60.78
57.94
40.95
38.87
GHG EMISSIONS
GHG (t-CO2e)
SCOPES
Scope 1 EN 15
20,364
Scope 2 EN 16
269,753
Scope 3 EN 17
7,057
297,173
TOTAL
GHG INTENSITY
NOTE
Standards used for the computation are the GHG Protocol Corporate
Standards. Calculation tool used for fuel stationary emissions: World Resources
Institute (2015). GHG Protocol tool for stationary combustion. Calculation
tool used for fuel mobile emissions: World Resources Institute (2015). GHG
Protocol tool for mobile combustion. Version 2.6. Emission factors used for
electricity are from the Philippine Department of Energy. Reference for the
GWP rates is the 2014 IPCC 5th Assessment Report. Scope 2 Emission Factor
is broken down into Luzon-Visayas Grid and Mindanao Grid. Gasses reported
include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O).
EN18/CRE3/CRE4
AVERAGE SCOPE 2
GHG INTENSITY
2010
2011
2012
2013
2014
Investment
properties
kg-CO2e/sqm
267
251
244
241
220
Malls
kg-CO2e/sqm
332
308
295
273
252
Offices
kg-CO2e/sqm
219
218
215
218
191
Total GHG
(t-CO2e)
Intensity
(kg-CO2e/GLA)
HOTELS AND
RESORTS
MALLS
OFFICE
124,334
113,080
31,056
252
191
scope 2 only
scope 2 only
50
RESIDENTIAL
CAR PARKS
ESTATE
7,057
3,013
585
42
7.6
22.4
0.04
kg/room/day
per common area
per GLA
per managed area
G4-10, LA1
EMPLOYEE DISTRIBUTION
GENDER
TOTAL
HEADCOUNT
MALE
AGE DISTRIBUTION
FEMALE
% MALE
% FEMALE
UNDER 30
30 TO 50
OVER 50
% UNDER 30
270
46%
54%
110
315
73
22%
63%
Ayala Land
498
Alveo Land
118
41
77
35%
65%
64
54
-
54%
Avida Land
242
69
173
29%
71%
117
119
6
48%
MDC
329
242
87
74%
26%
54
211
64
Amaia Land
216
142
74
66%
34%
96
119
1
228
DISTRIBUTION BY POSITION
% 30
TO 50
% OVER 50
SENIOR
MIDDLE
MANAGEMENT MANAGEMENT
STAFF
DISTRIBUTION BY REGION
% SENIOR
% MIDDLE
MANAGEMENT MANAGEMENT
15%
26
224
248
5%
45%
46%
-
-
18
100
-
15%
49%
2%
-
45
197
-
19%
16%
64%
19%
1
111
217
-
44%
55%
-
-
41
175
-
% STAFF
% LUZ
50%
% VIS
% MIN
99%
1%
-
85%
95%
4%
1%
81%
94%
5%
1%
34%
66%
92%
7%
1%
19%
81%
98%
2%
-
Bella Vita
28
10
18
36%
64%
17
11
-
61%
39%
-
-
3
25
-
11%
89%
100%
-
-
APMC
319
212
107
66%
34%
144
161
14
45%
50%
4%
33
286
-
10%
90%
-
90%
9%
1%
El Nido Resorts
333
244
89
73%
27%
110
201
22
33%
60%
7%
2
21
310
1%
6%
93%
100%
-
-
Seda Hotels
151
81
70
54%
46%
71
72
8
47%
48%
5%
35
61
55
23%
40%
36%
48%
-
52%
Holiday Inn
99
53
46
54%
46%
44
53
2
44%
54%
2%
17
52
30
17%
53%
30%
100%
-
-
Fairmont
293
151
142
52%
48%
137
149
7
47%
51%
2%
6
65
222
2%
22%
76%
100%
-
-
Intercon
200
130
70
65%
35%
34
116
50
17%
58%
25%
18
97
85
9%
49%
43%
100%
-
-
Cebu Marriot
166
107
59
64%
36%
33
107
26
20%
64%
16%
10
12
144
6%
7%
87%
2%
98%
-
2,992
1,710
57%
43%
1,031
1,688
273
34%
56%
9%
148
1,036
1,808
5%
35%
60%
89%
8%
3%
Total
1,282
G4-10, LA1
EMPLOYEE DISTRIBUTION BY EMPLOYMENT CATEGORY
MIDDLE MANAGEMENT
SENIOR MANAGEMENT
EMPLOYEE DISTRIBUTION
AGE DISTRIBUTION
GENDER
GENDER DISTRIBUTION
TOTAL
HEADCOUNT
MALE
FEMALE
UNDER
30
30
TO 50
OVER 50
MALE
FEMALE
Ayala Land
498
21
5
-
9
17
108
116
Alveo Land
118
-
-
-
-
-
11
7
Avida Land
242
-
-
-
-
-
11
MDC
329
1
-
-
-
1
90
Amaia Land
216
-
-
-
-
-
Bella Vita
28
-
-
-
-
-
APMC
319
23
10
-
30
El Nido Resorts
333
1
1
-
Seda Hotels
151
21
14
4
Holiday Inn
99
8
9
3
Fairmont
293
5
1
Intercon
200
8
10
Cebu Marriot
166
8
2,992
96
Total
2014 NEW HIRES
RANK AND FILE
AGE DISTRIBUTION
OVER 50
MALE
FEMALE
UNDER 30
30 TO 50
OVER 50
3
185
36
99
149
107
121
20
1
17
-
30
70
63
37
-
34
-
42
3
58
139
117
77
3
21
2
72
37
151
66
52
139
26
16
25
2
38
1
126
49
94
81
-
3
-
-
3
-
7
18
17
8
-
3
189
97
144
131
11
-
-
-
-
-
2
-
11
10
5
16
-
232
78
105
183
22
26
5
35
26
22
37
2
25
30
45
9
1
12
2
26
26
23
29
-
19
11
18
12
-
-
5
1
27
38
13
47
5
119
103
124
97
1
-
16
2
55
42
17
60
20
67
18
17
40
28
2
-
6
4
4
8
2
9
1
95
49
31
92
21
52
7
106
35
586
450
234
686
116
1,028
780
790
896
122
AGE DISTRIBUTION
DISTRIBUTION BY POSITION
NEW HIRES
MALE
FEMALE
UNDER 30
30 TO 50
OVER 50
SENIOR
MANAGEMENT
MIDDLE
MANAGEMENT
Ayala Land
33
19
14
19
14
-
-
Alveo Land
31
12
19
24
7
-
-
Avida Land
65
15
50
47
18
-
5
MDC
96
66
30
37
47
12
-
87
Amaia Land
AGE DISTRIBUTION
30 TO 50
GENDER DISTRIBUTION
UNDER 50
GENDER DISTRIBUTION
STAFF
LUZ
VIS
MIN
8
25
1
30
33
-
-
29
2
-
60
-
15
81
57
5
3
83
13
-
23
64
55
32
-
-
6
81
85
2
-
Bella Vita
12
5
7
7
5
-
-
2
10
12
-
-
APMC
84
58
26
62
22
-
1
83
-
78
6
-
El Nido Resorts
43
27
16
27
14
2
-
3
40
43
-
-
Seda Hotels
71
36
35
40
29
2
18
25
28
49
-
22
Holiday Inn
22
15
7
12
9
1
9
9
4
22
-
-
Fairmont
52
25
27
28
20
4
1
15
36
52
-
-
Intercon
27
10
17
11
15
1
5
19
3
27
-
-
Cebu Marriot
27
16
11
15
12
-
1
2
24
-
27
-
Total
650
327
323
384
244
22
40
248
362
570
55
25
51
DIRECT HIRES
CONTRACTUALS
DAILIES
OUTSOURCED
Ayala Land
73
147
-
Alveo Land
955
149
-
Avida Land
135
65
-
Amaia
-
197
-
Bellavita
-
27
-
APMC
-
116
-
MDC
3846
111
7486
Seda BGC
-
110
-
Seda Abreeza
-
2
-
Seda CDO
-
3
-
Seda Nuvali
-
63
-
Fairmont
-
338
-
Cebu Marriott
-
185
-
Holiday Inn
-
194
-
Intercon
-
237
-
20
26
-
5,029
1,970
7,486
El Nido Resorts
Total
ATTRITION
EMPLOYEE TURNOVER
GENDER DISTRIBUTION
AGE DISTRIBUTION
TOTAL
HEADCOUNT
TOTAL
HEADCOUNT
2013
TOTAL NO. OF
EMPLOYEES
LEAVING
ATTRITION
RATE
MALE
FEMALE
UNDER 30
30 TO 49
50 AND UP
LUZ
VIS
MIN
Ayala Land
498
492
22
4%
11
11
8
14
-
22
-
-
Alveo Land
118
95
14
13%
9
5
10
4
-
13
1
-
Avida Land
242
231
23
10%
12
11
16
7
-
22
1
-
MDC
329
268
17
6%
8
9
-
6
11
17
-
-
Amaia Land
216
160
29
15%
8
21
14
15
-
28
1
-
Bella Vita
28
18
5
22%
2
3
5
-
-
5
-
-
APMC
319
289
61
20%
40
21
32
27
2
57
4
-
El Nido Resorts
333
328
42
13%
31
11
14
26
2
42
-
-
Seda Hotels
151
99
41
13%
19
22
24
15
2
21
-
20
Holiday Inn
99
97
20
20%
14
6
6
12
2
20
-
-
Fairmont
293
313
78
26%
37
41
27
46
5
78
-
-
Intercon
200
197
21
11%
11
10
7
6
8
21
-
-
Cebu Marriot
166
Total
2,992
155
21
13%
12
9
6
12
3
-
21
-
2,742
394
14%
214
180
169
190
35
346
28
20
52
2014 RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN BY EMPLOYEE CATEGORY
EMPLOYEE CATEGORY
FEMALE
MALE
Manager
1
1.45
Staff
1
0.78
2014 COMPOSITION OF GOVERNANCE BODIES AND BREAKDOWN OF EMPLOYEES
PER EMPLOYEE CATEGORY ACCORDING TO GENDER AND AGE GROUP GENDER DISTRIBUTION COUNT
AGE DISTRIBUTION COUNT
TOTAL
HEADCOUNT
MALE
FEMALE
UNDER 30
30 TO 50
OVER 50
Board of
Directors
9
89%
11%
-
-
100%
Management
Committee
9
89%
11%
NA
33%
67%
Total
18
-
-
-
-
-
LA2
LA9
OVERALL AVERAGE TRAINING
HOURS PER EMPLOYEE CATEGORY
BENEFITS PROVIDED TO FULL-TIME,
REGULAR EMPLOYEES OF AYALA LAND
Life insurance
Health coverage inpatient and outpatient
Disability/invalidity coverage
Retirement benefit
Leave benefits
Senior Management
(MTF-UP)
Middle Management
(MTF-UP)
Rank and File
Medical allowance
53
16.7
22.0
27.5
GRI G4 INDICATORS ALIGNED WITH AYALA LAND
SUSTAINABILITY FOCUS AREAS
Site Resilience
Economic
Environmental
G4-21
PedestrianTransit
Connectivity
-
EN11, EN12, EN14,
EN29,
EN31, EN34
Eco-efficiency
Local Economic
Development
Empowered
Organization
-
-
EC1, EC7,
EC8, EC9
EC6
-
EN1,EN2,EN3,
EN4, EN5, CRE1,
EN6,EN7, CRE2,
EN8, EN10, EN15,
EN16, EN17, CRE3,
EN19, EN23
-
-
Society
-
-
-
SO1, SO2
SO3
Human rights
-
-
-
HR1, HR8, HR9
HR4, HR5,
HR6, HR12
Product
responsibility
PR1
-
-
PR5
-
-
-
-
LA1, LA2, LA4, LA6,
LA9, LA10
-
12
Labor
-
Total Indicators:
81 or 77 GRI G4
indicators
LA1, LA2, LA4,
LA6
LA1, LA2, LA4
-
Local
employment
generated at
each stage of
the project
development
cycle
11 (for external
assurance)
3
16 (for external
assurance)
11
SUSTAINABILITY SCORECARD
Site Resilience
Technical due diligence for
use in site selection, design,
and planning
Stormwater sensitive
Pedestrian-Transit
Connectivity
Planning for
pedestrian-friendly facilities
Incorporation of public
transport stops and
terminals
Use of indigenous
plants for climate resilience
-
54
Eco-efficiency
Monitoring and managing
projects to improve
performance in:
a. materials use
b. energy and water
consumption
c. GHG emissions
d. residual waste
management
-
Local Economic Contribution
Economic value distributed
Direct and indirect
jobs created as a
result of the project
development cycle
Direct
and indirect
community
investments
STAKEHOLDER SUSTAINABILITY CONCERNS
G4-24 to G4-27
Stakeholder
Sustainability Concerns
Means of Engagement
Business partners and suppliers
Adherence to highest level of moral
and ethical conduct
Third-party accreditation process;
vendor audits in accordance with
the Vendors’ Code of Ethics
Communities
Quality of life in and around
Ayala Land developments
Community engagement activities
and consultations through partners,
barangay (village) officials, homeowners’
associations, and non-government
organizations; third-party assessments
Customers
Delivery of best-in-class products and
services
Customer surveys; feedback through
website and social media
Employees
Adherence to Ayala Land Code of
Ethical Behavior; professional and
organizational development
Regular town halls, quarterly briefings,
bi-annual third-party administered
Organizational Climate Survey (OCS)
Government
Economic development
and nation-building
Participation in local development
councils, where applicable
Non-government organizations
Meaningful and effective engagement
with communities
Partnerships to uplift environmental,
social, and economic conditions of poor
communities near or adjacent
to our developments
Media
Timely and accurate
news; transparency
Quarterly investor relations business
briefings; briefings on project launches;
press releases
Shareholders
Access to timely, accurate,
and relevant information
Investor Relations website; quarterly
financial analysts’ briefings; annual
stockholders meetings
55
GRI Content Index
GRI G4 GENERAL STANDARD DISCLOSURES
INDICATOR
SHORT DESCRIPTION
FOUND IN PAGE/S
G4-1
Statement from the most senior decision-maker.
SR pp. 6-7
G4-2
Description of key impacts, risks, and opportunities.
SR pp. 6-7
G4-3
Name of the organization.
AR p. 3
G4-4
Primary brands, products, and services.
AR pp. 26-42
G4-5
Location of the organization's headquarters.
AR p. 110
G4-6
Number of countries where the organization operates, and names of countries
where either the organization has significant operations.
AR p. 3
G4-7
Nature of ownership and legal form.
AR pp. 3, 66, 111-114
G4-8
Markets served (including geographic breakdown, sectors served, and types of
customers and beneficiaries).
AR p. 3
G4-9
Scale of the organization.
AR pp. 3, 6-7, 111-114
G4-10a
G4-10b
Total number of employees by employment and gender.
SR p. 51-52
G4-11
Percentage of total employees covered by collective bargaining agreements.
100% of non-management employees
of the Parent Company are covered by
the results of our collective bargaining
agreements
G4-12
Describe the organization's supply chain.
SR p. 14
G4-13
Significant changes during the reporting period regarding the organization’s size,
structure, ownership, or its supply chain.
AR pp. 114-117
G4-14
Whether and how the precautionary approach or principle is addressed by the
organization.
AR pp. 76, 81, 86-87, SR pp. 14-15
G4-15
Externally developed economic, environmental and social charters, principles, or
other initiatives to which the organization subscribes or which it endorses.
AR p. 47
G4-16
Memberships of associations (such as industry associations) and national or
international advocacy organizations.
AR pp. 90, 92
G4-17
Entities included in consolidated financial statements and exclusions.
AR pp. 111-114
G4-18
a. Process for defining the report content and the Aspect Boundaries; b. How the
organization has implemented the Reporting Principles for Defining Report Content.
SR pp. 5, 14-15
G4-19
Material Aspects identified in the process for defining report content.
SR pp. 14-15, 17, 23, 29, 39, 54
G4-20
Whether the Aspect is material within the organization.
SR pp. 14-15, 54, 59-65
G4-21
Whether the Aspect is material outside of the organization.
SR pp. 54, 59-65
G4-22
Effect of any restatements of information provided in previous reports, and the
reasons for such restatements.
G4-23
Significant changes from previous reporting periods in
the Scope and Aspect Boundaries.
Inclusion of Visayas-Mindanao properties
in resource consumption data. Inclusion
of Hotels and Resorts resource
consumption data
G4-24
List of Stakeholder Groups engaged by the organization.
AR pp. 60-62, SR p. 55
G4-25
Basis for identification and selection of stakeholders with whom to engage.
SR pp. 14-15, 55
G4-26
Organizations approach to stakeholder engagement, including frequency of
engagement by type and by stakholder group, and an indication whether any of the
engagement was undertaken specifically as part of the preparation process.
SR pp. 14-15, 55
G4-27
Key topics and concerns that have been raised through stakeholder engagement, and
how the organization has responded to those key topics and concerns.
SR pp. 14-15, 55
G4-28
Reporting period (such as fiscal or calendar year).
AR p. 5, SR p. 5
G4-29
Date of most recent previous report.
2014
G4-30
Reporting cycle.
Annual
56
Energy, Water data from 2012-2013
G4-28
Reporting period (such as fiscal or calendar year).
AR p. 5
G4-29
Date of most recent previous report.
2014
G4-30
Reporting cycle.
Annual
G4-31
Contact point for questions regarding the report or its contents.
SR p. 69
G4-32
‘In accordance’ option the organization has chosen.
Core
G4-33
Organization’s policy and current practice with regard to seeking external assurance
for the report.
SR pp. 5, 66-67
G4-34
Governance structure of the organization, including committees of the highest
governance body. Identify any committees responsible for decision-making on
economic, environmental and social impacts.
AR pp. 80-82
G4-35
Process for delegating authority for economic, environmental and social topics from
the highest governance body to senior executives and other employees.
AR pp. 80-82
G4-36
Whether the organization has appointed an executive-level position or positions
with responsibility for economic, environmental and social topics, and whether post
holders report directly to the highest governance body.
AR pp. 80-82
G4-37
Processes for consultation between stakeholders and the highest governance body
on economic, environmental and social topics. If consultation is delegated, describe
to whom and any feedback processes to the highest governance body.
AR pp. 80-82
G4-38
Composition of the highest governance body and its committees.
AR pp. 71, 80-82, 90-92
G4-39
Whether the Chair of the highest governance body is also an executive officer (and, if
so, his or her function within the organization’s management and the reasons for this
arrangement).
AR pp. 71, 80-82, 90-92
G4-40
Nomination and selection processes for the highest governance body and its
committees, and the criteria used for nominating and selecting highest governance
body members.
AR pp. 71, 80-82, 90-92
G4-41
Processes for the highest governance body to ensure conflicts of interest are avoided
and managed.
AR pp. 58-59
G4-42
Highest governance body’s and senior executives’ roles in the development, approval,
and updating of the organization’s purpose, value or mission statements, strategies,
policies, and goals related to economic, environmental and social impacts.
AR pp. 47-57, 71, 80-82, 90-92
G4-43
Board competencies and performance evaluation measures taken to development
collective knowledge of economic, environmental and social topics.
AR pp. 88-90
G4-44
Processes for evaluation of the highest governance body’s performance with respect
to governance of economic, environmental and social topics. Report whether such
evaluation is independent or not, and its frequency. Report whether such evaluation is
a self-assessment.
AR pp. 81, 83, 90
G4-45
Highest governance body’s role in the identification and management of economic,
environmental and social impacts, risks, and opportunities. Include the highest
governance body’s role in the implementation of due diligence processes.
AR pp. 73-80, 86-87
G4-46
Highest governance body’s role in reviewing the effectiveness of the organization’s risk
management processes for economic, environmental and social topics.
AR pp. 73-80
G4-47
Frequency of the highest governance body’s review of economic, environmental and
social impacts, risks, and opportunities.
AR pp. 71, 80-82, 90-92
G4-48
Highest committee or position that formally reviews and approves the organization’s
sustainability report and ensures that all material Aspects are covered.
AR pp. 71, 80-82, 90-92
G4-49
Process for communicating critical concerns, nature and number.
AR pp. 71, 80-82, 90-92
G4-50
Nature and total number of critical concerns that were communicated to the highest
governance body and the mechanism(s) used to address and resolve them.
AR pp. 71, 80-82, 90-92
G4-51
Remuneration policies for the highest governance body and senior executives.
AR p. 85
G4-52
Process for determining remuneration. Report whether remuneration consultants
are involved in determining remuneration and whether they are independent of
management. Report any other relationships which the remuneration consultants have
with the organization.
AR p. 85
G4-53
How stakeholders’ views are sought and taken into account regarding remuneration,
including the results of votes on remuneration policies and proposals, if applicable.
AR pp. 78-79, 85
57
G4-52
Process for determining remuneration. Report whether remuneration consultants are
involved in determining remuneration and whether they are independent of management.
Report any other relationships which the remuneration consultants have
with the organization.
AR p. 85
G4-53
How stakeholders’ views are sought and taken into account regarding remuneration,
including the results of votes on remuneration policies and proposals, if applicable.
AR pp. 78-79, 85
G4-54
Ratio of the annual total compensation for the organization’s highest-paid individual in each
country of significant operations to the median annual total compensation for all employees
(excluding the highest-paid individual) in the same country.
Omitted, not currently part of
internal accounting metrics
G4-55
Ratio of percentage increase in annual total compensation for the organization’s highestpaid individual in each country of significant operations to the median percentage increase
in annual total compensation for all employees (excluding the highest-paid individual) in the
same country.
Omitted, not currently part of
internal accounting metrics
G4-56
Organization’s values, principles, standards and norms of behavior such as codes of conduct
and codes of ethics.
AR pp. 3, 47, 62-64
G4-57
Internal and external mechanisms for seeking advice on ethical and lawful behavior, and
matters related to organizational integrity, such as helplines or advice lines.
AR pp. 63-64
G4-58
Internal and external mechanisms for reporting concerns about unethical or unlawful
behavior, and matters related to organizational integrity, such as escalation through line
management, whistleblowing mechanisms or hotlines.
AR pp. 63-64
Legend: Annual Report – AR Sustainability Report – SR
58
SPECIFIC STANDARD DISCLOSURES – ECONOMIC
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – ECONOMIC PERFORMANCE
G4-DMA
We shall maintain our standing and reputation as the Philippines’ leading real-estate developer. We develop integrated,
masterplanned mixed-use communities in growth centers as platforms for our end-to-end real estate products – ranging from
residential, retail and office developments, as well as hotels and island resorts, to construction and property management
services. Our long-term growth is built on this market-leading platform and our five-pillar strategy of growth, margin
improvement, capital efficiency, and brand building.
G4-EC1
Direct economic value
generated and distributed
Ayala Land
and subsidiaries
SR p. 49
ASPECT – MARKET PRESENCE
G4-DMA
EC6
Expansion into new growth centers provides us with opportunities for creative and sustainable solutions that distinguish
our real estate products. Our projects help stimulate the local economies, contribute to local employment, and improve public
infrastructure where we establish our presence.
Proportion of senior
management from hired local
community
100% of Senior Management, with rank Vice President and above are Filipinos
Ayala Land
and subsidiaries
ASPECT – DIRECT ECONOMIC IMPACT
G4-DMA
We see ourselves as a strong partner in nation-building.
EC7
Development and impact of
infrastructure investment and
services supported
SR pp. 20-27, 43
All construction projects
in 2014; mature estates
EC8
Significant indirect economic
impacts, including the extent
of impacts
SR pp. 20-27, 43
All construction projects
in 2014; mature estates
ASPECT – PROCUREMENT PRACTICES
G4-DMA
EC9
Ayala Land utilizes a third-party vendor/supplier pre-qualification system to screen for legitimacy and credit worthiness of
our suppliers. Potential environmental impacts are identified during the technical evaluation of pre-qualified vendors and
products during the actual procurement exercises, most especially for projects with environmental sensitivities. Vendors and
suppliers are strongly encouraged to conform with Ayala Land’s Vendors’ Code of Ethics, and abide by the same code in their
dealings with their subcontractors. The Code provides guidelines on the following aspects: labor practices, health and safety,
environment, management system, and ethics. Incidents involving the supply chain are also reviewed through the enterprisewide risk management system, and used as basis for improvement.
Spending on local suppliers
Ayala Land
and subsidiaries
SR p. 49
SPECIFIC STANDARD DISCLOSURES – ENVIRONMENTAL
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – MATERIAL
G4-DMA
EN1
EN2
We optimize plant resources and optimize materials efficiency in our construction activities.
Materials used by weight
and volume
Percentage of material
used that are recycled
input material
All 2014 construction
projects of MDC
SR pp. 30, 50
1. Rebar - As per Steel Asia, there is 88.6% post
consumer recycled content and 6.5%
preconsumer recycled content
2. Cement - contains flyash of 30% cement
replacement
3. 1,955 tons of rebars and metal
were recycled
59
MDC
ASPECT – ENERGY
G4-DMA
The Philippines has one of the highest energy costs in Southeast Asia, and energy efficiency is as much a business decision
as it is an environmental concern for Ayala Land. Energy savings are achieved by the Company through: 1) the use of lowenergy technology such as LED lights, motion sensors in common areas of new buildings, and retrofitting old ones, where
appropriate; 2) management systems using intelligent energy-efficient equipment to control pumps, motors; and 3) inclusion
of energy efficiency metrics in property managers’ performance evaluation. Ayala Land also has two subsidiaries, PhilEnergy
and DirectPower that design and install district cooling systems (DCS), engage in retail electricity supply, and explore new
energy savings technologies for Ayala Land properties and other clients.
EN3
Energy consumption
within the
organization
EN4
Energy consumption
outside the
organization
EN5/CRE1
EN6
SR p. 32
23 sold residential properites (vertical and horizontal) posted
11,699,492 kWh of consumed electricity
Energy intensity
Reduction of energy
consumption
SR p. 50
The following initiatives in our investment properties enables
our locators, tenants, and customers to reduce their energy
requirements in the use of our development: 1) Replacement of
old chillers with high efficiency chillers that consumes 30% to 40%
lower electricity 2) Installation of Lepro seva which reduces energy
consumption of pumps and motors by 25-40% 3) Installation of
Variable Frequency Drives allows us to generate savings of up to
20% 4) Installation of escalator sensors enables us to generate
5%-20% savings on escalator operation depending on passenger
traffic 5) Installation of LED lights which provide 15% savings on
lighting consumption.
All APMC-managed properties,
construction activities, hotels
and resorts properties
23 residential properties
managed by APMC
APMC-managed properties
ASPECT – WATER
G4-DMA
Ayala Land complies with the national law (Philippine Water Code) and local policies regulating water extraction and utilization.
Our developments only utilize water district suppliers such as Manila Water and Maynilad if they operate in the project sites.
For properties outside of their coverage area, Ayala Land coordinates with the local water district suppliers to lessen and
ultimately eliminate the use of deepwell/ ground water. Annually, we have a target water metric per type of property that is
included in our Key Result Areas (KRA). On average, we improve our performance by at least
3% year-on-year.
CRE2
Building water
intensity
EN8
Total water
withdrawal by source
EN10
Percentage and total
volume of water
recycled and reused
APMC-Managed Properties: 0.56 cum/sqm/year
SR p. 35
In El Nido Resorts: Product water of STP used for toilet flushing
and watering plants. Landscaping and toilet flushing in NUVALI
Evoliving Center
All APMC-managed properties,
construction projects, hotels
and resorts properties
El Nido and Nuvali
ASPECT – BIODIVERSITY
G4-DMA
EN11
Ayala Land abides by local and national Philippine laws for biodiversity management. These laws include the National
Integrated Protected Areas System, Wildlife Act, Environmental Impact Statement Law, Marine Protected Areas, and other
relevant laws, directives and ordinances that protect biodiversity. Flora and fauna studies are part of our technical due
diligence processes. These studies guide masterplanning exercises, and best efforts are undertaken to minimize any impact
on the habitat. We have started to increase the number of native plant species in our urban developments and identify
native/existing tree stands, and we exert best efforts to maintain heritage and protected tree/plant species. We apply
lessons learned from previous projects such as Anvaya to protect biodiversity, especially as we expand our hotels and
resorts portfolio and move into environmentally significant areas in the Philippines.
Operational sites
owned, leased,
managed in, or
adjacent to,
protected areas of
high biodiversity
value outside
protected areas
Anvaya – 470 hectares El Nido – 25 hectares
Alviera – 1,125 hectares Nuvali – 1,860 hectares
60
Selected projects
EN12
Description of
significant impacts of
activities and products
and services in
biodiversity
EN14
Total number of IUCN
red list species and
national conservation
list species
SR pp. 17-21
Mature estates
6 IUCN Red List Species. Olive Ridley Turtle (Lepidochelys olivacea) at
Anvaya Cove. Palawan Peacock Pheasant (Polyplectron napoleonis),
Palawan Hornbill (Anthracoceros marchei), Hawksbill Turtle (Eretmochelys
imbrata), Green Turtle, (Chelonia mydas), Mantanani Scops Owl (Otus
mantananensis) at El Nido Resorts. This list remains unchanged and was
externally assured in the 2013 Sustainability Report.
Anvaya
and El Nido Resorts
ASPECT – EMISSIONS
G4-DMA
The Philippines currently does not have regulations and policies for emissions and mainly focuses on adaptation measures
in its climate change policy. Ayala Land is voluntarily tracking its emissions. Our reduction policy increase efficiencies in
energy use of our projects through design, technologies and behavioral approaches. By tracking and measurement, and
refining our metrics we are able to identify areas for improvement, as well as best practices that we could use for design
and planning, as well as operations.
EN15
Direct greenhouse
gas emission
20,364 tons of GHG CO2e.
This covers 23 properties
managed by APMC which
had diesel requirement
for 2014, all construction
projects and batching
plants, 5 out 8 properties
under our hotels and
resorts portfolio.
EN16
Energy indirect
greenhouse gas
emission
Whole building kWh
consumption including
tenants
EN17
Other indirect
greenhouse gas
emission
EN18/
CRE3/CRE4
EN19
Greenhouse gas
emission intensity
Reduction of
greehouse gas
emissions
23 sold residential
properties
All APMC-managed
properties, construction
projects, hotels and
resorts properties
SR p. 50
5,864.3 tons of GHG CO2e (Visayas and Mindanao properties calculated
with lower emission factor for a more conservative figure)
ASPECT – EFFLUENTS AND WASTE
G4-DMA
EN34
Projects with potential environmental impacts are required to secure an Environmental Compliance Certificate (ECC), which
also stipulates that multipartite monitoring teams (MMTs) conduct regular inspections. Regular Philippine feedback channels
such as the barangay (village) councils and LGUs have also been used by community members to provide feedback to the
Company. In addition, our incident reporting process, which we call Business Integrity channels, provides a way to report
various concerns which may not necessarily be solely environmental in nature. Legitimate concerns are acted upon after due
process
Number of grievances
about environmental
impacts filed
addressed, and
resolved, through
formal grievance
mechanism
No major or significant grievances (causes major impacts on health,
safety, life, livelihood, and property) about environmental impacts
have been filed against the Company. Ayala Land, however, keeps open
communication lines with LGUs and acts accordingly on concerns from
immediate communities such as inconveniences due to traffic during
construction.
61
Ayala Land and
subsidiaries
SPECIFIC STANDARD DISCLOSURES – LABOR PRACTICES AND DECENT WORK
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – EMPLOYMENT
G4-DMA
We believe that organizational development is a key pillar of our growth strategy. We empower our employees by providing
them a work environment that promotes personal fulfillment and professional advancement. We provide competitive
compensation and benefits package that is at par with industry standards.
LA1
Total number and rates of new
employee hires and employee
turnover by age group, gender and
region
2,992 employees for 2014 vs. 2,742 in 2013
representing a 9% increase. Refer
to SR pp. 51-52
Ayala Land
and subsidiaries
LA2
Benefits provided to full-time
employees that are not provided to
temporary or part-time employees, by
significant locations of operation
Life insurance, in-patient and out-patient health
coverage, disability and invalidity coverage, retirement
benefits and medical allowance are the benefits received
by regular full-time employees
Ayala Land
and subsidiaries
ASPECT – LABOR MANAGEMENT RELATIONS
G4-DMA
LA4
We believe in open lines of communication between management and employees. We conduct regular townhall meetings,
observe and implement formal and informal grievance mechanisms, and administer an Organizational Climate Survey every
two years.
Minimum notice periods regarding
operational changes, including
whether these are specified in
collective agreements
We allot 30 days notice for significant operational
changes
Ayala Land
and subsidiaries
ASPECT – OCCUPATIONAL HEALTH AND SAFETY
G4-DMA
LA6
Ayala Land ensures full and effective compliance with all relevant government regulations. Ayala Land employees to undergo
annual physical exams and regular flu, cervical, and pneumonia vaccinations. Employees receive health risk assessments,
timely information on prevention of serious diseases, and there is extensive health insurance coverage for both employees
and eligible family members. We have our clinic with a company nurse and doctor available to employees. A Safety Council
has been instituted in 2013 and there are programs and officers for Safety and Pollution Control for all field personnel. We
mandate the use of personal protective equipment, safety glasses, and dust masks among construction personnel. We have
a detailed Emergency Response Plan in place and regular fire, earthquake, and emergency response drills are conducted. Type of injury and rates of injury,
occupational diseases, lost days, and
absenteeism, and total number of
work related facilities
Ayala Land parent and APMC had zero incidence of
work-related injury/illness as reported to DOLE. MDC
recorded a total of: 1.02 Minor Total Recordable Incident
Rate (TRIR) (includes injuries such as abrasions, bruises).
0.04 Major Total Recordable Incident Rate (TRIR) (includes
fatalities, property damage 50k up) which involves 96
persons injured, 4 Work-Related Fatalities, and 138
Persons involved in Near Misses. Data from hotels and
resorts are not yet included in this report, and will be
covered in the next period.
Ayala Land Parent,
APMC, and MDC
ASPECT – TRAINING AND EDUCATION
G4-DMA
We believe in holistic development of our talent and espouse the culture of building from within. We offer quality training
opportunities and custom-fit courses that recognize and address the needs of Ayala Land’s Leadership Pipeline. Training
modules cover business and technical knowledge, skill-building, values, ethics and corporate governance. Knowledge
transfer and building of capabilities is done through the shared efforts of the individual and their boss, executives,
managers and subject-matter experts.
LA9
Average hours of training per year per
employee by gender, and by employee
category
25.62 hours. Refer to SR p. 53
Ayala Land
and subisidiaries
LA10
Programs for skills management and
lifelong learning that support the
continued employability of employees
and assist them in managing career
ending
SR pp. 44-46
Ayala Land
and subisidiaries
62
SPECIFIC STANDARD DISCLOSURES – HUMAN RIGHTS
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – INVESTMENTS
G4-DMA
HR1
Our due diligence processes in land acquisition ensures that our locational choices considers the rights of communities and
legitimate claimants, in accordance with Philippine laws. Joint venture partners and subsidiaries are expected to provide
support for legitimate community claims, and come up with mechanisms to protect minority rights.
Total number and percentage of
significant investment agreements
and contracts that include human
rights clauses or that underwent
human rights screening
Our due diligence process in land acquisition enables
us to recognize locations with potential human
rights impacts in relation to legitimate claims on
ownership. We follow existing laws and regulations
that safeguards human rights, thus there is no
specific need of including human rights clauses in our
agreements and contracts. Adequate legal research
is undertaken to ensure that rights of legitimate
claimants are recognized, and potential impacts
mitigated.
Ayala Land
and subsidiaries
ASPECT – FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
G4-DMA
HR4
Ayala Land protects freedom of association and has neither policies nor aspects of our operations that will prohibit any
employee from exercising this freedom to unionize and the right to collective bargaining. Results of the collective bargaining
benefit all non-management employees, whether they are members of the union or not.
Operations and suppliers in which
the right to exercise freedom of
No aspect of our operations prohibits freedom
association and collective bargaining
of association
may be at risk and actions taken to
support these rights
Ayala Land
and subsidiaries
ASPECT – CHILD LABOR
G4-DMA
HR6
Our Compensation and Benefits guidelines and our regular performance reviews of all employees ensure that all work is
compensated according to Philippine labor laws and the Company's performance incentive program. Economic sanctions
placed on erring employees do not include any form of unpaid labor.
Operations and suppliers identified
No aspect of our operations has been identified as
as having significant risk for incidents
having significant risk for forced labor
of forced labor
Ayala Land
and subsidiaries
ASPECT – INDIGENOUS RIGHTS
G4-DMA
HR8
Our due diligence processes ensures that our locational choices considers the rights of indigenous peoples living in the area
of operation, in accordance with the Indigenous People's Rights Act (IPRA) of the Philippines. We work with legitimate
community and non-profit organizations on capacity building programs to increase opportunities for indigenous and local
communities' participation in our value chain.
Total number of incidents of
violations involving rights of
indigenous peoples and actions
taken
None of our operations and developments are located
in ancestral domains, therefore there are no incidents
involving the violation of rights of indigenous peoples
Ayala Land
and subsidiaries
ASPECT – ASSESSMENT
G4-DMA
HR9
Human rights of employees and stakeholders of our value chain are protected through the Company's adherence to the
Labor Code of the Philippines and other relevant laws protecting community rights.
Total number and percentage of
operations that have been subject
to human rights reviews or impact
assessment
Our due diligence process in land acquistion enables
us to recognize locations with potential human rights
impacts in relation to legitimate claims on ownership.
At the moment, however, there is no tracking system
specifically covering human rights assessment.
Adequate legal research is undertaken to ensure that
the rights of legitimate claimants are recognized, and
potential impacts are mitigated
63
Ayala Land
and subsidiaries
ASPECT – HUMAN RIGHTS GRIEVANCE MECHANISMS
G4-DMA
HR12
The Company’s Business Integrity Channels enable individuals to freely report fraud, violations of laws, rules and regulations,
and any misconduct concerning Ayala Land directly, without fear of retaliation. Grievances are brought to our attention
through various media such as the company website, customer service hotlines, external affairs division, and the concerned
Ayala Land business unit.
Number of grievnces about
human rights impact filed,
There were no reported grievances against Ayala Land and
Ayala Land and subsidiaries
addressed, and resolved through the subsidiaries concerning impacts on human rights
formal grievance mechanism
SPECIFIC STANDARD DISCLOSURES – SOCIETY
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – LOCAL COMMUNITIES
G4-DMA
We collaborate with and consult local government and local community organizations to ensure that our large-scale mixed-use
projects are relevant to host communities. Project teams review environmental, social, economic impacts of projects, design and
develop communities in a manner that promotes long-term value, and support community programs to mitigate negative impacts
on vulnerable groups in the area. As a company operating in a climate-vulnerable country, we also make sure that we respond to
the needs of communities affected by calamities
100% of large-scale land development projects (50,000
square meters and above) were assessed for impacts and
underwent the DENR Environmental Impact Assessment
Process, which include scoping for community impacts.
Project teams continue to monitor for impacts throughout
the project cycle and respond to concerns of affected
communities and local government units.
SO1
Percentage of operations
with implemented local
community engagement, impact
assessments, and development
programs
SO2
All new developments have possible impacts on
surrounding communities. Projects in already urbanized
areas have impacts on traffic and transport. To mitigate
these impacts, we undertake traffic studies and
ensure that the intensity and duration are abated and
are reversible. We work with local governments and
incorporate transport facilities in our projects to serve
Operations with significant actual
the riding public. Thus, there were no projects that
and negative impacts on local
had significant negative impacts on the communities.
communities
Developments in non-urban areas may have impacts
on agriculture production in neighboring areas. Our
due diligence processes, however, ensure that our
developments are located in areas zoned for commercial
and residential use, minimizing the impact on agricultural
activities and maximizing the economic potential of land
resources.
Ayala Land
and subsidiaries
Ayala Land
and subsidiaries
ASPECT – ANTI-CORRUPTION
G4-DMA
SO3
Anti- corruption is important to us at Ayala Land. Our Company has been defined by our continued commitment and fidelity to
our values and to doing things the right way. Our strict adherence to these high standards have been the bedrock upon which we
have built our reputation. We have established policies and implemented best practices covering all entities and employees within
Ayala Land Group regarding anti-corruption. These include the following: 1. Code of Ethical Behavior for all employees; 2. Code of
Ethical Procurement Conduct; 3. Vendor’s Code of Ethics; 4. Conflict of Interest Policy; 5. Whistleblowing Policy; 6. Establishment
of ALI Business Integrity or Reporting Channels through https://services.punongbayan-araullo.com/extdata/proactive.nsf/goto/
aligroup; 7. Establishment of the Ayala Land Ethics Committee; and the 8. Implementation of the Vendor Audit. All told, our good
corporate governance practices, which include anti-corruption initiatives, have been manifested in the positive performance of
our businesses and in various corporate governance awards and recognition.
Total number and percentage
of operations assessed for risk
related to corruption and the
significant risk identified
64
Our enterprise-wide risk assessment exercises assessed
100% of our core business units (Residential, Shopping
Centers, Hotels and Resorts, Services like Property
Management and Construction) where 24 key SBU-specific
risks and 8 key risks common to several SBUs were
identified. Fraud risk is one of the said 8 key risks which
is under the monitoring/mitigation of the office of the
Finance Group Head.
Ayala Land
and subsidiaries
SPECIFIC STANDARD DISCLOSURES – PRODUCT RESPONSIBILITY
INDICATOR
SHORT DESCRIPTION
DATA, PAGES
BOUNDARY
ASPECT – CUSTOMER HEALTH AND SAFETY
G4-DMA
PR1
Safety is our topmost priority when it comes to our operating principles. Our technical due diligence and project development
process identify our potential positive and negative impacts on the environment, community, and customers from site
assessment to delivery of our real-estate products and property management. Our sustainability checklist enable us to
monitor in our projects the implemenation of proper design and operational procedures that ensure the safety of our
customers.
Percentage of significant product
All new projects are subjected to technical due diligence that
and service categories for which
assess for health and safety impacts on the environment, our
health and safety impacts are
customers, and surrounding communities
assessed for improvement
Ayala Land and subsidiaries
ASPECT – PRODUCT AND SERVICE LABELING
G4-DMA
Customer service is a key component of Brand Building, one of Ayala Land's five pillar strategy. An annual customer
satisfaction survey is undertaken across all APMC-managed properties to monitor and improve customer experience in our
properties.
In 2014, APMC scored 3.49 out of a possible high grade of 4
from our Customer Satisfaction Survey results. APMC also
garnered higher satisfaction ratings of 94.33% (vs. 2013:
93.93%) on its Service Level Agreement (SLA). Our overall
recommendation score from residents in our residential
properties improved to 3.44 in 2014 (vs 2013: 3.30).
PR5
Results of surveys measuring
customer satisfaction
Note:
The Customer Satisfaction Survey covers APMC-managed
properties less than three years old such as malls, offices, car
parks, estates and residential areas. This is facilitated by the
parent company, Ayala Land.
The Service Level Agreement ratings cover the same type of
APMC-managed properties older than three years. This survey is
conducted by APMC.
65
APMC and Residential
Business Units
66
67
s
68
Acknowledgments
Produced by Ayala Land, Inc.
Board Sustainability Committee
Jaime Laya
Rizalina Mantaring
Bernard Vincent Dy
Sustainability Council
Art Corpuz
Raul Irlanda
Joel Luna
Lilit Tumbocon
Jaime Ysmael
Sustainability Team
Anna Maria Gonzales
Nathan Casanova
Corporate Communications
Suzette Naval
Kay Rivera
Maleene Camo
External Assurance
DNV-GL
Corporate Information
Data Contributors
Leo Abot
Rodielyn Aguilar
Denmar Alarcon
Leah Alay-ay
Arlene Arao
Rodney Asinas
Farah Atienza
Allan Barrera
Dave Blas
Benjie Borja
Noah Bubod
Mary Ann Castañeda
Ivan Daguio
Jason de las Alas
Oliver Dudler
Dodo Enriquez
Dindo Fernando
Christian Gacias
Mike Garcia
Arnel Hernandez
Jeo Ignacio
Richard Jumawan
Randy Lim
Nikko Lim
Ruel Llanes
Jun Mabingnay
Chris Macasaet
Joan Malang
Kath Mariano
Jimmy Matias
Natz Nañasca
Alvin Odejar
Gina Oris
Paolo Paterno
Orl Paule
Peachy Peñaflorida
Kim Pomperada
Rhea Reyes
Che Sereno
Shirley Silva-Mazon
Des Suarez
Buddy Tan
Maphi Tandoc
Chelo Tirona
Agatha Valera
Pachot Villanueva
Eli Yañeza
Concept, Design, and Layout
Medium3
Tower One and Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, 1226 Philippines
Tel +63(2) 908 3000
Fax +63(2) 848 5336
Additional Photography
Cox Photography
North Eyes Productions
Corporate website: www.ayalaland.com.ph
For inquiries or concerns on this report, please contact:
30F Tower One and Exchange Plaza
Tel +63(2) 9083832
Fax +63 (2) 7594972
Sustainability website:
www.ayalaland.com.ph/sustainability
Tel +63(2) 845 5746
+63(2) 845 5038
Fax +63(2) 845 5515
69
Tower One and Exchange Plaza
Tel +63(2) 908 3000
Fax +63(2) 848 5336
www.ayalaland.com.ph
70

Let`s build sustainable communities

Transcription

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