Our Management Approach

In accordance with the GRI (Global Reporting Initiative) Standards, Ayala Land uses the Disclosures on Management Approach, or DMAs, to provide information on how we manage and respond to our material economic, environmental and social impacts, as identified through our materiality process.

ECONOMIC

Economic Performance <GRI 201>
We shall maintain our standing and reputation as the Philippines’ largest property developer. We develop large-scale, integrated, masterplanned mixed-use estates 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. To further expand our footprint, we assess regional and urban development trends and we identify locations that provide good growth prospects and are sustainable for mixed-use estates.

Market Presence <GRI 202>
We will continue to launch products attuned to market demand, and aspire to achieve a healthy mix between horizontal and vertical developments. 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.

Indirect Economic Impacts <GRI 203>
As we manage our businesses, we continue to identify issues and topics reflecting the economic, environmental, and social impacts that are of interest to our stakeholders. We see ourselves as a strong partner in nation-building and we are aware that our projects have a significant impact in the areas where we operate. Our strategic presence through our various developments across the country helps create opportunities for employment and productivity.

Procurement Practices <GRI 204>
To promote open competition and to provide equal opportunity to all our vendors, regardless of the geographical locations where our vendors are based, we encourage them to participate in all biddings to fulfill the requirements of our projects. We accredit suppliers upon full compliance with our standards and requirements, with preference for suppliers that practice environmental responsibility, consistent with the parameters established under our “greening the supply chain” campaign. In 2018, we started rolling out our Sustainability campaign to raise awareness on Sustainability and influence our vendors to adopt our sustainable practices or create their own initiatives.

To ensure that business partners, suppliers, and service providers maintain the highest standards of quality and business integrity with its dealing with ALI, acknowledgment of our Vendor Code of Ethics is set as one of the accreditation requirements. The Internal Audit Division conducts vendor audits in accordance with the provisions of the Vendor’s Code of Ethics.

Anti-Corruption <GRI 205>
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 the policies and implemented best practices covering all entities and employees within ALI Group regarding anti-corruption. These include the following:

  • Code of Ethical Behavior for all employees;
  • Code of Ethical Procurement Conduct;
  • Vendor’s Code of Ethics;
  • Conflict of Interest Policy;
  • Whistleblowing Policy;
  • Establishment of ALI Business Integrity or Reporting Channels through: https://services.punongbayanaraullo.com/extdata/proactive.nsf/goto/aligroup;
  • Establishment of the ALI Ethics Committee; and the
  • 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.

Anti-Competitive Behavior <GRI 206>
We face considerable competition in our major business lines. As we expand our land bank and mixed-use developments, competitors similarly undertake massive expansion in all segments of the real estate industry. This is especially true for competitors that have significantly improved their capabilities and the quality of their products.
We recognize that practices that impede fair market competition affect economic efficiency and long-term industry growth. We are committed to comply with the policies of the recently instituted Philippine Competition Commission that monitors business entities for anti-competitive behavior such as collusion with potential competitors, monopolistic practices and price-fixing.

For further information on the stated policies, visit the Corporate Governance page.

ENVIRONMENTAL

Materials <GRI 301>
We are committed to using our construction materials judiciously, optimizing our plant resources and continuously innovating in order to avoid unnecessary wastage.

Energy <GRI 302>
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 the use of low-energy technology such as LED lights, motion sensors in common areas of new buildings, and retrofitting old ones, where appropriate, and management systems using intelligent energy-efficient equipment to control pumps, motors. Energy management programs are implemented across commercial properties to further ensure reduction in energy consumption.

Water <GRI 303>
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 and groundwater. We consistently monitor our water consumption and reduce water wastage through automatic irrigation systems use of efficient fixtures.

Biodiversity <GRI 304>
The company considers Philippine biodiversity and natural ecosystems as important resources that enhance the value and uniqueness of our developments. We abide by local and national Philippine law for biodiversity management. We identify native flora and fauna within the land or estate, and integrate our findings to create value for the project. This way, we conserve and protect indigenous biodiversity, integrating it into the business model, development plan, and operations.

Emissions <GRI 305>
We at Ayala Land are committed to reduce our greenhouse gas (GHG) emissions by embarking on a progressive plan for our commercial properties to become carbon neutral by 2022. The company plans to achieve this through a combination of strategies which include passively cooled spaces, use of renewable or clean energy sources, and forest protection and regeneration.

Effluents and Waste <GRI 306>
We are committed to diverting and reducing waste generated in our developments. To manage our waste efficiently, we avoid single-use materials in our commercial properties whenever possible and implement waste segregation at source to recover items that can be recycled or upcycled.

Ayala Land ensures that its properties and projects are properly connected to the wastewater treatment facilities of Manila Water and Maynilad, where possible. In areas which are not serviced, Ayala Land installs Septage Treatment Plants for proper treatment of waste water.

Environmental Compliance <GRI 307>
Ayala Land complies with all national and local laws and regulations, and voluntary standards on the environment. To ensure compliance, an environmental protection officer is assigned to each project site whose responsibility is to ensure that all environmental conditions and requirements are met. In instances where the Department of Environment and Natural Resources (DENR) issues notices that informs our projects of potential violations, ALI responds immediately to these notices and implements mitigation measures to avoid violating any environmental laws and regulations.

Supplier Environmental Assessments <GRI 308>
Our vendors are required to adhere to the Vendor Code of Ethics to ensure that their business operations are compliant with laws and regulations relating to labor, health and safety, environment, management systems, and business ethics. As part of the accreditation process, vendors are required to accomplish and submit the “Green Metrics” form that gathers data on the vendor’s compliance to environmental regulations, and inquire on their environmental management systems certification (ISO 14001). Practices of solid waste segregation and programs which manage environmental aspect hazards and sustainability reporting are among others that form part in the green metrics questionnaire.

SOCIAL

Employment <GRI 401>
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. Compensation and benefits are based on experience and contributions to the growth of the company. We also make sure to offer competitive industry rates to retain the best employees.

Labor Management Relations <GRI 402>
Our policies and practices for communication between management and employees include the following: open communication between management and employees, guidelines for regular townhall meetings, formal and informal grievance mechanisms, and an Organizational Climate Survey every two years.

Occupational Health and Safety <GRI 403>
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.

Training and Education <GRI 404>
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.

Diversity and Equal Opportunity <GRI 405>
Our practices are based on merits of candidates and reward employees according to their contribution to the growth of the company. We do not tolerate discrimination based on race, gender, age, and religious affiliation.

Non-Discrimination<GRI 406>
Our practices are based on merits of candidates and reward employees according to their contribution to the growth of the company. We do not tolerate discrimination based on race, gender, age, and religious affiliation.

Freedom of Association and Collective Bargaining <GRI 407>
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. Among the Ayala Land parent company and its subsidiaries, employees of Ayala Land parent alone are currently covered by collective bargaining agreements.

Child Labor <GRI 408>
Child labor has no place in Ayala Land. To this end, we carefully audit vendors and suppliers to make sure that they do not employ underage workers in their operations. In addition, we regularly audit our project sites to ensure that subcontractors and vendors we work with adhere to general labor standards.

Force or Compulsory Labor <GRI 409>
We uphold the elimination of all forms of forced and compulsory labor. Ayala Land provides the compensation and benefits mandated by national labor laws and our own performance incentives program. In a case of an erring employee, the firm does not put the person under threat of penalty, including penal sanctions and loss of rights and privileges.

Rights of Indigenous People <GRI 411>
Our due diligence processes ensure that our locational choices consider the rights of indigenous peoples living in areas of operation, in accordance with the Indigenous People’s Rights Act (IPRA) of the Philippines. ALI upholds indigenous people’s rights to ancestral lands and protection of indigenous cultures and traditions. 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.

Human Rights Assessment <GRI 412>
Human rights of employees and stakeholders of our value chain are protected through the company’s strict adherence to the Labor Code of the Philippines and other relevant laws protecting community rights.

Local Communities <GRI 413>
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 supports 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.

Customer Health and Safety <GRI 416>
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 enables us to monitor in our projects the implementation of proper design and operational procedures that ensure the safety of our customers.