Ayala Land is committed to contributing meaningfully to global climate resilience and has set a science-based pathway to achieve Net Zero Greenhouse Gas (GHG) emissions by 2050. Our Net Zero Roadmap reflects nearly two decades of continuous advancements in carbon management—from early footprint assessments to deep decarbonization across Scopes 1, 2, and 3.
Our roadmap is anchored on four pillars: Renewable Energy Transition, Energy & Resource Efficiency, Low Carbon Materials & Circularity, and Nature-based Carbon Removal, guided by a governance structure aligned with TCFD and the SBTi Net Zero Standard.
The “Carbon Neutrality 2022” initiative was launched in 2017 with the aim to reduce Scope 1 and 2 emissions across its commercial properties. This involved shifting to renewable energy sources through power purchase agreements bundled with quality Renewable Energy Certificates (RECs). Additionally, Ayala Land initiated forest carbon projects in its private properties to remove emissions from the atmosphere, offsetting the impact of Scope 1 emissions.
By 2022, the program had succeeded in shifting 91% of commercial properties’ gross leasable area (GLA) to renewable energy sources or power accompanied by quality RECs. Additionally, four out of six carbon forest projects produced 8,732 tCO2e credits. This contributed towards a reduction in Scope 1 & 2 emissions to 14% of business-as-usual levels. With most of its leasing properties already operating with clean energy, the company was ready for the next phase of its decarbonization journey: the reduction of emissions in its supply chain, (Scope 3).
Ayala Land began assessing its carbon footprint as early as 2007 and has since implemented progressive measures to reduce resource consumption through design improvements, efficient technologies, and cultural shifts in operations. The company strengthened its decarbonization commitments by setting targets in 2017 and updating them in 2021 to align with evolving global climate science.
In 2021, the Ayala Group made a pivotal commitment to achieve Net Zero Greenhouse Gas (GHG) emissions by 2050, along with its sister companies, reducing Scopes 1, 2 and 3 emissions to zero by 2050. This aligns with the imperative to limit global warming to 1.5°C through rapid and deep emission reductions. To set credible targets, Ayala Land’s Strategic Business Units (SBUs) contributed to the baseline of the company’s GHG inventory for Scope 1, 2 and 3. The Net Zero Task Force, comprising sustainability leaders and key stakeholders from Ayala Land’s various businesses and overseen by the corporate sustainability unit, identified key “hotspots” sources and developed initial interventions.
This initiative culminated in 2022 with a comprehensive assessment of Ayala Land’s operational and supply chain emissions hotspots. The company finalized a high-level net zero roadmap with SBTi-aligned targets for 2030 and 2050, and ambitious adoption rates verified by the South Pole Group, a global decarbonization consulting firm. The Net Zero Task Force identified additional interventions in 2023, conducting pre-feasibility studies and engaging with members of Ayala Land’s supply chain, most notably its steel, cement and Polyvinyl Chloride (PVC) suppliers.
The baseline revealed that 95% of Ayala Land’s emissions footprint came from Scope 3 sources, with “purchased goods and services” as the primary contributor, encompassing materials such as steel, cement and PVC. As experienced by many companies on the net zero journey, achieving net zero emissions presents significant challenges, requiring advancements in technology and supportive policy frameworks. Ayala Land is committed to prioritizing cost-neutral and readily available technologies to mitigate emissions, leveraging the coming years to implement changes and collaborate with supply chain partners to transition towards a renewable energy future conducive to achieving net-zero emissions.
In 2024, the Science Based Targets initiative (SBTi) validated that the science-based greenhouse gas emissions reduction targets submitted by Ayala Land conform with the SBTi Corporate Net Zero Standard and classified our company’s scope 1 and 2 target ambitions as in line with the 1.5°C trajectory.
Key science-based commitments include:
Overall Net Zero Target: Ayala Land commits to reach net-zero greenhouse gas emissions across the value chain by 2050
Near-Term Targets: Ayala Land commits to reduce absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2021 base year. Ayala Land also commits to reduce absolute scope 3 GHG emissions 29.4% within the same timeframe. The target boundary includes land-related emissions and removals from bioenergy feedstocks.
Long-Term Targets: Ayala Land commits to reduces absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2021 base year. Ayala Land also commits to reduce absolute scope 3 GHG emissions 90% within the same timeframe. The target boundary includes land-related emissions and removals from bioenergy feedstocks.
In 2024, SBTi verified Ayala Land’s science-based net-zero emissions reduction targets for the near and long term.
Near-Term Targets | Long-Term Targets | ||
| Reduce absolute scope 1 and 2 GHG emissions by 42% by 2030 from a 2021 base year*. | Reduce absolute scope 3 GHG emissions by 29.4% by 2030 from a 2021 base year*. | Reduce absolute scope 1 and 2 GHG emissions by 90% by 2050 from a 2021 base year*. | Reduce absolute scope 3 GHG emissions by 90% by 2050 from a 2021 base year*. |
Net-zero GHG emissions across the value chain by 2050 | |||
| *The target boundary includes land-related emissions and removals from bioenergy feedstocks. | |||
Aside from Net Zero and Circular Economy targets, we have also set 2030 targets for the following:
Aside from shifting the properties to renewable energy sources, the business units and project development leads identified additional interventions that were implemented in 2023 and 2024. This included conducting feasibility studies on readily available technologies to mitigate emissions and engaging with supply chain partners, most notably its steel, cement and PVC suppliers.
After the initial calculation of Ayala Land’s GHG emissions in 2021, the annual emissions inventory is calculated and monitored internally. Scopes 1 and 2 were based on actual data while scope 3 categories were forecasted based on the assumed growth rates of Ayala Land’s business operations.
To better view our net zero progress and align our performance with the company’s science-based net-zero emissions reduction targets for the near and long term, Ayala Land conducted a review of its total GHG emissions in 2024. This was conducted through a thorough inventory and data collection of the company’s Scope 1, 2, and 3 emissions from all activities across the business lines from 2021 to 2024. Ayala Corporation spearheaded the engagement of South Pole to remeasure and recalculate GHG emissions based on its actual business and operational activities of the Ayala Group.
The table below summarizes the restated results of the 2022-2025 emissions accounting.
Notes:
1. Emission calculations for 2021 to 2024 are based on actual operational data or spend data from across the organization, including Biogenic CO2.
2. Land Use Change (LUC) emissions under Forest, Land and Agriculture are Ayala Land internal calculation based on GHG Protocol Land Sector and Removals Guidance (Draft for Pilot Testing and Review, September 2022).
3. Scope 3 under categories of upstream leased assets, downstream transport, processing of sold products and franchises are not applicable to Ayala Land’s operations.
In 2025, our total emissions stood at 2.68 million tCO2e, representing 9.7% reduction from the 2021 base year. Combined scopes 1 and 2 emissions in 2025 of 44,665 tCO2e represent a 69% reduction from the original 2021 base-year emissions. On the other hand, scope 3 emissions totaling 2.63 million tCO2e represent an 8% reduction from the original 2021 base-year emissions.
We continue to advance our science-based decarbonization pathway in 2025, maintaining robust governance and GHG accounting aligned with the GHG Protocol. We have made strong progress against its 2021 baseline. By year-end 2025, we achieved a 69% reduction in combined Scope 1 and 2 emissions, reduced its emission intensity by 83%, and transitioned 98% of its total GLA in malls, offices, and hotels to renewable energy.
Direct emissions (Scope 1) declined by 61% year-on-year, driven by fleet electrification, expansion of EV charging stations across 64 properties, shifting 6 project sites to renewable energy, connecting 99 project sites to the electricity grid for power requirements, and preparations for a low-GWP refrigerant mandate beginning in 2026. Scope 2 emissions fell by 49% compared to 2024, driven by chiller plant optimization, energy‑efficiency upgrades, and the continued growth of green-certified developments.
Scope 3 emissions account for the largest share of our carbon footprint, and our efforts are centered on four high‑impact categories. In purchased goods and services, increased use of low‑carbon “Green Rebars” contributed to a 10% reduction in Category 1 emissions. For the use of sold products, the company facilitated renewable energy purchasing for unit buyers and strengthened sustainability requirements through updated Master Developer’s Deed of Restriction provisions. For downstream leased assets, 97% of tenant electricity is sourced from renewable or clean power, and foundational work has begun to enable future market‑based reporting by retiring Renewable Energy Certificates (RECs). Fuel‑ and energy‑related activities are expected to decline further as alternative fuel programs and REC‑based initiatives scale.
Ayala Land’s 2025 performance underscores the decoupling of business growth from emissions. In 2026, the company will prioritize finalizing its REC retirement framework for tenants and scaling its green procurement policies to cover all major construction materials, further embedding Net Zero as an operational commitment reflected in the key result areas and performance management of our business units and sustainability leads.
Ayala Land’s decarbonization journey shows the company’s continued commitment to responsible development and sustainable operations throughout the organization.
| Date | Milestone and Details |
|---|---|
| December 2016 | Management approves Carbon Neutrality pathway for Scopes 1 and 2 |
| September 2019 | Carbon Forests’ complete stock assessment and measurement undertaken by Center for Conservation Innovations (CCI PH) |
| November 2021 | Ayala Group committed to be Net Zero Working Groups |
| March 2022 | Sustainability unit organized Net Zero Working Groups |
| August 2022 | Completed baseline (2021) GHG inventory (Scope 1, 2 and 3 with consultant South Pole Group |
| November 2022 | Set SBTi-aligned 2030 & 2050 targets and identified initial interventions to decarbonize |
| December 2022 | Finalized high-level (Ayala Land parent level) Net Zero (NZ) roadmap and organized NZ Task Force (NZTF) to close the remaining emissions gap |
| January 2023 | Assigned NZTF cluster leads to ensure buy-in of business units and supply chain |
| February to July 2023 | Carbon Forests complete remeasurement and verification by Center for Conservation Innovations Philippines (CCI PH) and Carbon Check India (CCI) |
| April 2023 | Re-engaged consultant South Pole Group to assess emissions reduction of new interventions |
| July 2023 | Forest carbon stock and carbon removals from four (4) CF sites were determined and verified |
| May to November 2023 | SBUs thru NZTF submitted new interventions and revised adoption rates of existing ones; scheduled SBTI assessment (March 2024) |
| July, September, October and December 2023 | Completion of Rounds 1 to 4 net zero assessment reports |
| September 2024 | The Science Based Targets Initiatives (SBTI) verified Ayala Land Inc’s science-based net-zero emissions reduction targets for the near and long term |
| 2025 | Annual targets were set aligned with the Net Zero Roadmap Ayala Land advanced its emissions reduction efforts through key decarbonization programs. |
