Joint Message from the Chairman and the President

Fellow stakeholders:

Ayala’s sustainability management approaches are at the core of our strategy and operations.

In 2013, we defined our group’s 360o Sustainability Framework. As we review the past year, our sustainability programs are firmly in place, our standards for measuring and reporting on our performance continue to improve, and our commitment to help strengthen the physical
and social infrastructure of our country remains steadfast.

All these have transformed our products and services into mechanisms for sustainable and inclusive growth.

With the view of sustainability as a driver for innovation and growth, we have expanded the way we define it by embracing the concept of Creating Shared Value. For decades, we have dedicated ourselves to building a stronger business house that values society’s welfare and environmental conservation in equal terms with profit. Our continued growth as a group speaks of the power of this ideal. We plan to forge ahead and discover more business models that will directly address our society’s biggest challenges.

To frame all these on a larger scale, we present our shared value stories in this report guided by the United Nations Sustainable Development Goals.

These have set a clear and concise global benchmark that will enable wider collaboration across all sectors to work for a world that is not only sustainable, but also just, equitable, and inclusive. We are, therefore, eager to align our industries and sustainability goals with these global targets, in partnership with the government and a more engaged stakeholder base.

Creating Inclusive Wealth

Ayala’s vision and core values aim to leverage our financial capital to support nation building. Our investments, as discussed in detail in this report, are largely made in the Philippines, and in sectors that promote inclusivity and an appreciation of diversity and cooperation. We are inspired by our nation’s history and our sense of origin and place, and so we intend to continue growing in a manner that advances the progress of more communities.

We have covered more ground across the Philippines and developed new estates that will replicate the success of our Makati, Bonifacio Global City, and Nuvali projects. In these new developments, we also opened up spaces for gardens and parks, constructed pedestrian networks, and encouraged the growth of more enterprises across our supply chains.

Our growth strategies in telecommunications and energy also create economic value for society at large. By modernizing our telecommunications infrastructure, we improved its resilience to hazards and other threats, thereby ensuring the connectivity of Filipinos. Our energy business, meanwhile, continued to explore both conventional and renewable sources to support economic growth.

We also provide financial services for investments that catalyze economic activity in the countryside, mainly in wholesale and retail trade, agriculture, manufacturing, and real estate. These boost growth and flow of economic value between urban centers and rural areas.

Enabling and Empowering Our Communities

We recognize that access to affordable healthcare, clean water, quality education, and financial services continue to be a challenge to many Filipinos. In our effort to serve the broader needs of society, we as a group have risen to the challenge by further honing the social dimensions of our businesses.

We have expanded our water and used water services to more areas. In financial services, we have enabled more people in lower-income groups to save and invest. Our telecommunications and social commitment arms continue to work in unison to enhance the learning skills of more grade-school students through strategic educational interventions. Our education business has provided quality education to thousands of students in Metro Manila.

By understanding the key drivers of employee engagement, we ensure that our employees work in a rewarding environment and are empowered and energized.

Innovating for the Planet

In the same manner that we approach economic and social value creation, we also continue to innovate our business models to generate both environmental and financial benefits. For instance, our sustainable energy financing program helps mitigate climate change while driving profit for both our bank and its loan recipients.

Throughout our operations, we ensure wise use of resources, proper management of waste, and the protection of biodiversity. In our real estate business, we aim to minimize our environmental impact by building seamlessly with nature. These practices are good for the environment and ensure the long-term viability of our businesses.

We are strengthening our crisis management and business continuity plans across our group to implement crucial decisions and ensure the safety of our employees and facilities.

Moving Forward in Sustainability

In the coming years, we are advancing our brand as one of the Philippines’ most diversified shared value enterprises by strengthening our core lines to create business solutions to our most critical societal challenges.

We explore meaningful partnerships with the public sector to improve physical infrastructure necessary to national development. We recently opened the Muntinlupa-Cavite Expressway, the first public-private partnership toll road project awarded under the flagship infrastructure program of the current administration.

In addition, we are expanding our investment horizons for inclusive education beyond the capital. In 2015, we secured an interest in the University of Nueva Caceres, the oldest tertiary-level educational institution in southern Luzon.

We have also entered the healthcare sector, including pharmaceutical retail, technology-enabled services, and hospitals and multi-specialty clinics nationwide.

As we seize opportunities for growth, we build on past gains and maintain our leadership position by continuing to innovate and evolve.

As we continue to embed sustainability across the group, we see fit to appoint a principal Sustainability Officer in each of our subsidiaries with mandate to set sustainability strategies and targets, facilitate implementation, monitor, and report on our performance.

Finally, we cannot advance without strengthening and widening our pathways toward collaboration and so we invite all our stakeholders to walk with us on this journey. We are keen to hear from you at sustainability@ayala.com.ph.

 

JAIME AUGUSTO ZOBEL DE AYALA                          FERNANDO ZOBEL DE AYALA
Chairman and Chief Executive Officer                      President and Chief Operating Officer

  • Real Estate
  • Water Infrastructures
  • Energy
  • Social Commitment
  • Financial Services
  • Electronic Manufacturing
  • Transport Infrastructure
  • Telecommunications
  • BPO and Education
  • Automotive