Oct 25, 2021 – Together with the Ayala group, ACEN is committing to achieve net zero greenhouse gas emissions by 2050, as announced by its Chairman Fernando Zobel de Ayala during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit held Thursday, Oct 21, 2021.
“As Ayala’s concrete contribution to the well-being of future generations of Filipinos, we are announcing our commitment to achieve net zero greenhouse gas emissions by 2050. We are aligning ourselves with the global movement for climate action as our way to help secure our country’s future from the threats brought by climate change. We believe that we have the capabilities and collective will to make this happen,” Zobel said.
ACEN has announced its commitment to net zero greenhouse gas emissions to limit global warming by 1.5 degrees by 2050, supported by key milestones that will help accelerate its energy transition:
- Transitioning the company’s generation portfolio to 100% renewable energy by 2025
- ACEN management to use the Energy Transition Mechanism (ETM) for the early retirement of its remaining coal plant, South Luzon Thermal Energy Corporation by 2040, 15 years ahead of its technical life.
The ETM is an innovative funding mechanism that leverages low-cost and long-term funding geared towards early coal retirement and reinvestment of proceeds to enable renewable energy. BPI Capital Corporation will be the lead arranger for the ETM for SLTEC.
“Being at the forefront of the energy transition goes hand in hand with our commitment to Net Zero,” said Eric Francia, President and CEO of ACEN. “We will work closely with the Ayala group and continue to collaborate with our stakeholders as we carry out this important journey,” adds Francia.
ACEN and the Ayala group partnered with South Pole, a leading project developer and global climate solutions provider that works with private organizations and governments worldwide. This partnership enables the group to have an accurate view of emissions across its core business units and a tangible roadmap for reducing them in line with its net zero by 2050 ambition. In the next 12 months, ACEN and South Pole will:
- Develop a detailed greenhouse gas footprint that includes all relevant Scope 3 emissions from the value chain, which is considered net zero best practice
- Assess potential emission reduction activities and strategies to help ACEN prioritize and budget for these interventions across its core business units, ensuring practical steps are taken to reduce emissions as quickly as possible
- Establish interim targets aligned with a science-based 1.5°C pathway across the core business units to ensure ACEN has robust and measurable milestones along its journey to net zero by 2050
ACEN has been working with many different initiatives such as the Council for Inclusive Capitalism Just Energy Transition in collaboration with the Boston Consulting Group, global energy and energy-intensive companies (Anglo American, bp, Eni, Reliance, Repsol and SSE), academic, investor, civil, and social representatives CalPERS, Grantham Research Institute, Inclusive Capital Partners, International Trade Union Confederation, State Street, and the UN Special Envoy for Climate Action and Finance. ACEN is also a signatory to the Taskforce on Climate-related Financial Disclosures (TCFD) and is currently implementing the 11 recommended disclosures.
For governance, ACEN management recently set up a board-level sustainability committee. The company has successfully rolled out its Environmental and Sustainability Policy since 2020, integrating sustainability in the decision-making on strategy, capital allocation, business development, product development, and operations.