Environmental Stewardship
Environmental Stewardship
AREIT fully aligned itself with its Sponsor’s sustainability principles, exemplified by its Four Focus Areas and integrated into the operations of the properties. Moreover, AREIT is committed to reducing its carbon emissions, in line with the Net Zero 2050 targets of Ayala Land.
Most of AREIT’s properties are strategically located in the mixed-use, integrated, and sustainable estates of Ayala Land enabling accessibility to commuters and pedestrians.
In the Makati CBD, Ayala North Exchange and Solaris One are seamlessly connected to the estate’s elevated walkway and underpass network, providing direct access to the main transport hubs in Ayala Center. These buildings are also conveniently situated near bus and jeepney stops along Ayala Avenue.
The McKinley Exchange Corporate Center, strategically located at the intersection of Ayala Avenue and EDSA (Epifanio de los Santos Avenue), serves as a key location linking the northern and southern sections of Metro Manila. Located at the northbound side of EDSA, it features a terminal for public utility vehicles going into Bonifacio Global City (BGC) in Taguig, serving as a main entry point into BGC. Additionally, McKinley Exchange Corporate Center is connected to the new One Ayala center through an elevated covered walkway.
The One Ayala Terminal, operational since 2023, significantly improved the commuter experience going in and out of the Makati CBD. This terminal serves north- and south-bound buses, AUVs, jeepneys, and offers a direct connection to MRT Ayala station. Located at the strategic corner of EDSA and Ayala Avenue, the terminal facilitates seamless connectivity for thousands of commuters daily.
Teleperformance Cebu is located within the 27-hectare Cebu I.T. Park, strategically positioned near Ayala Land’s Central Bloc mixed-use development, which currently hosts a mall, a Seda hotel, and two office towers.
AREIT properties adhere to Ayala Land’s principle of resource efficiency, implementing measures to promote the conscientious use of energy and water and the management of waste.
Energy Management
Electricity conservation in the properties remains a priority to manage the overall increase in consumption and costs of electricity.
With the new acquisitions and the return to normal operations of the malls and offices, the total electricity consumption rose to 228.7 million kilowatt-hour (kWh), compared to 163.8 million kWh in the previous reporting year.
The overall energy intensity in 2024 also increased by 15% for whole building electricity consumption.
Water Management
Water withdrawal of properties also saw a significant growth, consistent with the increase in the number of properties managed. The rebound of mall operations and return-to-office mandate for tenants also contributed to these significant increases.
Total water withdrawn of 2.7 million cubic meters was a 47% increase compared to the previous year. Water intensity, measured as cubic meter withdrawal per square meter (sqm) of occupied floor area, was at 4.66 for common areas, and 1.08 for leased areas.
Water conservation programs across all properties included the upgrade of fixtures to eco-efficient models and retrofit for water re-use and recycling.
AREIT supports its Sponsor’s goal to achieve Net Zero targets by 2050 across all commercial properties. The company continues to seek opportunities to shift its properties to renewable energy (RE) sources under the Green Energy Option Program (GEOP) and to reduce fuel consumption within and outside the organization contributing to GHG emissions reduction.
Renewable Energy
As of the end of 2024, 99% of AREIT’s total gross floor area (GFA) of commercial property buildings purchsed electricity from renewable energy sources or accompanied by quality RE certificates (RECs). Consequently, 90% of the total 228.7 million kWh electricity consumption was from renewable energy sources. 94% of AREIT’s common area electricity consumption of 92.28 million kWh was derived from renewable energy sources or accompanied by RECs.
Emissions
Aligned with its Sponsor’s Net Zero targets, AREIT aims to reduce greenhouse gas emissions for Scopes 1, 2 and 3 across its operations.
In 2022, an inventory of the emissions was completed with a 2021 base year, assisted by third-party consultant South Pole. Strategies and action plans to achieve near-term and long-term GHG emission targets were identified by the different business units. The Net Zero roadmap was completed in 2023, and in 2024, Ayala Land received validation of its Net Zero targets from the Science Based Target initiative (SBTi).
In 2024, net GHG emissions from AREIT operations was reduced by 91% down to 17,637 tCO2e with reductions largely due to the shift of properties to renewable energy.
Total net GHG emissions from Scope 2 and 3 is at 13,947 tCO2e. Consistent with the increase in the growth of the business, emissions intensity measured as emissions from Scope 2 and 3 per sq. meter of occupied are has significantly increased.
AREIT continues to prioritize shifting to renewable energy sources and collaborates with its tenants and locators on decarbonization programs.
Solid Waste
AREIT has adopted a circular approach to waste management, in line with its Sponsor’s practice. With assistance from Ayala Property Management Corporation (APMC), waste generated by AREIT’s properties is either recycled, composted, or sent to the municipal landfill.
Total waste generated increased by 47% from 2023 levels to 6.5 million kg due to higher number of properties included in the reporting scope as well as increased on-premises commercial activities. As of the end of 2024, waste diversion efforts resulted in 2.88 million kg of waste diverted from landfills, equivalent to 45% of total waste generated for the year.
AREIT’s goal is to reduce waste in both common areas and tenant/merchant areas as well as divert waste from landfills through different strategies including composting and partnering with service providers that effectively reuse or recycle waste.
Hazardous Waste
AREIT, through APMC, complies with the requirements of proper hazardous waste management in accordance with Republic Act 6969 (Toxic Substances and Hazardous and Nuclear Waste Act of 1990) and Department of Environment and Natural Resources (DENR) Administrative Order 2013-22 (Revised Procedures and Standards for the Management of Hazardous Wastes).
AREIT’s properties have designated hazardous wastes storage rooms and DENR-controlled Hazardous Wastes Generators’ ID Numbers. All hazardous waste generated from these properties is transported and treated by DENR-accredited vendors.
Under the Bantay Kalikasan program of the ABS-CBN Lingkod Kapamilya Foundation, Inc. (ALKFI), used lead acid batteries, industrial oil, and waste electronic and electrical equipment are recycled, with proceeds from the sale of these materials donated to ALKFI for their reforestation programs. Other hazardous wastes are transported and treated by DENR accredited transporters and disposal facilities. For every treated waste, a Certificate of Treatment is provided by haulers as proof of proper disposal and is reported by APMC to DENR.
Hazardous waste generation was managed in 2024 despite the increase in the number of properties and increase in commercial activities in the malls and offices.
To verify the resource efficiency performance of the properties, AREIT shall pursue green certifications for its properties. The company aims to increase the share of green buildings in its portfolio by 2026. Currently, 63% of its expanded office buildings portfolio, in terms of gross floor area, have secured certifications from International Finance Corporation’s (IFC) Excellence in Design for Greater Efficiencies (EDGE) or US Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED).
In September 2023, Ayala Land and AREIT signed an agreement with IFC to signify its commitment to pursue IFC’s EDGE Zero Carbon Certification for 1.5 million sqm of commercial office buildings. EDGE provides a pathway to net zero through EDGE Zero Carbon, the highest level, by measuring and verifying the efficient use of resources such as energy, water, and materials.
As of the end of 2024, AREIT has received IFC EDGE Certification for 20 office buildings with a GFA of 802,000 sqm. Among these buildings, 14 are EDGE Zero Carbon-certified, while the remaining six are EDGE Advance certified and on track to achieve EDGE Zero Carbon certification by the end of 2025.
Ayala Land and AREIT aim to secure EDGE Zero Carbon certification for an additional 700,000 sqm of GFA, striving to meet their goal of certifying 1.5 million sqm by 2025.
One Evotech and Teleperformance Cebu are also USGBC LEED-certified. This brings the number of properties under the AREIT portfolio that have green certifications to 22, with a total GFA of 849,818 sqm.