Environmental Stewardship

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 access to the main transport hub in Ayala Center. These buildings are also conveniently situated near bus and jeepney stops along Ayala Avenue.  

The McKinley Exchange 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 Center is connected to the new One Ayala Center through an elevated covered walkway.

The One Ayala Terminal, which started operations in 2022, significantly improved the commuter experience going in and out of the Makati CBD. This terminal serves north/south-bound buses, AUVs, jeepneys, and offers a direct connection to MRT Ayala station. Situated 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. Measures are in place to promote the conscientious use of energy and water and the management of waste in these properties. 

Energy Management

Due to new acquisitions in 2021 and 2022, and the return to normal operations of the malls and offices, the total energy consumption within the organization futher rose to 45.8 million kWh, versus 28.5 million kWh in the previous reporting year. Similarly, energy consumption of leased areas increased by 2.76x to 122.6 million kWh from 44.4 million kWh in 2022.

To compare energy efficiency over time, electricity intensity in both common areas and tenant areas are measured in terms of kWh consumption per sq. meter of occupied floor area. Conforming to the overall increase in energy consumption, the energy intensity in 2023 also increased by 9% for common areas at 160.34, and 20% for tenant areas at 155.36. Water Management

Water consumption 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 on employees of tenants also contributed to these significant increases.

Total water consumption of 1.8 million cubic meters more than tripled compared to the previous year. In terms of water intensity, measured as cubic meter consumption per sq. meter of occupied floor area, common area intensity at 4.99 and leased area intensity at 0.50, increased by 61% and 14% from 202 levels, respectively.

To verify the resource efficiency performance of the properties, AREIT shall pursue green certifications for its properties. As of end-2023, 31% of its expanded office buildings portfolio in terms of GLA are LEED-certified.

AREIT aims to increase the share of green buildings in its portfolio by 2026. In September 2023, AREIT signed an agreement with International Finance Corporation (IFC) to signify its commitment to pursue IFC’s EDGE Zero Carbon Certification for 1.5 million square meters of AREIT’s commercial office buildings. EDGE provides a pathway to net zero through EDGE Zero Carbon, the highest level, by measurement and verification of efficient use of resources such as energy, water, and materials.

As of January 2024, eight office buildings with total gross leasable area of 354,000 square meters have been issued with EDGE Zero Carbon Certification making AREIT’s offices the largest EDGE Zero Carbon-certified portfolio in the Philippines.

The eight AREIT buildings awarded with EDGE Zero Carbon Certification were Glorietta 1 and 2 Corporate Center, Solaris One, McKinley Exchange Corporate Center in Makati, Vertis North Corporate Centers 1, 2, and 3 in Quezon City, and The 30th Corporate Center in Pasig on account of 45.33% improvement in energy efficiency, 49.07% in water, and 61.88% in embodied carbon material reduction.

AREIT supports its sponsor’s goal to achieve Net Zero targets by 2050 across all its commercial properties. It continues to look for opportunities to shift a greater proportion of its properties to renewable energy (RE) sources. 

Renewable Energy  

As of end-2023, 93% of AREIT’s buildings as measured in GLA are purchasing electricity from renewable sources. The proportion of building sourcing from RE has increased from 87% last year despite the increase in the assets in the portfolio. As a result, the share of renewable energy in the energy mix rose to 97% from 80% in 2022, with the increase in consumption from offices and facilities sourcing from RE.Emissions

Aligned with its Sponsor’s carbon neutrality achievement, AREIT has achieved carbon neutrality status in 2021, one year ahead of its goal and verified by a third-party. Gross emissions in 2023 totaled 36,175 t-CO2e. Through the sponsor’s two main carbon neutrality strategies of renewable energy sourcing and restoring carbon sinks or carbon forests, AREIT has reduced and offset its emissions by 35,826 t-CO2e and 889 t-CO2e, respectively, resulting in net-zero scope 1 and 2 emissions from fuel and electricity use.

Emissions intensity of 4.19 measured in terms of scopes 1 to 3 operational emissions per sq. meter of occupied floor area, also decreased by 75% largely due to the reduction of emissions from renewable energy use.

Solid Waste 

AREIT has embarked on the adoption of a circular approach to waste management, in line with its sponsor’s practice. With the help of Ayala Property Management Corporation (APMC), waste generated by AREIT’s properties are sent either to recyclers or to the landfill.

As of end-2023, efforts of waste diversion has increased resulting to an amount of 1,146 tonnes of waste diverted from the landfill and sent to recyclers, ecohubs or composted. Total waste generated increased by 3.6x the 2022 levels to 4.39 million kg due to the higher number of properties included in the reporting scope as well as increased on-premises commercial activities.

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. 

 Types of hazardous waste generation increased significantly in 2023 due to the increase in the number of properties coupled with increased commercial activities in the malls and tenant employees going back to the offices. Operations and maintenance activities also ramped up in 2023 with the normalized operating hours and increase in foot traffic.