The 2021 Ayala Integrated Report (IR) provides a comprehensive view of the way we integrate our values into our business. It demonstrates how we live up to our purpose of creating meaningful impacts on the economy, the environment, and the communities we affect.

This IR is a testament to Ayala’s long-term commitment to sustainability. We are proud of our climate ambition, signifying Ayala Corporation’s commitment to net-zero greenhouse gas emissions by 2050. This initiative will further weave sustainability into our businesses and include our stakeholders in shaping relevant outcomes.

Our Value Creation section opens with the sustainability journey map, which shows the factors that define our shared values and how they work together to engage our stakeholders. This section shares our disclosures on environmental, social, and governance (ESG) matters to illustrate how our non-financial management strategy complements our financial strategy and underscores our commitment to be a responsible organization across all levels.

We continue to report on our performance against the Ayala Sustainability Blueprint as we rise to the challenge of Bridging the Filipino to 2030. This Blueprint is our guide to contribute meaningfully to the UN Sustainable Development Goals (SDGs). Our ESG and SDG disclosures exemplify how the Ayala Group’s bold leadership and shared vision enable us to shape a better and more sustainable world for our stakeholders.

We continue to review and align our Sustainability Reporting Framework with emerging issues and the evolving interests of stakeholders through our materiality assessment process. An in-depth look at Ayala Corporation’s performance determines whether we have made meaningful and inclusive contributions on the economic, social, and environmental landscapes of the country.

This report constitutes a companywide, group-wide effort built through the cooperation and collaboration among the different business units across Ayala. Our Investor Relations and Risk Management and Sustainability teams reviewed all information in this report. The Board of Directors approved this report for publishing.

REPORTING SCOPE

This integrated report provides detailed information on the consolidated financial, economic, environmental, social, and governance performance of the parent company and across our business units from January 1 to December 31, 2021. Notes and further explanations accompany the text and tables of our performance indicators when necessary. The report includes relevant disclosures on business development from our unlisted subsidiaries and affiliates.

Additional references for specific stakeholders are available at www.ayala.com.

REPORTING STANDARDS

Our report is a harmonization of various frameworks and standards. We follow the Global Reporting Initiatives (GRI) Standards and Sustainability Accounting Standards Board (SASB). We also highlight our progress against the Task Force on Climate-Related Financial Disclosures (TCFD), which we began in 2019.

Moreover, as a founding member of the Global Compact Network Philippines, we further align with UNGC’s 10 Principles.

We also disclose our progress against the targets we have set to the SDGs that are in our Ayala Sustainability Blueprint.

For more details about the various frameworks referred to, check
www.integratedreporting.org,
www.globalreporting.org,
www.sasb.org,
www.unglobalcompact.org,
www.fsb-tcfd.org and
www.wbcsd.org

The TCFD disclosure of Ayala Corporation can be found on link

OUR APPROACH TO EXTERNAL ASSURANCE

Our Board’s Audit Committee is mandated to review and approve the audit, audit-related, and non-audit services from external auditors. It provides oversight on the performance of external and internal auditors.

OUR FINANCIAL STATEMENTS

SyCip Gorres Velayo & Co., a member firm of Ernst & Young International Ltd, is the external auditor of the company’s financial statements, with Lucy Lim Chan as the partner-in-charge. The audit partner principally handling the company’s account is rotated every five years in accordance with Securities and Exchange Commission (SEC) regulations.

More information about our audit process is found on link. For Management Discussion and Analysis of Financial Condition and Results of Operation, go to link

ON OUR SUSTAINABILITY PERFORMANCE

DNV, an independent organization and global provider of certification, assurance assessment, and training services, validated the figures and information related to our sustainability performance. The group-wide assurance process was done in two phases, which included interviews with executives and discussions with related departments from the different business units. Both phases of the assurance were done remotely in accordance to regulations and protocols on COVID-19.

The full Independent Assurance Statement is on link