BUILDING THE FUTURE, SUSTAINING
EXCELLENCE
AYALA CORPORATION 2024 INTEGRATED
REPORT
Joromo, Michaela Janice P.
Lagaras, Leigh Issabelle Y.
Lapitan, Rose Marianne F.
Malapit, Larabel D.
Mercado, Gabrielle Anne P.
Plecis, Glenn Bea L.
Sediarin, Joel Jr. S.
Toribio, Jenna Vee G.
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INTRODUCTION
The Ayala Corporation released its 2024 Integrated Report titled "Building the
Future, Sustaining Excellence", which provides a comprehensive overview of the company's
financial performance and highlights its sustainability efforts, focusing on its economic,
environmental, and social performance.
Through this report, stakeholders gain insights into the corporation’s strategic
initiatives, financial performance, environmental stewardship, and social impact, reflecting
Ayala’s vision to build a better future through innovation, integrity, and inclusivity.
This report provides an overview of Ayala Corporation's performance and milestones
for the period of January 1 to December 31, 2024, through strategic, financial, and
sustainability lenses. It adheres to the International Integrated Reporting Framework and
was developed with reference to the Global Reporting Initiative (GRI) Standards, as well as
the standards set by the International Sustainability Standards Board (ISSB).
With impressive results from its core businesses in banking, real estate,
telecommunications, and energy, as well as the quick expansion of new divisions in digital
finance, health, and logistics, 2024 was a turning point for Ayala. By increasing sustainable
financing, investing in innovation, and speeding up its net-zero transition, Ayala was able to
achieve resilient growth in spite of rising inflation and global uncertainties. Its diverse
portfolio provided value through social investments, community development initiatives, and
environmental stewardship programs in addition to revenues and earnings.
COMPANY’S PROFILE
Ayala Corporation, founded in 1834 by Domingo Róxas and Antonio de Ayala, is
considered the oldest and one of the most influential business conglomerates in the Philippines.
What started during the Spanish colonial era as a modest trading and agricultural enterprise
gradually evolved into a diversified group that has shaped much of the country’s economic and
industrial landscape.
Over the years, Ayala Corporation expanded its presence across several key industries.
Its core businesses include banking and financial services through the Bank of the Philippine
Islands (BPI), telecommunications through Globe Telecom, and real estate development
through Ayala Land. The company also plays a major role in infrastructure and utilities, most
notably through Manila Water, while strengthening its renewable energy portfolio under AC
Energy. More recently, Ayala has ventured into healthcare, logistics, industrial technologies, and
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education—demonstrating its ability to adapt to changing market needs and its commitment to
supporting national development.
Apart from its financial strength, Ayala Corporation has built a reputation for good
governance, corporate social responsibility (CSR), and sustainability. It has been at the forefront
of modern urban planning, with Makati City standing as a landmark example of its vision for
integrated development. Its initiatives in clean energy, water conservation, and digital
connectivity further show its effort to balance profitability with long-term solutions to social and
environmental challenges, in line with global sustainability goals.
Nearly two centuries since its founding, Ayala Corporation remains one of Southeast
Asia’s most respected conglomerates. Its history reflects not only resilience and adaptability but
also a tradition of leadership in shaping Philippine business and society. Today, it continues to
influence the direction of industries while contributing to nation-building through innovation,
inclusivity, and sustainable growth.
KEY SUSTAINABILITY INITIATIVES
Ayala Corporation has long recognized that business growth must go hand-in-hand with
social responsibility and environmental stewardship. Guided by the Ayala Sustainability
Blueprint 2030, the company embeds sustainability into its long-term strategy, ensuring that
value creation benefits not only shareholders but also communities and the environment. Its
programs are anchored on three pillars: productivity and competitiveness, accessibility and
inclusivity, and responsible growth and resilience.
Environmental Sustainability
· Renewable Energy Transition: Through ACEN, its energy arm, Ayala has
committed to expanding renewable energy investments, targeting 100%
renewable generation by 2025 and achieving net-zero greenhouse gas
emissions by 2050.
· Water Security: Manila Water continues to adopt sustainable water
practices such as watershed protection, wastewater treatment, and
expanding access to clean and affordable water, particularly for underserved
communities.
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Social Development
· Healthcare Access: Through AC Health, Ayala provides affordable and
accessible healthcare services via Generika drugstores, Healthway clinics,
and emerging digital health platforms.
· Inclusive Education: The company also supports education through
initiatives like the Ayala Foundation’s CENTEX schools, which deliver quality
learning opportunities to children from disadvantaged backgrounds.
Corporate Governance and Ethical Practices
· Ayala integrates ethical standards into all aspects of its operations,
adhering to strict governance, transparency, and accountability frameworks.
· It also tracks and reports its Environmental, Social, and Governance (ESG)
performance to maintain credibility with both local and international
stakeholders.
Community Engagement and Nation-Building
· The Ayala Foundation leads programs in culture, education, and
community development to foster civic participation and social cohesion.
· During the COVID-19 pandemic, Ayala companies pooled resources to
assist government and community efforts by providing medical facilities,
financial aid, and digital solutions to sustain essential services.
These initiatives highlight Ayala Corporation’s view of sustainability not as an add-on, but
as an integral part of its corporate identity and long-term vision. By addressing environmental
concerns, improving access to basic services, and upholding strong governance, Ayala
positions itself as a key driver of inclusive and sustainable development in the Philippines and
across Southeast Asia.
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ASSESSMENT OF REPORTING PRINCIPLES
Ayala Corporation's reporting principles are characterized by transparency,
accountability, and a commitment to sustainability, aligning with global standards like the Global
Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task
Force on Climate-related Financial Disclosures (TCFD). The company provides financial,
operating, and strategic information to regulatory authorities and maintains a robust corporate
governance framework to ensure sound decision-making and foster trust among stakeholders.
Ayala's integrated risk management system and active engagement with the UN Global
Compact further demonstrate its comprehensive approach to responsible business and
reporting. Ayala's reporting integrates multiple global standards, including GRI, SASB, and
TCFD recommendations. The company is committed to providing stakeholders with clear and
timely information through various disclosures, fostering trust and accountability in its
operations. Ayala emphasizes its progress against UN Sustainable Development Goals (SDGs)
and integrates climate-related financial disclosures, highlighting its dedication to environmental,
social, and governance (ESG) principles. As a founding member of the Global Compact
Network Philippines, Ayala aligns its reporting with the UN Global Compacts 10 Principles,
demonstrating its commitment to ethical business practices
ANALYSIS OF ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPACTS
Economic
Ayala Corporation delivered record-high core net income, driven by strong performance
from key businesses such as BPI, Ayala Land, Globe, and ACEN, signaling confidence in the
Philippine economy. Its high-growth units AC Health, ACMobility, and AC Logistics reached
breakeven, showing strong future potential. Strategic partnerships and investments, including in
GCash and AC Logistics, have enhanced Ayala's fintech and logistics capabilities, contributing
to the country’s fast-growing digital economy. Aligned with global sustainability goals, Ayala is
expanding its renewable energy portfolio and pursuing net-zero emissions. Through the Ayala
Foundation, it continues to invest in community development, education, and the arts,
supporting inclusive growth and national progress.
Environmental
Ayala Corporation is committed to environmental sustainability through responsible
resource management and the integration of sustainability into its operations. The company
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prioritizes renewable energy to enhance energy security and support sustainable growth, aiming
for net-zero emissions by 2050. It plans to expand its clean energy portfolio and adopt
advanced sustainable technologies. Ayala is strengthening its environmental policies and works
with its business units to implement systems that improve energy efficiency, water conservation,
and waste reduction. Initiatives like forest restoration, biodiversity conservation, and eco-friendly
urban development—such as those led by Ayala Land—reflect the group’s broader efforts to
reduce its ecological footprint and contribute to climate action.
Social
Ayala Corporation integrates sustainable engagement and inclusive growth into its
corporate strategy by focusing on employee empowerment, community development, and social
equity. Guided by the principles of engaging, enabling, and energizing its workforce, Ayala
fosters a culture of excellence, resilience, and belonging. Since reaffirming its commitment to
diversity, equity, and inclusion (DEI) in 2023, the company has embedded DEI across its
operations—promoting open dialogue, inclusive leadership, and support for marginalized
groups. Ayala also deepens its connection with communities through initiatives led by the Ayala
Foundation, focusing on poverty alleviation, leadership, early childhood development, and
volunteerism. Through these efforts, Ayala reinforces its role in nation-building while ensuring
long-term relevance, trust, and positive social impact.
STRENGTHS AND AREAS FOR IMPROVEMENT
Strengths
The sustained momentum of the Philippine economy with a GDP growth of 5.6% in
2024 makes it the second fastest growing nation in Southeast Asia. This was driven by
strong domestic demand, continued public investments, and reduced inflation. Ayala’s
outlook for 2025 remains constructive despite persisting global geopolitical and
macroeconomic headwinds.
At the heart of a healthy economy is an increasingly affluent consumer base. This is
supported by the middle class, which accounts for 40% of the country’s population, and a
GNI per capita growth of 7% in 2024. Consumption rose by 4.8% in the same year, and is
expected to remain the main engine of growth over the medium-term. This is on the back of
low and stable inflation, steady inflows of remittances from overseas workers, and higher
employment rates, specifically from the services industry.
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Continued acceleration of digital transformation is key to resilient and inclusive economic
growth. The Philippines was recognized as the fastest growing internet economy in
Southeast Asia in 2024, underscored by its rapidly expanding e-commerce and digital
payments sector.
Heightened focus on sustainability, with businesses integrating environmentally friendly
practices to achieve the country’s renewable energy power generation target mix of 35%
and 50% by 2030 and 2040, respectively. Moreover, while there are institutions that have
adjusted their approach to align with the pullback of commitments on diversity, equity, and
inclusion, there remains a significant set of companies and organizations maintaining their
course, particularly in Europe and the Asia-Pacific. Ayala continues to maintain its pledge to
advance inclusion within its operations, aligned with its purpose of enabling people to thrive.
Multi-sector collaboration is essential to enable sustainable and inclusive growth. The
Philippines continues to improve economic competitiveness and investability through
strategic reforms and fiscal incentives such as the tax reform bill of 2024 aimed at attracting
foreign investments through lower corporate income tax and the Proudly Pinoy Act that
champions the production and trade of Philippine-made products. By fostering agility and
innovation, collaboration across industries, government, and civil society can drive
long-term resilience and prosperity.
Areas for Improvements
Areas for Improvements Findings Recommendations
Economic Persistent losses in Strengthen synergy for
emerging businesses emerging businesses
despite record profits from actively integrate newer
core businesses like BPI businesses with
and Ayala Land, emerging high-performing core units
ventures such as AC Health to accelerate their path to
and AC Logistics continue profitability. For example,
to be loss-making. While the leverage Globe's extensive
company has set a goal for digital infrastructure and
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collective breakeven in data capabilities to expand
2025, continued losses AC Health's telemedicine
pose a risk to overall services.
Social Risk of inconsistency across Harmonize social reporting
the conglomerate while implement a standardized
subsidiaries like Ayala Land framework for social metric
demonstrate strong social reporting across all
metrics in their reports, data subsidiaries. This would
points across the entire provide clearer and more
Ayala Group may lack comparable data on
uniformity and consistent employee wellness, safety,
disclosure. This can make it training, and community
difficult for investors and engagement for the entire
stakeholders to evaluate the group. At the same time,
conglomerate's overall expand digital skilling
social impact. Additionally, it programs develop and
emphasis on employee broaden training programs
upskilling in high-tech fields to ensure all employees, not
Ayala is investing in AI just those in high-tech fields,
upskilling through initiatives are equipped with
like the Ayala Data and necessary digital skills. This
Analytics Community of can help build a more
Practice (ADA COP). inclusive, future-ready
However, as technology
advances, there is a risk of
creating a skills gap for
employees in traditional
roles who may not receive
adequate training for the
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Oversight of emerging risks Strengthen group-wide
while Ayala regularly cybersecurity governance
reviews and updates its risk continue to bolster the
register, emerging risks like group-wide cybersecurity
cybersecurity threats require governance framework,
continuous and proactive including the Chief
governance.Risking Information Security Officer
regulatory alignment and Cybersecurity Project
challenges as a large Office. Provide regular
conglomerate, Ayala must updates on
align its practices with cyber-preparedness and
evolving regulatory incident response
standards across its diverse capabilities, reflecting the
businesses, which presents evolving threat landscape.
a challenge. Proactively engage in
regulatory changes stay
ahead of regulatory
changes by conducting
foresight exercises on new
and emerging regulations in
key operating sectors.
Establish clear lines of
responsibility for
implementing new
compliance standards
across the conglomerate.
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CONCLUSION
Ayala Corporation’s 2024 Sustainability Report demonstrates a strong and deliberate
alignment with globally recognized frameworks such as the Global Reporting Initiative (GRI), the
Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related
Financial Disclosures (TCFD). This alignment reflects the company’s recognition that
transparency, comparability, and accountability are essential in communicating its financial,
social, and environmental performance to stakeholders. By integrating these frameworks, Ayala
not only adheres to international best practices but also reinforces its credibility and
trustworthiness in the eyes of regulators, investors, and the broader public.
The report also highlights Ayala’s efforts to incorporate the United Nations Sustainable
Development Goals (SDGs) and the UN Global Compact’s Ten Principles into its business
strategy, demonstrating a holistic approach that links corporate performance with global
sustainability priorities. The company’s focus on ethical business practices, risk management,
and long-term value creation underscores its intention to position sustainability as a driver of
resilience and competitiveness rather than a peripheral responsibility. In this respect, Ayala
shows a comprehensive and forward-looking approach to corporate governance and
sustainability reporting.
At the same time, the report acknowledges several challenges that reveal the complexity
of embedding ESG principles across a diverse conglomerate. The company continues to face
difficulties in measuring and reducing its carbon footprint across all scopes, fully integrating
biodiversity initiatives across business units, and ensuring coordinated waste and resource
management. These gaps highlight the need for more granular and consistent data, particularly
in areas such as greenhouse gas emissions, water use, waste generation, workplace diversity,
safety incident rates, and community impact metrics. Without such quantitative indicators, it
becomes more difficult to evaluate the effectiveness of its sustainability initiatives and to
benchmark progress against both local and global peers.
Economically, Ayala demonstrates strong contributions to national development through
employment generation, SME support, and robust financial performance. However, its limited
international presence and some operational inefficiencies pose risks to long-term
competitiveness and diversification. Similarly, while the company makes visible investments in
renewable energy, electric mobility, and circular economy projects, the path to achieving net
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zero by 2050 will require more integrated strategies and transparent reporting of intermediate
milestones.
Overall, Ayala Corporation’s sustainability reporting reflects a high level of transparency,
strategic intent, and alignment with international best practices. Its ability to balance
achievements with open acknowledgment of challenges signals maturity in corporate reporting.
However, the next stage of progress will depend on strengthening data-driven measurement,
enhancing comparability across ESG dimensions, and embedding sustainability more
consistently throughout its operations. In doing so, Ayala can solidify its role as a leader in
sustainable business in the Philippines and the broader region, ensuring that its commitments
are not only aspirational but also demonstrably effective.
REFERENCES
https://ayala.com/sustainability/?fbclid=IwY2xjawMmFQJleHRuA2FlbQIxMABicmlkETBkYTcxVz
JxZkRUdTZrd0tVAR7FVWp47Va1tBuAestU0VDC7U4_snSlXOfZQpS44pAHCAZk7xNodYdhnfY
d7A_aem_XeJjx_WW2VKvTLFUPZauJA
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