The 2019 Ayala Integrated Report (IR) offers a holistic view of our businesses and how our performance and the values we have created for our stakeholders give a meaningful impact to the economy, environment, and society. It shows our strong focus on and commitment to sustainability.

 

In this report we mark milestones in our UN Sustainable Development Goals (SDGs) targets guided by the Ayala Sustainability Blueprint: Bridging the Filipino to 2030, highlighting the role of bold leadership and shared vision in achieving our 2019 results. Moreover, we reviewed and reconfigured our Sustainability Reporting Framework considering ESG material topics with more depth.

 

The opening spread for this IR’s Value Creation chapter is a map that shows the correlation among all factors involved in the process of creating shared value.

 

With the intention to assess how we have influenced movements in the country’s economic and social landscape and of optimizing opportunities, we evaluated data culled from a rigorous collection process.

 

This report is a company-wide, group-wide effort brought about by the collaboration of different departments and business units across Ayala. Our Investor Relations team, Risk Management & Sustainability team, and Management reviewed all information in this report and was duly approved by the Board of Directors for publishing.

Reporting Scope

This report details the consolidated financial, economic, environmental, social, and governance performance across our business units from January 1 to December 31, 2019. Notes and further explanations accompany the text and tables. Included are disclosures on business expansion from our unlisted subsidiaries and affiliates.

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

Reporting Standards

In our commitment to align our non-financial information report to global best practices, this report was guided by principles and content elements of the Integrated Reporting Framework provided by the International Integrated Reporting Council (IIRC). The report on our performance on material topics and disclosures are framed according to the United Nations Global Compact (UNGC) 10 principles, Sustainability Accounting Standards Board (SASB), and Global Reporting Initiatives (GRI) Standards. The World Business Council for Sustainable Development (WBCSD) programs for business transformation helped highlight our target for specific UN Sustainable Development Goals and underscore the interconnectedness of our disclosures.

 

Starting 2019, we phased in the Financial Stability Board (FSB) Task Force on Climate-related Financial Disclosures (TCFD) recommendations for voluntary climate-related financial disclosures aimed at providing useful information to investors, lenders, and insurers.

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 pages 75-78.

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.

On 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. In accordance with Securities and Exchange Commission (SEC) regulations, the audit partner principally handling the company’s account is rotated every five years.

More information about our audit process is found on pages 197-199. For Management Discussion and Analysis of Financial Condition and Results of Operation, go to pages 217-222

On Our Sustainability Performance

DNV-GL, an independent organization and global provider of certification, assurance assessment, and training services, validated the figures and information related to our sustainability performance and Framework. The group-wide assurance process was done in two phases, which included site visits and interviews with executives from the Ayala group. Due to COVID-19 concerns, the second phase of the assessment was done remotely.

The full Independent Assurance Statement is on pages 223-226.

Feedback

We welcome feedback and inquiries to help us improve our future reporting.

You may e-mail your feedback and comments to: investorrelations@ayala.com.ph, sustainability@ayala.com.ph, and esg@ayala.com.ph.

 

A copy of our financial statements can be accessed at www.ayala.com.ph.