As the Philippines intensifies its efforts to combat climate change and transition to a greener economy, several major businesses have taken significant steps toward sustainability. These companies are leading the charge in sustainable development, focusing on renewable energy, eco-friendly urban projects, and green financing. Ayala Land Inc., First Gen Corporation, and BuhaWind Energy Philippines are notable examples of businesses that are investing in projects aimed at reducing carbon emissions and fostering long-term environmental benefits.
Ayala Land Inc.: Pioneering Sustainability in Urban Development
Zobel family’s Ayala Land Inc. (ALI), one of the Philippines’ largest property developers, has integrated sustainability into its business strategy. To finance eco-friendly projects, the company has been raising substantial funds through sustainability-linked bonds. In 2024, ALI announced a P10 billion bond issue, which followed an earlier P6 billion bond issuance that year. These funds are part of ALI’s broader P50 billion sustainability financing program.
The goal of ALI’s projects is to lessen the environmental impact of urban development. As part of its capital expenditure plan, the company has allocated P100 billion for 2024, a significant portion of which will go toward building sustainable infrastructure. ALI’s developments focus on eco-efficient designs, energy-saving technologies, and green spaces, making them models of sustainable urban living in the Philippines.
Collaborating with the International Finance Corporation (IFC), ALI also secured a P14.5 billion sustainability-linked loan to further its green initiatives. Through these financing mechanisms, ALI not only supports its own growth but also contributes to the country’s goals for sustainable urban development.
First Gen Corporation: Expanding Renewable Energy
First Gen Corporation is another business in the Philippines that spearheads sustainable energy projects. The Lopez Group’s corporation, a prominent clean energy company in the country, places significant emphasis on renewable energy projects that are essential to the nation’s shift away from fossil fuels. The company is in the process of developing nine wind farms across multiple regions, including La Union, Iloilo, and Zamboanga del Norte, with a total capacity of 900 megawatts.
First Gen’s push toward renewable energy aligns with the Philippine government’s target of increasing the renewable energy mix to 35% by 2030. The company’s goal is to expand its clean energy portfolio to 13,000 megawatts by 2030, with 9,000 megawatts coming from renewable energy sources like wind, solar, and geothermal.
In addition to wind energy, First Gen continues to invest in geothermal power through its subsidiary, Energy Development Corporation (EDC). Geothermal energy remains a key component of the company’s renewable energy strategy, providing reliable, around-the-clock green power to commercial and industrial clients. This consistent energy supply is essential as the Philippines works toward net-zero emissions by 2050.
BuhaWind Energy Philippines: Leading the Offshore Wind Sector
BuhaWind Energy Philippines, a joint venture between Yuchengco’s Copenhagen Energy and PetroGreen Energy Corp., is at the forefront of the country’s burgeoning offshore wind sector. The company’s flagship project is a 2,000-megawatt offshore wind farm in Northern Luzon, one of the most advanced wind energy projects in the Philippines. We expect this massive project to create 24,000 jobs during its construction phase and generate long-term employment for decades during its operational period.
BuhaWind’s projects represent a significant advancement in the Philippines’ renewable energy infrastructure. The company’s partnership with the Department of Energy (DOE) and the Philippine Ports Authority (PPA) has led to the repurposing of several key ports to support the growing offshore wind industry. Currimao Port in Ilocos Norte will play a vital role in facilitating BuhaWind’s developments, positioning the country as a key player in the regional offshore wind market.
The repurposing of ports is just one part of a larger plan by the Philippine government to encourage investment in renewable energy. The DOE has launched a Green Energy Auction Program to incentivize companies like BuhaWind to pursue large-scale renewable energy projects. BuhaWind is also planning additional wind farms in Northern Mindoro and East Panay, each with a capacity of 1,000 megawatts, further solidifying its position as a leader in the renewable energy sector.
Building a Sustainable Future
The efforts of Ayala Land Inc., First Gen Corporation, and BuhaWind Energy Philippines highlight the growing commitment of major businesses in the Philippines to sustainability. These companies are not only investing in eco-friendly projects but are also helping to shape the country’s green economy. By focusing on renewable energy, green financing, and sustainable urban development, these businesses are driving the Philippines toward a more sustainable and resilient future.
As the demand for clean energy and sustainable infrastructure grows, the role of these companies in reducing the country’s carbon footprint and mitigating the effects of climate change will become even more critical. Their efforts demonstrate that businesses can be key contributors to environmental stewardship while still achieving economic growth.
References
Bilyonaryo. (n.d.). Clean energy drive: Lopez Group’s First Gen plans 900 MW of wind farms in seven provinces. Bilyonaryo. https://bilyonaryo.com/2024/09/30/clean-energy-drive-lopez-groups-first-gen-plans-900-mw-of-wind-farms-in-seven-provinces/power/
Bilyonaryo. (2024, September 24). Yuchengco’s PetroGreen and Copenhagen Energy to create 24,000 jobs in Northern Luzon with 2,000MW wind farm. Bilyonaryo. Retrieved October 2, 2024, from https://bilyonaryo.com/2024/09/24/yuchengcos-petrogreen-and-copenhagen-energy-to-create-24000-jobs-in-northern-luzon-with-2000mw-wind-farm/power/
Bilyonaryo. (2024, September 25). Zobel family expands green initiative with Ayala Land’s new P10 billion Sustainability-linked bond sale. Bilyonaryo. Retrieved October 2, 2024, from https://bilyonaryo.com/2024/09/18/zobel-family-expands-green-initiative-with-ayala-lands-new-p10-billion-sustainability-linked-bond-sale/property/
Philippine Star. (2024, September 22). ALI to raise P10 billion from sustainability-linked bond issuance. Philippine Star. Retrieved October 2, 2024, from https://www.philstar.com/business/2024/09/22/2386965/ali-raise-p10-billion-sustainability-linked-bond-issuance
Power Philippines. (2024, September 20). First Gen lines up 9,000 MW of RE in net zero goal. Power Philippines. Retrieved October 2, 2024, from https://powerphilippines.com/first-gen-lines-up-9000-mw-of-re-in-net-zero-goal/
Facebook
Instagram
Linkedin
Twitter
Youtube