Environmental Stewardship

Most of AREIT’s properties are strategically located in the mixed-use, integrated, and sustainable estates of Ayala Land that are readily accessible to commuters and pedestrians.  

In the Makati CBD, Ayala North Exchange and Solaris One are both connected to the elevated walkway and underpass network of the estate, providing access to the main transport hub in Ayala Center. Both buildings are also near the bus and jeepney stops along Ayala Avenue.  

Situated at the northbound side of Epifanio de los Santos Avenue (EDSA), the McKinley Exchange Center serves as a main entry point into the Bonifacio Global City (BGC) in Taguig. This bustling commercial complex houses a terminal for public utility vehicles that transport commuters to and from BGC. In addition, the McKinley Exchange Center is seamlessly connected to the new One Ayala Center on the other side of EDSA through an elevated covered walkway. This convenient link allows pedestrians to travel safely and comfortably between the two centers.  

Teleperformance Cebu is located in the heart of the 27-hectare Cebu I.T. Park, which is a hub for the city’s booming information technology and business process outsourcing industries. It is ideally situated near the Sponsor’s Central Bloc mixed-use development that currently hosts a mall, a Seda hotel, and two towering office buildings.  

Teleperformance Cebu is in a prime location for attracting top talent and providing employees with access to a wide range of amenities, from shops and restaurants to entertainment venues and hotels. The central location of the Cebu I.T. Park also offers convenient access to transportation hubs and major thoroughfares, making it easy for employees and clients to reach the center from anywhere in the city.

RESOURCE EFFICIENCY

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. 

Due to the new acquisitions in 2021 and the easing of restrictions brought about by the pandemic, the total energy consumption within the organization further rose to 29.5 million kWh, versus 13.8 million kWh in previous reporting year. Similarly, energy consumption of leased areas increased by 7% to 44.4 million kWh. 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 2022 also increased by 18% for common areas, and 26% for tenant areas.

Water consumption of properties also saw a significant growth particularly for common areas. Consumption within common areas rose by 54% from the 2021 value to 429 thousand cubic meters, while leased area consumption increased by 5% to 151 thousand cubic meters. In terms of water intensity, measured as cubic meter consumption per sq. meter of occupied floor area, common area and leased area increased by 17% and 20%, respectively. 

AREIT aims to increase the share of green buildings in its portfolio. As of end-2022, 64% of its buildings in terms of GLA are LEED-certified, with the addition of Ayala North Exchange Towers 1 and 2. 

AREIT supports its Sponsor’s goal to become carbon-neutral across all its commercial properties by 2022 and had done so in 2021 for its then existing properties. It continues to look for opportunities to shift a greater proportion of its properties to utilizing renewable energy (RE) sources. 

Renewable Energy  

As of end-2022, 87% of AREIT’s buildings as measured in GLA are purchasing electricity from renewable sources, the same as the previous reporting period. However, the share of renewable energy in the energy mix rose to 80% from 71% in 2021, mainly due to the increase in consumption from facilities sourcing RE. 

Emissions  

Aligned with its Sponsor’s carbon neutrality achievement, AREIT has achieved carbon neutrality status in 2021, one year ahead of its goal, with third-party verification ongoing. 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 18,486 t-CO2e and 3,954 t-CO2e, respectively, resulting in net-zero scope 1 and 2 emissions from fuel and electricity use. Emissions intensity, measured in terms of scopes 1 to 3 operational emissions per sq. meter of occupied floor area, also decreased by 19% through improvements in energy efficiency and reduction of emissions from renewable energy use. 

Solid Waste 

AREIT has adopted a circular waste management model, in line with its Sponsor’s practice. With the help of Ayala Property Management Corporation, waste generated by AREIT’s properties is sent either to recyclers or to the landfill. As of end-2022, efforts of waste diversion have increased resulting in an amount of 188 tonnes of waste diverted and sent to recyclers. Total waste generated increased to 1.2 million kg due to the higher number of buildings included in the reporting scope. 

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 to include H802 or grease wastes and F601 or solvent-based wastes. In 2022, only ULABs increased by 16% to 2.67 tonnes from 2.3 tonnes in 2021.