Let’s build sustainable communities · Global City (BGC), and Nuvali, we continue to increase our footprint in building estates that benefit more people nationwide. With over 8,000

2014 Sustainability ReportLet’s build sustainable communities 1

2014 Sustainability Report

Let’s build sustainable communities

Let’s build sustainable communities2

Makati Central Business District


Our CompanyAyala Land is the leading, most diversified property developer in the Philippines today, with a proven track record in developing large-scale, integrated, mixed-use communities that become thriving economic centers in their respective regions. To achieve this, we pioneer standards and practices that reflect an understanding and respect for the importance of sustainability.

Following the success of the Makati Central Business District (Makati CBD), Ayala Alabang, Cebu Park District, Bonifacio Global City (BGC), and Nuvali, we continue to increase our footprint in building estates that benefit more people nationwide. With over 8,000 hectares of land bank, we are now present in 45 growth centers across the country, offering a balanced and complementary mix of residential spaces, shopping centers, offices, hotels and resorts, convenience stores, and healthcare facilities.

Our Vision and MissionOur vision is to enhance our standing and reputation as the Philippines’ leading real estate developer, and to be a strong partner in nation-building. By developing integrated, masterplanned, and sustainable mixed-use communities in vibrant growth centers all over the country, we strive to continually elevate the quality of life for all of our customers.

We shall be a responsible corporate citizen and act with integrity, foresight, and prudence.

We shall empower our employees to deliver products that exceed our customers’ expectations and build long-term value for our shareholders.

Our Core ValuesAt Ayala Land, we value integrity, long-term vision, empowering leadership, and commitment to national development.


Creative use of passive design and technology to minimize energy, water, and waste footprint

Eco-efficiency

Developments that provide opportunities for job creation

Open spaces, parks, and resilient landscapes provide respite and refuge

Facilities that promote walkability, ease street congestion, and improve the pedestrian experience

Local Employment

Site Resilience

Pedestrian-Transit Connectivity

Greenbelt Mall Makati


About this Sustainability Report

6 President’s Message

10 Sustainability Framework

16 Site Resilience

22 Pedestrian-Transit Connectivity

28 Eco-efficiency

38 Local Economic Development

47 Notes, Appendix, and

GRI Content Index

Contents

This is Ayala Land’s eighth sustainability report. This report complements our 2014 Annual Report where our financial results and corporate governance practices are discussed. This year, we adapt a new approach where we report our sustainability performance in terms of our Four Focus Areas: Site Resilience, Pedestrian-Transit Connectivity, Eco-efficiency, and Local Economic Development. This approach enables us to provide a comprehensive discussion on how we embed sustainability in the way we conduct the business.

We also recognize that an empowered organization is critical to the growth and sustainability of the Company. We include a section on our efforts in enabling our people to integrate sustainable practices in their line of work.

This report covers the economic, environmental, and social performance and impact of Ayala Land and its wholly owned subsidiaries. The specific boundary and business units for which certain performance indicators are most material and applicable is specified in the GRI Content Index. This covers performance data from our operations in the Philippines from January 1, 2014 to December 31, 2014. For comparison, data from previous years are included where available. (G4-18)

This report was prepared in accordance with the Core GRI G4 guidelines, and was externally assured by DNV-GL using the DNV-GL Report Verification Protocol (VeriSustain) covering economic, environmental, governance, and social indicators. (G4-33)

This report is available online for download at www.ayalaland.com.ph/sustainability.


It is my pleasure to introduce an enhanced reporting approach designed for better communication of Ayala Land’s sustainability performance to our diverse stakeholders.

As the country’s pioneer developer of business districts and catalysts for enduring economic growth, we have long recognized that continued financial success is supported by our healthy adherence to the precautionary principle (principles of responsible corporate citizenship, prudence, and due diligence). Our dedication to improvements for society and the enhancement of built and natural environments finds expression in the sustainable communities we develop. For these reasons, sustainability has and always will be a significant part of Ayala Land’s identity, values, and operating principles.

In 2014, I enjoined our units to focus on four areas that would make the most difference for the Philippine economy, society, and environment, as well as represent our brand’s continued commitment to nation-building. It is our fundamental belief that these four areas—site resilience, pedestrian and transit connectivity, eco-efficiency, and local economic development—embody the characteristics of sustainable communities.

To determine these four focus areas, we reviewed our risks and opportunities, as well as our impacts on real estate development. We gathered stakeholder insights and undertook iterative discussions with our sustainability committee and company veterans in our project development process.

By embedding these sustainability features into communities that we develop, we create long-term value, and provide Filipinos all over the country with distinctive spaces that minimize their impact on the environment, address vulnerabilities to climate change, promote healthy lifestyles, and promote economic growth in their host localities.

President’s MessageG4-1, G4-2


Through our masterplanning exercises, we are able to give due respect to the balance between natural and built environment. We not only create value for the long term, we also provide spaces for refuge, water absorption, and healthy social interaction. More than 50,000 recorded native trees populate the green spaces of our managed properties, providing much needed respite to thousands of urban dwellers who use our gardens and landscaped areas.

We have also started to promote a culture of walking in our various developments, starting with our mature estates, the Makati Central Business District and Bonifacio Global City. We look forward to raising the bar on pedestrian and transit connectivity in our future estates.

Our design, planning, and property management teams continue to develop and implement ways to use energy, water, and materials efficiently, while lowering our carbon dioxide emissions per square meter.

We estimate that our P109 billion worth of construction projects has generated additional employment for 286,000 people. We look forward to fostering increased productivity in different locations, creating more jobs in the construction, retail, tourism, and health sectors through our various estates.

In the short term, we will continue to refine indicators that are appropriate for the Philippine property development situation. In the medium and long term, we look forward to continuing to work with scientists, the academe, and other experts to add to the increasing knowledge base for sustainable development in the Philippines. As we learn and benchmark with global best practices and covenants, we also work toward responding to unique conditions in our geographic location.

I am truly grateful for the continuing recognition of Ayala Land’s efforts in sustainability, and for the foundation laid by my predecessor Tony Aquino, who received for us the Green Luminary Award from Channel NewsAsia Awards in the early part of 2014. This award recognized Ayala Land’s attention to sustainability in each step of our project development cycle, inspiring us to work for consistency throughout our units.

We recognize that measurement, tracking, and refining of our sustainability metrics continue to be our challenge. I am, however, confident that our empowered organization is composed of men and women who possess values and competencies that will uphold sustainability for years to come.

Finally, we thank all our stakeholders for continuing to be with us all the way in our sustainability journey. We appreciate their feedback and willingness to continue to dialogue with us, for we recognize that leadership in sustainability requires that we share a common vision with the communities we operate in.

BERNARD VINCENT O. DYPresident and CEO


Large-scale Sustainable EstatesEach Ayala Land estate has the attributes of our Four Focus Areas that make it a sustainable community. By embedding these features, we create long-term value for our stakeholders, provide distinctive developments that benefit more people, and minimize impact on the environment.

Site ResilienceEco-efficiency

318 hectares of open spaces in our mature estates

worth of savings due to energy conservation initiatives

P93.62M


Pedestrian-Transit Connectivity

Local Economic Development

spent on construction manpower and related costsP1.6Bpeople walk along

Ayala Avenue’s pedestrian facilities daily

210,000Around


Ayala Land’s commitment to the triple bottom line is best expressed in its vision to “be a strong partner in nation-building,’’ and its mission of developing sustainable mixed-use communities that seek to uplift the quality of life of communities in vibrant growth centers all over the Philippines. By continuing our founders’ tradition of creating long-term value from the land we develop, we uphold a legacy of foresight and prudence, resulting in developments that respect the environment and community, while serving as catalyst of economic growth.

Ayala Land began its sustainability program and reporting in 2007 by identifying targets, and initiating programs, projects, and activities under five pillars, namely Environmental Stewardship and Impact Reduction, Community Stewardship and Social Development, Personnel Development, Health and Safety, and Market Shaping and Accountability. These pillars embodied the Company’s comprehensive contributions to the Ayala Group’s call for responses to a group-wide Sustainable Development Policy.

Sustainability Framework

Buildingthe Foundationsof Sustainability

Ayala Avenue, 1960s


It was during this time that the Ayala Group of Companies consolidated its position and vision of sustainable development not only for its member companies, but also for Philippine society. Ayala Land heeded this call to contribute to the long-term and enduring success of the nation through its own comprehensive and embedded sustainability program.

Reporting initiatives were guided by then Presidents and CEOs Jaime I. Ayala (2007), and later Antonino T. Aquino, who chaired the Ayala Land Sustainability Committee from 2008 to 2014. Projects, programs, and activities under each pillar were championed by corresponding technical working groups and support units.

Gearing for growth and efficiency in a time of climate change and rapid development, Ayala Land’s environmental stewardship initiatives focused on solutions in the areas of eco-efficiency and green design. A culture of “malasakit”1

resulted in programs that considered the livelihood needs of local communities in the vicinity of project areas. Understanding that employees are the backbone of sustainable business, activities were geared toward increasing staff awareness of the triple bottom line and their role in it. The Company’s construction and property management arms focused on firming up their health and safety programs by undergoing requisite certifications.

Nuvali, Laguna


Finally, recognizing that a sustainable society is only possible with the cooperation of various stakeholders, including customers, Ayala Land embarked on marketing, communications, and sustainability reporting to share sustainable living concepts and communicate its progress on targets under the market shaping and accountability pillars.

In 2009, Ayala Land mobilized its 5-10-15 strategy2, which resulted in unprecedented successes as well as new mindsets, practices, and new ventures for the Company. Nuvali, the country’s first large-scale mixed-use estate built around the theme of sustainability, was also fully activated in this period. Its popularity among buyers and non-buyers alike indicated that Filipinos were ready to embrace healthier and sustainable lifestyles. New subsidiaries such as PhilEnergy and DirectPower were established to undertake projects to improve energy efficiencies in estates and commercial centers. Ayala Land’s entry into sustainable resort development in El Nido, Palawan signified the Company’s recognition of the country’s destination potentials and commitment to responsible tourism.

Vertis North, Quezon City

Alviera, Pampanga


New residential subsidiaries Amaia and BellaVita also emerged from this period of growth, using Ayala Land’s expertise and track record in producing quality affordable and socialized housing for broader markets.

Ayala Land’s sustainability thrust also laid the foundation for programs such as VoluntarALI3, Alay sa Komunidad4, and continuing career development programs such as Professionals in Development and various executive training activities. An empowered organization geared for sustainable growth emerged from these efforts. Various support unit initiatives such as the HR network, Business Integrity Program and Investor Relations’ active compliance with the ASEAN Governance Scorecard were also undertaken in this period.

Circuit Makati

Today, under the leadership of President and CEO Bernard Vincent O. Dy, Ayala Land reaffirms its dedication to sustainability by building on this foundation, and further embedding sustainability into the business by focusing on four areas that best respond to the Philippine sustainability context.


Identification and Prioritization

As Ayala Land continued to report using the Global Reporting Initiative (GRI) framework, we also began to see the recurrence of a number of sustainability concerns outside the prescribed indicators. The GRI G4 guidelines provided us with an opportunity to revisit and refine our sets of indicators, through the lens of the Philippine development context.

We also saw that while the Philippine economic outlook was optimistic, the company saw four major areas that were sources of both opportunity and risk. These are (a) the Philippines’ vulnerability to climate change and disasters, (b) growing urban traffic congestion, (c) continuing loss of natural resources, and (d) uneven socio-economic development. These four areas of concern provided the filters for which indicators to prioritize.

Iterative consultation processes within the company, tracking of recurring themes from media reports, project and operating teams, as well as customer surveys, resulted in the identification of four focus areas or themes: Site Resilience, Pedestrian and Transit Connectivity, Eco-efficiency, and Local Economic Development. (Refer to p. 55 for Stakeholder Sustainability Concerns)

Sustainability Framework

Defining Material Aspects

From 5 Pillarsto Four Focus AreasG4-12, G4-14, G4-18 to G4-20, G4-25 to G4-27

We provide our customers with sustainable communities by embedding Ayala Land’s Four Sustainability Focus Areas in the Project Development Process and Supply Chain.


Validation

The Sustainability Team further consulted with the various leads in charge of planning and design, risk management, construction and property management, as well as other units to identify risks and opportunities under each of the aspects. An initial assessment of company strengths resulted in the identification of four areas where Ayala Land can positively contribute to societal sustainability and meet business goals.

How We Implement

Ayala Land recognizes that the key to the successful implementation of the goals of the focus areas is an empowered organization. In 2014, the Planning and Finance Group worked closely to craft and roll out the Focus Areas scorecard together with business units.

The sustainability scorecard serves as the units’ checklist for the identification of opportunities, features, and targets that they must incorporate into their products. This initial scorecard includes the aspects categorized under the four focus areas. (Refer to p. 54 for Sustainability Scoreboard Table)

On its first year of use, the scorecard served as a self-assessment tool and a challenge to the project teams to strengthen their sustainability position. To support implementation, Planning and Finance group conducted roadshows and consultations with the respective units through their finance officers and heads to rally their full support. Sustainability learning events continue to be undertaken to share best practices and solutions.

The Company’s Sustainability program is overseen by the board level Sustainability Committee, composed of two external directors and the CEO/President. The Sustainability Team shepherds initiatives that support implementation of the four focus areas. These include, but are not limited to, providing technical assistance to business and support units, research and analysis, and learning events.

With the roll out of the scorecard, however, sustainability becomes a responsibility of each unit and each employee. The sustainability KRAs provide each team member with guidance on their roles until sustainability becomes “second nature.”


z

The wetland in Nuvali—an expression of Ayala Land’s commitment to site resilience and one of its contributions to human and environmental well-being.


z

Site ResilienceGlobally, the Philippines ranks third among the countries that are most vulnerable to climate change. While Ayala Land recognizes and fulfills its responsibility to continuously manage and minimize its greenhouse gas emissions to slow down climate change, it also has to address the fact that Philippine property development is continuously challenged by risks brought about by the nature of its geographic location. As resilience is best seen as the ability to weather these challenging times, Ayala Land continuously develops projects that are able to reduce risks and also thrive for generations.

To reduce risks and increase resilience, each Ayala Land development undergoes careful study that focuses on (a) site selection, masterplanning, and design through technical due diligence and hazards-screening, (b) employing soil and stormwater sensitive designs and systems, and (c) using indigenous plants that are appropriate for local conditions.

All these features come together in Ayala Land’s tradition of incorporating open and green areas for refuge, rainwater absorption, and social interaction into its estates and various products.

EC7, EC8, EN12


Ayala Triangle Gardens

As part of due diligence, Ayala Land’s survey protocols continue to be refined to correctly identify existing stands of native trees that can be incorporated into projects. To further enhance climate resilience and contribute to the Philippines’ biodiversity stock, we will continue to plant more native trees and protect them. To date, 62 properties managed by Ayala Property Management Corporation (APMC) have reported a total of 16,036 trees5 planted and retained, of which 45 percent are native. Likewise, the Nuvali estate has a total of 51,986 trees since 2012. 44,540 of these trees are native, representing 76 percent of the total surviving trees.

Site Resilience Through Due Diligence

The art and science of disaster risk reduction, as well as the balance between natural landscapes, built spaces, and infrastructure, is a challenge that Ayala Land takes very seriously. The task begins with the careful consideration of a site’s natural features (including slope and native vegetation), development potentials, limitations, and business intentions. Planning in Ayala Land involves an iterative process that incorporates the inputs of various disciplines. This process results in products that are valued by our stakeholders.

Since 2011, at least 111 technical due diligence studies have been undertaken in-house for Ayala Land projects. As necessitated by specific project requirements, additional detailed and focused investigations on soils and waterways are also conducted. These scientific studies enable planners and designers to create amenity out of stormwater management solutions, and/or undertake rectification measures as additional precautions.


Green Spaces as Refuge Areas

For decades, Ayala Land has provided open spaces to allow for social activity and to enhance the overall experience in its properties. Beyond fulfilling aesthetic goals, these natural landscapes provide refuge, enable water absorption into the ground, and promote biodiversity that contributes to climate resilience. Where feasible, land disturbance is kept to what is necessary for eff icient construction and maintenance of urban infrastructure. Planning and development methods are continuously enhanced to integrate an area’s natural terrain and native vegetation into estate plans.

Ayala Land pioneered the balancing of natural landscapes and developed spaces, as demonstrated by its established estates—Makati CBD, Nuvali, and Bonifacio Global City (BGC). The MCBD, through the Makati Commercial Estate Association (MACEA), is maintaining 25,778 square meters of parks with its Legazpi, Velazquez/Salcedo, and Washington Sycip Parks6. By integrating organized green spaces into its property developments at Ayala Center and Ayala Triangle Gardens, the Company contributes approximately 46,736 square meters7 of open, landscaped, and permeable areas. This adds up to about 72,514 square meters of open space with greenery in the 163-hectare managed business district.

BGC has also been able to apportion about 145,489 square meters of open greenery to the 142-hectare development. An additional 373,251 square meters is dedicated to road right of way, including sidewalks and medians. To this, Ayala Land contributes the pedestrian-dedicated Bonifacio High Street (BHS) measuring 20,442 square meters or about two hectares.

Dita in BGC

Greenbelt Park


Similarly, Nuvali’s masterplan allocated 297 hectares of combined landscaped and natural space, or about 16 percent of its total of 1,860 hectares. Another 148.8 hectares or eight percent is dedicated for road pavement in the estate. On top of this, each residential locator is expected to add additional organized green spaces within their respective developments.

Case Feature: Nuvali’s Constructed Wetland

Most regular visitors to Nuvali’s Solenad and Evoliving zones are familiar with its man-made lake, a four-hectare body of water that runs through its retail and business districts. The lake provides people a perfect backdrop for dining and shopping, or simply for relaxation and rejuvenation after a day or week of work. One can choose to go on a boat ride or feed the koi that inhabit its clean waters.

Nuvali Lake


Behind the Evoliving Center is the equally important South Evozone Wetland. Designed to take advantage of a naturally low-lying area, the constructed wetland is part of the stormwater management system of the Nuvali estate. The system was created as a biological (natural) filter that removes potential pollutants and sediments from stormwater before it is slowly absorbed into the ground or released to the lake.

A series of greenways and a main pond, altogether measuring around 2.32 hectares, is planted with predominantly indigenous trees and vegetation specified for their ability to filter contaminants and provide a habitat for wildlife that is critical to ecosystem balance.

The water-loving Putat (Barringtonia asiatica) and the soil-conserving Matang-araw (Melicope triphylla) are expected to dominate the landscape. The bamboo-lined greenways, which also function as pedestrian routes and bikeways, slowly convey water to a main pond designed to hold 28,000 cubic meters of stormwater. The wetland system can also delay stormwater by four hours before it drains to the outfall. The wetland in Nuvali—an expression of Ayala Land’s commitment to site resilience and one of its contributions to human and environmental well-being.

Constructed wetland in Nuvali

Wetland filters water into the lake.


Elevated walkways facilitate smoother pedestrian flow and movement around Ayala Center and the Makati Central Business District.


Filipinos all over the archipelago need transport infrastructure and public transit systems in order to access economic opportunities that will uplift their standard of living. As the country’s economic outlook remains positive and urbanization contributes to growth, the working Filipino continues to confront mobility issues on an everyday basis. A 2014 study by the Japan International Cooperation Agency (JICA) estimated that the country loses P2.4 billion a day due to lost work hours, lost business opportunities, and delays due to traffic congestion in Metro Manila8. While other parts of the country have yet to experience the same problems, Ayala Land recognizes that there are opportunities to prevent the same issues by providing pedestrian-friendly and transport-oriented developments. The Company’s pioneering work in developing business districts and mixed-use communities demonstrated that for pedestrian and public transit facilities to work, collaboration with partners and stakeholders is important.

Ayala Land contributes to connectivity by (a) applying lessons learned from its mature developments to plan for better pedestrian-friendly facilities in newer projects, and (b) ensuring that its developments are better served by public transport. As our experience in Makati shows, our focus on improving the environment for pedestrians and commuters can provide significant benefits. Our newer projects, such as BGC are already applying and reaping the benefits of the lessons we have learned from the Makati Central Business District (MCBD).

Pedestrian-Transit ConnectivityEC7


MCBD: A Haven for Pedestrians

In the early nineties, the planners of Ayala Land and the Makati Commercial Estate Association (MACEA) embarked on a unique masterplanning effort to improve the walking experience in the 163-hectare MCBD. A wave of economic development and construction in the Philippines’ premier business district brought not only progress, but also traffic congestion9. Approximately 400,000 people worked in the MCBD in 199510. Many of them were commuters who had to cross busy intersections and walk along obstacle-filled sidewalks. MACEA, with the technical assistance of Ayala Land and local and foreign planning consultants, laid out a long-term vision to be implemented over the next several years to dramatically change and improve the experience of pedestrians and commuters in the MCBD.

Greenbelt’s elevated walkway

Over the next two decades, an extensive and interconnected network of pedestrian underpasses, elevated walkways, covered sidewalks, public transport terminals, rebuilt sidewalks, better landscaping, and traffic management measures were implemented which transformed the MCBD from a traffic- and road-oriented district to a haven for pedestrians and commuters. An estimated daytime population of about a million people benefit from this extensive pedestrian facility network that starts from the Ayala MRT3 station along EDSA up to the Ayala-Buendia area with branches at Salcedo and Legazpi Village. This network provides a safe, comfortable, and weather-protected walk for pedestrians and accessible public transport for commuters, which created a viable alternative to using a private car in the MCBD.

This pedestrian facility network increased the average walking distance of pedestrians from 400 to 700 meters and enables people to walk all the way from Ayala Center to Rufino Street in about 15 minutes without ever having to cross through traffic. From 40,000 pedestrians crossing the intersections along Ayala Avenue in the MCBD in 1995, studies in 2011 and 201311 showed that more than 210,000 people use the pedestrian facility network. The elevated walkway to Ayala Center alone serves 44,000 people a day.


Prioritizing the Pedestrian

Ayala Land continues to transform the pedestrian experience by applying lessons learned from the MCBD. BGC, a partnership between Ayala Land, Evergreen Holdings, and the Bases Conversion Development Authority (BCDA) is one development that has benefited.

In an unprecedented move, Ayala Land designed a 1.2-kilometer strip called Bonifacio High Street (BHS) at the BGC estate for pedestrians only. Instead of a road, BHS was intended to become a new way of integrating retail, office, and residential uses with each other. BHS has since become the defining and most well-known feature of BGC, and efforts continue to further improve BGC’s pedestrian environment through traffic improvement measures such as pedestrian traffic signals, speed limits, speed tables, and greenways, among others.

The Bonifacio Transport Corporation, a wholly owned subsidiary of the Fort Bonifacio Development Corporation (FBDC), operated 37 buses serving a reported count of around 32,800 riders by the end of 2014. In a similar manner, Ayala Land Offices ensure that the 100,000 full-time employees of their tenants in 20 locations around the Philippines have access to public transport including bike racks in all of its establishments to support a growing demand from bike riders.

BGC terminal here (to be provided)

A tree-lined street at BGC


Case Feature: MACEA and Ayala Land, Walking Toward a Better CBD

The pedestrian experience in the MCBD would not have happened without the combined forces of MACEA and Ayala Land. Having recognized the worsening traffic congestion in 1992, and having anticipated further growth in the area, urban planners and consultants of MACEA and Ayala Land recommended that the best solution was to improve the walking experience within the CBD to lessen the dependency on cars for short trips.

To create an environment that encouraged walking was a challenge, as the planners and consultants had to work within the confines of an already built-up area. The answer was to lessen pedestrian and vehicular traffic with an extensive system of pedestrian underpasses, elevated walkways, covered sidewalks, public transport stops and terminals, and rebuilt sidewalks.

In 1995, the first of several pedestrian underpasses and covered sidewalks was constructed when a portion of an existing street (Legazpi) was closed to traffic, paved and landscaped for exclusive pedestrian use, and connected to a pedestrian underpass across Ayala Avenue12. It was an immediate success, providing a safe and traffic-free crossing along Ayala Avenue to Greenbelt, and continues to be used by about 23,000 people a day.

To date, about P749 million has been spent on pedestrian facility projects in the MCBD, with P679 million contributed by MACEA, P51 million by Ayala Land, and P19 million by PLDT and Kuok. These resources have transformed the walking habits of visitors and residents of the Makati CBD, creating an exclusive pedestrian network free of traffic.

Part of Legazpi Street Makati today—a road dedicated to pedestrians

Legazpi Street Makati in 1994


An additional investment of P117 million has been provided by MACEA for the extension of the elevated walkway along Dela Rosa from Rufino up to the intersection of Ayala Avenue and Gil Puyat which will provide pedestrians a direct weather-protected walk to Gateway and the extensive new developments that will be happening in this area.

An art-filled Makati underpass

Transport terminal at Nuvali


At Ayala Land, eco-efficiency initiatives are driven by an astute team of construction and property management experts.


Eco-efficiency Materials such as steel, cement, energy, and water make up the bulk of resources used in Ayala Land’s project development process. It is estimated that operating commercial buildings account for approximately 40 percent of global energy use, but also offer the greatest opportunity for energy reduction and global greenhouse gas emissions13. Waste is produced throughout a property’s life-cycle, i.e. during land development, construction, demolition, and operations.

Ayala Land’s eco-efficiency initiatives for the past seven years have been focused primarily on supply chain and process improvements by our two subsidiaries, Makati Development Corporation (MDC) and Ayala Property Management Corporation (APMC). These two support units have been monitoring, managing, and undertaking projects to improve performance in areas with the most significant impacts, and where we could make the most difference. These are in (a) materials such as steel and cement, (b) energy consumption in investment properties, (c) greenhouse gas emissions, (d) water consumption in investment properties, and (e) residual waste management.

Our efforts in these aspects resulted in benefits for the environment as well as the Company’s bottom line. We remain conscious of our resource consumption as we continue to maintain the quality and service that Ayala Land is known for, and set new heights for the Company to grow14.


Wise Use of Construction Materials EN2

In response to Ayala Land’s call for wise resource use, MDC, through the Green Procurement initiatives of Ayala Land’s Supply Chain Management Division (SCMD), began to use steel containing 88.6 percent post-consumer recycled content in 2010. In addition, MDC was able to recycle 1,955 tons of rebars and metal in our construction projects in 2014. We continue to monitor consumption of reinforced bars, steel, and cement. Our cement consumption grew by 21 percent from last year, while our reinforced bars and steel consumption grew only by 0.2 percent from 2013 to 2014. We look forward to more insights as construction projects approach completion.

Another result of Green Procurement directives in the supply chain was the specification of cement containing 30 percent fly-ash replacement in 2012. This initiative resulted in beneficial partnerships with cement companies that supported green practices. Pre-fabrication of components and establishment of cement batching plants in strategic locations enabled MDC to reduce wastage, and minimize travel time and fuel consumption.

Cement (tons)

191,558

231,208

Cement (thousand bags)

4,789

5,780

Rebars/Steel (tons)

96,648

96,857

2013 2014

1,955 tons of recycled reinforced steel bars and metal can be used to build 20 four-story affordable housing projects15

2014 Materials ConsumptionEN1


EnergyEN6

Ayala Land’s property management unit, APMC, continues to realize better energy efficiencies as a result of investments in technology and implementation of best practices that it started as far back as 2007. Through the efforts of property managers, we have slowed down the growth of our electricity consumption from 24 percent in the period 2012 to 2013, to only six percent in the period 2013 to 2014. As a result, we avoided the consumption of 10,721 mWh of electricity in 2014, equivalent to P93.62 million worth of savings. District-cooling systems are also used in projects with the right mix of uses to reduce energy demand.

Our energy intensity, measured as kWh consumption per square meter of space, decreased by 36 percent since 2011 despite a growth of 33 percent in absolute energy consumption in the same period16. This translates to an annual 13.8 percent reduction in three years, well beyond the target of a three-percent reduction in energy intensity annually for APMC’s managed properties.

From 2012 to 2014 APMC was able to save 15,321 mWh of electricity, which is equivalent to providing electricity to 13,600 households for one hour17.


Infographic: From 2012-2014 APMC was able to save 15,321 mWh of electricity, which is equivalent to providing electricity to 13,600 households for one hour .

2012* 2013* 2014

Car Parks 4,484,575.35 4,661,861.35 4,970,658.48

Estate 2,906,091.93 3,036,501.55 3,324,264.71

Mall 176,197,890.74 234,543,976.88 248,862,825.57

Office–BPO 115,587,010.50 145,950,105.77 158,259,971.64

Office–Traditional 45,773,966.50 43,585,122.20 41,917,587.78

Residential–Horizontal 3,621,414.03 4,131,094.35 3,759,703.07

Residential–Vertical 15,706,965.81 16,261,223.86 18,488,634.71

Grand Total 364,277,914.86 452,160,885.96 479,365,194.95

ELECTRICITY CONSUMPTION IN APMC-MANAGED PROPERTIESEN3, EN4

Note: Restated to include Visayas-Mindanao Group malls and offices

Electricity Consumption (kWh) 2012 2013 2014

Construction 8,993,845.66 9,964,481.00 15,085,752.30

Hotels 15,725,416.92 40,297,966.12 41,721,166.00

Resorts - - 3,784,946.00

ELECTRICITY CONSUMPTION IN NON-APMC-MANAGED PROPERTIESEN3, EN4

Fuel Consumption (in Liters)

Stationary Sources Mobile Source

Diesel LPG Diesel GasolineAPMC- managed Properties 641,400.64 - - -

Hotels 241,452.00 193,141.00 1,680.00 -

Resorts 1,385,389.00 - 535,810.00 80,039.00

Diesel – Stationary and Mobile Services

Construction 4,133,808.28

FUEL CONSUMPTION BY SOURCEEN3, EN4


Reducing GHG Emissions Intensity

As Ayala Land recognizes that the pursuit of growth will result in higher greenhouse gas (GHG) emissions, we began to voluntarily track our Scope 1 and Scope 2 GHG emissions in 2008 to better understand causes and manage at source. With increasing occupancy and opening of new projects, our absolute Scope 1 and Scope 2 emissions increased to 290,117 t-CO2e in 2014, or by 9.22 percent from 265,618 t-CO2e in 2013. Our average Scope 2 GHG intensity (Emissions per Gross Leasable Area or GLA) in our investment properties18 went down by 8.7 percent from the previous year.

From 2010 to 2014, we were able to decrease our GHG intensity from investment properties by 17.6 percent. Average GHG intensity from our shopping centers and offices went down by 24 and 12.5 percent, respectively, from 2010. These decreases may be attributed to our various energy-efficiency initiatives.

Through the years, we have studied various approaches to further reduce GHG emissions where practicable and sustainable, considering the current limits of available technologies. There is certainly more room for improvement, as at the moment, our renewable energy consumption is at .004 percent of our total. This comes from solar energy posts and panels that we have installed in selected malls and estates such as Nuvali, BGC, Trinoma, and Lio in El Nido19. We also look forward to measuring potential emissions in our residential developments in order to report and manage Scope 3 emissions.

Restated: differs from 2014 Annual Report table due to inclusion of Iloilo BPO (G4-22)

Investment Propeties – Scope 2 GHG Intensity

350

300

250

200

150

100

50

332

267

219

2010

308

251

218

2011

295

244

215

2012

273

241

218

2013

252220

191

2014

Malls GHG per GLAOffices GHG per GLAAverage GHG per GLA


Managing the Water Cycle

As a pioneer in real estate development, Ayala Land was the first private sector player to construct large-scale wastewater treatment plants in the Philippines. The Company set up the Magallanes sewerage plant in Makati in the 1960s to process wastewater generated from around 700 hectares of residential and commercial developments in the Makati CBD area20. Estate developments such as Ayala Alabang, Muntinlupa, and Cebu Business Park, also benefited from the Company’s environmental responsibility and long-range thinking with their own sewerage treatment plants. The plants in Magallanes and Alabang have subsequently been taken over and expanded by water utility companies in the early 2000s21, when the Philippine government mobilized its water utilities privatization program.

Ayala Land’s sustainability efforts in water management included the pilot operation of water recycling facilities in properties such as UP Ayala Land TechnoHub and Nuvali. We shall report on the results and impacts of these water recycling facilities as soon as they are fully operational.

Ayala Land complies with the national law (Philippine Water Code) and local policies regulating water extraction and utilization. Our developments utilize water district suppliers such as Manila Water and Maynilad if they operate in the project sites. For properties outside of their coverage area, Ayala Land coordinates with the local water district suppliers to lessen and ultimately eliminate the use of deepwell or groundwater.

EN10

To lessen the impact of our use of water, we have specific guidelines on water efficiency and savings. Annually, we have a target water metric per type of property that is included in APMC’s Key Result Areas (KRA).

In APMC-managed properties, growth in water consumption slowed to 19 percent in 2014 versus 29 percent in 2013, as a result of water management initiatives in place since 2010. These include the installation of low-water consumption fixtures and occupant sensors for urinals, water closets, and faucets. Water is also reused and recycled for landscaping and toilet flushing at Nuvali and El Nido Resorts.


Water Consumption (m3) 2012 2013 2014

Construction 411,734.22 630,000.00 1,547,771.51

Hotels 173,553.34 368,682.64 444,431.66

Resorts 87,510.10

WATER CONSUMPTION IN NON-APMC-MANAGED PROPERTIESEN8

Water Consumption (m3) 2012* 2013* 2014

Mall 2,304,333.20 3,180,024.62 3,271,639.72

Office–Traditional 314,864.37 293,729.63 296,039.17

Office–BPO 822,188.54 1,091,181.97 1,311,901.27

Residential–Vertical 226,778.49 248,267.26 357,692.21

Residential–Horizontal 296,351.51 337,221.65 1,015,836.81

Car Park 38,654.39 30,117.17 31,536.67

Estate 217,603.24 214,197.03 201,337.55

Subtotal 4,220,773.74 5,434,739.34 6,485,983.39

WATER CONSUMPTION IN APMC-MANAGED PROPERTIESEN8

*Restated to include Visayas-Mindanao malls and offices, and data correction (G4-22)


Waste

Ayala Land began to monitor the solid waste from its developments in the year 2000, by doing so, managed to reduce its residual waste by 85 percent in 200722. This was achieved by setting up Materials Recovery Facilities (MRF) to recover materials that could be reused, recycled, or processed into compost. As early adopters of the national Solid Waste Management Act of 2000, Ayala Land was able to reap the benefits early on.

Waste segregation continues to this date in APMC-managed properties, and MRFs have long been regarded as standard in all of Ayala Land’s designs and plans. APMC managed to keep the ratio of waste that are diverted from landfills at an average of 55 percent from the years 2009 to 2014. The rest of the waste are either recycled, sold to pig farms, or made into compost. This translates to 90,926 tons of waste diverted from 2009 to 2014, which is equivalent to filling 6,635 ten-wheeler dump trucks.23

El Nido Resorts, which has a central MRF where the waste of three island resorts are processed, was able to produce 14,059.59 kilograms or four percent of their total waste into compost. This compost is then used in the resort gardens and its organic farms in the El Nido mainland.

Complying with a target of 50 percent reduction in residual construction waste set in 2014, MDC was able to avoid P225,093,341.6 million in hauling costs, as they recycled 662,039 cubic meters of waste.


2014 Waste Generation(In ‘000 kg, unless stated otherwise)

Recyclable FOOD RESIDUAL COMPOSTABLE TOTAL

AMPC-managed properties 4,477.22 7,850.26 16,191.48 5,541.11 34,060.07

Construction (in ‘000 cubic meters) 662.0424 - 1,310.91 - 1,869.25

Hotels - - - - 1,014.84

Resorts 29.33 265.90 73.13 - 368.36

WASTE GENERATED BY TYPE AND SOURCEEN23

Waste Generation

Waste hauled to landfill (Residual Waste)Waste diverted from landfill (Food, Recyclable, Compostable Waste)

45% 43% 41% 44%48% 48%

55% 57% 59% 56% 52%

52%

2009 2010 2011 2012 2013 2014


Serving as engines of growth, Ayala Land developments spark new job opportunities and business activities that benefit the community.


Together with partners and other stakeholders throughout the country, Ayala Land and its subsidiaries serve as catalysts and engines of growth for new business activities and settings through its masterplanned mixed-use communities.

As a provider of spaces for homes, business, leisure, culture, and other urban functions, Ayala Land is able to stimulate local economic activity at every step of its project development cycle.

The various stages involved in a project development cycle provide jobs for various expertise from land assessment, design preparation to construction, and ultimately during operation. Our investments in human capital and local productivity enable our partner communities to develop and grow with the Company.

Ayala Land’s expansion to other growth areas in the country provides us with unique platforms for creative and enduring property solutions, most appropriate locations, and promote efficient and safe environments of social activities (land uses).

For this focus area, we look into (a) the value we are able to contribute through our developments all over the Philippines, (b) numbers of direct (and indirect) jobs created in the construction and operating phases of the project development cycle, and (c) community investments.

Local Economic Development EC7, EC8


Value Generated and Distributed

We continue to find ways to measure the economic impact of Ayala Land and how our products might better serve Filipinos. This can be through the value we distribute and the employment that we directly and indirectly create. In 2014, Ayala Land generated a total of P95.52 billion in value resulting from its various activities in the Philippines. Around 82 percent of this value was distributed to our various stakeholders, while only 18 percent was retained by the Company. Ayala Land has also invested more than P250 billion for projects all over the country over the course of three years.

Ayala Land has spent P19.9 billion in value for its manpower from 2011 to 2014. This includes spending for its employees and construction, and for maintenance jobs all over the country. As of 2014, Ayala Land has provided jobs for about 20,00025 people for our operations and construction activities. Our P109 billion worth of construction projects is estimated to have generated additional employment of 286,00026 all over the country.

El Nido locals help boost tourism in the province.


80,000

90,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

-2011 2012 2013 2014

Capital Expenditures (in million pesos)

29,914

71,293

66,263

83,298

2014 Economic Value Distributed and Retained (in million pesos)

53,663

27

8,344

11,299

17,524

56.37%18.41%

.03%

11.87%

8.76%

4.56%

Payments to suppliers/ contractorsEconomic value retainedPayments to providers of capitalPayments to governmentsPayments to employeesPayments to communities

4,342


MIMAROPAWestern Visayas

Northern MindanaoNegros Island

Davao

Central Luzon

Central Visayas

CALABARZON

NCR

2009 2010 2011 2012 2013 2014

NCR 226.96 349.85 328.29 461.35 1,060.71 1,248.80

CALABARZON 66.00 62.30 86.15 163.20 135.55 136.65CentralVisayas 11.04 14.78 28.48 85.10 115.20 117.96Central Luzon 16.77 8.63 10.23 18.91 33.63 46.83Davao - - 4.80 23.82 36.14 35.68Negros Island 1.56 4.36 5.47 13.09 8.61 1.96Northern Mindanao - - - 0.29 4.22 20.26NorthernVisayas - - - - 4.46 9.15MIMAROPA - - - 3.22 5.49 1.07TOTAL 322 440 463 769 1,404 1,618

Contruction Manpower Expense per Region (in million pesos)


Community Direct and Indirect Investments

Not only do Ayala Land’s estates and commercial centers provide quality spaces that the public can enjoy, they are also able to assist non-profit organizations by providing them opportunities to interact with their publics, raise awareness, and support their sustainability.

Community partners are also given importance in the project development cycle. As good corporate citizens, project teams collaborate with local government units in providing much-needed assistance in education, disaster rehabilitation, and community infrastructure. From 2010 to 2014, Ayala Land has invested around

P600 million in these initiatives. Ayala Land has also started to invest in human capital required by our developments through manpower development trainings for potential construction, hotel, and property management personnel.

Education drive initiated by Alviera and Ayala Business Club for Pampanga community.


Sustainability in Our KRAs

A major milestone for 2014 was the development and roll out of a scorecard to enable teams to track and report on Ayala Land’s sustainability focus areas. Finance and sustainability teams worked together to conduct roadshows and consultations with various units through their finance officers and heads. By incorporating the scorecard into performance key result areas (KRAs), sustainability becomes a responsibility of each unit and employee. The scorecard is an evolving tool designed to provide project team members with process and guidance on the four focus areas until sustainability becomes “second nature.”

Leadership learning session

Sustainability learning session for marketing practitioners

An Empowered OrganizationThe year 2014 marked the completion of Ayala Land’s 5-10-15 plan and signalled the beginning of its new 2020-40 growth target, which seeks to achieve a net income of P40 billion by the year 2020. This ambitious target relies on various strategies that utilize the synergies available across Ayala Land’s business units. As this target means that the Company must grow at an annual rate of 20 percent, this also means that project teams must be ready to identify and seize opportunities, and be accountable where the Company can make a difference—in the development of sustainable communities.

Ayala Land recognizes that the successful execution of the 2020-40 plan relies on an empowered organization committed to the mastery of sustainable development.

LA10


Professional and Organizational Development Our highly responsive Human Resources unit continued to include sustainability orientations for new employees in its Professionals in Development (PID) program in 2014. Learning sessions on the four focus areas were also initiated during the said period. Experts provided inputs on geo-hazards and how native plant use contributes to resilience. Best practice exchange sessions on pedestrian and transit connectivity, eco-efficiency, and economic development, among other topics are scheduled for 2015.

To further empower various team members, we rolled out the Break Out initiative in 2014. Break Out is a methodology to develop practical solutions quickly, by people managing a process and affected by a business problem. The process aims to simplify existing processes, define clear lines of accountability, and produce immediate short-term business results. The sessions provided opportunities for the various subsidiaries and the 2,992-strong workforce with mastery over the complex processes in sustainable property development.

Inspiring Confidence Through Communication

Upholding the results of the previous year’s Organizational Climate Survey, Ayala Land unit heads and managers sustained inclusive communication practices in 2014, such as regular town halls, quarterly updates, and active multidisciplinary approaches to problem solving. These practices enabled various teams to effectively harness creativity and diversity of their members while maintaining the rigor of work procedures.

The improvement in overall Ayala Land engagement scores was driven primarily by the following: 1) more inclusive decision-making process, 2) implementation of work procedures that promote high-quality results, 3) commensurate value given to responsibilities and workload, and 4) increased prospects for career advancement and promotions.

Sustainability learning session for project managers


Case: Good Governance SummitAyala Land held its first Governance, Risk Management, and Compliance Summit on November 19, 2014. The summit was an opportunity to affirm the gains of Ayala Land’s enhanced Business Integrity Program which rolled out Codes of Ethical Behavior, Ethical Procurement Conduct, as well as the Vendor’s Code of Ethics in 2012.

Top management used the occasion to point out that cultivating a culture of integrity at Ayala Land is everybody’s responsibility, and everybody should be Integrity Champions.

President and CEO Bernard Vincent O. Dy also stressed that the strict adoption of corporate governance—simply defined as doing the right things the right way—benefits the Company in concrete ways that are reflected on its bottom line.

The summit also concluded that adhering to the highest corporate governance standards will play a key role in achieving Ayala Land’s ambitious program to grow revenues by 20 percent every year and record a net profit of at least P40 billion by 2020.

Leaders of Ayala Land’s Governance, Risk Management, and Compliance Summit


Notes, Appendix,

and GRI Content Index


Notes

1 Malasakit can be roughly translated as “compassion.”2 In 5 years, Php 10 billion in income and 15% on ROE.3 Enabling employees to take 4 day leaves of absence per year to do volunteer work.4 Alay sa Komunidad can be roughly translated as “contribution to community.”5 Planted and retained in the past 20 years.6 As measured through Google Maps, Legazpi Park is 8,392 sqm, Salcedo/ Velazquez Park is 6,452 sqm, Washington Sycip Park is 10,934 sqm.7 Ayala Triangle Gardens is 21,442 sqm; Glorietta is 9,949 sqm; Greenbelt is 15,345 sqm. Data is provided by Ayala Property Management Corporation (APMC).8 Rodis, Rodel (2014). Manila’s traffic jams cost $57 million a day. Retrieved August 26, 2015, from http://globalnation.inquirer.net/113269/manilas-traffic-jams-cost-57-million-a-day.

Japan International Cooperation Agency (2014). JICA transport study lists strategies for congestion-free MM by 2030. Retrieved August 26, 2015, from http://www.jica.go.jp/philippine/english/office/topics/news/140902.html.9 Estimated 200,000 cars per day in “How to Make Makati People-friendly” by Marge Enriquez (Philippine Daily Inquirer, 9 April 1995).10 Salvador Tan, quoted by Lynette Corporal in “The Greening of Makati”(Manila Standard, 8 July 1995).11 Based on 2013 traffic studies for Ayala Land estates.12 Pedestrian-Friendly Streetscape in a Tropical Business District by Zenaida C. Galingan, 2009.13 Asia Pacific Real Estate Association (APREA) Sustainability Handbook published in 2012.14 We have also started to monitor top soil reuse, and are coming up with initiatives to improve surveys, identification and utilization of existing native trees in our estates.15 Based on a 4-story Amaia project with 625m² floor plate (2,500m² total CFA) with 40kg/CFA rebar ratio.16 Base year: 2011 Ayala land Sustainability Report, All Areas APMC-Managed Accounts. Consumption at 360,800,00 kWh.17 Based on 1,125 kwh consumption per household in the Philippines.

(2015). Average Electricity Consumption Per Electrified Household. Retrieved August 26, 2015, from https://www.wec-indicators.enerdata.eu/household-electricity-use.html.18 Investment properties include our shopping centers and offices where we have operational control.19 We have installed solar panels which are used to provide electricity for 10 rooms and the kitchen of El Nido Cove Resort, located within our Lio development in El Nido town.20 Makati South Sewage Treatment Plant Upgrade With On-Site Power Document Form. Retrieved August 26, 2015, from http://www.dnv.com/focus/climate_change/upload/msstp%20pdd%20ver02_280307.pdf.21 USAID (2008). Philippine Sanitation Alliance Quarterly Report. Retrieved August 26, 2015, from http://pdf.usaid.gov/pdf_docs/PA00HWHW.pdf.

(2012). Environment Al Assessment Report – Rehabilitation of Ayala Wastewater Treatment Plant. Retrieved August 26, 2015, from http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/02/0 6/000333038_20120206214353/Rendered/INDEX/E26770v30EA0P10202020120Box365794B0.txt.22 Based on the 2010 Ayala Corporation Annual Report.23 Based on 15 tons (US) or 13.6078 metric tons capacity of a standard ten-wheeler dump truck. 24 Excludes recycled rebars and metal.25 Ayala Land (Groupwide) – 2,992 full-time employees, APMC – 9,497 Outsourced Labor, MDC – 7,486 Contractuals Total – 19,975.26 Based on employment multiplier of the construction industry.

Dumaua, M. B. (2010). Input-output multiplier analysis for major industries in the Philippines. 11th National Convention on Statistics.


IN MILLION PESOS, EXCEPT IF INDICATED

2012 2013 2014

Revenue 59, 932.0 81,523.0 95,197.0

Net income 9,038.3 11,741.8 14,802.6

Market capitalization, in billion pesos 363.7 350.8 478.0

Capital expenditures,in billion pesos 71.3 66.3 83.3

FINANCIAL HIGHLIGHTS

IN MILLION PESOS 2012 2013 2014

Economic value generated

Total revenue 59,932.2 81,523.1 95,197.0

Economic value distributedPayments to suppliers/contractors 32,914.9 45,347.6 53,662.5

Payments to employees 4,432.2 5,766.6 4,341.6

Payments to providers of capital 6,167.1 8,244.9 11,298.7

Payments to governments 4,772.5 6,416.4 8,343.7

Payments to communities 22.0 316.7 27.0

Economic value retained 11,623.5 15,430.9 7,523.5

ECONOMIC VALUE DISTRIBUTIONEC1, EC9

Appendix


Materials Unit 2013 2014

Rebars/steel tons 96,648 96,857

Cement tons 191,558 231,208

Cement bags 4,788,948 5,780,209

MATERIALS CONSUMPTION

Unit 2011 2012 2013 2014

APMC-managed properties kWh/sqm/year 60.78 57.94 40.95 38.87

ENERGY INTENSITY

SCOPES GHG (t-CO2e)

Scope 1 EN 15 20,364

Scope 2 EN 16 269,753

Scope 3 EN 17 7,057

TOTAL 297,173

NOTE

Standards used for the computation are the GHG Protocol Corporate Standards. Calculation tool used for fuel stationary emissions: World Resources Institute (2015). GHG Protocol tool for stationary combustion. Calculation tool used for fuel mobile emissions: World Resources Institute (2015). GHG Protocol tool for mobile combustion. Version 2.6. Emission factors used for electricity are from the Philippine Department of Energy. Reference for the GWP rates is the 2014 IPCC 5th Assessment Report. Scope 2 Emission Factor is broken down into Luzon-Visayas Grid and Mindanao Grid. Gasses reported include carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O).

AVERAGE SCOPE 2 GHG INTENSITY 2010 2011 2012 2013 2014

Investment properties kg-CO2e/sqm 267 251 244 241 220

Malls kg-CO2e/sqm 332 308 295 273 252

Offices kg-CO2e/sqm 219 218 215 218 191

GHG INTENSITY

GHG EMISSIONS

EN18/CRE3/CRE4

MALLS OFFICE HOTELS AND RESORTS

RESIDENTIAL CAR PARKS ESTATE

TotalGHG(t-CO2e) 124,334 113,080 31,056 7,057 3,013 585

Intensity (kg-CO2e/GLA) 252 191 42 7.6 22.4 0.04

scope 2 only scope 2 only kg/room/day per common area per GLA per managed area

EN1/CRE5

EN1


Ayala Land 33 19 14 19 14 - - 8 25 33 - -

Alveo Land 31 12 19 24 7 - - 1 30 29 2 -

Avida Land 65 15 50 47 18 - 5 60 - 57 5 3

MDC 96 66 30 37 47 12 - 15 81 83 13 -

Amaia Land 87 23 64 55 32 - - 6 81 85 2 -

BellaVita 12 5 7 7 5 - - 2 10 12 - -

APMC 84 58 26 62 22 - 1 83 - 78 6 -

El Nido Resorts 43 27 16 27 14 2 - 3 40 43 - -

SedaHotels 71 36 35 40 29 2 18 25 28 49 - 22

HolidayInn 22 15 7 12 9 1 9 9 4 22 - -

Fairmont 52 25 27 28 20 4 1 15 36 52 - -

Intercon 27 10 17 11 15 1 5 19 3 27 - -

Cebu Marriot 27 16 11 15 12 - 1 2 24 - 27 -

Total 650 327 323 384 244 22 40 248 362 570 55 25

NEW HIRES MALE FEMALE UNDER 30 30 TO 50 OVER 50 SENIOR MANAGEMENT

MIDDLEMANAGEMENT

STAFF LUZ VIS MIN

2014 NEW HIRES GENDER DISTRIBUTION AGE DISTRIBUTION DISTRIBUTION BY POSITION DISTRIBUTION BY REGION

Ayala Land 498 21 5 - 9 17 108 116 3 185 36 99 149 107 121 20

Alveo Land 118 - - - - - 11 7 1 17 - 30 70 63 37 -

Avida Land 242 - - - - - 11 34 - 42 3 58 139 117 77 3

MDC 329 1 - - - 1 90 21 2 72 37 151 66 52 139 26

Amaia Land 216 - - - - - 16 25 2 38 1 126 49 94 81 -

BellaVita 28 - - - - - 3 - - 3 - 7 18 17 8 -

APMC 319 23 10 - 30 3 189 97 144 131 11 - - - - -

El Nido Resorts 333 1 1 - 2 - 11 10 5 16 - 232 78 105 183 22

SedaHotels 151 21 14 4 26 5 35 26 22 37 2 25 30 45 9 1

HolidayInn 99 8 9 3 12 2 26 26 23 29 - 19 11 18 12 -

Fairmont 293 5 1 - 5 1 27 38 13 47 5 119 103 124 97 1

Intercon 200 8 10 - 16 2 55 42 17 60 20 67 18 17 40 28

Cebu Marriot 166 8 2 - 6 4 4 8 2 9 1 95 49 31 92 21

Total 2,992 96 52 7 106 35 586 450 234 686 116 1,028 780 790 896 122

TOTAL HEADCOUNT MALE FEMALE UNDER

3030

TO 50 OVER 50 MALE FEMALE UNDER 50 30 TO 50 OVER 50 MALE FEMALE UNDER 30 30 TO 50 OVER 50

EMPLOYEE DISTRIBUTION AGE DISTRIBUTION GENDER DISTRIBUTION AGE DISTRIBUTION GENDER DISTRIBUTION AGE DISTRIBUTION

SENIOR MANAGEMENT MIDDLE MANAGEMENT RANK AND FILE

EMPLOYEE DISTRIBUTION BY EMPLOYMENT CATEGORY G4-10, LA1

228 270 46% 54% 110 315 73 22% 63% 15% 26 224 248 5% 45% 50% 99% 1% -

41 77 35% 65% 64 54 - 54% 46% - - 18 100 - 15% 85% 95% 4% 1%

69 173 29% 71% 117 119 6 48% 49% 2% - 45 197 - 19% 81% 94% 5% 1%

242 87 74% 26% 54 211 64 16% 64% 19% 1 111 217 - 34% 66% 92% 7% 1%

142 74 66% 34% 96 119 1 44% 55% - - 41 175 - 19% 81% 98% 2% -

10 18 36% 64% 17 11 - 61% 39% - - 3 25 - 11% 89% 100% - -

212 107 66% 34% 144 161 14 45% 50% 4% 33 286 - 10% 90% - 90% 9% 1%

244 89 73% 27% 110 201 22 33% 60% 7% 2 21 310 1% 6% 93% 100% - -

81 70 54% 46% 71 72 8 47% 48% 5% 35 61 55 23% 40% 36% 48% - 52%

53 46 54% 46% 44 53 2 44% 54% 2% 17 52 30 17% 53% 30% 100% - -

151 142 52% 48% 137 149 7 47% 51% 2% 6 65 222 2% 22% 76% 100% - -

130 70 65% 35% 34 116 50 17% 58% 25% 18 97 85 9% 49% 43% 100% - -

107 59 64% 36% 33 107 26 20% 64% 16% 10 12 144 6% 7% 87% 2% 98% -

1,710 1,282 57% 43% 1,031 1,688 273 34% 56% 9% 148 1,036 1,808 5% 35% 60% 89% 8% 3%

SENIOR MANAGEMENT

MIDDLEMANAGEMENT

MALE FEMALE % MALE % FEMALE UNDER 30 30 TO 50 OVER 50 % UNDER 30 % 30 TO 50

% OVER 50 STAFF % SENIOR MANAGEMENT

% MIDDLE MANAGEMENT

% STAFF % LUZ % VIS % MIN

GENDER AGE DISTRIBUTION DISTRIBUTION BY POSITION DISTRIBUTION BY REGION

EMPLOYEE DISTRIBUTION

Ayala Land

Alveo Land

Avida Land

MDC

Amaia Land

BellaVita

APMC

El Nido Resorts

SedaHotels

HolidayInn

Fairmont

Intercon

Cebu Marriot

Total

G4-10, LA1

498

118

242

329

216

28

319

333

151

99

293

200

166

2,992

TOTAL HEADCOUNT

GENDER


CONTRACTUALS DIRECT HIRES OUTSOURCED DAILIES

Ayala Land 73 147 -

Alveo Land 955 149 -

Avida Land 135 65 -

Amaia - 197 -

Bellavita - 27 -

APMC - 116 -

MDC 3846 111 7486

SedaBGC - 110 -

Seda Abreeza - 2 -

Seda CDO - 3 -

Seda Nuvali - 63 -

Fairmont - 338 -

Cebu Marriott - 185 -

HolidayInn - 194 -

Intercon - 237 -

El Nido Resorts 20 26 -

Total 5,029 1,970 7,486

Ayala Land 498 492 22 4% 11 11 8 14 - 22 - -

Alveo Land 118 95 14 13% 9 5 10 4 - 13 1 -

Avida Land 242 231 23 10% 12 11 16 7 - 22 1 -

MDC 329 268 17 6% 8 9 - 6 11 17 - -

Amaia Land 216 160 29 15% 8 21 14 15 - 28 1 -

BellaVita 28 18 5 22% 2 3 5 - - 5 - -

APMC 319 289 61 20% 40 21 32 27 2 57 4 -

El Nido Resorts 333 328 42 13% 31 11 14 26 2 42 - -

SedaHotels 151 99 41 13% 19 22 24 15 2 21 - 20

HolidayInn 99 97 20 20% 14 6 6 12 2 20 - -

Fairmont 293 313 78 26% 37 41 27 46 5 78 - -

Intercon 200 197 21 11% 11 10 7 6 8 21 - -

Cebu Marriot 166 155 21 13% 12 9 6 12 3 - 21 -

Total 2,992 2,742 394 14% 214 180 169 190 35 346 28 20

TOTALHEADCOUNT

TOTALHEADCOUNT

2013

TOTAL NO. OFEMPLOYEES

LEAVING

ATTRITION RATE

MALE FEMALE UNDER 30 30 TO 49 50 AND UP LUZ VIS MIN

EMPLOYEE TURNOVER GENDER DISTRIBUTION AGE DISTRIBUTION DISTRIBUTION BY REGION

ATTRITION


EMPLOYEE CATEGORY FEMALE MALE

Manager 1 1.45

Staff 1 0.78

2014 RATIO OF BASIC SALARY AND REMUNERATION OF WOMEN TO MEN BY EMPLOYEE CATEGORY

2014 COMPOSITION OF GOVERNANCE BODIES AND BREAKDOWN OF EMPLOYEES PER EMPLOYEE CATEGORY ACCORDING TO GENDER AND AGE GROUP

BoardofDirectors 9 89% 11% - - 100%

Management Committee 9 89% 11% NA 33% 67%

Total 18 - - - - -

TOTAL HEADCOUNT

MALE FEMALE UNDER 30 30 TO 50 OVER 50

GENDER DISTRIBUTION COUNT AGE DISTRIBUTION COUNT

Life insurance

Healthcoverageinpatientandoutpatient

Disability/invalidity coverage

Retirementbenefit

Leavebenefits

Medical allowance

BENEFITS PROVIDED TO FULL-TIME, REGULAR EMPLOYEES OF AYALA LAND

LA2

Senior Management(MTF-UP)

Middle Management(MTF-UP)

Rank and File

16.7

22.0

27.5

OVERALL AVERAGE TRAINING HOURS PER EMPLOYEE CATEGORY

LA9


Site Resilience Pedestrian-Transit

Connectivity

Eco-efficiency Local Economic Development

Empowered Organization

Economic - - - EC1, EC7, EC8, EC9 EC6

Environmental

EN11, EN12, EN14, EN29,

EN31, EN34 -

EN1,EN2,EN3, EN4, EN5, CRE1, EN6,EN7, CRE2,

EN8, EN10, EN15, EN16, EN17, CRE3,

EN19, EN23

- -

Society - - - SO1, SO2 SO3

Humanrights - - - HR1,HR8,HR9 HR4,HR5,HR6,HR12

Product responsibility PR1 - - PR5

Labor - - - - LA1, LA2, LA4, LA6, LA9, LA10

- LA1, LA2, LA4, LA6 LA1, LA2, LA4 -

Local employment generated at each stage of

the project development

cycle

-

Total Indicators: 81 or 77 GRI G4 indicators

11 (for external assurance) 3 16 (for external

assurance) 11 12

GRI G4 INDICATORS ALIGNED WITH AYALA LAND SUSTAINABILITY FOCUS AREAS

Site Resilience Pedestrian-Transit Connectivity

Eco-efficiency Local Economic Contribution

Technical due diligence for use in site selection, design, and planning

Planning for pedestrian-friendly facilities

Monitoring and managing projects to improve

performance in:Economic value distributed

Stormwater sensitive Incorporation of public

transport stops and terminals

a. materials useb. energy and water

consumptionc.GHGemissionsd. residual waste

management

Direct and indirect jobs created as a

result of the project development cycle

Use of indigenous plants for climate resilience - -

Direct and indirect community investments

SUSTAINABILITY SCORECARD

G4-21


Stakeholder Sustainability Concerns Means of Engagement

Businesspartnersandsuppliers Adherence to highest level of moral and ethical conduct

Third-party accreditation process; vendor audits in accordance with theVendors’CodeofEthics

Communities Quality of life in and around Ayala Land developments

Community engagement activities and consultations through partners, barangay(village)officials,homeowners’associations, and non-government organizations; third-party assessments

Customers Delivery of best-in-class products and services

Customer surveys; feedback through website and social media

EmployeesAdherence to Ayala Land Code of EthicalBehavior;professionalandorganizational development

Regulartownhalls,quarterlybriefings,bi-annual third-party administered Organizational Climate Survey (OCS)

Government Economic development and nation-building

Participation in local development councils, where applicable

Non-government organizations Meaningfulandeffectiveengagementwith communities

Partnerships to uplift environmental, social, and economic conditions of poor communities near or adjacent to our developments

Media Timely and accuratenews; transparency

Quarterly investor relations business briefings;briefingsonprojectlaunches;press releases

Shareholders Access to timely, accurate, and relevant information

Investor Relations website; quarterly financialanalysts’briefings;annualstockholders meetings

STAKEHOLDER SUSTAINABILITY CONCERNS G4-24 to G4-27


G4-22 Effectofanyrestatementsofinformationprovidedinpreviousreports,andthereasons for such restatements. Energy, Water data from 2012-2013

G4-23 SignificantchangesfrompreviousreportingperiodsintheScopeandAspectBoundaries.

InclusionofVisayas-Mindanaopropertiesin resource consumption data. Inclusion

ofHotelsandResortsresourceconsumption data

G4-24 List of Stakeholder Groups engaged by the organization. AR pp. 60-62, SR p. 55

G4-25 Basisforidentificationandselectionofstakeholderswithwhomtoengage. SR pp. 14-15, 55

G4-26Organizations approach to stakeholder engagement, including frequency of

engagement by type and by stakholder group, and an indication whether any of the engagementwasundertakenspecificallyaspartofthepreparationprocess.

SR pp. 14-15, 55

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns. SR pp. 14-15, 55

G4-28 Reportingperiod(suchasfiscalorcalendaryear). AR p. 5, SR p. 5

G4-29 Date of most recent previous report. 2014

G4-30 Reporting cycle. Annual

GRI G4 GENERAL STANDARD DISCLOSURES

INDICATOR SHORT DESCRIPTION FOUND IN PAGE/S

G4-1 Statement from the most senior decision-maker. SR pp. 6-7

G4-2 Description of key impacts, risks, and opportunities. SR pp. 6-7

G4-3 Name of the organization. AR p. 3

G4-4 Primary brands, products, and services. AR pp. 26-42

G4-5 Location of the organization's headquarters. AR p. 110

G4-6 Number of countries where the organization operates, and names of countries whereeithertheorganizationhassignificantoperations. AR p. 3

G4-7 Nature of ownership and legal form. AR pp. 3, 66, 111-114

G4-8 Markets served (including geographic breakdown, sectors served, and types of customersandbeneficiaries). AR p. 3

G4-9 Scale of the organization. AR pp. 3, 6-7, 111-114G4-10aG4-10b Total number of employees by employment and gender. SR p. 51-52

G4-11 Percentage of total employees covered by collective bargaining agreements.

100% of non-management employees of the Parent Company are covered by the results of our collective bargaining

agreements

G4-12 Describe the organization's supply chain. SR p. 14

G4-13 Significantchangesduringthereportingperiodregardingtheorganization’ssize,structure, ownership, or its supply chain. AR pp. 114-117

G4-14 Whether and how the precautionary approach or principle is addressed by the organization. AR pp. 76, 81, 86-87, SR pp. 14-15

G4-15 Externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes or which it endorses. AR p. 47

G4-16 Memberships of associations (such as industry associations) and national or international advocacy organizations. AR pp. 90, 92

G4-17 Entitiesincludedinconsolidatedfinancialstatementsandexclusions. AR pp. 111-114

G4-18 a.ProcessfordefiningthereportcontentandtheAspectBoundaries;b.HowtheorganizationhasimplementedtheReportingPrinciplesforDefiningReportContent. SR pp. 5, 14-15

G4-19 MaterialAspectsidentifiedintheprocessfordefiningreportcontent. SR pp. 14-15, 17, 23, 29, 39, 54

G4-20 Whether the Aspect is material within the organization. SR pp. 14-15, 54, 59-65

G4-21 Whether the Aspect is material outside of the organization. SR pp. 54, 59-65

GRI Content Index


G4-28 Reportingperiod(suchasfiscalorcalendaryear). AR p. 5

G4-29 Date of most recent previous report. 2014

G4-30 Reporting cycle. Annual

G4-31 Contact point for questions regarding the report or its contents. SR p. 69

G4-32 ‘In accordance’ option the organization has chosen. Core

G4-33 Organization’s policy and current practice with regard to seeking external assurance for the report. SR pp. 5, 66-67

G4-34Governance structure of the organization, including committees of the highest governance body. Identify any committees responsible for decision-making on

economic, environmental and social impacts.AR pp. 80-82

G4-35 Process for delegating authority for economic, environmental and social topics from the highest governance body to senior executives and other employees. AR pp. 80-82

G4-36Whether the organization has appointed an executive-level position or positions

with responsibility for economic, environmental and social topics, and whether post holders report directly to the highest governance body.

AR pp. 80-82

G4-37Processes for consultation between stakeholders and the highest governance body on economic, environmental and social topics. If consultation is delegated, describe

to whom and any feedback processes to the highest governance body.AR pp. 80-82

G4-38 Composition of the highest governance body and its committees. AR pp. 71, 80-82, 90-92

G4-39WhethertheChairofthehighestgovernancebodyisalsoanexecutiveofficer(and,ifso, his or her function within the organization’s management and the reasons for this

arrangement).AR pp. 71, 80-82, 90-92

G4-40Nomination and selection processes for the highest governance body and its

committees, and the criteria used for nominating and selecting highest governance body members.

AR pp. 71, 80-82, 90-92

G4-41 Processesforthehighestgovernancebodytoensureconflictsofinterestareavoidedand managed. AR pp. 58-59

G4-42Highestgovernancebody’sandseniorexecutives’rolesinthedevelopment,approval,and updating of the organization’s purpose, value or mission statements, strategies,

policies, and goals related to economic, environmental and social impacts.AR pp. 47-57, 71, 80-82, 90-92

G4-43 Boardcompetenciesandperformanceevaluationmeasurestakentodevelopmentcollective knowledge of economic, environmental and social topics. AR pp. 88-90

G4-44

Processes for evaluation of the highest governance body’s performance with respect to governance of economic, environmental and social topics. Report whether such

evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment.

AR pp. 81, 83, 90

G4-45Highestgovernancebody’sroleintheidentificationandmanagementofeconomic,

environmental and social impacts, risks, and opportunities. Include the highest governance body’s role in the implementation of due diligence processes.

AR pp. 73-80, 86-87

G4-46 Highestgovernancebody’sroleinreviewingtheeffectivenessoftheorganization’sriskmanagement processes for economic, environmental and social topics. AR pp. 73-80

G4-47 Frequency of the highest governance body’s review of economic, environmental and social impacts, risks, and opportunities. AR pp. 71, 80-82, 90-92

G4-48 Highestcommitteeorpositionthatformallyreviewsandapprovestheorganization’ssustainability report and ensures that all material Aspects are covered. AR pp. 71, 80-82, 90-92

G4-49 Process for communicating critical concerns, nature and number. AR pp. 71, 80-82, 90-92

G4-50 Nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them. AR pp. 71, 80-82, 90-92

G4-51 Remuneration policies for the highest governance body and senior executives. AR p. 85

G4-52

Process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of

management. Report any other relationships which the remuneration consultants have with the organization.

AR p. 85

G4-53 Howstakeholders’viewsaresoughtandtakenintoaccountregardingremuneration,including the results of votes on remuneration policies and proposals, if applicable. AR pp. 78-79, 85


G4-52

Process for determining remuneration. Report whether remuneration consultants are involved in determining remuneration and whether they are independent of management.

Report any other relationships which the remuneration consultants have with the organization.

AR p. 85

G4-53 Howstakeholders’viewsaresoughtandtakenintoaccountregardingremuneration,including the results of votes on remuneration policies and proposals, if applicable. AR pp. 78-79, 85

G4-54Ratio of the annual total compensation for the organization’s highest-paid individual in each countryofsignificantoperationstothemedianannualtotalcompensationforallemployees

(excluding the highest-paid individual) in the same country.

Omitted, not currently part of internal accounting metrics

G4-55

Ratio of percentage increase in annual total compensation for the organization’s highest-paidindividualineachcountryofsignificantoperationstothemedianpercentageincreasein annual total compensation for all employees (excluding the highest-paid individual) in the

same country.

Omitted, not currently part of internal accounting metrics

G4-56 Organization’s values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. AR pp. 3, 47, 62-64

G4-57 Internal and external mechanisms for seeking advice on ethical and lawful behavior, and matters related to organizational integrity, such as helplines or advice lines. AR pp. 63-64

G4-58Internal and external mechanisms for reporting concerns about unethical or unlawful

behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or hotlines.

AR pp. 63-64

Legend:AnnualReport–ARSustainabilityReport–SR


SPECIFIC STANDARD DISCLOSURES – ECONOMIC

INDICATOR SHORT DESCRIPTION DATA, PAGES BOUNDARY

ASPECT – ECONOMIC PERFORMANCE

G4-DMA

We shall maintain our standing and reputation as the Philippines’ leading real-estate developer. We develop integrated, masterplannedmixed-usecommunitiesingrowthcentersasplatformsforourend-to-endrealestateproducts–rangingfromresidential,retailandofficedevelopments,aswellashotelsandislandresorts,toconstructionandpropertymanagementservices.Ourlong-termgrowthisbuiltonthismarket-leadingplatformandourfive-pillarstrategyofgrowth,marginimprovement,capitalefficiency,andbrandbuilding.

G4-EC1 Direct economic value generated and distributed SR p. 49 Ayala Land

and subsidiaries

ASPECT – MARKET PRESENCE

G4-DMAExpansion into new growth centers provides us with opportunities for creative and sustainable solutions that distinguish our real estate products. Our projects help stimulate the local economies, contribute to local employment, and improve public infrastructure where we establish our presence.

EC6Proportion of senior management from hired local community

100%ofSeniorManagement,withrankVicePresidentand above are Filipinos

Ayala Land and subsidiaries

ASPECT – DIRECT ECONOMIC IMPACT

G4-DMA We see ourselves as a strong partner in nation-building.

EC7Development and impact of infrastructure investment and services supported

SR pp. 20-27, 43 All construction projects in 2014; mature estates

EC8Significantindirecteconomicimpacts, including the extent of impacts

SR pp. 20-27, 43 All construction projects in 2014; mature estates

ASPECT – PROCUREMENT PRACTICES

G4-DMA

AyalaLandutilizesathird-partyvendor/supplierpre-qualificationsystemtoscreenforlegitimacyandcreditworthinessofoursuppliers.Potentialenvironmentalimpactsareidentifiedduringthetechnicalevaluationofpre-qualifiedvendorsandproductsduringtheactualprocurementexercises,mostespeciallyforprojectswithenvironmentalsensitivities.VendorsandsuppliersarestronglyencouragedtoconformwithAyalaLand’sVendors’CodeofEthics,andabidebythesamecodeintheirdealings with their subcontractors. The Code provides guidelines on the following aspects: labor practices, health and safety, environment, management system, and ethics. Incidents involving the supply chain are also reviewed through the enterprise-wide risk management system, and used as basis for improvement.

EC9 Spending on local suppliers SR p. 49 Ayala Land and subsidiaries

SPECIFIC STANDARD DISCLOSURES – ENVIRONMENTAL


ASPECT – MATERIAL

G4-DMA Weoptimizeplantresourcesandoptimizematerialsefficiencyinourconstructionactivities.

EN1 Materials used by weight and volume SR pp. 30, 50 All 2014 construction

projects of MDC

EN2Percentage of materialused that are recycled input material

1. Rebar - As per Steel Asia, there is 88.6% post consumer recycled content and 6.5% preconsumer recycled content

2.Cement-containsflyashof30%cementreplacement

3. 1,955 tons of rebars and metal were recycled

MDC


ASPECT – ENERGY

G4-DMA

ThePhilippineshasoneofthehighestenergycostsinSoutheastAsia,andenergyefficiencyisasmuchabusinessdecisionas it is an environmental concern for Ayala Land. Energy savings are achieved by the Company through: 1) the use of low-energytechnologysuchasLEDlights,motionsensorsincommonareasofnewbuildings,andretrofittingoldones,whereappropriate;2)managementsystemsusingintelligentenergy-efficientequipmenttocontrolpumps,motors;and3)inclusionofenergyefficiencymetricsinpropertymanagers’performanceevaluation.AyalaLandalsohastwosubsidiaries,PhilEnergyand DirectPower that design and install district cooling systems (DCS), engage in retail electricity supply, and explore new energy savings technologies for Ayala Land properties and other clients.

EN3Energy consumption within the organization

SR p. 32All APMC-managed properties, construction activities, hotels

and resorts properties

EN4Energy consumption outside the organization

23 sold residential properites (vertical and horizontal) posted 11,699,492 kWh of consumed electricity

23 residential properties managed by APMC

EN5/CRE1 Energy intensity SR p. 50 APMC-managed properties

EN6 Reduction of energy consumption

The following initiatives in our investment properties enables our locators, tenants, and customers to reduce their energy requirements in the use of our development: 1) Replacement of oldchillerswithhighefficiencychillersthatconsumes30%to40%lower electricity 2) Installation of Lepro seva which reduces energy consumption of pumps and motors by 25-40% 3) Installation of VariableFrequencyDrivesallowsustogeneratesavingsofupto20% 4) Installation of escalator sensors enables us to generate 5%-20% savings on escalator operation depending on passenger traffic5)InstallationofLEDlightswhichprovide15%savingsonlighting consumption.

APMC-managed properties

ASPECT – WATER

G4-DMA

Ayala Land complies with the national law (Philippine Water Code) and local policies regulating water extraction and utilization. Our developments only utilize water district suppliers such as Manila Water and Maynilad if they operate in the project sites. For properties outside of their coverage area, Ayala Land coordinates with the local water district suppliers to lessen and ultimately eliminate the use of deepwell/ ground water. Annually, we have a target water metric per type of property that is included in our Key Result Areas (KRA). On average, we improve our performance by at least 3% year-on-year.

CRE2 Buildingwaterintensity APMC-Managed Properties: 0.56 cum/sqm/year APMC-managed properties

EN8 Total water withdrawal by source SR p. 35

All APMC-managed properties, construction projects, hotels

and resorts properties

EN10Percentage and total volume of water recycled and reused

InElNidoResorts:ProductwaterofSTPusedfortoiletflushingandwateringplants.LandscapingandtoiletflushinginNUVALIEvoliving Center

El Nido and Nuvali

ASPECT – BIODIVERSITY

G4-DMA

Ayala Land abides by local and national Philippine laws for biodiversity management. These laws include the National Integrated Protected Areas System, Wildlife Act, Environmental Impact Statement Law, Marine Protected Areas, and other relevant laws, directives and ordinances that protect biodiversity. Flora and fauna studies are part of our technical due diligenceprocesses.Thesestudiesguidemasterplanningexercises,andbesteffortsareundertakentominimizeanyimpacton the habitat. We have started to increase the number of native plant species in our urban developments and identify native/existingtreestands,andweexertbesteffortstomaintainheritageandprotectedtree/plantspecies.Weapplylessons learned from previous projects such as Anvaya to protect biodiversity, especially as we expand our hotels and resortsportfolioandmoveintoenvironmentallysignificantareasinthePhilippines.

EN11

Operational sites owned, leased, managed in, or adjacent to, protected areas of high biodiversity value outside protected areas

Anvaya–470hectaresElNido–25hectaresAlviera–1,125hectaresNuvali–1,860hectares Selected projects


EN12

Description of significantimpactsofactivities and products and services in biodiversity

SR pp. 17-21 Mature estates

EN14

Total number of IUCN red list species and national conservation list species

6 IUCN Red List Species. Olive Ridley Turtle (Lepidochelys olivacea) at Anvaya Cove. Palawan Peacock Pheasant (Polyplectron napoleonis), PalawanHornbill(Anthracoceros marchei),HawksbillTurtle(Eretmochelys imbrata), Green Turtle, (Chelonia mydas), Mantanani Scops Owl (Otus mantananensis) at El Nido Resorts. This list remains unchanged and was externally assured in the 2013 Sustainability Report.

Anvaya and El Nido Resorts

ASPECT – EMISSIONS

G4-DMA

The Philippines currently does not have regulations and policies for emissions and mainly focuses on adaptation measures initsclimatechangepolicy.AyalaLandisvoluntarilytrackingitsemissions.Ourreductionpolicyincreaseefficienciesinenergyuseofourprojectsthroughdesign,technologiesandbehavioralapproaches.Bytrackingandmeasurement,andrefiningourmetricsweareabletoidentifyareasforimprovement,aswellasbestpracticesthatwecouldusefordesignand planning, as well as operations.

EN15 Direct greenhouse gas emission 20,364tonsofGHGCO2e.

This covers 23 properties managed by APMC which had diesel requirement for 2014, all construction projects and batching plants, 5 out 8 properties under our hotels and resorts portfolio.

EN16Energy indirect greenhouse gas emission

269,753tonsofGHGCO2e.Whole building kWh consumption including tenants

EN17Other indirect greenhouse gas emission

7,057tonsofGHGCO2e. 23 sold residential properties

EN18/CRE3/CRE4

Greenhouse gas emission intensity SR p. 50

All APMC-managed properties, construction projects, hotels and resorts properties

EN19 Reduction of greehouse gas emissions

5,864.3tonsofGHGCO2e(VisayasandMindanaopropertiescalculatedwithloweremissionfactorforamoreconservativefigure) APMC-managed properties

ASPECT – EFFLUENTS AND WASTE

G4-DMA

ProjectswithpotentialenvironmentalimpactsarerequiredtosecureanEnvironmentalComplianceCertificate(ECC),whichalso stipulates that multipartite monitoring teams (MMTs) conduct regular inspections. Regular Philippine feedback channels such as the barangay (village) councils and LGUs have also been used by community members to provide feedback to the Company.Inaddition,ourincidentreportingprocess,whichwecallBusinessIntegritychannels,providesawaytoreportvarious concerns which may not necessarily be solely environmental in nature. Legitimate concerns are acted upon after due process

EN34

Number of grievances about environmental impactsfiledaddressed, and resolved, through formal grievance mechanism

Nomajororsignificantgrievances(causesmajorimpactsonhealth,safety, life, livelihood, and property) about environmental impacts havebeenfiledagainsttheCompany.AyalaLand,however,keepsopencommunication lines with LGUs and acts accordingly on concerns from immediatecommunitiessuchasinconveniencesduetotrafficduringconstruction.



SPECIFIC STANDARD DISCLOSURES – LABOR PRACTICES AND DECENT WORK


ASPECT – EMPLOYMENT

G4-DMAWe believe that organizational development is a key pillar of our growth strategy. We empower our employees by providing themaworkenvironmentthatpromotespersonalfulfillmentandprofessionaladvancement.Weprovidecompetitivecompensationandbenefitspackagethatisatparwithindustrystandards.

LA1

Total number and rates of new employee hires and employee turnover by age group, gender and region

2,992 employees for 2014 vs. 2,742 in 2013 representing a 9% increase. Refer to SR pp. 51-52


LA2

Benefitsprovidedtofull-timeemployees that are not provided to temporary or part-time employees, by significantlocationsofoperation

Life insurance, in-patient and out-patient health coverage, disability and invalidity coverage, retirement benefitsandmedicalallowancearethebenefitsreceivedby regular full-time employees


ASPECT – LABOR MANAGEMENT RELATIONS

G4-DMAWe believe in open lines of communication between management and employees. We conduct regular townhall meetings, observe and implement formal and informal grievance mechanisms, and administer an Organizational Climate Survey every two years.

LA4

Minimum notice periods regarding operational changes, including whetherthesearespecifiedincollective agreements

Weallot30daysnoticeforsignificantoperationalchanges


ASPECT – OCCUPATIONAL HEALTH AND SAFETY

G4-DMA

AyalaLandensuresfullandeffectivecompliancewithallrelevantgovernmentregulations.AyalaLandemployeestoundergoannualphysicalexamsandregularflu,cervical,andpneumoniavaccinations.Employeesreceivehealthriskassessments,timely information on prevention of serious diseases, and there is extensive health insurance coverage for both employees and eligible family members. We have our clinic with a company nurse and doctor available to employees. A Safety Council hasbeeninstitutedin2013andthereareprogramsandofficersforSafetyandPollutionControlforallfieldpersonnel.Wemandate the use of personal protective equipment, safety glasses, and dust masks among construction personnel. We have adetailedEmergencyResponsePlaninplaceandregularfire,earthquake,andemergencyresponsedrillsareconducted.

LA6

Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work related facilities

Ayala Land parent and APMC had zero incidence of work-related injury/illness as reported to DOLE. MDC recorded a total of: 1.02 Minor Total Recordable Incident Rate (TRIR) (includes injuries such as abrasions, bruises). 0.04 Major Total Recordable Incident Rate (TRIR) (includes fatalities, property damage 50k up) which involves 96 persons injured, 4 Work-Related Fatalities, and 138 Persons involved in Near Misses. Data from hotels and resorts are not yet included in this report, and will be covered in the next period.

Ayala Land Parent, APMC, and MDC

ASPECT – TRAINING AND EDUCATION

G4-DMA

Webelieveinholisticdevelopmentofourtalentandespousethecultureofbuildingfromwithin.Weofferqualitytrainingopportunitiesandcustom-fitcoursesthatrecognizeandaddresstheneedsofAyalaLand’sLeadershipPipeline.Trainingmodules cover business and technical knowledge, skill-building, values, ethics and corporate governance. Knowledge transferandbuildingofcapabilitiesisdonethroughthesharedeffortsoftheindividualandtheirboss,executives,managers and subject-matter experts.

LA9Average hours of training per year per employee by gender, and by employee category

25.62 hours. Refer to SR p. 53 Ayala Land and subisidiaries

LA10

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career ending

SR pp. 44-46 Ayala Land and subisidiaries

2014 Sustainability Report


SPECIFIC STANDARD DISCLOSURES – HUMAN RIGHTS


ASPECT – INVESTMENTS

G4-DMAOur due diligence processes in land acquisition ensures that our locational choices considers the rights of communities and legitimate claimants, in accordance with Philippine laws. Joint venture partners and subsidiaries are expected to provide support for legitimate community claims, and come up with mechanisms to protect minority rights.

HR1

Total number and percentage of significantinvestmentagreementsand contracts that include human rights clauses or that underwent human rights screening

Our due diligence process in land acquisition enables us to recognize locations with potential human rights impacts in relation to legitimate claims on ownership. We follow existing laws and regulations that safeguards human rights, thus there is no specificneedofincludinghumanrightsclausesinouragreements and contracts. Adequate legal research is undertaken to ensure that rights of legitimate claimants are recognized, and potential impacts mitigated.


ASPECT – FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

G4-DMAAyala Land protects freedom of association and has neither policies nor aspects of our operations that will prohibit any employee from exercising this freedom to unionize and the right to collective bargaining. Results of the collective bargaining benefitallnon-managementemployees,whethertheyaremembersoftheunionornot.

HR4

Operations and suppliers in which the right to exercise freedom of association and collective bargaining may be at risk and actions taken to support these rights

No aspect of our operations prohibits freedomof association


ASPECT – CHILD LABOR

G4-DMAOurCompensationandBenefitsguidelinesandourregularperformancereviewsofallemployeesensurethatallworkiscompensated according to Philippine labor laws and the Company's performance incentive program. Economic sanctions placed on erring employees do not include any form of unpaid labor.

HR6Operationsandsuppliersidentifiedashavingsignificantriskforincidentsof forced labor

Noaspectofouroperationshasbeenidentifiedashavingsignificantriskforforcedlabor


ASPECT – INDIGENOUS RIGHTS

G4-DMA

Our due diligence processes ensures that our locational choices considers the rights of indigenous peoples living in the area of operation, in accordance with the Indigenous People's Rights Act (IPRA) of the Philippines. We work with legitimate communityandnon-profitorganizationsoncapacitybuildingprogramstoincreaseopportunitiesforindigenousandlocalcommunities' participation in our value chain.

HR8

Total number of incidents of violations involving rights of indigenous peoples and actions taken

None of our operations and developments are located in ancestral domains, therefore there are no incidents involving the violation of rights of indigenous peoples


ASPECT – ASSESSMENT

G4-DMA HumanrightsofemployeesandstakeholdersofourvaluechainareprotectedthroughtheCompany'sadherencetotheLabor Code of the Philippines and other relevant laws protecting community rights.

HR9

Total number and percentage of operations that have been subject to human rights reviews or impact assessment

Our due diligence process in land acquistion enables us to recognize locations with potential human rights impacts in relation to legitimate claims on ownership. At the moment, however, there is no tracking system specificallycoveringhumanrightsassessment.Adequate legal research is undertaken to ensure that the rights of legitimate claimants are recognized, and potential impacts are mitigated


2014 Sustainability Report 63


HR12

Number of grievnces about humanrightsimpactfiled,addressed, and resolved through formal grievance mechanism

There were no reported grievances against Ayala Land and the subsidiaries concerning impacts on human rights Ayala Land and subsidiaries

SPECIFIC STANDARD DISCLOSURES – SOCIETY


ASPECT – LOCAL COMMUNITIES

G4-DMA

We collaborate with and consult local government and local community organizations to ensure that our large-scale mixed-use projects are relevant to host communities. Project teams review environmental, social, economic impacts of projects, design and develop communities in a manner that promotes long-term value, and support community programs to mitigate negative impacts on vulnerable groups in the area. As a company operating in a climate-vulnerable country, we also make sure that we respond to theneedsofcommunitiesaffectedbycalamities

SO1

Percentage of operations with implemented local community engagement, impact assessments, and development programs

100% of large-scale land development projects (50,000 square meters and above) were assessed for impacts and underwent the DENR Environmental Impact Assessment Process, which include scoping for community impacts. Project teams continue to monitor for impacts throughout theprojectcycleandrespondtoconcernsofaffectedcommunities and local government units.


SO2Operationswithsignificantactualand negative impacts on local communities

All new developments have possible impacts on surrounding communities. Projects in already urbanized areashaveimpactsontrafficandtransport.Tomitigatetheseimpacts,weundertaketrafficstudiesandensure that the intensity and duration are abated and are reversible. We work with local governments and incorporate transport facilities in our projects to serve the riding public. Thus, there were no projects that hadsignificantnegativeimpactsonthecommunities.Developments in non-urban areas may have impacts on agriculture production in neighboring areas. Our due diligence processes, however, ensure that our developments are located in areas zoned for commercial and residential use, minimizing the impact on agricultural activities and maximizing the economic potential of land resources.


ASPECT – ANTI-CORRUPTION

G4-DMA

Anti-corruptionisimportanttousatAyalaLand.OurCompanyhasbeendefinedbyourcontinuedcommitmentandfidelitytoour values and to doing things the right way. Our strict adherence to these high standards have been the bedrock upon which we have built our reputation. We have established policies and implemented best practices covering all entities and employees within AyalaLandGroupregardinganti-corruption.Theseincludethefollowing:1.CodeofEthicalBehaviorforallemployees;2.CodeofEthicalProcurementConduct;3.Vendor’sCodeofEthics;4.ConflictofInterestPolicy;5.WhistleblowingPolicy;6.EstablishmentofALIBusinessIntegrityorReportingChannelsthroughhttps://services.punongbayan-araullo.com/extdata/proactive.nsf/goto/aligroup;7.EstablishmentoftheAyalaLandEthicsCommittee;andthe8.ImplementationoftheVendorAudit.Alltold,ourgoodcorporate governance practices, which include anti-corruption initiatives, have been manifested in the positive performance of our businesses and in various corporate governance awards and recognition.

SO3

Total number and percentage of operations assessed for risk related to corruption and the significantriskidentified

Our enterprise-wide risk assessment exercises assessed 100% of our core business units (Residential, Shopping Centers,HotelsandResorts,ServiceslikePropertyManagementandConstruction)where24keySBU-specificrisksand8keyriskscommontoseveralSBUswereidentified.Fraudriskisoneofthesaid8keyriskswhichisunderthemonitoring/mitigationoftheofficeoftheFinanceGroupHead.


ASPECT – HUMAN RIGHTS GRIEVANCE MECHANISMS

G4-DMA

TheCompany’sBusinessIntegrityChannelsenableindividualstofreelyreportfraud,violationsoflaws,rulesandregulations,and any misconduct concerning Ayala Land directly, without fear of retaliation. Grievances are brought to our attention throughvariousmediasuchasthecompanywebsite,customerservicehotlines,externalaffairsdivision,andtheconcernedAyala Land business unit.


PR1

Percentageofsignificantproductand service categories for which health and safety impacts are assessed for improvement

All new projects are subjected to technical due diligence that assess for health and safety impacts on the environment, our customers, and surrounding communities


ASPECT – PRODUCT AND SERVICE LABELING

G4-DMACustomerserviceisakeycomponentofBrandBuilding,oneofAyalaLand'sfivepillarstrategy.Anannualcustomersatisfaction survey is undertaken across all APMC-managed properties to monitor and improve customer experience in our properties.

PR5 Results of surveys measuring customer satisfaction

In 2014, APMC scored 3.49 out of a possible high grade of 4 from our Customer Satisfaction Survey results. APMC also garnered higher satisfaction ratings of 94.33% (vs. 2013: 93.93%) on its Service Level Agreement (SLA). Our overall recommendation score from residents in our residential properties improved to 3.44 in 2014 (vs 2013: 3.30).

Note: The Customer Satisfaction Survey covers APMC-managed properties less than three years old such as malls, offices, car parks, estates and residential areas. This is facilitated by the parent company, Ayala Land.

The Service Level Agreement ratings cover the same type of APMC-managed properties older than three years. This survey is conducted by APMC.

APMC and Residential BusinessUnits

SPECIFIC STANDARD DISCLOSURES – PRODUCT RESPONSIBILITY


ASPECT – CUSTOMER HEALTH AND SAFETY

G4-DMA

Safety is our topmost priority when it comes to our operating principles. Our technical due diligence and project development process identify our potential positive and negative impacts on the environment, community, and customers from site assessment to delivery of our real-estate products and property management. Our sustainability checklist enable us to monitor in our projects the implemenation of proper design and operational procedures that ensure the safety of our customers.

66 Let’s build sustainable communities

2014 Sustainability Report 67

68 Let’s build sustainable communities

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Corporate InformationTower One and Exchange PlazaAyala Triangle, Ayala AvenueMakati City, 1226 PhilippinesTel +63(2) 908 3000Fax +63(2) 848 5336

Corporate website: www.ayalaland.com.ph

For inquiries or concerns on this report, please contact:

30F Tower One and Exchange PlazaAyala Triangle, Ayala AvenueMakati City, 1226 PhilippinesTel +63(2) 9083832Fax +63 (2) 7594972

Sustainability website: www.ayalaland.com.ph/sustainability

Tel +63(2) 845 5746 +63(2) 845 5038Fax +63(2) 845 5515

AcknowledgmentsProduced by Ayala Land, Inc.

Board Sustainability CommitteeJaime LayaRizalina MantaringBernard Vincent Dy

Sustainability CouncilArt CorpuzRaul IrlandaJoel LunaLilit TumboconJaime Ysmael

Sustainability TeamAnna Maria GonzalesNathan Casanova

Corporate CommunicationsSuzette NavalKay RiveraMaleene Camo

External AssuranceDNV-GL

Data Contributors Leo AbotRodielyn AguilarDenmar AlarconLeah Alay-ayArlene AraoRodney AsinasFarah AtienzaAllan BarreraDave BlasBenjie BorjaNoah BubodMary Ann CastañedaIvan DaguioJason de las AlasOliver DudlerDodo EnriquezDindo FernandoChristian GaciasMike GarciaArnel HernandezJeo IgnacioRichard JumawanRandy LimNikko Lim

Concept, Design, and LayoutMedium3

Additional PhotographyCox PhotographyNorth Eyes Productions

Ruel LlanesJun MabingnayChris MacasaetJoan MalangKath MarianoJimmy MatiasNatz NañascaAlvin OdejarGina OrisPaolo PaternoOrl PaulePeachy PeñafloridaKim PomperadaRhea ReyesChe SerenoShirley Silva-MazonDes SuarezBuddy TanMaphi TandocChelo TironaAgatha ValeraPachot VillanuevaEli Yañeza


Tower One and Exchange PlazaAyala Triangle, Ayala AvenueMakati City, 1226 PhilippinesTel +63(2) 908 3000Fax +63(2) 848 5336www.ayalaland.com.ph

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Let’s build sustainable communities · Global City (BGC), and Nuvali, we continue to increase our footprint in building estates that benefit more people nationwide. With over 8,000