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A Low Carbon Portfolio by 2030.
AC Energy’s sustainability framework is built on three focus areas:
Protecting the Environment Community Investments Photo: North Luzon Renewables Wind Farm in Pagudpud, Ilocos Norte.
Enabling Sustainable Recovery 26 AC ENERGY CORPORATION 2020 INTEGRATED REPORT 25.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES CREATING VALUE 2020 HIGHLIGHTS
Amidst the pandemic, AC Energy showed resilience to “build back better” and pursue energy transition through sustained renewable energy investments to counter the socioeconomic crisis. The company remained committed to sustainable development and drive the renewables expansion given its key role in the green-led recovery. These renewable energy investments help reignite the economy and create jobs while mitigating climate change.
To further augment its generating capacity, AC Energy carried out the construction of five projects in 2020 with an aggregate capacity of 375 MW. These projects include the 120 MW solar project and 40 MWh battery storage project i n Alaminos Laguna, the 60 MW solar project in Palauig, Zambales, and the 150 M W quick response thermal plant in Pililla, Rizal.
The company is also constructing a renewable energy laboratory in Mariveles, Bataan which wi ll test various new technologies in solar and battery storage. This will help the company select the best technologies as it scales up its investments in solar and storage in the coming decade.
AC Energy now has 1,034 MW of attributable capacity in the Philippines, with almost half of the capacity coming from renewable sources.
AC Energy’s transformation is well underway, and it is well-positioned to accelerate its sustainable investments as it strives to play a meaningful role in a green-led recovery.
Total Attributable Capacity 1,034 MW.
Total Renewables Capacity ~491 MW.
Enabling Community Progress.
As the 120 MW GigaSol Alaminos solar farm takes shape, AC Energy showcases its ability to play a prominent role in providing clean energy to the grid while spurring inclusive and sustainable economic growth to its host communities.
For the local community, the solar development brings significantvalue by creating job opportunities that reignite the economy amidst the pandemic, showing the social and economic benefits of sustainable investing.
The solar farm in Alaminos is a living example of AC Energy’s efforts to create shared value in the communities where it operates - ensuring renewable energy supply while strengthening community vitality.
A LOW CARBON PORTOLIO.
Energy with purpose means operating safely, reliably and sustainably.
A Low Carbon Portfolio by 2030.
Sustainable Development and the Energy Transition.
Renewables Share in 2020 47%
Photo: NorthWind Wind Farm in Bangui, Ilocos Norte.
Enabling Sustainable Recovery 28 AC ENERGY CORPORATION 2020 INTEGRATED REPORT 27.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES CREATING VALUE 2020 HIGHLIGHTS
The Road to International Certification.
Committing to sustainability means committing to responsible plant operations in the most efficient manner with the least possible environment impact. In early 2020, AC Energy set to achieve ISO certification in the areas of Quality Management System (ISO 9001:2015), Environmental Management System (ISO 14001:2015) and Occupational Health and Safety Management System (ISO 45001:201), with the aim to implement effective and robust processes to increase plant efficiency and productivity while generating consistent, measured and monitored output. AC Energy is targeting to secure the certifications within 1H 2022.
Ensuring Reliable and Sustainable Energy.
Operating our plants at top level efficiency must be in parallel with the scaling up of our renewables business.
As AC Energy scales up its renewables business, it also ensures its power plants are operating at top efficiency. In 2020, the company was able to achieve significant improvement in operating efficiencies and reliability for its plants. The improvements were borne out of the plant renewal initiatives that AC Energy carried out when it started its transformation journey in 2019. With a focus on strate gic investments, the company also operates thermal assets to complement its renewable assets and ensure power reliability, with these assets increasing its availability by 29 percentage points.
In July 2020, Power Barge 102 in Iloilo had an unfortunate accident which led to an oil spill of about 268,000 liters of bunker fuel off the Iloilo strait. The oil spill had been subsequently contained and collected using the Shoreline Cleanup Assessment Technique conducted by a third-party service provider. AC Energy collaborated with the Department of Environment and Natural Resources - Environment Management Bureau Region 6, the International Tanker Owners Pollution Federation and Brand Marine Consultants to conduct continuous monitoring of the environment through the University of the Philippines Visayas. AC Energy places the health and safety of its people on top of its agenda.
A LOW CARBON PORTOLIO.
Significant improvement in operating efficiencies and reliability.
Significantly improved operating margins.
PLANT OPTIMIZATION AND RELIABILITY.
For its wind farms, AC Energy tapped WindESco for assessment studies to be conducted and enhancements to be implemented on its wind turbine operations, resulting in increase in energy yield for up to 95%. Detailed maintenance of its substations, feeders, switchgears and transmission lines also contribute to the improved availability of the plants.
Consistently implementing health and safety protocols in its operations, SacaSol and IslaSol achieved 1 million safe manhours without LTA, alongside strict health protocols to address the threat of COVID-19 at the workplace.
HEALTH AND SAFETY AT THE FOREFRONT.
In October of 2020, a senior executive was appointed to lead health and safety and an immediate focus ensued to establish an enterprisewide health and safety progra m. The program aims to elevate and transform the company’s health and safety culture, review and enhance policies, and establish proactive metrics.
The centerpiece of the program is a focused and plant-exclusive two-day Boo t Camp to which leaders of each plant were invited and exposed to various experiential and instructio nal sessions that underscore the importance of foundational health and safety practices such as stop-work authority, hazard identification, and empowerment.
Constant, enjoyable, and rigorous weekly interactions between plant and corporate Health and Safety Leads, meant to rei nforce the learnings and enhance collaboration, followed the various Boot Camps.
Most of all, the health and safety is a priority for plant leadership and demonstrated, among other ways, by the fact that it is their biggest deliverable, weight-wise, for 2021. Furthermore, the functional H&S leads deployed at each plant and site now feel they have strong corporate backing and support in the programs they need to implement.
AC ENERGY CORPORATION 2020 INTEGRATED REPORT Enabling Sustainable Recovery 30 29.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES 2020 HIGHLIGHTS CREATING VALUE
AC Energy currently monitors and protects over 910 hectares of forestlands and habitats spread over 15 sites in the Philippines. The company conducts biodiversity assessments periodically to determine the types of species on these project sites and their vulnerability status, and invests on habitat protection and restoration. Since 2018, AC Energy has spent over ₱34.87M towards initiatives that aim deliver a positive impact on biodiversity.
PROTECTING THE ENVIRONMENT.
The protection and management of these ecosystems are a critical component of our sustainable development strategy.
Protecting the Environment.
Stewards of the Environment.
Forestlands protected 910 hectares.
Investment on Environment ₱34.87M.
Trees planted at the Conservation Estate ~400,000.
The Conservation Estate in Ilocos Norte Since reforestation initiatives began in the 700-hectare Conservation Estate, close to 400,000 seedlings have been planted, including endemic and fruit-bearing trees. The area has become an important wildlife habitat in the Northern Luzon region, and the forests witness an increase in biodiversity as AC Energy, with the help of the locals, create an ecologically diverse landscape through analogue forestry. And as the trees grow, the animals return – the forest is now home to 117 species of birds, 33 of which are endemic, and four are classified as vulnerable. Additionally, studies identified the presence of near-threatened monkey species, bats and other animals. AC Energy is constantly working with local communities, creating awareness on coastal environment protection, turtle conservation and biodiversity, to help them understand how their livelihood is directly linked to the natural resources and wildlife.
Other Environmental Initiatives In Bulacan, the five-year, 50-hectare Bininit Reforestation has been completed in partnership with the Bulacan Dumangat Community Association and MENRO-Bulacan, planting around 19,000 seedlings. In Guimaras, the five-year, 27-hectare Aroboretum Project has been completed, planting over 6,000 trees in the forest with the objective to be an educational resource for students. In Alaminos, in partnership with PUNLA, AC Energy has set a target to turnover around 132,000 seedlings in three years.
Photo: Black naped oriole at the Conservation Estate, Ilocos Norte *from North Luzon Renewables.
Enabling Sustainable Recovery 32 AC ENERGY CORPORATION 2020 INTEGRATED REPORT 31.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES CREATING VALUE 2020 HIGHLIGHTS
PROTECTING THE ENVIRONMENT.
Integrating Circular Approach.
To help reduce the environmental impact in its construction sites and host communities, AC Energy developed a program to sustainably use its resources, and eliminate waste by reusing or recyc ling them. In Alaminos and Pal auig construction sites, a total of 8,645 kg of plastic from solar panel packagi ng were upcycled into eco-bricks, which were then used as construction materials for the plant facilities.
AC Energy aims to extend this circular approach and close the loop within its project locations through the development of Eco-hub recycling facilities. This program will not only help manage the issues on community plastic wastes, but will also create income and livelihood for the community. A partnership with the Provincial Government of Ilocos Norte is underway for implementation this year. It will be the first of many that AC Energy envisions to create within its developments.
Ayala Land's Carbon Forests.
Plastic Waste Recycling 120MW Solar Farm.
Nursery.
Future Eco Learning Hub.
Future Community Livelihood Center.
Turtle Conservation Ongoing awareness and training programs for environmental preservation and biodiversity being conducted by AC Energy’s wind farms, North Luzon Renewables and North Wind, empower the locals to become stewards of the Conservation Estate in Ilocos Norte. In 2020, over 13 turtles were rescued and released into the sea, 18 turtle nests have been recorded and monitored, 240 eggs were managed with a hatching rate of 74% , with over 398 eggs being monitored.
Marine Life Support In October 2020, South Luzon Thermal Energy Corporation in Batangas coll aborated with the Department of Environment and Natural Resources to support and monitor the growth of a 10-hectare mangrove plantation in C alatagan. In March 2021, AC Energy’s Guimaras Wind signe d an agreement with the Dumangas local govern ment to develop a fish sanctuary through the placement of artificial reefs to supplement the habitat of marine life in the area.
We aim to “close the loop" in our project locations, and help communities live in a pollution-free environment.
AC ENERGY CORPORATION 2020 INTEGRATED REPORT Enabling Sustainable Recovery 34 33.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES 2020 HIGHLIGHTS CREATING VALUE
Our sustainability initiatives support the development and prosperity of our host communities, with the ultimate goal towards self-actualization.
Community Investments.
Investment in Communities ₱116.63M.
Lives Reached 35,994.
Households Uplifted 40,609.
COMMUNITY INVESTMENTS.
Education Aside from its nationwide Brigada ng Ayala initiative, in Ilocos Norte, AC Energy, through North Luzon Renewables, has an ongoing scholarship program for the youth of Pagudpud. Since 2014, the program has already produced 12 graduates.
Livelihood and Eco-Tourism AC Energy’s Guimaras Wind launched the Green Spark Project in Q4 2020, a program that promotes the use of locally made “bambikes” or bamboo-made bikes within the wind farm. With the bamboo bikes set up near the wind farm’s Pasalubong Center, the local community have found livelihood opportunities in the program.
Enabling Community Progress.
As a priority focus area in its sustainable growth, AC Energy believes that the socio-economic progress of its host communities is a key metric of the company’s business success, and supporting the communities’ self-reliance and economic security enables AC Energy to create shared value.
Since 2018, AC Energy has invested over ₱116.63 million towards its partner host communities. As of 2020, AC Energy group has uplifted close to 35,994 individuals, 40,609 households, and 437 organizations through its community initiatives, engaging in a range of social development initiatives to ensure the health and livelihood of the local communities.
Disaster Assistance Programs.
With the increase in force and frequency of natural disasters, along with recovery costs, AC Energy has always ensured the quick implementation of measures to mitigate these events and leverage on the Ayala Group’s strengths. AC Energy supported the affected communities of the Taal Volcano eruption by donating solar lamps to families who were living without access to electricity. In December 2020, in lieu of holiday festivities, AC Energy donated ₱2.1M to Ayala Foundation in support of families in Luzon who were greatly impacted by typhoons Rolly and Ulysses. The company also mobilized truckloads of water and sent sacks of rice and medical supplies to the communities. In Ilocos Norte, aside from providing aid during disasters, the company’s wind farms, North Luzon Renewables and NorthWind, continuously train the locals on disaster preparedness and response.
Photo: The Conservation Estate in Ilocos Norte.
Enabling Sustainable Recovery 36 AC ENERGY CORPORATION 2020 INTEGRATED REPORT 35.
MESSAGE INTRODUCTION GOVERNANCE ANNEXES CREATING VALUE 2020 HIGHLIGHTS
COMMUNITY INVESTMENTS.
Powering the “WTC We Heal as One Center” and other facilities To augment the capacity challenges in hospitals, the Ayala Group, together with the ICCP Group and Manila Exhibition Center, Bases Conversion Development Authority and the national government, converted the World Trade Center into a designated quarantine facility. AC Energy covered the electricity cost together with partner donor Manila Electric Co., and provided critical supplies such as bed frames, mattresses, pillows and other furnishings, for a total package valued at ₱24 million.