ACEN Earns Leadership Status in CDP's Climate Change Assessment Efforts

ACEN Achieves Leadership Status in Climate Change Assessment

ACEN has recently reached a significant milestone by achieving Leadership level and a commendable A− rating for its climate initiatives from CDP. As a global non-profit organization, CDP evaluates corporate environmental transparency and performance in aspects such as climate change, deforestation, and water security. This achievement marks a notable improvement from ACEN's previous B rating, further demonstrating the company's unwavering commitment to sustainable practices.

In order to attain Leadership status, companies are required to exhibit exemplary practices in climate action, environmental governance, transparency, risk management, and target formulation. CDP employs a scoring system ranging from A (the highest) to D− (the lowest), based on the thoroughness of an organization’s disclosures, their awareness of environmental challenges, management strategies, and progress towards sustainability goals.

ACEN has been actively participating in CDP's climate disclosure since 2022, joining a community of over 24,800 organizations contributing to the most extensive and comprehensive dataset on environmental actions worldwide. The insights provided by CDP empower a range of stakeholders, including investors, companies, cities, and governments, to make informed decisions that prioritize sustainability.

Jonathan Back, the CFO and Chief Strategy Officer of ACEN, expressed his views on this accomplishment, stating, "Achieving CDP Leadership status reflects ACEN's disciplined approach to integrating sustainability into our business strategy. Transparency and robust climate governance are crucial for ensuring long-term value for our stakeholders, while simultaneously propelling the energy transition forward. Our enhanced rating reinforces our dedication to responsible growth, along with expanding renewable energy investments that yield both financial and environmental benefits."

Leading the Charge in Climate Action

ACEN has consistently taken initiatives to lead in climate action, notably by executing a groundbreaking market-based Energy Transition Mechanism (ETM) in November 2022. This pioneering effort included the divestment of a 246 megawatt (MW) coal plant located in Batangas, with a commitment to its early retirement by 2040, which is 15 to 25 years ahead of the conventional lifespan of coal plants (typically 40–50 years). This transition is expected to reduce carbon emissions by up to 50 million tons.

Building on this momentum, ACEN's ETM project is now serving as a model for Transition Credits, aimed at hastening the plant's retirement to 2030, which is ten years sooner than initially planned. This accelerated timeline is projected to eliminate an additional 19 million tons of carbon emissions.

Transition Credits represent high-integrity carbon credits designed to facilitate a responsible and just phaseout of coal, while simultaneously replacing it with clean energy solutions. ACEN has collaborated with the Monetary Authority of Singapore (MAS) and The Rockefeller Foundation to develop this innovative initiative in accordance with Article 6 of the Paris Agreement. Notably, the governments of the Philippines and Singapore have shown their support, culminating in a Memorandum of Understanding signed in August 2024, with plans for an Implementation Agreement set for completion later this year.

Moreover, ACEN was the first energy company in Southeast Asia to roll out a comprehensive Net Zero roadmap. This roadmap outlines near-term emission reduction targets aligned with the Greenhouse Gas (GHG) Protocol and the latest climate science, as well as long-term goals consistent with the deep decarbonization of the power sector.

About ACEN

ACEN is the listed energy platform of the Ayala group, actively leading the charge in the global energy transition. With a rapidly expanding presence across various regions including the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the USA, ACEN currently boasts an attributable renewable energy capacity of 6.8 gigawatts (GW) across operational, under-construction, and committed projects.

A true pioneer in promoting a shift towards sustainable energy, ACEN is committed to delivering clean, reliable, and affordable power throughout the Asia-Pacific region. With an ambitious goal to increase its renewable energy capacity to 20 GW by 2030, the company aims to achieve 100% renewable energy generation by 2025, ultimately targeting Net Zero greenhouse gas emissions by 2050. This commitment underscores ACEN's pivotal role in fostering a carbon-neutral future and navigating the global energy transition.