ACEN secures A- rating for climate action from CDP
ACEN Corp., the listed energy platform of the Ayala group, has obtained “Leadership” level and an A- rating for its climate actions from CDP, a global non-profit that assesses corporate environmental transparency and performance in climate change, deforestation, and water security.
“Achieving CDP Leadership status reflects ACEN’s disciplined approach to integrating sustainability into our business strategy. Transparency and strong climate governance are key to ensuring long-term value for our stakeholders while accelerating the energy transition,” Jonathan Back, ACEN’s group chief finance officer and chief strategy officer, said in a media release on Monday.
“Our improved rating reinforces our commitment to responsible growth and scaling renewable energy investments that drive both financial and environmental impact,” he added.
To achieve Leadership status, companies must demonstrate “best practices in climate action, environmental governance, transparency, risk management and target setting.”
CDP scores organizations from A as the highest to D- as the lowest, based on the comprehensiveness of their disclosures, awareness of environmental issues, management strategies and progress toward sustainability goals.
ACEN’s A- rating is an improvement from its previous B rating.
The company has joined CDP’s climate disclosure in 2022, along with over 24,800 organizations, in contributing to the “world’s largest and most comprehensive” dataset on environmental action.
“CDP’s insights empower investors, companies, cities and governments to make informed, sustainability-driven decisions,” ACEN said.
In November 2022, ACEN completed the world’s first market-based Energy Transition Mechanism (ETM), which involved divesting a 246-megawatt coal plant in Batangas and committing to its early retirement by 2040. This is ahead of the typical coal plant lifespan of 40-50 years.
This initiative is projected to reduce up to 50 million tons of carbon emissions.
“Building on this momentum, ACEN’s ETM project is now serving as a pilot for Transition Credits, with the goal of accelerating the plant’s retirement to 2030 — ten years earlier than planned — cutting carbon emissions by an additional 19 million tons,” the company said.
To date, the company holds about 6.8 gigawatts of attributable renewable energy capacity in operation, under construction, and committed projects.
It operates across a diverse range of markets, including the Philippines, Australia, Vietnam, India, Indonesia, Laos, and the US. — Sheldeen Joy Talavera
