We place ESG and sustainability
at the heart of what we do –
for future generations
Our strategic
sustainability approach
Sustainability is integral in ACEN’s business strategy. It is at the core of who we are and what we do. As one of the fastest growing renewable energy platforms in the Asia Pacific, we thrive on creating the most value for both society and our business.
As we grow our renewables portfolio, we continue to deliver on our climate commitments. The successful implementation of our Energy Transition Mechanism puts us in a position to play a leading role in the energy transition in the region.
We take pride in the partnerships we made in December 2023 with the Rockefeller Foundation’s Coal to Clean Credit Initiative and the Monetary Authority of Singapore to implement the world’s first coal-to-clean credit pilot project complement our early coal retirement for the 246 MW SLTEC coal plant by 2040.
The transition credit initiative will potentially accelerate the transition of coal to cleaner technology as early as 2030. If successful, this can be scaled up and replicated by other coal fired power plants not only in the Philippines but across the globe.
In embracing our role as a catalyst for sustainable change, we recognize that our journey is one that we cannot do alone. Our collaborative efforts, innovative spirit, and commitment to sustainability are the driving forces in making a positive impact on the environment and society.
Through the integration of our ESG principles into our operations, we are not only redefining the future of energy, but also laying the foundation for a more sustainable tomorrow, where energy not only powers our economies but also safeguards our planet for generations to come.
Profile
Policies
Reports
Leading the energy transition in the region
Our approach
We continue to grow our renewables portfolio while delivering our climate ambitions that will provide access to clean, reliable and affordable energy.
Our focus
We aim to become a 100% renewable energy company by 2025, and develop, operate and own 20 GW of renewables by 2030.
We target to deliver our commitment for the early retirement of the 246 MW coal plant by 2040 – which we successfully divested in 2022 through an Energy Transition Mechanism.
We aim to deliver our commitment to become a Net Zero GHG emissions company by 2050.
Aspiring excellence in environmental management
Our approach
We are committed to protecting and conserving biodiversity, maintaining ecosystem services and adequately managing living natural resources throughout the lifecycle of our power plants.
Our focus
We safeguard natural habitats and biodiversity to help address climate impacts.
We continue the implementation of no net loss and mitigation hierarchy in developing our projects.
Investing in our people
Our approach
Our energy transition is a journey with our workforce to ensure a Just Transition that leaves no one behind.
Our focus
We aim to enhance the health, safety and wellbeing of our workforce.
We work to develop a diverse workforce and inclusive workplace culture.
Creating inclusive communities
Our approach
We develop renewable projects to create greater impact and tangible benefits for the communities where we operate.
Our focus
We ensure that our presence will provide opportunities that will benefit our host communities by creating jobs, livelihood and improved access to human basic needs.
Integrating sustainability into our business operations
Our approach
We continue to grow our renewables portfolio while delivering our climate ambitions that will provide access to clean, reliable and affordable energy.
Our focus
We proactively work to enhance our ESG reporting in order to deliver on our sustainability ambitions.
We continue to collaborate with all our stakeholders and place their interests at the core of our operations.
We align our processes in all the jurisdictions where we operate and ensuring ESG management practices.
We strive for leadership diversity and inclusion to foster a culture of excellence.
We align our disclosures and policies with the difference ESG frameworks and data providers.
Sustainability highlights
“We have accelerated our sustainability progress, integrating environmental, social and governance concerns into every business decision.”
ESG RATINGS
Progress compared to baseline score.
CDP: Climate Change score
Sustainalytics: ACEN garnered a lower ESG risk rating from high risk to medium risk
Environment
Pioneering early coal retirement
Sustainability-linked loan facility for the development of solar projects
GHG emissions on scope 1
62% reduction
Conservation Estate in Ilocos Norte
~94 KT carbon stored
Since 2014, through our forest protection program, we have ~94 kilotons of carbon stored, equivalent to 345 kilotons of carbon dioxide avoided, covering ~625 hectares of our Conservation Estate in Ilocos Norte.
We partner with UP Los Banos in the development and implementation of the methodology. The assessment of the carbon stock additionality was verified by Carbon Check ISO 14064 – 2 (2019).
Trees planted
~978,000
Across 39 sites in our areas of operation
Social
Just Energy Transition roadmap
At the COP28 in Dubai, ACEN launched its Just Energy Transition roadmap in partnership with global coal-toclean accelerator.
Human capital
956 employees
Employee engagement score
92 %
Percentage of ACEN employees who responded favorably to the nine Sustainable Engagement items in a survey conducted by Willis Towers Watson.
Top talent retention rate
96 %
Implementation of framework to align our programs with the Social Progress Index to measure our progress.
Job created
~20,450
Community investments
~₱636 M
Governance
Integrating sustainability into our operations, we have established supplementary policies in 2023 to strengthen governance on crucial ESG themes: ESG Policy, Supplier Code of Conduct, Learning and Development Policy and Human Rights Policy
Diversity in leadership
Women in leadership positions
42 %
We empower our women and allow them to thrive towards true inclusion, recognizing their amazing contributions in the renewable energy space.
Our materiality process
To determine economic, environmental, social and governance issues that are important to ACEN and our stakeholders, we conducted a series of materiality exercises in collaboration with an external consultant and business unit heads. identifying topics that are important to ACEN both financially and from an external impact perspective.
Our material ESG issues were updated to reflect our engagements with investors, rating institutions, and other stakeholder concerns regarding ESG. This was supplemented by research activities on the latest developments around sustainability reporting frameworks and industry-specific sustainability issues. Roadshows were also conducted with our leadership team and the board-level Sustainability Committee to validate our material ESG issues and identify strategic action plans around key ESG issues moving forward.
We conduct the materiality process every 1-2 years to ensure that material ESG topics and our ESG strategy are continuously updated to ensure relevance to our stakeholders.
ACEN’s material issues
Environment
Circular economy
Energy efficiency & carbon reduction
Climate risks and opportunities
Biodiversity
Air pollution
Waste management
Environmental policy & certifications
Social
Human rights
Occupational health and safety
Supply chain sustainability
Human capital management
Local communities
Customers
Economic/Governance
Energy infrastructure
Business ethics & good governance
Sustainable finance
innovation, digitalization, cybersecurity
Our ESG Policy
Paving the way to integrate sustainability in the way we work and influence our decision-making on strategy, capital allocation, operations, governance, and culture is our ESG Policy, with the aim to deliver long-term value for all our stakeholders.
As part of our sustainability commitment, we implement the Environmental and Social Management System (ESMS) to manage E&S risks and impacts throughout the life cycle of our projects. Through the ESMS, we are able to identify and assess E&S risks to develop appropriate action plans and mitigation measures.
Our Environment and Social Management System Process
PHASE 1:
ASSESS E&S RISKS
Step 1. General E&S Risk Identification
Step 2. Risk Prioritization
Step 3. Stakehoider
Engagement and Mapping
Step 4. Emergency Scenarios Assessment
PHASE 2:
MANAGE E&S RISKS
Step 5. Formulate E&S Action Plan for Priority Risks
Step 6. Formulate Stakeholder Engagement Plan
Step 7. Develop Stakeholder Communication Platform
Step 8. Formulate Emergency Preparedness Plans (as necessary)
PHASE 3:
APPROVAL OF E&S ACTION PLANS
Step 9. Secure approval of E&S Action Plans
Step 10. Issue Notice to Proceed
PHASE 4:
IMPLEMENTATION
MONITORING & REPORTING
Step 11. Ensure compliance with national regulatory requirements and internal monitoring of E&S Action Plan implementation
Step 12. Conduct a semi-annual review on the progress and compliance of all E&S Action Plans and Stakeholder Engagement Plans
