BY IGNACIO R. BUNYE
DURING the recently held Ayala Integrated Summit, Ayala Pillar Fernando Zobel de Ayala (FZA) took the opportunity to reflect on Ayala’s journey as the Ayala Group approaches the end of its 190th anniversary celebrations.
In his keynote address before boards and executives across the Ayala Group, FZA reaffirmed Ayala’s commitment to a purpose-driven approach that seeks to build businesses enabling people to thrive. FZA explained that this renewed purpose is the result of comprehensive research into the company’s rich history, extensive consultations with partners, current and former employees, and inspiration drawn from global peers like Swire and Unilever.
FZA emphasized that “Ayala’s refreshed purpose statement underscores its conviction that the most compelling way to do business is to create relevant products and services that address customer needs and aspirations while generating meaningful value for the company and its shareholders.”
FZA added: “Central to fulfilling this purpose is a steadfast commitment to sustainability.” The Ayala Group firmly believes that businesses can only succeed by ensuring the conservation of the natural environment, maintaining social stability, and genuinely considering people’s interests in decision-making processes.
This approach aligns with growing evidence supporting the value of purpose in companies. Research by Deloitte, for example, highlights that purpose-oriented companies achieve higher productivity, growth rates, and greater employee engagement and loyalty. These companies report 30% higher levels of innovation and 40% higher levels of talent retention compared to their competitors. Furthermore, customers increasingly expect businesses to act on issues related to their stated purpose, beyond merely offering competitive prices and quality products.
FZA cited a striking example of the power of purpose – Unilever’s “sustainable living” brands, which include Dove, Vaseline, Lifebuoy, and Ben & Jerry’s. These brands focus on reducing the company’s environmental footprint while increasing their social impact, and they delivered 75% of Unilever’s growth and grew 69% faster than the rest of its portfolio in 2018. Such results demonstrate the substantial benefits of integrating sustainability into business strategies.
At Ayala, this strong commitment to sustainability has opened numerous opportunities. Since 2019, the group has raised around $5.6 billion through various sustainable finance instruments, accelerating its transition to Net Zero and expanding its portfolio of sustainable businesses.
The Ayala Sustainability team, (headed by Jaime Urquijo) in collaboration with the Ayala HR Council, has also embarked on a meaningful social impact and equity action agenda, institutionalizing a culture of diversity, equity, and inclusion (DEI) across the group. This initiative began with a commitment from all Ayala CEOs to DEI culture, followed by an extensive review and update of HR policies to ensure non-discrimination, equal opportunity, anti-sexual harassment, and whistleblowing protections.
Moreover, several Ayala companies have updated their benefit packages to better meet the needs of employees, including longer paternal leave benefits, expanded loan coverage and flexible benefits, and broader medical coverage for domestic partners, same-sex partners, and parents of single employees up to age 75. On the philanthropic front, Ayala Foundation is sharpening its focus and enhancing project delivery across its strategic pillars of leadership, community development, and arts and culture.
Governance is another area where the Ayala Group continues to innovate. The company has refreshed its board composition to ensure a diverse mix of experience, expertise, and backgrounds. At the AC level, policies against insider trading have been enhanced, broadening coverage to additional persons and encompassing shares of AC and its listed subsidiaries. All these efforts are part of a continuous review of governance processes and policies to align with current regional and international standards.
Despite these advancements, the Ayala Group recognizes the challenges posed by global developments, such as conflicts in Europe and the Middle East and increasing tensions in the Asia-Pacific region. These issues have led to significant loss of lives and livelihoods, rising living costs, and reduced quality of life, fueling disillusionment about the practicality of a sustainability agenda. However, Ayala remains steadfast in its belief that sustainability and purpose-driven business are essential, especially in turbulent times.
Indeed, the Ayala Group remains committed to its purpose of building businesses that enable people to thrive, and through its investments, hopes to help individuals and communities reach their full potential. (totingbunye2000@gmail.com)/PN
