ACEN achieves Leadership level in CDP's climate change assessment
MANILA, Philippines, Feb. 10, 2025 /PRNewswire/ -- ACEN has achieved Leadership level and an A− rating for its climate actions from CDP, the global non-profit that assesses corporate environmental transparency and performance in climate change, deforestation and water security. This marks an improvement from ACEN's previous B rating, underscoring the company's continued commitment to climate action and transparency.
To attain Leadership status, companies must demonstrate best practices in climate action, environmental governance, transparency, risk management and target setting. CDP scores organizations from A (highest) to D- (lowest) based on the comprehensiveness of their disclosures, awareness of environmental issues, management strategies and progress toward sustainability goals.
ACEN has participated in CDP's climate disclosure since 2022, joining 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.
Jonathan Back, ACEN group CFO and Chief Strategy Officer, said: "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. Our improved rating reinforces our commitment to responsible growth and scaling renewable energy investments that drive both financial and environmental impact."
Driving climate action and early coal retirement
ACEN remains at the forefront of early coal retirement, having completed the world's first market-based Energy Transition Mechanism (ETM) in November 2022. This milestone transaction involved divesting a 246 MW coal plant in Batangas and committing to its early retirement by 2040, 15 to 25 years ahead of the typical 40–50-year coal plant lifespan. 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.
Transition Credits are high-integrity carbon credits that facilitate the just and responsible phaseout of coal, replacing it with clean energy. ACEN is developing this pioneering initiative in collaboration with the Monetary Authority of Singapore (MAS) and The Rockefeller Foundation under Article 6 of the Paris Agreement. The Philippine and Singaporean governments have affirmed their support, with a Memorandum of Understanding signed in August 2024 and an Implementation Agreement targeted for completion this year.
ACEN was also the first energy company in Southeast Asia to launch a comprehensive Net Zero roadmap, featuring near-term emission reduction targets aligned with the GHG Protocol and the latest climate science, as well as long-term targets consistent with the deep decarbonization of the power sector.
ABOUT ACEN
ACEN, the Ayala group's listed energy platform, is at the forefront of the energy transition, with a rapidly growing presence across the Philippines, Australia, Vietnam, India, Indonesia, Lao PDR and the USA. The company currently has 6.8 GW of attributable renewable energy capacity spanning operational, under-construction, and committed projects.
As a pioneer in advancing the shift to sustainable energy, ACEN is dedicated to delivering clean, reliable, and affordable power across the Asia-Pacific region. With an ambitious target to scale its renewable energy capacity to 20 GW by 2030, the company is on track to achieve 100% renewable energy generation by 2025 and reach Net Zero greenhouse gas emissions by 2050, driving a carbon-neutral future and supporting the global energy transition.
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SOURCE ACEN