ENTERPRISES need to clearly define their purpose to simplify the decision-making process, helping them navigate disruption and thrive, Ayala Corp. Chairman Jaime Augusto Zobel de Ayala (JAZA) said.
“We believe enterprises should take time to clarify their purpose, their role in their communities, and the goals that they want to achieve,” Mr. Zobel said in his closing keynote address at the Asian Institute of Management’s Asian Forum on Enterprise for Society on Wednesday.
He said corporate purpose remains core to the Ayala group’s operations.
“By clarifying this purpose, we gained a clearer picture of the investments we wanted to pursue and how we wanted to harness these opportunities. Such clarity in helping us zero in on our work to drive sustainability,” Mr. Zobel said.
He cited the importance of sustainability in long-term value creation and commercial resilience.
“We believe that businesses should inject as much scientific rigor, acumen, and rationality as possible into thinking about sustainability, much in the same way for other decisions like risk management, talent planning, or inter-nal auditing,” Mr. Zobel said.
Ayala Corp., the country’s oldest conglomerate, owns real estate, banking, telecommunications, and power businesses.
Mr. Zobel highlighted the move of ACEN Corp., the group’s listed energy platform, to retire its 246-megawatt coal plant by 2040, years before the end of its useful life.
“In 2012, our initial investments included thermal assets. We believe, however, that transitioning to renewable energy was crucial for more future Filipinos to thrive,” he said.
“Hence, we worked hard to become leaders in the just energy transition today with up to seven gigawatts of attributable renewable capacity,” he added.
Mr. Zobel added that the Philippines needed to transition to electric mobility and other new-energy vehicles to reduce carbon emissions and its general dependence on foreign oil.
“There was the opportunity to build a business that could provide value throughout the ecosystem of this transition, from the vehicles to the infrastructure to the services and digital platforms that connect everything,” he said.
Mr. Zobel also highlighted the country’s healthcare challenges, which AC Health is hoping to address with accessible, affordable and quality healthcare.
“I believe we need more partners and institutions contributing to this vital space, although, of course, there are many in this area already, but we need many more,” he said. — Sheldeen Joy Talavera