Ayala Group looks to integrate risk management, sustainability

The Ayala Group recently launched its first Integrated Risk Management and Sustainability Summit in line with its commitment to integrate the two fields.

Ayala Corp. president and COO Fernando Zobel de Ayala highlighted the group’s commitment to integrate risk management and sustainability.

“As the world demands a more encompassing societal impact from businesses that is beyond economic success, we have recognized that environmental, social and governance factors are fundamental elements of the Ayala Group’s stewardship and are crucial drivers of our longterm value creation. We need to start looking at these two areas as interconnected systems that are part and parcel of our overall strategy, decision-making, and investment process,” Zobel said.

Another point why integration is vital, is due to the accelerated pace of change in the business landscape, the conglomerate said.

Such changes are brought about by various business disruptions, global megatrends like climate change or green consumerism, and a change in stakeholder mindset.

The call for the integration of sustainability and risk management has become greater to ensure that companies can protect themselves from emerging challenges, prosper over the long term, and continue to create value for all its stakeholders.

The summit brought together sustainability pioneers and business leaders.

During a panel discussion, keynote speaker Sunny Verghese, chairman at the World Business Council for Sustainable Development and co-founder and group chief executive officer Olam International Ltd., said integration is a must if companies want to remain relevant.

Ayala continues to drive sustainability in its businesses and integrating it with risk management is another pioneering activity by the group, said Ayala Corp. chairman Jaime Augusto Zobel de Ayala.

“We have always believed that for (Ayala), a 185 year-old company to remain relevant, (we need to adapt) to the changing nature of the environment we’re in. Sustainability is massively important. We need to align [and respond] to the development needs of our country and help address global issues (in the process),” he said.