ACEN
Development of ACEN’s Environment and Social Policy and accompanying Environment and Social Management System, and Energy Transition Mechanism
Background of the Project/ Challenge
ACEN CORPORATION (ACEN), with its parent company Ayala Corporation, is demonstrating leadership in how Asian businesses can meaningfully transition towards a low-carbon economy, and follow through on commitments across its strategy and operations.
- In 2021, ACEN committed to reach net zero by 2050 or earlier
- Milestones included: (1) Transition generation portfolio to 100% renewables by 2025, (2) Spin-off all fossil-fueled capacity by 2025, and (3) Work towards early retirement and just transition of the SLTEC coal plant by 2040 or earlier
CSV was engaged by ACEN to support the development of its Environmental and Social (E&S) Policy and accompanying Environment and Social Management System (ESMS) for >20 project sites in full compliance with IFC and ADB performance standards and requirements. This was with the view of its green bond offerings in 2019 – which in the end had both IFC and ADB as anchor investors. These same E&S policy and ESMS were used in future green bond offerings – which as of date has reached >$1 billion worth of USD and PHP denominated bonds and has set ACEN as the biggest green bond issuer in the Philippines.
What We Did
- Development of its ESG policy which included a full coal divestment target by 2040 and assisted the company for its own ETM designed to program the accelerated retirement of ACEN’s last coal plant (246MW) by 2040, proceeds of which were channeled towards ACEN’s renewable energy projects;
- Support for Implementation and Monitoring of Divestment and ESG Strategy
- Crafted the ACEN E&S Policy and ESMS, established tools and metrics to measure project impact, and recommended systems and protocols for the E&S team.
- Assisted ACEN in the preparation for the transitioning of the SLTEC plant, including stakeholders engagements (dealing with regulators, policymakers, existing and potential lenders, internal workforce, etc.)
- Providing technical support in developing new RE projects
Outcome
- ACEN completed the world’s first Energy Transition Mechanism transaction: the SLTEC coal plant will be retired 15 years earlier than its technical life
- https://www.acenrenewables.com/2022/11/acen-completes-worlds-first-energy-transition-mechanism-etm-transaction-246-mw-sltec-coal-plant/
- https://www.acenrenewables.com/sustainability/esg/
Testimonials
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