Development of ACEN’s
Overall ESG Strategy and
Internal Just Energy Transition
Development of ACEN’s
Overall ESG Strategy and
Internal Just Energy Transition
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CSV has been a lead advisor to ACEN in developing its overall ESG strategy and internal just energy transition program (JET-P). CSV created ACEN’s Environmental and Social (E&S) policy and Environmental and Social Management System (ESMS), including formulating systems and protocols for the E&S team. CSV is currently assisting ACEN in the preparation for transitioning the SLTEC coal plant, including stakeholder engagements and potential use of transition credits. CSV is also providing technical support for new Renewable Energy (RE) projects.
Background of the Project
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 reaching net zero by 2050 or earlier.
- As part of its commitments and goals, ACEN transitioned its generation portfolio to 100% renewables by 2025, spun off all fossil-fueled capacity by the same year, and is working towards early retirement and just transition of the SLTEC coal plant by 2040 or earlier.
CSV has been a trusted advisor to ACEN in its sustainability journey, supporting its deepening ESG and decarbonization targets.
Completed and Current Projects
- ESG Policy Development: Crafted ACEN’s E&S Policy Statement and ESMS; established tools and metrics to assess project impact and recommended systems and protocols for the E&S team.
- Energy Transition Mechanism (ETM): Assisted ACEN in developing its ETM to accelerate the retirement of the SLTEC coal-fired power plant (246 MW) by 2040, with proceeds directed toward ACEN’s renewable energy projects.
- Transition Preparation: Currently supporting ACEN in preparing for SLTEC’s transition to renewable energy, including stakeholder engagements (regulators, policymakers, lenders, internal workforce) and exploring potential use of transition credits.
Outcomes
>$1B
worth of green
bond issuance
1st
energy transition
mechanism transaction
>$1B
worth of green
bond issuance
1st
energy transition
mechanism transaction
- The ESG policy and ESMS were developed with ACEN’s 2019 green bond offerings in mind, which ultimately secured International Finance Corporation (IFC) and Asian Development Bank (ADB) as anchor investors. These same frameworks have underpinned subsequent green bond issuances, collectively exceeding $1 billion in USD and PHP-denominated bonds, establishing ACEN as the largest green bond issuer in the Philippines.
- ACEN completed the world’s first Energy Transition Mechanism transaction: the SLTEC coal plant will be retired 15 years earlier than its technical life. See here.
With the launch of its Just Energy Transition Roadmap, ACEN has yet again produced a ‘world’s first’ by being the first private power company in Asia to clearly articulate its plans for holistically addressing the future of a coal-fired power plant set for early decommissioning.
Lawrence Ang
Chairman, Climate Smart Ventures