Powering the clean energy future in the Philippines

Amid the intersecting challenges of climate change, rapid urbanisation and widening inequality, sustainability can no longer be a side goal – it must be core to everything we do.

For Meralco, the Philippines’ largest energy company with assets in electric distribution and power generation, this is not simply about improving operations. It is about building a future where growth is enduring and inclusive.

With over 120 years of providing energy to homes, businesses, and communities, Meralco is ensuring that every watt delivered fuels not only progress, but purpose.

Our roadmap to becoming 100% coal-free by 2050

At the heart of Meralco’s sustainability journey is its Long-term Sustainability Strategy – our roadmap for a just, orderly and affordable transition to clean energy across three horizons and with the goal of becoming coal-free by 2050:

• Horizon 1 (2021–2030): Investing heavily in renewable energy by building capacity of over 1,500 MW to meet rising demand with greener power.

• Horizon 2 (2031–2040): Accelerating the shift by developing and investing in next-generation technologies such as nuclear, hydrogen and biomass.

• Horizon 3 (2041–2050): Driving deep decarbonisation by investing in advanced solutions such as carbon capture and carbon sink initiatives.

This phased approach ensures ambition is matched with pragmatic execution – balancing energy security, affordability, and environmental responsibility.

Delivering 30 sustainability projects by 2030

To bring our Long-term Sustainability Strategy to life, we’re driving 30 key sustainability projects through 2030 – our 30 by ‘30 action plan. These initiatives span multiple dimensions of sustainability performance: cutting emissions, fortifying the grid, boosting efficiency, and reducing waste.

And the results are starting to show. Meralco has agreements in place to purchase over 2,200 MW of renewable energy – enough generation capacity to power more than 1.5 million homes. In addition, we own and are building additional power projects with a capacity to generate over 1,800 MW. Solar farms across three provinces are already providing energy to communities. Soon, through MTerra Solar – the world’s largest integrated solar and battery storage facility – we’ll deliver 3,500 MW of clean power to over 2.4 million households annually, backed by a 3,500-hectare solar farm with 4,500 MWh of storage.

By steadily increasing the share of renewables in our portfolio and rolling out targeted decarbonisation initiatives, we aim to cut Scope 1 emissions by 9% and total emissions by 14% against projected 2030 baseline levels.

But clean energy is only part of the story. Sustainability also means reimagining how cities and communities grow and thrive – while making sure progress doesn’t come at the planet’s expense. The following initiatives are already reaping benefits for people and planet:

• We have already electrified 6% of our vehicle fleet – exceeding government mandates – and we’re on track to achieve our goal of reaching 25% fleet electrification by 2030.

• We divert 95% of waste away from landfills – up from a baseline of merely 17% – and towards recycling, composting and recovery facilities. Furthermore, with the ban on single-use plastics, we have cut their share in our waste stream by 57%.

• We have reduced energy use by 4% and water consumption by 10% across facilities. In addition, solar installations are underway in our headquarters and business centres, with full renewable energy integration targeted for 2030 and 2035, respectively.

• Over 60,000 distribution transformers are now enabled with natural ester oil, making them 99% recyclable and biodegradable. This is alongside efforts to eliminate non-sustainable compounds across our infrastructure.

• We have planted over 2.7 million trees in threatened forests and watersheds. Beyond reforestation, the programme sustains livelihoods for more than 2,300 caretakers, including over 200 indigenous farmers.

Together, these programmes form a blueprint for cities and communities to rise and prosper.

Prosperity is measured not by profit alone, but in opportunities created and lives improved

Clean energy is positioned as an enabler of five social impact areas: education, water access, healthcare, livelihood productivity, and disaster resilience.

Already now, we have provided energy to over 300 off-grid public schools and facilities, benefiting more than 93,000 students, households, and farmers. Nearly 300 electric cooperative personnel and community members have likewise been trained to accelerate recovery in disaster-prone areas.

All these pieces come together in our strategy

Ours is a living strategy, embedded in KPIs and governance, and evolving to meet new challenges and opportunities.

For Meralco, the business of climate is the business of nation-building. And with our Long-term Sustainability Strategy, we’re proving that sustainability and prosperity are not at odds; they are inseparable.

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2025 is a critical year for the Paris Agreement. Ten years on, we need to rethink how we frame the challenge. And seeing challenges differently is what business and we are all about.

ICC is committed to securing what businesses need at the upcoming climate negotiations, COP30, in Belém, Brazil. Learn more about our Opportunity of a Lifetime climate campaign and how to get involved.

*Disclaimer: The content of this article may not reflect the official views of the International Chamber of Commerce. The opinions expressed are solely those of the authors and other contributors.