PASAY CITY, Philippines, August 09, 2024 – The SM Group emphasized the importance of sustainable investments in fostering a greener future at a recent forum organized by the Philippine Institute of Certified Public Accountants (PICPA).
“At SM, we believe that securing a better future for generations to come hinges on our commitment to innovative solutions and projects that embody sustainability principles. Sustainable investments play a crucial role in this endeavor,” remarked Jessica Bianca ‘Jica’ T. Sy, Lead Executive for Design, Innovation and Strategy of SM Prime Holdings, Inc. and SM Development Corporation (SMDC).
As the group aligns its investments with the Sustainable Development Goals (SDGs), Ms. Sy highlighted that investment decisions at SM prioritize Environmental, Social, and Governance (ESG) factors, focusing on pursuing investments that conserve nature.
SM’s initiatives address key environmental issues including climate change, pollution, deforestation, energy efficiency, and waste management.
Environmental Stewardship
SM is committed to reducing its environmental footprint while fostering economic growth. The group has adopted renewable energy solutions, sourcing 25% of its electricity from renewable sources and recycling 14.2 million cubic meters of water in 2023. SM Prime Holdings, Inc., the property arm of SM, managed 165.7 million tonnes of waste last year, with 92.7 million tonnes properly disposed of, 13% recycled, and 5% composted.
Through SM Cares, a division of SM Foundation, Inc., the company engaged over 17,000 volunteers in the International Coastal Clean-up 2023, removing 100,432 kilos of trash from 15 malls nationwide. This effort reinforces SM’s dedication to a greener future and a culture of volunteerism.
In an effort to further protect flora and fauna, SM, through Hamilo Coast, its premier resort development, declared three of its 13 coves—namely Santelmo, Etayo, and Pico De Loro are recognized as marine protected areas (MPAs).
These coves form part of the Coral Triangle, where 75% of the world’s coral species are found. The Coral Triangle houses 600 different coral species, over 2,000 different types of reef fish and over 120 million people, which includes the waters of Indonesia, Malaysia, Papua New Guinea, the Philippines, Solomon Islands, and Timor Leste.
ESG+R Principles
SM Prime integrates rigorous ESG+R (Environmental, Social, Governance + Resiliency) principles into its sustainable initiatives. “While ESG principles are well-known, ‘R’ stands for resiliency, guiding our investments to address climate risks and enhance disaster preparedness,” Ms. Sy explained. Currently, at least 10% of SM Prime’s capital expenditure is allocated to sustainable and resilient designs, including science-based solutions to mitigate natural disaster impacts on properties.
SM City Marikina is a prime example of disaster resilience, having withstood Tropical Storm Ondoy in 2009. The mall is elevated 20 meters beyond standard regulations and supported by 246 stilts.
SM manages 23 malls with water catchment facilities that keep nearby communities safe from flooding and prevent overloading of current infrastructure systems. The malls also serve as a refuge during calamities.
SMDC, SM Prime’s residential arm, also prioritizes climate resilience. Vine Residences in Novaliches, elevated three meters above ground level, is designed to protect against flooding while preserving local vegetation.
“At SMDC, we prioritize climate resilience in home development. For nearly three decades, we’ve made home ownership accessible with our goal, A Home for Every Filipino,” Ms. Sy affirmed. In 2022, SMDC achieved at least 50% renewable energy usage, with 12.67 megawatts of solar panels installed in homes.
“Community building is central to our values, guiding all our projects towards a resilient future,” she added.
