Achieving a balance between economic growth, social equity, and environmental responsibility accommodates the needs of current and future generations while successfully preserving the environment. Because of this, businesses across the Philippines have increasingly adopted sustainable development ambitions, such as the environmental, social, and governance (ESG) agenda, and corporate social responsibility (CSR) initiatives to guide their decision-making processes.
As one of the biggest conglomerates in the Philippines, SM takes pride in spearheading sustainability efforts across its diverse business ventures, such as retail, real estate, banking, and investments.
SM has divided its efforts into two initiatives, namely SM For Social Good and SM Green Movement, to enhance the sustainability of its businesses and address the climate adaptability of its cities and communities.
SM For Social Good facilitates opportunities to build a healthy and thriving community. Hence, the socioeconomic impact of SM provides access to needs that are foundational in achieving long-term community development.
According to SM Investments Corp.’s (SMIC) latest annual integrated report, the conglomerate has created 140,029 jobs, released P62.72 billion loans to micro, small and medium enterprises (MSMEs), and sponsored 11,750 academic scholars to date.
SM also helped build 342 schools, 1,110 classrooms, and 317 health centers and medical facilities.
Through proper skills and education, SM also helps families free themselves from hunger and malnutrition by providing backyard farmer training to families in vulnerable communities. With 28,550 farmers trained and 266 training sessions, the beneficiaries can now offer more nutritious yet cheaper choices for their families.
SM is also quick to respond whenever there is a need for food and essential goods in the aftermath of typhoons, earthquakes, and other calamities. It distributed 819,024 Kalinga packs and conducting 663 Operation Tulong Express across the Philippines.
SMIC also remains committed to sustainability through investments in renewable energy that serve more communities nationwide as part of the SM Green Movement. This initiative is a group-wide and multi-year campaign working together toward the improved quality of life for communities through priority initiatives of Green Planet, Green Living, and Green Culture.
Through its wholly-owned Philippine Geothermal Production Company (PGPC), SMIC is set to increase its geothermal capacity to an estimated total of 600 megawatts (MW). These new projects are in Northern Luzon (Kalinga, Daklan, and Cagayan) and in Southern Luzon (Mounts Labo and Malinao), which will form part of PGPC’s annual investment of approximately P3 billion.
SM has deeply integrated sustainable practices into its business ecosystem, focusing on energy, waste, and water management. According to the SMIC’s report, the conglomerate has recycled 42.5 million m3 of water, funded 58 renewable projects with a capacity of 2,252 MW, and ensured that at least 50% of SM Prime Holding’s energy use comes from renewable sources. For instance, SM malls and offices are designed for optimal light ventilation through the use of clerestory windows and skylights to reduce energy use and carbon emissions.
The corporation is committed to driving national growth and establishing partnerships with a 10% capital expenditure allocation for disaster resiliency and sustainability. SM has also partnered with World Wide Fund for Nature to organize the Climate Summit for Climate Alliance and has planted and maintained over 2.6 million seedlings and trees to promote environmental stewardship.
Similarly, SM has recently launched “SM Green Finds,” a collection of unique and easily accessible environmentally-conscious products. From fashionable items and personal care products to home improvement solutions and pet care, the “Green Find” badge makes it easier for customers to shop for sustainable choices that cater to their evolving needs.
They also help empower their MSME partners in their green practices by equipping them with sustainability knowledge, promoting green practices at work, and recognizing their “greenovations” through the SM Green Movement Day and Awards.
SMIC has reported that 62% of its workforce comprises women, with 57% of them holding senior leadership positions. In line with this, SMIC is one of the signatories of the United Nations Global Compact Women Empowerment Principles (WEPs) initiative, joining over 3,000 other global business leaders to promote gender equality and empower women across the workplace, marketplace, and community.
The conglomerate has been recognized as a top-rated sustainability company in the industry and Asia by international ratings firm Morningstar Sustainalytics. According to Morningstar’s 2023 report, SMIC received an ESG Risk Rating of 13.3 and was identified to be at “Low Risk” of experiencing material financial impacts from ESG factors.
All these show that SM continues to create a positive socioeconomic impact in the community by facilitating responsible urbanization and development, and advocating for national growth and environmental stewardship. — Mhicole A. Moral