Sustainability makes cents for SM Investments

MANILA, Philippines — Green, as they say, is the color of money and nature.

That is why for SM Investments Corp., the parent company of the SM Group, going green makes business sense.

SM Investments believes that the most meaningful sustainability investments are those that make a company stronger. It is simply part of how the group, led by the Sy family, runs its businesses, which span retail, banking, property and other high-growth sectors.

SM Investments is a perfect example of what happens when a company treats sustainability spending as an investment rather than an expense. It proves that going green is about more than meeting environmental goals; it is about making business stronger and more resilient.

So, where does sustainability actually improve the business?

In SM’s case, the benefits are felt across the board – from reducing costs and enhancing reliability to improving operational efficiency. Through investments in renewable energy, energy efficiency and sustainable financing, the company is demonstrating how sustainability can be integrated into business operations and investment decisions.

“We see sustainability as part of good governance, guiding our decisions, strengthening accountability and supporting our long-term growth while creating value for our stakeholders,” Frederic DyBuncio, SM Investments president and CEO said.

Built on years of investment in efficiency and renewable energy across the group, SM Investments is targeting to reduce greenhouse gas emissions by 40 percent by 2040, and is on track to do so.

In 2025, the group raised its renewable energy sourcing to 31 percent of total electricity consumption from 27 percent in the previous year, with the expansion of cleaner energy use pursued across its businesses.

As part of its broader energy efficiency initiatives, the group has installed more than 200,000 solar panels across its properties, helping generate electricity and reduce dependence on grid power.

SM Supermalls, which operates the largest network of shopping centers in the Philippines, has been ramping up its sustainability initiatives with rooftop solar photovoltaic systems and electric vehicle (EV) charging stations being installed in more malls nationwide. A total of 76 out of SM’s 90 malls across the country have been equipped with solar photovoltaic (PV) systems.

Alfamart likewise recently installed solar panels at its Saraiya Distribution Center in Quezon Province with a solar peak capacity of 120.28 kilowatt-peak, helping improve operational efficiency within its supply chain network.

SM Investments has also expanded its renewable energy investments through wholly owned subsidiary Philippine Geothermal Production Co. (PGPC), which operates the Mak-Ban and Tiwi steam fields in the Provinces of Batangas, Laguna and Albay. PGPC supplies geothermal steam that can generate up to 400 megawatts of clean renewable energy to power households, offices and industrial facilities around the clock. The Mak-Ban and Tiwi steam fields in Laguna and Albay alone can generate enough geothermal steam to power up to hundreds of thousands of households annually.

New geothermal steam fields in five areas in Luzon have the potential to provide up to 400 additional megawatts of clean, renewable geothermal power for the country are also currently being developed by PGPC.

Beyond its own operations, the group is helping support the country’s energy transition through BDO Unibank Inc., the country’s largest bank. BDO has deployed around P1.2 trillion in sustainable financing, including support for 71 renewable energy projects with a combined capacity of 6,165 MW. China Banking Corp., for its part, provided P72 billion in financing for energy access, renewables and energy efficiency projects in 2025.

The group, from its retail business to banks and logistics companies, has likewise been reducing its plastic footprints in its packaging and influencing consumer behavior to use less plastic. Integrated property developer SM Prime Holdings Inc., for its part, has teamed up with Japanese waste processing firm GUUN CO., LTD to convert waste back into new materials at their first waste processing factory in Consolacion, Cebu. SM has likewise installed RDC-labeled (recyclable, disposable, compostable) bins across various properties nationwide to further enhance the development of waste conversion.

SM Markets, the group’s umbrella brand for SM Supermarket, SM Hypermarket and Savemore, has ushered in greener retail practices in encouraging the use of eco-bags over single-use plastics since 2007.

With the SM Group continuing to thrive amid evolving market conditions and economic cycles, its decision to treat sustainability spending as an investment rather than an expense demonstrates that going green, indeed, makes business sense.