The SM Group underscored the importance of sustainable investments in fostering a greener future at a 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,” said Jessica Bianca Sy, lead executive for design, innovation and strategy of SM Prime Holdings Inc. and SM Development Corp.
Sy said that as the group aligns its investments with the Sustainable Development Goals (SDGs), the investment decisions at SM prioritize environmental, social and governance (ESG) factors, focusing on pursuing investments that conserve nature.
She said SM’s initiatives address key environmental issues including climate change, pollution, deforestation, energy efficiency and waste management.
Sy said SM is committed to reducing its environmental footprint while fostering economic growth. The group adopted renewable energy solutions, sourcing 25 percent 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 tons of waste last year, with 92.7 million ton properly disposed of, 13 percent recycled and 5 percent composted, she said.
SM Cares, a division of SM Foundation Inc., engaged over 17,000 volunteers in the International Coastal Clean-up 2023, removing 100,432 kilograms of trash from 15 malls nationwide. The effort reinforces SM’s dedication to a greener future and a culture of volunteerism.
SM, through Hamilo Coast, its premier resort development, declared three of its 13 coves—namely Santelmo, Etayo and Pico De Loro—as marine protected areas (MPAs).
These coves form part of the Coral Triangle, where 75 percent 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.
SM Prime said it also integrates rigorous ESG+R (ESG+ 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,” Sy said.
She said at least 10 percent 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,” Sy said.
SMDC achieved at least 50-percent renewable energy usage in 2022, 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,” Sy said.
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