SM Investments Corporation’s shareholders have approved the company’s acquisition of Philippine Geothermal Production Company (PGPC) through the merger of SMIC with PGPC owner Allfirst Equity Holdings.
In a statement SMIC said the acquisition is in line with its strong commitment to sustainability and in promoting renewable energy in the Philippines.
PGPC operates the Tiwi and Mak-Ban steam fields. Together they generate geothermal steam sufficient to produce approximately 300 MW of electricity.
Tiwi is the first commercial-scale geothermal steam field development in Southeast Asia, followed by Mak-Ban, both in operation since 1979.
In addition to its two producing steam fields, PGPC also has several other greenfield concession areas for geothermal steam production which it will develop moving forward.
“Our acquisition into PGPC reflects our commitment to sustainability, our strong support to promote clean energy and is aligned with our goals of environmental stewardship as a responsible company. This acquisition will further enhance our sustainability portfolio,” said SM President and Chief Executive Officer Frederic C. DyBuncio.
He added that, “This investment fits our portfolio investment criteria. Renewable energy is a growing sector in which PGPC has potential to be a leading player, has good synergies with the SM group, operates on high standards of good governance and has a track record of responsible management.
In his report to shareholders, DyBuncio said 2021 saw SM stepping up its response to climate change and noted that, “As a country that is one of the smallest contributors to global climate change, the Philippines happens to be one of the most vulnerable to its harsh effects.”
SM, its property arm, SM Prime Holdings, Inc. and NEO, one of its portfolio companies signed on as supporters of the Task Force on Climate Related Financial Disclosures (TCFD), an international framework on climate change-related environmental reporting, making clear each company’s strong support for private sector action and transparency in its own programs.
SM also continued to evaluate its energy use across the group and identify ways to be more efficient and where it can lead as an advocate.
SM Prime made one of the boldest announcements related to energy usage in the country to date, committing that 50 percent of its energy will be provided by renewable sources by end-2022.
NEO for its part became the first building development portfolio in the world to be certified as net zero carbon under the EDGE program of the International Finance Corporation.
Its banking arm BDO, also continues to lead in financing renewable energy projects nationwide, funding 54 renewable energy projects in 2021.
“Going forward into the future, we recognize that protecting our environment will be one of the biggest challenges we will continue to face. We remain committed to advancing the principles of the UN Global Compact and to contributing material actions towards the UN Sustainable Development Goals,” DyBuncio said.