The Sy-led SM Prime Holdings Inc. is allocating P10 billion of 10 percent of its capital expenditures to sustainable and resilient designs and using renewable energy as part of its commitment to preserving the environment.

In a statement, SM Investments Corporation said 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,” said Jessica Bianca "Jica" T. Sy, Lead Executive for Design, Innovation and Strategy of SM Prime and SM Development Corporation (SMDC).

Currently, at least 10 percent of SM Prime’s capital expenditure (P100 billion for 2024) is allocated to sustainable and resilient designs, including science-based solutions to mitigate natural disaster impacts on properties.

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 affirmed.

In 2022, SMDC achieved at least 50 percent 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.

As a whole, the SM group is committed to reducing its environmental footprint while fostering economic growth. The group has adopted renewable energy solutions, sourcing 25 percent of its electricity from renewable sources and recycling 14.2 million cubic meters of water in 2023.

“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,” Sy said.

As the group aligns its investments with the Sustainable Development Goals (SDGs), 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.

SM Prime managed 165.7 million tons of waste last year, with 92.7 million tons properly disposed of, 13 percent recycled, and five percent 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.

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 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.