The Department of Environment and Natural Resources (DENR) has issued a new directive requiring mining companies to integrate the United Nations’ 17 Sustainable Development Goals (UN SDGs) into their Social Development and Management Programs (SDMPs).

Environment Secretary Maria Antonia “Toni” Yulo-Loyzaga signed the department administrative order mandating mining firms to incorporate sustainability efforts, including biodiversity conservation and climate action, in their SDMPs—a shift from previous requirements.

“We’re also looking at labor practices, gender equity, social services, along with reforestation, rehabilitation, restoration of ecosystems to address biodiversity loss,” Loyzaga said in a statement on Monday, Feb. 17.

The agency said this initiative aligns with President Marcos’ call for the responsible utilization of the country’s natural resources for sustainable development.

“The goal is to ensure that the wealth generated from mineral extraction is shared equitably, that ecosystems are protected, and that local communities gain empowerment,” the DENR chief added.

Strengthening social development in mining communities

Under Republic Act 7942, or the Philippine Mining Act of 1995, mining contractors and permit holders are required to allocate 1.5 percent of their operating expenses toward SDMPs. These programs are designed to uplift the living standards of host and neighboring communities through various development projects.

According to the environment department, the newly signed order expands the scope of SDMPs by compelling mining firms to implement programs that address climate change, environmental protection, and socio-economic development.

The agency said that the 17 UN SDGs include no poverty, zero hunger, quality education, gender equality, climate action, sustainable communities, responsible consumption, and life on land and below water, among others. These globally recognized targets were adopted by all UN member states in 2015 as a blueprint to combat poverty, reduce inequality, and safeguard the planet by 2030.

Funding, allocation of SDMPs

The DENR said that mining companies are required to implement SDG-driven initiatives within their host and neighboring communities, ensuring sustainable development in their areas of operation. 

As mandated, 1.5 percent of their operating expenses must be allocated to the Social Development and Management Program (SDMP).

Of this allocation:

• 10 percent is dedicated to information, education, and communication programs;

• 15 percent is directed toward advancing mining technology and geosciences; and

• 75 percent is used for direct projects implemented by local government units (LGUs), including infrastructure development, health centers, water supply systems, scholarships, and livelihood programs.

From 2002 to 2027, the total approved SDMP commitment has reached P28 billion, with P17.7 billion allotted for 2002-2022 alone. These funds have supported livelihood programs, educational grants, healthcare services, public infrastructure, and socio-cultural initiatives across various mining communities.

The DENR emphasized that mining companies must now go beyond compliance by actively integrating sustainable development into their operations. 

This directive ensures that economic gains from mining are balanced with long-term ecological protection and social progress, the agency added.