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MANILA, Philippines — The name SM has become synonymous with the word development across the nation, especially in areas where its shopping centers, banks, condominiums and retail stores operate in. One can definitely say that wherever and whenever there is an SM mall, an SMDC residence, a BDO or a Savemore being built, economic progress usually follows.
Over the years, the SM brand has become a household name, emerging as a retail powerhouse recognized across all social classes nationwide. To a greater extent, SM Investments Corporation, the parent company of the SM group, is widely considered a proxy of the broader economic trends and the Filipino consumer story.
The company’s business model demonstrates how targeted investments in retail, property and financial solutions contribute to job creation and sustained economic activity given that many Filipinos remain underserved—needing access to modern retailing, banking services and integrated property developments.
But responsible growth has always been top of mind for SM Investments, with the group firmly believing that business growth and sustainability are intertwined. In fact, SM’s journey toward sustainable growth started long before corporate social responsibility became a trend among companies.
Since its inception, the company has integrated social responsibility and environmental stewardship into its core business practices.
Inspired by the vision of its founder, Henry Sy Sr., who believed that business growth and social development go hand in hand, SM has demonstrated that true growth comes not only from financial success but also from creating lasting value for people, communities and the environment.
SM from its early days has implemented practical solutions such as supporting local suppliers, ensuring equitable access through standardized pricing and empowering employees with training and leadership opportunities, including placing women in leadership roles. This approach has become a model for responsible business growth.
“This value of inclusive entrepreneurship is at the heart of all SM businesses across retail, property, banking and portfolio companies,” SM Investments President and CEO Frederic DyBuncio said. “Our commitment to sustainability includes mandatory reporting, transparency and accountability, in addition to significant participation in global initiatives like the UN Global Compact, TCFD (Task Force on Climate-Related Financial Disclosures) and the UN SDGs (Sustainable Development Goals).”
A blueprint for responsible growth
SM’s path to sustained growth focuses on building local economies by creating integrated and resilient communities, coupled with having its business segments work in synergy.
In retail, for example, SM’s operations promote entrepreneurship, support local micro, small and medium enterprises (MSMEs) and encourage greener practices through initiatives like SM Green Finds.
SM continues to offer a wide array of product choices, providing excellent customer service across generations of consumers.
When it comes to property development, SM’s integrated lifestyle cities are designed to be climate-resilient, offering spaces for entertainment, business and living, serving as local economic hubs.
Through banking units BDO and China Bank, SM supports inclusive financing, by reaching not only the wealthy, but also Micro, Small, and Medium Enterprises (MSMEs) and underserved sectors. The group’s investment in logistics through 2GO strengthens connectivity across cities, facilitating and boosting business and economic activity. SM Foundation, on its end, ensures that education, healthcare and livelihood opportunities are accessible to communities that SM operates in.
“This strategy, which fosters both economic and social development, ensures that our business operations are aligned with our sustainability goals, creating a mutually reinforcing impact,” DyBuncio said.
Through banking units BDO and China Bank, SM supports inclusive financing especially the Micro, Small and Medium Enterprises (MSMEs) and underserved sectors.
As a publicly listed company on the Philippine Stock Exchange, SM has always embraced sustainability and transparency as essential components of its corporate governance. In 2018, the company played a key role in sustainability reporting as a requirement for publicly listed companies in the country.
In stepping up its sustainability efforts, SM continues to align with global reporting standards such as IFRS S1 and S2, ensuring that its operations meet the expectations of both local and international investors.
Being a listed company brings a higher level of accountability, and SM responds by reinforcing its sustainability practices, including climate risk management, resource use optimization and enhancing disaster resiliency efforts.
“Our sustainability practices are integrated into business operations, with significant efforts in reducing greenhouse gas emissions, improving disaster resiliency and managing resource use. SM’s sustainability governance, climate risk management and investment in green technologies are core to meeting stakeholder expectations and global sustainability standards,” DyBuncio noted.
Balancing financial growth with sustainability goals
SM views sustainability as an investment in business resiliency and social impact.
To ensure the company’s long-term success while contributing positively to society, 10% of SM’s capital expenditure is dedicated to sustainability and resiliency initiatives.
SM supports MSMEs through inclusive retail and business opportunities as well as invests in education initiatives to ensure the youth are prepared for the future.
The group is also investing in renewable energy production and financing renewable energy companies to help diversify the country’s energy mix and lower greenhouse gas (GHG) emissions.
As an advocate for clean energy, SM has set very aggressive targets to convert to renewable energy sources. The group’s integrated property development arm, SM Prime, currently sources at least 50% of its electricity utilization from renewable energy.
SM Prime continues to support the transition to renewable energy by expanding its solar energy footprint, driving both operational efficiency and carbon emission reductions across its properties.
SM Prime’s continued rollout of solar panels across its portfolio of malls and developments has further lowered the company’s reliance on conventional power sources, cutting carbon emissions by 19,140.6 tons CO2 metric tons, which is equivalent to taking more than 4,100 cars off the road annually.
SM continues to expand in the provinces to provide access to modern shopping experiences. (Photo of the recently opened SM J Mall in Cebu)
At present, SM operates 47 malls and properties with solar installations totaling 63 megawatts of capacity and it plans to add 20 rooftop solar photovoltaic projects this 2025 to reinforce its push toward greater energy efficiency.
BDO, meanwhile, has become one of the largest funders of renewable energy projects, funding P898 billion in sustainable finance, including loans to 59 renewable energy projects as of December 2023.
SM Investments likewise operates the Philippine Geothermal Production Company, which runs geothermal fields in Tiwi, Albay and Makban, in the provinces of Laguna and Batangas while exploring and developing new concession sites in various areas in Luzon.
Brace for impact: driving positive social change
On top of initiatives to ensure responsible growth for its business and the environment, SM is committed to driving social change through a variety of community-focused initiatives.
Through its foundations, including SM Foundation, BDO Foundation and Henry Sy Foundation, the group focuses on ensuring access to education, healthcare and livelihood for underserved communities. Its programs have enabled the construction of public schools, healthcare centers and places of faith, alongside promotion of inclusivity for persons with disabilities, the elderly and nursing mothers.
Through its foundations, SM Foundation, BDO Foundation and Henry Sy Foundation, the group focuses on ensuring access to education, healthcare and livelihood for underserved communities.
SM’s support for communities also includes national initiatives like disaster resiliency programs and support for Philippine GHG goals through a GHG Management Plan. Additionally, SM’s integrated lifestyle cities promote urbanization that is sustainable and resilient to future challenges.
Internally, SM fosters a culture of sustainability through formal training programs, volunteer engagement and job integration. Sustainability practices are integrated into job responsibilities across all levels of the organization, ensuring that every employee is equipped to contribute to the company’s long-term sustainability goals.
Overall, SM continues to expand as a group to reach under-penetrated markets across all of its core businesses. The group’s expansion for new bank branches, malls, stores and condominiums are mostly geared outside Metro Manila, supporting developing cities and bringing its businesses to underserved regions and communities nationwide.
“SM’s future sustainability plans focus on expanding opportunities for Filipinos, providing greater access to modern retail, banking and integrated property developments that will help foster and drive responsible and inclusive growth for future generations,” DyBuncio said.
Editor's Note: This branded content for SM is not covered by Philstar.com's editorial guidelines.
