Our Pillars of Sustainability

First, we capitalize on the synergies within SM’s extensive network of businesses to steadily expand our core businesses and invest in other growth sectors of the emerging Philippine economy.

Second, we continue to build integrated lifestyle cities capitalizing on the synergies of our combined retail, tourism, residential, and commercial property businesses under one development.

Third, we adhere to global standards of professionalism.

Fourth, we view all our opportunities and risks through the lens of our economic, social and environmental impact.

Lastly, we anchor all our businesses on good corporate governance.

-Frederic C. DyBuncio,

SMIC President and CEO and Chair of the Sustainability and ESG Group-wide Steering Committee

Sustainability and ESG
Group-wide Steering Committee

A group-wide steering committee chaired by the President and CEO of SM Investments Corporation, Frederic DyBuncio, is tasked to oversee the group's sustainability roadmap and progress, while a technical working group led by the Vice President for Sustainability, Koleen Davila-Palaganas, is tasked to implement, monitor, and report the impact of the company's sustainability performance.

SM is a signatory of the

SM Investments Corporation is a Constituent in the FTSE4Good Index Series FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SM Investments Corporation has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

https://www.ftserussell.com/products/indices/FTSE4Good

Our Sustainability Framework

Our Reporting Process

Our Materiality Matrix

In our materiality assessment, our stakeholders identified the aspects of our business that have the greatest impact for them. We deepened our analysis on those aspects by providing clear definitions per topic, launching an automated stakeholder feedback survey, and conducting informal dialogues with our stakeholders. We aimed to have a better understanding of why our stakeholders considered the topics important and how each stakeholder group perceived the extent of the effects each topic had.

ECONOMIC PERFORMANCE

Topic Boundary:Within SM, host communities, business partners, government

Definition and Relevance: How the Company delivers value to its shareholders, creates economic opportunities in its communities and contributes to the economic growth of the country

CORPORATE GOVERNANCE

Topic Boundary: Within SM

Definition and Relevance: How the Company anchors its policies and practices on good governance; promotes anti-corruption; upholds its Code of Ethics in its transactions; conducts due diligence and complies with all relevant laws and regulations

COMMUNITY INVOLVEMENT

Topic Boundary: Within SM and host communities

Definition and Relevance: How the Company helps provide access to social services such as education, healthcare, livelihood, shelter and disaster relief support

EMPLOYEE TRAINING, DEVELOPMENT AND CAREER PATH

Topic Boundary: Within SM

Definition and Relevance: How the Company retains and develops its talents; recognizes the achievements and contribution of its employees; and provides long-term professional development

SUSTAINABLE OPERATIONS

Topic Boundary: Within SM, business partners, host communities

Definition and Relevance: How the Company efficiently utilizes resources to minimize the withdrawal from natural sources; and designs its infrastructure and business models to mitigate irreversible harm to the environment

CUSTOMER RIGHTS AND WELFARE

Topic Boundary: Within SM, customers

Definition and Relevance: How the Company protects the rights of its customers through customer data privacy, customer satisfaction initiatives and customer engagement programs; and ensures the safety of its customers

MARKET PRESENCE

Topic Boundary: Within SM, customers, business partners

Definition and Relevance: How the Company makes the SM brand accessible and inclusive to the broader market through its diverse businesses, innovative products and services, reasonable price points, customer incentives and loyalty programs

EMPLOYEE RIGHTS AND WELFARE

Topic Boundary: Within SM

Definition and Relevance: How the Company protects the rights, welfare and dignity of its employees; provides decent working conditions and fair compensation and benefits; and engages its employees through various meaningful activities

OCCUPATIONAL HEALTH AND SAFETY

Topic Boundary: Within SM

Definition and Relevance: How the Company promotes the health and wellbeing of its employees and provides a safe working environment with adequate benefits and insurance safety nets

DIVERSITY, EQUAL OPPORTUNITIES AND JOB CREATION

Topic Boundary: Within SM

Definition and Relevance: How the Company provides job opportunities especially in second tier cities; prioritizes manpower from the locality; creates flexible job opportunities for senior citizens and persons with special needs; and promotes equal remuneration regardless of gender, race or creed

INCLUSIVE SUPPLY CHAIN

Topic Boundary: Within SM, business partners

Definition and Relevance: How the Company engages MSMEs in formal retailing by providing opportunities in its retail spaces; supports entrepreneurs through capacity building and financing; and imparts guidance on product packaging and marketing

Our Stakeholders

SMIC Employees

SMIC Employees

Proponents of SM’s vision, mission and objectives

Our Commitment

  • Performance-based compensation and benefits
  • Targeted product discounts and promos for employees

Employees of a Business Unit
or Subsidiary

Employees of a Business
Unit or Subsidiary

Proponents of SM’s vision, mission and objectives at the subsidiary level

Our Commitment

  • Code of Ethics
  • Adequate health benefits and insurance

Business Partners, Suppliers
or Service Providers

Business Partners, Suppliers
or Service Providers

Suppliers and service providers vital to SM

Our Commitment

  • Transparent vendor accreditation process

Investors, Shareholders and Analysts

Investors, Shareholders
and Analysts

Providers of resources essential to SM’s goal to deliver results, enhanced economic returns and shared value

Our Commitment

  • Transparent and timely disclosure of performance

Community Partners and Beneficiaries

Community Partners
and Beneficiaries

Partners in community development and local economic growth

Our Commitment

  • Continuous dialogue for the design and implementation of social development programs

Customers, Consumers and Clients

Customers, Consumers
and Clients

Patrons of SM’s products and services

Our Commitment

  • Innovative products and services
  • Environmental sustainability practices

Media

Media

Partners in accurate reporting, upholding transparency and integrity

Our Commitment

  • Transparent and timely disclosure of performance

Socio-Civic Partners and NGOs

Socio-Civic Partners
and NGOs

Partners in social development and environmental sustainability

Our Commitment

  • Partnership for the design and implementation of social development programs

Regulators and Government Agencies

Regulators and
Government Agencies

Partners in upholding the law

Our Commitment

  • Compliance with all applicable laws
  • Transparent and timely disclosure of performance