Sustainability Report 2023
SM Investments publishes its second Integrated Report which communicates the value of sustainable business practices and how these are embedded in stories on development, innovation, care and community. The report is a balanced reflection of our company’s value creation process and the progress our ecosystem of businesses have made in advancing the United Nations Sustainable Development Goals.
How We Create Shared Value
First, our customers, then, our stakeholders. By meeting their needs, they embraced our brand.
Our Valued Resources
We take a synergistic approach in managing our assets to deliver sustained returns and foster sustainable development.
Manufactured
Our Integrated Developments
A unique mix of malls, residences, office buildings and hotels facilitating urbanization
Intellectual
The SM Brand
The SM brand is one of the most popular and trusted brand houses of the country
Social
Our Connection to Our Customers
We know our customers, having a clear understanding on what they want
Our Empowered People
We have a diverse group of people that mirror our diverse customers
Our Inclusive Supply Chain Network
We have a diverse group of people that mirror our diverse customers
Our Relationship with Our Communities
Wherever we are present, we help uplift the lives of Filipinos in our host communities
Natural
Geothermal Energy & Environmental Assets
We optimize our environmental assets to help in the just transition to low carbon economies
Financial
One of the Largest Market Capital in the Country
What We Do and How We Do It
We operate as an ecosystem, with our businesses working together to achieve shared goals in serving and meeting the aspirations of Filipinos. We prioritize our customers, practice financial prudence and ensure good governance while keeping an eye on the future.
What’s Important to You and What We Delivered
Manufactured Capital - Supporting Urbanization
Our Integrated Developments
Intellectual Capital – Businesses/Innovations that Enhance the SM Brand Experience
The SM Brand
Social Capital - Meeting the Ever-Evolving Aspirations of our Customer and Stakeholder
We create socio-economic opportunities that promote inclusive prosperity for all
- SM is the one of the largest job creators with
- 131,000 jobs offered in 2023
- SM has the largest MSME community supporting over 100,000 to date
- 58% of Women in leadership roles
We create positive community impact
- 1,728 scholarship grants in 2023
- 10,564 scholar graduates to date
- 172 schools donated/constructed
- 1372 health centers and medical facilities built/renovated
Natural Capital – Managing Environmental Impacts and Finding Practical Solutions
Geothermal Energy & Environmental Assets
- PGPC’s Steam Output generated 2,604.4 GWh in 2023
- 2.65Mn trees/ seedlings planted
- 24 hectares of mangroves protected
- 3 marine protected areas
- 23.3 MWp capacity of solar panels installed in SM Supermalls
- 2 adopted plantations under PGPC’s Kupkop Kabundukan program
Financial Capital – Accelerating Inclusive Economic Growth and Partnerships
- Total Assets: Php1,585.4bn
- Consolidated Income: Php77bn
- Revenues: Php616.3bn
- Sustainable Energy Finance: Php119.8bn
- BDO Loans to National Projects: Php73.0bn
- BDO Loans to SME: Php50.1bn
- China Bank Microfinancing Loans to MSMEs: Php19.2bn
Some Positive Impact We Create
We facilitate responsible urbanization and development
Through our property arm, SM Prime, we were able to build integrated property developments in Metro Manila and in key provincial cities in the Philippines, contributing to national goals in urbanization
We are pioneering a fully customer-centric Filipino brand incorporating sustainability as brand values
Our customers can experience the SM Omnichannel
Our Connection to Our Customers
- SMAC loyalty program with 10M members
- Personalized Customer Service
Our Empowered People
We established a principles-based Diversity Equity and Inclusion (DEI) Framework in our workplace
Our Inclusive Supply Chain Network
- The leading hub for MSMEs
- Over 12,000 products under SM Green Finds
Our Relationship with Our Communities
- Through our social development programs, we contribute to reducing the gap in accessing social services
We promote natural habitats, environmental stewardship and nature-based solutions
We contribute to the reforestation and rehabilitation goals of the country and the Department of Energy’s targets for renewable energy sources
We generate profits with purpose, contributing to national growth and partnerships
- 79% total dividends pay-out
- 10 SM companies received Golden Arrow Awards from the ICD
- 6 SM companies received ACGS regional awards
What’s Important for Us to Create Shared Value
Our goal is to help communities grow by working together with sustainable businesses. We focus on what’s important to our stakeholders and incorporate those priorities into everything we do, from our overall strategy to how we deliver our products and services every day. This reflects the values of the SM brand.
Caring for Our People
Employee Well-being, Health and Safety
We provide work-life balance, and a healthy and safe working environment for our employees, both physically and mentally.
OSHA Club Activities (badminton, yoga, Zumba, basketball for employees)
Human and Labor Rights
As a signatory of the UNGC, we adhere to all human and labor rights
Human Rights Policy
Employee Development
Equip our people to be environmentally responsible as they go about their work, regardless of their role in the company.
SM Sustainability School
Green Workforce
Train our employees with different skills & provide opportunities for career growth.
- Annual Performance Review (99.7% Appraisal Rate)
- Php159mn spent on Employee Training
Diversity, Inclusion and Equity
- As a signatory of the UN WEPs and advocate of an inclusive workplace, we will launch a group-wide approach to DEI
- To be exemplary in women’s leadership empowerment in the workplace at all leadership levels
Signatory of UN Women Empowerment Program
Thriving with Our Communities
Quality Education for Every Filipino
We actively contribute to ensuring the provision of the right to education.
12,292 scholars supported to date
Proper Medical Care
We play a role in providing our community access to quality healthcare.
1.28mn patients served in medical missions to date
Food Security through Farmers' Training
We support families in attaining freedom from hunger and malnutrition.
Farmers’ training and skills sharing through Kabalikat sa Kabuhayan (KSK) on Sustainable Agriculture Program.
Resilient Communities
We build SM’s business resiliency to serve as a platform for our supply chain network’s resiliency
- MSME Resiliency Center
- BCP Systems in 77 SM Malls
Community Development
We build lasting relationships with our communities, offering sustained programs and outreach initiatives that contribute to an enhanced quality of life.
Operation Tulong Express
Living in Harmony with Nature
Waste Management and Plastic Reduction
We develop programs that encourage our customers to do their share for communities and the planet
All SM companies will focus on recycling and reducing waste sent to landfill
- SM Cares people programs which include SM Green Movement
- Trash to Cash
- SMIC became an investing partner of PARMS
- 20% plastic recovery compliance in 2023
Water Recycling and Management
All SM companies will implement water efficiency programs – reduction, recycling and treatment
14.2mn m3 total water recycled
Shift to Renewable Energy Sources
Whenever possible, SM will promote the use of RE
- At least 50% of SMPH Energy Use from RE Sources
- PHP91bn loans disbursed through BDO SEF Funding and Php28.9bn disbursed by China Bank
Accounting of GHG Emissions
SM is committed to managing, measuring and reducing its GHG emissions.
- TCFD signatory
- WWF engagement: Corporates for a Better Planet Initiative Shift to Electric Vehicles and Green Mobility Whenever possible, SM will promote the use of EV 16 malls have EV
Accounting of GHG Emissions
SM is committed to managing, measuring and reducing its GHG emissions.
- TCFD signatory
- WWF engagement: Corporates for a Better Planet Initiative
Shift to Electric Vehicles and Green Mobility
Whenever possible, SM will promote the use of EV
- 16 malls have EV chargers
- 2GO uses Electric Forklifts
Practicing Good Corporate Governance
Ethical Practices and Anti-Corruption
We recognize the importance of implementing good corporate governance practices for the long-term success, sustainability, and growth of the company.
Anti-Bribery and Anti-Corruption Policy
Sustainability Leadership in Our Board
Our board maintains its commitment to upholding the principles of good corporate governance.
Sustainability Policy
ESG Risk Management
We systematically identify, assess, mitigate and monitor risks associated with environmental, social, and governance factors in a structured manner.
ESG Integration in Risk Management Framework
Private and Public Sector Partnerships
We provide access to basic services for the communities we serve
PHPxx Community Investments in 2023
Working with Our Partners
Customer Rights and Data Privacy
Conduct Surveys on Customer Feedback
SMAC Data Privacy
Supporting for MSMEs
We provide growth opportunities for our MSME partners alongside our banks and malls
We build the capacity of our MSME partners to mainstream retailing
Php69.3bn SME/MSME loans by BDO and China Bank
- SM for MSME program and workshops
- SM Green Finds Opportunities
Green Procurement
We empower our partners and team members to make environmentally-friendly procurement options.
Sustainable Suppliers
Access to Sustainable Products and Services (Green Finds)
SM supports customers in their shift to greener lifestyle choices
12,000 products that qualify as sustainable under Green Finds
