SM Investments Corp. (SMIC) said in a virtual forum on Wednesday that it would sign up to support the Task Force on Climate-related Financial Disclosures (TCFD), ensuring its businesses will do their part in meeting global sustainability targets.
“We recognize the material role we play in the Philippines. We understand our responsibilities and we commit to using the TCFD recommendations to be part of the solution to climate change,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a forum organized by the Climate Change Commission.
SMIC joins 2,300 more supporters in committing to providing climate disclosures.
The TCFD is a globally recognized set of recommendations of the Financial Stability Board. It is also some of the ESG (environmental, social, and corporate governance) reporting frameworks recommended by the country’s Securities and Exchange Commission.
Climate risk disclosures can help investors make more informed decisions. Through these, stakeholders can also understand the financial system’s climate-related risk exposure.
The company is also a member of the global 50 Sustainability & Climate Leaders project.
SMIC has “tens of thousands” of micro, small, and medium enterprises, which are said to be among the “most vulnerable to the effects of climate change.”
The company’s banking unit, BDO Unibank, Inc., started a risk-based Sustainable Energy Finance Program with the World Bank’s International Finance Corp. The program focuses on renewable energy and energy efficiency project financing.
Meanwhile, for its malls and lifestyle developments, SMIC allocates 10% of capital expenditures to ensure a project’s disaster resiliency and sustainability.
“For a business to be able to continue to grow and last for many years, it’s very important that it supports the community in a sustainable way. In the end, it’s the community and the environment that sustains the high growth of our businesses,” said Mr. DyBuncio.
Source: Business World