Growing trend: Investors eye higher transparency in sustainability programs— SM

(14 June 2018. Pasay City, Philippines) Investors are putting more importance on higher transparency in sustainability initiatives through reports or disclosures, SM Investments Corporation (SM) said in a recent forum.

During the first ever Carbon Disclosure Project (CDP) workshop in the Philippines, Tim Daniels, Consultant, Investor Relations at SM said there is a growing trend among global investors in monitoring companies’ compliance to sustainability disclosures.

Daniels said many funds select companies to invest in that have proven sustainability track records. These global funds also expect to see how corporate activities relate to the 21 Sustainable Development Goals of the United Nations and use reports from several sustainability rating agencies for their investment decisions.

“We recognize the urgent call of organizations such as the CDP to act to prevent dangerous climate change and environmental damage. SM is committed to increasing awareness of the importance of these initiatives through a combination of education, measurement and disclosure and by taking the actions needed,” Daniels said.

As part of the CDP efforts of the SM Group, Daniels said SM’s banking unit, BDO Unibank has created a unit focused on green funding which financed PHP14.1 billion worth of sustainable energy projects last year. These projects will help avoid over 636,000 tons of carbon dioxide emitted per year.

In its department stores, SM invests in energy-efficient equipment and measurement tools and continue with efforts to convert more than 274,000 lighting fixtures to LEDs (light-emitting diode). In its malls, SM has increased its use of recycled water by 56% to 5.6 million cubic meters in 2017 from 3.6 million cubic meters in 2014.

In 2014, SM launched 5,760 solar panels on the rooftop of SM City North Edsa which has now grown to 33,000 solar panels across all SM Malls. In 2017, SM malls generated 3.8 million tons of solid waste of which 1.5 million tons were recycled.

“We can see a link that runs from sustainable practices and transparent reporting through to investor recognition and shareholder support and to superior market performance,” Daniels said.

The first CDP workshop in the Philippines, held last May 7 at the SMX Convention Center in SM Aura drew a number of both private and public representatives including the provinces of Bulacan, Batangas, Laguna, Makati, Pasig, Muntinlupa, Cebu, Iloilo, Bacolod and Dipolog.

CDP aims to bring together companies, investors and cities in the Philippines to facilitate cross-sectoral knowledge-sharing on environmental disclosure and the key actions needed for the transition to a sustainable, resilient economy through a one-day workshop. In 2017, approximately 6,300 companies and over 570 cities globally disclosed their data related to climate change, water and forests risks, opportunities, impact and actions through CDP. Of these, 10 companies and 21 cities were based in the Philippines.

About SM Investments Corporation

SM Investments Corporation is a leading Philippine company that is invested in market-leading businesses in retail, banking and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM’s retail operations are the country’s largest and most diversified with its food, non-food and specialty retail stores. SM’s property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM’s interests in banking are in BDO Unibank, Inc., the country’s largest bank, and China Banking Corporation, the 7th largest bank.

For more about SM, visit www.sminvestments.com

For further inquiries, please contact:

Paul Arcenas
VP, Planning and Corporate Communications
SM Investments Corporation
E-mail: paul.arcenas@sminvestments.com
Tel. No. (632) 857-0100 local 1039