Document No.
GRC- 005
Version No.
2.0
Effective Date
February 12, 2024
1.0 OBJECTIVE
This Sustainability Policy aims to integrate a philosophy of sustainable development into all the organization’s activities, manage the company’s sustainability-related risks and opportunities, and establish and promote responsible corporate socio-economic and environmental practices. This serves as the organizational policy with articulated principles and commitments from which implementing rules and regulations must be developed for the full realization and practice in day-to-day operations, and shall be regularly reviewed and updated as necessary.
2.0 OUR SUSTAINABILITY PRINCIPLES
SM Investments Corporation (SMIC) envisions to be a catalyst for responsible development in the communities it serves. To realize this, SM incorporates sustainability as part of SM’s business as usual.
1. SM Standards: Adherence to Sustainability Global Standards
We uphold globally accepted sustainability standards, frameworks and practices, take leadership roles in sustainability issues where we create the most positive impact and comply to all applicable national and local laws and regulations.
2. SM Sustainability Culture: Sustainability Leadership and Business Strategy
We establish sustainability governance in critical levels of leadership from the Board Level, Group Level and Business Unit Levels, to ensure the integration of sustainability in business agenda, decisions and investment choices.
3. SM Stewardship: Environmental and Social Management
We manage all corporate activities that may pose any threat to planetary boundaries, develop programs towards a just transition to low carbon economies, and promote nature-based solutions to facilitate circular economies; we ensure adherence to human and labor rights, and the promotion of diversity, equity and inclusion; and support sustainable development wherever we are present.
4. SM Sustainability Engagement: Stakeholder Communications and Advocacies
We take active leadership and participation in advancing sustainability and promoting sustainable development by creating global and local partnerships, aligning with global sustainability campaigns, engaging our customers, communities and stakeholders through various sustainability programs, and advocating for national policies and programs.
5. SM Transparency and Accountability: Integrity in Sustainability Disclosures
At all times, we exercise utmost integrity in sustainability disclosures, providing timely, accurate and balance reporting to our stakeholders.
3.0 OUR COMMITMENT and INITIATIVES
With SMIC serving as lead and exemplary to the group, all business units within the SM group are expected to develop their respective sustainability principles, commitments, policies and initiatives aligned to the SM group Sustainability Principles and Commitments as stated in this policy.
Sustainability Governance at SMIC
- Sustainability Leadership Structure: Establish a Sustainability Oversight Committee at the Board Level, whether incorporated in an existing committee or develop a stand-alone committee; appoint a Sustainability Officer in charge of strategy development and management of sustainability in the Company
- Sustainability Operating Systems: Develop and Implement a Sustainability Management System（SMS） , which may also be referred to as an Environmental and Social Management System（ESMS） , a Sustainability Roadmap, and form relevant sustainability working committees to ensure that the Company has the appropriate processes, procedures and governance structures in place to successfully implement the organization’s sustainability agenda
- Sustainability Risk Management: Develop an active Sustainability Risk Management Framework that is implemented through existing global frameworks such as, but not limited to, ISO31000, COSO WBCSD ESG Risk Management Framework, Task Force on Climate- Related Financial Disclosures, Taskforce on Nature-related Financial Disclosures, ISSB IFRS S1 and S2 Risk Frameworks or other national frameworks issued by the Securities and Exchange Commission（SEC）, Bangko Sentral ng Pilipinas（BSP） , or other sustainability governing bodies, and is regularly reviewed and assessed.
Environmental Sustainability
- Protection of Biodiversity and Natural Habitats: Participate in efforts to improve the conservation of natural habitats and the protection and maintenance of natural ecosystems to enhance biodiversity and prevent the loss of species especially those that are of direct administration by the SM group
- Management of Energy Sources: Ensure energy efficiency throughout the group, and whenever possible prioritize the use of renewable energy sources
- Management of Resources: Within our operations, promote processes that do not adversely affect the environment through avoidance of materials with irreversible effects, conservation of the use of natural resources and application of innovations that minimize a single linear economy and promote a circular economy model
- Climate Action: Evaluate climate change risks and vulnerabilities, adopt measures to mitigate its impact on the short-term and long-term effects on the Company’s operations and employ innovative solutions to adapt to low-carbon economies and other transitions related to climate shift
- Environmental Compliance: Ensure the Company’s compliance with applicable national and local environmental laws and guidelines stipulated in the implementing rules and regulations thereof
Social Sustainability
- Occupational Health & Safety: Provide a healthy and safe working environment adhering to national laws and global best practices, incorporating other health issues such as mental health
- Human and Labor Rights: Protect the dignity and human rights among our employees, suppliers and communities and promote diversity, equity, inclusion and belonging in our workplace Community Development: Promote and provide opportunities to achieve basic social rights such as access to food security, education, health care and financial inclusion
- Responsible Value Chains: Integrate sustainability standards in the accreditation and selection of suppliers as well as raise sustainability awareness and provide access to capacity building for suppliers
Sustainability Stakeholder Engagement, Disclosures and Reporting
- Stakeholder Consultation: Conduct regular consultation, feedback or surveys to stakeholder groups as basis of identifying sustainability material topics, risks, untapped opportunities and impact assessments
- Sustainability Data Integrity: Measure and report our sustainability approach, key programs and key metrics, and, whenever possible, obtain external assurance
- Sustainability Double Materiality: Report both progress and impacts of sustainability material topics to SM’s business continuity as well as the impacts of the Company’s activities to the communities and the environment
- Sustainability Reporting Standards: Align with globally accepted standards and frameworks such as, but not limited to, ISSB S1 and S2, Global Reporting Initiative （GRI）, International Integrated Reporting Council （IIRC）, Sustainability Accounting Standards Board (SASB), Taskforce on Nature-related Financial Disclosures （TNFD）, Task Force on Climate-Related Financial Disclosures （TCFD） and International Financial Reporting Standards （IFRS）
- Stakeholder Awareness: Enhance awareness among our employees, business partners, customers, host communities and other stakeholders through educating, motivating and engaging them to take active participation in advancing social and environmental responsibility
- Sustainability Advocacy: Advocate for national policies that advance the sustainable development agenda of the country for private sector participation
This policy is complemented by the SMIC Sustainability Management System as illustrated below and supports the organization’s Corporate Governance and Compliance Framework. SMIC Sustainability Group Roadmap is a live document developed, managed and monitored by the SM Group Sustainability Office.
The SM Sustainability Management System
| Sustainability Policy |
| Sustainability Strategy |
| Sustainability Management System |
| Environment | Social | Sustainability Governance |
| -Climate Change Policy -Resource Management Policy -Environmental Preservation and Conservation Policy | -Human Rights Policy -Anti-Corruption & Anti-Bribery Policy -Anti-Discrimination & Anti-Harassment Policy -Occupational Health and Safety Policy -Sustainable Supply Chain Policy -Stakeholder Engagement Policy -Equal Opportunity Policy | -ESG Risk Management Policy |