SM Sustainability

Our Sustainability Agenda

At SM, we recognize our role in shaping the country’s social, economic, and environmental landscape.

Our approach to sustainability is practical, meaningful, and focused on where we can make the greatest impact. Guided by what matters most to our stakeholders and our business, we design resilient cities, support inclusive financial growth, enable climate action, promote greener lifestyle choices, and invest in the well-being of communities. By aligning our growth with national priorities and global shifts, we create shared value that makes a difference – where it matters most.

Sustainable and Resilient Integrated City Development Designs

We’re shaping the future of urban living by creating eco-cities that turn second-tier cities into vibrant, sustainable hubs.

With green spaces, walkable neighborhoods, and smart design, we build resilient communities people can live, work, and connect in harmony with nature.

Eco-Cities

Financial Inclusion, Job and Entrepreneurship Creation

We deliver a full range of banking services to deliver growth and financial inclusion.

Sustainable Financing

Climate Action and Just Transition towards a Low Carbon Economy


We strengthen climate resilience with smart adaptation and bold mitigation approach—protecting communities while reducing our environmental impact.
Climate Action

Green Options for Sustainable Lifestyle Shifts


We create modern retailing to address the needs and aspirations of the Filipino.
Responsible Retail

Societal Well-Being and Development


Wherever we operate, we help close social gaps by expanding access to education, healthcare, and livelihoods. We support diverse talent, promote gender equity in leadership, and create space for careers to grow—with equal opportunity at the core of it all.
People and Progress

Partners in Purpose

United Global Compact

SM’s approach to sustainability is grounded in core values and aligned with the UN Global Compact (UNGC), a voluntary initiative that promotes principles covering human rights, labor, environment, and anti-corruption. By integrating these principles into our strategies, we ensure sustainability is embedded in our operations.

Our commitment to the UN Sustainable Development Goals (SDGs) is reinforced through our membership in the UNGC and leadership in the Global Compact Network Philippines (GCNP), where we co-lead the Prosperity Pillar, focused on MSME recovery, resilience, and growth. Through programs like Biyaheng DigiSkarte, we help MSMEs bounce back from the pandemic by harnessing digital tools, promoting resilience, and creating opportunities for growth.

Our partnerships extend across sectors, where we collaborate with like-minded leaders from the People and Planet pillars to launch impactful initiatives like the MSME Caravan and Sustainability School. Together with our partners, we build capacity, create market access, and foster a competitive, sustainable economic environment.

Women’s Empowerment Principles

SM partners with UN Women to advance gender equality and empower women, recognizing that it is essential not only for human rights but also for driving economic growth and social progress. Established in 2010, UN Women has been a global advocate for gender equality, working toward the Sustainable Development Goals by ensuring women lead in governance, achieve economic autonomy, live free from violence, and contribute to building sustainable communities.

In 2021, SM reinforced this commitment by signing the UN Women’s Empowerment Principles (WEPs), a global initiative that promotes fair treatment, leadership opportunities, and economic inclusion for women. With women comprising 63% of SM’s workforce, including 58% in leadership roles, the company continues to lead by example, aligning its core values with the UN Sustainable Development Goals.

SM supports SDG Goal 17: Partnerships for the Goals, understanding that collaboration is key to achieving the 2030 Agenda. As part of this, SM has partnered with the United Nations Office for Disaster Risk Reduction (UNDRR) to help address the Philippines’ vulnerability to disasters.

SM Prime, under the leadership of Chairman Hans T. Sy, has been a key advocate for disaster risk reduction (DRR) since 2012, helping establish ARISE-Philippines in 2015, a private sector alliance promoting disaster resilience and climate-smart solutions. Under his leadership, SM companies are signatories of the UN ARISE and have incorporated disaster resiliency as part of corporate planning with SM Prime even investing 10% of CAPEX to incorporate sustainability and resiliency in its infrastructure.

It is projected that by 2040, roughly 1 in 4 children worldwide will be living in areas with extremely limited water resources. UNICEF works to ensure that every child, especially the most vulnerable, has access to essential services like clean water, education, and healthcare. For the Philippines, SM is engaged through a fundraising campaign called ‘Drink for 2.’

SM and UNICEF collaborated to improve water access in the province of Capiz. For every bottle of SM water sold, a portion of the proceeds went to a fund dedicated to providing clean drinking water, proper sanitation, and hygiene education in ten barangays.

As a supporter of the TCFD, SMIC is committed to enhancing transparency around climate-related risks and opportunities. The TCFD framework guides companies in disclosing how climate risks are integrated into governance, strategy, risk management, and metrics and targets. By aligning our reporting with TCFD recommendations, we strengthen our climate risk disclosures, build greater stakeholder confidence through clear and consistent reporting, and support informed decision-making across our business. This commitment reinforces our dedication to long-term value creation and responsible corporate governance in addressing climate change.
In 2022, we partnered with WWF-Philippines through their Corporates for a Better Planet Initiative (CBPI) to assess climate-related risks and opportunities across our businesses. This collaboration supports the development of both a decarbonization plan—to help limit global temperature rise—and a climate adaptation plan. Key activities include measuring carbon emissions and conducting climate scenario analysis, which guide data-driven decisions and long-term sustainability planning. Companies that have participated in the program include PGPC, 2GO, Airspeed, and in a second batch, SM Retail, Goldilocks, and NEO.