SM Group Accelerates Clean Energy Push

The SM Group is steadily strengthening its shift toward cleaner energy, increasing the share of renewable energy in its overall electricity consumption to 31 percent in 2025 from 27 percent the previous year.

The move reflects the Group’s broader effort to make sustainability a more visible part of its long-term business strategy, while helping reduce operational costs and improve energy resilience across its nationwide operations.

In 2025 alone, the Group sourced approximately 730 million kilowatt-hours of electricity from renewable sources. The transition contributed to avoiding more than 370,000 metric tons of carbon emissions — an environmental impact comparable to removing nearly 297,000 electric-powered passenger vehicles from the roads for an entire year.

According to Frederic C. DyBuncio, renewable energy investments are becoming increasingly important not just from an environmental standpoint, but also for business continuity and operational efficiency.

The SM Group’s clean energy direction is supported by the Philippine Geothermal Production Company (PGPC), the wholly-owned renewable energy arm of SM Investments Corporation. PGPC currently operates the Mak-Ban and Tiwi geothermal steam fields located in Batangas, Laguna, and Albay.

These geothermal facilities are capable of generating up to 400 megawatts of renewable energy that can continuously supply electricity to homes, offices, and industrial facilities. The Mak-Ban and Tiwi steam fields alone can produce enough geothermal steam annually to power as many as one million households.

Beyond its existing operations, PGPC is also exploring six additional geothermal sites across Luzon. These developments could potentially contribute another 400 megawatts of renewable energy capacity to help support the country’s long-term energy requirements.

The Group’s renewable energy initiatives are also visible throughout its property and retail businesses. SM Prime Holdings has already installed more than 200,000 solar panels across 69 properties nationwide as part of its energy efficiency and sustainability initiatives.

Meanwhile, Alfamart recently added solar panels to its Saraiya Distribution Center in Quezon Province. The facility now operates with a solar peak capacity of 120.28 kilowatt-peak, helping improve energy efficiency within its logistics and supply chain operations.

The Group’s banking institutions are likewise supporting sustainability through green financing programs. BDO Unibank reported that as of end-2025, it had funded PHP 1.21 trillion worth of sustainable projects, including 71 renewable energy developments valued at PHP 177 billion.

At the same time, China Banking Corporation extended PHP 72 billion in financing for projects related to renewable energy, energy access, and energy efficiency during the year.

As SM Group continues to expand across retail, property, banking, and portfolio investments, sustainability remains increasingly integrated into its broader operational and growth strategies.