SM Remains on Track to Cut Emissions by 40% by 2040

SM Investments Corporation (SM Investments) is advancing its long-term sustainability agenda as it continues to make significant progress toward reducing its greenhouse gas emissions by 40% by 2040, driven by a broad range of renewable energy and operational efficiency initiatives across its businesses.

Speaking during the MUFG NOW Manila forum titled “Pathways to a Sustainable Future: Opportunities and Challenges,” Timothy Daniels, Consultant and Head of Sustainability and Investor Relations at SM Investments, emphasized that the company’s emissions reduction target is backed by practical investments that have been integrated into its operations over several years.

According to Daniels, SM established its climate goals after identifying areas where emissions could be meaningfully reduced through realistic and measurable actions. The company’s strategy focuses on implementing projects that not only support environmental objectives but also improve operational efficiency and strengthen long-term business resilience.

He noted that sustainability has become a core business approach for the group, helping lower operating costs, improve energy reliability, and build resilience while creating value for stakeholders.

One of SM’s major initiatives is the widespread deployment of solar energy across its properties. The group has installed more than 200,000 solar panels nationwide, allowing many of its facilities to generate clean electricity while reducing dependence on conventional power sources.

Its mining subsidiary, Carmen Copper Corporation, has likewise expanded the use of renewable energy through a floating solar power facility at the Malubog Reservoir in Cebu. Covering three hectares, the installation consists of 8,540 solar panels capable of producing 4.99 megawatts of electricity, enough to potentially supply around 10% of the mine’s energy requirements.

SM has also strengthened its renewable energy portfolio through its investment in Philippine Geothermal Production Company (PGPC), which operates geothermal steam fields in Southern Luzon. The move supports the group’s strategy of increasing the use of clean and reliable energy sources while contributing to the country’s broader renewable energy goals.

Meanwhile, the group’s financial services arm, BDO Unibank, continues to play a key role in financing sustainable development. BDO has already extended approximately Php1.2 trillion in sustainable financing, including funding support for 71 renewable energy projects with a combined installed capacity of 6,165 megawatts, helping accelerate the country’s transition toward cleaner energy.

Daniels added that while businesses can significantly reduce emissions through energy efficiency measures, on-site renewable energy generation, and clean power procurement, achieving larger climate targets will also require continued expansion of renewable energy supply, stronger transmission infrastructure, and improvements to the national power grid.

With sustained investments across its retail, property, banking, and mining businesses, SM Investments continues to integrate sustainability into its long-term growth strategy while contributing to the Philippines’ transition toward a lower-carbon economy.