SM Group Takes Major Steps Toward Renewable Energy Adoption by 2025

In a significant stride towards sustainability, SM Investments Corporation, the parent entity of the SM Group, revealed its ambitious plan to elevate its renewable energy sourcing to 31% by the year 2025. This marks an increase from 27% in 2024, illustrating the Group's commitment to cleaner energy across its diverse portfolio of businesses.

In 2025, the Group aims to source an estimated 730 million kilowatt-hours (kWh) of electricity from renewable sources. This shift not only reflects a strategic move towards environmental responsibility but also contributes to a substantial decrease in carbon emissions. By utilizing renewable electricity, the Group effectively avoids releasing approximately 370,644.07 metric tons of carbon dioxide into the atmosphere, which is equivalent to removing around 296,954 electric vehicles from the roads for an entire year.

Frederic C. DyBuncio, President and CEO of SM Investments, emphasized the dual benefits of investing in renewable energy, stating, "For us, investing in renewable energy is both a sustainability and business decision. It aids in managing long-term energy costs, improving operational efficiency, and building more resilient businesses to better serve our customers, tenants, communities, and other stakeholders."

Leading the charge in this renewable energy strategy is the Philippine Geothermal Production Company (PGPC), a wholly-owned subsidiary of SM Investments. PGPC operates the Mak-Ban and Tiwi steam fields situated in the provinces of Batangas, Laguna, and Albay, generating up to 400 megawatts of clean, renewable geothermal energy around the clock. The company is currently exploring new geothermal sites in six locations across Luzon, which could augment this capacity by an additional 400 megawatts.

The steam fields at Mak-Ban and Tiwi alone are capable of supplying enough geothermal steam to power nearly one million households annually. Mr. DyBuncio added, "Reliable and affordable energy is crucial, not only for businesses but also for communities and the broader economy. We believe renewable energy, particularly geothermal, can help bolster long-term energy security while fostering economic growth."

Renewable energy efforts are increasingly evident throughout the SM Group's extensive integrated developments. SM Prime Holdings, known as the largest integrated property developer in the Philippines, has installed over 200,000 solar panels across 69 properties, as part of its broad energy efficiency strategies.

Additionally, Alfamart has also joined the renewable movement, recently installing solar panels at its Saraiya Distribution Center in Quezon Province, boasting a solar peak capacity of 120.28 kilowatt-peak (kWp). This initiative not only enhances operational efficiency but also streamlines its supply chain network.

The Group's banking divisions are not lagging behind; they have stepped up to support sustainable financing initiatives. By the end of 2025, BDO Unibank, Inc. has funded a total of PHP 1.21 trillion in sustainable projects, which includes 71 renewable energy developments totaling PHP 177 billion. Meanwhile, China Banking Corporation has also contributed by providing PHP 72 billion in financing for projects focused on energy access, renewables, and energy efficiency in 2025.

In summary, SM Investments continues to integrate sustainability into its operational framework across retail, property, banking, and portfolio investments, marking a notable advancement towards a greener future. As they aim to harness renewable resources effectively, the Group's initiatives are set to inspire other organizations within the Philippines and beyond to follow suit in the pursuit of sustainable practices. For further insights and updates about SM Investments Corporation, visit www.sminvestments.com.