SM Prime: Engineering a sustainable future

SM Prime leads the way in sustainable development, integrating sustainability into its core business strategy.

Sustainability has become a driving force across every industry. For SM Prime Holdings, Inc. (SM Prime), one of Asia’s leading integrated property developers, sustainability is elevated through a strategic framework that leverages the company’s extensive operations, significant economic impact, and cultural influence.

SM Prime’s sustainability journey began in the 1990s, guided by a focus on resilience and practicality. The company has always valued substance over style, favoring strategies grounded on real-world application rather than flashy, short-term fixes.  Its strategy is built on what truly matters to the business and the community it serves, ensuring that its sustainability efforts are both effective and enduring.

In its 2023 Annual Integrated Report, SM Prime introduced its Sustainability Ambition Roadmap with a clear and powerful message: Together for a sustainable future – aligned with its vision of creating and managing innovative, sustainable, and integrated property developments that enhance the quality of life for all.

SM Prime’s sustainability strategy is built on three main goals: (1) Environmental sustainability, (2) Prosperity for all, and (3) Climate resilience.

Building on its sustainability framework of Economy, People, Planet, and Community, SM Prime identified three major goals to pursue: Environmental sustainability, Prosperity for all, and Climate resilience – all aimed to create a future marked by sustainability, resilience, and widespread prosperity by 2030, 2040, and beyond.

Under its environmental sustainability strategy are two significant programs released by the company:  Net Zero by 2040 and #SMWasteFreeFuture.

Net Zero by 2040

SM Prime is committed to enhancing people’s quality of life by intensifying climate action, reducing disaster risks, investing in resilient design, protecting biodiversity, and implementing strategic corporate social responsibility programs, with its main focus on climate action toward a net-zero business. The company has been collaborating with the World-Wide Fund (WWF) for Nature-Philippines to establish science-based targets in alignment with the global commitment of a net-zero ambition by 2050.

“We understand the magnitude of the challenges we face to achieve our Net-Zero commitment. SM Prime is determined to take action and meet its climate commitments. This is one of our top agendas in sustainability,” said Jeffrey C. Lim, SM Prime President and CEO.  

SM City Santa Rosa's solar photovoltaic (PV) system has 5,772 panels at 3.088 MWp capacity and has an annual solar energy production of up to 4.292GWh.

#SMWasteFreeFuture

SM Prime launched its vision for an #SMWasteFreeFuture, in support of the United Nations Environment Programme’s (UNEP) International Day of Zero Waste. The program introduces a simple segregation scheme: Recyclable, Disposable, and Compostable (RDC), all aimed at reducing overall waste generation and increasing the waste diversion rate from landfills through sustainable disposal methods. The initiative was launched nationwide for SM employees and across all SM property groups and stakeholders.

SM Prime continues to support existing programs and partnerships that promote better waste management solutions. Initiatives such as SM Supermalls’ Trash-to-Cash recycling market, Plastic Waste Collection and E-Waste Collection programs, and regular coastal and estero clean-up activities effectively engage the community in rethinking their relationship with waste.

To address food waste, SM Hotels and Convention Corporation (SMHCC) has pioneered projects such as The Sustainable Diner with WWF-PH, diverting 198,640 kg of food waste through bokashi composting and 40,013 kg through biodigesters. SMHCC also launched Tela Tales, a program that recycles condemned linens. 

SM Prime gathers the community for a #SMWasteFreeFuture.

SM Development Corporation (SMDC) recently partnered with Globe and Scholars of Sustenance Philippines for the Hapag Movement, aimed at targeting food waste and involuntary hunger affecting millions of Filipinos. “As a community, we strongly believe in our ability to contribute to solving today's waste issues. We understand that this may seem like a daunting challenge to overcome. However, by joining forces, we can create a world that our future generations truly deserve – if we have the courage to take on this journey together,” said Hans “Chico” Sy, Jr., President of SM Engineering Design and Development Corporation (SMEDD) and SM sustainability champion. 

Water stewardship

SM Prime is committed to water stewardship by implementing innovative water conservation and management practices, ensuring that properties developed are more responsive and adaptable to the changing needs of communities.

Through its sewage water treatment plants, wastewater is processed, preventing contaminated water from polluting local waterways and for reuse. The recycled water is utilized in malls for water closet flushing, air conditioning operations and landscape greening.

SM City Baguio’s Rainwater Filtration Facility addresses water security and ensures a safe and sufficient water supply for the operations of the mall and its tenants.

SM Prime Holdings, Inc.’s Chairman Henry T. Sy, Jr. receives SM Prime’s 30th Listing Anniversary Plaque from the Philippine Stock Exchange’s President and CEO Ramon S. Monzon.

Prosperity for all

SM Prime’s developments serve as catalysts for socio-economic progress, delivering tangible benefits to all stakeholders. Founded by Henry Sy, the company remains committed to his vision of bringing world-class developments to the Philippines. A vision perfectly exemplified through the Mall of Asia Complex which offers a blueprint for future cities that go beyond commercial success to embrace a holistic approach to urban development.

SM Prime celebrated its 30th year as a publicly listed company last July 23, signifying three decades of service and transformative growth in the Philippine real estate industry.

“True leadership is marked by a solid dedication to collective success. Our journey at SM Prime demonstrates the power of dreaming big and the incredible achievements that follow when you pursue those dreams with determination and hard work.” – JEFFREY C. LIM, SM PRIME PRESIDENT AND CEO

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Jobs on the Rise: New Urban Developments Are Driving Employment Growth

Photo credit to Anamul Rezwan. Construction jobs are generated from new urban developments.

Cities worldwide, while diverse in demographics and culture, share a common pursuit of progress through new urban developments. These projects not only enhance convenience amid urban congestion but also stimulate local economies and communities through various socio-economic activities like job creation.

Whether in the form of public transportation, cutting-edge business districts, or towering residential communities, a single new development requires a whole host of jobs from pre-construction, to construction, and completion. These range from real estate developers and planners to construction workers and suppliers – all requiring extensive collaboration for successful project development.

Hudson Yards: Direct and indirect employment opportunities

Photo credit to Following NYC. Featuring ‘Vessel’, a honeycomb-like structure and visitor attraction in the Hudson Yards Development in Manhattan, New York City. 

The cycle of job creation doesn’t stop after completion. A new development also drives indirect employment opportunities generated from industries attracted or related to the development. 

Such is the case for Hudson Yards, New York City’s 28-acre mixed-use development and considerably the United States’ biggest megadevelopment in history. It had created thousands of construction jobs that resulted in transforming Manhattan’s iconic skyline and becoming home to diverse shops, offices, cultural institutions, and hotels and residences. Ongoing operations and management of these facilities are expected to contribute to its large-scale economy, such as hosting over 55,752 workers daily and about $19 billion annually to the city’s GDP. 

Dubai and Songdo IBD: Creating economic opportunities afresh

Meanwhile, cities like Dubai and Songdo International Business District (IBD) generate jobs by creating economic opportunities from the ground up. They used land reclamation as an urban development strategy to address land scarcity and high population density challenges.

Photo credit to Kadir Avşar. A closer aerial view of the Palm Islands. 

Dubai's ambitious projects, including the Palm Islands, the World Islands, and Burj Al Arab, have turned it into an ultramodern metropolis for commerce and tourism. In 2023, it drew over 30,000 new businesses, driving demand for talent in finance, legal, and digital technology sectors.

The Songdo IBD is an ongoing smart city built on reclaimed land in Incheon, South Korea. It’s designed to be an international business and residential hub with sustainable features. As of 2020, the 1,500-acre development hosts about 30,000 residents, 33,000 jobs, and 70% fewer emissions than any other development.

SM’s Integrated City Developments: Empowering local communities and residents

SM Prime contributed photo. An aerial view of SM Mall of Asia (MOA) featuring its iconic Globamaze and thriving network of retail, business, residential, and hotel developments. 

The SM Group, a leading conglomerate in the Philippines, has an ecosystem of interests spanning retail, banking, property, and mall developments across the country, making it the largest employer with over 140,000 employees.

For every SM mall development by SM Prime Holdings, the integrated property developer of the Group, the local economy is invigorated because of the opportunities created by supporting small and medium enterprises (SMEs) that comprise about 68% of its mall tenants. For instance, SM City Bataan, SM Supermalls’ 83rd mall, employs about 96% of its mall administration staff who are residents called Bataeños, including two in leadership roles. It also proudly showcases local industries by partnering with homegrown businesses like family-owned brands and locally managed franchises. 

Job security, stable income, and tax revenues contribute to the local workforce’s quality of life; and SM Prime ensures to manifest these waves of progress in its developments, especially in its future plans for smart cities in the Philippines to be spearheaded by its ongoing 360-hectare development in Pasay City.

New urban developments are catalysts for growth, innovation, and avenues for increased prosperity, shaping local economies through job creation and improved lives. The success of these city centers requires a network of opportunities – from its pre-construction supply chain to empowering businesses for individuals to thrive and contribute to the communities.

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SCPW, UAPSA join hands with SM Prime in promoting wetland conservation

 As the world celebrated the International Day for Biological Diversity 2023, SM Prime Holdings Inc. (SM Prime) joined the Society for the Conservation of Philippine Wetlands, Inc. (SCPW) hosted the fourth SCPW Wetland Center Design Symposium on May 29th at the MAAX Building in the Mall of Asia Complex.

SCPW president Arch. Celestino Ulep leads a discussion on nature-based architecture during the fourth SCPW Wetland Center Design Symposium. Photo from SCPW 

Bannering the theme "Build Back Biodiversity: Wetland Centers and Nature-Based Architecture," the hybrid symposium featured presentations on fostering knowledge and awareness about wetland conservation and innovative design approaches. 

SCPW president Ar. Celestino Ulep leads the opening of the Wetland Center Design Symposium.

SCPW president Ar. Celestino Ulep opened the symposium by sharing his optimism on how collaboration and embracing nature-based architecture can create a future where wetlands thrive and biodiversity flourishes. 

Notable experts in the field also graced the event, sharing their insights and experiences, including Chris Rostron, the global manager of Wetland Link International, and Alex Hughes of Wildfowl & Wetlands Trust in London, UK. The guest speakers started the discussion by sharing the pivotal role of Wetland Centers as a tool for Communication, Capacity Building, Education, Participation, and Awareness (CEPA) in wetland conservation efforts. 

Arch. Ulep, meanwhile, engaged the audience by introducing the concept of nature-based architecture, highlighting the importance of prioritizing sustainability and harmony in design by creating structures that seamlessly integrate with the natural environment. 

Meanwhile, Arch. Aaron Lecciones, SCPW Special Projects Officer, made a detailed visual presentation on the Las Piñas-Parañaque Wetland Park (LPPWP) Design Team's experience. He highlighted the challenges and triumphs of designing a wetland park, serving as a source of inspiration for aspiring designers and architects. 

Esteemed partners, including Ms. Rida Reyes Castillo of SM Prime, Dr. Arvin Diesmos of the ASEAN Centre for Biodiversity, Mr. Laudemir Salac of DENR-Region 3, and Arch. Gleo Raymundo of UAPSA graced the event to show their full support for this endeavor. 

"It is an honor and privilege on the part of SM to partner with the SCPW and UAPSA in realizing its common goal of protecting ecosystems, particularly wetlands, by inspiring the youth to engage and take action on the socio-civic and economic issues in their communities by finding workable solutions towards building a sustainable future," SM Prime AVP and Head of Marketing, PR, and Communications Rida Reyes Castillo said.

Castillo further emphasized that environmental protection and nature conservation are integral pillars of SM Prime's sustainability campaign and that they believe in cultivating the younger generation’s devotion to building a sustainable future. 

The symposium concluded with a comprehensive discussion on the rules and guidelines of the design competition, followed by an open forum and exchange of ideas among participants.

The symposium also marked the beginning of the highly anticipated 4th SCPW Wetland Center Design Competition, which aims to create a platform for talented students in construction and design to showcase their skills and ingenuity and encourage them to address environmental challenges through sustainable solutions.

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DENR, SM Prime calls on cities to innovate and invest in water-saving technologies to avert water crisis

 The Department of Environment and Natural Resources (DENR) and SM Prime Holdings, Inc. (SM Prime), one of the leading real estate developers in Southeast Asia, recently called on local public officials to avoid the extraction of groundwater and, instead, invest in rainwater collection for recycling and impoundment, as well as explore new technologies such as modular desalination and modular sewage treatment plants, to manage the effects of climate change on the country’s water resources. 

At the multi-stakeholder forum, “Towards a Greener Footprint”, in Iloilo City recently, Environment Secretary Maria Antonia Yulo-Loyzaga shared solutions-focused guidelines to help the local government reduce carbon footprint, with emphasis on water conservation to address the looming water crisis and increase access to safe water and sanitation. From left to right: Iloilo City Mayor Jerry Trenas, journalist Ces Drilon, Secretary Loyzaga, urban planning and landscape architect Paulo Alcazaren, United Architects of the Philippines (UAP) co-chair Michaela Rossette Santo-Tayag and SM Supermalls Vice President for Corporate Compliance Liza Silerio. Photo credits to Arnold Almacen/Iloilo City Office of the Mayor.

At the multi-stakeholder forum, “Towards a Greener Footprint”, in Iloilo City recently, Environment Secretary Maria Antonia Yulo-Loyzaga shared solutions-focused guidelines to help the local government reduce carbon footprint, with emphasis on water conservation to address the looming water crisis and increase access to safe water and sanitation. 

“We need to invest in the appropriate engineering and infrastructure to deliver water from the source,” Secretary Loyzaga said. “We must avoid, if not reduce drastically, the extraction of groundwater which in low-lying coastal areas causes subsidence and increases flooding.” 

 “Rainwater catchments will not only provide additional supply for household use but will also help ensure the availability of surface water through the maintenance of watershed cover when impounded,” Secretary Loyzaga said.

Based on the latest report of the Philippine Statistics Authority, water abstracted for own use increased from 215.2 billion cubic meters (bcm) in 2020 to 217.8 bcm in 2021 countrywide. From 2010 to 2021, the largest amount of self-abstracted water is for the power sector (58.7%). This was followed by agriculture (33.5%); mining and quarrying, manufacturing, and construction (5.3%); and services sector and households (2.6%).  

Earlier this month, the DENR said the country still has enough water supply, but proper management is needed to prevent a possible water crisis by the end of the year. 

The call was met with a resounding response from the private sector, particularly, SM Prime.  In the same forum, SM Supermalls Vice President for Corporate Compliance Engr. Liza B. Silerio shared how  SM Prime has stepped up the sustainability programs that it has been doing since SM Supermalls started recycling water in the 1990s. 

From rainwater catchment to help deter flooding in communities where its malls are located, SM Prime also pioneered the mall-based rainwater filtration system that converts the collected rainwater to be potable enough for washing, cleaning and even drinking. Launched at SM City Baguio, the facility will supply mall tenants with enough potable water to help reduce sourcing from the communities’ water table. 

“As an integrated property developer, we have seen the first-hand effects of natural hazards that are caused by the change in weather patterns in the Philippines,” Engr. Silerio explained. “El Nino and La Nina are two phenomena resulting from climate change. Our country ranks number one in the World Risk Index 2022 report as the most vulnerable among 193 nations.”

 

Faced with this challenge, Engr. Silerio shared that SM Prime will continue to find innovative ways to address the climate challenges. “We continue to evolve and adapt technology to improve our resource consumption as part of our climate action,” she concluded. 

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SM group to build new school buildings in Laguna, Batangas

Continuing its commitment to helping elevate the country's education system, SM Foundation, Inc. (SMFI), in partnership with SM Prime Holdings, Inc. (SMPHI) and the Department of Education (DepEd), have recently collaborated to construct two new school buildings in Laguna and Batangas.

Upon the completion of the joint initiative, two two-story four-classroom school buildings will be donated to the Laguna Resettlement Community School in San Pedro City, Laguna and the San Antonio Elementary School in Sto. Tomas City, Batangas.

Each of the school buildings is set to be equipped with learning materials, armchairs, handwashing facilities, emergency equipment, and PWD-friendly facilities to ensure that students, especially from low-income communities, gain access to modern, safe, and conducive learning facilities.

Formalizing the partnership, representatives from the SMFI, DepEd, and the local government units of said provinces attended the memorandum of agreement signing last April 28, 2023, at the National Educators Academy of the Philippines (NEAP) in Malvar, Batangas.

SM Foundation, through its School Building Program, is an active partner of DepEd in various educational programs. This social good initiative aims to promote quality public education by building classrooms nationwide. To date, it has turned over more than 100 school buildings to grassroots communities.

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