Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Sustainability

Governance Achievements

• Added requirement to observe diversity in the composition of the Board of Directors
• Added additional qualification for directorship in line the strategic goals of the Company
• Added maximum number of allowable board seats that may be held simultaneously by executive and non-executive directors.
• Added procedures for the nomination of directors
• Updated/added policies on related party transactions, customer welfare, employee welfare, corporate social responsibility and environmental sustainability

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Economic Growth
• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Generated 5,800 Megawatts of renewable energy
• Recycled 33% of water consumed (4.7 million cubic meters)
• 84% solid waste averted to landfill
• 58% biodegradable wastes converted to vermi-compost
• 30% decrease in electricity cost at Hamilo Coast due to solar absorption cooling system

Social Achievements

• Completed commitment to build 1,000 disaster-resilient houses in four villages for Supertyphoon Yolanda victims
• More than 1,000 employees participated in Adopt-A-School program
• Hundreds of employees cleaned up 57 public elementary schools
• Casual Employment Program for Senior Citizens
• SM Cares Housing Project for Yolanda Survivors

Governance Achievements

• Revised Manual on Corporate Governance aligned with SEC’s Revised Code of Corporate Governance
• Appointed Mr. Jose L. Cuisia, Jr. as lead independent director
• Adopted a board diversity policy
• 100% attendance in all Board and Committee meetings

Climate Goals & Targets

Environmental Challenges

• High demand for purchased electricity leading to high indirect energy consumption
• Waste generation and disposal
• Water consumption

Mitigation Strategies

• Investing in new technologies and strategies for energy efficiency (LED conversion, skylighting)
• Partnership with Tropical Focus Philippines Inc. for air-conditioning management
• Daily water recycling through Sewage Treatment Plants (STPs)
• Implementation of 3Rs (Reduce, Reuse, Recycle) in waste management
• Vermicomposting at Hamilo Coast

Supply Chain Management

Supplier Audits: 98% of business partners based within the country, annual screening based on quality of service, cost efficiency, moral standing, and compliance with laws

Responsible Procurement

• Preference for local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Intensified typhoons, increased storm surges

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Certifications: ISO 22301:2012 (Business Continuity Management System) Certification (for several SM properties)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards listed in the report (pages 42-43)

Environmental Metrics

ESG Focus Areas

• Economic
• People
• Environment
• Community

Environmental Achievements

• 28% decrease in electricity consumption in all SM Prime properties
• 36% of wastewater is recycled for reuse in mall operations
• 9,620 MWh generated solar power provides renewable energy
• 3 coves declared Marine Protected Areas: Santelmo, Pico de Loro and Entayo
• 22 rainwater catchment basins divert floodwaters from communities
• 50,970 kg of office documents were collected in the recycling program
• 176 hectares of biodiversity in Pico de Loro is estimated to absorb 1,127 tons of CO2 in the air
• 70% of SM Malls in the Philippines are ISO 22301 BCMS Certified

Social Achievements

• PHP 23.30B total amount waived in rental relief
• PHP 333.9M total donation and financial assistance to agency personnel and LGUs
• PHP 218M for the Adopt-a-River program where 35,000 kg of trash was recovered
• PHP 95.2M in financial support, CSR marketing campaigns and PR value
• 1:1 ratio of men:women in top management
• PHP 13.7M budget spent on employee learning and development
• PHP 999.6M for employee compensation during the quarantine period
• PHP 6.6M worth of safety supplies provided to employees
• Launched SM Mall online app
• Launched “Trace Together,” a generic mobile tracing tool

Governance Achievements

• Received Golden Arrow Award from the Institute of Corporate Directors
• 100% attendance of pollution control officers in Basic Occupational Health and Safety training
• 53 BCMS certified (ISO 223001 compliant) SM Supermalls
• SM Disaster Resilience Policy Framework implemented

Climate Goals & Targets

Environmental Challenges

• Global COVID-19 Crisis
• Climate Change
• Supply chain disruptions
• Increased cost of water supply
• Increased cost of electricity
• Increased cost of waste disposal
• Stricter Government Regulations
• Water shortage
• Increased volume of GHG in the air

Mitigation Strategies

• Provided financial aid and waived rental fees
• Developed alternative sourcing strategies
• Implemented energy and water conservation measures
• Implemented water and paper recycling programs
• Implemented tree planting activities
• Developed resilient design and technology for infrastructure and communities
• Public-Private Partnerships with government
• Creation of a circular economy
• Business Continuity Management System (BCMS)
• SM Disaster Resilience Policy Framework
• Trace Together contact tracing solution
• Virtual Office

Supply Chain Management

Responsible Procurement

• Stringent selection criteria for contractors
• Contractor management guidelines requiring compliance with local government and legal requirements
• Programs to influence supply chain to operate responsibly in areas of anti-corruption, human rights, health and safety, and environmental management

Climate-Related Risks & Opportunities

Physical Risks

• Rising sea levels
• Violent storms
• Long intense heat waves
• Flash floods
• Fresh water depletion
• Earthquakes
• Volcanic eruptions
• Typhoons
• Flooding

Transition Risks

• Stricter Government Regulations
• Increased stakeholder expectations

Opportunities

• Development of energy-efficient products
• Reduction in operational and maintenance costs
• Reduction of GHG emissions
• Government incentives

Reporting Standards

Frameworks Used: GRI Standards: Core Option, Task Force on Climate-related Financial Disclosures (TCFD), UN Sustainable Development Goals, UN Global Compact, Sendai Framework for Disaster Risk Reduction

Certifications: LEED Gold, ISO 223001 (BCMS)

Awards & Recognition

• Grand Stevie - Organization of the Year 2020
• Philippines Best Employer Brand Award
• 10th Asian Excellence Award
• Malls Brand of the Year
• Platinum Award Reader’s Digest Most Trusted Brand
• Gold Award - Most Bicycle Friendly Commercial Establishments
• Circle of Excellence for Wellness
• Company of the Year
• Best Customer Experience Initiative
• Gold Award for “Pride in My Purpose”
• Silver Award for 2018 Sustainability Report
• Asia’s Best CSR
• Best Corporate Communications
• Best Investor Relations Company in the Philippines
• 4-Golden Arrow Recognition
• 2019 ASEAN Corporate Governance Scorecard Recognition
• ASEAN Top 20 Publicly Listed Companies
• ASEAN Asset Class Publicly Listed Companies
• Asia’s Best CSR
• Best Corporate Communications
• Best Investor Relations Company in the Philippines
• Grand Stevie for Most Honored Organization
• Gold Award for Innovation in Consumer Products & Services
• Gold Award for Innovation in Energy & Sustainability
• Gold Award for Innovation in Branded Entertainment
• Silver Award for Innovation in Energy & Sustainability
• Silver Award for Innovation in Living, Learning, and Working Environments
• Silver Award for Innovation in Public Affairs Communications
• Silver Award for Innovation in the Use of Events
• Silver Award for Innovation in Branded Entertainment
• Silver Award for Innovation in Entertainment Events
• Silver Award for the Innovative Use of Technology in Customer Service
• Silver Award for Innovation in Human Resources Management
• Silver Award for SM Supermalls Employee Transformation Journey
• Bronze Award for Innovation in Community Relations or Public Service Communications
• Bronze Award for Innovation in Branded Entertainment
• Bronze Award for Innovation in Social Media Marketing
• Bronze Award for Innovation in Consumer Events
• Bronze Award for Innovation in Entertainment Events
• Bronze Award for Innovation in Lifestyle Videos
• Bronze Award for Innovation in Living, Learning, and Working Environments
• Bronze Award for Innovation in Energy & Sustainability
• Bronze Award for Innovation in Public Relations Videos
• Bronze Award for Innovation in Community Relations or Public Service Communications
• Best Developer
• Best Lifestyle Developer
• Best Mid-End Condo Development
• Best Condo Development
• Best Lifestyle Development
• Best Condo Architectural Design
• Best Landscape Architectural Design
• Longest Sustainability Partner
• Agoda’s 2020 Customer Review Award
• Hotels.com Loved by Guest Award
• ASEAN Green Hotel Award
• ASEAN Mice Hotel Award
• Traveller Review Award
• ASEAN MICE Venue Award
• Best Luxury Hotel
• Luxury Contemporary Hotel
• Luxury Scenic Setting
• Philippines’ Best Hotel Spa
• Philippines’ Best MICE Hotel
• Philippines’ Leading Conference Hotel
• Recommended Award
• Certificate of Appreciation
• Gold Award for Global Youth Summit
• Gold Award for Emergency Preparedness Forum
• Silver Awards Program Category
• Silver Award Tool Category
• Silver Award for Emergency Preparedness Forum
• Highly Commended
• Special Recognition in CSR
• Winner for Community Management
• Winner for Community Management

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Economic Advancement
• Climate Resilience
• Shared Prosperity

Environmental Achievements

• Significant transition toward clean energy sources and energy-efficient systems since 2020.
• Achieved a 61% water recycling rate in 2023.
• Recycled 13% of waste generated in 2023.
• Composted 5% of waste generated in 2023.
• Invested in biking, walking, and mass commuting infrastructure.
• Dedicated 10% of each property’s expenditure to sustainable and resilient design.
• Achieved Gold LEED certifications for several malls.
• Installed 34 electric vehicle charging stations across 28 malls.

Social Achievements

• Opened three new malls in Bataan, San Pedro, and Sto. Tomas, boosting retail spaces and enriching customer experiences.
• Launched groundbreaking residential projects like Ice Residences and collaborated with Federal Land on The Estate in Makati.
• Solidified partnership with Radisson Hotel Group and Lanson Place Hospitality Management Limited (LPHML).
• 67% of mall tenants are micro, small, and medium entrepreneurs (MSMEs).
• Various advocacies including community disaster preparedness, support for senior citizens and PWDs, livelihood generation and entrepreneurship.
• Launched the YOUth are the Future program in partnership with WWF-Philippines.
• Received the Five Golden Arrow Award from the Institute of Corporate Directors (ICD) and Asia’s Best Employer Brands from CMO Asia.
• Recognized at the Steward Leadership 25 for driving sustainable and profitable growth.

Governance Achievements

• Amended SM Prime’s Manual on Corporate Governance (MCG) and Board Committee Charters to align with local laws and regulations and best practices.
• Received the Five Golden Arrow Award, the highest corporate governance distinction in the Golden Arrow Recognition.

Climate Goals & Targets

Environmental Challenges

• 13% increase in total emissions across all three scopes in 2023, reflecting increased projects.
• Global economic slowdown.
• Climate-related impacts affecting operations.
• Transition risks related to net-zero emissions and regulatory changes.
• Physical risks accelerating asset deterioration.

Mitigation Strategies

• Partnered with the World Wide Fund for Nature (WWF) Philippines for a net-zero roadmap and third-party renewable energy suppliers.
• Incorporated resilient design and materials in developments, risk assessment models, and disaster-risk reduction measures.
• Investing in CAPEX for resilient design and securing property insurance.
• Fortifying group-wide strategy to transition to renewable energy sources, building resilience across the supply chain, and developing new services.
• Working closely with WWF-Philippines and other sustainability partners to address climate risks and opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Accredited suppliers meeting established standards.
• Workshops, training, and forums for suppliers.
• Vendor Portals for efficient communication and management.

Climate-Related Risks & Opportunities

Physical Risks

• Natural catastrophes
• Asset deterioration
• Increased operations and maintenance costs

Transition Risks

• Market risks related to net-zero emissions
• Regulatory changes
• Carbon pricing

Opportunities

• Maximizing existing environmental infrastructure
• Introducing new low-carbon technologies
• Strengthening monitoring and evaluation practices
• Strengthening overall resilience

Reporting Standards

Frameworks Used: GRI Standards

Certifications: LEED Gold (several malls), ISO 22301 (BCMS) - 77 malls

Third-party Assurance: Sycip Gorres Velayo & Co. (SGV)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Disaster-resilient buildings
• Green building designs
• Renewable energy solutions
• Electric vehicle charging stations

Awards & Recognition

• Five Golden Arrow Award (ICD)
• Asia’s Best Employer Brands (CMO Asia)
• Steward Leadership 25
• Philippines’ Best Employers 2024 (Philippine Daily Inquirer and Statista)
• Asia’s Best Employer Brands 2023
• Apolinario Mabini Awards
• Mobility Awards 2023
• Healthy Pilipinas Awards
• Anvil Awards