SM Prime Holdings, Inc. (SM Prime) has advanced resource stewardship through water circularity initiatives, implementing water conservation measures across its nationwide network of SM Supermalls since the late 1990s.

Embedded in its operations, SM Malls uses innovative water management systems that save water and reduce wastage - drawing less from the national water grid and creating value in an increasingly volatile time. 

Macro to Micro: SM’s approach to water conservation

Against the looming possibility of an extended drought caused by El Niño, saving every drop of water finds greater importance for SM Supermalls. Designed with sustainability in mind, SM Malls use innovative water management systems that not only promote saving water from wastage but also significantly reduce consumption. This helps lessen the use of fresh water resources from national water systems and leave more water for its surrounding communities to use.

SM ensures sustainable water use through advanced recycling and rainwater harvesting systems. In 2025, sewage treatment plants in its 89 malls recycle an estimated 6.6 million cubic meters of property wastewater for non-potable use. The rainwater treatment facility in SM Baguio innovatively harvests and treats rainwater collected during the wet season and transforms it into water for kitchen and tenant use. 

As a key customer touchpoint in water management, faucets also regulate the outflow of water for every use.  SM’s investments in "push delay" faucets create sustainable operations to strengthen water conservation. These faucets save water by preventing it from being left running by restricting water flow through a certain window of time.

Technology then paved the way for enhanced conservation, and SM started using no-touch, sensor type faucets in 2015, far before the sanitary restrictions brought about by the COVID-19 pandemic. 

Sensor type faucets help save water by automatically shutting outflow of water once the sensor does not detect a user. Additionally, these types of faucets typically require less water pressure, which also reduces water waste. Significant investments in systems such as sensor faucets also reduce wear and tear on fixtures and equipment, resulting in long-term savings and improved water conservation.

 With its implementation, SM saw a 59% reduction in water waste, translating to saving the equivalent of a 1.5-liter bottle of water per user using the faucet over just 7 seconds.

By equipping its most-loved malls with water-efficient fixtures enhanced with technology, SM is protecting resources critical not just to its operations but to its surrounding communities. Under the guidance of the Water for Tomorrow pillar of the SM Green Movement, SM champions sustainable water use, reducing environmental impact and securing access to water for generations to come.

Since its launch the SM Green Movement has demonstrated the power of strategic, collective action in effectively tackling environmental challenges to achieve one goal--the protection and preservation of the planet's resources for present and future generations. 

Even before the industry mandate on sustainability, SM Prime Holdings Inc. (SM Prime) recognized that meaningful sustainability can only be achieved through long-term, consistent, community driven efforts. This understanding guided the development of programs designed to evolve alongside stakeholder priorities and shareholder responsibilities. 

Leveraging on the scale and reach of its nationwide network of supermalls, SM Prime embedded sustainability efforts within malls operations, actively engaging customers, tenants and communities in its environmental journey. 

This "micro to macro" approach strengthened the SM Green Movement unifying efforts under a practical and scalable framework built on three core pillars of environmental action: waste management, water stewardship, energy efficiency and renewable energy.  

“What began as simple actions—reducing waste, conserving water, and adopting cleaner energy—has grown into an interconnected ecosystem involving partners, tenants, employees, and millions of mallgoers nationwide,” said Joaquin San Agustin, SM Supermalls Executive Vice President for Marketing. “By turning everyday habits into systemic results, the SM Green Movement extends beyond corporate spaces and into the heart of Filipino communities.”

Focusing on three core pillars: Water, Waste, and Energy

At the core of the waste pillar, SM works closely with recycling partners and SM GUUN — the circularity platform of the SM Green Movement — to divert paper, plastics, multi-layer packaging, compostables, and other materials away from landfills and back into productive use.

SM Prime’s water stewardship is anchored in long-term water management systems and conservation practices that promote a water-resilient future.  SM Supermalls pioneered water recycling in retail spaces, with early sewage treatment plants and low-flow fixtures that reduced consumption across properties.  

Energy management is another cornerstone of the SM Green Movement where efficiency and renewable generation converge to reduce environmental impact while enhancing comfort and reliability in SM properties. The 100MWp celebrations in SM City North Edsa are a milestone of the program’s expansion of solar generation capacity across malls nationwide — a visible demonstration of how clean energy supports both climate action and everyday mall experiences. 

Shared Responsibility, Lasting Impact 

What unites these three pillars is the belief that sustainability thrives when communities are invited into the conversation and, when scaled collectively, can reshape systems. For SM Prime, sustainability is not just a corporate mandate but a shared journey that requires awareness, participation, and collective action.  

With measurable progress, growing partnerships, and visible results across waste, water, and energy portfolios, the SM Green Movement is laying the foundation for lasting change, one where sustainability becomes part of everyday life for Filipinos and communities across the archipelago. 

“The SM Green Movement reflects our vision to scale simple, everyday acts into systemic impact,” said San Agustin. “By advancing energy, water, and waste initiatives together in our malls, we safeguard communities and build a more sustainable future.” 

With the 30th Conference of the Parties (COP30) taking place in Belem, Brazil, this November, the momentum to focus on lasting solutions for the planet’s climate crises comes at its most critical time. 

For SM Prime Holdings, Inc., this means that the journey to Net Zero by 2040 becomes more than a unifying force across its portfolio; it is the goal for strengthened implementation, sound partnerships, and collective resilience. 

The 2MWp rooftop solar photovoltaic system installed at MOA Square—developed with TotalEnergies—generates approximately 3,000 MWh of clean energy annually, reducing an estimated 1,430 tons of CO₂ emissions each year. 

Empowered partnerships 

Security, affordability, and sustainability – these are known as the “energy trilemma” – challenges presently faced by businesses. It’s especially relevant for the future of property development and urban resilience. 

SM Prime continues forging strategic partnerships with leaders in renewable energy to expand its clean energy capacity, drive innovation, and accelerate the transition to a low-carbon future.

For SM Prime, a comprehensive and diversified energy mix is an approach that benefits renewable energy producers and transforms the industry, and is the broader strategy to reduce reliance on fossil fuels.

SM Supermalls has already achieved more than 50% of renewable energy use across its malls by leveraging partnerships with key renewable energy players and direct procurement

This energy infrastructure reflects SM Prime’s significant investment in emerging technologies. In 2022, SM Prime’s partnership with Aboitiz Renewables, Inc. (ARI) activated its strategic plans, and in 2024, it further broadened its renewable-energy footprint by partnering with TotalEnergies. The addition of Citicore Renewable Energy Corporation in 2025, along with the steady increase of leading solar rooftop suppliers for SM Supermalls, helps meet the demands for renewables through on-site generation. 

SM Sta. Rosa. SM Supermalls continues to scale its use of renewable energy across its nationwide portfolio. By increasing its solar rooftop capacity, SM helps make its malls cleaner, more energy-efficient, and more resilient for surrounding communities.

This commitment to sustainable energy drives positive change and contributes to SM Prime’s broader mitigation and adaptation strategies, supporting the country’s national framework in achieving its emission reduction targets. 

Energy for the people

Resilient communities and enduring partnerships for climate-smart urban centers are part of these system shifts toward energy independence. It confirms that renewables are a strategic asset, especially as they become affordable and community-serving, empowering businesses nationwide. 

It also supports a sustainable lifestyle. For the SM Green Movement, this balance is achieved by re-energizing neighborhoods to contribute to the climate crisis and offering more options to become energy and fuel-efficient, while improving quality of life. 

The festive Christmas Holidays at SM Supermalls.  Powered increasingly by renewable sources, SM malls continue to serve as vibrant community hubs—bright, welcoming spaces that reflect SM Prime’s commitment to sustainable and resilient development.

“We started the journey with our energy efficiency programs in the 90s,” said SM Supermalls President Steven Tan. “This lets us enjoy our mall spaces now because we maximize our energy use, lower operational costs, while hopefully, reducing our emissions,” 

“Of course, we still have a long way to go. But we are trying to make renewable energy accessible at scale to our malls – not just to create decarbonization value for the communities we touch and work with – but to provide flexible, adaptive, and sustainable mall experiences. Most importantly, a safer future for all,” said Tan

According to the Department of Environment and Natural Resources (DENR), the Philippines generates over 60,000 metric tons of waste daily, a figure expected to rise with urban growth and economic activity. 

Together as one community, 2024 marks the launch of SM Waste-Free Future in SM Mall of Asia.

Recognizing the urgency, SM Prime Holdings, Inc. (SM Prime) launched the SM Waste-Free Future program in 2024 as one of its flagship environmental sustainability programs to reduce overall waste generation through effective waste segregation and divert waste away from landfills through recycling, composting, and other sustainable disposal methods.

In its first year, it implemented a new waste management segregation system across its properties, including all malls, residences, offices, hotels and convention centers, and estates nationwide. 

Beyond SM Prime, the campaign on waste has extended its reach to other SM groups and portfolio companies, making SM Waste-Free Future a group-wide endeavor.

A bigger picture of waste 

The Recyclable, Disposable, Composable (RDC) bins are central to the program’s segregation practice.  RDC makes it simple and consistent, providing key visual cues to bin it right.

Together for an SM Waste-Free Future, the Recyclable, Disposable, Composable (RDC) bins at SM Store branches support the broader goals of environmental sustainability through clear and effective waste segregation practices.

Despite its infancy stage, the rapid and wide-scale integration underscores SM Prime’s ability to operationalize sustainability across diverse asset classes and ecosystems, reinforcing the company’s commitment to innovative waste diversion strategies. 

SM Prime also celebrates the efforts of SM Retail in advancing a waste-free future. All SM Store branches have successfully deployed their RDC bins, while SM Markets continues to implement its reusable bag system. In support of waste management efforts, Goldilocks Bakeshop has also implemented the RDC system across its stores in all SM Supermalls. 

Creating opportunities to expand

Partnerships with other organizations pave the way for the work ahead. SM Waste-Free Future strengthens tenant engagement for SM Supermalls and SM Offices, supporting businesses with similar goals on waste and helping them align with their global sustainability policies.

Similarly, it reinforces SM Hotels’ advanced Back of House operations, food waste policies, and textile recycling program. The SM Hotels’ Tela Tales program transforms discarded linen into sustainable products and provides livelihood for the women of partner communities, upcycling more than 2,000 yards of condemned linens. 

Recognizing that technology greatly contributes to the solutions, SM Waste-Free Future has also strengthened collaborations with other organizations. SM Development Corporation (SMDC) works with Globe’s Hapag Movement to rescue surplus food from residents and help make a difference in the lives of Filipino families experiencing involuntary hunger and divert household food waste away from landfills. 

In the mall’s Cyberzone areas, SM Supermalls’ Electronic Waste Collection Program and their partnership with PLDT and Smart make it accessible to dispose of old mobile devices and other electronic gadgets responsibly. 

Shoppers can conveniently drop off old gadgets for proper recycling through SM Supermalls’ E-Waste Collection in partnership with PLDT and Smart at Cyberzone.

Join the movement

SM Waste Free Future invites more communities and stakeholders to participate through proper waste segregation, joining local clean-ups and collection drives, or supporting eco-friendly products and practices. 

Positive reinforcement and catchy social media campaigns from SM Cares target the youth by promoting better waste segregation habits and encouraging them to become more involved with the state of the planet they will inherit. 

Recently, in celebration of World Oceans Day, SM Cares mobilized communities across 18 SM Supermalls nationwide, bringing together over 5,000 volunteers and collecting more than 30,000 kilograms of waste from shorelines. 

Mobilizing for World Oceans Day, SM Cares volunteers unite and act to remove waste that ends up in the oceans.

“Waste-Free Future is more than just a program—it’s a mindset shift. And we’re only getting started,” said Engr. Liza Silerio, Vice President for Corporate Compliance and Program Director of SM Cares for Environment. “We call on our tenants, partners, and customers to continue the journey with us—because a truly sustainable future is one we build together.”

With the growing momentum for a waste-free future, SM Prime believes that a cleaner, more circular Philippines is well within reach.

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

SM Prime Holdings (SM Prime) played a pivotal role in advancing sustainable urban development by hosting the 7th annual Association of Pacific Rim Universities – Sustainable Cities and Landscapes (APRU-SCL) 2024 Conference and 3rd International Conference on Human Settlements Planning and Development (ICHSPD) at SMX Convention Center Aura. This prestigious event, organized by the University of the Philippines Los Baños (UPLB), brought together over 300 experts to discuss innovative solutions for building greener and more resilient cities. Focused on the theme "Advancing Sustainable Cities and Communities Through Science, Technology, and Innovation," the conference highlighted the importance of collaboration in addressing urban challenges.

(L-R): Moderator Efraim Roxas, Environmental, Land Use and Urban Planning and Development Bureau (ELUPDB) Director Mylene Rivera, SM Supermalls’ President Steven Tan, and Tohoku University Professor Jeongsoo Yu

SM’s commitment to sustainability was evident through the participation of its top executives. SM Supermalls’ President Steven Tan showcased SM Supermalls’ eco-friendly practices and community-focused programs. 

“Our malls are more than just shopping centers; they are dynamic public spaces, woven into the daily lives of millions of Filipinos. Our comprehensive environmental sustainability programs are deeply inspired by the vision of our Chairman of the Executive Committee, Mr. Hans Sy, a tireless advocate for environmental sustainability and disaster resilience,” Mr. Tan said.

SM Supermalls’ President Steven Tan highlights the malls’ sustainability initiatives.

He added, “At SM Supermalls, we leverage science and technology to develop innovative solutions that are seamlessly integrated into the design and operation of our malls. We remain committed to leveraging innovation and collaboration to build a greener, more resilient, and more sustainable future for the Philippines.”

SM Prime and SM Development Corporation (SMDC) Lead Executive for Design, Innovation, and Strategy Jessica Bianca Sy, shared the company’s vision of creating sustainable integrated properties that foster lively communities. 

(L-R): University of the Philippines Los Baños’ (UPLB) Dean Jennifer Marie Amparo, UPLB Chancellor Jose Camacho Jr., Association of Pacific Rim Universities (APRU) Chief Executive Thomas Schneider, Makati Mayor Abigail Binay, SM Prime and SM Development Corporation (SMDC) Lead Executive for Design, Innovation, and Strategy Jessica Bianca Sy, International Conference on Human Settlements Planning and Development (ICHSPD) Conference Director Edgar Reyes Jr., and APRU-Sustainable Cities and Landscapes Director Yekang Ko

National Resilience Council (NRC) Executive Director Silvestre Barrameda Jr. highlighted SM’s role in disaster preparedness. He presented “From Risk to Resilience: The Work of the National Resilience Council in Risk Governance” where he introduced the Resilience Local Government Unit Program (RLGUP), NRC’s approaches and tools and how risk governance is supported by the sciences.

National Resilience Council (NRC) Executive Director Silvestre Barrameda Jr. showcases SM Supermalls’ resilient infrastructure.

SM Prime’s commitment to sustainability was further emphasized during a breakout session on creating connections and partnerships, hosted by Jonas Marie Dumdum, Senior Consultant and Sustainability Lead of Nomura Research Institute (NRI) Manila Branch. Katherine Custodio, Executive Director of World Wide Fund For Nature (WWF)-Philippines, underscored the significance of collaboration: “Any program that aims to build climate resilience requires strong partnerships and working together across all sectors.”

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people. SM Prime is pursuing the next horizon on integrated property development and onward to building sustainable cities of the future. 

SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, has been recognized by three international award-giving bodies for excellence in transparent Environmental, social, and governance (ESG) reporting for its 2021 Annual Integrated Report entitled "Together, We Rise".

SM published its sustainability reports since 2013 even before the Securities and Exchange Commission (SEC) mandated sustainability reporting in the Philippines. SM Prime further promotes transparency and accountability by informing investors and stakeholders of its ESG performance and impacts, decision-making processes, and competitive positioning value in the sector.

“We are honored to receive these awards as a recognition of our commitment to provide transparent reporting in our sustainable practices. We value all our stakeholders, and we strive to enrich the quality of life of the Filipino people,” SM Prime President Mr. Jeffrey Lim said.

At the summit of international recognitions, SM Prime bagged accolades from the biggest and most coveted awards competition in the business world called Stevie® Awards. The Asia-Pacific Stevie Awards recognizes business innovation across the entire Asia-Pacific region, whereas IBAs is one of the first and most highly anticipated awards programs of the Stevie Awards that features a wide variety of categories relevant to every facet of the workplace that is open to all kinds and sizes of organizations globally. SM Prime was awarded the Bronze Stevie® Winner at the 2023 Asia-Pacific Stevie Awards program and Silver Stevie® Winner in the 2022 International Business Awards (IBAs).

Also, in the regional scene, the company won a Silver Rank in the Asia Sustainability Reporting Rating (ASRRAT) 2022, a sustainability report ranking by the National Center for Sustainability Reporting (NCSR). ASRRAT’s rating system employs criteria based on GRI Standards compliance, GHG disclosures transparency, and alignment with and support of the UN SDGs, among other factors. 

The international recognitions are a testament to SM Prime’s active role in championing sustainability across its operations as it continues to be a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people.