Incorporating social inclusion and disaster risk reduction in property developments.
SM Prime Holdings, Inc. was built on a foundation of values. In 2013, Mr Henry Sy, the patriarch and founder of the SM Group, consolidated the property assets under SM Prime. Inspired by his belief in business as a socially inclusive force, SM Prime advocates property developments that uphold communal values and uplift lives.
We adhere to the company’s four-pillar sustainability framework: Economy, People, Environment and Community. Disaster resilience, social inclusion and the prudent use of natural resources are integral to SM Prime’s business strategy. Having resilience as an anchor in property design not only maintains our high standards, but also strengthens our value to the nation, enabling SM Prime to work with greater urgency, grow more inclusively and engage communities with more empathy.
By actively integrating sustainability parameters into our business operations, our investments prioritise climate change mitigation and adaptation. Our supply chain is augmented by a rich supplier and contractor database that meets global environmental, health, and safety standards. Moreover, we are exploring multi-sectoral collaborations with the government, civil society, and environmental groups like World Wide Fund for Nature (WWF) Philippines. These partnerships support the shift to a sustainable economy with the right policies, financial regulations, and operating climate, that incentivise the transition to a low-carbon economy for the private sector.
Prioritising protection against calamities
When Hans Sy, son of the late Henry Sy, Sr., was the former head of SM’s Engineering Design and Development, he experienced several natural and manmade calamities that resulted in extensive property damage and devastation to SM’s tenants and community. Almost overnight, disaster preparedness and infrastructure resilience became priorities embedded in the company’s DNA.
The SM Mall of Asia Complex is uniquely designed with a seawall to protect it from potential storm surges or sea-level rise. Built on reclaimed land, the mall uses a specialised excavation method to provide more robust protection against liquefaction and seismic events. The mall is also elevated above the required building level with a wave return and drainage channel to prevent flooding due to storm surges
SM Marikina, another example of resilient building, securely rests on 246 stilts and is built 20 metres beyond the government’s safety zone compliance. This architectural innovation enables the mall to withstand abrupt floodwaters. Thus, the mall has become a refuge for Marikina residents during strong typhoons while preventing the flooding of neighbouring communities, which was a perennial problem in the area before the mall’s construction.
Also, some of our properties were the first to be LEED-certified in the Philippines. For example, the iconic SM Aura property at Bonifacio Global City is a mixed-use development incorporating retail, trade halls and a Grade A office tower. The property is anchored by a LEED Gold Certified mall which promotes resource efficiency, green mobility and green landscaping.
Built on stilts, SM Marikina is located in one of the oldest low-lying cities of Metro Manila, where the Marikina River Watershed level can rise to 23 meters. The mall has served as a first responder to families affected during calamities.
Mr Hans Sy’s understanding of crisis leadership was integral. He played a role in ARISE-Philippines, which is a local network of ARISE global, the Private Sector Alliance for Disaster Resilient Societies. Members of the network voluntarily commit to implement the Sendai Framework for Disaster Risk Reduction (SFDRR). SM Prime organised and launched the Philippine chapter of the network in 2015 and has since helped partner cities and local governments achieve greater disaster resilience through mobilising private funds for various public programmes.
Targeting Net Zero across the value chain
The company’s operations are directly and indirectly affected by climate-related challenges, which is why the themes of climate health, resilient design and disaster risk reduction have played pivotal roles in our construction and design activities over the past decade. Our sustainability framework is shaped by the board’s Corporate Governance Committee, who are tasked with all sustainability matters including social and environmental issues on value creation. This adjustment within the company’s board committees drove the creation of SM Prime’s Sustainability Council. The responsibility of achieving our sustainability roadmap commitments and targets lies with the office of the President.
With a vision of being a climate leader among Philippine property developers, SM Prime now leads the Race to Zero in Philippine Real Estate with its 2040 commitment. The launch of a Net Zero programme encompasses our integrative approach to achieve scalable results. Therefore, SM Prime has set a strong example for local builders to follow.
We strengthened our commitment to environmental protection by joining the Task Force on Climate-related Financial Disclosures (TCFD) and by collaborating with WWF-Philippines to address climate concerns in our operations. We stay true to our path and purpose by continuously expanding our renewable energy portfolio, and optimising energy efficiency and efficient water management. SM Prime has achieved its 2022 commitment of sourcing renewable energy for at least 50% of its electricity consumption. We will continue to support the government programme of increasing the renewable energy supply of the country.
A sustainable and resilient future requires an all-hands-on-deck approach. It’s true that we can all take the lead to achieve a sustainable tomorrow. Our own journey in SM Prime has taught us that teamwork is key to everything.
SM Prime Holdings, Inc. (SM Prime), is one of the leading integrated property developers in Southeast Asia. We are committed to being a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, and thereby enriching the quality of life of millions of people.
