SM Group steers its fleet toward a 40% carbon cut by 2040

CEBU CITY — The Philippine conglomerate behind the country’s largest retail, banking, and property empires reaffirmed its commitment to slash greenhouse gas emissions by 40% by the year 2040, backed by extensive investments in floating solar power, geothermal energy, and massive sustainable financing, the group is laying down a concrete blueprint for long-term climate resilience.

In the high-stakes push toward a greener economy, SM Investments Corporation is signaling that sustainability isn’t just good ethics—it’s smart business.

Speaking at the recent MUFG NOW Manila forum, Pathways to a Sustainable Future: Opportunities and Challenges, Timothy Daniels, Consultant and Head of Sustainability and Investor Relations at SM Investments, emphasized that the group’s targets are rooted in immediate, operational reality.

“When we looked at our emissions, we identified where we could make meaningful reductions and developed a target supported by specific programs and investments.  For us, sustainability helps reduce costs, improve reliability, and make our operations more resilient. It's simply part of how we run the business,” Daniels explained.

SM's multi-pronged strategy spans some of the most innovative renewable energy deployments in the region. To date, the company has outfitted its various properties with over 200,000 solar panels, harnessing local sunshine to alleviate strain on the national grid.

In Toledo City, Cebu, its mining unit, Carmen Copper Corporation, turned a water reservoir into a clean energy powerhouse. The company commissioned a three-hectare floating solar facility on the Malubog Reservoir. Featuring 8,540 solar panels, the 4.99-megawatt setup generates enough clean electricity to cover nearly 10% of the mine’s power needs.

Beyond solar, SM is deepening its footprint in baseload renewables through the Philippine Geothermal Production Company (PGPC), which manages extensive geothermal steam fields across South Luzon.

SM’s climate push extends beyond its internal footprint. Through its banking flagship, BDO Unibank, the group is financing the broader transition of the Philippine energy sector.

BDO has deployed roughly Php 1.2 trillion in sustainable financing, funding 71 renewable energy projects across the archipelago. Together, these project commitments account for a combined capacity of 6,165 megawatts—significantly boosting the nation's clean energy pipeline.

While internal efficiency and localized solar projects deliver immediate wins, Daniels pointed out that reaching the 40% target will ultimately depend on the pace of broader national infrastructure upgrades. Further deep cuts in emissions rely heavily on grid modernization, expanded transmission capacities, and the nationwide availability of utility-scale renewable power.

By combining capital allocation with practical engineering, SM Investments is framing its 2040 vision not as a distant pledge, but as an ongoing business evolution built to weather both economic and environmental shifts. (Photos: SM Investment Corp)