It is high noon on a scorching tropical May afternoon. Outside, the asphalt in the parking lot is practically radiating waves of heat. But step through the glass doors of the mall, and you are instantly greeted by a refreshing, artificial cold blast.
To keep millions of square feet of retail space safely insulated from the blistering heat, giant commercial air conditioning units are working overtime, spinning at their absolute limit. This exact window from 12:00 PM to 4:00 PM. Marked the most expensive, strain-heavy hours of the day for retail developers. This is as power grids groaned under the massive surge in electricity demand.
A Sustainable Action to Better Service and Innovation
This phenomena pushes SM Group to continue to accelerate its transition to cleaner energy across its diverse business portfolio. Its parent company, SM Investments Corporation (SM Investments), announced that the Group increased its renewable energy sourcing to 31% of its total electricity consumption in 2025, rising from 27% the previous year.
During 2025, the conglomerate utilized approximately 730 million kilowatt-hours (kWh) of electricity derived from renewable sources. This strategic shift successfully averted 370,644.07 metric tons of carbon emissions. A reduction equivalent to removing roughly 296,954 electric-powered passenger vehicles from the road for an entire year.
For us, investing in renewable energy is both a sustainability and business decision,” said Frederic C. DyBuncio, SM Investments President and Chief Executive Officer.
It helps us manage long-term energy costs, improve operational efficiency and build more resilient businesses to help us better serve our customers, tenants, communities and other stakeholders.”
Harnessing Earth’s Clean Energy
At the forefront of this green strategy is the Philippine Geothermal Production Company (PGPC). A wholly-owned subsidiary of SM Investments. PGPC currently operates the Mak-Ban and Tiwi steam fields across the provinces of Batangas, Laguna, and Albay. These facilities supply geothermal steam capable of generating up to 400 megawatts of clean, around-the-clock renewable energy to power homes, corporate offices, and industrial complexes.
To expand its impact, PGPC is actively developing new geothermal sites across six distinct locations in Luzon. These emerging projects hold the potential to inject an additional 400 megawatts of renewable geothermal power into the national grid. To put their current capacity into perspective, the Mak-Ban and Tiwi steam fields alone produce enough geothermal steam to fulfill the annual electricity needs of up to one million households.
Reliable and affordable energy is important not only for businesses but also for communities and the broader economy,” Mr. DyBuncio added.
We believe renewable energy, particularly geothermal, can help strengthen long-term energy security while supporting economic growth.”
Innovating Malls and Supply Chains
In line with its geothermal advancements, the Group is expanding its renewable footprint across its integrated property developments. For instance, SM Prime Holdings, Inc. has outfitted 69 of its properties with more than 200,000 solar panels. These acts as a core component of its overarching energy efficiency programs.
Furthermore, this transition toward renewable alternatives is deeply embedded within the Group’s broader commercial ecosystem. Alfamart recently equipped its Saraiya Distribution Center in Quezon Province. With solar panels boasting a peak capacity of 120.28 kilowatt-peak (kWp), a move that has significantly optimized the efficiency of its supply chain network.
Financing a Sustainable Tomorrow
Beyond physical infrastructure, the conglomerate’s banking subsidiaries are heavily backing sustainable financing initiatives to drive macro-level change. By the conclusion of 2025, BDO Unibank, Inc. had directed a total of PHP 1.21 trillion toward sustainable projects. In which included PHP 177 billion dedicated to funding 71 renewable energy developments.
Simultaneously, China Banking Corp. extended PHP 72 billion in financing during 2025 specifically targeting energy access, renewables, and energy efficiency ventures.
Ultimately, SM Investments emphasizes that the Group remains dedicated to embedding sustainability and operational efficiency into the fabric of its retail, property, banking, and portfolio investments.
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