Embracing Net Zero: The Philippines' Urgent Call to Climate Action

As we approach typhoon season, recent extreme weather events have highlighted the Philippines' vulnerability to such conditions.

As the country grapples with the potential consequences, it is clear that participating in the global conversation about achieving net zero emissions is critical. This typhoon has highlighted the importance of the Philippines taking an active role in the fight against climate change, not only to mitigate future effects but also to contribute to global solutions.

The concept of net zero refers to balancing greenhouse gas emissions with equivalent removal from the atmosphere. For the Philippines, a country frequently hit by severe weather, reaching net zero is an important step toward improving climate resilience. The recent typhoon has demonstrated that the country cannot afford to remain a spectator in the global effort to combat climate change. Instead, it must be a proactive player, advocating for and implementing strategies that help achieve the global net zero target.

One of the most important areas where the Philippines can make a significant difference is by utilizing its abundant natural resources to transition to renewable energy. By increasing investments in solar, wind, and hydroelectric power, the country can reduce its reliance on fossil fuels and thus lower its carbon footprint. 

This transition is critical for achieving net zero and has the additional benefit of creating a more resilient energy infrastructure that is less vulnerable to disruptions caused by extreme weather.

SM Prime Holdings, Inc. recognizes that climate change adaptation and mitigation are equally important and urgent. As part of our strategy, we allocate 10% of our Capital Expenditure (CAPEX) to sustainability and disaster resilience design.

SM Prime's pledge to achieve net zero emissions by 2040 is a significant step towards fulfilling this commitment. As the country's leading integrated sustainable property developer, we have committed to the Science-Based Targets Initiative (SBTi), a globally recognized standard for corporate decarbonization goals. This makes us one of the few corporations in the Philippines to have done so. To ensure that our near and long-term science-based targets for 2030 and 2040 are consistent with the global commitment to achieve net zero by 2050, SM Prime works with the World Wide Fund for Nature Philippines (WWF) through the Corporates for a Better Planet Initiative (CBPI) program.

This ambitious goal is backed up by concrete actions such as the installation of onsite solar panels on multiple properties and strategic partnerships for renewable energy sourcing. These initiatives not only reduce the company's carbon footprint, but also serve as a model for other businesses to follow, demonstrating that sustainable practices can be integrated into core business operations.

This commitment, which pledges to advance everyone's right to a better quality of life through increased climate action, disaster risk reduction, biodiversity protection, and strategic corporate social responsibility programs, puts climate action at the forefront of SM Prime's sustainability agenda.

SM Supermalls have improved natural lighting and insulation, lowering energy consumption for lighting, heating, and cooling, resulting in more efficient and environmentally friendly operations.

Using solar panels or other renewable energy sources reduces the carbon footprint, resulting in lower greenhouse gas emissions and less reliance on nonrenewable energy.