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

The typhoon season  has once again underscored the Philippines' vulnerability to extreme weather conditions. As the nation grapples with the aftermath of tropical cyclones, it is clear that being part of the global conversation on achieving net zero emissions is important. The torrential rains and severe flooding affecting thousands of Filipinos every year are likely to become more severe in the future. These and more have highlighted the urgency for the Philippines to be an active participant in the fight against climate change to mitigate future impacts in addition to contributing to global solutions.

The concept of net zero refers to balancing the amount of greenhouse gases emitted with an equivalent amount removed from the atmosphere. For the Philippines, a country frequently in the crosshairs of severe weather, achieving net zero is a crucial step towards enhancing climate resilience. The recent typhoon has made it evident that the country cannot afford to be a bystander in the global efforts to combat climate change. Instead, it must be a proactive player, advocating for and implementing strategies that contribute to the global net zero target.

One of the key areas where the Philippines can make a significant impact is by leveraging its abundant natural resources to transition to renewable energy sources. By increasing investments in solar, wind, and hydroelectric power, the nation can reduce its reliance on fossil fuels, thereby lowering its carbon footprint.

This transition is crucial for achieving net zero and offers the added benefit of creating a more resilient energy infrastructure less susceptible to disruptions caused by extreme weather.

SM Prime Holdings, Inc. recognizes the equal importance and urgency of both climate change adaptation and mitigation that it continuously invests 10% of its Capital Expenditure (CAPEX) heavily in sustainability and disaster resilience design as part of its strategy.

A significant initiative supporting this commitment is SM Prime’s pledge to achieve net zero emissions by 2040. As the country’s leading integrated sustainable property developer, SM had committed to the Science-Based Targets Initiative (SBTi), a recognized global standard for corporate decarbonization targets. And this makes SM one of the few leading corporations in the Philippines to do so. To ensure that its long-term science-based targets for 2030 and 2040 aligns with the global commitment to achieve net zero by 2050, SM Prime collaborates with the World-Wide Fund for Nature Philippines (WWF) through their Corporates for a Better Planet Initiative (CBPI) program. CBPI is WWF-Philippines' flagship program which encourages private corporations to operate more sustainably amidst the climate crisis, with focus on decarbonization and resilience. 

Under this initiative, SM Prime is working to establish science-based targets that align with global commitments to achieve net-zero emissions by 2050. This CBPI collaboration allows SM Prime to assess its current sustainability practices, implement effective strategies for improvement, and ensure that its sustainability initiatives are impactful and aligned with global standards

 

Using solar panels or other renewable energy sources lowers the carbon footprint, leading to reduced greenhouse gas emissions and decreased reliance on non-renewable energy.

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

Through its partnership with WWF-Philippines, SM Prime advances its sustainability goals and contributes to a broader movement towards environmental stewardship in the Philippines as well. 

SM Prime commits to place climate action at the forefront of its sustainability agenda. It pledges to advance every person’s right to a better quality of life through heightened climate action, disaster risk reduction, biodiversity protection, and strategic corporate social responsibility programs.

SM Prime forges partnership with WWF Philippines towards driving Fundamental Climate Change Solutions

 

SM Prime Holdings, Inc., and leading conservation organization World Wild Fund for Nature (WWF) Philippines have entered a collaboration in adopting a more robust reporting framework to address the climate crisis.
Sustainability at SM Prime is at the core of its corporate identity. SM Prime is at the forefront of spearheading sustainable practices as well as setting records in pioneering programs to consciously protect the environment and strongly focus on resilience in its developments.

This major partnership of WWF with a Philippine company is expected to develop practical pathways to decarbonization. Under the partnership, SM Prime will adopt the Corporates for a Better Planet Initiative (CBPI), WWF-Philippines’ flagship program that provides an actionable framework for organizations to operate sustainably within the paradigm of the climate crisis.

“We are delighted to work with WWF Philippines on this sustainable journey. Focusing sustainability within the context of the Philippines ensures that our strategies and projects are highly material, efficient and more responsive in addressing local concerns surrounding resilience and adaptation. We need to be one with the worldwide community to achieve this and we need to work with global experts to get this right,” SM Prime President Jeffrey C. Lim said.

Climate change is one of the most pressing and defining global issues today. The Philippines is extremely vulnerable to climate change. It currently ranks third globally when it comes to climate change vulnerability. Due to its geographical location, it is more exposed to altering intensities of climate change manifested through erratic weather systems and natural calamities.

Organizations should rise up to the challenge and set the tone from the top in delivering transformative change as they transition to net zero commitment. Curbing global temperature rise will take commitment and partnership. Businesses should reduce its own greenhouse gas emissions, increase energy efficiency, and take other steps to reduce its carbon footprint. Firms typically fail to properly assess their implications. The CBPI program takes a holistic approach towards this pivotal issue, addressing these risks from a custom-built, science-based perspective.

By partnering with the WWF, SM Prime will be able to enhance and determine climate change solutions that will be reflected through responsible and transparent reporting.

The first phase of CBPI involves gauging where SM Prime stands in its sustainability initiatives and setting a science-based target in line with the Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels. SM Prime published its first Integrated Report in 2021 under the Integrated Reporting Framework which provides an overview of our value creation model — how we seek to create value for our stakeholders by contributing to national progress through investments and interventions critical to the country’s socio-economic growth.

As a champion of climate action in the Philippines, SM Prime’s partnership with WWF adds another enhancement to transparent reporting by ensuring greenhouse gas (GHG) computations are accurate and use appropriate methodologies. This partnership forms part of group-wide efforts under the SM Green Movement that aims to improve the quality of life of communities through sustainable solutions to promote a green planet, green living and a green culture.

SM Prime’s partnership with WWF dates back to 2007 under Hamilo Coast, its leisure resort development in Nasugbu, Batangas.

WWF closely monitors the health and viability of the Hamilo Coast area including three of its coves designated as Marine Protected Areas (MPAs)—the Pico de Loro, Etayo and Santelmo. And in recognition of its conservation efforts, Hamilo Coast was cited by WWF-Philippines as its longest standing Sustainability Partner in 2020.