SM strengthens its commitment to reduce plastic waste

PASAY CITY, Philippines, July 23, 2025 /PRNewswire/ -- The SM Group is firming up its commitment to reduce plastic waste as a shared responsibility across its business units.  Led by its parent company, SM Investments Corporation, the conglomerate recently created a working group committee that convenes and conducts regular dialogues, enjoining SM's different businesses to incorporate plastic reduction into their respective sustainability roadmaps.

This is in support of the Extended Producer Responsibility (EPR) Act of 2022, or EPR Law which requires companies to take responsibility for the recovery of their plastic packaging products and to pursue waste management programs.

"While plastic plays a crucial role in modern life, its convenience often contributes to a throwaway culture, leading to one of our planet's most pressing environmental challenges. We understand the importance of waste recovery and recycling not only as part of our sustainable business vision but also as a social and legal obligation. SM's approach is both practical and actionable," Timothy Daniels, Head of Investor Relations and Sustainability, SM Investments Corporation said.

Take for example SM Markets, the SM Group's umbrella brand for SM Supermarket, SM Hypermarket, and Savemore, which has ushered in greener retail practices in encouraging the use of eco-bags over single-use plastics since 2007. In 2024 alone, SM Markets sold 19 million Green Bags, equivalent to around 42 million plastic bags avoided.

One of SM Retail's affiliates, Watsons Philippines has transitioned 81% of its stores to using paper bags instead of single-use plastics. In addition, over 2,140 retail stock-keeping units (SKUs) fall under Watsons' Sustainable Choices category, which includes products classified as Clean Beauty, Better Ingredients, Better Packaging, and Refills. These products reflect its commitment to offering more environmentally responsible options to consumers.

Goldilocks Bakeshop, Inc., one of SM's portfolio investments, reduced the size of ribbons used in each of their packaging leading to a reduction of 7,000 kilograms of plastics annually.

2GO Group, Inc., the logistics business of the SM Group, has also taken deliberate steps to reduce plastic use by transitioning to environmentally friendly packaging. Their shipping operations now utilize 100% recyclable, reusable and biodegradable packaging materials.

Considering its footprint across the Philippines, SM's property arm, SM Prime Holdings, Inc. (SM Prime) commits to foster the much-needed infrastructure that will help support and maintain plastic waste management strategies across its businesses. SM Prime has equipped its properties with Materials Recovery Facilities (MRFs) and standardized waste segregation systems across all malls and developments. There are 15 designated drop-off points for plastic wastes, which diverted 63,874 kgs of plastics from landfills.

Trash-to-Cash (TTC) is a long-running monthly recycling market held in all SM Supermalls, where customers can exchange recyclables – such as paper, plastic and metal – for cash. TTC has facilitated the exchange of over 1 million kilograms of recyclables each month, totaling approximately 12 million kilograms. This is equivalent to saving 204,000 trees if all the recyclables were paper or reducing 18,000 tons of carbon emissions if all were plastic.

Consumer-facing initiatives such as the RDC (Recyclable, Disposable, Compostable) segregation bins launched by SM Supermalls in 2023 and information drives help employees and customers reinforce the group's wider efforts.

SM Hotels and Conventions Corporation (SMHCC) has also phased out single-use plastics in its hotels as early as 2018, replacing amenities with refillable or eco-friendly options.

"Plastic waste reduction at SM is about steady, coordinated progress made possible by a shared culture of everyday solutions, and a proactive approach across all our businesses," Mr. Daniels added.

The United Nations Environment Programme identified plastic pollution as a global problem with 19-23 million tons of plastic waste going into the ecosystem, polluting lakes, rivers and seas.

About SM Investments Corporation

SM Investments Corporation is one of the leading Philippine companies that is invested in market-leading businesses in retail, banking, and property. It also invests in ventures that capture high growth opportunities in the emerging Philippine economy.

SM's retail operations are the country's largest and most diversified, consisting of grocery stores, department stores and specialty retail stores. SM's property arm, SM Prime Holdings, Inc., is the largest integrated property developer in the Philippines with interests in malls, residences, offices, hotels, and convention centers as well as tourism-related property developments. SM's interests in banking are in BDO Unibank, Inc., the country's largest bank, and China Banking Corporation, the fourth largest private domestic bank.

For more information, please visit www.sminvestments.com

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SOURCE SM Investments Corporation