Sustainability is at the core of SM Prime: Hans Sy (2)

This year’s Management Association of the Philippines’ (MAP) Management Person of the Year, chairperson of the Executive Committee of SM Prime, and chairman of the board of China Banking Corporation, Hans Sy, has another imperative core value he said he wants to inculcate among his employees: putting sustainability foremost in their minds in their daily operations.

“At SM Prime, our sustainability framework is simple yet grounded in decades of experience. We refer to it as ESG+R, encompassing Environmental Stewardship, Social Inclusion, Good Governance, and Resilience,” he said in his speech after he was conferred the prestigious award by the MAP at the Shangri-La The Fort, in Taguig City on Monday.

‘An Inconvenient Truth’

Sy said the pursuit of sustainability in all of SM Prime’s operations began in 2006 after watching the documentary “An Inconvenient Truth” by former US Vice President Al Gore. The film changed the way he viewed the environment, realizing that businesses and governments could no longer just talk and do nothing about climate change.

“We had to do more. And so, we did. We began recycling water as early as the 1990s at SM Megamall. It was the costlier choice back then. But as climate risks grew, we kept expanding our efforts. Today, water stewardship is practiced across our malls. We manage stormwater through large rainwater tanks and use smart fixtures and waterless urinals to conserve water,” he said.

Sy also said that management decided to elevate all of SM Prime’s properties to reduce flooding and strengthen roofing to withstand stronger typhoons, allowing the company to transform its properties’ rooftops into solar fields.

On 8 November this year, Sy informed the audience that ther SM Prime has reached 100-megawatt peak capacity, and that they intend to keep this going.

Social inclusion

In terms of social inclusion in SM Prime’s operation, which began in 2004, he said it all started when a 15-year-old boy on the autism spectrum got lost in one of their malls.

“The noise, crowds, and unfamiliar setting overwhelmed him, causing anxiety and an outburst. One security personnel had mistaken this for unruly behavior and waved him off. Thankfully, other guards helped his family find him. That event transformed the way we served our customers. It taught us that inclusion begins with awareness, but only matters when it leads to action,” he narrated.

Since then, Sy said they have worked to make their people and spaces more compassionate by undergoing continuous sensitivity training to better assist persons with autism, Down syndrome, and other disabilities.

Further, he said SM Malls have golf carts, resting areas, accessible paths, and family-friendly spaces so everyone — regardless of age and ability — can move around with ease.

“Inclusion also extends to how we run our companies. At SM, family members and professional managers work together with a shared commitment to good governance. It guides how we make decisions and how we choose our leaders,” he added.

Non-relatives

Sy said SM Prime top executives are non-relatives of the Sy family, chosen for their expertise and integrity, whether they grew within the organization or joined from outside. The company also has independent directors who are leaders in their fields and are well respected in both business and public service.

He said their common denominator is a deep sense of compassion and accountability, grounded in the values that have shaped SM from the beginning.

Resilience

Sy said last in the equation is resilience, which began not as a concept but as an experience.

In 1988, fire broke out and raged for four days, gutting SM Makati. He considered that incident one of the hardest moments in his life and unforgettable because it happened during his mother’s birthday.

“My father asked me to oversee the rebuilding of the store. When I went to the site during clearing operations, the heat was intense. The air was thick with smoke and ashes, and nothing could be salvaged. I told myself that no one should ever have to go through that. From then on, safety became a personal mission,” he disclosed.

He said that in every SM property, they installed sprinkler systems even before this was a local government requirement among businesses. SM management also improved the design of buildings and planning by using both data and experience, learning from every incident, no matter how small.

“That fire (in SM Makati), which was scary and traumatic, taught me the importance of prevention and preparedness. The events of the past few weeks remind us why values and ESG+R matter. They also show how losing integrity — at a time when we are building climate resilience — can have serious consequences,” he said.

Nation-building is hard work

“Like everyone here, I am affected by what is happening. It is painful to see our country suffer because of the faults of a few. But when the road gets rough, you do not stop and turn back. You keep your hands on the wheel and stay the course,” according to the SM Prime executive.

He maintained that players in the private sector have a responsibility to create value, opportunity, and stability, a duty that should not disappear when times are difficult, when it matters most.

“In the 1970s, when capital was leaving the country, my father chose a different path. He kept his money in the Philippines and invested in the expansion of SM Makati. It was a bold choice, but it was the right one. We are making the same choice today. Despite the weak sentiment and perceived risks, the SM Group continues to invest and believe in the Philippines. Nation-building is hard work. But if we do what is right, even when it is difficult or unpopular, we can build a future where Filipinos live with dignity and hope,” said Sy.

On Monday, 24 November 2025, SM Prime president Jeffrey Lim reported an 8 percent growth in the company’s third-quarter net income, growing to P12.8 billion, and bringing its nine-month bottom line up 10 percent to P37.2 billion compared to P33.9 billion in the same period of 2024.