SM Investments Corp., the parent company of the SM Group, is accelerating investments in cleaner sources after renewable energy (RE) accounted for 31 percent of the group’s total electricity consumption in 2025, up from 27 percent in 2024. 

The company reported Friday that the group sourced about 730 million kilowatt-hours of renewable electricity last year, helping avoid 370,644 metric tons of carbon emissions.

“For us, investing in RE is both a sustainability and business decision,” SM Investments President and CEO Frederic C. DyBuncio said.

SM said the shift helps lower long-term energy costs and improve operational efficiency.

The company continues to expand its RE portfolio through Philippine Geothermal Production Company (PGPC), its wholly owned geothermal unit.

PGPC operates the Mak-Ban and Tiwi steam fields in Batangas, Laguna, and Albay, which can generate up to 400 megawatts (MW) of geothermal energy. It is also developing six more geothermal sites across Luzon that could add another 400 MW of capacity.

SM Prime has installed over 200,000 solar panels across 69 properties, while Alfamart recently added solar panels at its Quezon distribution center to improve supply chain efficiency.

The Group’s banking units also expanded sustainable financing in 2025. 

BDO Unibank funded P1.21 trillion in sustainable projects, including 71 RE developments worth P177 billion.

China Banking Corp. provided P72 billion for cleaner energy, energy access, and efficiency projects.

“We believe renewable energy, particularly geothermal, can help strengthen long-term energy security while supporting economic growth,” DyBuncio said.