SM Investments Corp. is leveraging investments in renewable energy and energy efficiency to lower operating costs and strengthen the resilience of its businesses, as the conglomerate stays on track to reduce greenhouse gas emissions by 40 percent by 2040.

Timothy Daniels, consultant and head of sustainability and investor relations at SM Investments, told a recent forum the company's climate target is supported by years of investments across the group's businesses.

“When we looked at our emissions, we identified where we could make meaningful reductions and developed a target supported by specific programs and investments. We wanted a goal that reflects what we can achieve based on actions we are taking today,” Daniels said.

To support the strategy, SM has installed more than 200,000 solar panels across its properties, helping generate electricity and reduce dependence on grid power.

Its mining subsidiary, Carmen Copper Corp., also operates a three-hectare floating solar facility at the Malubog Reservoir in Cebu. The facility's 8,540 solar panels generate 4.99 megawatts of renewable energy, enough to potentially supply about 10 percent of the mine's power requirements.

The conglomerate has likewise expanded its renewable energy portfolio through Philippine Geothermal Production Co., which operates geothermal steam fields in South Luzon.

SM said it is also supporting the country's energy transition through BDO Unibank, which has deployed about P1.2 trillion in sustainable financing, including support for 71 renewable energy projects with a combined installed capacity of 6,165 megawatts.

Daniels said the company's long-term emissions reduction efforts will also hinge on the pace of the country's transition to cleaner energy.

While businesses can improve efficiency, install solar facilities and procure renewable electricity, he said deeper emissions cuts will depend on the continued expansion of renewable energy supply, transmission infrastructure and the power grid.