In a strong show of corporate sustainability leadership, the SM Group is stepping up its waste reduction efforts across its wide-ranging business portfolio, backing government efforts under the Extended Producer Responsibility (EPR) Law and aligning with global environmental standards.
SM Investments Corporation (SMIC), the conglomerate’s parent company, has formalized a dedicated working group that regularly brings together its subsidiaries to align plastic reduction strategies with each unit’s sustainability roadmap.
The move underscores the group’s commitment to the EPR Act of 2022, which mandates companies to recover and manage the plastic packaging they produce or use. The legislation aims to reduce environmental impact by holding producers accountable for post-consumer waste.
Timothy Daniels, SMIC Head of Investor Relations and Sustainability, said the initiative represents both a legal responsibility and a pragmatic business strategy.
“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," Daniels noted.
"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."
Among the group’s consumer-facing businesses, SM Markets – comprising SM Supermarket, SM Hypermarket, and Savemore – has long been promoting eco-friendly habits, encouraging shoppers to use reusable bags since 2007. Last year alone, the brand sold 19 million Green Bags, effectively preventing the use of an estimated 42 million plastic bags.
Watsons Philippines, a unit under SM Retail, has also made strides by transitioning 81 percent of its stores to paper bags, moving away from single-use plastics. Its shelves now carry more than 2,140 products under its Sustainable Choices lineup, which promotes eco-responsible options such as Clean Beauty, Better Ingredients, Better Packaging, and Refills.
Portfolio company Goldilocks Bakeshop, Inc. has adopted a simpler yet impactful measure by reducing the size of ribbons used in its packaging, resulting in a cut of approximately 7,000 kilograms of plastic waste annually.
Meanwhile, logistics subsidiary 2GO Group, Inc. has opted for environmentally friendly materials across its shipping operations, now relying exclusively on packaging that is recyclable, reusable, or biodegradable.
SM Prime Holdings, the property development arm of the group, is focused on creating long-term infrastructure to support waste management systems in its malls and developments. It has rolled out standardized waste segregation practices and built Materials Recovery Facilities across its properties. Through 15 plastic waste drop-off points, SM Prime was able to divert over 63,000 kilograms of plastic from landfills.
The group’s flagship recycling initiative, Trash-to-Cash (TTC), continues to be a staple in SM Supermalls. Held monthly, the program allows consumers to exchange recyclables such as paper, plastic, and metal for cash. TTC has so far facilitated the recovery of around 12 million kilograms of materials – an amount that could translate to the saving of 204,000 trees if composed entirely of paper or the avoidance of 18,000 tons of carbon emissions if plastic-based.
Complementing these efforts are on-site education campaigns and waste segregation programs such as the RDC (Recyclable, Disposable, Compostable) bins launched in 2023, which aim to build consumer awareness and promote behavioral change.
SM Hotels and Conventions Corporation (SMHCC) has also been ahead of the curve, having phased out single-use plastic amenities as early as 2018. It has since implemented refillable and eco-friendly alternatives throughout its properties.
“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,” Daniels added.
The United Nations Environment Programme has identified plastic pollution as one of the world’s most pressing environmental issues, with 19 to 23 million tons of waste entering aquatic ecosystems each year. SM’s group-wide approach seeks to contribute to solving this crisis through business-led, scalable interventions.