Sustainability

Path to Sustainability

SM's Path to Sustainable Growth

Impact to Date

We serve as a catalyst for development in the communities where we are present. Our Path to Sustainable Growth is focused on energizing local economies. Wherever SM operates:

1

We Provide Inclusive Economic Opportunities

2

We Facilitate Development

3

We Promote Environmental Responsibility

4

We Create
Positive
Community Impact

5

We Drive Sustainable Growth

We align with the United Nations
Sustainable Development Goals

SM is committed to taking on an active role in achieving the UN SDGs. From our initial alignment, we have taken deliberate steps in identifying
specific targets to focus our strategic investments and initiatives on.

PHP24.9bn taxes paid in 2018

Target 1.1: By 2030, eradicate extreme poverty for all people everywhere, currently measured as people living on less than US$1.25 a day

16.6M beneficiaries of social
development programs to date

Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions

23,170farmers trained
through

187farmers training sessions
conducted to date in

2,925barangays in 772
municipalities and cities

Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round

20 birthing
facilities in

20 public health centers
renovated serving 96,000
women to date

Target 3.2: By 2030, end preventable deaths of newborns and children under 5 years of age, with all countries aiming to reduce neonatal mortality to at least as low as 12 per 1,000 live births and under-five mortality to at least as low as 25 per 1,000 births

81 public health centers renovated to date that received PhilHealth TB-DOTS* accreditation

Target 3.3: By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical disease and combat hepatitis, water-borne diseases and other communicable diseases

50,275 students
benefitting
from

135 public school
buildings built
to date with

478 classrooms

Target 4.1: By 2030, ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant effective learning outcomes

Don Bosco Technical-vocational education training school funded by BDO Foundation

9,015 technical-vocational and college scholars to date

Target 4.3: By 2030, ensure equal access for all women and men to affordable and quality technical, vocational and tertiary education, including university

66% of SM’s
workforce
are women

57% of new
hires are
women

Target 5.1: End all forms of discrimination against all women and girls everywhere

22% of SMIC’s Board
are women

Target 5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

33-35%SM Prime’s average
annual water recycling
equivalent to

2,000+Olympic-size
swimming pools

Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity

33,000 solar panels installed to date producing 9.245 megawatts

569 MWh of renewable energy generated through project under the BDO SEF program to date

Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix

91% of SM's economic value generated in 2018 distributed to key stakeholders

Around 232,000 indirect jobs supported through SM's supply chain

Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% gross domestic product growth per annum in the least developed countries

23,469 employees part of collective bargaining agreements within the SM group

# 158 World's Best Employer Forbes Global 2000

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value

18,567 tenants in SM malls

Target 9.3: Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets

10% of Capex in infrastructure costs is allocated to disaster resilience and sustainability

PHP44bn total clean energy projects funded by BDO and China Bank to date

Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities

105,000 participated in Angels’ Walk to raise awareness for autism

52,311 participated in Happy Walk to raise awareness for Down syndrome

Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status

1,000 disaster resilient homes

Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums

5 integrated lifestyle cities
with disaster resilient
features built

Target 11.3: By 2030, enhance inclusive and sustainable urbanization and capacity for participatory, integrated and sustainable human settlement planning and management in all countries

88% of total waste generated equivalent to 15,384 m3 is recycled

Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources

Publication of Sustainability Reports by all listed companies in the SM group

Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle

64private sector members of UNISDR Private Sector Alliance for Disaster Resilient Societies (UN ARISE) Philippines

USD$300mntotal green bond issuance by BDO and China Bank with IFC as sole investor

Target 13.2: Integrate climate change measures into national policies, strategies and planning

53 automated weather stations in SM malls

Target 13.3: Improve education, awareness raising and human and institutional capacity on climate change mitigation, adaptation and impact reduction and early warning

3 marine protected areas

PHP20.2mn funds raised for World Wide Fund for Nature (WWF) through BDO ATM donations

Target 14.2: By 2020, sustainably manage and protect marine and coastal ecosystems to avoid significant adverse impacts, including by strengthening their resilience, and take action for their restoration in order to achieve healthy and productive oceans

10 hectares of mangroves preserved

3.3M tree saplings planted to date

120 bird species protected in Pico de Loro Village and Carmen Copper Mine Site

Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests and substantially increase afforestation and reforestation globally

8 SM companies ranked among the Top 30 publicly listed companies with the highest corporate governance score based on the ASEAN Corporate Governance Scorecard

Target 16.6: Develop effective, accountable and transparent institutions at all levels

GRI-SM Partnership for the first GRI Sustainability Summit in the country

Target 17.14: Enhance policy coherence or sustainable development

GRI Sustainability Summit Philippines October 2018 Co-presenter

UN ARISE Philippines signatory

United Nations Global Compact (UNGC) signatory

Target 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries

Supporting Communities – Social Development Framework

Wherever SM is present, SM Foundation helps create opportunities following its Social Development Framework – an intersection of access to basic social services namely education, healthcare, food sufficiency and shelter. Its framework is aligned with the SM group’s Sustainability Framework. The Foundation is a member of the SM group-wide sustainability technical-working group.

Engaging Our Stakeholders