Philippines' SM Group Hits 31% Renewable Energy in 2025

The SM Group, one of the Philippines' biggest corporations, now runs 31% of its operations on renewable energy after boosting clean power use across its malls, banks, and retail stores in 2025.

The company sourced 730 million kilowatt-hours of renewable electricity last year, up from 27% the previous year. That shift prevented 370,644 metric tons of carbon emissions, the same as removing nearly 297,000 cars from roads for an entire year.

"For us, investing in renewable energy is both a sustainability and business decision," said SM Investments CEO Frederic C. DyBuncio. The strategy helps the company manage energy costs while building more resilient operations for customers and communities.

At the heart of SM's clean energy push sits the Philippine Geothermal Production Company, which operates steam fields in Batangas, Laguna, and Albay provinces. These sites generate up to 400 megawatts of geothermal power, enough to supply one million households annually with around-the-clock electricity.

The company is now developing six new geothermal sites across Luzon that could add another 400 megawatts of clean power to the country's grid. Unlike solar panels that only work during daylight, geothermal energy flows constantly, providing stable power for homes and businesses day and night.

SM Prime Holdings has already installed more than 200,000 solar panels across 69 properties. Even smaller operations are joining in: grocery chain Alfamart recently added solar panels to its Saraiya Distribution Center with 120 kilowatt-peak capacity.

The Ripple Effect

SM's banking arms are spreading the renewable revolution beyond their own walls. BDO Unibank has funded 1.21 trillion pesos in sustainable projects, including 177 billion pesos for 71 renewable energy developments. China Banking Corporation added 72 billion pesos in financing for energy access and efficiency projects in 2025.

The Philippines faces growing energy demands as its economy expands. By proving that major corporations can profitably switch to renewables while maintaining reliable operations, SM is creating a roadmap other companies can follow.

DyBuncio emphasized that reliable, affordable energy strengthens not just businesses but entire communities and the broader economy. As more companies follow SM's lead, the Philippines moves closer to energy independence powered by its own natural resources instead of imported fossil fuels.