SM Prime is Building for a Smarter, Cleaner Energy Future

SM Prime Holdings, Inc. (SM Prime) continues to lead the way in sustainable property development, delivering low-carbon office spaces and climate-smart retail environments through energy efficiency initiatives, on-site renewable solutions, and strategic long-term partnerships.

A sustainable future for all. The iconic SM Mall of Asia, the world’s 6th largest mall, has become a sustainable retail shopping destination. Its physical and economic resilience stands as a testament to SM Prime’s commitment to sustainable business strategies.

From efficiency to impact

SM Prime has implemented programs such as lighting upgrades, improved air conditioning and ventilation systems (ACVS), and optimized building management systems since the 1990s —significantly reducing emissions, proving that energy efficiency delivers environmental and economic benefits. In 2024, SM Supermalls reduced electricity use by 38%, avoiding 156,736 metric tons of greenhouse gas emissions (GHG) and saving ₱2.3 billion.

In the recently concluded 5th Energy Efficiency Excellence Awards of the Department of Energy (DOE), SM Prime’s business units, namely, SM Supermalls, SM Offices, and SM Hotels, was awarded multiple Certificates of Excellence.

This success reflects collaboration among engineering teams, service providers, tenants, and customers, driven by the company’s leadership and commitment to the SM Green Movement.

Renewable energy milestones

A historic 100MW milestone. At Quezon City, the SM North Edsa, the first Philippine mall to use clean energy with rooftop solar photovoltaic systems, continues to deliver SM Prime’s people-centric sustainable retail spaces.

Guided by its goal of Net Zero by 2040, SM Prime is making decarbonization practical, reliable, and scalable. At SM City North Edsa, it recently celebrated a milestone for clean energy in the country, with 59 properties generating a combined 100 megawatts (MW) of on-site renewable energy—one of the largest solar capacities among property developers in the Philippines.

Today, more than 50% of energy use across SM Supermalls comes from renewable sources, supported by partnerships with Aboitiz Renewables, TotalEnergies, Citicore Renewable Energy Corporation, and leading solar providers. This collaborative approach empowers communities while building a safer and more sustainable future.

Working with WWF-Philippines, SM Prime has committed to the Science-Based Targets initiative (SBTi) and is working towards its near and long-term targets.

Retail architecture working with nature

Technology meets nature. In SM City East Ortigas, natural light brightens the food hall, and retrofitted lighting produces significant energy savings.

At the heart of SM Prime’s energy strategy is the creation of sustainable, resilient spaces that enrich experiences for the community. Across its malls, SM integrates passive design elements—high ceilings, large atriums, skylights, open spaces, and natural ventilation—reducing daytime energy consumption while offering brighter, breezier, and more welcoming spaces for relaxation, dining, and shopping.

Smart solutions such as motion-sensor escalators, solar-powered outdoor spaces, and energy-conscious cooling systems make SM Supermalls a top retail destination for tenant-partners and customers alike.

Shared climate benefits for all

“Customer expectations evolve quickly. When our leaders first initiated this project, it was in the early days of learning about the impact of our consumption on the planet. Now, brands – whether big luxury labels or small and medium enterprises – are looking for partners who invest in circularity and ESG impacts,” said SM Supermalls president Steven Tan.

As SM Prime continues to scale its energy programs, its SM Green Movement builds a resilient energy infrastructure to create a safe, comfortable, and welcoming space for its communities.

“We are committed to making our malls as energy efficient as possible by implementing advanced technologies and best practices. SM Supermalls will keep expanding its sustainability efforts to reduce environmental impact and improve the quality of life for both the planet and the communities we serve,” said Tan. (SM Prime)

SM debuts biggest rooftop solar panel system at SM Fairview

In line with its 40th anniversary, SM Supermalls has unveiled the largest rooftop solar photovoltaic (PV) system on a commercial building in the country at SM City Fairview, reinforcing its commitment toward environmental sustainability and corporate resilience. This is a significant contribution to SM Prime Holding’s Net Zero 2040 goal.

Front L-R: SM Supermalls VP for Mall Operations Engr. Junias Eusebio, Quezon City Mayor Joy Belmonte, SM Supermalls President Steven Tan, Quezon City District 5 Representative Patrick Michael Vargas, and SM SAVP for Mall Operations, Ronald Allan Brosas.

Behind L-R: SM Supermalls EVP for Marketing Joaquin San Agustin, SM Engineering Design & Development SVP Engr. Teodoro Bautista, Department of Energy – Energy Utilization Management Bureau Director Patrick Aquino, and SM Supermalls VP for Corporate Compliance, Engr. Liza Silerio.

With a 3.785-Megawatt peak (MWp) solar power capacity, the SM City Fairview solar PV system has 6,882 solar modules over a total area of 4.3 hectares and an average annual solar production of up to 5,960-Megawatt-hour (MWh). This means that 11% of the mall’s annual energy consumption will now come from the sun, which is equivalent to powering SM City Fairview’s 44 escalators and all its mall and perimeter lights for up to two (2) and a half years. The mall ultimately offsets or prevents the release of 4,133 tons of carbon dioxide into the atmosphere with every year of operations, supporting climate action and ensuring a more sustainable future for Filipinos.

The SM City Fairview solar PV system also contributes to the malls’ program solar pipeline and SM Prime Holdings’ Net Zero 2040 goal towards a significant reduction of the company’s total carbon footprint. SM Prime’s total rooftop solar capacity is currently at 73-MWp and will be further boosted up to 100-MWp by the end of the year.

Top shot of SM City Fairview’s solar PV system that features a 3.785-Megawatt peak (MWp) solar power capacity.

In partnership with Buskowitz Energy, this project enables SM to further reduce its carbon footprint and reliance on the national grid. It also supports the government’s thrust towards renewable energy for the benefit of the environment.

The first Philippine mall to have a rooftop solar PV installation was SM North EDSA in 2014 with a 1.5MW peak capacity. The installation at SM Fairview augments the rooftop solar PV system of SM City Santa Rosa, which was previously the largest installation with a 3.088MW peak capacity.

Mr. Hans T. Sy, SM Prime Chairman of the Executive Committee, is at the forefront of the property giant’s sustainability programs - from energy demand management to potable water and wastewater management to solid waste management, which he has led for more than two decades.

For more information, visit www.smsupermalls.com or follow SM Supermalls’ official social media accounts. (SM Supermalls)

About SM Supermalls

Celebrating 40 Super Years of Evolving With Every You, SM Supermalls—one of Southeast Asia’s largest mall developers—is continuously evolving to lead the way in sustainable development by integrating green design, energy efficiency, disaster resilience, and environmental stewardship into its 88 malls in the Philippines, all while creating inclusive spaces that enrich communities, support climate action, and ensure a better, more sustainable future for generations of Filipino shoppers. SM Supermalls is owned by SM Prime Holdings, Inc.