SM INVESTMENTS Corp. (SMIC) has been included in the FTSE4Good Index Series, an index managed by the London Stock Exchange unit FTSE Russell, after it was recognized for its “strong” environmental, social, and governance (ESG) practices.
In a statement issued Tuesday, the Sy-led holding firm said it is now part of the FTSE4Good Index Series and FTSE4Good Emerging Index — which assesses companies in over 20 emerging countries.
Created in 2001, the FTSE4Good index identifies companies showing strong ESG practices based on globally recognized standards. It acts as a gauge for market participants to assess sustainable investment products.
The index may be used for the creation of index-tracking investments, financial instruments, or fund products focused on sustainable investment, according to FTSE Russell’s website.
It may also be used to identify which companies are environmentally and socially sustainable, as well as a benchmark index for tracking the performance of sustainable investment portfolios.
“This affirms our commitment to sustainable operations and strong adherence to good corporate governance. We remain focused on our key strategies to create shared value for all our stakeholders which includes the communities we serve,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a statement.
SMIC in 2018 released its 5th Sustainability Report in line with Global Reporting Initiative (GRI) standards. The report shows that the group has four focus areas for its sustainability framework, namely inclusive economic opportunities, environmental responsibility, positive social impact, and good corporate governance.
In terms of job creation, SMIC generated over 350,000 direct and indirect jobs in 2018, and is ranked 158th in Forbes magazine’s World’s Best Employer list.
Meanwhile, the group environmental efforts included the installation of 33,000 solar panels, and the recycling of 35% of SM Prime Holdings, Inc.’s total water consumption equivalent to 2,044 olympic-size swimming pools, among others.
The company also tallied 16.6 million beneficiaries of various social development programs to date, as well as 23,17 farmers trained through 187 sessions.
SMIC has three core businesses, namely banking through BDO Unibank, Inc., property through SM Prime Holdings, Inc., and retail through SM Retail, Inc. The group also has equity investments in Belle Corporation, Atlas Consolidated Mining and Development Corp., 2GO Group, Philippines Urban Living Solutions, Net Buildings and CityMall Commercial Centers.
Shares in SMIC climbed 1.68% or P16.50 to close at P1,000 each at the stock exchange on Tuesday. — Arra B. Francia
