2017 Sustainability Report
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2017 SUSTAINABILITY REPORT SM PRIME HOLDINGS, INC. 10th Floor, Mall of Asia Arena Annex Building Coral Way cor. J.W. Diokno Boulevard Mall of Asia Complex Pasay City 1300 Philippines Email: [email protected] www.smprime.com Vision To build and manage innovative integrated property developments that are catalysts for a better quality of life. Mission We will serve the ever-changing needs and aspirations of our customers, provide opportunities for the professional growth of our employees, foster social responsibility in the communities we serve, enhance shareholder value for our investors and ensure that everything we do safeguards Contents a healthy environment for future generations. 2 About SM Prime 3 About this Report 4 President’s Report 5 Aligning Shared Values 11 Economic Value Performance 13 Sustainable Operations 20 Employee Engagement 26 Corporate Governance 33 Awards and Accolades 34 GRI Content Index 37 Corporate Information 1 SM Prime Holdings, Inc. Sustainability Report 2017 About SM Prime SM Prime Holdings, Inc. (SMPH) is one of the largest integrated property developers in Southeast Asia. It offers innovative and sustainable lifestyle cities with the development of malls, residences, offices, hotels and convention centers. It is also the largest, in terms of asset, in the Philippines. 2 SM Prime Holdings, Inc. Sustainability Report 2017 About this Report This is SM Prime’s 10th annual Sustainability Report and sixth time following the Global Reporting Initiative (GRI) Guidelines. This report is in accordance with the GRI Sustainability Reporting Standards. It covers the environmental, social, economic, and governance information of SM Prime in the Philippines and in China for the year 2017. The scope includes SM Prime’s business units including Malls, Residences, Offices, and Hotels and Convention Centers. 3 SM Prime Holdings, Inc. Sustainability Report 2017 PRESIDENT’S REPORT We are constantly enhancing our “ building designs by integrating environment-friendly technologies.” SM Prime believes that the key to an enduring and sustainable Framework) as the country remains vulnerable to natural Sustainability will continue to be a guiding principle for SM Prime. success is a positive environmental, social, and more importantly, disasters made worse by climate change. Supporting the Finding avenues to adopt sustainability in different levels of the economic impact that our operations make. This is why we have implementation of the Sendai Framework is the UNISDR organization, in operations, strategies, and investments, is a further involved sustainability efforts, as detailed in this report, to Private Sector Alliance for Disaster-Resilient Societies continuing process for the company. ensure steady growth in the years to come. (UNISDR ARISE) and SM Prime - who has since embraced the practice of designing disaster-resilient properties. In this Together with the management team, our investor, partners, Embedding sustainability in our operations advocacy, SM Prime serves as the country secretariat of the customers, and with the commitment and dedication of our In 2017, we continued to embed the United Nations Sustainable UNISDR ARISE with Mr. Hans T. Sy (SMPHI Chairman of the employees, we continue on our journey of evolution to becoming Development Goals (UN SDGs) into our sustainability activities. Executive Committee), who continues to lead private sector a more responsive, responsible, and socially active SM Prime. As a responsible property developer, we are constantly enhancing initiatives in the Philippines on disaster resiliency with his re- our building designs by integrating environment-friendly election as the only Filipino member of the UNISDR ARISE technologies. To date, we have installed 33,000 units of solar International Board. panels in our various properties. The US Green Building Council (USGBC) recognized the company’s green building commitment Making a positive economic impact to more communities as it has awarded SM Aura Premier and Conrad Hotel Manila the We have increased our reach with the opening of six new SM JEFFREY C. LIM seal of the Leadership for Energy and Environmental Design Gold Supermalls in 2017. As SM Prime expands in key provinces, President Certification (LEED). economic development in these areas follow, as evidenced by our other communities. Enabling economic development We continue to advocate the UN International Strategy for in communities is testament of SM Prime’s role for sustainable Disaster Reduction Sendai Framework (UNISDR Sendai development. 4 SM Prime Holdings, Inc. Sustainability Report 2017 Aligning Shared Values SM Prime is guided by its commitment to create shared long-term value for all stakeholders. It involves aligning with the group-wide strategy and is anchored to the 17 UN Sustainable Development Goals (UN SDGs). Awareness Disaster Risk Reduction Conservation and Business Continuity Preservation Sustainability Framework SM Prime is aligned to the group-wide strategy of its mother company, anchoring its economic Leadership Engaged Development Workforce impact contribution to the environmental, social, Policy Community Development & Impact and governance (ESG) global standards. These Implementation serve as the Company’s drivers in delivering results and creating positive impact to the environment and stakeholders. Our Reporting Process 1 2 3 4 Steps Taken Capacity Building Materiality Data Gathering Management Assessment Review Training and Workshop Review of operations Collection of stories and Validation and on the GRI Standards and management data based on identified acceptance of approaches material topics material topics and Identification of key reported information impacts across the value chain and performance indicators GRI Reporting Stakeholder Materiality, Sustainability Stakeholder Stakeholder Principles Applied Inclusiveness and Context, Stakeholder Inclusiveness and Inclusiveness and Sustainability Context Inclusiveness, and Completeness Completeness Completeness 6 SM Prime Holdings, Inc. Sustainability Report 2017 Stakeholder Group Issue Method and Frequency Outcome Stakeholder Employees a. Retention Dialogue through focus group Employees from focus group b. Employee training and discussions, monthly operations discussions were incorporated development meeting, and annual forums into human resource strategies c. Diversity and equal for retention and attraction Engagement opportunity Performance appraisal review allows Feedback from performance communication between appraisal review were SM Prime strategically aligns its initiatives to employee and manager incorporated into training and development its Sustainability Framework. This framework Business Partners a. Economic All business partners are screened Improved screening of business is based on comprehensive and in-depth Performance on an annual basis based on quality partners and increased dialogue b. Labor Practices of service, cost efficiency, moral between business partners and stakeholder consultations across all business standing and compliance with related organization units – encompassing economic, social, and laws Shareholders a. Financial implications Annual stockholders meeting, Incorporated sustainability environmental concerns relating to the Company’s and Investors b. Risk reduction ongoing meetings, road shows, into our investor relations initiatives and conference calls communications strategy performance. Non-govermental a. Biodiversity loss Constant partnerships through multi- Increased communications and Organizations b. Climate change and stakeholder forums and joint projects dialogue through the SM Green disasters Retail Agenda and the Top c. Environmental SM Prime is a member of the Leaders Forum protection and Philippine Business for the rehabilitation Environment and a partner of d. Renewable energy Weather Philippines Foundation Customers a. Disaster risk reduction Customer satisfaction surveys and Feedback from surveys and efforts social media communications social media communications are b. Water consumption incorporated in the organization allocation for better customer service and retail offerings 7 SM Prime Holdings, Inc. Sustainability Report 2017 Key Matters High The materiality matrix of SM Prime is formed with the utmost urgency to address and determine the internal and external context issues such as employee development, profitability, and concern for the community. In determining the material aspects of this Concern of Stakeholder Level Current or potential impact of SM Prime High report, SM Prime conducted the aforementioned stakeholder engagement to properly map out Economic Performance Employee Child Labor Market Presence Labor and Management Relations Forced and Compulsary Labor the level of concern of the stakeholders and Energy Occupational Health and Safety Security Practices the company. Water Training and Education Indigenous Rights Biodiversity Diversity and Equal Opportunity Local Communities Emissions, Effluents and Waste Equal Remuneration for Men and Women Public Policy Compliance Non-Discrimination Customer Health and Safety Freedom of Association and Collective Bargaining Product and Service Labelling 8 SM Prime Holdings, Inc. Sustainability Report 2017 Sustainable Development Goals Aligning our environmental, social, and governance programs to the 17 Sustainable Development Goals (SDGs) set by the United Nations, gives more meaning to the efforts and resources that the company has allocated. This allows us to contribute to the