Award-Winning Circularity: SM Waste Free Future Transforms Closed-Loop Systems

SM Prime Holdings, Inc. (SM Prime) received the Gold Award in the Transformation Category at the 2026 ESG Edge Impact Awards for its SM Waste Free Future initiative. The Transformation Category celebrates businesses and organizations that have significantly improved and evolved overall sustainability performance and operational models over time. 

From Vision to Transformation 

Through a collaborative ecosystem of stakeholders working toward a common goal, the shared commitment of a waste-free future reflects the SM way of creating meaningful and lasting impact. The launch of SM Waste Free Future in 2024 at the SM Mall of Asia marked the start of the group-wide initiative on waste circularity and standardized waste segregation across SM properties. 

At the core of the initiative is the belief that lasting waste reduction begins with everyday behavior. Applying the theory of change, the program started with observations of daily waste generation and an assessment of existing segregation systems. This was followed by the deployment of the three-bin waste system: Recyclable, Disposable, and Compostable (RDC) bins, which make segregation easier and more accessible, helping reinforce positive daily habits over time. 

The 2024 nationwide launch of SM Waste Free Future

Early days of employee engagement and awareness-building. 

Closing the loop, however, requires more than improving waste management practices. In 2025, a year after its launch, SM Prime achieved an 80% diversion rate for non-hazardous waste away from landfills. Achieving this level of diversion means sustained commitment and strategic investment in the program. 

A key enabler is SM GUUN Environmental Company, Inc. (SGECI), a waste-to-fuel facility in Consolacion, Cebu, that transforms disposable waste into alternative fuel for major cement manufacturers such as Holcim and APO Cement, advancing both waste diversion and circularity goals by keeping materials in productive use. 

SGECI’s expanded ecosystem includes Asia Brewery, PetValue, Nature Springs, and Concreat to recover, process, and repurpose waste materials generated across SM properties and smaller businesses in the area. It has processed more than 6,000 metric tons of waste in 2025, helping divert valuable resources away from landfills. 

Through SGECI, SM Prime invests in critical waste infrastructure to help the country address its waste challenges. 

Turning circularity into movement 

Behind every framework, however, lies the collective action critical to any program. SM Cares, the corporate social responsibility arm of SM Supermalls, leverages its social media presence to engage communities, especially the youth, in active participation toward a waste-free future. Last year's International Coastal Cleanup had 48,000 volunteers – the largest gathering of coastal warriors to date.  

“Creating a waste-free future requires everyone to play a role—from employees and partner-tenants to local governments, communities, and customers,” says Engr. Liza B. Silerio, SM Supermalls VP for Compliance and Sustainability.

 “It is always a challenge at the start, but I’m proud of how far we have come. By working together, we can turn waste challenges into opportunities for positive environmental impact,” said Silerio.  

SM Prime representatives with Engr. Liza B. Silerio (left middle), SM Supermalls VP for Compliance and Sustainability; Dr. Louernie de Sales (right middle), SM Prime VP for Sustainability and President of SGECI; Ms. Katrina Dalusong (leftmost), Philippine Daily Inquirer’s Director for Group Sales; and Philippine Daily Inquirer Business Section Editor, Ms. Tina Arceo-Dumlao (rightmost).

Championed by the SM Green Movement, the SM Waste Free Future continues to advance SM Prime's circular economy practices by bringing together employees, tenants, partners, and communities behind a shared vision of responsible waste circularity. 

“This recognition reflects the power of collaboration in attempting to do what is impossible. The award belongs to everyone who has contributed to the journey. It demonstrates that when we unite behind a common purpose, we can achieve transformation at scale,” says Louernie de Sales, SM Prime VP for Sustainability and President of SGECI.