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. 

(Photo Caption) The 2024 nationwide launch of SM Waste Free Future. 

(Photo caption) 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. 

(Photo caption) 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.  

(In photo) 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. 

Take small steps for big change: SM Waste-Free Future illustrates doable actions for a cleaner, greener planet.

Becoming part of the solution toward better waste management practices has been made easier by SM Prime Holdings Inc. (SM Prime) with The SM Waste-Free Future (WFF) Manual. 

 

Launched at SM’s first Sustainability Expo, the 17-page visual guide offers a simple and easy-to-follow resource on how everyone can engage with waste management touchpoints available in their most-loved SM Supermalls. 

 

"The easiest way to adopt sustainable practices is a two-pronged approach," said SM Supermalls Vice President for Corporate Compliance and Sustainability, Liza Silerio. "The first is building the avenues that make waste management accessible and easy to do. The second is ensuring that these are easy habits to build and practice in our daily lives.” 

 

The manual combines text and visuals to enhance the "Learn - Practice - Champion" workflow, a three-step approach to make these practices easy to adapt and eventually pass on, with additional green tips and trivia.  Understanding how even small, thoughtful steps can make a huge difference is key to helping reduce waste sent to landfills. 

Back to Basics

To further understand the composition of our waste, SM Prime led a Waste Analysis Characterization Study (WACS) in its largest development–the SM Mall of Asia Complex. The top 10 most common waste items were identified:  

 

1. PET Bottles

2. Plastic Cutlery

3. Single-use plastic

4. Plastic cups from coffee or milk tea

5. Soiled coffee paper cups

6. Soiled food containers

7. Food packaging and sachets

8. Soiled tissue or napkins

9. Soiled diapers/ sanitary products

10. Food waste

 

The SM Waste Free Future manual encourages everyone to properly dispose of waste by using designated Recyclable-Disposable-Compostable (RDC) bins made accessible in all SM Malls.

PET Bottles are categorized for the Blue "Recyclable" Bins to help return these to factories for recycling.

Disposable items and containers such as plastic cutlery, single-use plastic, plastic cups from coffee or milk tea, soiled coffee paper cups and food containers, food packaging and sachets, and soiled tissue or napkins, diapers, and sanitary products are for tossing into the gray "Disposable" Bins. 

Finally, all food waste with no packaging and cutlery are guided to the green "Compostable" Bins.

 

As one of the fastest-growing solid waste streams in the world, Electronic Waste (E-Waste), ranging from batteries to broken gadgets and technological accessories, gets special mention. SM Supermalls promotes proper disposal of e-waste through special bins in SM Cyberzone areas as easy drop-off points for recycling or processing before disposal of small, used, and defective electronic devices. 

 

Take-action, join the movement

Every first Friday and Saturday of the month from 10:00am to 2:00pm, mallgoers can bring their trash and convert it to cash. Trash-to-Cash encourages household segregation by bringing clean and dry recyclables in designated Trash-to-Cash areas in exchange for economic incentives. The program promotes sustainable systems and the advancement of the circular economy. 

To further divert plastics from the environment, SM implements its Plastic Waste Collection program across all of its properties. Since its integration in 2019, 70,000 kilograms of clean, empty, and dry consumer plastics have been collected.

Through SM Cares, SM Prime’s corporate social responsibility arm, regular coastal cleanups are organized for communities to mitigate the problem of marine pollution by removing waste before it spreads further in the seas. Last year, volunteers were able to divert 200,000 kilograms of marine litter from the ocean through three major coastal cleanups organized nationwide on top of weekly cleanups done by SM Estates.

Another Coastal Cleanup drive has been scheduled this year on March 22 across SM La Union, SM City Urdaneta Central, SM City Tanza, SM City J Mall, SM City Daet, and SM City Consolacion for World Water Day.

  

"Communicating waste management practices clearly and easily helps our stakeholders support our vision for a Waste Free Future. When we all come together and choose to help save our planet, even the smallest actions toward the right direction yield great results," said Silerio.

 

LOOK : SM Prime Embarks on a Unified Waste Management Program for an #SMWasteFreeFuture

 SM Prime Holdings, Inc. (SM Prime), one of the leading integrated property developers in Southeast Asia, is embarking on a unified waste management and segregation campaign in response to the growing global crises on waste. SM Prime aims to bring all its property groups and stakeholders toward an #SMWasteFreeFuture. 

According to the United Nations Environment Programme (UNEP), humanity generates more than 2 billion tons of municipal solid waste annually, of which 45 percent is mismanaged. Without urgent action, municipal solid waste will double to almost 4 billion tons each year by 2050. On December 14, 2022, the United Nations General Assembly proclaimed March 30 as the International Day of Zero Waste.

The following year, UNEP inaugurated the First International Day of Zero Waste, to bolster actions to address the global pollution crisis. It aims to encourage global action and bring the world’s attention to zero waste. 

Strong foundations 

SM Prime’s founding leader, Henry Sy, believed that “business growth and social development must go hand in hand.” The company follows this guiding principle and has formed a sustainability policy that commits to the following: Resource Conservation and Efficiency, Disaster Resilience, Climate Advocacy, Social Integration, and Transparent Reporting. 

Anchored on these sustainability commitments are the SM Supermalls’ Environmental Programs on Waste Management. Through its corporate social responsibility arm, SM Cares, SM Supermalls has pioneered longstanding programs such as the Trash to Cash recycling market, and provided support to the annual International Coastal Clean Up, among other national events.

(Photo caption) The largest haul and biggest participation to-date: The 38th International Coastal Clean-up had 17,000 volunteers across 15 SM Malls in 12 locations nationwide. It is an annual community-driven partnership between SM Supermalls, SM Cares, the DENR, LGU’s and the volunteers from the SM community. 

(Photo caption) Scaled to perfection: One of the first recycling markets the country, Trash-to-Cash’s valuable example that waste can have monetary benefits. The recycling market is held every first Friday and Saturday of the month in all SM Supermalls to encourage waste segregation and recycling among SM customers, tenants, and the community. The recycling market is open from 10:00 AM to 2:00 PM.

In the hotel and tourism sector, SM Hotels and Conventions Corporation (SMHCC) has taken the lead in mitigating global food waste by implementing sustainable initiatives across its properties in the Philippines. Their key initiatives include the World Wide Fund for Nature’s Sustainable Diner Program, that aims to transform and help the food service sector minimize its impact on the environment thru resource efficiency, plastic refusal and food waste management and contribute to the world’s future food security. 

(Photo caption) Closing the loop: SMHCC’s sustainability efforts are anchored on the 7Gs or Seven Green Goals, based on the United Nations Sustainable Development Goals (UNSDG). The overall thrust for sustainability is cascaded to the rest of properties, ensuring that it is embedded at every step of the hotel’s operations, ensured by property Sustainability Champions.

To support these programs, SM Prime also recently unveiled its waste-to-fuel partnership with GUUN Co. Ltd. (GUNN) to implement the Japanese technique of reducing landfill impact. The technology converts non-recyclable and hard-to-recycle packaging into alternative fuel. 

(Photo caption) No time to waste: Sorting through the amount of trash at the GUUN Facility in Cebu. Unfit for recycling and reuse, the waste material recovered avoids the landfill and is then reconverted to fuel resource. 

A Vision for an #SMWasteFreeFuture 

To mark the International Day of Zero Waste on March 30, 2024, SM Prime is releasing its vision for an #SMWasteFreeFuture. “As a community, we strongly believe in our ability to contribute to solving today's waste issues,” said Hans “Chico” Sy, Jr., President of SM Engineering Design and Development Corporation (SMEDD) and SM sustainability champion. 

SM Prime’s announcement of its vision of an #SMWasteFreeFuture demonstrates the company’s strong commitment and sustainability stewardship, by inviting its stakeholders to engage in activities that will help spread zero-waste awareness and work for a sustainable and environmentally responsible approach on waste management.

“We understand that this may seem like a daunting challenge to overcome However, by joining forces, we can create a world that our future generations truly deserve – if we have the courage to take on this journey together,” said Sy. 

SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people. SM Prime is pursuing the next horizon on integrated property development and onward to building sustainable cities of the future.