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.

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.

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.

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:

PET Bottles
Plastic Cutlery
Single-use plastic
Plastic cups from coffee or milk tea
Soiled coffee paper cups
Soiled food containers
Food packaging and sachets
Soiled tissue or napkins
Soiled diapers/ sanitary products
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.

SM Prime’s year one toward a waste-free future

According to the Department of Environment and Natural Resources (DENR), the Philippines generates over 60,000 metric tons of waste daily, a figure expected to rise with urban growth and economic activity.


Recognizing the urgency, SM Prime Holdings, Inc. (SM Prime) launched the SM Waste-Free Future program in 2024 as one of its flagship environmental sustainability programs to reduce overall waste generation through effective waste segregation and divert waste away from landfills through recycling, composting, and other sustainable disposal methods.

Together as one community, 2024 marks the launch of SM Waste-Free Future in SM Mall of Asia.

 

In its first year, it implemented a new waste management segregation system across its properties, including all malls, residences, offices, hotels and convention centers, and estates nationwide.

Beyond SM Prime, the campaign on waste has extended its reach to other SM groups and portfolio companies, making SM Waste-Free Future a group-wide endeavor.

A bigger picture of waste

The Recyclable, Disposable, Composable (RDC) bins are central to the program’s segregation practice. RDC makes it simple and consistent, providing key visual cues to bin it right.

Together for an SM Waste-Free Future, the Recyclable, Disposable, Composable (RDC) bins at SM Store branches support the broader goals of environmental sustainability through clear and effective waste segregation practices.

Despite its infancy stage, the rapid and wide-scale integration underscores SM Prime’s ability to operationalize sustainability across diverse asset classes and ecosystems, reinforcing the company’s commitment to innovative waste diversion strategies.

SM Prime also celebrates the efforts of SM Retail in advancing a waste-free future. All SM Store branches have successfully deployed their RDC bins, while SM Markets continues to implement its reusable bag system. In support of waste management efforts, Goldilocks Bakeshop has also implemented the RDC system across its stores in all SM Supermalls.

Creating opportunities to expand

Partnerships with other organizations pave the way for the work ahead. SM Waste-Free Future strengthens tenant engagement for SM Supermalls and SM Offices, supporting businesses with similar goals on waste and helping them align with their global sustainability policies.

Similarly, it reinforces SM Hotels’ advanced Back of House operations, food waste policies, and textile recycling program. The SM Hotels’ Tela Tales program transforms discarded linen into sustainable products and provides livelihood for the women of partner communities, upcycling more than 2,000 yards of condemned linens.

Recognizing that technology greatly contributes to the solutions, SM Waste-Free Future has also strengthened collaborations with other organizations. SM Development Corporation (SMDC) works with Globe’s Hapag Movement to rescue surplus food from residents and help make a difference in the lives of Filipino families experiencing involuntary hunger and divert household food waste away from landfills.

In the mall’s Cyberzone areas, SM Supermalls’ Electronic Waste Collection Program and their partnership with PLDT and Smart make it accessible to dispose of old mobile devices and other electronic gadgets responsibly.

Shoppers can conveniently drop off old gadgets for proper recycling through SM Supermalls’ E-Waste Collection in partnership with PLDT and Smart at Cyberzone.

 

Join the movement

SM Waste Free Future invites more communities and stakeholders to participate through proper waste segregation, joining local clean-ups and collection drives, or supporting eco-friendly products and practices.

Positive reinforcement and catchy social media campaigns from SM Cares target the youth by promoting better waste segregation habits and encouraging them to become more involved with the state of the planet they will inherit.

Recently, in celebration of World Oceans Day, SM Cares mobilized communities across 18 SM Supermalls nationwide, bringing together over 5,000 volunteers and collecting more than 30,000 kilograms of waste from shorelines.

Mobilizing for World Oceans Day, SM Cares volunteers unite and act to remove waste that ends up in the oceans.

“Waste-Free Future is more than just a program—it’s a mindset shift. And we’re only getting started,” said Engr. Liza Silerio, Vice President for Corporate Compliance and Program Director of SM Cares for Environment. “We call on our tenants, partners, and customers to continue the journey with us—because a truly sustainable future is one we build together.”

With the growing momentum for a waste-free future, SM Prime believes that a cleaner, more circular Philippines is well within reach.