Award-winning circularity: SM Waste Free Future transforms closed-loop systems

KUALA LUMPUR, 15 AUGUST 2026 —

SM Prime’s Waste-Free Initiative Wins Gold at 2026 ESG Awards, Boosting Malaysia’s Circular Economy Focus

SM Waste Free Future was launched in 2024 at SM Mall of Asia, marking the beginning of a group-wide effort to standardize waste segregation and promote circularity across SM’s properties nationwide. The initiative is built on behavioral change, starting with daily waste generation assessments and the deployment of a three-bin system—Recyclable, Disposable, and Compostable (RDC)—to simplify segregation and encourage consistent habits among employees, tenants, and visitors.

By 2025, the program achieved an 80% diversion rate for non-hazardous waste from landfills, a milestone requiring sustained investment and operational discipline. A key enabler is SM GUUN Environmental Company, Inc. (SGECI), a waste-to-fuel facility in Consolacion, Cebu, which converts disposable waste into alternative fuel for cement manufacturers such as Holcim Philippines and APO Cement. This process supports both waste diversion and circularity by keeping materials in productive use.

SGECI’s ecosystem includes partnerships with Asia Brewery, PetValue, Nature Springs, and Concreat to recover, process, and repurpose waste from SM properties and surrounding businesses. In 2025 alone, the facility processed over 6,000 metric tons of waste, reinforcing the initiative’s environmental and economic impact.

Community engagement has been central to the program’s success. SM Cares, SM Supermalls’ CSR arm, mobilized 48,000 volunteers for the 2025 International Coastal Cleanup—the largest participation to date—targeting youth and local communities through digital and on-ground campaigns. “Creating a waste-free future requires everyone to play a role—from employees and tenants to local governments and customers,” said Engr. Liza B. Silerio, SM Supermalls VP for Compliance and Sustainability.

The initiative is championed under the SM Green Movement, which unites employees, tenants, partners, and communities under a shared vision of responsible waste management. Louernie de Sales, SM Prime VP for Sustainability and President of SGECI, emphasized the role of collaboration: “This recognition reflects the power of collective action. The award belongs to everyone who has contributed to this journey.”

For Malaysia, where waste management and circular economy goals are increasingly prioritized under national policies such as the Zero Single-Use Plastics Roadmap and the National Circular Economy Roadmap, SM Prime’s model offers a replicable framework. The initiative demonstrates how large conglomerates can integrate waste diversion, community engagement, and industrial partnerships to achieve measurable environmental outcomes.

While SM Prime’s initiative is localized in the Philippines, its principles—standardized segregation, industrial upcycling, and multi-stakeholder collaboration—align closely with Malaysia’s sustainability agenda. Industry observers note that such models could inform local mall operators and industrial zones seeking to enhance their circularity performance.

Details on potential Malaysia-specific adoption or partnerships remain unavailable. The initiative’s success in diverting 80% of non-hazardous waste and processing over 6,000 metric tons in 2025 highlights the scalability of integrated waste management systems when supported by infrastructure and community participation.