SM Investments Corp. (SMIC) said deeper greenhouse gas emissions reductions will depend on the expansion of renewable energy, transmission infrastructure, and the power grid, even as it continues its own decarbonization efforts.

Speaking at the recent MUFG NOW Manila forum, Timothy Daniels, SMIC consultant and head of sustainability and investor relations, said efforts by individual companies alone would not be enough to drive larger emissions reductions.

“While companies can improve efficiency, install solar panels, and use renewable power, progress also depends on the availability of renewable energy, transmission infrastructure, and grid development,” he said.

The comment underscores a broader constraint facing companies that have set their own climate targets: on-site efficiency measures can lower direct emissions, but access to cleaner power at scale still depends on the country’s energy system.

SMIC said it remains on track to reduce its greenhouse gas emissions by 40% by 2040, supported by investments in renewable energy, energy efficiency, and other sustainability initiatives across its businesses.

According to the company, the target is backed by existing programs and investments focused on reducing emissions through operational measures, including energy efficiency improvements and renewable energy projects.

“When we looked at our emissions, we identified where we could make meaningful reductions and developed a target supported by specific programs and investments. We wanted a goal that reflects what we can achieve based on actions we are taking today,” Mr. Daniels said.

SMIC said it has installed more than 200,000 solar panels across its properties to generate electricity and reduce reliance on grid power.

Its mining unit, Carmen Copper Corp., operates a three-hectare floating solar facility at the Malubog Reservoir in Cebu. The facility has 8,540 solar panels with a generating capacity of 4.99 megawatts (MW), which the company said could supply about 10% of the mine’s electricity requirements.

The company also said it has expanded its renewable energy investments through Philippine Geothermal Production Co., which operates geothermal steam fields in South Luzon.

SMIC added that banking subsidiary BDO Unibank, Inc. has provided about P1.2 trillion in sustainable financing, including funding for 71 renewable energy projects with a combined installed capacity of 6,165 MW.

SMIC shares fell 0.17% to P589 apiece on Tuesday. — Alexandria Grace C. Magno