The next big SM development may not be decided by foot traffic, population growth or commercial potential alone.
Flood risk, earthquake exposure and other natural hazards could increasingly influence where the conglomerate puts its money.
SM Investments Corporation has partnered with the Department of Science and Technology-Philippine Institute of Volcanology and Seismology to integrate GeoRiskPH data into the way it evaluates properties, facilities and future investments across the country.
The move effectively brings disaster-risk mapping closer to the boardroom, where decisions on expansion, asset management and long-term capital deployment are made.
Under the agreement, SM will use government-developed tools including HazardHunterPH Pro, GeoMapperPH, PlanSmart and GeoAnalyticsPH to assess geological and hydrometeorological threats around its assets and operational sites.
That means a potential location can be viewed not only in terms of business opportunity, but also in terms of how exposed it may be to flooding, ground shaking, landslides and other hazards that could disrupt operations or weaken the long-term value of an investment.
For a conglomerate with a vast nationwide footprint, the stakes are significant.
SM’s businesses extend across property, retail, banking and other sectors, making physical resilience an increasingly important part of protecting assets and ensuring operations can continue when disasters strike.
Timothy Daniels, consultant and head of Investor Relations and Sustainability at SM Investments, said the partnership strengthens the group’s ability to make better long-term decisions.
“SM has always taken a long-term view of its investments. Understanding the risks around our properties and operations helps us make better decisions about where and how we invest,” Daniels said.
He added that working with PHIVOLCS gives the company access to scientific expertise and better information that can help strengthen both its businesses and the communities where it operates.
The partnership comes as climate and disaster risks are becoming more difficult for companies to treat as secondary concerns.
A prime commercial site may look attractive on paper, but recurring flooding, seismic exposure or other hazards can translate into higher operating costs, greater disruption and potentially larger losses over time.
That is where GeoRiskPH could become especially valuable.
Instead of looking at disaster preparedness only after a project has been built, hazard information can be considered earlier in the investment cycle — from site evaluation and project planning to asset management and business continuity.
PHIVOLCS Director Dr. Teresito C. Bacolcol said stronger cooperation between government and the private sector can help make disaster resilience more deeply embedded in development decisions.
“Partnerships like this with the private sector contribute significantly in helping us better understand the country’s multi-faceted needs regarding resilience,” Bacolcol said.
He said government continues to encourage similar collaborations because the use of data-driven hazard tools is important to sustainable development and disaster risk reduction.
The partnership also reflects a larger reality confronting Philippine businesses.
In a country regularly exposed to typhoons, floods, earthquakes, volcanic activity and landslides, disaster risk is no longer just an emergency-management issue. It is becoming an investment issue.
For SM, that could mean asking tougher questions before committing capital.
How vulnerable is a site? What hazards surround it? How would a major disaster affect operations? And will an investment still make sense decades from now?
As SM continues expanding nationwide, those questions could increasingly shape where the group builds next.
The message is clear: a location may offer enormous business potential, but if the risk is too high, it may no longer be prime real estate.