Ahead of San Miguel Corporation’s (SMC) annual stockholders’ meeting (ASM), leaders representing fisherfolk and farmer communities residing near SMC-owned coal and gas plants in the Philippines have called on the company’s stockholders to cease their investments in fossil fuels.
According to SMC’s annual report, the company achieved its highest-ever net income of approximately US$772 million in 2022, marking a significant increase of nearly 90 percent compared to its 2020 loss of nearly US$80 million.
In a letter addressed to shareholders dated June 9, community representatives emphasized that the sustainability and performance of a company should not be measured solely by profit but should also take into account the societal impact of its operations and investments. The letter specifically highlighted SMC’s subsidiary, SMC Global Power (SMCGP), as one of the country’s major coal financiers, whose projects have exposed local communities to substantial amounts of ash and emissions resulting from coal combustion.
These harmful effects have led to respiratory infections, skin diseases, pneumonia, diarrhea, and hypertension among the frontline communities in Limay, Bataan, during the construction and operation of a 600 megawatt (MW) coal facility in the province from 2010 to 2015.
Groups such as the Association of Small Farmers in Purok Ilaya based in Bacolod, the Buho Fisherfolks Association in Leyte, and worker coalitions including Sanlakas, Partidong Lakas ng Masa, and the Protect Verde Island Passage network supported the letter.
Additionally, SMC’s expansion in fossil gas has resulted in the destruction of a mangrove park in Navotas, Metro Manila, and posed a threat to marine life in the biodiverse Verde Island Passage. The letter also warned stockholders about the financial risks associated with continued investments in fossil fuels.
Despite the government’s recent renewal of the Malampaya gas-to-power project consortium, which will operate for another 15 years, SMC’s reliance on imported liquefied natural gas (LNG) following the depletion of domestic gas reserves by 2027 increases the company’s exposure to volatile global supply and prices.
Moreover, SMC’s energy subsidiary, as projected by a Bloomberg Intelligence report, may face a funding shortfall of up to US$1 billion for its annual lease with the government for existing coal plants.
Importing LNG also brings the risk of fuel spills, exemplified by the incident in Mindoro when an SMC subsidiary chartered a ship that sank and leaked industrial oil, causing damage to the livelihoods of coastal communities. SMC has denied ownership of the charter.
The letter emphasized the responsibility of SMC as a corporation to address concerns regarding its investments, considering the increasing risks and liabilities they pose.
Eco-Business said in a report it has sought a response from Top Frontier, the conglomerate and largest shareholder in SMC, but had not received a reply at the time of publication.
SMC, through its energy arm, currently controls 4,734 MW of the national installed capacity, with 2,926 MW fueled by coal. These coal investments have long been the subject of protests from frontline communities, civil society organizations, and various groups.
Despite opposition, SMC continues to propose and pursue new coal projects, such as the 1,200 MW Mariveles Power Generation Corp Coal Fired Power Plant. The company also leads the country’s projected fossil gas expansion, accounting for half of the planned gas development. SMC has eight gas-fired power plants in the pipeline, with a combined capacity of 14,100 MW, including the nearly-completed 1,750 MW gas-fired power plant by SMC Global Power Holdings Corp.’s subsidiary, Excellent Energy Resources Inc. (EERI).
These projects are spread across different locations in the Philippines, including Bataan, Batangas, Navotas, Negros Occidental, Cebu, Leyte, and Zamboanga.
The post Filipinos Call on San Miguel Corporation Stockholders to Divest from Fossil Fuels first appeared on Energy Asia.