Catholic shareholders and stakeholders of San Miguel Corporation (SMC) have raised concerns over the company’s continued investments in fossil fuel projects.
In a statement released to coincide with SMC’s 134th anniversary and the Season of Creation, 72 Catholic dioceses and institutions, including six SMC shareholders, urged the corporation to divest from “dirty” energy sources such as coal and gas by 2025.
“We are aware that SMC continues to operate and expand its coal power plants without any plans to shut down these assets early in line with the requisites of keeping global temperatures below 1.5C,” the statement read.
“We, members of the Church, who have a responsibility towards our Common Home, are saddened that the resources we have entrusted to the company are being used to fuel such destruction,” it added.
The call to divest comes as part of the Catholic Church’s 2019 pledge to move resources away from coal-fired power plants and other environmentally destructive industries.
Research indicates that meeting the Paris Agreement’s goal of limiting global temperature rise to below 1.5°C will require the phase-out of coal and gas in the Philippines’ power sector by 2035 and 2040, respectively.
Bishop Gerardo Alminaza of San Carlos, vice president of Caritas Philippines supported the call, emphasizing the urgent moral responsibility to address the climate crisis.
“The moral obligation to put a stop to this worsening crisis is clearer than ever. It is always the poorest of the poor who bear the brunt of the impacts of climate change, from extreme heat and drought to intensifying storms,” the prelate said.
He added that unless companies like San Miguel cancel their fossil fuel projects still in the pipeline, “loss and damage from these extreme events will continue to worsen.”
Environmental advocates have criticized SMC’s involvement in several environmentally damaging projects, including the Mindoro and Manila Bay oil spills, the controversial Pasig River Expressway (PAREX), and the Bulacan aerotropolis.
Despite the company’s commitment in 2018 to reach 10 gigawatts of renewable energy capacity by 2028, SMC has accelerated its investments in fossil gas infrastructure.
Communities near the Verde Island Passage, a globally recognized marine biodiversity hotspot, have expressed concerns that these projects will negatively affect marine ecosystems and local livelihoods.
Krishna Ariola, Climate and Energy Program Head at the Center for Energy, Ecology, and Development (CEED), echoed the need for SMC to shift its priorities.
“While San Miguel stated that it has commitments to sustainability and net-zero by 2050, we need to see more concrete actions from them in the speed and scale needed in the middle of a crisis,” she said.
Research indicates that the Philippines possesses sufficient renewable energy resources to replace fossil fuels while still meeting the country’s energy needs, according to Ariola.
While acknowledging San Miguel’s progress in adopting renewable energy, stakeholders are urging the company to fully transition away from fossil fuels.
Several Catholic institutions, including the Roman Catholic Bishop of Tuguegarao, have already divested from SMC ahead of the 2025 deadline.
The Roman Catholic Archbishop of Manila has also reduced its holdings in the company and other fossil fuel-related industries.
San Miguel Corporation has yet to respond to the concerns raised by its shareholders and stakeholders.
