Our Sustainability Governance Structure

SMC has established a comprehensive Sustainability Governance Structure to drive accountability, enhance decisionmaking, and ensure the effective execution of our sustainability agenda across all business units. Sustainability is embedded at every level of our organization, from the Board of Directors to the operational teams responsible for implementation.

Sustainability Oversight and Leadership

Our sustainability governance structure plays a critical role in making sure that San Miguel is pursuing a sustainable business model and making a positive impact on society and the environment.

The Board Sustainability Committee supports the Board and is responsible for reviewing and approving key sustainability initiatives, monitoring ESG performance, and ensuring compliance with sustainability regulations. The Committee Sustainability Office were the Corporate Affairs Office, Corporate Human Resources, Corporate Finance, Office of the General Counsel, and the San Miguel Foundation, together forming the SMC Sustainability Core Team. We are working on strengthening and automating our data collection and validation processes, using data analytics ensures that ESG considerations are embedded in business decisions and that sustainability efforts align with corporate priorities.

Executive Leadership and Management

The Chairman and CEO provides overall strategic leadership for SMC and ensures that sustainability remains a central pillar of the Company’s vision and direction. He champions sustainability at the highest level of the organization, aligning corporate growth with longterm ESG objectives. Supporting this role is the President and COO who oversees the dayto-day implementation of sustainability initiatives across business operations. The CEO and COO work closely with the Chief Sustainability Officer, who leads the Company’s overall sustainability strategy and execution, develops long-term ESG goals, defines performance metrics, and ensures consistent implementation across all business units.

The Corporate Sustainability Office (CSO) is responsible for ensuring that high-level sustainability strategies are translated into actionable programs by SMC’s various business units. This office collaborates with internal and external stakeholders, conducts ESG assessments, and ensures compliance with local and global reporting frameworks.

Operational Implementation and Business Unit Engagement

At the operational level, SMC has established Sustainability Working Teams, composed of sustainability leads and their respective support functions from each business unit. These teams are responsible for executing sustainability initiatives within their respective divisions, ensuring that ESG principles are deeply embedded into business operations.

Their key functions comprise of:

Strategy Formulation – Developing and refining sustainability strategies to ensure alignment with corporate objectives.
Strategy Execution – Mobilizing operational teams to undertake programs that align business operations with sustainability targets.
ESG Risk Management – Identifying and mitigating sustainability risks that could impact business continuity and growth.
Stakeholder Engagement – Coordinating with investors, regulators, customers, and communities to align sustainability initiatives with stakeholder expectations.
Sustainability Performance Monitoring – Tracking key ESG metrics, ensuring compliance with regulatory requirements, and continuously improving sustainability outcomes.

Among the Sustainability Working Teams is a Core Team that includes representatives from key corporate functions to ensure a holistic approach to sustainability. These include:

Corporate Human Resources – Drives sustainability-focused employee programs, workforce engagement, and diversity, equity, and inclusion (DEI) initiatives.
Corporate Affairs Office – Manages internal and external communications, public relations, and stakeholder engagement on sustainability issues.
San Miguel Foundation – Leads social responsibility and community development programs to uplift communities and enhance social impact.
Office of the General Counsel – Provides legal guidance on sustainability-related policies, regulatory compliance, risk management, and governance frameworks.
Corporate Procurement Group – Ensures the integration of responsible sourcing and sustainable procurement practices across the supply chain.
Finance and Treasury – Aligns sustainability initiatives with financial planning, investments, and sustainability-linked financing opportunities.

Strengthening Governance in 2024 and Beyond

Building on this governance structure, we continue to refine governance mechanisms to ensure that sustainability remains a core business priority. Through our governance framework, we ensure that sustainability is an integral part of how we create long-term value for all stakeholders.