The Inclusion Edge: How SM Investments Corporation Leverages Diversity to Fuel Sustainable Growth and Market Leadership

In the high-stakes arena of global capitalism, companies that fail to adapt to the evolving labor market are left behind. But SM Investments Corporation (SMIC), the Philippine conglomerate with a $30 billion market cap, is proving that inclusion isn't just a moral imperative—it's a financial multiplier. By weaving diversity and inclusion (D&I) into the DNA of its operations, SM has not only outperformed its peers but also positioned itself as a leader in a world where talent is the ultimate currency.

Let's start with the numbers. SM's Q1 2025 results tell a compelling story: PHP20.1 billion in consolidated net income, up 9% year-over-year, and PHP152 billion in revenues, a 6% increase. But what's driving this growth? The answer lies in SM's workforce. With 64% women in its 142,000-strong team and 58% of senior leaders being female, the company has cracked the code on gender equity. Compare this to the global average of just 28% female CEOs in Fortune 500 companies, and SM's strategy becomes a standout.

But SM isn't just ticking boxes for gender representation—it's building a machine. Its Equal Opportunity Policy and UN Women's Empowerment Principles (WEPs) alignment since 2022 aren't just buzzwords. They're tools for meritocracy. When 58% of your leaders are women, you're not just promoting equality; you're accessing a broader pool of talent, ideas, and decision-making styles. That's why SM's retail and property segments—driven by female-led teams—continue to outperform.

And let's talk about generational diversity. SM's workforce spans four generations: 47% Millennials and Gen X, 47% Gen Z, and 6% Baby Boomers. This isn't accidental—it's strategic. The company is leveraging the energy of Gen Z, the experience of Gen X, and the wisdom of Baby Boomers to create a culture of mentorship and innovation. A 2025 World Economic Forum report even cited generational diversity as a key driver of technological transformation and adaptive problem-solving. SM's recipe? Combine fresh thinking with seasoned expertise, and you get a recipe for resilience.

What's truly remarkable is how SM translates D&I into physical infrastructure. The company has 814 breastfeeding rooms, 787 PWD-friendly pathways, and 171 gender-neutral restrooms across its empire. These aren't just amenities—they're investments in employee retention and satisfaction. In a world where talent wars are intensifying, SM is future-proofing its workforce by ensuring that every employee feels seen, valued, and supported.

Third-party validation backs this up. SM's S&P Global ESG Score of 42/100 (as of October 2024) places it in the top 10% of its peer group. Morningstar Sustainalytics gave it an ESG Risk Rating of 13.3, putting it in the top 6.7% of its industry. These ratings matter. In a 2025 study by Harvard Business Review, companies with high ESG scores saw 3.2% higher annual returns compared to their low-ESG counterparts. SM's inclusion in the 2024 Asia Corporate Excellence and Sustainability Awards as a “Top Sustainability Advocate” isn't just a trophy—it's a signal to investors that the company is ahead of the curve.

But how does this translate to competitive advantage? Consider SM's SM Sustainability School, which trained 43,000 employees in 2024 on sustainability and innovation. This isn't just training—it's future-proofing. By upskilling its workforce in areas like green tech and digital infrastructure, SM is ensuring that its talent remains relevant in a world dominated by AI and climate change. The result? A 14% increase in net income for SM Retail in Q1 2025, driven by agile teams capable of pivoting to consumer trends.

And then there's the expansion strategy. SM isn't just building malls and banks—it's building ecosystems. By targeting underserved provincial markets in the Philippines, the company is tapping into new revenue streams while fostering economic inclusion. This dual focus on profit and purpose is what modern consumers—and investors—crave. In 2025, 72% of millennials and Gen Z investors prioritize ESG factors, per a McKinsey report. SM is speaking their language.

So where does this leave investors? SM's D&I-driven growth model is a masterclass in aligning values with value. The company's PHP110 billion 2025 expansion plan—focused on premium real estate, renewable energy, and digital infrastructure—should fuel further gains. With inflation easing and consumer confidence rebounding, SM is poised to capitalize on its inclusive culture to drive double-digit revenue growth.

For those still on the fence, consider this: SM's stock has outperformed the Philippine Stock Exchange index by 12% over the past three years, even as it invested heavily in D&I initiatives. That's not a coincidence—it's a formula.

In conclusion, SM Investments Corporation isn't just surviving in the global labor market; it's redefining it. By making inclusion a cornerstone of its strategy, the company is building a business that's resilient, innovative, and future-ready. For investors seeking long-term growth in a world increasingly defined by diversity, SM is a name to watch—and a stock to own.