Catholic shareholders of San Miguel Corp. warn of possible divestment amid fossil fuel expansion

In time with the Season of Creation, and the 134th anniversary of San Miguel Corporation (SMC), its  Catholic shareholders and stakeholders released a statement calling for the company to divest from ‘dirty’ energy such as gas and coal  as the Church has committed to divest resources from fossil fuel companies as early as 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.  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,” said the statement.

It was signed by 72 Catholic dioceses and institutions  Out of this, six are shareholders of the company, with some belonging to the Top 100 Stockholders of San Miguel.

Five years ago, the Catholic Church pledged to move its resources away from coal-fired power plants, along with other destructive extractive projects.   Studies have shown that the Paris goal of keeping temperatures below 1.5C requires coal and gas phaseout in the power sector of the Philippines by 2035 and 2040 respectively. 

Bishop Gerardo Alminaza of the San Carlos Diocese, in support of the statement, said  “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. 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.”

Over the last 17 months, environmental advocates have been growing vocal regarding SMC’s involvement in the oil spill in Mindoro and Manila Bay, as well as the company’s other destructive projects such as the Pasig River Expressway and the Bulacan aerotropolis.

While San Miguel set a goal in 2018 to complete 10 gigawatts of renewable energy capacity by 2028,  the company is accelerating its build-out of fossil gas infrastructure. Particularly worrisome for communities opposing the projects, however, is that these facilities are being constructed in key biodiversity areas such as the Verde Island Passage in Batangas, the “center of the center of marine shore fish biodiversity” in the world, which could negatively impact the marine ecosystem and coastal residents and fisherfolk. 
 
“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. Studies show the Philippines has enough renewable energy resources to replace dirty energy and still meet energy demand.  It is commendable that San Miguel has already started on renewables–now we ask them to completely leave fossils in the past where they belong,” said Krishna Ariola, Climate and Energy Program Head of the Center for Energy, Ecology, and Development.

Before the 2025 deadline, Catholic shareholders, such as the Roman Catholic Bishop of Tuguegarao, have already divested from SMC.  Also, the Roman Catholic Archbishop of Manila has removed a huge chunk of its holdings in SMC and other fossil fuel-related companies.