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Green Alliance

Pioneering Sustainable Futures Through SM Prime and GUUN's Joint Venture


SM Prime has formed a strategic partnership with GUUN Co. Ltd (GUUN), securing a 70% stake in a new Philippine-based joint venture.

Based in Yokohama City, Japan, GUUN specializes in operating facilities focused on material recovery and recycling, as well as providing environmental solution services. Responding to an invitation from Cebu's government in 2014, GUUN launched its initiative to manufacture "fluff fuel", an alternative to fossil fuels made from non-recyclable waste materials. This initiative supports GUUN's vision of fostering a balance between environmental sustainability and societal well-being by crafting a brighter, more harmonious future.

In alignment with these environmental goals, SM Prime joined forces with GUUN to contribute to the establishment of efficient waste management and resource recovery infrastructure, adopting Japanese best practices. The collaboration seeks to mitigate the effects of landfill waste emanating from properties managed by SM Prime and others, enhancing the material recovery efforts led by Local Government Units (LGUs).

The innovative "fluff fuel" by GUUN is crafted from non-recyclable and difficult-to-process waste, undergoing meticulous sorting, selection, and formulation processes to conform to specific chemical standards. This fuel alternative is used in cement kilns and industrial boilers across various industries, including paper production and power generation. This method not only reduces waste sent to landfills in Japan but also repurposes waste into valuable fuel, providing waste pickers with formal employment opportunities as waste sorters.

The partnership endeavors to further investigate and implement various waste reduction and recovery methodologies, ensuring the optimal use of waste materials.

Hans Sy, Chairman of the Executive Committee at SM Prime Holdings, expressed enthusiasm about the collaboration with GUUN Japan, highlighting the venture's potential to harmonize environmental and societal needs in the Philippines through innovative waste management technology, which promises broad benefits for the communities SM Prime serves.

GUUN Co. Ltd.'s CEO, Shinji Fujieda, conveyed a strong commitment to making a significant contribution to the Philippines and to the enhancement of the resource circulation system, confident in the success of the partnership with SM Prime.

Toni Yulo-Loyzaga, Secretary of the Department of Environment and Natural Resources (DENR), stressed the critical role of such collaborations in promoting sustainable waste management practices. She highlighted the government's ongoing efforts to partner with the private sector and development partners to address solid waste management challenges, pointing out the importance of implementing large-scale, suitable technologies for waste segregation and processing as steps towards a circular economy. These partnerships are deemed essential in paving the way for a more sustainable future.


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