MSMEs & green finance: How fintechs can help small businesses adopt sustainability
Green finance is one of the most fundamental requirements to make MSMEs more climate-friendly. Many small and medium businesses face challenges in raising capital to run and expand their businesses. So their challenge becomes steeper when it comes to raising funds to invest in cleaner technologies, energy efficiency upgrades and sustainable business practices. But now, fintech is working on developing innovative solutions for MSMEs to make the transition to greener processes.
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“The solutions aim to simplify the process of integrating sustainable practices into business operations and make it easier to secure necessary funding. For instance, deep tier supply chain finance (DTSCF) leverages advanced data analytics to provide visibility into the environmental, social and governance (ESG) performance of supply chains. This allows MSMEs to effectively demonstrate their sustainability efforts and access preferential financing rates while mitigating reputational risks,” says Raja Debnath, Managing Director, Veefin Solutions.
Gurjodhpal Singh, CEO, Tide in India, says while MSMEs form the backbone of the country’s economy and are also important contributors to job creation, these businesses also have a significant environmental footprint, for which they require green finance.
“It is one of the most fundamental prerequisites for making MSMEs more climate-friendly. Many of these businesses face challenges in raising the capital needed to invest in cleaner technologies, energy
