Why SMEs need to embrace sustainability

economictimes.indiatimes.com:

sustainability. Therefore, it’s imperative that India’s small businesses, which contribute 27% to the country’s GDP, must pay attention to this agenda.

Arpita Mukherjee, Professor, ICRIER, says that SMEs are increasingly participating in trade and are trying to link to their customers around the world. “They are becoming increasingly aware that to grow and participate in trade they have to embrace sustainability.

Hence, as environmental, social and governance (ESG) reporting is becoming a need of the hour, SMEs are aware of it and want to align their operations to comply with local and international laws,” she says. According to a survey conducted by DBS and Bloomberg last year, 92% of Indian SME business leaders view ESG as an important requirement for their company.

An equal percentage of Indian SMEs (surpassing the 80% average in Asia) also recognised the significant benefits of the global value chain — encompassing vendors, suppliers and customers — as a strong driving force for greater ESG adoption.Sudarshan Chari, Executive Director & Head of SME Banking, DBS Bank India, says today, SMEs can implement various energy efficiency measures, from using renewable sources of energy to installing smart meters. “These efforts can help them become attractive options for the global supply chain that needs vendors to abide with sustainable sourcing principles.

Additionally, monitoring performance on sustainability metrics and reporting progress to stakeholders enables SMEs to effectively identify opportunities for improvement and benchmark themselves with global peers,” he says. SMEs can also seek support from industry associations, supplier networks and financial experts which can help expedite the adoption of sustainable