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Advancing the green transition of SMEs : insights for SME development agencies to support sustainability practices and reporting
Small and Medium Enterprises (SMEs) are essential drivers of economic growth, innovation and employment across the globe. As efforts for the green transition accelerate, it is critical to ensure and facilitate the involvement of SMEs in driving the green transition.
Policymakers and government agencies with a mandate to support SME development can take various policy measures, including regulatory, awareness raising and financial approaches to support SMEs on their green transition journey. One dimension of such support includes the promotion of environmental, social and governance (ESG) practices and reporting among SMEs. Given their scale, SMEs often face challenges in adopting ESG practices. These challenges include limited understanding of the relevance of ESG concepts to their businesses, gaps in the skills needed to incorporate ESG principles in business operations and report on their ESG performance, and obstacles to accessing the practical tools and funding to initiate their ESG journey and support their transition to green business practices.
This report examines strategic programmes and initiatives across the ASEAN region designed to address these challenges and promote the adoption of ESG practices and reporting. It showcases selected case studies from ASEAN countries which illustrate various approaches and programmes supporting SMEs in their green transition, including roadshows, award schemes, digital platforms, capacity-building initiatives and financing mechanisms.
Policymakers and government agencies with a mandate to support SME development can take various policy measures, including regulatory, awareness raising and financial approaches to support SMEs on their green transition journey. One dimension of such support includes the promotion of environmental, social and governance (ESG) practices and reporting among SMEs. Given their scale, SMEs often face challenges in adopting ESG practices. These challenges include limited understanding of the relevance of ESG concepts to their businesses, gaps in the skills needed to incorporate ESG principles in business operations and report on their ESG performance, and obstacles to accessing the practical tools and funding to initiate their ESG journey and support their transition to green business practices.
This report examines strategic programmes and initiatives across the ASEAN region designed to address these challenges and promote the adoption of ESG practices and reporting. It showcases selected case studies from ASEAN countries which illustrate various approaches and programmes supporting SMEs in their green transition, including roadshows, award schemes, digital platforms, capacity-building initiatives and financing mechanisms.
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