MSME Sustainability Adoption Sees Promising Uptick, But Gaps Remain: Report

ENA MSME 2024-03-27 15:30:00 New Delhi, Mar 27 (KNN) The latest D&B Sustainability Perception Index (SPeX) shows a 5 per cent increase in the green pulse of Indian Micro, Small and Medium Enterprises (MSMEs) in the last quarter of 2023. This reflects improving willingness among MSMEs to adopt sustainability measures. However, significant gaps still exist between awareness and actual implementation expertise. The SPeX report, released jointly by Dun & Bradstreet and SIDBI, evaluates MSMEs' perception of sustainability across willingness, awareness and implementation. While willingness is increasing, the surveys consistently find that cost reduction remains the top motivator for MSMEs to go green. Arun Singh, Global Chief Economist at Dun & Bradstreet, highlighted, While 42 per cent of MSMEs acknowledge the various benefits of sustainability, only 12 per cent claim to have the requisite expertise to capitalise on these advantages. More than half of the surveyed MSMEs believe that sustainability adoption can lead to higher profitability and cost savings, but merely one in three foresees a positive impact on client retention and acquisition. The survey findings underscore that a widening gap exists between awareness and the available expertise to implement sustainable practices effectively. Nearly half of the MSMEs lack the expertise required for creating sustainable supply chains, increasing their vulnerability to supply chain disruptions. Environmental measures rank as the foremost priority for MSMEs, followed by social measures, while governance-related initiatives receive the lowest attention. Moreover, 27 per cent of respondents remain unaware of the green financing options available to them, and 57 per cent of small businesses do not know how to measure their carbon footprint or formulate strategies to achieve net zero emissions. In 2023, while 59 per cent of MSMEs took environment-related measures, only around 23 per cent implemented social and governance-related initiatives. Dr. R.K Singh, CGM at SIDBI, stated, While awareness and willingness remain high for larger MSMEs, the level of implementation needs a significant boost across all enterprise sizes. SIDBI, as a development financial institution for MSMEs, is committed to providing comprehensive support to MSMEs transitioning towards the adoption of clean, green, climate-friendly, and sustainable practices and investments, Singh added. The SPeX report underscores the growing intent among MSMEs to embrace sustainability but also highlights the need for concerted efforts to raise awareness, share expertise, and provide incentives to accelerate meaningful action on the ground. (KNN Bureau) 37182 https://knnindia.co.in/news/newsdetails/msme/msme-sustainability-adoption-sees-promising-uptick-but-gaps-remain-report 2024-03-27 15:30:00 knnindia.co.in MSME Sustainability Adoption Sees Promising Uptick, But Gaps Remain: Report