Sustainability Awareness Rises Among MSMEs: SPeX Report

ENA MSME 2024-10-11 16:26:16 New Delhi, Oct 11 (KNN) In a significant development for the micro, small, and medium enterprise (MSME) sector, the latest Sustainability Perception Index (SPeX) report reveals a marked increase in sustainability awareness and implementation among these businesses. The quarterly index, jointly produced by Dun & Bradstreet and SIDBI, shows a notable shift towards environmental measures in the second quarter of 2024. The SPeX, which evaluates MSMEs' sustainability perceptions across willingness, awareness, and implementation dimensions, registered an overall score of 54 out of 100 for the June quarter. This represents a substantial improvement from the 46 points recorded in the same quarter last year. The awareness dimension saw a 9 percent increase to 59, while implementation surged by 35 percent to 49. However, the willingness component experienced a 17 percent decline, settling at 51. Micro businesses emerged as frontrunners in adopting sustainability practices, with significant increases reported in areas such as sustainability training, compliance, ethical sourcing, and recycling. This trend underscores a growing recognition among smaller enterprises of the importance of sustainable business practices. Arun Singh, Global Chief Economist, Dun & Bradstreet, highlighted the increasing acknowledgment among MSMEs of the profitability and cost-saving potential inherent in sustainable practices. However, he also pointed out persistent challenges, including high implementation costs, limited access to capital, and difficulties in quantifying benefits. Singh emphasised the need for reducing adoption costs and increasing funding, particularly for cleaner production and recycling technologies. The index further revealed that a significant majority of medium and small enterprises recognise the positive impact of sustainability efforts on brand image and stakeholder appeal. Specifically, 89 percent believed such efforts could improve brand image, while 88 percent saw potential for enhanced stakeholder appeal. Additionally, 84 percent of respondents acknowledged the potential for increased profitability, though fewer (78 percent) were confident about cost reduction benefits. R.K Singh, Chief General Manager, SIDBI, interpreted the June survey results as indicative of a pressing need to scale up capacity building, orientation, and awareness efforts across the MSME sector. He stressed the importance of bolstering implementation levels across enterprises of all sizes. This latest SPeX report underscores the evolving landscape of sustainability in the MSME sector, highlighting both progress and areas requiring further attention and support. (KNN Bureau) 39574 https://knnindia.co.in/news/newsdetails/msme/sustainability-awareness-rises-among-msmes-spex-report 2024-10-11 16:26:16 knnindia.co.in Sustainability Awareness Rises Among MSMEs: SPeX Report