Small and medium-sized enterprises (SMEs) are aware of the benefits of transitioning to more sustainable business models, according to a DBS and Bloomberg Media Studios survey of 800+ SMEs in six Asian markets conducted in August.
SMEs in India led their regional counterparts in Asia, with more than nine in ten rating ESG as a high priority for their business. The survey finds that SMEs in India contend that an ESG practice could increase their competitive edge, boost the company’s reputation and attract investors; a new business model influenced by customer demand and an ethical choice driven by social obligation.
About 92% of Indian SME business leaders in the survey stated ESG is a high priority for their business compared to 83% across Asia. Moreover, 81% consider government schemes or financial institutions’ incentives as the second most crucial factor influencing ESG adoption.
Niraj Mittal, Managing Director and Head, Institutional Banking Group, DBS Bank India, said “There is a desire and intent from SMEs to transition their business models to meet the responsibility standards demanded by the market. At DBS, we stand ready to support SMEs across Asia in their decarbonisation efforts through financing and advisory services by helping them to plug into the right ecosystems and take advantage of the opportunities around sustainability.”