The United Nations Development Programme (UNDP), Global Legal Entity Identifier Foundation (GLEIF) and Monetary Authority of Singapore (MAS) have signed a Statement of Intent to embark on a collaborative initiative to develop digital Environmental, Social and Governance (ESG) credentials for micro, small and medium-sized enterprises (MSMEs) worldwide.
Known as Project Savannah, this initiative aims to help simplify the ESG reporting process for MSMEs by leveraging on digital initiatives such as MAS’ Project Greenprint, to generate ESG data credentials that can be housed in MSMEs’ Legal Entity Identifier records. MSMEs will thus be able to transmit verified entity information and key ESG data to their business partners, strengthening their ability to gain access to global financing and supply chain opportunities.
MSMEs, which form key components of larger firms’ supply chains, require greater support to build up their sustainability capabilities and expertise. MSMEs face several challenges. Project Savannah aims to lower these barriers by establishing a common framework of ESG metrics for MSMEs to generate their basic sustainability credentials and commence their journey towards meeting the UN Sustainable Development Goals (SDGs).
The UNDP and MAS will review and enhance existing capacity-building initiatives to bolster MSMEs’ efforts to report ESG data. UNDP currently works with MSMEs across the world on digitalisation, access to financing and integration of impact management and measurement practices, and recognises the role that automated, data-driven digital solutions could play in driving scale.
