Asian SMEs Prioritise Climate Risk, Allot 20% to ESG
DBS's Catalysts of Sustainability e-book revealed that Asian companies prioritise climate risk management.
The survey, conducted in August 2022, involved 800 small- and medium-sized enterprises (SMEs) in six Asian markets.
According to the survey, 83% of the surveyed companies considered environmental, social, and governance (ESG) a top priority. They were also willing to devote around 20% of their budget to ESG initiatives within the next three years, a significant increase from the current 18%.
DBS stated that the purpose of the e-book is to identify the hurdles faced by SMEs in five critical industries and showcase potential opportunities to facilitate their transition to a low-carbon economy.
The surveyed industries were real estate, mobility, food and beverage (F&B)/hospitality, power, and agriculture. The majority of companies surveyed (90%) believed that environmental factors would have the most significant impact on their industries and thus allocated most of their sustainability investments to environmental projects. In addition, access to funding and knowledge capital were key factors motivating businesses to participate in environmental initiatives.
Koh Kar Siong, the Group Head of SME Banking, Institutional Banking Group at DBS, emphasised that SMEs have to prioritise projects with limited budgets and require access to the proper resources, technical knowledge, and tools to implement ESG initiatives successfully.
In this context, DBS and other partners can assist by identifying financing opportunities, supporting customers in adjusting their portfolios to align with climate targets and providing risk management solutions to help customers achieve their sustainability objectives.
Source: The Edge