Half of MSMEs Want Greenbacks for Green: SIDBI Report
The Sustainability Perception Index (SPeX) has been reported at 46 for April–June 2023. This is the same level as it was in October–December 2022, but lower than the peak of 54 in January–March 2023.
The SPeX is a measure of the awareness, willingness, and implementation of sustainability measures by Micro, Small and Medium Enterprises (MSMEs). The decline in the index in the April–June quarter is due to a decrease in all three dimensions.
Awareness scores fell by 11%, willingness scores by 17%, and implementation scores by 20%.
This decline is due to a lack of knowledge about sustainability measures and a lack of internal expertise in sustainability among MSMEs.
Eight out of 10 MSMEs need to improve their awareness of sustainability measures.
Dr. Arun Singh, Global Chief Economist at Dun & Bradstreet, said that it is encouraging that 80% of MSMEs recognise the importance of raising awareness about sustainability measures. However, he said policymakers need to provide financial incentives and tax benefits to MSMEs that implement eco-friendly practices.
He also said that creating accessible training programmes and workshops focused on sustainable business strategies would empower MSMEs to make informed decisions that positively impact the environment and their bottom line.
Dr. R.K Singh, CGM at SIDBI, said that the SPeX survey clearly indicates that there is a need to increase awareness and willingness among MSMEs about sustainable development.
He said that while awareness and willingness are high for larger companies, the level of implementation remains low across all sizes of businesses. He said that it is important for MSMEs to understand the benefits of adopting sustainable initiatives as part of their business strategy.
The SPeX report also found that MSMEs face a pressing need for technical support and capital to embrace sustainability initiatives. The report also found that cost reductions via efficiency gains and external factors are major drivers of MSMEs' sustainability actions.
The report also found that a positive impact on revenue and employee morale are the top expected positive outcomes of MSMEs' sustainability actions.
Around 50% of MSMEs claimed they use energy-efficient and climate-friendly equipment and reduce, reuse and recycle emissions, waste, water, and energy. However, only 33% stated that they have prompt and full compliance with regulations related to sustainability, while only 38% source from ethical suppliers.
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Source: Ten News.in