MAS to Digitise ESG Credentials for MSMEs
The Monetary Authority of Singapore (MAS), in collaboration with the United Nations Development Programme (UNDP) and Global Legal Entity Identifier Foundation (GLEIF), has joined forces to develop digital Environmental, Social, and Governance (ESG) credentials specifically designed for micro, small, and medium-sized enterprises (MSMEs) worldwide.
This groundbreaking initiative, known as Project Savannah, aims to simplify the process of ESG reporting for MSMEs by leveraging digital advancements like MAS' Project Greenprint. The goal is to generate ESG data credentials that can be integrated into the Legal Entity Identifier (LEI) records of MSMEs.
By incorporating verified entity information and key ESG data into their LEI records, MSMEs will enhance their ability to access global financing and supply chain opportunities. This seamless transmission of information will enable them to strengthen partnerships and build trust with business associates around the world.
Under the framework of Project Savannah, MAS, UNDP, and GLEIF will provide support in three main areas: capacity building, simplified reporting, and accessible data. The UNDP and MAS will collaborate to enhance existing capacity-building initiatives that empower MSMEs to report ESG data effectively.
To facilitate simplified reporting, MAS will utilise the ESGenome disclosure platform, which is presently being co-piloted with the Singapore Exchange as part of MAS' Project Greenprint. This digital reporting tool will enable MSMEs to input the necessary ESG metrics required to generate their fundamental ESG credentials.
Furthermore, MSMEs will have access to ESG data through the Global LEI System, which offers a unified business identity for each enterprise. This integration ensures that an MSME's basic ESG credentials are universally recognised and accessible to authorised third parties across the globe. It also allows for greater visibility within the global supply chains in which they participate, fulfilling a crucial prerequisite for ESG reporting and analysis.
With the collaborative efforts of MAS, UNDP, and GLEIF through Project Savannah, MSMEs will benefit from simplified ESG reporting processes, increased visibility, and improved opportunities for growth and sustainability. This initiative represents a significant step forward in promoting responsible business practices on a global scale.
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Source: Singapore Business Review