ESG boost for small businesses

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Experts opine that SMEs will need to start integrating ESG into their business model to remain at the forefront in the longer term.

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WHILE large corporates have begun making net-zero emissions pledges and are taking active steps to adopt environmental, social and governance standards, small businesses are still trying to grasp its significance on their operations.

He cites an example of a smart manufacturing solution, particularly, asset tagging sensors. These sensors enable companies to monitor the location and movement of their assets. As such, these solutions not only align with companies’ efforts to digitalise but also correspond with the ESG values. Even larger corporates, Pradeeban points out, are adopting ESG only because they have institutional investors who are ESG-aware and are pushing for it.

This shows a lack of understanding of an ESG policy and hence, the lack of a structured approach in developing an ESG strategy.

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