A survey by the US-based global community of chief executives YPO on Wednesday highlighted that most small and medium-sized businesses (SMBs) do not measure their carbon emissions which could severely hamper their ability to contribute to tackling climate change. The YPO 2023 Global Impact Survey of over 700 members from 82 countries including India showed that only 4 per cent of its members surveyed were able to provide data on their companies’ direct and indirect emissions (scope 1-3).
Scope 1 are direct emissions owned or controlled by a company such as emissions from combustion in boilers, furnaces, vehicles, etc.
Scope 2 and 3 which are indirect emissions as a result of the activities from sources not owned or controlled by the company such as emission by generation of the electricity purchased and used at local or international sites, manufacturing goods purchased by the company, third party treatment of wastewater discharged, transportation and treatment of landfill waste generated by the company, etc.
According to the survey, only 5 per cent of respondents said they measure the level of their businesses’ renewable energy use, so they were not able to report progress on their energy transition.
Further, less than a third (28 per cent) of business leaders indicated that they have a social and environmental committee on their board of directors, while only 27 per cent reported having a full-time sustainability leadership position.
“Our members are at the core of many economies around the world and want to play their part in tackling the environmental emergency, but currently the majority simply don’t have the data and support to do so,” said Raymond Watt, Global Chairman, YPO.
Importantly, assessing the factors contributing to the perception of sustainability among MSMEs, a quarterly survey by Dun & Bradstreet and SIDBI in December last year had noted that only 25 per cent of MSMEs claim to have internal expertise or proficiency to implement sustainability measures in business. Moreover, only one in three MSMEs said they were aware of green financing and the impact of sustainability on improving brand image and their competitiveness.