The latest quarterly survey on Wednesday by analytics firm Dun & Bradstreet India and SIDBI, which examines the assessment of factors contributing to the perception of sustainability in MSMEs, noted that only 25 per cent of MSMEs claim to have internal expertise or proficiency to implement sustainability measures in business. Across three consecutive surveys, MSMEs have maintained that technical expertise and capital availability are their primary challenges in implementing sustainability initiatives.
Moreover, only one in three MSMEs part of the survey said they are aware of green financing and the impact of sustainability on improving brand image and their competitiveness, noted the SPeX (Sustainability Perception Index) report for the July-September quarter of 2023.
“The apparent gap between available support (from agencies and the government) and sustainability adoption by MSMEs needs to be bridged, especially given the national and international efforts towards achieving ‘net-zero’ emissions,” said Arun Singh, Global Chief Economist, Dun & Bradstreet.
While the overall awareness and willingness to implement sustainability measures among MSMEs remain high, compliance ranks low in the list of MSMEs’ priorities. The survey noted that only 17 per cent of MSMEs have initiated sustainability-related policies and procedures while only 23 per cent claimed prompt and full compliance with sustainability regulations.
Further, only two in five MSMEs said that sustainability initiatives have positively contributed to retaining clients.
RK Singh, CGM, SIDBI said the survey indicates that there is a continued need to augment the capacity building efforts on demand, that is, enterprise side. “While awareness and willingness remain high for MSMEs on the top of the pyramid, the level of implementation needs a fillip across all sizes of enterprises. Thus, it is important to understand how an enterprise leadership understands the potential benefits of implementing sustainable, clean, green, and environment-friendly initiatives,” he said.
The survey evaluates the perception of sustainability among MSMEs across three key dimensions: willingness, awareness, and implementation. The index ranges from 0 to 100, with an increase in index value signifying an enhanced perception of sustainability among MSMEs while a decrease possibly indicating challenges or a decline in awareness, willingness, or implementation.
For the September quarter, the index improved to 48 from 46 in the June quarter, indicating improvement in sustainability implementation by MSMEs.
SIDBI currently operates multiple programmes to support sustainability measures of MSMEs around energy efficiency, sustainable commuting, solar adoption, waste management and environment-friendly technologies and processes under its Panchtatva mission for small businesses.