MSMEs Boost Sustainability Efforts Despite Challenges

Dun & Bradstreet and SIDBI reported a steady SPeX score for Q2 2024, highlighting increased sustainability awareness among MSMEs. Environmental measures outpaced social and governance factors in focus. Dr. Arun Singh emphasized cost, capital, and benefit quantification challenges. Government initiatives may drive future improvements in sustainability adoption.

The Sustainability Perception Index (SPeX) for Q2 2024, released by Dun & Bradstreet and SIDBI, reveals a steady commitment to sustainability among MSMEs. These businesses have shown enhanced awareness, particularly towards environmental practices over social and governance factors, suggesting a shift in focus that benefits brand image and profitability.

Despite a steady overall SPeX score of 54, awareness captured a respectable rise with a score of 59. Implementation of sustainability measures significantly improved, driven by micro businesses. However, MSMEs face challenges like high costs and limited funding that hinder further advancements in their sustainability efforts.

Dr. Arun Singh of Dun & Bradstreet identified impediments in expanding sustainable practices, including cost issues and benefit quantification difficulties, and stressed the need for increased funding. Government plans, such as the Climate Finance Taxonomy, are expected to aid MSMEs in achieving energy efficiency and emission goals, fostering a greener enterprise ecosystem.

(With inputs from agencies.)