99% of Indonesian SMEs Prioritize ESG Aspects

Suara.com – DBS Bank together with Bloomberg conducted a survey entitled Catalysts of Sustainability to more than 800 small and medium enterprises (SMEs) in Indonesia, Singapore, China, Taiwan, Hong Kong and India to see sustainability trends in each country. Experiencing rapid growth, this survey found Environmental, Social, and Governance (ESG) to be a priority for 83% of companies in Asia.

Environmental factors have such a powerful impact on industry trends. However, when juxtaposed with social factors (Social) and corporate governance (Governance), both have a slightly greater influence in the process of making business decisions.

In addition, three out of four business actors feel that the influence of global value chains such as vendors, suppliers and customers is an important motivation for adopting ESG.

Chief Sustainability Officer of DBS Bank, Helge Muenkel, said, “If companies don’t transition to lower-carbon societies, they have a lot to risk. Some of it is assets getting displaced and products losing relevance.”

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99% of SMEs in Indonesia see ESG as a priority for their business, much higher than the average score in Asia (83%). They claim to present products/processes that are based on aspects of sustainability.

However, 59% of SMEs encounter obstacles in balancing ESG with business growth and business operations transition. Then, the issue of funding and technical guidance are some of the crucial things that companies need when implementing ESG.

Regardless of the various challenges that exist, business leaders and decision makers continue to respond positively to the adoption of sustainability aspects in the business sector.

“We are aware that SMEs face many obstacles, especially when transitioning to a more sustainable business and it is very important for SMEs to make it through. DBS is ready to assist SMEs in going through the decarbonization process with funding, and act as advisors so they can be connected to the right ecosystem across Asia,” said Joyce Tee, Group Head, SME Banking, DBS Bank.

DBS Bank itself ranks in the top four as a regional bank that provides products or services that are in line with ESG.

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Source: Suara.com – Berita Terbaru Bisnis, Ekonomi, Investasi Indonesia by www.suara.com.

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