A significant number of micro, small and medium enterprises (MSMEs) are not aware of environmental, social or corporate governance (ESG), according to a report from the APEC Business Advisor Council (ABAC).
The report ABAC MSME ESG and Sustainability Framework and Report was presented by ABAC Brunei during the ABAC Meeting in San Francisco, United States recently.
The report also noted that even if the MSMEs were aware of ESG, they do not have a clear understanding of how to adopt ESG and sustainability practices.
ABAC Brunei said that the report offered a simplified framework that provides a starting point for MSMEs to integrate ESG considerations into their operations without overwhelming complexity.
“MSMEs can gradually expand their efforts as they become more comfortable with ESG practices and realise the benefits of sustainability,” according to ABAC Brunei in a statement.
Meanwhile, ABAC has also issued standalone statements on two landmark issues – artificial intelligence (AI) and the climate response.
Climate was also on the agenda during an ABAC engagement with APEC Finance Ministers, hosted by Treasury Secretary Janet Yellen.
“Financing is a critical lever in the transition to a low-carbon economy, and one where the private sector can be a key partner. Massive investment is needed – but it is still cheaper than the alternative,” said ABAC Chair Dominic Ng of East-West Bank.
