- The MSME S-Card, an initiative incubated under Programme Sirius, will provide MSMEs with a streamlined digital solution to build validated ESG credentials towards more sustainable practices and access new economic opportunities
- Ant International’s ecosystem partner, GCash from the Philippines will be the pilot participant, while Gprnt will serve as technology partner, jointly collaborating to customise the scorecard based on the needs of their MSME customers to assess, track and evaluate their ESG impact
Singapore, November 11, 2024 – Ant International, a global digital payment and financial services leader, in collaboration with its industry partners, are developing an industry-first MSME Sustainability Impact Scorecard (“MSME S-Card”), a digital solution designed to empower Micro, Small, and Medium Enterprises (MSMEs) in Asia to track their environmental and social impact in a verified and convenient way based on applicable standards and requirements, to better integrate sustainability into their business operations.
In order to create and verify MSME ESG credentials, the MSME S-Card automates the gathering of crucial data within current business processes and digital wallets, utilising Ant International’s expertise and connections in digital innovation and platforms. The scorecard provides MSMEs with actionable insights for aligning with sustainability standards, boosting their ESG credibility, drawing in impact-focused investors, and promoting long-term sustainable growth in line with global market expectations by integrating ESG metrics in this simplified and digital manner.
Leiming Chen, Chief Sustainability Officer, Ant International, stated, “One of the key priorities when we launched Programme Sirius earlier this year was to address the critical challenge of sustainability inclusion for MSMEs, who are being left behind in the global shift towards sustainability, missing out on new opportunities. We hope that the MSME S-Card, the first initiative under Programme Sirius, will offer a benchmark for MSMEs and financial institutions to work together to support MSMEs’ sustainability journey, enabling them to contribute to a shared vision for a better future while gaining practical benefits from sustainable payments, ESG reporting, and green financing.”
In March 2024, Ant International unveiled Programme Sirius (Sustainability Innovation for Regenerative & Inclusive Purpose) – supported by partners like the IFC, Gprnt and 13 Asia-Pacific fintech leaders at its inaugural launch – an industry-led knowledge initiative to empower MSMEs in their transition towards sustainability, in line with the United Nations Sustainable Development Goals.
In addition to sharing best practices and community outreach in promoting MSME sustainability with Ant International, Gprnt, as Programme Sirius’ technology partner, will expand on its experience using technology to streamline the collection and accessibility of environmental, social, and governance (ESG) data. In addition to serving as a data reporting partner, Gprnt—the first regulator-launched digital platform for ESG reporting and data in history—will also increase transparency and assist MSMEs in their attempts to harmonise with relevant regional standards.
Lionel Wong, Executive Director, Gprnt, commented, “We are excited to reaffirm our partnership with Ant International to collaborate on Programme Sirius, an important initiative for promulgating MSMEs’ access to solutions that help them commence their sustainability journeys. The launch of the MSME S-Card could not have come at a better time, happening in lockstep with Gprnt’s launch of its own automated Disclosure and Marketplace tools, which are designed to simplify sustainability reporting for all businesses and connect them to an ecosystem of solutions to support their financing and decarbonisation needs.”
Addressing challenges MSMEs face in adopting sustainable practices
Accounting for 90% of businesses and over half of Asia’s workforce, MSMEs are vital to the region’s economy. Yet, they often face obstacles in adopting sustainable practices, including:
- Lack of Knowledge: Unlike large corporations driven by ESG reporting requirements, MSMEs often lack awareness of ESG practices, which limits their ability to engage in sustainability initiatives. This knowledge gap is particularly notable in developing countries, where access to information and resources is limited.
- Limited Resources: MSMEs face resource and financial barriers that make implementing sustainability practices difficult. While some may adopt simpler, green-certified solutions—such as solar-powered lighting or energy-efficient equipment—these options often come with high upfront costs. Many MSMEs, as part of the global value chain, are also increasingly requested to meet the complex sustainability demands of larger corporations.
- Scarcity of Tailored Financial Products: Most green finance solutions offered by banks and financial institutions are geared toward larger corporations, leaving MSMEs underserved. These smaller enterprises require financing that aligns with their shorter investment horizons, smaller capital needs, and specific challenges. Without such tailored financial support, MSMEs struggle to fund their sustainable transitions effectively.
Leveraging digital platforms for seamless MSME reporting and transformation
With their local knowledge and smooth data connectivity, Ant International’s worldwide digital platform ecosystem partners are essential in helping MSMEs. By facilitating sustainable reporting through collaborations such as with pilot participant GCash from the Philippines, who will further tailor the scorecard criteria according to local requirements, the MSME S-Card closes the gap between financial institutions and small enterprises.
Winsley Bangit, VP for New Businesses, GCash, added, “In the Philippines, MSMEs make up 99.5% of all businesses. However, many remain informal and lack access to financing and growth support, limiting their potential for resilience and innovation. GCash’s partnerships with global leaders like Ant International will help enable MSMEs to access both capital and practical support, promoting responsible growth in line with GCash’s purpose to uplift Filipinos’ everyday lives. Together, we’ll create a synergistic ecosystem combining capital, technology, and sustainability expertise.”
As an inaugural member of Programme Sirius, GCash has become a champion of financial inclusion in the Philippines economy by championing mobile financial services. Beyond financial inclusion, GCash is also committed to environmental and social sustainability, making it a leader in sustainable fintech globally. Through its GForest initiative, GCash has mobilised 17 million users to plant over 2.8 million trees, reducing carbon emissions by 138,000 metric tons. This reforestation effort not only contributes to environmental conservation but also provides livelihoods for over 8,600 farmers.
