SME inclusion in climate conversations

🌍Read the Asian Development Bank Institute (ADBI) Policy Brief (Sept 2025) on SME Finance for Promoting Green Transition. 👉 The (ADBI) highlights how SMEs—responsible for nearly 40% of global emissions—must be central to the green transition, but face financial and structural hurdles that limit their potential. 💡 Key Takeaways 🔸 SMEs at risk – Climate change threatens their assets, supply chains, and competitiveness. 🔸 Green opportunities – Sustainable business models open access to new markets and build customer trust. 🔸 Barriers persist – High upfront costs, limited credit, complex reporting, and fragmented standards hinder action. 🔸 Finance solutions – Governments should expand concessional loans, credit guarantees, and ESG bonds, following examples from Korea’s IBK, KDB, and KODIT. 🔸 Simplify reporting – Introduce SME-specific sustainability templates and digital tools to reduce compliance burdens. 🔸 Capacity support – Technical assistance and training can help SMEs navigate green finance and disclosure systems. 🚀 ADBI calls for coordinated financial and policy frameworks to empower SMEs as drivers of climate resilience and sustainable growth. 💭 What’s one change your government or institution could make to help SMEs lead the green transition? #GreenFinance #SMEs #Sustainability #ClimateAction #ESG

On Friday, I had a fruitful visit to Ahold Delhaize and its Climate Hub. That hub serves as an online platform where supermarket suppliers, including small suppliers of breakfast cereals and soap products, can learn how to tackle their carbon emissions and team up to navigate the process of addressing and reporting them. Companies are not always keen on reporting requirements and yet reporting on emissions is essential to measure the climate problem. It’s important to be transparent about your impact on planet and environment. But reporting should not be done in a way that is overly complicated for business, especially SMEs, in their operations. We need to hear and understand what SMEs as the ones taking part in the Climate Hub need. During the visit, CEO Frans Muller and representatives from Ahold Delhaize suppliers explained how the supply chains work together on sustainability reporting and how they, by trial-and-error, come to the most practical and effective solutions. In July, President Ursula von der Leyen presented her Political Guidelines for the next Commission. She expects each Commissioner to find new ways to engage with stakeholders on reducing administrative burden and simplifying implementation. We must strive to better reflect market realities on the ground and do this before shaping and implementing our rules. So today, we agreed to testcase the expected new way of cooperating in implementation. Ahold Delhaize will share the best practices from their Climate Hub. Easier and simpler implementation for SMEs are the shared objectives - all whilst keeping the climate ambition. EU staff will be available for dialogue and exchanges. The Commission will give feedback how the lessons contributed to its initiatives on burden reduction - including the voluntary SME sustainability reporting standards planned for publication in 2025. This is a good initiative to support suppliers in their journey to reduce emissions. We invite more SMEs to participate in this Hub that is relevant for our supermarkets and our essential food supply chain. Other companies in other sectors are also invited to see if we can scale up this new rule-making approach. We need fresh ways to implement our rules: not just top-down, but more bottom-up from practices on the ground, so that our joint journey to reduce emissions also generates prosperity and growth.

Reflecting on the recent 𝗔𝗦𝗘𝗔𝗡 𝗺𝗲𝗲𝘁𝗶𝗻𝗴𝘀 held in Kuala Lumpur last week, one thing is clear—sustainability isn’t just a buzzword. It’s a growing expectation, and ASEAN is stepping up. I’m particularly encouraged by the launch of the ASEAN Simplified ESG Disclosure Guide (ASEDG)—a timely and strategic output by the ASEAN Capital Markets Forum (ACMF), led by Securities Commission Malaysia during its 2025 Chairmanship. 🌱 🌐 𝗪𝗵𝗮𝘁 𝗶𝘀 𝗶𝘁? ASEDG is 𝘢 𝘷𝘰𝘭𝘶𝘯𝘵𝘢𝘳𝘺 𝘌𝘚𝘎 𝘥𝘪𝘴𝘤𝘭𝘰𝘴𝘶𝘳𝘦 𝘧𝘳𝘢𝘮𝘦𝘸𝘰𝘳𝘬 specifically designed for SMEs in supply chains, demystifying ESG disclosures and aligning them with global standards like GRI, ISSB, CDP, and IFRS S1 & S2ASEAN. 𝗪𝗵𝗮𝘁 𝘄𝗲 𝗰𝗮𝗻 𝗹𝗲𝗮𝗿𝗻 𝗳𝗿𝗼𝗺 𝗶𝘁💡 1. Practicality over perfection – ESG maturity is recognized through basic, intermediate, and advanced indicators. 2. One size doesn’t fit all – Materiality is contextual, allowing companies to assess what’s relevant. 3. Bridging the gap – It simplifies reporting so SMEs aren’t left behind in the sustainability transition. 4. Regional coherence – It brings ASEAN closer in ESG alignment, crucial for supply chain integrity. 5. Future-focused – It’s Version 1, with plans to evolve as global standards and local needs progress. 𝗪𝗵𝗼 𝘄𝗶𝗹𝗹 𝗯𝗲𝗻𝗲𝗳𝗶𝘁? ◾ SMEs seeking financing, procurement inclusion, or incentive eligibility ◾ Larger corporations and financial institutions aiming to set consistent ESG expectations ◾ Policymakers and ecosystem enablers trying to operationalise ESG at scale across ASEAN As someone who works across ESG implementation and planetary health in ASEAN, I see this guide as more than a reporting tool—it’s a regional signal for action. 🍃 🫡 Let’s use this momentum to build capacity, create clarity, and reduce greenwashing risk—especially for our SMEs. Read Article below 👇 #ASEDG #ASEANESG #ESGdisclosure #supplychainresilience #planetaryhealth #planetaryboundaries #sustainability #ClimateAction #carbonfootprint #NetZero #ClimateEmergency #SDG #ESG #GHG #netzero

SMEs, the bar for transparency is rising—and if you are off the hook you may risk lower credit rating. Danish FSA propose to make climate-risk mandatory compliance for Banks! .. Denmark is not the only country acknowledging that climate change poses a risk to financial established systems. The EU is also raising the bar for corporate transparency and risk coverage. While SMEs are not directly subject to the Corporate Sustainability Reporting Directive (CSRD), the pressure is growing to provide structured ESG data. This time is it not private sector push, but a financial sector push. Public sector will follow. The Danish Financial Supervisory Authority (FSA) recently proposed the inclusion of climate risk scenarios into credit valuations by banks. The implication is clear: SMEs must now address and disclose climate-related risks to maintain creditworthiness and financial credibility. This marks the beginning of capital preservation initiatives from financial institutions. Go ensure that the comprehensive module is covered by your corporate reports! To help SMEs respond effectively, the European Commission introduced the Voluntary SME Standard (VSME)—a proportional, relevant, and practical sustainability reporting framework designed specifically for SMEs. VSME recognizes the resource constraints of smaller enterprises and provides a structured approach to sustainability aligned with EU reporting logic. It offers a common language between SMEs and shareholders, empowering businesses to demonstrate credibility, build resilience, and strengthen relationships across the value chain. The VSME is also ensuring that the SME is covering their risks and that their business partners are informed. If you’re a small business aiming to strengthen stakeholder trust, meet non-financial risk expectations, and future-proof your operations, the VSME is your roadmap (or at least youe way to begin the sustainability journey on the corporate level. I see this as more than compliance. It’s a roadmap to resilience, risk coverage, business partner dialouge and strategic insights for CapEx planning and investments: a. Start with clear data collection b. Understand why your data matters c. Link ESG to your business strategy d. Set goals, track progress, and show impact Start today. Your peers may end up getting a better credit valuation and hence, lower cost for loans.......