Even though MSMEs are making progress in meeting new sustainability requirements, many of them continue to face practical challenges in making inroads. This includes the lack of capacity for dedicated positions to oversee the adoption of more ESG practices due to lean, multi-functional teams.
About 50% of the micro-, small- and medium-sized enterprises (MSMEs) in Southeast Asia are surveying their plan to increase their environmental, social and governance (ESG) budgets by 2027, according to a new report released by the Centre for Impact Investing and Practices (CIIP).
However, many have cited high upfront costs as a deterrent, adds the report, titled “Transforming for Sustainability: Driving Impact and Value through Supply Chain Action”. The report, launched at Ecosperity Week’s impact investing roundtable 2025 on May 7, surveyed over 3,500 MSMEs across Indonesia, Malaysia, Singapore and Vietnam. The report also interviewed 85 organisations across Asia, including multinational corporations (MNCs), solution providers and ecosystem enablers.
