An e-book by DBS, the Catalysts of Sustainability, found that managing climate risk remains a priority among Asian companies. The findings were a result of an inaugural survey conducted among 800 small- and medium-sized enterprises (SMEs) across six markets in Asia in August 2022.
In the book, studies found that 83% of companies polled viewed environmental, social and governance (ESG) as a high priority and were willing to allocate about 20% of their budget within the next three years towards ESG projects. The figure was up from 18% currently.
According to DBS, the e-book aims to identify the challenges that SMEs encounter across five key industries and highlight opportunities that can enable their shift to a low-carbon economy.
The industries are real estate, mobility, food and beverage (F&B)/hospitality, power and agriculture.
Among the companies surveyed, environmental projects will take up a bulk of their sustainability investments as 90% of them believe that environmental factors will have the biggest impact on their respective industries. Access to funding and knowledge capital were also important drivers for businesses to engage in environmental initiatives.
“Access to the right resources, technical know-how and tools to deploy ESG initiatives are especially essential for SMEs, who face the constant challenge of having to prioritise projects on tighter budgets. This is where partners, like DBS, can play a role – by working with customers to identify financing opportunities, help them adjust their portfolios to align with climate targets; and match appropriate risk management principles to help customers achieve their sustainability goals,” says Koh Kar Siong, group head of SME banking, institutional banking group, DBS.
