With the increasing number of businesses becoming sustainable, many small and medium enterprises (SMEs) in the Philippines have been left behind due to a lack of expertise and resources.
“Many probably don’t care much about sustainability reporting, and it’s easy to see why. Unlike large organizations, most SMEs lack the time, knowledge and resources to deal with issues as broad as climate change or social bias. Certified public accountants in public practice (ACPAPP)said in an article on SMEs’ journey to sustainability.
Furthermore, CAPPPA mentioned that the most popular way to present sustainability to SMEs is to promote it as a profitable opportunity rather than compliance.
“Practices such as energy conservation, waste recycling, use of energy-efficient equipment, solar energy and water-saving mechanisms help reduce costs and have been shown to be more cost-effective than usual energy use. SME accountants can use their role as financial advisors to encourage SMEs to adopt these practices by highlighting the quick gains a business can make over the years through efficiency,” the association said.
THE Securities and Exchange Commissioner, Javey Paul Francisco also affirmed on March 24 that sustainability reporting is not just about compliance. It is a long-term investment for business, society and the environment.
In 2022, the Philippine Statistics Authority (PSA) has registered 1,109,684 businesses in the country, of which 99.59% or 1,105,143 are categorized as micro, small and medium enterprises (MSMEs).
Message of public interest defined MSMEs into two categories based on size of assets and number of employees.
- Micro has one to nine employees with an asset size of up to P3,000,000,
- Small has between 10 and 99 employees and assets of P3,000,001 to P15,000,000
- Medium has between 100 and 199 employees and assets of P15,000,001 to P100,000,000.
“Philippine businesses and supply chains are under increasing pressure to adopt sustainability reporting and full supply chain transparency,” the Global Compact Network Philippines (GCNP) and STACS said in a statement press release last Wednesday.
To achieve success in ensuring business sustainability and building relationships in local businesses and SMEs in the supply chain, GCNP worked with STACS, an Asian environmental, social and governance data and technology solutions company ( ESG), to create the ESGpedia platform to facilitate the fight for companies. .
Integrating the digitized Sustainability Report Form (SuRe Form) into ESGpedia would help entrepreneurs through a digital assessment with guidance notes for additional information on the requirements of the said report.
“Digital enablement is essential to help businesses and SMEs adapt to evolving ESG regulations and maintain their competitiveness in the global supply chain,” said Benjamin Soh, Managing Director of STACS ESGpedia.
Later this year, the Securities and Exchange Commission (SEC) will publish Form SuRe and implement reporting, planned for 2025. – Almira Louise S. Martinez
