Only 25% MSMEs Claim Internal Proficiency – SIDBI – D&B SPeX50

The SIDBI - D&B Sustainability Perception Index (SPeX), also known as the "green pulse indicator," increased by 4.3% to 48 during the July-September 2023 period from the previous quarter. 

Dun & Bradstreet, a leading global provider of business decisioning data and analytics, along with SIDBI, released SPeX for July – September 2023, which evaluates the perception of sustainability among MSMEs across three key dimensions: willingness, awareness, and implementation. The SPeX scale ranges from 0 to 100, with an increase in index value signifying an enhanced perception of sustainability. The overall SPeX value reflects changes within these dimensions, providing insights into how MSMEs understand, are willing to engage with, and implement sustainability measures. An increase in SPeX suggests a positive shift in MSMEs' perceptions and practices related to sustainability.  A decrease might indicate challenges or a decline in awareness, willingness, or implementation.

Arun Singh, Global Chief Economist, Dun & Bradstreet, said, “Even as MSMEs claim sustainability initiatives have positively contributed to retaining clients, their implementation remains low. Our survey indicates that limited internal implementation capabilities, lack of technical know-how and capital availability are the primary challenges in implementing sustainability initiatives. The apparent gap between available support (from agencies and the government) and sustainability adoption by MSMEs needs to be bridged, especially given the national and international efforts towards achieving 'net-zero' emissions.”

Dr. R.K Singh, CGM, SIDBI stated, “SIDBI - D&B Sustainability Perception Index Survey, July – September 2023 clearly indicates that there is a continued need to augment the capacity building efforts on demand i.e. enterprise side. While awareness and willingness remain high for MSMEs on the top of the pyramid, the level of implementation needs a fillip across all sizes of enterprises. Thus, it is important to understand how an enterprise leadership understands the potential benefits of implementing sustainable, clean, green, and environment friendly initiatives. SIDBI is committed to provide all out support to MSMEs moving towards climate, sustainability & green investments. It’s Panchtatva missions viz. Energy Efficiency, Sustainable Commuting (EV Adoption), Solar, Waste2Envttaste (all type of waste management including MSW, CBG, etc.) and Nurture t Nature (developing a trusted, validated stack of clean, green, environment friendly technologies / processes) are oriented to enhance the acceptability amongst MSMEs to Go Green and also adopt E&S practices. SPeX is poised to evolve as a tracker of MSMEs’ intent and preparedness to “Go Green”. We are also reciprocating the aspirations of MSMEs through financial products coupled with digital tools and building lenders capacity. As SPeX matures, we shall be sharing this with other lenders and stakeholders to infer from this and be part of greening the Indian enterprise ecosystem.”

Highlights of the SPeX Report:

• SIDBI - D&B Sustainability Perception Index (SPeX) – a green pulse indicator – value for July-September 2023 improved to 48 from 46, indicating improvement in sustainability implementation by MSMEs.

• 2 in 5 MSMEs claim that sustainability initiatives have positively contributed to retaining clients.

• Implementation among MSMEs remains low, with the median value at 38, even as awareness (median value at 52) and willingness (median value at 45) among MSMEs remain high.

• MSMEs continue to highlight technical expertise and capital availability as their primary challenges in implementing sustainability initiatives. This observation has been consistent across three consecutive surveys. 

• Only 25% MSMEs claim to have internal expertise to implement sustainability measures. 

• Across three consecutive surveys, MSMEs have expressed the need to undertake efforts to enhance awareness of sustainability measures, policies, and procedures.

• Only 1 in 3 MSMEs is aware of green financing and the impact of sustainability on improving brand image and its competitiveness.

• Compliance ranks low in the list of MSMEs’ priorities; only 17% have initiated sustainability-related policies and procedures and 23% claim prompt & full compliance with sustainability regulations.