GLOBAL digital payment and financial services solutions provider Ant International has partnered with industry leaders to launch a pioneering tool for micro, small and medium enterprises (MSMEs) in Asia called the MSME Sustainability Impact Scorecard (MSME S-Card).
This digital solution, the first of its kind, is designed to help MSMEs track and verify their environmental and social impact using standardized metrics, thereby promoting more sustainable business practices and enabling access to green financing.
Leveraging Ant International’s experience in digital innovation, the MSME S-Card will automate the collection of critical ESG (environmental, social and governance) data within MSMEs’ existing digital processes, including digital wallets.
Ant International, through its local partners, introduces a new digital tool that will provide MSMEs across the Asian region with a streamlined digital solution to build validated ESG credentials toward more sustainable practices and access new economic opportunities. PHOTOS BY JING GARCIA at the SINGAPORE FINTECH FESTIVAL 2024 from Nov. 6 to 9.
The scorecard will provide MSMEs with actionable insights, helping them “align with global sustainability standards, enhance their ESG credibility, and attract investors focused on impact and sustainability.”
The MSME S-Card is part of Programme Sirius, Ant International’s initiative aimed at promoting sustainability among MSMEs.
Launched in March 2024 with support from partners such as IFC, Gprnt, and 13 Asia-Pacific fintech leaders, Program Sirius supports the United Nations Sustainable Development Goals (SDGs) by enabling MSMEs to transition to sustainable practices.
“One of the key priorities when we launched Program Sirius earlier this year was to address the critical challenge of sustainability inclusion for MSMEs, who are being left behind in the global shift towards sustainability, missing out on new opportunities,” said Leiming Chen, chief sustainability officer at Ant International. “We hope that the MSME S-Card, the first initiative under Program Sirius, will offer a benchmark for MSMEs and financial institutions to work together to support MSMEs’ sustainability journey, enabling them to contribute to a shared vision for a better future while gaining practical benefits from sustainable payments, ESG reporting, and green financing.”
Gprnt, the technology partner for Program Sirius, is the world’s first regulator-launched digital ESG reporting platform. It will provide expertise in collecting and managing ESG data and share best practices for MSME sustainability.
Gprnt will also serve as a data reporting partner, enhancing transparency and helping MSMEs align with regional sustainability standards, according to the digital platform giant.
“We are excited to reaffirm our partnership with Ant International to collaborate on Program Sirius, an important initiative for promulgating MSMEs’ access to solutions that help them commence their sustainability journeys,” said Lionel Wong, executive director at Gprnt. “The launch of the MSME S-Card could not have come at a better time, happening in lockstep with Gprnt’s launch of its own automated Disclosure and Marketplace tools, which are designed to simplify sustainability reporting for all businesses and connect them to an ecosystem of solutions to support their financing and decarbonization needs.”
According to data presented by executives at the Singapore Fintech Festival 2024, MSMEs make up 90 percent of businesses and employ over half of Asia’s workforce, yet they face significant barriers to sustainable adoption. MSMEs, said the presenters, often lack awareness of ESG practices, especially in developing regions where access to resources is limited.
Financial constraints also make sustainability practices difficult to adopt despite increasing pressure from larger corporations within the global value chain. Plus, most green financing options are designed for larger corporations, leaving MSMEs underserved and hindering their ability to fund sustainable transitions effectively.
Nonetheless, this is where the role of digital platforms such as GCash comes in, along with Ant’s pilot program, which will play a key role in supporting MSMEs with localized, seamless data solutions.
GCash will push the MSME S-Card and customize benchmarks to meet the needs of Filipino MSMEs across the country. Known for championing financial inclusion, GCash also demonstrated its commitment to sustainability through the GForest initiative, which has engaged 17 million users to plant over 2.8 million trees, contributing to environmental conservation and supporting livelihoods.
“In the Philippines, MSMEs make up 99.5 percent of all businesses. However, many remain informal and lack access to financing and growth support, limiting their potential for resilience and innovation,” said Winsley Bangit, vice president for New Businesses at GCash. “GCash’s partnerships with global leaders like Ant International will help enable MSMEs to access both capital and practical support, promoting responsible growth in line with GCash’s purpose to uplift Filipinos’ everyday lives. Together, we’ll create a synergistic ecosystem combining capital, technology and sustainability expertise.”
The pilot project with GCash is set to launch next year, marking an important step toward enabling sustainable business practices for MSMEs in Asia.
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