The Department of Trade and Industry (DTI) and Global Reporting Initiative (GRI) have signed a Memorandum of Understanding (MoU) to help micro, small, and medium-sized enterprises' (MSMEs) sustainability practices and reporting.
GRI’s CEO Eelco van der Enden said, "we are delighted to sign this MoU with DTI to help MSMEs in the Philippines adopt sustainable practices. These enterprises face size-related resource constraints, skill deficits, and knowledge limitations when it comes to sustainability."
Van der Enden said many "are unaware of the economic benefits of sustainability transition and mistakenly believe that adopting greener practices is technically complex and costly."
"Our program with DTI aims to address these challenges and help small businesses in the Philippines reap the economic benefits from the use of more efficient and sustainable resources and production techniques, access sustainable finance, meet stakeholder demand for sustainable and responsible businesses, and comply with the increasing sustainability regulatory requirements," he added.
Through this partnership, GRI and DTI aim to train 8,000 MSMEs in sustainability and reporting, and support 300 of them to publish their first sustainability report within five years.
The program will also facilitate capacity-building workshops, support the development of Sustainability Reporting Guidelines for small businesses in the Philippines, and lead policy discussions with regulators and government agencies.
It also plans to host an MSME Sustainability Summit in the Philippines, aiming to unite MSMEs and promote inclusive and sustainable development.
“With this effort to complement our existing Green Economic Development (GED) Program, this initiative aims to uplift MSMEs, elevating their commitment to sustainability and guiding their operations along the path of environmental, social, and governance principles. In doing so, we cultivate enterprises primed to attract green finance, tap wider market opportunities, and contribute to the virtuous cycle of a circular economy. Climate action is also a priority of the government as we continuously achieve economic advancement,” Undersecretary Blesila Lantayona of the DTI-Regional Operations Group said.
As the majority of businesses in the ASEAN Member States (AMS), MSMEs are essential to the region's economic growth and development.
MSMEs in ASEAN, which has almost 70 million businesses, account for 85 percent of employment, 44.8 percent of GDP, and 18 percent of AMS exports on a national level.
The AMS's national policy is shifting to prioritize sustainability and green economic growth, and as a result, there is increasing pressure on MSMEs to embrace sustainable practices.
In the ASEAN region, GRI assisted these businesses by offering free sustainability training in Vietnam and Indonesia, reaching a total of around 4700 MSMEs through the training partners.
In the Philippines, engagements with start-ups were supported to help them publish their initial sustainability reports. (Ma. Joselie C. Garcia)