SINGAPORE — Financial technology services firm Ant International and its partners have launched a sustainability impact scorecard designed for Micro, Small, and Medium Enterprises (MSMEs) to facilitate sustainable transformation and access green financing opportunities.
At the Singapore FinTech Festival 2024, Ant International and its partners introduced on Wednesday, Nov. 6, the “MSME S-Card,” a digital solution that enables MSMEs to track their environmental and social impact.
The initiative is the first application of Program Sirius (Sustainability Innovation for Regenerative & Inclusive Purposes), which was launched in March 2024 to empower MSMEs in their transition toward sustainability, aligning with the United Nations Sustainable Development Goals.
Despite being comprised of small-scale businesses, MSMEs account for 90% of businesses and 50% of the total workforce in Asia, making them vital to any economy.
However, achieving sustainability can be challenging for these enterprises due to limited knowledge, resources, and access to tailored financial products. Most green financing solutions available in the market are geared towards large enterprises, leaving MSMEs underserved.
The MSME S-Card functions by automatically collecting key data from businesses through their transactions and digital wallet activity. This data is used to validate the MSMEs’ environmental, social, and governance (ESG) credentials.
The ESG metrics collected are then leveraged to generate actionable insights that help align with sustainability standards, attract investor support, and bridge the gap between MSMEs and financial institutions.
To test and refine the MSME S-Card, Ant International has selected its Filipino partner, GCash, to customize the benchmarks to fit local needs. The Philippines serves as an excellent baseline for measurement, as MSMEs comprise 99.5% of all businesses in the country.
GCash vice president for new businesses Winsley Bangit stated that the use of the MSME S-Card will help enterprises gain access to capital and practical support, fostering a synergistic ecosystem that integrates capital, technology, and sustainability.
The pilot project is expected to launch next year in the Philippines.
