SIDBI and Dun & Bradstreet India launches Sustainability Index dedicated to MSMEs
Sustainability for MSMEs: Principal financial institution for MSME development SIDBI Monday announced the signing of a memorandum of understanding (MoU) with data and analytics company Dun & Bradstreet to create a quarterly SIDBI-D&B Sustainability Perception Index (SIDBI–D&B SPeX). The index will be shared with policymakers as a quantitative measurement of the adoption of environmental, social, and corporate governance (ESG) measures among MSMEs and “nudge businesses towards adopting an ESG framework in their business strategy over the coming years,” said SIDBI.
The index will capture the sentiment of businesses through a survey about the preceding quarter and outlook for the next quarter on various business parameters, which will provide valuable insights on the adoption of an ESG framework, when analysed at an aggregate level, SIDBI noted. The index later plans to cover the sectoral and sub-sectoral perceptions/aspirations and preparedness where the sectoral enterprises can track themselves in regard to improvement on ESG.
Sustainability disclosure and reporting play an important role to help MSMEs and investors to reduce risks across their supply chain and enable an efficient decision-making process, toward greening MSMEs as well as lending institutions, said Sivasubramanian Ramann, Chairman and Managing Director of SIDBI at the launch of the index at an event in Coimbatore on September 30.