SINGAPORE: OCBC Bank, in collaboration with Enterprise Singapore (EnterpriseSG), has unveiled a new initiative aimed at helping small and medium enterprises (SMEs) assess and improve their sustainability performance.
The OCBC SME Start ESG Programme offers SMEs the tools and resources necessary to measure their environmental, social, and governance (ESG) metrics, with the ultimate goal of fostering long-term sustainable practices across Singapore’s business landscape.
As part of the programme, participating SMEs will receive a baseline measurement of their sustainability performance, along with expert advice and insights on best practices for integrating sustainability into their operations.
The programme also provides access to sustainability-linked loans (SLLs), which are financial products with borrowing costs that are tied to the sustainability achievements of the borrower.
OCBC has set an ambitious target of enrolling 300 SMEs into the programme, with plans to offer sustainability-linked loans to these businesses based on their ESG progress. These loans will help fund the implementation of sustainable practices, with the interest rates linked to the sustainability performance of the business.
EnterpriseSG will play a key role in supporting the programme by funding up to 70% of the annual assessment costs for each SME’s sustainability performance, over a period of three years. This financial support aims to make the programme more accessible to smaller businesses that might otherwise be deterred by the costs of sustainability assessments.
Participating SMEs will benefit from the expertise of OCBC’s sustainability team, who will provide tailored guidance on how to formulate and implement effective sustainability strategies. The programme will also offer advisory services designed to help SMEs improve their sustainability metrics and integrate ESG principles into their operations.
To assess the sustainability performance of participating businesses, OCBC has partnered with EcoVadis, a leading provider of sustainability ratings.
The EcoVadis assessment evaluates SMEs across four key sustainability themes: Environment, Labor and Human Rights, Ethics, and Sustainable Procurement. This comprehensive evaluation will provide businesses with a clear picture of their ESG standing and highlight areas for improvement.
Through this initiative, OCBC and EnterpriseSG aim to drive greater awareness and action on sustainability among Singapore’s SMEs, empowering them to integrate ESG principles into their business practices while improving their access to sustainable financing options.