In a promising collaboration, the United Nations Development Program (UNDP) is collaborating with the Monetary Authority of Singapore (MAS) and the Global Entity Identification Foundation (GLEIF) to develop a potential We launched Project Savannah, a transformative initiative. , and medium-sized enterprises (MSMEs) are undertaking sustainability reporting initiatives.
Project Savannah is Joint effort starting in June 2023 We are collaborating between the three organizations to provide a strong foundation for how MSMEs approach environmental, social, and governance (ESG) reporting, focusing on three key pillars: metrics, technology, and opportunities.
According to recent information, white paper This initiative on “Project Savannah: Common ESG Indicators to Generate Digital Sustainability Certification for MSMEs” will help MSMEs, which account for approximately 90% of enterprises, over 60% of employment and half (50%) of enterprises; It takes place at a critical time. His GDP around the world — increasing pressure for stakeholders such as corporate partners, regulators and consumers to disclose their sustainability performance.
The importance of MSMEs in the global economy and sustainability
MSMEs play a key role in driving economic and social development by promoting value-adding activities, participating in global supply chains, driving innovation, and fostering inclusive growth through job creation.
However, despite companies collectively accounting for at least 50% of greenhouse gas (GHG) emissions in their business sectors, research shows that most MSMEs are still in the early stages of transitioning to net-zero and Only basic actions are being taken to reduce carbon emissions.
What Project Savannah aims to do is Move away from lack of guidance, complex reporting frameworks, and limited resources to impact-driven decision-making by providing a streamlined, accessible, technology-driven approach to ESG reporting tailored specifically for MSMEs solve the challenges faced by MSMEs in
Source: Project Savannah: Common ESG Indicators to Generate Digital Sustainability Qualifications for MSMEs
Pillar 1: Harmonization of MSME indicators
The first pillar of Project Savannah focuses on establishing a globally relevant and harmonized set of common ESG indicators for MSMEs. The proposed framework consists of six environmental disclosures, five social disclosures, and four governance disclosures that explain how sustainability issues impact your business and how your business impacts people. It is designed to focus reporting companies on their environmental impact.
By providing a clear and concise framework for reporting, Project Savanna streamlines the process of generating essential ESG credentials for key stakeholders such as regulators, financial institutions, and supply chain partners. We aim to simplify. This standardized approach will enable MSMEs to track progress, identify areas for improvement, and demonstrate their commitment to sustainability.
Source: Project Savannah: Common ESG Indicators to Generate Digital Sustainability Qualifications for MSMEs
Pillar 2: Leverage technology to simplify reporting
Project Savannah recognizes the critical role of technology in streamlining the ESG reporting process for MSMEs. His second pillar of this initiative focuses on matching his MSMEs with innovative solutions that simplify ESG data collection and reporting.
By leveraging cutting-edge technology and collaborating with industry partners, Project Savannah makes sustainability reporting cost-effective and easy-to-use for MSMEs, making it easy to track sustainability performance against common benchmark metrics. We aim to enable evaluation and reporting.
The initiative recognizes the digitalization challenges faced by MSMEs, especially in emerging economies, and advocates an ecosystem approach that includes public sector, fintech participation, and capacity-building measures to bridge the digital divide. doing.
Pillar 3: Unlock opportunities through verified data
The third pillar of Project Savannah revolves around building a robust opportunity network for MSMEs. The initiative aims to facilitate the transmission of verifiable ESG data to financial institutions and multinational companies by leveraging the Legal Entity Identifier (LEI).
GLEIF’s LEI acts as a digital passport for MSMEs, providing them with a globally accessible, regularly verified and consent-based digital identity framework, thereby increasing their global visibility and credibility. It can be strengthened. This will facilitate access to green procurement, financing and supply chain opportunities for MSMEs that demonstrate a commitment to sustainability.
Project Savannah’s comprehensive network supports and expands sustainable business practices and helps MSMEs carve new paths to growth and success.
Source: Project Savannah: Common ESG Indicators to Generate Digital Sustainability Qualifications for MSMEs
The power of collaboration and impact
According to the white paper, Project Savannah exemplifies the potential of collaboration in driving positive change. By bringing together the expertise and resources of UNDP, MAS and GLEIF, this initiative is poised to have a major impact on the sustainability landscape of MSMEs.
According to the white paper, this collaborative approach ensures that Project Savannah is grounded in the realities faced by MSMEs around the world, while leveraging the latest advances in technology and data validation.
The report outlines how the initiative seeks to foster a common framework for ESG data disclosure by MSMEs, and calls for further collaboration with government agencies, financial institutions, standard-setting bodies and technology solution providers to It is important to strengthen ESG data reporting efforts.
Empowering MSMEs in ESG integration not only improves their global economic standing and opens opportunities to improve financing and partnerships, but also includes current and future efforts within national and international jurisdictions. , it will also be better positioned to address evolving sustainability regulations.
These include Europe’s Corporate Sustainability Reporting Directive (CSRD), the IFRS sustainability disclosure standards introduced by the International Sustainability Standards Board (ISSB), and the US Securities and Exchange Commission’s (US SEC) Contains suggestions.
Project Savannah’s game-changing potential for MSMEs
Project Savannah has the potential to be transformative for SMEs, which form the backbone of the global economy, by providing MSMEs with the tools, support and opportunities they need to embrace sustainability reporting and thrive in the global economy. To do.
By harmonizing metrics, leveraging technology, and unlocking opportunities, Project Savannah was launched with the idea of empowering MSMEs to navigate the complex world of ESG reporting with confidence and ease .
As this initiative gains momentum, it has the potential to transform the sustainability landscape, drive positive change, and create a more comprehensive and sustainable outlook for the financial operations of small and medium-sized enterprises around the world. Project Savannah is a clarion call for MSMEs to join the sustainability efforts taking place around the world and create tangible results as key contributors to the global economy.
With the support of UNDP, MAS, GLEIF and support from key stakeholders, Project Savannah is poised to contribute to achieving the United Nations Sustainable Development Goals by making a lasting impact on MSMEs around the world.
