In this webinar, Dr Michael Schaper from the ISEAS – Yusof Ishak Institute, Dr Ryal Wun from the Global Compact Network Singapore and Mr Sebastian Cortes-Sanchez from the Asian Trade Centre discuss the motivations and barriers to climate action in Small and Medium Enterprises (SMEs) across Southeast Asia.
CLIMATE CHANGE IN SOUTHEAST ASIA PROGRAMME WEBINAR
Tuesday, 22 February 2022 – Dr Michael Schaper, Senior Visiting Fellow at the Climate Change in Southeast Asia Programme in ISEAS, Dr Ryal Wun, Deputy Executive Director and Legal Director at the Global Compact Network Singapore and Mr Sebastian Cortes-Sanchez, Deputy Director at the Asian Trade Centre spoke on what climate action looks like for SMEs, and discussed a study conducted by the ISEAS-Yusof Ishak Institute, led by Dr Schaper, on climate-related measures undertaken by SMEs. The session was moderated by Ms Sharon Seah, Senior Fellow and Coordinator of the Climate Change in Southeast Asia Programme and ASEAN Studies Centre at ISEAS.
Dr Schaper began by emphasising the importance of the role played by SMEs in the global and regional transition to corporate sustainability. SMEs represent almost 99% of all businesses in the ASEAN region, and contribute around 40% of its GDP. A study co-authored by Dr Schaper found that SMEs and ASEAN collectively have a higher carbon footprint than small countries like Brunei. Dr Schaper then presented the results of his latest study “SME Responses to Climate Change in Southeast Asia”, wherein a survey of 800 SME owners and operators in Indonesia, Malaysia, the Philippines, Singapore and Vietnam was conducted. Respondents were asked about climate action taken by their businesses, future plans to deal with climate impacts, obstacles faced and trusted sources of information. He found that most SMEs owners are concerned about climate change and are already taking simple steps towards sustainability. Many intend to prepare for climate impacts by reviewing insurance policies and creating disaster preparation plans. The greatest obstacles highlighted by the survey were the lack of finance, knowledge and skills needed to improve business practices. Respondents also preferred to receive information through online channels from governments and business associations.
Dr Ryal Wun provided the Singapore context for SME engagement on sustainable practices. The Carbon Pricing Leadership Coalition Singapore, jointly launched by the UN Global Compact Singapore and the World Bank, provides tools, resources, training and knowledge on sustainability to local companies. This includes the Carbon & Emissions Recording Tool (CERT), an easy-to-use tool for monitoring company emissions and lowering climate impact. Dr Wun reported that the simple yet robust nature of the tool made it suitable for SMEs, which lack resources for more complicated practices as highlighted by Dr Schaper’s study.
Mr Sebastian Cortes-Sanchez further expanded on the topic to share experiences from working with SMEs in the Southeast Asia region. He reiterated the finance and knowledge limitations pointed out by Dr Schaper, adding that SMEs are greatly concerned with competitiveness, engagement, survivability and growth. Therefore, measures to support SMEs in a sustainable transition must be designed to help them overcome resource limitations while enhancing these factors for success, especially in pandemic recovery. Mr Cortes-Sanchez recommended targeted approaches catered to sectors through credible business associations, and agreed that SME engagement through social media can be effective when implemented in a localised and platform-specific way.
During the Q&A session, the panellists addressed questions relating to business cases for climate action, best practices for the planning and implementation of climate measures and the role of governments, multinational corporations and ASEAN in supporting SMEs. The webinar drew over 100 participants.
