Ant International, a global digital payment and financial services leader, in collaboration with its industry partners, are developing an industry-first MSME Sustainability Impact Scorecard (“MSME S-Card”), a digital solution designed to empower Micro, Small, and Medium Enterprises (MSMEs) in Asia to track their environmental and social impact in an verified and convenient way based on applicable standards and requirements, to better integrate sustainability into their business operations.

The MSME S-Card leverages Ant International’s experience and partnerships in digital innovation and platforms, automating the collection of key data within existing business processes and digital wallets to build and validate MSME ESG credentials. By integrating ESG metrics in this streamlined and digital way, the scorecard offers MSMEs actionable insights for aligning with sustainability standards, enhancing their ESG credibility, attracting impact-focused investors, and supporting long-term sustainable growth in line with global market expectations.

Leiming Chen, Chief Sustainability Officer, Ant International, said: “One of the key priorities when we launched Programme Sirius earlier this year was to address the critical challenge of sustainability inclusion for MSMEs, who are being left behind in the global shift towards sustainability, missing out on new opportunities. We hope that the MSME S-Card, the first initiative under Programme Sirius, will offer a benchmark for MSMEs and financial institutions to work together to support MSMEs’ sustainability journey, enabling them to contribute to a shared vision for a better future while gaining practical benefits from sustainable payments, ESG reporting, and green financing.”

In March 2024, Ant International unveiled Programme Sirius (Sustainability Innovation for Regenerative & Inclusive Purpose) – supported by partners like the IFC, Gprnt and 13 Asia-Pacific fintech leaders at its inaugural launch – an industry-led knowledge initiative to empower MSMEs in their transition towards sustainability, in line with the United Nations Sustainable Development Goals.

As Technology Partner to Programme Sirius, Gprnt will build on its expertise in harnessing technology to simplify how environmental, social and governance (ESG) data is collected and accessed, and share best practices and community outreach in driving MSME sustainability with Ant International. Gprnt, the world’s first regulator-launched digital platform for ESG reporting and data, will also act as a data reporting partner, and will further bolster transparency and help support MSMEs’ efforts to achieve alignment with applicable regional standards.

Lionel Wong, Executive Director, Gprnt, said: “We are excited to reaffirm our partnership with Ant International to collaborate on Programme Sirius, an important initiative for promulgating MSMEs’ access to solutions that help them commence their sustainability journeys. The launch of the MSME S-Card could not have come at a better time, happening in lockstep with Gprnt’s launch of its own automated Disclosure and Marketplace tools, which are designed to simplify sustainability reporting for all businesses, and connect them to an ecosystem of solutions to support their financing and decarbonisation needs.”

Addressing challenges MSMEs face in adopting sustainable practices

Accounting for 90% of businesses and over half of Asia’s workforce, MSMEs are vital to the region’s economy. Yet, they often face obstacles in adopting sustainable practices, including

• Lack of Knowledge: Unlike large corporations driven by ESG reporting requirements, MSMEs often lack awareness of ESG practices, which limits their ability to engage in sustainability initiatives.This knowledge gap is particularly notable in developing countries, where access to information and resources is limited.

• Limited Resources: MSMEs face resource and financial barriers that make implementing sustainability practices difficult. While some may adopt simpler, green-certified solutions—such as solar-powered lighting or energy-efficient equipment—these options often come with high upfront costs. Many MSMEs, as part of the global value chain, are also increasingly requested to meet the complex sustainability demands of larger corporations.

• Scarcity of Tailored Financial Products: Most green finance solutions offered by banks and financial institutions are geared toward larger corporations, leaving MSMEs underserved. These smaller enterprises require financing that aligns with their shorter investment horizons, smaller capital needs, and specific challenges. Without such tailored financial support, MSMEs struggle to fund their sustainable transitions effectively.

Leveraging digital platforms for seamless MSME reporting and transformation

Ant International’s global digital platform ecosystem partners play a crucial role in supporting MSMEs with seamless data connectivity and local expertise. The MSME S-Card bridges gaps between financial institutions and small businesses by enabling sustainability reporting through partnerships, such as with pilot participant which is an EMI-Non- Bank Financial Instution from the Philippines, who will further customise the scorecard benchmarks based on local needs.

According to Winsley Bangit, VP for New Businesses, MSMEs play a pivotal role in the Philippines, comprising 99.5% of all businesses. However, many remain unregistered and struggle with limited access to financing and developmental support, which restricts their potential for resilience and innovation. Strategic collaborations with global partners like Ant International aim to bridge these gaps, providing MSMEs with essential capital and guidance. This initiative promises to create a supportive ecosystem where capital, technology, and sustainability expertise come together to uplift Filipino enterprises and empower communities.

As a founding member of Programme Sirius, the organization stands as a leader in promoting financial inclusion across the Philippine economy, particularly through mobile financial solutions. Beyond advancing financial access, the organization has made significant strides in environmental and social sustainability, setting a global benchmark for responsible fintech practices. Through projects such as its reforestation initiative, 17 million users have helped plant over 2.8 million trees, offsetting 138,000 metric tons of carbon emissions. This effort not only aids environmental conservation but also provides stable livelihoods for more than 8,600 farmers.

The initial phase of this initiative is projected to launch by next year.