Sustainability for success? 3 in 5 SMEs agree

Having sustainability as a core could help improve the reputation of SMEs

SMEs plan to implement clear ESG practices, operational policies and processes

SINGAPORE

Three in five small- and medium-sized enterprises (SMEs) believe that incorporating sustainability practices in their business will help them grow and improve, the UOB SME Outlook Study 2022 showed.

SMEs said having sustainability as a core could help improve their reputation (54%), make working with multinational corporations concerned with sustainability goals easier (45%), and enable them to help build an environmentally- and sociallyresponsible Singapore (44%).

Amongst environmental, social, and governance (ESG) practices SMEs plan to implement are clear operational policies and processes such as risk management and financial control (45%), more efficient use of resources to minimise waste (43%), and use of energy-efficient equipment and technologies (35%).

Apart from ESG practices, SMEs, particularly those in whole trade (98%), said they are also aligning their initiatives to the Singapore Green Plan 2030 by stepping up recycling efforts (60%), training employees in climate risk or environmental protection (60%) and switching to energyefficient sources to reduce carbon footprint (56%).

The road to sustainability

Meanwhile, companies in construction and infrastructure (98%) are increasing their recycling efforts (41%) and applying for green certification schemes (39%). Real estate and hospitality companies, on the other hand, are looking mainly to reduce packaging waste (42%) such as single-use plastic.

The road to sustainability, however, isn’t an easy one, especially for SMEs who said they either have insufficient knowledge to identify and to execute relevant initiatives for their organisation (40%) or inadequate nonfinancial support such as sustainability training (33%).

In particular, small businesses are also concerned about the potential increase in cost for their end customers (31%) and inadequate financial support from the government and banks for such initiatives (31%). Meanwhile, medium-sized businesses said inadequate non-financial support (47%), insufficient knowledge (46%) and the possible impact on short-term revenue (44%) are their key barriers to adopting sustainable practices.

To help address these concerns and deepen their capability, 43% of SMEs said they are looking for collaboration opportunities with industry bodies, government-linked companies or large businesses, whilst 39% are seeking connections to industry peers and ecosystem partners, and 38% plan to tap training or solutions providers.

UNA BRANDS, KLICKBRANDS COMMIT US$100M TO SOUTH KOREA’S E-COMMERCE MARKET

Una Brands and KlickBrands have formed an alliance to commit up to US$100m worth of investment in South Korea’s e-commerce market.

The investment could benefit at least 25 profitable e-commerce brands with revenues of up to US$50m in categories such as health, K-beauty, baby, pets, and home and living brands.

“Of all the local ecommerce aggregators, we chose KlickBrands as our strategic partner because of our shared vision, mission, and values,” Kiren Tanna, Co-founder & CEO of Una Brands, said.

“This will make KlickBrands an instrumental partner in strengthening Una Brands’ presence in, and understanding of, the South Korean ecommerce landscape.”

South Korea is amongst the key markets of Una Brands, considering it has the fifth-largest e-commerce market across the globe.

The market is projected to see an annual growth rate of around 14% with an expected market value of US$250 billion by 2025.

“Our partnership with Una Brands bears testament to the growing possibilities for ecommerce brands in South Korea,” KlickBrands Co-founder & CEO Brian Hyun said.

“We bring to the partnership local ecommerce expertise, as well as the understanding and empathy of local brand owners’ mindsets.”

South Korea is amongst the key markets of Una Brands, with the 5th largest e-commerce market globally