Modalku, STACS, and IGCN Encourage ESG Practices to MSMEs via the ESGpedia Platform

Modalku, STACS, and Indonesia Global Compact Network (IGCN) collaborate to invite Indonesian MSMEs who want to start their Environmental, Social, Governance (ESG) reporting journey through the platform ESGpedia.

The ESGpedia platform provides ESG topics and features to convert business operational data, starting from fuel, coolant and electricity consumption into ESG based on the ISO 14064-1 method along with the Green House Gas (GHG) Protocol in Indonesia.

"ESGpedia, developed by STACS, aims to address the ESG data gap in the Southeast Asian market. This platform provides free access to MSMEs who want to simplify various ESG reporting standards and frameworks. Especially in Indonesia, we are aware that several institutions or companies are already required by the government to report ESG metrics," said STACS Founder & Managing Director Benjamin Soh in his official statement, Friday (2/2).

For your information, STACS is an ESG technology and data solutions company headquartered in Singapore.

Furthermore, this support is carried out to increase awareness of sustainable practices and the importance of ESG in their business strategy, especially amidst increasing requirements from regulators and investors in dealing with climate change issues.

Apart from that, this educational support is also carried out considering that MSMEs have limited resources compared to large-scale companies so that it can help businesses to be more sensitive to sustainability issues that need to be addressed.

Through this reporting, MSMEs can create action plans related to the ESG topics they want to address and align their business activities with the 17 UN Sustainable Development Goals (SDGs) to eradicate poverty, improve prosperity and protect the earth.

As is known, a number of players in the digital and technology ecosystem have also launched their own initiatives in the ESG field. Last year AC Ventures and PricewaterhouseCoopers (PwC) published the Indonesian General Guidelines for Corporate Governance (PUGKI). The target is Indonesian startups that want to explore new approaches and understand governance amidst the incessant ESG practices.

According to PwC data in 2022, investors are now starting to shift to businesses that practice ESG metrics. This is confirmed by research which notes that as many as 80% of investors are wary of greenwashing, Meanwhile, in 2023 data, 70% of consumers tend to choose sustainable products.

While the SCF provider platform, Danamart claims to apply ESG principles as one of the benchmarks for assessing risk management for SMEs before issuing securities at Danamart. They said they would not provide funding to companies that do not have ESG value.