- Most MSMEs either do not track their ESG compliance or still rely on manual processes to collect internal ESG data.
- The ESG Scorecard is aimed to improve MSMEs’ ESG performance, financial results, and customer and investor confidence.
NEW DELHI: Bizongo, a leading vendor digitization platform in India, has launched the Bizongo environmental, social, and governance (ESG) Scorecard. The scorecard is designed to help the 100,000 MSMEs (micro, small and medium-sized enterprises) on the platform become ESG compliant over the next 24 months. The ESG Scorecard will help MSMEs monitor their compliance with various ESG components, including social and environmental parameters, as well as governance practices. The tool will also assess MSMEs’ credibility and simplify the process of obtaining Zero Defect Zero Effect (ZED) certification.
Resource Intensity and Growing Environmental Impact
The MSME sector in India is resource-intensive, accounting for 25% of total energy consumption in the industrial sector and generating 110 million tonnes of CO2 equivalent. This consumption is expected to increase as India continues to boost its manufacturing activity.
Benefits of ESG for Business Performance and Integration
Aniket Deb, Co-founder and COO of Bizongo, stated that ESG is a framework that helps businesses build customer loyalty, attract investors, make operations sustainable, and improve financial performance. The ESG Scorecard will enable MSMEs to assess their ESG performance and integrate it into their internal policies and practices.
Improving ESG Preparedness
Most MSMEs either do not track their ESG compliance or still rely on manual processes to collect internal ESG data. This leads to unorganized storage of data, which delays decision-making and ineffective tracking of ESG preparedness. The ESG Scorecard will help MSMEs meet the demands of global-level customers by driving more environmentally friendly and inclusive business operations and manufacturing products with the ethos of ESG. It will also help large enterprises to monitor their ESG profile and expedite decision-making by assessing the compliance levels of suppliers, vendors, and other supply chain partners.
Vision for Self-Reliance and Sustainable Development
Bizongo’s ESG Scorecard comes on the heels of a preliminary study that was conducted by the vendor digitization platform to understand the current scale of adoption of ESG-compliant practices by MSMEs and their intent to implement them. The launch of the scorecard will enable MSMEs to achieve the Government of India’s vision of an Aatmanirbhar Bharat (Self-reliant India) and help the country become a pioneer in sustainable development goals during the current term as it holds the G20 Presidency for 2023.
( Copyright @ India CSR)
