Small and medium enterprises (SMEs) form the backbone of Asia-Pacific’s (APAC) economies; however, the majority face challenges in accessing finance, certification, and capacity-building necessary to integrate Environmental, Social, and Governance (ESG) principles into their businesses. With sustainability now at the centre of business resilience and market access, supporting SMEs in the adoption of ESG is crucial for green growth, competitiveness, and accelerating APAC’s sustainable transition. Supportive frameworks and targeted initiatives are emerging to empower SMEs to overcome barriers and adopt responsible business practices.
Why ESG is essential for APAC’s SMEs
SMEs account for a large percentage of APAC employment and GDP but often operate with limited resources and technical skills. ESG adoption helps SMEs:
Without ESG integration, SMEs risk being left behind as the global markets tighten their sustainability demands.
How can APAC SMEs access ESG financing, certifications, and capacity-building?
- Financing: Governments, regional development banks, and private investors are ramping up green financing options tailored for SMEs, including concessional loans, grants, and blended finance. ASEAN and the Asian Development Bank initiatives, for example, have sourced funds to support SME investments in sustainability, especially in clean energy, waste reduction, and resource efficiency.
- Certifications: Global and national ESG and sustainability certifications provide SMEs with credible frameworks to demonstrate compliance and market readiness. Certifications such as ISO 14001 (environmental management), fair trade labels, and ecolabels allow SMEs to secure customer confidence and access export markets.
- Capacity-Building: Training programs, technical assistance, and knowledge exchange platforms are expanding to provide SMEs with the skills and tools needed for effective ESG implementation. Collaborative efforts between governments, industry associations, and multilateral organisations guide ESG disclosures, supply chain sustainability, and green innovation adoption.
Case studies of support for SME ESG adoption
- Singapore’s Enterprise Development Agency offers a Green Business Certification program that encourages SMEs to adopt sustainable practices and secure certifications in order to boost business opportunities at both local and regional levels
- The SME Climate Hub initiative, launched in collaboration with the UN and private sector partners, offers free resources and tools for APAC SMEs to set science-based targets and reduce their environmental footprints.
- Impact investment networks in countries like Indonesia and Vietnam are linking SMEs with investors searching for measurable ESG impact, providing crucial growth capital that can make or break sustainable ventures.
How can Strategy&Ops support APAC SMEs on their ESG journey?
- Tailored ESG strategy development: At Strategy&Ops we guide SMEs in defining realistic, meaningful ESG goals that best suit their specific business models and market contexts.
- Access to finance advisory: Our multidisciplinary team guides SMEs through green financing options, creating viable sustainability proposals that attract investment.
- Stakeholder engagement facilitation: At Strategy&Ops, we can help connect SMEs with industry players, government, and investors to support collaboration and scale initiatives.
- Certification and compliance support: We help guide certification procedures to establish a reliable ESG commitment as well as unlock new market access.
- Capacity-building programs: Strategy&Ops delivers the training and tools needed to improve ESG capabilities, facilitate reliable reporting, and drive innovation.
By empowering SMEs with the right resources and frameworks, Strategy&Ops assists APAC’s backbone businesses in leading green growth that powers the economy, society, and the environment. Ready to accelerate your SME’s sustainability performance? Contact our multidisciplinary team at info@strategyandops.net.
For more information on Empowering SMEs Globally with Voluntary Sustainability Reporting and how Strategy&Ops can help, visit our recent LinkedIn Post, for more information.
#GreenGrowth #ESGforSMEs #SustainableAPAC #SMEFinance #CapacityBuilding #ResponsibleBusiness
References
CPA Australia, 2024. 2024–25 Asia-Pacific Small Business Survey: Final Report. Available at: https://www.cpaaustralia.com.au/-/media/Project/CPA/Corporate/documents/tools-and-resources/business-management/small-business-survey/2024-2025-market-summaries/2024-25-Asia-Pacific-Small-Business-Survey-Final-Report.pdf?rev=3f330e406f274e5781babc14b69ac21b
ERM, 2025. ERM Annual Trends Report 2025. Available at: https://www.erm.com/globalassets/insights/ermsi_annual_trends_report_2025_2.pdf
Environmental Finance, 2025. ESG Data Leader in APAC. Available at: https://www.environmental-finance.com/content/awards/sustainable-investment-awards-2025/corporate-statements/esg-data-leader-in-apac.html?pf=print
ESGPedia, 2025. Asia ESG regulations & sustainability reporting standards. Available at: https://esgpedia.io/industry-insights/asia-esg-regulations-sustainability-reporting-standards/
LinkedIn, 2024. Navigating the Asia-Pacific ESG landscape: A guide for SMEs. Available at: https://www.linkedin.com/pulse/navigating-asia-pacific-esg-landscape-guide-smes-yeo-yan-yin-%E6%9D%A8%E9%A2%9C%E6%AE%B7-8rcsc/
OECD, 2022. Trends in ESG investing and quality infrastructure investment in Asia-Pacific. Available at: https://www.oecd.org/content/dam/oecd/en/publications/reports/2022/01/trends-in-esg-investing-and-quality-infrastructure-investment-in-asia-pacific_022d1fc8/86d154c1-en.pdf
PwC, 2025. Reinventing Asia-Pacific 2025. Available at: https://www.pwc.com/gx/en/issues/esg/asia-pac-esg/reinventing-asia-pacific-2025.pdf
UNCTAD, 2024. Digital Economy Report 2024: Asia-Pacific. Available at: https://unctad.org/system/files/official-document/diae2024d3_en.pdf