ESG RoadMap for SMEs : Why and how you can kickstart your ESG journey

Financial figures no longer tell the company’s complete story. Compliance and ethics matter and planet earth’s future rests in the hands of businesses as much as citizens



  • • ESG as we all know is an umbrella term that stands for Environmental, Social and Governance aspects of commercial activity of an organization. Its about making a difference by creating a smarter business for stronger world with sustainable outcomes that drive value and fuel growth whilst strengthening our environment and societies & creating a sustainable future now, for a Net Zero Tomorrow

  • • ESG is a framework for companies to assess and manage their impact on the environment, society, and the way they are governed. Investors, customers, regulators, and other stakeholders are increasingly demanding that companies disclose their ESG performance. ESG reporting can help companies to attract and retain investors, customers, and employees. Companies are increasingly being rated on ESG performance by ESG rating providers like MSCI, Sustainalytics, and Refinitiv, and these ratings are increasingly impacting their ability to attract investors, and lenders and win business Increasingly

  • • Companies today are facing tremendous pressure to prioritize by integrating ESG strategy as a part of the corporate strategy ESG has now become a strategic business imperative because socially conscious investors now use ESG criteria to screen potential investments

  • • Companies are being rated on various ESG parameters which can have a significant impact their reputation, ability to attract capital and profitability

    • • Financial Losses
    • • Loss of Reputation & Goodwill
    • • Loss of Shareholder Value
    • • Bankruptcy


Why is ESG relevant for SMEs?



Yes - because on July 12th, SEBI came out with guidelines titled BRSE Core for ESG disclosures for Value Chain which indicates that as the BRSR Core disclosures would be mandated for not just the top 1000 listd companies for whom its directly applicable but also for a company’s upstream and downstream partners of the listed entity comprising 75% of its value – which includes the SMEs.

BRSR Core is a subset of BRSR ( Business Responsibility and Sustainability Reporting) consisting of a set of 9 key metrics on which is given below