PR No – 158
13th September, 2024
New Delhi
PHDCCI organizes “Global Summit on Sustainability MSMEs – Small Businesses, Big Impact” advocating MSME’s contribution in green growth and climate action
Today, PHDCCI organized the Global Summit on Sustainability MSMEs – Small Businesses, Big Impact Presented by IOCL at Le Meridien. The event highlighted the crucial role MSMEs play in promoting sustainable growth and addressing pressing global climate challenges. Speaking at the event, Dr. Ashok Kumar, Deputy Director General, Bureau of Energy Efficiency, GoI Ministry of Power discussed how MSMEs contribute to 50% of India’s exports and provide jobs to 11-12 crore people.
Further referring to environmental data, Dr. Kumar informed that out of nine climate boundaries, six have already been breached, leaving only three intact. He further cited the IPCC assessment, stating that there are 500 giga tons of emissions space available in the atmosphere, and with our current yearly emissions at 50 giga tons the situation is critical. He stressed that discussions like this summit are vital for addressing such issues.
While mentioning about the extensive work Bureau of Energy Efficiency undertakes in handholding MSMEs on energy conservation, Dr Kumar stated that they have demonstrated 50 projects and developed energy conservation guidelines for MSMEs. We have also recently announced a proposal that is in the work to provide financial instruments such as interest subvention. The Government of India has given in-principle approval for a sum of ₹1,000 crore, which will be used to provide interest subvention to MSMEs taking loans for adopting green energy projects, added Dr Kumar.
He added that Sustainability goes beyond timelines and we face the challenge of steering our growth while staying strong, innovative, and proactive.
Mr. R.R. Rashmi, Fmr. Special Secretary, Ministry of Environment, Forest & Climate Change, GoI highlighted that MSMEs are not covered under SEBI mandates or CSR guidelines. He emphasized the need for a policy framework to support MSMEs and suggested introducing green ratings for products and green procurement.
He added that MSMEs could benefit from green credits as part of the evolving carbon market.
Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI discussed that environmental sustainability is one of the biggest challenges today. He further discussed that young people with innovative ideas can create a sustainable ecosystem for the future and highlighted PHDCCI’s role in leading the charge on sustainability stating that as India’s economy grows, there is a collective responsibility to work on ecosystem and technological needs.
He informed that India has around 65 million MSMEs and a thriving startup ecosystem. In 2016, India had around 400 startups whereas today, there are 1,50,000, including around 115 unicorns that grew during the COVID-19 period, this is a testament to the entrepreneurial prowess of Indian businesses, he added.
Further, he proposed that, following the example of Taiwan’s Plastic EcoPark, India should also create sustainability parks that can offer huge opportunities for startups. The DPIIT has also introduced a scheme where corporations can open incubators, and PHDCCI strongly encourages its members to set up such innovation centers.
He concluded by affirming that PHDCCI is the voice of industry and trade, creating value and opportunities for all stakeholders, with innovation at the core of its growth strategy.
Dr R K Singh, CGM, Green Climate Finance Vertical, SIDBI discussed that the word ‘sustainability’ has both ‘ability’ and ‘inability’- the inability to act responsibly and the ability to make a positive impact. He spoke about SIDBI’s work on inclusive impact and innovative strategies for enterprises. He highlighted that SIDBI set up a Green Vertical in 2022 to ease the adoption of sustainable practices within the MSME ecosystem.
Mr. Singh also mentioned the Sustainability Perception Index introduced by SIDBI to gauge MSMEs’ aspirations and preparedness. He said that today, 2 in 5 MSMEs have adopted growth patterns that benefit both profitability and sustainability but there is still a need for internal expertise. Aligned with the Viksit Bharat mission SIDBI has customized its path accordingly. Further, he emphasized the need to act on both the financing and non-financing sides, and mentioned two schemes launched by SIDBI-the 4E scheme and the Green Financing Scheme.
Lastly, he mentioned the e-Panchatantra mission, aligned with the Panchamrit mission of India, and spoke about the Spice initiative for further sustainable development.
Dr. Bhaskar Chatterjee, Former DG, Indian Institute of Corporate Affairs, Sr. Adviser, Deloitte India and Dua Associates, who also moderated the plenary session on the theme Integrating CSR into Core business strategies, shared that MSMEs were initially concerned about how they could participate in such a large sustainability initiative given their small scale. However, with an enabling atmosphere and facilitative environment MSMEs are now becoming part of this collaborative effort. He emphasized the importance of aligning CSR efforts with core business strategies to achieve long-term sustainable growth.
Mr. Jeevaraj Pillai, Director – Sustainability, UFlex Limited, addressed “Integrating Corporate Social Responsibility into core business strategies.” In his session, Mr. Pillai emphasized the critical role of sustainability in modern business practices. He discussed that Integrating corporate social responsibility into core business strategies is critical for forward-thinking enterprises. Businesses should align their operations with environmental and social goals to drive long-term success and create a positive impact.
“At UFlex, we believe sustainability is a journey that requires commitment and innovation. Our partnership with PHDCCI reflects our dedication to supporting MSMEs in transitioning toward more sustainable business practices. We aim to contribute to a more sustainable and resilient global economy by sharing insights and collaborating on effective strategies”, he added.
Mr Rajesh Ayapilla, Senior Director, PACS – Sustainability & CSR, Coca Cola India, discussed about the critical role of water for their business, and discussed that their sustainability efforts are driven not by CSR obligations but by their responsibility.
He added, Coca-Cola, which has been in existence for 136 years spends more than the mandated 2% of its net profits on CSR. Their efforts align with three focus areas- namely, water conservation, packaging (with 100% of their packaging being recycled), and sustainable agriculture.
Mr.Nitesh Raj, Vice President, Somany Impressa Group discussed the importance of CSR in the context of contributing to competitive advantage, especially as companies integrate themselves into the global value chain. He emphasized that CSR should not be perceived as an additional cost but as a driver of competitive advantage.
Mr. Saurabh Diddi, Director, Bureau of Energy Efficiency commented on the chaos caused by climate change linking it to recent environmental issues such as the Wayanad floods and the current weather in Delhi. He noted that while climate change was once a neglected topic, it is now a critical issue. He also mentioned that India is developing its carbon market, with two programs- the Compliance Mechanism, which sets targets for industries, and the Offset Mechanism, a voluntary program.
Ms Dia Mirza, Actor, Producer, United Nations Secretary General’s Advocate for Sustainable Development Goals & United Nations Environment Program Goodwill Ambassador, thorough her virtual address discussed on the importance of aligning MSMEs with global sustainability efforts.
In her address, she said that integrating the United Nation’s SDGs with MSMEs’ path to a sustainable and greener future is not only a moral imperative but also a strategic opportunity. By aligning with the SDGs, MSMEs can enhance their competitiveness, unlock new markets, and play a pivotal role in driving global sustainability efforts. She further added, MSMEs are essential to the broader eco-system of enterprises. Start-ups and small firms are not only the primary source of net job creation in many countries but also the driving force of innovation and sustainability within the private sector.
Ms. Mirza also praised PHDCCI for its leadership in organizing the summit, appreciating that its efforts will help empower MSMEs to be at the forefront of sustainable development, while significantly contributing to a more resilient and greener future.
Dr Jatinder Singh, Deputy Secretary General, PHDCCI delivered the vote of thanks and emphasized that every individual is a stakeholder in achieving sustainability.
The summit was attended by key industry leaders, policy makers, and corporate representatives. Through discussions on innovative strategies, cutting-edge technologies, and compliance practices, the event further helped pave the way for enhanced economic growth and environmental sustainability, reinforcing the importance of MSMEs in driving a sustainable future.
The event was presented by Indian Oil Corporation Ltd. and supported by Coca Cola India, SIDBI, UFlex Ltd, AGI Greenpac and Deloitte (knowledge partner), along with PHDCCI annual sponsors, DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd; Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram; R E Rogers; Trident Group; Ajit Industries Pvt Ltd; Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd.; Hindware Sanitary; Jindal Steel; Modern Automobiles; P S BEDI & Co.
Regards,
Abha Singh
Executive Officer, Media Team