Singaporean bank DBS and audit and consulting firm Deloitte have unveiled the Sustainability Accelerator Tool, a user-friendly solution designed to help small and medium-sized enterprises (SMEs) assess their sustainability maturity levels that, in turn, will enable them to better identify and address gaps in their sustainability journeys more effectively.

As well, DBS recognizes the need to upskill SMEs to better compete in the green economy. With this in mind, the bank and Deloitte have co-developed a tool to help companies in their green transition with clear roadmaps and practical recommendations.

The tool aims to empower 1,000 SMEs in Singapore over the next 12 months. In addition, DBS and Deloitte will progressively roll it out to other key markets where the bank has strong presence from next year onwards.

Only 37% of SMEs, according to a DBS-Bloomberg 2023 study on sustainability readiness, have a clear roadmap on how to achieve their goals. The tool addresses these challenges by enabling SMEs to measure their maturity levels across four pillars: governance framework, sustainability strategy, risks and opportunities, and metrics and targets.

These pillars align with the Task Force on Climate-related Financial Disclosures framework, a globally recognized reporting structure. This consistency, the companies argue, provides SME stakeholders with transparent, clear and comparable disclosures. In addition, the tool aligns with funding areas from Enterprise Singapore’s Enterprise Development Grant, enabling businesses to better access relevant funding and incentives.

The tool offers several distinct advantages:

• Industry-specific analysis: The tool delivers detailed, industry-specific insights that address the unique sustainability challenges and opportunities within different sectors, offering more relevant and actionable data.
• Customized strategic recommendations: The tool categorizes SMEs into three different stages of sustainability development – emerging, maturing or leading – and provides tailored recommendations to help SMEs address gaps in their respective journeys.
• Regional adaptability: The tool’s scalability ensures it can be further adapted to various languages and regional contexts across Asia, making it a versatile and practical solution for SMEs in different markets.

SMEs will also receive a customized sustainability readiness report that provides a structured analysis of their company’s sustainability maturity with insights to address the specific challenges they may be currently facing.

Businesses that are keen to advance their sustainability journeys, the bank adds, can choose to participate in DBS’ ESG Ready Programme, a holistic initiative that helps companies build capability and capacity in this space. Participating companies will also be able to access a panel of sustainability experts, including specialists from Deloitte, to effectively guide them on their transition.

“DBS is one of the first financial institutions to build up an ecosystem of sustainability partners, supporting SMEs in their decarbonisation journeys,” adds Koh Kar Siong, the bank’s group head of corporate and SME banking. “The Sustainability Accelerator Tool is the latest in our ongoing efforts, where we strive to futureproof SMEs though practical and holistic solutions. Through this, we want to empower businesses to take charge of their sustainability journey, and partner them in their green transition.