16 Nov 2023

SGFIN is pleased to be a knowledge partner for the new “SME Financial Empowerment Programme” on “Green Financing for SMEs (Intermediate)” which was launched on 16^th November by Proxtera and the Global Fintech Institute (GFI) at the 2023 Singapore Fintech Festival.*

Although their individual environmental footprint is modest, the population of small and medium sized enterprises (SME’s) means that they are undeniably the binding fabric of any economy. Typically, SMEs account for more than 99% of businesses, and close to 60% of value added of the business sector, moreover they contribute around 70% of employment within a country.**

SMEs support sustainability both directly and indirectly through the integral roles they play in designing and implementing solutions to the climate crisis and in their capacity as eco-innovators and entrepreneurs. Moreover, through their own business activities they are also the adopters and diffusers of these innovations.

The course on green financing for SME’s has been rigorously developed together with input from key partners including the Monetary Authority of Singapore (MAS), the International Finance Corporation (IFC), and the United Nations Development Programme (UNDP). The programme “is aimed at helping MSMEs build financial, digital literacy skills and understand cross-border financial services relevant to them.”

SGFIN Deputy Director Associate Professor Zhang Weina was invited to contribute two modules for the programme. The first was the opening module for the programme, titled “Key Elements of Sustainable Business Models” which highlighted that an SME can afford to be focussed on sustainability, and introduced the fundamental attributes of sustainable business models. This came with a brief run-through of the steps needed to develop and implement more sustainability focussed business models. Weina’s second module covered an “Introduction to Green Financing Instruments” reviewing the strategies and actions that financial institutions can take to accelerate the transition towards a more sustainable economy, managing more adequately current risks and barriers.

SGFIN Senior Research Fellow and Energy Transition Lead Dr. David Broadstock was also invited to contribute. In one module David provided an overview of “Transforming Strategies for Sustainable SMEs”  discussing some of the factors that can make business transformation a daunting prospect as well as some strategies to help make the change process easier to begin, manage, and complete. David also provided a second module which gave an “Introduction to Certification and Business Opportunities for SMEs” describing the objectives and benefits of certification, and how an SME may get started in their certification journey.

SGFIN is privileged to be actively contributing to knowledge transfer and outreach through this programme which will help to empower MSMEs across the globe to embrace sustainable business practices. MSMEs make up a huge share of our business and economic systems, and far too often lack the resources or knowledge to adopt sustainable business models.

* Proxtera (www.proxtera.com) was launched in 2020 as the commercialization of the Business sans Borders (BSB) initiative by MAS (https://www.mas.gov.sg/) and the Infocomm Media Development Authority (IMDA) (https://www.imda.gov.sg/), seeks to foster global digital infrastructures to enhance digital and financial inclusivity for SMEs. The Global Fintech Institute (GFI) (https://globalfintechinstitute.org/) is a Singapore-headquartered, not-for-profit fintech think tank and educational institution. GFI sets its sights on becoming a globally recognised professional credentialing body for Fintech professionals. GFI creates the curriculum, code of ethics & professional conduct, and examinations that underlie the Chartered Fintech Professional (CFtP) designation.

** See OECD Platform on Financing SMEs for Sustainability https://www.oecd.org/cfe/smes/financing-smes-sustainability.htm for more information, facts and figures.