The Micro, Small, and Medium-Sized Enterprises (MSMEs) in the Philippines have successfully completed the pilot program of a new initiative aimed at promoting sustainable business practices. Targeted activities to support 15 SMEs and 23 microenterprises in the Philippines were part of the Sustainable Practices and Reporting Kickoff (SPARK), a larger partnership between GRI ASEAN and the Department of Trade & Industry (DTI) of the Philippines.
MSMEs are an essential part of the Filipino economy, with an estimated 70 million MSMEs in ASEAN, accounting for nearly a fifth of regional exports and 85% of employment. However, there is a lack of knowledge regarding MSMEs' contributions to sustainable development and sustainability reporting practices.
The SPARK program investigated how resilient business operations are related to the effects that business operations have on society, the environment, and the economy. The pilot highlighted the ways in which sustainability practices can lower risks and increase competitiveness, with an emphasis on the development of critical competencies, particularly in the area of effectively communicating non-financial performance and advancement through sustainability reporting.
A "panel of reactors" consisting of Marissa Argente (DTI Region 4a), Ellen Joyce Suficiencia (Central Bank of the Philippines), and Rachel Gumtang-Remalante (Philippines Securities & Exchange Commission) provided one-on-one coaching sessions to the MSMEs in July. On August 9, SPARK came to an end with a graduation ceremony.
GRI ASEAN's Country Manager for the Philippines, Katreena Pillejera, stated:
Getting MSMEs involved in sustainable business practices presents both a great opportunity and a great challenge. Through the power of sustainability reporting, this ambitious partnership with the DTI hopes to reach more MSMEs and increase their awareness of the benefits that come from knowing their impacts. We are off to a great start with the SPARK program, and we look forward to putting the lessons learned from the pilot into practice. These lessons can not only help Filipino MSMEs, but they can also offer insightful information that can be applied to business in the region and beyond.
Director of the DTI Bureau of Small and Medium Enterprise Development (DTI-BSMED), Emma Asusano, stated:
MSMEs can increase operational effectiveness, cut expenses, and gain access to new markets that require ethical business practices by embracing sustainability. More significantly, they can establish themselves as major forces behind social justice and economic advancement by supporting a more expansive national and international agenda for sustainable development. In this way, for MSMEs, sustainability is a means, not an end in itself, of long-term success.