ESG TRIVIA
Building Supply Chain Resilience:
Why Greening Matters for SMEs
Why Greening Matters for SMEs
02 May 2025
Building Supply Chain Resilience: Why Greening Matters for SMEs
02 May 2025
ESG Trivia
US$237 billion—that is the revenue Central Bank of Malaysia (Bank Negara Malaysia, BNM) estimates export-oriented SMEs in ASEAN are at risk of losing, if they delay shifting to greener practices while overseas customers race ahead.
SMEs contribute up to 60% of GDP and 85% of jobs in some ASEAN economies. The parallel with Hong Kong is striking: SMEs account for 98 % of businesses and 45 % of private-sector employment here, so the same market signal is coming our way.
PIE Strategy acted as research partner and lead author of the new Greening Value Chain Playbook for ASEAN, by the United Nations Development Programme (UNDP), the Asian Development Bank (ADB) and BNM.
SMEs contribute up to 60% of GDP and 85% of jobs in some ASEAN economies. The parallel with Hong Kong is striking: SMEs account for 98 % of businesses and 45 % of private-sector employment here, so the same market signal is coming our way.
PIE Strategy acted as research partner and lead author of the new Greening Value Chain Playbook for ASEAN, by the United Nations Development Programme (UNDP), the Asian Development Bank (ADB) and BNM.
PIE Strategy acted as research partner and lead author of the new Greening Value Chain Playbook for ASEAN, by the United Nations Development Programme (UNDP), the Asian Development Bank (ADB) and BNM.
Launched at April’s ASEAN Finance Ministers & Central Bank Governors Meeting, the study distils lessons from Malaysia’s blended-finance GVC pilot and insights from in-depth interviews with more than 50 government, finance and industry leaders. It flags three recurring roadblocks:
1. Business case – Owners struggle to see near-term ROI when neither regulators nor buyers currently ask for carbon data.
2. Capacity gap – Emission factors look like hieroglyphics; free tools exist but go under-used.
3. Clarity challenge – Overlapping frameworks leave suppliers guessing which one “really counts.”
Hong Kong SMEs voiced similar concerns in recent focus groups for shaping the refreshed Caring Company Scheme.
Launched at April’s ASEAN Finance Ministers & Central Bank Governors Meeting, the study distils lessons from Malaysia’s blended-finance GVC pilot and insights from in-depth interviews with more than 50 government, finance and industry leaders. It flags three recurring roadblocks:
1. Business case – Owners struggle to see near-term ROI when neither regulators nor buyers currently ask for carbon data.
2. Capacity gap – Emission factors look like hieroglyphics; free tools exist but go under-used.
3. Clarity challenge – Overlapping frameworks leave suppliers guessing which one “really counts.”
Hong Kong SMEs voiced similar concerns in recent focus groups for shaping the refreshed Caring Company Scheme.
Six tactical levers—two quick wins
The Playbook groups solutions into six tactical levers (regulation, finance, supply-chain anchoring, communications, data, innovation). Two might offer quick wins for Hong Kong corporates and suppliers:
- Anchor-buyer pullLarge corporates can weave simple carbon-disclosure clauses into purchase orders—e.g., “report Scope 1 & 2 in year one, Scope 3 by year three”. Pair the ask with co-funding start-up costs for carbon software or audits. Suppliers gain a clear roadmap; buyers secure the Scope 3 data they increasingly need for ESG filings.1
- Demystify carbon metricsTreat emission factors like exchange rates: kilowatt-hours × factor = kilograms CO₂e. Start with electricity, stationary fuel and vehicle fuel; familiarity lowers the intimidation barrier and “good enough” beats perfection for a first measurement cycle.2
Companies can reinforce both wins by directing suppliers to the updated Caring Company Scheme, which now offers free resources and capacity-building programmes to empower SMEs on carbon and broader ESG literacy.
The Playbook also unpacks the other levers—progressive green finance, profit-centred messaging, harmonised data platforms and innovation pilots—in practical detail.
We hope its insights spark meaningful dialogue in Hong Kong among policymakers, financiers and business leaders on how to create the conditions that motivate and enable SMEs to future-proof their competitiveness while sustaining near-term profitability, thereby strengthening the city’s overall resilience.
We hope its insights spark meaningful dialogue in Hong Kong among policymakers, financiers and business leaders on how to create the conditions that motivate and enable SMEs to future-proof their competitiveness while sustaining near-term profitability, thereby strengthening the city’s overall resilience.
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