It is quite challenging to implement the ESG in an developing small scale group industry. This is because lack of knowledge and awareness to the employer and employees, and no strict legal regulations on small scale industries. Personal behavior and financial struggles are also a part of this challenge. Consumer demand, Access to capital, regulatory compliance, employee retention and recruitment, limited resources, lack of expertise, Perceived complexity are all factors that challenge to implement effective ESG in small business.
Challenges in implementing ESG at small scale industry
by Sakthi Vinoth Asokan -
Number of replies: 4
In reply to Sakthi Vinoth Asokan
Re: Challenges in implementing ESG at small scale industry
by Adesanya Nurudeen -
In adapting to national business planning and micro-business regulations, small-scale businesses need to be confident. They can negotiate such obstacles despite challenges that might include limited awareness and resources. It enables them to successfully implement ESG measures without much burden by focusing on energy consumption reduction, getting to zero waste, taking advantage of government policies, and staff training.
In reply to Sakthi Vinoth Asokan
Re: Challenges in implementing ESG at small scale industry
by Leela Julong -
Small-scale industries often face significant hurdles when implementing ESG practices. Limited budgets, lack of specialized knowledge, and immediate financial pressures can make prioritizing sustainability seem daunting. However, with targeted support, educational resources, and access to affordable solutions, these businesses can gradually integrate ESG principles and enjoy long-term benefits, both environmentally and economically.
In reply to Leela Julong
Re: Challenges in implementing ESG at small scale industry
by Ee Beng Tan -
Thanks Leela. On the other hand, I believe that ESG, when view from the perspective of risks and opportunities for SMEs, it will change the perspective that ESG is an investment rather than a liability. The problem now in my opinion is that people can't see the return because their ESG transformation priority is not based on their business model. The better way is to understand the business model and see how ESG can make it better.
In reply to Sakthi Vinoth Asokan
Re: Challenges in implementing ESG at small scale industry
by Mulugeta Gashaw -
Implementing Environmental, Social, and Governance (ESG) practices in small-scale industries presents several challenges. Limited resources, both financially and in terms of expertise, make it difficult for smaller businesses to integrate ESG effectively. Many small businesses may also lack awareness of ESG’s importance or how to adopt it, resulting in a low prioritization of sustainability efforts. High initial costs for implementing sustainable technologies and systems, along with navigating complex regulations, can further hinder adoption. Additionally, collecting reliable ESG data and ensuring compliance across the supply chain can be challenging for businesses with limited infrastructure. Lastly, the short-term focus on immediate profits often takes precedence over long-term sustainability goals, making it harder for small businesses to fully embrace ESG principles. Despite these challenges, small-scale industries can still find ways to gradually adopt ESG practices, benefiting from long-term growth and resilience.