Filipino SMEs Can SPARK Their Sustainability Potential

The pilot of a new initiative to foster sustainable business practices by Micro, Small and Medium Enterprises (MSMEs) in the Philippines has successfully concluded. Part of a wider collaboration between GRI ASEAN and the Philippines Department of Trade & Industry (DTI), the Sustainable Practices and Reporting Kickoff (SPARK) saw targeted activities to support 15 SMEs and 23 microenterprises in the country.

With an estimated 70 million MSMEs in ASEAN, making up 85% of employment and accounting for almost a fifth of regional exports, MSMEs are a vital component of the Filipino economy. Yet sustainability reporting practices, and an understanding of the contributions of MSMEs on sustainable development, is lacking.

The SPARK program explored the impacts of business activities on the economy, environment and society, and how these factors relate to resilient business operations. The pilot emphasized how sustainability practices can reduce risks and boost competitiveness, with a focus on developing key skills, particularly in communicating non-financial performance and progress through effective sustainability reporting.

Three SPARK plenary sessions took place between April and June, including one in-person event. Participants heard from:

• Jo Ann Eala, Vice-president and Head of Sustainability of Bank of the Philippine Islands, on how to incorporate sustainability practices into the business.
• Marla Garin-Alvarez, Vice President and Head of the Sustainability Office, BDO Unibank, who explored the available shared financing mechanisms for SMEs.
• Mia Azurin, Community Program Coordinator, Hope In A Bottle’s Aling Tindera (a program to divert plastic from nature), about sustainability opportunities in plastic waste management.
• David Teo, Executive Director, STACS ESGpedia, about tailoring technological abilities in sustainability reporting for smaller enterprises.

In July, the MSMEs benefited from one-to-one coaching sessions with a ‘panel of reactors’: Rachel Gumtang-Remalante (Philippines Securities & Exchange Commission (SEC)); Ellen Joyce Suficiencia (Central Bank of the Philippines (BSP)); and Marissa Argente (DTI Region 4a). SPARK concluded with a graduation ceremony on 9 August.

Katreena Pillejera, Country Manager for the Philippines, GRI ASEAN said:

Engaging MSMEs in sustainable business practices is a huge challenge yet a huge opportunity. This ambitious collaboration with the DTI aims to use the power of sustainability reporting to reach more MSMEs and build their understanding of the value that comes from understanding their impacts. Through the SPARK program we are off to a great start, and we look forward to putting the learning from the pilot into practice, which can not only benefit Filipino MSMEs but also provide valuable insights that apply to business in the wider region and beyond.

Emma Asusano, Director, DTI Bureau of Small and Medium Enterprise Development (DTI-BSMED) said:

By embracing sustainability, MSMEs can improve their operational efficiencies, reduce costs, and open doors to new markets that demand responsible business practices. More importantly, they can contribute to a broader national and global agenda for sustainable development, positioning themselves as key drivers of economic progress and social equity. In this sense, sustainability is not just a goal but a pathway to enduring success for MSMEs.

Ivan Gil Balmadrid, Proprietor, Tandu Food Hub said:

The GRI-DTI SPARK Program has opened our eyes to the finer details of our operations that we previously overlooked. From evaluating our carbon footprint to reviewing our investments in the community and workforce, this training has inspired us to adopt a more conscientious and sustainable approach to doing business.

Faith Lumban, Sustainability Officer with J&B Poultry Farm added:

Curious about sustainability reporting, I thought: What kind of information should it include? How can companies make their reports stand out? And most importantly, what’s the point of it? Through the SPARK Program, we've taken a very good first step. I gained a deeper understanding of how gathering and analyzing data can pinpoint areas for improvement within our business. While there's much work to be done, I hope to stay committed to creating a sustainable business for generations to come.

What’s still to come? 

SPARK is the first stage in the five-year GRI-DTI initiative, Embedding Sustainability in the Value Chain of MSMEs. This initiative aims to facilitate policy discussions and capacity building with enterprises, addressing key sustainability issues related to supply chain practices and responsible procurement.

Next steps will include the implementation of a ‘train-the-trainers’ program for staff in the DTI-BSMED, to equip them with the skills and knowledge to support Filipino SMEs in their sustainability journeys.

A workshop series on digital reporting with STACS ESGpedia is also under development. STACS ESGpedia is the official technology platform partner for the Single Accesspoint for ESG (SAFE) initiative, which complements GRI’s partnership with the Sustainable Finance Institute Asia (SFIA) through the GRI Sustainability Innovation Lab.