OCBC and Enterprise Singapore (EnterpriseSG) have launched a new initiative – the OCBC SME Start-ESG Programme – to assist SMEs in enhancing their sustainability performance.
The programme will help SMEs establish a baseline measurement of their sustainability metrics, receive expert guidance on sustainable practices, and gain access to sustainability-linked loans (SLLs) from OCBC.
OCBC expects 300 SMEs to participate in this programme and plans to extend SLLs to them. EnterpriseSG will support up to 70% of eligible costs for the annual sustainability performance assessment over a three-year period.
Through this programme, SMEs will be able to:
- Stay competitive: By establishing a baseline measurement of their sustainability performance, SMEs can enhance their relevance and competitiveness to meet sustainability criteria required by prospective large corporate clients.
- Improve their sustainability performance: SMEs will receive guidance from OCBC’s sustainability experts, gaining key insights and advisory support to implement sustainable practices.
- Access sustainability financing: The baseline measurement will enable SMEs to secure an SLL from OCBC, allowing them to finance their sustainability initiatives. The cost of borrowing will be directly linked to their sustainability performance.
- To assess SMEs’ sustainability performance under this programme, OCBC has partnered with EcoVadis, a global leader in ESG assessments, and ESGpedia, a leading regional carbon management solution provider. EcoVadis will evaluate SMEs’ performance across four themes – Environment, Labour and Human Rights, Ethics, and Sustainable Procurement – while ESGpedia will assess greenhouse gas emissions.
Linus Goh, Head of Global Commercial Banking, OCBC, stated: “Going green is good for business. Our SME and corporate customers are increasingly adopting sustainable methods and financing to future-proof their businesses.
“As multinational and regional corporates formalise their net-zero ambitions and decarbonisation targets, SMEs that are sustainability-ready stand out and gain new business opportunities within supply chains.
“We are excited to collaborate with Enterprise Singapore on this initiative to equip SMEs for the expanding green economy.”
Geoffrey Yeo, Assistant Managing Director of Enterprise Singapore, remarked: “Sustainability is becoming a key driver of long-term success for businesses. Enterprise Singapore is pleased to partner with OCBC on the SME Start-ESG Programme, which provides essential tools to help businesses set targets, take action, and measure their sustainability performance.
“This initiative will lay the foundation for more SMEs to begin their sustainability journey and unlock opportunities for sustainable financing to support their growth.”
One SME that has benefited from OCBC’s sustainability support is Anywheel, a leading bicycle-sharing provider in Singapore. OCBC introduced Anywheel to the EcoVadis ESG Rating, enabling the company to complete its first assessment in 2024.
This process helped Anywheel identify gaps in its sustainability strategies. Following the assessment, OCBC extended an SLL to Anywheel to support the renewal and expansion of its fleet, incorporating year-on-year improvement targets for its EcoVadis ESG Rating.
This new programme builds on OCBC’s ongoing efforts to assist SMEs in adopting sustainable business practices and enhancing their ESG performance.
In November 2020, OCBC launched the OCBC SME Sustainable Finance Framework in Singapore, making it simpler and more cost-effective for SMEs to access sustainable financing of up to S$20 million.
The framework has since been expanded to Malaysia, Indonesia, and Hong Kong. Since its launch, nearly 4,000 SMEs in Asia across various industries have secured green and sustainability-linked loans with OCBC.
Over the past three years, OCBC has curated a series of webinars to address sustainability challenges faced by SMEs. These webinars have featured experts, solution providers, and business leaders discussing topics such as “Harnessing Solar Energy for Business Success,” “Creating an Energy-Efficient Business,” and “Understanding Carbon Footprints.”
These sessions have helped SMEs build knowledge on sustainability issues and facilitated their transition towards greener business models.
In 2021, OCBC introduced the SME Energy Efficiency Assessment (SMEEA) tool in collaboration with the Building and Construction Authority. This free online self-assessment tool enables SME customers to gain easy access to green building certification and finance.
It helps businesses understand the impact of their energy consumption and identify optimisation strategies. The SMEEA tool was rolled out in Malaysia and Hong Kong in 2024.
OCBC remains committed to empowering SMEs on their sustainability journey, equipping them with the knowledge, tools, and financial support needed to thrive in the evolving green economy.
