The growing campaign to practice sustainability reporting has led more and more companies to start shifting focus to the sustainability of their supply chains. In the Philippines, large corporations have started to issue supplier accreditations based on sustainability practices as a requirement. And even corporate finance, like banks, have started to measure the sustainability practices of their borrowers in compliance with the Bangko Sentral ng Pilipinas (BSP) regulations. 

 

The challenge, however, is how to encourage and create the buy-in for SMEs to embed sustainability in their operation and make them understand the enormous benefit and opportunities it would bring. 

 

The PCCI SDG Committee, in partnership with the DLSU Animo Labs and GRI, is running a webinar series on sustainability Reporting to educate and inform SMEs on its benefits and importance especially now that large corporation is requiring their supply chains to be subscribe to and be compliant to sustainability practices.

 

Sustainability as defined by the United Nations Brundtland Commission (1987), is “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”

 

Daniela Coronacion, manager, GRI ASEAN Regional Program said that there is a now a growing demand from customers that their products be sustainably produced. 

 

She said 75 percent Filipino consumers prefer sustainable and eco-friendly brands while 92 percent of Filipino shoppers – millennial and Gen Z groups being the majority – prefer products made from natural ingredients, believed to be healthier and better for their well-being.

 

Coronacion said that the pressure to practice sustainability reporting is coming from mounting evidence on climate change.

 

“Companies that focus on environmental change, social and geopolitical sustainability are likely to incur lower costs of debt and equity and have the potential to outshine their market competitors within a single decade,” Coronacion said.

 

Ma. Alegria Sibal Limjoco, director, PCCI SDG Committee, said that the SR webinar series will continue until more and more SMEs are equipped with the right information and eventually will embed sustainability practices in their business operation.

 

She said even the export markets, especially those in the EU and North America, have started to require sustainability reporting as a qualification for supplier accreditation, not only for direct suppliers and exporters but also for next-level suppliers.  --- Donna Angulo, Ma. Joanna Pascual