Indian Small & Medium Industries Empowered To Take Climate Action

Micro, small and medium sized businesses account for approximately 30% of India’s GDP, a 49% share of the country’s exports and employ 110 million workers. While doing so, Indian MSMEs collectively generate 110 million tonnes of carbon dioxide per year and are indispensable players for India to reach its net zero goal.

To overcome this hurdle , the SME Climate Hub yesterday launched the initiative’s dedicated landing page in India to empower micro, small and medium sized enterprises (MSMEs) in the region to take climate action.

Available virtually and free of charge, the SME Climate Hub helps MSMEs make a globally recognized climate commitment, and measure, report and reduce their emissions through a suite of tools and resources, including:

● Business Carbon Calculator, which enables MSMEs to identify priority sources of emissions within their business operations

● Climate Fit education course, which offers short, digestible modules as an introductory primer for MSME climate action

● A reporting tool, through which signatories of the SME Climate Hub can report their emissions data on a yearly basis, to track progress on their climate commitment and communicate their action to key stakeholders such as consumers, buyers and investors.

The MSME sector is the backbone of the Indian economy, championing local resource use and innovation, generating employment, and strengthening value chains. The sector accounts for about 30% of India’s GDP, a 49% share of exports and employs 110 million workers – making MSMEs an indispensable player for the country to reach its net zero target.

While Indian MSMEs increasingly perceive sustainability in a positive light and are taking proactive action for the climate, they must be supported with the right knowledge and tools to help them take concrete, actionable steps towards a collective net zero target.

The SME Climate Hub partnered with CRB to launch a pilot project earlier this year to create awareness and build capacity amongst Indian MSMEs across multiple sectors and states.

Over 200 forward-thinking Indian MSMEs have already made the SME Climate Commitment. These businesses join 6,500+ global counterparts in committing to halving emissions by 2030, and reaching net zero by 2050.

By joining the SME Climate Hub, Indian small businesses are strengthening the case for MSME climate ambition in India and building a strong basis for evolving policy instruments and incentives for climate action in this sector.

Pamela Jouven, Director, SME Climate Hub, says, “The climate emergency requires rapid action across businesses of all sizes and sectors. MSMEs in India are proactively taking measures to be a part of the solution, and with additional support and guidance they can go much further and faster. The SME Climate Hub serves as an important starting point for businesses looking to begin their climate journey. By making the SME Climate Commitment and reducing emissions through the Hub’s tools and resources, MSMEs can cut costs, elevate their brand, navigate changing regulations and stay ahead of their competitors.”

Devyani Hari, Director, Centre for Responsible Business (CRB), says, “Businesses and their supply chains are extremely vulnerable to climate change and its impact on operations, infrastructure, availability of resources, and employee wellbeing. Despite barriers, an increasing number of small enterprises are taking initiative and embracing greenhouse gas reductions and other measures for sustainability. It is
important to scale climate ambition amongst Indian MSMEs and unify them on a common platform to signalto the world that Indian MSMEs can and will lead the charge in global decarbonization efforts.”

The SME Climate Hub is an initiative of the We Mean Business Coalition, the Exponential Road map Initiative, and the United Nations Race to Zero campaign, which simplifies and aids the decarbonisation process for MSMEs. This enables them to commit to and act upon climate targets aligned with limiting global temperature rise to 1.5°C.

The writer of this article is Dr. Seema Javed, an environmentalist & a communications professional in the field of climate and energy