DBS Group Holdings Ltd.
DBS Group Holdings Ltd.
04/17/2024 | Press release | Distributed by Public on 04/18/2024 03:59
DBS Hong Kong survey reveals SMEs' readiness for sustainability | Hong Kong.17 Apr 2024.5
DBS Hong Kong survey reveals SMEs' readiness for sustainability | 繁體
Hong Kong.17 Apr 2024
Nearly 70% SMEs aspire to integrate ESG into business operations while highlighted financial constraint as the leading challenge
Hong Kong, 17 Apr 2024 - DBS Bank (Hong Kong) Limited ("DBS Hong Kong") SME Banking today announced the DBS BusinessClass SME Sustainability Report and reveals a majority of small and medium-sized enterprises (SMEs) embrace sustainability, but financial constraint remains as the leading challenge. Close to 70% of SMEs surveyed asserted interest in sustainability, indicating a trend for integrating Environmental, Social, and Governance (ESG) strategies or sustainability measures into their business operations.
The report was released in conjunction with the DBS BusinessClass: SME Sustainability Bootcamp, which aims to empower local SMEs to kick off their sustainable journey. The event was honoured by Christopher Hui, Secretary for Financial Services & the Treasury, HKSAR Government. In his keynote speech, he said, "Green development is a fundamental element for high-quality development, and sustainable development is an irrevocable mega-trend. We should seize every investment opportunity in green finance by leveraging Hong Kong's strong foundation and unique strengths, and to promote Hong Kong as the world-leading green finance center."
Consumer demands drive SMEs towards sustainable practices
The same report surveyed over 100 Hong Kong consumers, where the respondents express a strong inclination towards sustainable merchants as a vast majority (91%) have a positive impression of businesses embracing sustainability. Nearly 80% are willing to pay more for sustainable products, while 68% actively seek them out when choosing catering outlets or retailers. This signals a significant market demand for SMEs to transition towards more sustainable business models.
Among the surveyed SME respondents, more than a quarter (28%) of them has already started taking actions in sustainability. There are internal and external motivations for SMEs to adopt sustainable models: internally, social and ethical responsibility is the primary driver (60%) to transit in sustainable practices; while externally, to improve brand image (51%), fulfilling compliance with government regulations (47%) and demand from customers and other stakeholders (31%).
Wallace Lam, Managing Director and Head of Institutional Banking Group, DBS Bank Hong Kong, said, "As one of the first banks that signed up to United Nations' Net-Zero Banking Alliance, DBS has always put sustainability at the core, underpinned by our extensive expertise in green financing. We recognise that striving for carbon neutrality is not only a corporate responsibility, but also a catalyst for unlocking new business opportunities. As consumer preferences steer Hong Kong towards a sustainable future, making sustainability a pivotal element in the growth of businesses of all sizes, we extend our support to SMEs and empower their low carbon transformation."
Cost and expertise: top concerns for Hong Kong SMEs in pursuit of sustainability
SMEs show higher level of awareness towards regulatory-driven initiatives, as they prioritised their sustainability goals to focus on waste management (71%), followed by energy efficiency (54%), engaging in social impact initiatives such as community engagement, diversity and inclusion (33%), and adopting renewable energy (26%).
In particular, over half of the respondents are familiar (7%) and somewhat familiar (50%) with the Municipal Solid Waste (MSW) charging, and 34% stated that they are prepared in this regard. When it comes to the primary challenges anticipated by SMEs, cost and expertise are their top concerns, regardless of overall sustainability efforts or MSW preparation. Notably, 73% identified funding constraints as their top challenge in advancing sustainability, while 76% anticipated increased operational costs with MSW charging. Additionally, concerns regarding manpower and resources were prevalent, with 37% citing lack of manpower and resources for sustainable practices and 50% expressing similar concerns for MSW charging implementation.
Jolynn Wong, Managing Director and Head of SME Banking, DBS Bank Hong Kong, stated, "At DBS, we recognise the critical ambitions of SMEs and are committed to supporting their success through sustainability. We provide support to Hong Kong SMEs to transit to paperless operations, from banking privileges upon online business account opening, to merchant services offers through collaborations with like-minded partners. Additionally, our preferential loan financing empowers SMEs to cut their energy related carbon footprint by up to 30% through different low-carbon initiatives. DBS is set to empower SMEs to do well while doing good. Through these initiatives, we also hope to preserve 1,000 trees in Hong Kong."
DBS Hong Kong's support for SMEs' low-carbon transformation extends from account opening to financing
In partnership with KPay, a merchant payment services provider in Hong Kong, DBS Hong Kong has introduced its first offer with an aim at bolstering the low-carbon transformation efforts of SMEs.
Separately, DBS has also extended preferential loan pricing to participating SMEs putting low-carbon missions in action.
All in all, SME can enjoy low-carbon SME package that is worth up to HK$28,888, comprising of banking privileges upon successful business account opening online and preferential loan pricing from DBS Hong Kong, and merchant services offers from KPay, upon the completion of designated paperless tasks.
The DBS BusinessClass SME Sustainability Report 2024, interviewed 224 local SME representatives and 108 individuals under DBS Hong Kong BusinessClass in 28 February 2024 to 20 March 2024, shedding light on the sustainability landscape, understanding the pain points faced by SMEs and assessing their readiness towards MSW charging.
DBS BusinessClass, in collaboration with supporting organisations including CLP Power Hong Kong Limited, KPay, Hong Kong Retail Technology Industry Association, The Professional Validation Centre of Hong Kong Business Sector, Hong Kong Smart Catering Association, Institute of Dining Professionals, SME Sustainability Society and The ESG Consortium, hosted the "DBS BusinessClass: SME Sustainability Bootcamp" on 17 April 2024, aiming to provide inspirations on low-carbon transformation, extensive showcases, and practical resources to empower local SMEs to be prepared for the upcoming regulations and to kick off their sustainable journey.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
Wallace Lam, Managing Director and Head of Institutional Banking Group at DBS Bank Hong Kong (right); Jolynn Wong, Managing Director and Head of SME Banking at DBS Bank Hong Kong (left); Christopher Hui, Secretary for Financial Services & the Treasury, HKSAR Government (middle), today participated in "DBS BusinessClass: SME Sustainability Bootcamp" to support SMEs low-carbon transformation.
The report was released in conjunction with the DBS BusinessClass: SME Sustainability Bootcamp, which aims to empower local SMEs to kick off their sustainable journey. The event was honoured by Christopher Hui, Secretary for Financial Services & the Treasury, HKSAR Government. In his keynote speech, he said, "Green development is a fundamental element for high-quality development, and sustainable development is an irrevocable mega-trend. We should seize every investment opportunity in green finance by leveraging Hong Kong's strong foundation and unique strengths, and to promote Hong Kong as the world-leading green finance center."
Consumer demands drive SMEs towards sustainable practices
The same report surveyed over 100 Hong Kong consumers, where the respondents express a strong inclination towards sustainable merchants as a vast majority (91%) have a positive impression of businesses embracing sustainability. Nearly 80% are willing to pay more for sustainable products, while 68% actively seek them out when choosing catering outlets or retailers. This signals a significant market demand for SMEs to transition towards more sustainable business models.
Among the surveyed SME respondents, more than a quarter (28%) of them has already started taking actions in sustainability. There are internal and external motivations for SMEs to adopt sustainable models: internally, social and ethical responsibility is the primary driver (60%) to transit in sustainable practices; while externally, to improve brand image (51%), fulfilling compliance with government regulations (47%) and demand from customers and other stakeholders (31%).
Wallace Lam, Managing Director and Head of Institutional Banking Group, DBS Bank Hong Kong, said, "As one of the first banks that signed up to United Nations' Net-Zero Banking Alliance, DBS has always put sustainability at the core, underpinned by our extensive expertise in green financing. We recognise that striving for carbon neutrality is not only a corporate responsibility, but also a catalyst for unlocking new business opportunities. As consumer preferences steer Hong Kong towards a sustainable future, making sustainability a pivotal element in the growth of businesses of all sizes, we extend our support to SMEs and empower their low carbon transformation."
Cost and expertise: top concerns for Hong Kong SMEs in pursuit of sustainability
SMEs show higher level of awareness towards regulatory-driven initiatives, as they prioritised their sustainability goals to focus on waste management (71%), followed by energy efficiency (54%), engaging in social impact initiatives such as community engagement, diversity and inclusion (33%), and adopting renewable energy (26%).
In particular, over half of the respondents are familiar (7%) and somewhat familiar (50%) with the Municipal Solid Waste (MSW) charging, and 34% stated that they are prepared in this regard. When it comes to the primary challenges anticipated by SMEs, cost and expertise are their top concerns, regardless of overall sustainability efforts or MSW preparation. Notably, 73% identified funding constraints as their top challenge in advancing sustainability, while 76% anticipated increased operational costs with MSW charging. Additionally, concerns regarding manpower and resources were prevalent, with 37% citing lack of manpower and resources for sustainable practices and 50% expressing similar concerns for MSW charging implementation.
Jolynn Wong, Managing Director and Head of SME Banking, DBS Bank Hong Kong, stated, "At DBS, we recognise the critical ambitions of SMEs and are committed to supporting their success through sustainability. We provide support to Hong Kong SMEs to transit to paperless operations, from banking privileges upon online business account opening, to merchant services offers through collaborations with like-minded partners. Additionally, our preferential loan financing empowers SMEs to cut their energy related carbon footprint by up to 30% through different low-carbon initiatives. DBS is set to empower SMEs to do well while doing good. Through these initiatives, we also hope to preserve 1,000 trees in Hong Kong."
DBS Hong Kong's support for SMEs' low-carbon transformation extends from account opening to financing
In partnership with KPay, a merchant payment services provider in Hong Kong, DBS Hong Kong has introduced its first offer with an aim at bolstering the low-carbon transformation efforts of SMEs.
Separately, DBS has also extended preferential loan pricing to participating SMEs putting low-carbon missions in action.
All in all, SME can enjoy low-carbon SME package that is worth up to HK$28,888, comprising of banking privileges upon successful business account opening online and preferential loan pricing from DBS Hong Kong, and merchant services offers from KPay, upon the completion of designated paperless tasks.
The DBS BusinessClass SME Sustainability Report 2024, interviewed 224 local SME representatives and 108 individuals under DBS Hong Kong BusinessClass in 28 February 2024 to 20 March 2024, shedding light on the sustainability landscape, understanding the pain points faced by SMEs and assessing their readiness towards MSW charging.
DBS BusinessClass, in collaboration with supporting organisations including CLP Power Hong Kong Limited, KPay, Hong Kong Retail Technology Industry Association, The Professional Validation Centre of Hong Kong Business Sector, Hong Kong Smart Catering Association, Institute of Dining Professionals, SME Sustainability Society and The ESG Consortium, hosted the "DBS BusinessClass: SME Sustainability Bootcamp" on 17 April 2024, aiming to provide inspirations on low-carbon transformation, extensive showcases, and practical resources to empower local SMEs to be prepared for the upcoming regulations and to kick off their sustainable journey.
DBS BusinessClass, in collaboration with supporting organisations including Institute of Dining Professionals (from the left), Hong Kong Smart Catering Association, Hong Kong Retail Technology Industry Association, CLP Power Hong Kong Limited, KPay Merchant Service (from right four), The Professional Validation Centre of Hong Kong Business Sector, SME Sustainability Society, and The ESG Consortium, hosted the "DBS BusinessClass: SME Sustainability Bootcamp", aiming to provide inspirations on low-carbon transformation.
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About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named "World's Best Bank" by Global Finance, "World's Best Bank" by Euromoney and "Global Bank of the Year" by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named "World's Best Digital Bank" by Euromoney and the world's "Most Innovative in Digital Banking" by The Banker. In addition, DBS has been accorded the "Safest Bank in Asia" award by Global Finance for 15 consecutive years from 2009 to 2023.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region's most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.