MAS embarks on initiative to digitise basic ESG Credentials for MSME

The central bank will collaborate with UNDP and GLEIF for the initiative.

The Monetary Authority of Singapore (MAS), together with the United Nations Development Programme (UNDP), and Global Legal Entity Identifier Foundation (GLEIF), will collaborate to develop digital Environmental, Social and Governance (ESG) credentials for micro, small and medium-sized enterprises (MSMEs) worldwide.

The initiative, called Project Savannah, will simplify the ESG reporting process for MSMEs by leveraging digital initiatives such as MAS’ Project Greenprint, to generate ESG data credentials that can be housed in MSMEs’ Legal Entity Identifier (LEI) records. 

“MSMEs will thus be able to transmit verified entity information and key ESG data to their business partners, strengthening their ability to gain access to global financing and supply chain opportunities,” the MAS said.

MAS, UNDP, and GLEIF will be supporting Project Savannah on three fronts: capacity building, simplified reporting, and accessible data.

On capacity building, the UNDP and MAS will review and enhance existing capacity-building initiatives to bolster MSME’s efforts to report ESG data. 

To enable simplified reporting, MAS will deploy the ESGenome disclosure platform, presently co-piloted with the Singapore Exchange as part of MAS’ Project Greenprint, as a digital reporting tool for MSMEs to populate the ESG metrics needed to generate their basic ESG credentials.

Meanwhile, MSMEs will have access to ESG data via the Global LEI System, which provides one global business identity behind every business. 

“This will enable an MSME’s basic ESG credentials to be trusted and accessible to any authorised third party anywhere in the world. It will also ensure that the entity is easily observable within the global product and service supply chains in which they participate, thus satisfying an essential prerequisite of ESG reporting and analysis,” the MAS said.