Nine in 10 SMEs enhances brand image through HKSMEA, Dah Sing Bank initiative

The survey showed that 72.2% acknowledged funding support for certification.

Close to 90% of small and medium enterprises (SMEs) taking part in the SME ESG Charter 2024 reported benefitting from enhanced brand image through the initiative, led by  Dah Sing Bank, Limited (Dah Sing Bank) and the Hong Kong Small and Medium Enterprises Association (HKSMEA).

The survey also showed that 72.2% of 302 SMEs, surveyed in December, acknowledged funding support for certification, and 50% for professional advice.

Furthermore, 62% have started implementing ESG-related initiatives with social responsibility ranking highest at 95.5%, followed by environmental protection at 93.2%, and corporate governance at 86.4%.

Meanwhile, 84.1% of SMEs agreed that good ESG practices can increase customer trust whilst 54.5% believed ESG practices can help gain access to large companies' supplier lists.

Additionally, 77% saw adopting ESG practices as ‘very important’; 61.5% said it would attract investors; 46.2% said it could reduce operating costs; 46.2% said it could increase employee morale; and 30.8% said it improved their operational management systems.

However, survey results showed that the top challenge was the rising cost of business (57.7%), followed by increased competition (46.5%), loss of customers (42.3%), and manpower shortages (36.6%).

Dah Sing Bank and HKSMEA said they will continue collaborating for the SME ESG Charter 2025 to encourage more SMEs to improve their environmental, social, and governance (ESG) performance.