UNDP, GLEIF and MAS to embark on Project Savannah to digitise basic ESG Credentials for MSMEs

The Monetary Authority of Singapore, MAS, has published a press statement to inform of a new project called Savannah „to develop digital Environmental, Social, and Governance (ESG) credentials for micro, small, and medium-sized enterprises (MSMEs)“ and promote ESG reporting among MSMEs. Specifically, project Savannah is a collaborative initiative between the United Nations Development Programme (UNDP), the Global Legal Entity Identifier Foundation (GLEIF), and MAS which aims to leverage digital initiatives such as MAS‘ project Greenprint (a project for the development of a technology and data platform for high-quality ESG data) to simplify the ESG reporting processes for MSMEs and enable them to transmit verified entity information and key ESG data to their stakeholders. The ultimate goal is to foster capital market access of small and medium size enterprises.
According to MAS, MSMEs face various challenges in meeting sustainability reporting requirements, including navigating complex reporting standards, limited resources and expertise for sustainability reporting, and high costs associated with technology and consulting services. Project Savannah aims to address these barriers by establishing a common framework of ESG metrics for MSMEs, allowing them to generate basic sustainability credentials.
The initiative will thereby focus on capacity building by enhancing existing initiatives to better support MSMEs in reporting ESG data. MAS will further deploy the ESGenome disclosure platform – the above noted technology and data platform for high-quality ESG data – as a digital reporting tool for MSMEs. This platform will simplify the reporting process by pre-filling metrics using verified data where ever possible, thereby leveraging on Greenprint’s partner network for artificial intelligence and data capture solutions.
To ensure the accessibility and trustworthiness of ESG data, the ESG credentials generated by MSMEs will be recorded in the Global Legal Entity Identifier (LEI) System. The LEI System provides a global business identity and maintains standardized and high-quality legal entity reference data, making the ESG credentials easily accessible to authorized third parties worldwide. This accessibility enables MSMEs to participate in global supply chains and fulfill the requirements of ESG reporting and analysis.
UNDP, GLEIF, and MAS plan to engage with regulators, financial institutions, and corporations to refine the project’s scope and execution to develop a „multi-jurisdictional proof of concept“ which is expected to be launched „at the 2023 UN Conference of the Parties (COP28) in Dubai“.