Sustainability on the Rise: MSMEs Gear Up to Broaden Environmental Policies, Finds SIDBI D&B SPeX

One of the highest levels in recent years, the index reflects growing willingness (+3%) despite softer awareness and implementation. MUMBAI, India, Oct. 15, 2025 /PRNewswire/ -- Dun & Bradstreet, a leading global provider of business decisioning data and analytics, along with SIDBI, released Sustainability Perception Index (SPeX), referred to as the 'Green Pulse Indicator' for April - June 2025 period. SPeX evaluates MSME's perception of sustainability across three dimensions: willingness, awareness, and implementation. The SPeX rose by 20% year-on-year to reach 65 in Q2 2025, marking one of the highest levels in recent years. The overall trend remains upward, despite a few quarterly pullbacks. While awareness and implementation show some moderation, the continued rise (+3%) in willingness points to strong intent that can be converted into action with the right support. Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "MSMEs are steadily advancing on their sustainability journey, as reflected in the 20% year-on-year rise of the SPeX Index to 65 in Q2 2025, one of the highest levels recorded in recent years. The momentum, though marked by occasional retracements, signals a growing maturity in the way small and medium businesses view sustainability. Encouragingly, willingness to act is rising, with younger enterprises especially embracing green practices as part of their brand and growth strategy. Medium enterprises are setting the pace with strong implementation, while sectors like capital goods are still in the data-gathering stage. Regulation and cost efficiency continue to drive action. Notably, MSMEs are prioritizing environmental and governance goals, with DEI still playing a secondary role. The path forward is clear, simplifying certification processes and expanding access to technical expertise will be crucial to sustain this momentum and enable MSMEs to transition from intent to impact, ensuring they remain resilient, competitive, and aligned with global standards. For MSMEs, this evolution is not just about compliance, it marks a strategic shift toward long-term value creation, market differentiation, and future-readiness in an increasingly sustainability-driven economy." Dr. Ravindra Kumar Singh, Chief General Manager, Green Climate Finance Vertical, SIDBI, stated , "SIDBI - D&B Sustainability Perception Index Survey (which we term as 'Green Pulse') for the Quarter April – June 2025, highlights improved and growing commitment from MSMEs towards sustainability. Periodical SPeX reports render transitional views to us. The latest findings reveal that 66% of MSMEs are planning to expand their environmental policies, while 76% anticipate profitability gains from these measures. Results indicate that enterprises are turning increasingly responsive and are inclined to prioritise adoption of clean, green, and environment-friendly technologies, along with becoming more responsive to Environment & Social (E&S) factors. To address the capital needs of MSMEs, SIDBI's Green Scheme(s) are gearing the market in different and focussed arenas of sustainability including Energy Efficiency, Renewable Energy, E-Mobility and Circular Economy and Adaptation. The GIFT & SPICE schemes of MoMSME being implemented by SIDBI (directly as well as through 25 lending partners) are rendering momentum to green investments. Any loan to qualify as a Green Loan has to go through the filter of Green definitional framework, E&S framework, Green Technology Basket, such that energy saving and/or GHG emissions reductions are measured and tracked. SIDBI has been operating theme risk mitigant models to attend to perceived risks of innovative, new technologies or models. SIDBI is committed for sharpening responsive vision and green growth path of MSMEs. If you are thinking about green investments, meet your lenders." Highlights of the SPeX Report – Q2 2025 Overall Trends • The SPeX Index rose 20% YoY to 65, underscoring MSMEs' strengthening commitment to sustainability. • 66% of MSMEs plan to expand environmental policies, while 76% expect profitability gains from sustainability measures. • Profitability and cost reduction remain the strongest motivators, but uncertain returns and limited capital continue to hold back investments. • Green financing awareness increased across all segments, with younger and micro businesses leading the way. • Governance implementation strengthened across enterprise sizes, particularly among micro and medium firms. • ESG integration is deepening, with financial literacy and clearer policy communication emerging as key enablers for wider adoption. Awareness • Awareness moderated slightly, especially among small enterprises. • While green financing awareness is high, policy literacy remains weak: nearly half of young firms (under 5 years) are unaware of government support programs. • Younger businesses (under 25 years) boosted green financing