Enabling Sustainable Finance for Small Businesses

Vayana recently hosted a session led by Niharika Srivastava (Tech Lead-Rabobank, Netherlands) focusing on the critical topic of ESG-linked financing for Micro, Small, and Medium Enterprises (MSMEs). This discussion explored the growing importance of ESG, particularly in the Indian context, and covered key areas such as:

1. Challenges and opportunities integrating ESG rating mechanisms and embedding them into financing for MSMEs

2. Benefits and significance of ESG financing for both financial institutions and MSMEs

3. The necessity for large corporations to have full oversight of ESG standards within their supply chain partners.

The session provided valuable insights into global trends in ESG financing, comparing regulatory frameworks and practices in leading markets like the UK, the US, and Europe vis-a-vis the current landscape in India. It also focuses on how the fintech ecosystem can play a crucial role in enabling ESG-linked Supply Chain Finance (SCF)/trade finance for MSMEs through their innovative technological capabilities.