ESG Reporting and Disclosure for MSMEs

This chapter explores environmental, social, and governance (ESG) reporting and disclosure for micro, small, and medium enterprises (MSMEs), emphasising its strategic importance for sustainability, competitiveness, and organisational transparency. It delineates the definition, scope, and core dimensions of ESG reporting, environmental stewardship, social responsibility, and governance ethics, underscoring its role in enhancing stakeholder trust and regulatory readiness. It critically examines global and national ESG frameworks and considers how MSMEs can implement appropriate frameworks through phased or hybrid approaches. It further addresses sector-specific challenges, including resource constraints, data limitations, and complex reporting standards, while highlighting digital technologies, artificial intelligence, and blockchain as cost-effective mechanisms for credible disclosure. Drawing on illustrative case studies, the chapter demonstrates how transparent ESG reporting can improve market access, investor confidence, and supply chain integration, framing it as a strategic tool for resilience, innovation, and long-term value creation in the rapidly evolving global economic landscape.