Heaptalk, Jakarta — SME digital finance platform Modalku collaborates with ESG data and technology company STACS to launch the ESGpedia platform in Indonesia (10/17). The platform aims to support ESG reporting and sustainable financing services for MSMEs.
ESGpedia enables MSMEs in Indonesia to obtain free access to a digital platform that simplifies multiple ESG standards and frameworks. The platform also automatically converts operational data such as fuel, refrigerant, and electricity consumption to greenhouse gas (GHG) emissions under the standard GHG Protocol, localized to Indonesia. That way, MSMEs and Capital can gain broader insights regarding the company’s carbon footprint in facilitating sustainable financing decisions.
Through the collaboration, Modalku will encourage the use of STACS’ ESGpedia in Modalku’s MSME ecosystem to report their ESG easily. The collaboration will also explore the provision of sustainability-linked and green financing options for MSMEs, based on data aggregated and collected on ESGpedia.
Managing Director at STACS Benjamin Soh is optimistic that empowering SMEs across ASEAN is key to accelerating the region’s transition to Net Zero and maintaining its competitiveness in the global supply chain.
“We are delighted to be partnering with Funding Societies to empower its ecosystem of SMEs in Indonesia in their ESG reporting journey. The partnership’s exploration of sustainability-linked and green financing options based on ESG data aggregated and collected on ESGpedia is also a step forward in improving access to sustainable financing for MSMEs in the region,” Benjamin said.
Accessing over 5 million sustainability data points
In addition, Modalku will be able to leverage ESGpedia’s data of more than 5 million sustainability data points and 107,000 company profiles collected and aligned by AI-powered engines. The ESG data is valuable in making the appropriate lending decisions.
Meanwhile, Country Head of Modalku Arthur Adisusanto said, “We are delighted to be joining forces with STACS ESGpedia, to take our mission one step further, enabling MSMEs to be introduced to a platform that allows them to disclose ESG data in a straightforward way.”
Arthur further added that this partnership will provide Indonesian MSMEs the ability to be more conscious about their activities and the financial resources necessary to invest in eco-friendly technologies, reduce their carbon footprint, and implement sustainable business practices.
This collaboration is part of the ASEAN Single Access Point for ESG Data (SAFE) pilot initiative, led by the Sustainable Finance Institute Asia (SFIA) to address ESG data and disclosure gaps in ASEAN markets. The launch of the ESGpedia platform in Indonesia follows the previous initiatives in other ASEAN countries, including the Philippines with PDS Group in September and Vietnam with Bamboo Capital Group in August.
