Micro-, small, and medium-sized enterprises, collectively known as MSMEs, face unique challenges in pursuing sustainability. In contrast, large companies are fully equipped with the resources necessary to think beyond profitability and consider a more holistic approach by assessing the Environmental, Social, and Governance (ESG) aspects of their operations. These companies are also facing increasing pressure to comply with evolving sustainability standards; pressure that more often or not trickles down to the smaller players in their value chain — the MSMEs. For most MSMEs, the urgency of keeping the business afloat often outweighs the long-term benefits of integrating sustainable practices and policies. With limited expertise in the matter, MSMEs find themselves in a crosswind regarding ESG. A successful ESG pursuit is majorly reliant on a strong will to go above and beyond today's needs for tomorrow's benefit. Despite these challenges, Indonesian MSME–Moela took the initiative and sought to assess their ESG performance with the guidance of Pioneer Consulting Asia Pacific (PCA).
Moela Creative Agency is an Indonesian marketing-based agency specializing in photography, brand marketing, design, and social media management. Established in 2020, Moela is a dynamic and compact company with a youthful spirit dedicated to empowering local brands and delivering high-quality creative solutions. Despite its startup nature, Moela proactively undertook an ESG assessment with PCA to jumpstart Moela's sustainability journey.
What did PCA do?
PCA meticulously crafted a customized assessment to evaluate Moela's ESG performance. The assessment was based on internationally recognized benchmarks and frameworks, including CDP, GHGP, MSCI, SGX, and UNGC. Ultimately, PCA developed a three-part assessment that examines environmental, social, and governance aspects to determine Moela's position in terms of ESG readiness. PCA additionally took a robust approach to the environmental assessment, assisting and educating Moela in calculating all scope emissions. The complete assessment involved a hands-on yet efficient interview process to compile details and obtain insights from Moela's founders. Through a collaborative effort, the assessment results, coupled with the comprehensive process, played a pivotal role in broadening Moela's perspective on its operations.
What was the benefit for Moela?
“This assessment has definitely been an eye-opener for us, making us think about things we’ve never considered before,”
expressed the Moela founders. This experience fostered a newfound commitment to integrating sustainability in the long term for Moela. It was discovered through this collaboration that asking the right questions is far more important than having the answers. While sustainability may seem like a distant aspiration for many small businesses, this perception may arise because they have yet to start asking the right questions. Moela embarked on its sustainability journey by delving into questions that had not been considered before—questions that scrutinized their practices in environmental, social, and governance aspects. PCA served as a connecting force, translating the intricate terminologies and standards of sustainability to an up-and-coming MSME that was eager to take the leap and learn about the relevance of sustainability to their operations.