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Climate reporting: ESG start-ups jump in to help SMEs calculate supply-chain emissions to meet tighter requirements
- Many SMEs in the region have not started reporting on greenhouse-gas emissions, says Stacs co-founder Benjamin Soh
- Fintech company Stacs and ESG consulting firm Downundered are among those offering tools for SMEs to measure emissions
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Environmental, social and governance (ESG) start-ups are developing tools to allow firms to calculate the carbon emissions from small and medium-sized enterprises (SME) and suppliers along their value chains to meet tightening climate disclosure requirements.
The largest companies are coming under growing pressure to disclose these indirect emissions, known as scope 3 emissions, in line with sustainability reporting requirements in the region and globally.
In Hong Kong, it will be mandatory for the largest listed firms to report on their scope 3 emissions for the financial year beginning January 1, 2026, according to bourse operator Hong Kong Exchanges and Clearing, which released conclusions to a consultation on the enhancement of climate-related disclosures under its ESG framework last month.
The tightening disclosure requirements around scope 3 mean that SMEs will need to start disclosing their emissions if they want to do business with the largest firms, said Benjamin Soh, co-founder and managing director of Singapore-based ESG fintech firm Stacs.
“Many companies haven’t started or are starting for the first time,” Soh said. “The value here is we are trying to provide a solution to enable [calculation of emissions along] the supply chain.”
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