Outlook Planet C3: Why MSMEs Should Join Sustainability Drive? MSME JS Ateesh Singh Explains

The MSME (micro, small, and medium enterprises) ministry on Tuesday said sustainability is not only about saving the planet but also about driving MSME growth. The government stated that sustainability becomes a smart business decision for MSMEs when they gain financial benefits from this approach.

 “Profitability is revenue minus expenditure. Whatever we do—whether in terms of policy, incentives, or compliance—it must incorporate elements of 'greening' that either reduce costs or increase revenue so that MSMEs can see clear financial benefits,” said Ateesh Kumar Singh, Joint Secretary of MSME ministry.

Calling it a crucial consideration for policy formations, Singh said when the government designs any scheme or even the major banking transition the sustainability initiatives must not only set modest targets but also act as foundational steps on the broader roadmap.

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He asserted that the energy transition program contemplated by the MSME ministry will target the country's larger, energy-intensive clusters. For this, the government’s initiatives must be supported and implemented by states, too, said Singh.

Under the 'Raising and Accelerating MSME program, the government urged every state to develop a roadmap for the MSME ecosystem. “Today, we have 34 such roadmaps—a game changer. Some states were already proactive, while others lagged behind, but now every state has a roadmap that includes various intervention programs and projects to support MSME development, the joint secretary added.

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‘Govt on ZED Certification’

Singh further informed that the central government is in advanced talks with the Ministry of Environment, Forest, and Climate Change to obtain ZED (zero defect zero effect) certification for pollution board clearances. “We will soon learn how the ZED standards will be implemented,” he said.

ZED certification is a voluntary certification that helps MSMEs to improve their manufacturing practices.

“Although the ZED certification is well-established for manufacturing, a significant portion remains at the bronze level. With the introduction of ZED 2.0, the regime is becoming stronger with additional elements of zero effect. However, we are yet to create the same model for services. I urge the industry to consider developing such a model, as this is a challenge I have been addressing aggressively both domestically and internationally,” Singh added.