One of the highest levels in recent years, the index reflects growing willingness (+3%) despite softer awareness and implementation.

MUMBAI, India, Oct. 15, 2025 -- Dun & Bradstreet, a leading global provider of business decisioning data and analytics, along with SIDBI, released Sustainability Perception Index (SPeX), referred to as the 'Green Pulse Indicator' for April - June 2025 period. SPeX evaluates MSME's perception of sustainability across three dimensions: willingness, awareness, and implementation. The SPeX rose by 20% year-on-year to reach 65 in Q2 2025, marking one of the highest levels in recent years. The overall trend remains upward, despite a few quarterly pullbacks. While awareness and implementation show some moderation, the continued rise (+3%) in willingness points to strong intent that can be converted into action with the right support.

Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, "MSMEs are steadily advancing on their sustainability journey, as reflected in the 20% year-on-year rise of the SPeX Index to 65 in Q2 2025, one of the highest levels recorded in recent years. The momentum, though marked by occasional retracements, signals a growing maturity in the way small and medium businesses view sustainability. Encouragingly, willingness to act is rising, with younger enterprises especially embracing green practices as part of their brand and growth strategy. Medium enterprises are setting the pace with strong implementation, while sectors like capital goods are still in the data-gathering stage. Regulation and cost efficiency continue to drive action. Notably, MSMEs are prioritizing environmental and governance goals, with DEI still playing a secondary role. The path forward is clear, simplifying certification processes and expanding access to technical expertise will be crucial to sustain this momentum and enable MSMEs to transition from intent to impact, ensuring they remain resilient, competitive, and aligned with global standards. For MSMEs, this evolution is not just about compliance, it marks a strategic shift toward long-term value creation, market differentiation, and future-readiness in an increasingly sustainability-driven economy."

Dr. Ravindra Kumar Singh, Chief General Manager, Green Climate Finance Vertical, SIDBI, stated , "SIDBI - D&B Sustainability Perception Index Survey (which we term as 'Green Pulse') for the Quarter April – June 2025, highlights improved and growing commitment from MSMEs towards sustainability. Periodical SPeX reports render transitional views to us. The latest findings reveal that 66% of MSMEs are planning to expand their environmental policies, while 76% anticipate profitability gains from these measures. Results indicate that enterprises are turning increasingly responsive and are inclined to prioritise adoption of clean, green, and environment-friendly technologies, along with becoming more responsive to Environment & Social (E&S) factors. To address the capital needs of MSMEs, SIDBI's Green Scheme(s) are gearing the market in different and focussed arenas of sustainability including Energy Efficiency, Renewable Energy, E-Mobility and Circular Economy and Adaptation. The GIFT & SPICE schemes of MoMSME being implemented by SIDBI (directly as well as through 25 lending partners) are rendering momentum to green investments. Any loan to qualify as a Green Loan has to go through the filter of Green definitional framework, E&S framework, Green Technology Basket, such that energy saving and/or GHG emissions reductions are measured and tracked. SIDBI has been operating theme risk mitigant models to attend to perceived risks of innovative, new technologies or models. SIDBI is committed for sharpening responsive vision and green growth path of MSMEs. If you are thinking about green investments, meet your lenders."

Highlights of the SPeX Report – Q2 2025

Overall Trends

  • The SPeX Index rose 20% YoY to 65, underscoring MSMEs' strengthening commitment to sustainability.
  • 66% of MSMEs plan to expand environmental policies, while 76% expect profitability gains from sustainability measures.
  • Profitability and cost reduction remain the strongest motivators, but uncertain returns and limited capital continue to hold back investments.
  • Green financing awareness increased across all segments, with younger and micro businesses leading the way.
  • Governance implementation strengthened across enterprise sizes, particularly among micro and medium firms.
  • ESG integration is deepening, with financial literacy and clearer policy communication emerging as key enablers for wider adoption.

Awareness

  • Awareness moderated slightly, especially among small enterprises.
  • While green financing awareness is high, policy literacy remains weak: nearly half of young firms (under 5 years) are unaware of government support programs.
  • Younger businesses (under 25 years) boosted green financing uptake by 14%, using it as a lever for brand positioning and future readiness.
  • Micro enterprises showed early governance adoption (50% implementation), while medium firms lead implementation at 64.7%, with full adoption in six states.
  • The capital goods sector remains in an early, data-gathering phase.

Willingness

  • Willingness rose +3% QoQ, reflecting resilience in MSMEs' sustainability intent.
  • Regulatory compliance (66%) and cost efficiency remain the strongest drivers, especially among businesses aged 1–10 years.
  • Internal stakeholder influence continues to have limited impact.
  • Full environmental implementation has been achieved in 13 of 21 states, with Kerala and Madhya Pradesh leading.
  • Social measures are gaining traction: 73% of small and 75% of medium businesses are actively implementing social parameters, with full adoption in Andhra Pradesh, Tamil Nadu, and Uttar Pradesh.
  • Micro and medium firms are leading the formalization of sustainability policies and governance procedures, with 53% of medium and 60% of micro firms strengthening governance commitments.

Implementation

  • Rapid progress in capability-building: 60% of MSMEs have developed expertise in sustainable strategy (vs. 13% in Q4 2024).
  • Medium firms are leading circular economy practices: 65% implemented 'reduce-reuse-recycle' measures, up from 31% in Q1 2025.
  • Among younger firms, 53% (1–5 years) report full compliance to sustainability policies.
  • Key barriers remain:
    • 65% cite lack of capital availability.
    • 75% of younger businesses say capital constraints delay implementation.
    • 63% of 5–10 year and 60% of 10–25-year firms cite uncertain returns as the main deterrent.
  • Kerala and Madhya Pradesh stand out for full environmental implementation among micro and medium firms.
  • States like Kerala (90%), Telangana (88%), and Chhattisgarh (84%) show high sustainability familiarity, while Maharashtra lags with only 50% medium industry awareness.

Methodology

The SPeX Index ranges from 0 to 100 and tracks MSMEs' evolving perception of sustainability. Movements in the index reflect changes across three key dimensions:

  • Awareness – understanding of sustainability measures and policy support.
  • Willingness – intent and motivation to adopt sustainability practices.
  • Implementation – actual execution of sustainability actions.

An increase in the SPeX value indicates strengthening perceptions and adoption momentum, while a decline signals emerging challenges or weakening sentiment.

About Dun & Bradstreet:

Dun & Bradstreet, a leading global provider of business decisioning data and analytics, enables companies around the world to improve their business performance. Dun & Bradstreet's Data Cloud fuels solutions and delivers insights that empower customers to accelerate revenue, lower cost, mitigate risk and transform their businesses. Since 1841, companies of every size have relied on Dun & Bradstreet to help them manage risk and reveal opportunity. For more information on Dun & Bradstreet, please visit www.dnb.com.

Dun & Bradstreet Information Services India Private Limited is headquartered in Mumbai and provides clients with data-driven products and technology-driven platforms to help them take faster and more accurate decisions in domains of finance, risk, compliance, information technology and marketing. Working towards Government of India's vision of creating an Atmanirbhar Bharat (Self-Reliant India) by supporting the Make in India initiative, Dun & Bradstreet India has a special focus on helping entrepreneurs enhance their visibility, increase their credibility, expand access to global markets, and identify potential customers & suppliers, while managing risk and opportunity.

India is also the home to Dun & Bradstreet Technology & Corporate Services LLP, which is the Global Capabilities Center (GCC) of Dun & Bradstreet supporting global technology delivery using cutting-edge technology. Located at Hyderabad, the GCC has a highly skilled workforce of over 500 employees, and focuses on enhanced productivity, economies of scale, consistent delivery processes and lower operating expenses.

Visit www.dnb.co.in for more information. Click here for all Dun & Bradstreet India press releases.

About SIDBI:

Small Industries Development Bank of India (SIDBI) in its role as the Principal Development Finance Institution for MSME sector has played a significant role in developing the financial services for MSME sector through various interventions including Refinance to Banks, Credit Guarantee programs, Development of the MFI sector, Contribution to Venture capital/AIF funds, MSME ratings, promoting digital lending ecosystem, etc. The Bank has proactively been working toward Energy Efficiency (EE) in MSMEs since 2005-06 as part of Direct Finance business using support of multilaterals like World Bank, ADB, GiZ, FCDO, JICA, AFD, KfW etc. for energy efficient projects. SIDBI has taken steps to promote Energy Efficiency and Cleaner production in the MSME sector and propose to accelerate its efforts for MSME sector for their survival, growth, and competitiveness in long run during prevailing climate related challenges.

Looking to importance of ESG aspects and the need for a simplified, Customised ESG risk rating framework, SIDBI has already started integration of ESG framework into its operations. Subsequent to setting up of Green Climate Finance Vertical for prioritised focus, a Board level Committee has been constituted for guidance, oversight, and monitoring on ESG, Green Strategy of the bank, including relevant SDGs etc. To lead with the example, SIDBI has set a target to become Carbon Neutral by 2024 and Net Neutral organization in subsequent years.

Through Green Financing products and other developmental activities, SIDBI enables the manufacturers and service providers in MSME sector to adopt green energy efficient technologies helping in lesser waste leading to positive impact on environment and sustainability.

Visit www.sidbi.in for more information.

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