Find out how textile manufacturer Ghim Li tapped a digital ESG monitoring and reporting platform to achieve SLL funding eligibility.

Many small- and medium-sized enterprises (SMEs) are under pressure to get started on ramping up ESG/sustainability practices in line with national commitments to the zero carbon movements, through active decarbonization strategies and energy transition measures.

The investments for digitalization in this area can be hefty, and banks may also encounter challenges in lending out funds to SMEs due to the rigorous rules and guidelines involved. Especially in the context of sustainability linked loans, data acquisition remains a key challenge: without an understanding of their carbon footprint and sustainability profiles, both the SMEs and banks are unable to establish Sustainability Performance targets.

One global textile and apparel manufacturer in Singapore, Ghim Li, has been able to procure a S$16m Sustainability Linked Loan (SLL) through a streamlined process where firms report simplified ESG and operational metrics and receive an automated calculation of their greenhouse gas emissions (GHG), localized to multiple countries in Asia Pacific. 

Through this streamlined process offered by STACS through its ESGpedia platform, the data disclosed by Ghim Li (and the subsequent GHG emission figures that are automatically calculated) is accurate and digitally verified to meet SLL sustainability performance targets and eligibility criteria.

According to the Felicia Gan, CEO, Ghim Li, the service “helps to simplify the ESG reporting process and allows for an automatic calculation of GHG emissions to provide (us) with greater insights into our current ESG profile, putting us on the same playing field as other industries so our SLL bank (OCBC) can have consistent data across a variety of industries and can measure our Sustainability Performance Targets.”

STACS’ managing director, Benjamin Soh noted: “In order to accelerate Asia’s supply chain transition towards sustainable development, the availability of sustainable financing to SMEs and businesses plays a pivotal role. We are delighted to have provided digital solutions to streamline and digitally facilitate the entire process of sustainable linked financing for Ghim Li and OCBC on a one-stop platform. This will help SMEs and banks manage the increasing ESG regulatory requirements and scrutiny today.”