ESG (environmental, social, and governance) practices boost any business’s value in the eyes of investors looking for new options. Cambodia’s focus on supporting SMEs (small and medium-sized enterprises) in its push for economic sustainable growth aligns with this goal. Through various initiatives and policies, fast growing and advancing Cambodia deserves more attention.
ESG in Cambodia: A Focus on Sustainable Growth
Smaller businesses in this Asian nation compete with others in the region and around the world. Although great improvements in tourism, agriculture, and handicraft SMEs have happened in the post-Covid world, there is still room for improvement. For entrepreneurs and business owners, adopting ESG practices shall be extremely beneficial to them in terms of business viability, creating a unique value differentiator and achieving key sustainable development goals.
Environmental – Is the company using green methods to source materials, grow produce, manufacture products, etc.? Does it focus on efficiency in everything from production to supply chain management?
Social – Does it manage the impact on the local community and the country in general? This includes positive relationship building, protection and fair treatment of workers, health and safety factors, inclusive diversity, and more.
Governance – The company must operate with transparency and in full compliance of all laws and regulations. It should follow policies and procedures that satisfy stakeholders, too.
How Cambodia Supports Sustainable Growth
Cambodia’s government launched a variety of development plans focused on sustainable growth in conjunction with the Cambodia SDG Investor Map which was launched by the Royal Government of Cambodia (RGC), United Nations Development Programme (UNDP) with the support of the Centre for Impact Investing and Practices (CIIP). The far-reaching Cambodia Vision 2050 encapsulates multiple smaller and shorter-term initiatives. The end goal is to push the country from an unknown and questionable investment option to a definite beacon of investment opportunity.
The ASEAN region has multiple attractive economic spots already, and Cambodia is on the path to becoming the next. As investors put more value on ESG practices, it is largely up to the SME owners to adopt them and increase the overall reputation of the country.
There’s no doubt that this country is growing in value and importance to the global impact investing world. Economic growth remains steady over the past decade or more. Private SME enterprises represent 90% of all businesses. New government actions push to go global in the same way other Asian nations currently do.
Explore the Favorable Investment Environment in Cambodia
Stable political factors, continuing economic growth, central geographic location, high technology adoption and availability, and a push for more sustainable marketing for SMEs all combine to make Cambodia a spot to watch when it comes to impact investing. Add in the widespread adoption of ESGs that support eco-friendly and community focused operations, and investors have an opportunity to align themselves with common and lucrative goals.
The world cares more about environmental, social, and governance best practices more than ever before. As a growing focus within the ASEAN region, Cambodia has created an optimum blend of these and several other factors. From the owner of the smallest handcrafted textile brand to a global investor, opportunities abound.
Impact investing looks farther afield these days as new spots of interest emerge in the global economy. With ESG practices as a main focus, Cambodia now attracts a spotlight it well deserves. The focus on smart SME development makes it worth a look for investors interested in sustainable growth.
