LocationsOpening Remarks by Mr James George at the Capacity Building Training on ESG and MSMEs’ Engagement in Global Markets
May 27, 2025
UNDP Deputy Resident Representative in China, James George, delivered opening remarks at the Capacity Building Training on ESG and MSMEs’ Engagement in Global Markets event in Shenzhen, China.
Distinguished guests,
Good morning!
On behalf of UNDP, I am delighted to welcome you all to today’s training event on Environmental, Social and Governance and strengthening MSMEs’ capacities to engage in global markets.
We are especially pleased to host this in Shenzhen — a mega city known for its innovation and role as a hub for China’s outward economic engagement and as the home of the first SDGs Innovation Lab to be established in one of China’s National SDGs Innovation Demonstration Zones.
Micro, small, and medium enterprises are the backbone of most economies — they generate employment, foster innovation, and contribute significantly to inclusive economic growth.
Globally, MSMEs account for 90% of businesses, make up 70% of employment, and 50% of global GDP. [1]
Here in China, SMEs contribute approximately 60% of GDP, 70% of technological innovation, and 80% of urban employment.
In 2022, there were about 52 million SMEs in China, and the number of newly registered enterprises reached an average of 23,800 per day. [2]
At the same time, in today’s rapidly evolving global landscape, MSMEs face growing pressure to adapt to new environmental, social, and governance (ESG) standards to remain competitive and resilient, especially when engaging in international markets and partnerships.
At UNDP, we recognize that integrating ESG principles is no longer just a compliance exercise.
It is a strategic imperative that creates long-term value — for companies, communities, and our planet.
That’s why we are committed to supporting MSMEs as key drivers of sustainable development, ensuring they are not left behind in the global shift toward more responsible, sustainable, and resilient business practices.
This is especially critical at a time of slow global development progress.
ESG practices will be critical to reversing this trend. They provide a pathway through which we can achieve the broader, long-term goals of sustainable development.
By supporting local businesses in their transition to sustainable production practices, we unlock both economic and environmental benefits that will not only enhance ESG but also accelerate progress toward the broader Sustainable Development Goals – our global development blueprint for people and planet.
Ladies and gentlemen,
Six months ago, China introduced the Basic Standards of its Corporate Sustainability Disclosure Standards.
It aims to guide businesses in aligning sustainability practices with global ESG expectations.
This is a critical step towards a unified national ESG reporting system, with full implementation expected by 2030.
That’s why we are here today.
Let me share three dimensions that will be critical by linking this to the national dual carbon goals of 2030/2060.
1. Carbon Emissions and Climate Change Measures
Key ESG measures that we undertake must include managing and reducing carbon footprints across industries.
Climate change mitigation will also necessitate a transition to renewable energy options and enhancing industrial energy efficiency.
"Integrating ESG principles is no longer just a compliance exercise. It is a strategic imperative that creates long-term value — for companies, communities, and our planet."
2. Sustainable Natural Resources Management
Globally, the use of natural resources by companies are increasingly viewed through the lens of ESG criteria.
Practices such as forest conservation, reforestation, and water resources management are critical components that are assessed for purchases and financial investments.
Sustainable agricultural practices to ensure food security and ecological balance, aligning with global sustainability goals are increasingly being assessed.
3. Environmental Disclosure Requirements
A key dimension of ESG is also ensuring that transparency in environmental impact supports to inform decision-making.
The regulatory framework in China requires companies to disclose environmental risks and performance, including energy consumption and pollution data.
These steps requiring tangible environmental disclosure is a significant step towards sustainability, allowing stakeholders to monitor and encourage improvements in corporate environmental behaviour.
China’s ESG landscape has also been increasingly influenced and adapting international frameworks and principles, such as the Principles for Responsible Investment (PRI), supported by the United Nations.
We are pleased to note that an increasingly large number of Chinese companies and investors are aligning with global standards to attract international investment and integrate into the global financial markets.
This training brings together diverse stakeholders from government, industry, academia and development sectors to provide guidance and help enhance MSMEs’ capacity to navigate ESG requirements, align with the SDGs, and tap into new opportunities in global markets.
Over the course of today’s event, I encourage you all to engage actively, share insights, and explore practical strategies that can help embed ESG into your business operations and procurement practices.
Let’s use this opportunity to build shared understanding, strengthen networks, and spark ideas that can lead to real impact on the ground.
The actions you, as businesses, take today can bring us one step closer to a greener, more sustainable future.
Thank you for being here, and I wish you all a productive and inspiring session.
[1] https://www.un.org/en/observances/micro-small-medium-businesses-day
[2] OECD (2024), Financing SMEs and Entrepreneurs 2024: An OECD Scoreboard, OECD Publishing, Paris, https://doi.org/10.1787/fa521246-en.
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