#RealiTalk: MSMEs Day with Pinoy Climate Reality Leader with Nicole Bernice Limlengo

For this month’s #RealiTalk, we talked to Pinoy Climate Reality Leader Nicole Bernice Limlengo about the government’s efforts to help Micro, Small, and Medium-sized Enterprises (MSMEs) cope with the impacts of climate change and enable them to pursue a low-carbon pathway.

 

Nicole is a research and training design specialist with the Department of Trade and Industry-Philippine Trade Training Center. She is a writer, content creator, and creative and communications consultant.

 
As we commemorate the integral role small businesses play in the country’s inclusive growth on June 27, which was declared by the United Nations as MSMEs Day, Nicole discussed the opportunities for MSMEs to integrate sustainability in their operations.

 

HOW ARE CLIMATE CHANGE IMPACTS (SUCH AS EXTREME WEATHER EVENTS, RISING SEAS, OCEAN ACIDIFICATION, RISING TEMPERATURES, AND CHANGING RAINFALL PATTERNS) AFFECTING MSMEs?

Climate change affects all of us, no doubt. But the way it impacts businesses can be devastating, especially for our MSMEs.

Unpredictable weather patterns can stall and even shut down operations because of facilities damage, workforce disruption, resources for raw materials becoming scarce, and the costs of materials increasing. Climate impacts can also lead to dramatic increases in insurance costs.

GIVEN THAT THEY OFTEN LACK THE RESOURCES TO DEVELOP LONG-TERM STRATEGIES TO MANAGE CLIMATE RISKS COMPREHENSIVELY, MSMEs ARE AMONG THE HARDEST HIT BY THE PREVAILING CLIMATE CRISIS. HOWEVER, MSMEs HAVE THE POTENTIAL TO BE STRONG DRIVERS OF LOCAL CLIMATE ACTION. HOW CAN MSMEs BE MOBILIZED TO DRIVE INNOVATIVE CLIMATE SOLUTIONS TO COMMUNITIES?

MSMEs can do this by giving them access to, firstly, the knowledge and tools in order to help them innovate, together with the guidance and support which can include financial support, and even networking. They can also do so by leading by example. With a very strong ‘tingi” culture, sari-sari stores can help consumers lessen their plastic consumption by having a refill station and allowing them to use whatever container they have. In lieu of plastic bags, encourage buyers to use eco-bags, bayongs, or whatever bags.  

Innovations should be recognized, rewarded, supported, and highly encouraged no matter how big or small, or how simple they can be. Oftentimes, simple works best. 

HOW IS THE NATIONAL GOVERNMENT HELPING MSMEs COPE WITH THE IMPACTS OF CLIMATE CHANGE TO AVOID FUTURE DISRUPTIONS TO THE SUPPLY CHAIN? WHAT PROGRAMS AND INITIATIVES ARE IN PLACE TO ENSURE THAT THE COUNTRY IS INCREASING PRODUCTIVITY DESPITE THE CONSTRAINTS OF CLIMATE CHANGE?
The national government has several plans and policies in place to help MSMEs cope with climate change impacts. Most relevant are the National Disaster Risk Reduction and Management Plan (NDRRMP), Philippine Development Plan (PDP), National Climate Change Action Plan (NCCAP), and the MSME Development Plan (MSMEDP). Collectively, these carry over across inter-agency initiatives and while sufficient legislative provisions have been crafted to support proactive response to disaster events for both communities and businesses, admittedly there are still some gaps.
 
To help address these gaps, national government agencies such as the Philippine Trade Training Center have partnered with various private government institutions, private companies, industry leaders, the academe, civil society groups, and like-minded individuals. We believe that nation building is a multi-sectoral approach. We have a number of training programs that help MSMEs which are available on our website (www.pttc.gov.ph) and via the ASEAN SME Academy (https://asean-sme-academy.org).
 
We also have the PAYONG App which is a collaboration between the Philippine Disaster Resilience Foundation, Inc. (PDRF), members of the local insurance industry, and the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ).
 
PAYONG App serves as a portal for MSMEs where they can access training modules in risk management and business continuity planning. Through this platform, they can acquire the tools, skills, and knowledge for disaster risk management that is unique to each partner.  Insurance products can also be availed via the app.
 
PAYONG is just a good example of a multi-sectoral approach. We have the government providing capacity building, the insurance industry providing financial protection, and the private sector helping institutionalize initiatives for disaster risk reduction and management.
 
HOW IS THE NATIONAL GOVERNMENT SUPPORTING MSMEs TO DEVELOP GREEN PRODUCTS AND INTEGRATE SUSTAINABILITY AND LOW-CARBON STRATEGIES INTO THEIR BUSINESS OPERATIONS? WHAT OPPORTUNITIES ARE AVAILABLE TO MSMEs TO PURSUE A LOW-CARBON PATHWAY?

The national government supports such initiatives through collaborative partnerships, policies, programs, and the like. An example is the Shared Services Facilities (SSF) Project which was launched by the Department of Trade and Industry in 2013. SSF provides the machinery, equipment, tools, systems, accessories, and other auxiliary items, skills, and knowledge necessary to improve the quality of products and productivity of MSMEs, under a shared system. Such facilities are what we call the Fab Labs (fabrication laboratories) which help MSMEs invent and innovate. The Philippine Trade Training Center is home to one of the many Fab Labs across the nation. 

I would say that opportunities for MSMEs to pursue a low-carbon pathway are now growing, such as financing via investments/grants for low-carbon green business models and incentives.