Keynote on Aligning Chinese SMEs with ESG Demands in Global Value Chains

Summary:

At the 2024 China International Supply Chain Expo in Beijing, SourcingHaus delivered a keynote presentation at the “Driving Green Transition – Sustainable Production and Procurement Workshop,” co-hosted by UNDP and UNOPS. The session focused on equipping Chinese Small and Medium Enterprises (SMEs) and Women-Owned Businesses (WOBs) with insights and tools to meet increasing Environmental, Social, and Governance (ESG) requirements in global procurement markets. The presentation highlighted the intersection of ESG reporting, Scope 3 emissions, and supplier visibility as strategic enablers for accessing international buyers across the UN system, European Union, and North America.

The Challenge:

SMEs and WOBs in China are central to global supply chains but face significant hurdles in adapting to rising ESG expectations and procurement due diligence requirements. International buyers now demand traceability, emissions data, and responsible sourcing indicators as prerequisites for supplier engagement. However, many SMEs lack the capacity, tools, and awareness to comply - leading to missed opportunities in high-value markets increasingly defined by sustainability and transparency.

What We Did:

SourcingHaus delivered a keynote presentation designed to demystify ESG reporting and empower SMEs to take strategic steps toward global procurement readiness. Key topics included:

• ESG Compliance Trends: Overview of regulatory developments such as CSRD (EU), SEC (USA), and UN buyer sustainability criteria, with a focus on implications for Chinese exporters.
• Scope 3 and Supply Chain Emissions: Explained the growing importance of upstream emissions data and how SMEs can contribute to buyer emissions reporting through basic tracking and declarations.
• Simplified ESG Reporting for SMEs: Introduced practical entry points, including ESG templates, phased implementation strategies, and digital tools for reporting and verification.
• Market Access Opportunities: Framed ESG readiness not as a compliance burden, but as a pathway to increase competitiveness, qualify for international tenders, and engage in green finance ecosystems.
• Call for Support Structures: Advocated for collaborative frameworks involving government, development agencies, and buyers to build SME support systems and reduce the compliance burden.

The Impact:

• Raised awareness among SMEs and WOBs about the ESG expectations shaping international procurement
• Positioned ESG readiness as a gateway to expanded global market access
• Supported the launch of a Supplier Roster for Sustainable and Innovative Products, improving supplier visibility
• Strengthened the case for public-private collaboration on SME compliance and market integration
• Reinforced the message that sustainability is becoming a minimum requirement, not a differentiator, in future-ready supply chains

Resources:

• Keynote Presentation: ESG Reporting for SMEs in Global Supply Chains (Beijing, 2024)
• Workshop Agenda – Driving Green Transition (China International Supply Chain Expo, 2024)