A recent press release by the Ministry of Economy and Finance highlighted how sustainable finance can facilitate dialogue between SMEs and investors by promoting the production of environmental, social and governance (ESG) information. This document, developed by the Sustainable Finance Table, proposes a reference model for the standardisation of sustainability information and a methodological guide to help SMEs provide ESG data to banks and investors.
The initiative is part of the need to achieve the EU's sustainable development and climate neutrality goals by 2050. As a key component of the Italian economy, SMEs are at the forefront of the need to adapt to these changes. However, difficulties in accessing credit and the complexity of the information required represent significant obstacles.
In this scenario, alternative finance can play a crucial role. Tools such as crowdfunding, club deals and minibonds offer flexible and often more accessible ways of financing than traditional channels. These instruments not only allow SMEs to raise capital for investments in green and digital technologies, but also foster a more direct and transparent approach to managing ESG information.
Moreover, many of these alternative or complementary tools to traditional banks are based on the use of fintech or blockchain technologies that can improve the transparency and reliability of ESG data, facilitating the due diligence process for investors and increasing trust in the system. Alternative finance, therefore, is not only a means to obtain funds, but a real accelerator for the sustainable and digital transformation of Italian SMEs.
In conclusion, innovation and development in a sustainable key represent two of the main strategic levers capable of driving the economic and social growth of businesses, both key factors to be exploited to strengthen business and increase opportunities for access to credit.
Initiating investments aimed at supporting innovation and facilitating the green transition, in fact, is now the right way to go in order to remain competitive on the market, despite the economic scenario still characterised by some critical issues, especially for SMEs. If, on the one hand, the fight against inflation has slowed down development, on the other hand, the geopolitical front has had negative repercussions from various points of view, limiting the possibilities of finding the necessary financial resources through traditional financial channels.
A crucial role in supporting the innovative drive of companies and especially small and medium-sized enterprises, however, is played by incentives to obtain financing for sustainable development and alternative finance instruments that facilitate access to the capital market.
The combination of traditional and alternative finance is a winning strategy to support Italian SMEs in their transition to a greener and digital economy. While the traditional financial system remains crucial, alternative finance instruments offer innovative opportunities to overcome challenges and reap the benefits of sustainability and technological innovation.
For further details, see the MEF press release.