The process was very organic for me. With my vocational training as a chemical engineer, I had my first brush with environmental pollution control through assignments on Renewable energy sources. Two decades back, the technological advances were such that very small fraction of these initiatives were profitable. In my last 18 years of professional experience into IT-digital, I gained my technical skills, by working on feasibility studies, proof of concepts, financial forecasting, resource allocation, AI/ML and Web 3.0 development.

But one that definitely brought my vocation and passion together was in 2019, when I was working on a concept note for Innovation Challenge Fund. The concept was to generate ESG Metrics for MSMEs to quantify net positive impact. This work gave me the opportunity to leverage tech in sustainability to understand and analyse operational efficiency and profitability. This paved my way to delve deeper into the subject of sustainability management accounting.

At Tulyā, our focus is on creating sustainable value for SMEs. We help companies measure and understand the impact of environmental and social factors on their ability to create value through Sustainability Management Accounting.

We provide a very simplified approach for SMEs to integrate sustainability into their business operations and strategy

1. To prioritise material topics by reducing the complexity with a limited shortlist of KPIs based on key stakeholder touch points, industry best practices and other external and internal drivers
2. To get economic outcome by connecting ESG metrics with P&L
3. To sustain economic outcomes through monitoring by providing a first coherent version of a sustainability strategy and setup tools for measurement and tracking

SMEs play a very important role in the transition to a sustainable economy and their collective sustainability impact is significant. I am convinced that sustainability will affect SMEs' ability to create value over time and we want to help them to prepare for the new normal with less resources, more uncertainty, stricter regulations and demand for ESG data.

There are two types of challenges that we have come across:

• Establishing the need for sustainability among SMEs

a) As the External Reporting is moving from voluntary to mandatory across various regions, the new norms will trickle down onto SMEs and eventually drive them to adopt sustainable business models.

b) With various stakeholders being affected by the achievements of the organisation, the need to maintain a competitive edge, reputation, and the ease to work with MNCs would drive the SMEs to integrate Sustainability into their operations and overall business strategy.

• Once the need is established, then how should SMEs kickstart the journey or understand the impact of their existing sustainability efforts?

a) In the given global landscape of frameworks and jargons, SMEs are finding it challenging with insufficient knowledge and information to take timely and right decisions. The adoption is more topical or need-based.

b) With minimal resources and support for sustainability initiatives, the efforts are unrealised

c) The assumption that sustainability initiatives impact on bottom line and very little data to prove otherwise.

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As part of Tulyā's approach:

1. We help tailor the needs specific to the profile the company - based on primary economic activity, industry and size. This helps us focus on minimal material topics that can be applied for SME as part of the first integrated sustainability strategy with the future versions to be built on.
2. We measure and monitor the KPIs that help the SME teams in internal decision-making
3. Integrated Accounting that help them see the relation between profitability and sustainability
4. Scenario analysis report on Cost of Action Vs. Inaction.

Though there are varying views as to whether capitalism can be reformed to address sustainability, I personally believe that when we become accountable for our actions, capitalism can be re-invented to deliver a sustainable future intrinsically. In this pursuit, it becomes imperative to understand the interconnected nature of the economic eco-system within which the organisations and society operate.  If we can underscore our ideas and actions with the intent to work for the broader social good as well as seek profits,  I believe that we can help accelerate this change.