Small and medium enterprises (SMEs) across Asean and East Asia are set to gain access to new tools, training, and sustainability resources following a partnership between the Asean Circular Economy Business Alliance (Aceba) and the East Asia Business Council (EABC).
Partnership Framework Signed in Tokyo
The two organizations formalized a Partnership Framework on Circular Economy during the 66th EABC meeting in Tokyo on May 25, 2026. The initiative aims to help micro, small and medium enterprises (MSMEs) integrate circular economy practices into their operations, improving both their environmental performance and long-term competitiveness.
“Circular Economy provides a practical framework for MSMEs to demonstrate commitment and action on Environment, Social and Governance performance,” said Jay Yuvallos, EABC chair for 2026.
Circular Business Check Tool
At the heart of the partnership is the development of a “circular business check,” a self-assessment tool that will allow SMEs to evaluate their readiness to adopt circular business models. The tool will also help businesses measure the maturity of existing sustainability initiatives and provide recommendations for improvement.
Backed by the European Union’s Switch-Asia Program, the tool will be piloted in the Philippines, Indonesia and Thailand before being rolled out more widely across the region.
For many SMEs, sustainability programs have traditionally been difficult to access due to limited resources, expertise and funding. The new initiative seeks to bridge that gap by offering practical guidance tailored to smaller businesses.
Rene Van Berkel, Aceba co-convenor and expert for the EU Switch-Asia Policy Support Component, said the assessment tool will build on Aceba’s existing business guides and knowledge resources.
Training and Circular Business Agenda
Beyond the self-assessment platform, Aceba and EABC also plan to introduce entry-level training programs to help SMEs understand circular economy principles and identify opportunities to reduce waste, improve resource efficiency and create new revenue streams.
The partners will likewise develop a “circular business agenda” to identify areas where governments and businesses can work together to accelerate the transition toward a more sustainable economy.
Yuvallos said the collaboration could pave the way for a permanent sustainability and circularity workstream within the EABC, citing Aceba’s track record in documenting circular business cases in the Philippines and across Southeast Asia, including projects with the Cebu Chamber of Commerce and Industry.
The initiative is expected to benefit businesses across the 10 Asean member states and the three Asean dialogue partners represented in the EABC, expanding support for SMEs throughout East Asia.
MSMEs account for the vast majority of businesses and jobs in the region, making their participation critical to achieving broader sustainability goals while ensuring economic growth remains inclusive.
