Environmental credentials of Malta-listed companies made public

Through the Sustainable Development Ministry, Malta has launched the ESG (Environmental Social and Governance) portal, through which it will evaluate the environmental, social and governance credentials of the largest local companies.

Those companies are listed on the Malta Stock Exchange, and their ESG credentials are accessible from the website. The platform identifies the actual carbon footprint of these companies, tangible commitment to equality factors, social commitment, and governance structures.

Sustainability Minister Miriam Dalli said she believes in decarbonising the economy and wants to make sure enterprises are aware of benefits when implementing the criteria.

“The key priority is to drive the agenda towards green business models. We want you to be the leaders of positive change. We are providing a holistic tool kit through the ESG portal,” Dalli said to the enterprises.

She emphasised that the objective of the portal was to instigate a change in the corporate mindset for further sustainable business models that improve shareholders’ wealth. 

Dalli explained that companies that gave the best returns produced 35% fewer carbon emissions and consumed half the water and 80% less waste. Moreover, she highlighted that companies that exhibited a low gender pay gap had better returns.

“Our very own businesses can do well while doing good,” Dalli said.

The ministry said the portal puts Malta at the forefront of implementing the promotion of sustainable economies. The European Commission presented the Corporate Sustainability Reporting Directive (CSRD), which will come into effect in two years.

The CEO of Malta Enterprise, Kurt Farrugia, said Maltese companies now have to report how their operations affect sustainability. “Businesses need to act now. The secret to success is to be an early adapter,” Farrugia said. 

Farrugia said that the implementation of the CSRD will come at a cost for some but will offer sustainability and better resource management.

Chartered financial analyst and Policy Advisor Steve Ellul provided insights into the ESG portal that had been launched for the largest companies in Malta as a pilot project. He said that it managed to reach 80% of the companies, with a net asset value of €3 billion.

"Every single company generated better numbers, lower carbon emissions and use of water on average. Going green pays dividends."