The Ministry for Energy, Enterprise and Sustainable Development has launched Malta’s first ESG portal, allowing the general public and investors to evaluate the environmental, social and governance credentials of amongst the largest quoted companies in Malta and Gozo.
These companies are quoted on Malta’s Stock Exchange, and their ESG credentials can now be accessed via https://sustainabledevelopment.gov.mt/esg/.
The ESG portal, facilitates local and foreign investors’ access to data measuring the level of importance companies are giving to ESG. This platform will serve to further encourage sustainable investment, as investors are increasingly looking into ESG credentials before investing.
Launching the ESG portal, Minister Miriam Dalli said that data collected confirms that the more companies invest in sustainable operation, the higher is their return on investment is. 80% of the quoted companies on Malta’s Stock Exchange participated in the data collection process. These companies have a collective value of around €3 billion.
The data collected shows that over the past three years, these companies produced 34% less carbon emissions and halved their water consumption. Furthermore, as a result of the adoption of sustainable practices, these companies reduced their waste by 80%.
“The ESG portal also opens a window into the employment rate of women within the higher management structures. In fact, the average rate of women on boards is of less than 10% and a gender pay gap of almost 12%. Data collected also shows that those companies that have more gender diversity in their senior management structures and a low gender pay gap, are the companies that fared better over the past years,” Minister Miriam Dalli said.
Minister Dalli said that this initiative contributes towards a sustainable economy, with investment being directed towards sustainable operations. This also lead towards a better quality of life.
“The participation of the companies during this initial process was a strong one. Eventually, this will also be extended toward other companies with bonds listed on the Stock Exchange, family businesses, small and medium enterprises and all those who wish to join,” said Minister Dalli.
The ESG portal will put Malta at the forefront of the implementation of these measures which encourage a sustainable economy. The European Commission has presented the Corporate Sustainability Reporting Directive (CSRD), which comes into force in two years’ time. The Directive will oblige companies to report on sustainable operations.
Therefore, Malta Enterprise plays an important role to support a transition in this aspect. It has been offering cash grants, tax credits and soft loans for companies when investing in green and digital projects, as well as to support the training for employees.
The Launch of the ESG portal and this Directive were discussed during a press conference led by the Ministry for Energy, Enterprise and Sustainable Development and Malta Enterprise with the participation of representatives from the economy industry.