Background information

Environmental, Social and Governance (ESG) framework is a set of standards which indicate an organisation’s impact on society, the environment, and how transparent and accountable the organisation is. The Malta Enterprise (ME) developed and offer a measure that assists organisations in assessing and reporting their ESG impact. In so doing, the measure aims to incentivise small and medium-sized enterprises (SMEs) to conduct their first ESG review. Specifically, the measure assists SMEs in hiring an approved ESG advisor. Furthermore, eligible enterprises that submit an ESG report that is accepted by the Ministry for the Environment, Energy and Enterprise (MEEE) will be listed on the ESG portal of the government website.

Content of measure

The measure is open to SMEs that have at least 5 full-time employees and operate from their own premises, leased or rented buildings. Organisations need to have been leasing/renting their building for at least one year prior to applying and be covered by a lease/rent agreement for at least three years following the application date.

Organisations are to commission an external service provider from a pre-approved list recognised by MEEE. Eligible costs are limited to the provision of advisory services leading to the organisation’s first ESG report. The aid must be approved prior to the commissioning of the initial ESG report.

The completed ESG report is to be submitted to the MEEE within 6 months of ME’s approval. The ME will provide additional support for beneficiaries to maintain an updated report for the two years following the initial submission.

The measure provides a maximum of €3,000 to approved applicants as a reimbursement of up to 75% of the eligible costs incurred to prepare the initial ESG report. An additional €1,000 or 50% of the eligible costs (whichever is lower) will also be provided for the first update of the ESG report, whereas the lower of €1,000 or 30% of the eligible costs will be provided as a grant for the organisation’s second updated report.

Applications remain open until 31 October 2023.

The total budget of the measure is €200,000

Use of measure

No information is available on the use of the measure yet.

The Minister for Environment, Miriam Dalli, stated that: "Within a short time, businesses that are already reporting their results through the ESG Portal registered an 8% decrease in their carbon dioxide emissions and generated nine percent less waste. They also reported an increase of 7% of women in managerial roles, and 13% more independent directors on boards" (Times of Malta, 2023, September 6).

Target groups

Workers	Businesses	Citizens
Does not apply to workers	SMEs	Does not apply to citizens

Actors and funding

Actors	Funding
National government	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

No evidence was found that the social partners were actively involved in designing this measure. The implementation and monitoring of the measure will be conducted by the Malta Enterprise (ME). The measure was however announced by the Minister for Environment, Miriiam Dalli, during a meeting of the Maltese Council for Economic and Social Development (MCESD) held at the General Workers' Union (GWU) headquarters and advertised on the GWU portal. The measure was also advertised on the Malta Chamber of SMEs' website, a major Employer Association.

Views and reactions

No views or reactions were provided by social partners in relation to this measure.

Sources

• 06 September 2023: Times of Malta - SMEs to receive financial aid for ESG reporting (timesofmalta.com)
• 16 October 2023: Malta Enterprise - Grant scheme to facilitate the review of Environmental, Social and Corporate Governance Practices (ESG Grant) (www.maltaenterprise.com)