corporate reporting accountability esg

In today’s column, David Xuereb walks us through the meaning of a term that seems to be everywhere, and exlains why it merits close attention from every economic stakeholder.

David Xuereb is at the forefront of the accelerating shift towards an ethics-based approach to business. An architect by profession, he is specialised in structural engineering, and more recently, zero-carbon economics.

He now leverages his previous experience as long-time CEO of the leading engineering and construction management company QP as a mentor and advisor to enterprises committed to changing for the better, as well as championing the Malta ESG Alliance. He is also a former president of the Malta Chamber of Commerce, Enterprise and Industry.

David Xuereb
David Xuereb

He explains:

ESG is the collective term for a business’s impact on the environment, its contribution to society, and the robustness and transparency of its governance. The three components are Environmental (E), Social (S) and Governance (G).

ESG is the collective term for a business’s impact on the environment, its contribution to society, and the robustness and transparency of its governance. The three components are Environmental (E), Social (S) and Governance (G).

ESG business frameworks reduce risk and costs while improving reputation. Such strategies attract the top talent while retaining the best human resources in the business. Shareholder value is also improved since informed investors are becoming increasingly interested in ethical dividend earnings and are determined to support businesses with clear purpose which are acting as a force for good.

ESG-themed offerings are becoming very popular with young investors. ESG metrics are being developed around the world, but the most widely sought ambition is that of decarbonisation by a disclosed and committed date.

The EU has devised the Corporate Sustainability Reporting Directive (CSRD), which also applies to Malta. Non-financial disclosures including ESG reporting will become mandatory for large companies in 2023 financial year and for all SMEs by the 2026 financial year.

An Expert Explains is a BusinessNow.mt initiative to improve economic financial literacy by inviting industry leaders to explain technical terms in a manner that can be understood by a general audience. If you would like to suggest a term or concept for our network of professionals to break down, or if you are an expert willing to contribute to this column, send us a message on our Facebook Page.

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