The world has changed. The effects of climate change are increasingly being felt, the COVID-19 pandemic has impacted every facet of our lives and the Russia-Ukraine war is having consequences on Europe’s economy and further impacting on supply chains and costs.
Meanwhile, the European Union is racing ahead with the implementation of the Green Deal, with legislation such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation already in effect, and other proposals – like the Corporate Sustainability Reporting Directive – in the pipeline.
The construction sector can no longer operate under a ‘business as usual’ model, simply because ‘as usual’ does not exist anymore.
Environmental, social and governance (ESG) in construction
The construction sector is essential to our well-being and standard of living. But in its current form, the industry is resource-heavy, placing pressure on natural resources and contributing to greenhouse gas emissions directly and indirectly.
Housing affordability issues have led to greater inequalities, and labour shortages are leading to a skills gap, with potential risks to quality. Within a wider governance perspective, we are aware of how integral construction is today to Malta’s economy, and how that dependency may lead to additional risks, translating into an increased scrutiny of transactions.
The sustainability preferences of purchasers and renters in the Maltese islands
Mindful of the importance of sustainability in construction, particularly in the local context, KPMG in Malta is currently undertaking a research study to understand to what extent residents in the Maltese islands prioritise and value sustainability when purchasing and renting property. Among others, this survey will obtain insights on:
• How important is sustainability when purchasing and renting property, compared to other factors such as location?
• What sustainability features do residents in Malta value most when buying or renting property?
In its current form, the construction industry is resource-heavy
• How much more are residents willing to pay for property that has been built with sustainable methods and that supports a sustainable lifestyle?
• Who should take the lead in ensuring that new property on the market is in line with sustainability principles?
The insights gained from this survey will be shared at the upcoming KPMG conference titled ‘The Future of Malta’s Property Market’ conference to be held on October 28. These results are timely, not least considering the challenging financial context in which the sector is currently operating, as they will enable the sector to identify the sustainability opportunities that make both environmental and business sense. They will also help the various stakeholders, including the government and regulators, better understand society’s expectations in terms of their role in supporting the sector’s transformation towards sustainability.
KPMG: Your sustainability specialist of choice
KPMG knows the power of ESG to transform your business. KPMG ESG Advisory’s solutions are both holistic and practical.
KPMG can help clients with:
• ESG transformation: Including to help you develop and refine your ESG strategy, supporting you in implementing your strategy, providing training and supplying digital solutions to facilitate data collection and enhance traceability and reliability of the data output;
• ESG reporting: Including of carbon emissions as well as reporting of broader ESG metrics; and
• ESG assurance: Your stakeholders, including regulators, are increasingly demanding that ESG data be verified, to ensure its authenticity and comparability.
KPMG has designed its services to put ESG at the core of one’s operations – where it should be.
The impact of ESG on Malta’s property market will be one of the topics discussed at the upcoming KPMG conference titled The Future of Malta’s Property Market, to be held on Friday, October 28. For tickets and more information, log on to https://kpmglearningmalta.com/courses/the-future-of-maltas-property-market/ or call +356 9946 7927.
For more information about KPMG’s ESG Advisory services, contact Rachel Decelis on racheldecelis@ kpmg.com.mt or David Pace on davidpace@kpmg.com.mt.
Rachel Decelis is senior manager, ESG, KPMG in Malta, while David Pace is partner, head of advisory, KPMG in Malta.