Throughout the history of business development, changes in business megatrends only took place when people envisaged that their lives could be materially improved thanks to a transformation. In economic terms, this often means higher profits.
Profits drove the transition from manual operation to mechanisation and eventually the evolution to mass production and assembly lines. Closer to our days, it was again economic growth which fuelled and instigated the transition towards automation and the digitalisation of our enterprises.
On the same lines, we can truly embark on achieving a greening transition for our economy. This is because today we can realistically achieve our environmental objectives while simultaneously delivering better economic growth and more sustainable profits for our enterprises.
Ours is possibly the first generation in history which can aspire to achieve a dual-faceted industrial revolution; one which can concurrently achieve higher economic profits and a positive impact on our quality of life.
Crucial to this objective is a corporate mindset that brings together the inherent requirement for corporate performance with the objectives of sustainability achieved by greening business models.
As business models evolve we need to ensure that our labour force is re-skilled- Miriam Dalli
Such an eco-entrepreneurial mindset has a real potential to enhance bottom-line earnings for Maltese enterprises. This can be achieved both via a new stream of the virtually untapped source of green revenues and through significant cost reductions resulting from efficiency gains in existent operations.
As consumption patterns keep shifting towards more sustainable and green products, Maltese SMEs can use their flexibility and nimbleness to make sure that they reflect these new trends. I want to ensure that eco-entrepreneurs are supported in this adaptation process as they commercialise green products and capitalise on the opportunities presented by new green niche markets across different industries.
It is encouraging to see many Maltese entrepreneurs diversifying their energy mix into renewables. This is proving to be pivotal for efficiency and bottom-line earnings. However, greening-related cost reductions can go way further. Sustainable product design and packaging is a specific area which can deliver significant cost benefits without jeopardising the value of the final product.
Similarly, optimising legacy processes, the management of waste and recycling of by-products are all critical operational segments that can boost cost curtailment for local companies.
The private sector’s ability to drive green job creation will be crucial to determine our country’s pace towards a greener and more sustainable economic model. Therefore, we are looking at this transition in a holistic manner.
Green job creation, like any other investment for that matter, will not materialise unless it brings along potential for higher rewards for private enterprise. As the economy and business models evolve, we need to ensure that our labour force is reskilled and upskilled accordingly.
Greening business models present an evident opportunity to enhance the quality aspect of existent jobs and employee retention in the process. This is particularly true for legacy jobs which would otherwise be placed at risk by this economic transition. Upskilling the workforce will ensure that our employees would be equipped with the skills required to meet the demands of a green economy.
Interestingly, a report commissioned by the European Commission department responsible for EU policy on the environment projected that nearly three million jobs could be created or secured across the EU as small and medium-sized enterprises in just four sectors evolve into greener practices. Malta’s estimate of this green job creation was projected to be close to 3,600. This is effectively higher than the actual number of people registering for work in November 2020.
As we aim to make 2021 the year of economic recovery, the Ministry for Energy, Industry and Sustainable Development will maintain its focus on its long-term objectives. Our aim is to ensure a greener, stronger and a more sustainable economy and it is in this context that we want to make sure that local enterprises are enabled and supported in this pivotal transition. Greening business models is not an option any longer, it’s a necessity.
Miriam Dalli is Minister for Energy, Enterprise and Sustainable Development.