Construction is a largely unregulated sector with no clear ambitions and values, OHSA chairman David Xuereb said on Tuesday.
Speaking at an RSM Malta and Bureau Veritas event, hosted by Times of Malta, Xuereb said there are difficulties reconciling the construction and building industry with an economy that prioritises the environment, society and governance.
“We're dealing with an industry that has remained relatively unregulated with no clear ambitions of how that industry is able to contribute to the ethics and values of society,” Xuereb said.
As well as leading the Occupational Health and Safety Authority, Xuereb also chairs the Malta Environment Social Governance Alliance (MESGA) and the Malta Council for Economic and Social Development.
He was attending the event in his capacity as MCESD chair.
Xuereb was flanked by two business leaders on each side in a panel that discussed environmental, social, and corporate governance in Malta.
“Like it or not, it (the construction industry) affects pretty much everything we do and could be very influential in both a positive and negative way,” he said.
Xureb said that while most of the EU's building industry is moving forward in its ESG targets, Malta is lagging behind.
Welcoming the government announcement that contractors in the sector will require a license, Xuereb said the country still had a long way to go.
There are no incentives or regulations and education is also lacking, said Xuereb, an architect by profession.
However, Xuereb said some construction companies are “really, really trying to make a difference” and investing heavily to do so. Still, there are some “rogue operators”.
Benefits of remote working
Malta's ambassador for climate change Simone Borg opened the event by saying “greenwashing is rife”, locally and internationally.
ESG should not be about ticking boxes but about real profitable and sustainable practices, she said.
Matthew Swain of APS Bank said the banking sector is starting to look at a company's ESG achievements when considering financial decisions, including business loans.
Questions about ESG are also often at the forefront of candidates' minds when interviewing for a job, he said.
GO CEO Nikhil Patil said not every ESG decision costs money and some decisions can actually save on costs.
A hybrid work regime, allowing employees to work from home three days a week, allowed the company to reduce real estate space by half, he noted. Going completely paperless also saved the company money.
RSM Malta director Fabianne Ruggier said Malta Enterprise and bank incentives do exist for ESG reasons.