Thirteen of Malta’s top businesses have joined forces in a private sector alliance that will tackle environmental, social and governance (ESG) issues. 

ESG (Environmental, social and governance) is a set of standards for businesses to ensure they are socially conscious investors and follow good governance measures.

The setting up of the Malta ESG Alliance (MESGA) was announced at a press conference on Wednesday featuring the CEOs and top representatives of the founding members. 

The founding members are: Alberta Group, APS Bank Plc, AX Group Plc, Bank of Valletta Plc, GO Plc, HSBC Bank Malta Plc, International Hotel Investments Plc, Malta Public Transport Services Ltd, MAPFRE Middlesea Plc, MEDSERV Operations Ltd, Melita Ltd, PC Group Plc, and Toly Products Ltd. 

The alliance members are supported by architect David Xuereb and the consultancy firm EY Malta. 

The 13 members of MESGA and the alliances logo. Photo: MESGA

The MESGA’s first ESG theme will be decarbonisation.

Xuereb described the forming of MESGA as a ‘dream come true’. 

“Here we see businesses coming together to collaborate with the right intentions and to take action to do the right thing, not just for their own businesses but also for society as a whole,” he said. 

He said the members will work to ensure the environment is protected, for social and governance priorities to shine, and the alliance will work on long-term values and plans. 

Alliance to ‘shake up’ and influence other businesses 

Xuereb said the alliance is set to ‘shake up’ and motivate other businesses and supply chains to push for decarbonisation and to reach their ESG goals.

“What the alliance is trying to do is to encourage companies to take certain decisions not because a regulator is asking us to do so, but rather because it actually makes sense and adds value to the business and society,” he said. 

He stressed that the alliance is not a ‘greenwashing opportunity’ but adds value to the business and society, attracts talent and increases the company’s reputation.

During the launch, the founding members explained the projects and long-term measures they have taken on to reduce their carbon footprint.

Some of the projects include renewable energy investments, electrification of transport, fleet management and better use of building infrastructure. Other companies have adapted better use of technology to reduce emissions and also mobility programmes for employees. 

"The alliance is open to any business that shares these values and is willing to form part of this mission. ESG makes business sense and as an alliance, we will be increasing initiatives that drive absolute decarbonisation actions," Xuereb said.