Welcome to the 1st edition of the KPMG report on employee expectations and experiences on ESG in Malta.
We are witnessing several megatrends that are transforming our lives.
Businesses are increasingly prioritising sustainability as they recognise its critical role in long-term success. This shift is not just about mitigating environmental and social impacts, but also about generating value and creating opportunities. From improving operational efficiency to enhancing brand reputation, sustainability is becoming a key driver in decision-making processes. Additionally, businesses are recognising that sustainable practices can drive innovation, establish new markets, strengthen customer loyalty, as well as attract and retain talent. Moving forward, embedding sustainability within core business strategies will emerge as an essential element of corporate responsibility and competitive advantage.
To operate successfully in this shifting environment and to attract and retain the right type of talent, businesses need to start focusing on ESG in the same way that they have done with more traditional business performance indicators, such as lead-to-client conversion rates or profit margins. From a ‘People’ perspective, ESG impacts the experience of the general workforce twice fold. Not only do employees working for businesses with strong ESG commitments tend to report better work experiences, feeling more satisfied and engaged1, but this understanding is leading to increased selectivity by job applicants, who are equally gravitating towards businesses recognised for being 'great places to work'.
KPMG in Malta conducted a nationwide study in August 2023 which sought to explore whether:
a) respondents place importance on whether businesses actively address ESG issues;
b) ESG is a driver of attracting purpose-driven job seekers, and retaining talent
c) a discrepancy exists between workplace expectations and experiences; and
d) ESG and salary hold comparative significance.
The key insights from our research showcase the value that employees and job seekers in Malta place on ESG:
We acknowledge that integrating ESG principles into your business requires effort. However, it is worth noting that ESG serves not only as a tool for enhancing organisational performance but is also vital to secure the ongoing environmental, social and financial sustainability of your organisation and cannot be ignored. We propose key action points on ESG, which can be used by leaders to make the first steps towards better ESG performance and position their organisation as the employer of choice. While the concept of ESG may appear daunting, small incremental changes can lead to sustained progress and contribute positively to our collective future.
[1] Workplace, 2024. What is ESG and why does it matter? Refer to link.
