Leading on sustainability

How we’re driving impact in the local context

As we look back on the past year, it is clear that the urgency to address environmental, social, and governance (ESG) issues remains more critical than ever. For the first time, global average air temperature has exceeded the 1.5°C threshold across an entire year, as we saw extreme weather events becoming part of the norm, reflecting not only the climate crisis but also the need for more comprehensive action and investment. Record-breaking sea temperatures, shrinking ice caps, and increasingly volatile weather patterns have intensified global discussions on the need for decisive environmental action, while issues related to social equity and governance have also gained in prominence.

These challenges have only become more immediate as nations, businesses, and communities are forced to adapt quickly to avoid long-term consequences. In Malta, 2024 has been a defining year for sustainability as we’ve come to terms with pressures from the need to decarbonise, protect our green spaces and focus on trying to balance economic development with our quality of life. The country is now more committed to transforming its energy systems, enhancing urban infrastructure and advancing the circular economy. While progress has been made in areas like transport, waste management and governance, it is clear that there is still much work to be done.

At PwC, our mission is clear: to support all stakeholders in navigating this complex ESG landscape, providing the insights, tools, and strategies needed to foster environmental innovation, social equity, and stronger governance.

How we're playing our part

Supporting our clients in their CSRD journey

With the timeline for CSRD reporting fast approaching, and a number of the large, listed entities preparing for public disclosure, our efforts to support our clients with CSRD have been non-stop. By taking a structured and collaborative approach, we have sought to guide our clients through every step of the journey: from assistance with undertaking a Double Materiality Assessment (DMA), to support with carbon footprinting, particularly around scope 3 emissions, to measurement of all other ESG metrics, to assistance with mapping the whole value chain, and the formulation of their sustainability statement.

While each sector and each organisation is different, the pain points are the same: time, resources, skills and governance. Along with all other business pressures, allocating sufficient time, finding the right people, with the right set of skills, and setting up the appropriate oversight structure around ESG may seem like an insurmountable task.

Despite this reality, many organisations are working hard to get CSRD reporting right, and our teams have been with them every step of the way, providing technical input, tailored solutions, and building strong relationships along the way.

Supporting the public sector with policy initiatives

Beyond the private sector, we’ve also been supporting the national government with a number of key policy initiatives related to sustainability. This has included working closely with public entities to understand the existing challenges being faced, and what forms of policy can be implemented to help create the change Malta needs.

This has included developing and implementing new methods, strategies, and technologies focused particularly on the built environment and on the circular economy. Our ongoing efforts are helping the public sector navigate evolving challenges while ensuring they are well-equipped to meet future demands.

Additionally, we have hosted a series of impactful sustainability-focused events that brought together local leaders, industry experts, and key stakeholders to explore ESG initiatives and their relevance to both public and private enterprises. These efforts reflect our dedication to fostering collaboration and creating shared solutions to address Malta’s sustainability challenges.

Supporting the industry in navigating ESG tax implications

A significant aspect of the ESG discussion revolves around green taxes and incentives. As new regulations emerge and reporting requirements become more complex, we have been actively supporting our clients in navigating the tax implications tied to their ESG initiatives. Our assistance focuses on helping them understand the broader financial landscape associated with ESG, ensuring compliance with regulations while optimising their tax strategies.

We have successfully guided numerous clients in accessing both national and EU-funded grant schemes aimed at promoting ESG-driven projects. These grants have supported investments in areas such as energy-efficient machinery and funding for building renovations. In addition to grants, we have facilitated access to various tax credits, including the Investment Aid for Energy Efficiency Projects Scheme, which helps businesses aiming to enhance energy efficiency, and the Change to Grow Scheme, which encourages SMEs to adopt sustainable business practices and invest in projects that strengthen their operations. By doing so, we have encouraged businesses to view sustainability not merely as a compliance requirement but as a strategic lever for profitability and long-term success.

Supporting our own teams

Like our clients, PwC is going through a transformation process itself and in this year in particular we have expanded our team to include a number of new professionals with diverse backgrounds. As we expand our team, we also expand our capabilities. We have embedded sustainability expertise in every line of service across the firm, introducing dedicated sustainability teams across all areas to ensure that sustainability is integrated into the core of our solutions and client offering.

This enables us to anticipate the challenges our clients may face whilst ensuring comprehensive solutions and quality. As the team continues to grow, we remain dedicated to solving increasingly complex issues with innovative approaches. Our commitment is to keep investing in our people and ensure they have the right skills to, in turn, support the firm and its clients across the sustainability landscape.