Climate change is one of the most pressing problems facing our world today, affecting everyone, young and old, and everything, from what we eat to how we do business. As a small archipelago situated in the middle of the Mediterranean Sea, Malta’s unique geography poses several significant challenges. Scarce natural resources force heavy reliance on imports, while over-tourism and an ever-increasing population strains ecosystems and culture. Challenges related to waste management, water scarcity, and traffic congestion pose further environmental threats, making climate change vulnerabilities, biodiversity preservation and a shift away from fossil fuels matters of urgent concern.

At PwC, we believe the business community has a key role to play in making that happen. We’re determined to play our part, which is why we have made a worldwide commitment to achieve net zero greenhouse gas (GHG) emissions with near-term science-based targets set for 2030. Locally here in Malta, our dedication to achieving net zero remains unwavering. Over the past year, we have continued to advance our local net zero action plan by eliminating, reducing, substituting, and compensating for our carbon emissions through the purchase of high-quality carbon credits.

How will we achieve this?

Reducing emissions

Across our network, we commit to reducing our total greenhouse gas emissions by 50% in absolute terms by 2030. This includes investing in renewable energy sources in all territories, as well as energy efficiency improvements in our offices, and halving the emissions associated with business travel and accommodation within a decade. The COVID-19 pandemic has accelerated the shift to remote working and demonstrated the feasibility of new client delivery models, part of a longer-term transformation of our services.

Carbon removal projects

We will invest in carbon removal projects, including natural climate solutions. For every remaining tonne of CO2 equivalent that we emit, we will remove a tonne of carbon dioxide from the atmosphere to achieve net zero climate impact by 2030. Our projects will be selected based on quality criteria and verification of the carbon reduction impact and will also support broader local economic and social development co-benefits.

Progress so far

Our organisational boundary

In line with the operational control approach, any organisation that trades under the PwC brand or is operationally controlled by an organisation that trades under the PwC brand, shall be included within the organisational boundary. This covers PwC Malta and all its subsidiaries, including the PwC Academy.

Scope 1 & 2 emissions

Scope 1 emissions refer to direct GHG emissions from the consumption of fuel. In our case, this refers to the emissions from three ICE vehicles that are used as part of our daily operations.

Scope 2 emissions refer to indirect GHG emissions from the consumption of purchased electricity and make up a significant portion of our total footprint. In FY23, scope 2 emissions represented 48% of our total Scope 1, Scope 2, and Scope 3 Business Travel emissions.

To mitigate these emissions, we have implemented several initiatives. In FY22, we upgraded old HVAC systems and installed more energy-efficient heating and cooling equipment. In early 2023, we introduced temperature limits on all AC units. Smart controls through a new building management system and infrared films on windows have further reduced energy waste. We have transitioned to LED lighting and installed photovoltaic panels on our car park roof, supplying renewable energy for our operations.

Despite our recent office expansion and increased headcount, we achieved a 25% reduction in total Scope 1 and Scope 2 emissions from our FY19 baseline. This progress demonstrates our commitment to sustainability, bringing us halfway to our goal of a 50% reduction by 2030. We will need to continue to pursue initiatives that enhance energy efficiency and reduce our carbon footprint as we progress to 2030.

Scope 3 emissions

Our scope 3 emissions relate to emissions from purchased goods and services (category 1) and business travel (category 6). Addressing Scope 3 emissions, particularly from business travel, is our main point of focus given Malta's reliance on air travel. These emissions accounted for 52% of our total Scope 1, Scope 2, and Scope 3 Business Travel emissions in FY23, including emissions from air travel, land-based travel, and overnight accommodation.

In FY23, we saw a 6% decrease in business travel emissions from FY22, achieving a 12% reduction from our FY19 baseline. This progress was made despite increased travel post COVID-19. Here we are optimising travel practices, increasing virtual meetings, and encouraging sustainable travel options where feasible.

Decarbonising our supply chain is also a priority but a struggle. While only 2.5% of our purchased goods and services emissions in FY23 were from suppliers with science-based targets (SBTs), we are committed to engaging with suppliers to adopt SBTs. By FY25, PwC globally aims for 50% of suppliers by emissions to set SBTs.

Offsetting emissions

We have committed to purchasing high-quality carbon credits, transitioning our carbon credit portfolio to 100% carbon removals by FY30. PwC Malta has successfully offset 555 tonnes of CO2e for FY23, equivalent to all our Scope 1, Scope 2, and Scope 3 business travel emissions.

Client support and advocacy

The years to 2030 will be the most crucial years for climate action, making client support and advocacy central to our net zero commitment. As the leading professional services firm, we have a huge opportunity to accelerate the transition to a net zero future together. Today more than ever, our clients need to manage sustainability risks and opportunities within organisations and across value chains, and communicate and build trust by understanding, managing, and reporting social and environmental impacts.

PwC supports reform that puts the needs of stakeholders at the heart of the market economy and connects goals, actions, and outcomes into desired social and economic results that fuel long-term sustainability. Supporting the net zero transition is a key part of this process. We are deeply supportive of global efforts to develop transparent and robust ESG reporting frameworks and standards, including through work with the World Economic Forum International Business Council, the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD), the Global Reporting Initiative (GRI), and the Sustainability Accounting Standards Board (SASB), among others.

CDP

One of the ways in which we disclose PwC’s environmental performance is through CDP, a not-for-profit charity that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Disclosure drives action and CDP scores companies from D- to A, by taking them on a journey from disclosure through awareness and management, and finally to leadership.

We are proud to announce that we achieved an A- for our 2023 CDP submission, meaning we have achieved leadership status.

Climate change physical risk assessment

While net zero addresses our business’s impacts on the environment, the Task Force on Climate-related Financial Disclosures (TCFD) addresses how we are tackling the impacts of climate change on our business and addressing the risk that climate change brings.

As a result, we have undertaken a climate change physical risk assessment focusing on the direct impacts affecting PwC Malta’s operations, services, or people. While most climate hazards fall below the threshold for significant impact, drought stands out as both a current (2020) and future (2050) concern. We are identifying and developing plans for business responses needed to mitigate or adapt to the direct physical impacts identified.

12 results

17/03/25

How CFOs can lead on ESG reporting and sustainability strategy

CFOs are central to integrating sustainability into corporate strategy, ensuring compliance, and leveraging financial and operational benefits within ESG projects. Key responsibilities include embedding sustainability into decision-making, engaging stakeholders, optimising tax incentives, and maintaining rigorous reporting. Technology and AI enhance ESG data management, ensuring accuracy and efficiency. By aligning sustainability initiatives with financial strategy, CFOs can drive cost savings, growth, and resilience.

4 Min Read 25/02/25

Sustainability certifications: moving beyond compliance to drive business growth

With growing regulatory and market pressure, certifications like ISO, EcoVadis, MSCI, CDP, Bloomberg, Green Key, LEED, BREEAM, and B Corp provide clear guidelines for meeting environmental and social standards. They enhance reputation, attract investors, and bring financial benefits. Achieving certification requires documentation of key relevant policies and procedures, audits, and ongoing compliance. Selecting the right certification ensures long-term value, and external support can simplify the process, turning it into a strategic advantage rather than a challenge.

03/02/25

Overcoming five key challenges for a winning climate-transition strategy

A climate-transition strategy outlines how organisations align with net-zero goals through emissions reductions, governance, and stakeholder engagement. It ensures sustainability, regulatory compliance, and resilience while securing financing, building credibility, and driving decarbonisation. Key challenges include aligning solutions with customer behaviours, adapting to long-term shifts, relying on data over emotions, managing external dependencies, and balancing core operations with new initiatives. Clear priorities and adaptability are essential for success.

18/11/24

PwC’s Global CSRD Survey 2024: the promise and reality of CSRD reporting

PwC’s 2024 Global Corporate Sustainability Reporting Directive (CSRD) Survey reveals that despite tight timelines and complexities, companies anticipate tangible benefits from CSRD reporting. Key findings include expectations of revenue growth and cost savings, with financial services sector participants being particularly optimistic. However, challenges such as low completion rates for early-stage activities, lack of senior stakeholder involvement, and low technology adoption persist. The survey highlights the involvement of multiple business functions in CSRD implementation and the integration of sustainability into decision-making processes, which is expected to bring various business benefits.

3 Min Read 05/11/24

CSRD: From compliance to strategic value creation

The Corporate Sustainability Reporting Directive (CSRD) is a transformative regulation that requires businesses to integrate sustainability into their strategies, enhancing value creation for shareholders and society. By mandating detailed disclosures on sustainability impacts, risks, and opportunities, CSRD aims to improve the quality of sustainability reporting and foster long-term growth and innovation. To ensure readiness for compliance, companies should understand their obligations, establish robust data systems for accurate reporting, and engage top leadership in sustainability initiatives. These actions will not only facilitate compliance but also position organisations to leverage sustainability as a strategic advantage.

17/09/24

From greenwashing to genuineness

Greenwashing misleads consumers about environmental benefits. Companies face reputational damage, financial penalties, and legal action when exposed. To avoid greenwashing, the Anti-Greenwashing Framework promotes transparency, honest ESG communication, and monitoring of global supply chains. It emphasises compliance culture, external validation, and integrating sustainability goals into risk management and operational strategies.

16/07/24

Turning energy demand into strategic opportunity

Organisations can turn energy demand into a strategic advantage by reducing energy intensity, securing affordable low-carbon energy, and increasing efficiency with electric options. This approach can enhance revenue, mitigate risks, and improve sustainability. Malta's energy transition efforts align with the European Green Deal, emphasising renewable energy and decarbonisation, offering businesses opportunities for cost reduction and strategic alignment. While many world leaders heralded the return of the US to the climate roundtable and the fight against climate change, all participants highlighted the risks the planet is facing and the importance of taking action in the next decade. The signs are unmistakable and the science undeniable. Rising global temperatures are leading to catastrophic weather events that are in turn having negative effects on economies, food security, public health, biodiversity and life in general. Climate change is an imminent challenge that the world needs to solve, and mother nature is not waiting around. As a result, decisive action is needed to build an economy that is cleaner, stronger and more equitable. To do this, political will is needed to mobilise both public sector and private sector investment in a rapid manner.

03/06/24

The rise of Chief Sustainability Officers

As demands for climate action and ESG accountability grow, the role of Chief Sustainability Officer (CSO) is becoming crucial. CSOs oversee sustainability strategies, but their influence varies. Different CSO archetypes include CEO-CSO, C-level CSO, Standalone CSO, Core Business Function CSO, and Support Function CSO. Integrating CSOs into strategic decision-making enhances their impact and supports ESG transformation.

14/05/24

The new sustainability mandate

Businesses face rising energy costs and climate change pressures, necessitating comprehensive energy management strategies. In the EU, industrial and commercial sectors contribute significantly to energy consumption. To mitigate this, businesses must reduce demand, optimise usage, and transition to renewables. In Malta, vulnerable to global market fluctuations, robust energy strategies are imperative. Collaborative efforts and transformative approaches are key. Practical steps include engaging teams, digital transformation, investing in energy transition projects, operational improvements, and collaborating across the value chain. Government initiatives like retrofit grants support these efforts.

28/03/24

Pitfalls companies should avoid when conducting a CSRD-aligned double materiality assessment

The EU's CSRD mandates sustainability reporting akin to financial reporting, requiring a "double materiality" assessment to gauge impacts on stakeholders and society. Common pitfalls include hastily producing undocumented assessments, overlooking subtopics and the value chain, and over-reliance on assessment tools. Balancing financial and impact materiality is crucial, as is engaging the entire enterprise and ensuring transparency with assurance practitioners.

11/03/24

Climate adaptation and its implications on organisations

Adapting to climate change is crucial for businesses. In 2024, global temperatures breached the 1.5°C limit, signalling severe consequences like extreme weather and biodiversity loss. Over half of CEOs foresee climate risks in the next five years, urging firms to act. Combining climate adaptation with decarbonisation offers benefits while recognising trade-offs is vital. Tech innovations aid in identifying risks and opportunities. Climate adaptation is essential for financial stability, innovation, and regulatory compliance. Customised approaches are necessary for long-term success.

31/01/24

Understanding the CSRD Double Materiality Assessment Process

The Corporate Sustainability Reporting Directive (CSRD) introduces the Double Materiality Assessment (DMA) as a crucial exercise for businesses. PwC outlines a seven-step process, including stakeholder engagement, listing sustainability matters, defining impacts and risks, quantifying impacts, assessing financial risks, creating materiality overviews, and disclosing strategic implications. Practical tips emphasize stakeholder involvement, translating criteria, granular assessment for insights, organizational sharing, and meticulous documentation for external assurance. This DMA is a vital first step for CSRD compliance, aligning sustainability efforts with organizational and stakeholder priorities.

PwC Malta’s net zero commitment