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Financial statements audits
Financial statements audits
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Financial statement reviews
Financial statement reviews
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Financial statements compilations
Financial statements compilations
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IFRS
IFRS
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Audit quality monitoring
Audit quality monitoring
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Global audit technology
Global audit technology
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Systems and risk assurance
Systems and risk assurance
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Programmes
Grant Thornton is authorised and regulated by the Government of Malta to handle and submit applications for both citizenship applications as well as residence permits under the various residence programmes available in terms of Maltese law.
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Ordinary residency in Malta
Any EU, EEA or third country national who resides in Malta for more than 3 months is obliged to apply for a Residence Permit. There are various grounds upon which an applicant may apply to require a residence permit, including: Self-Sufficiency, Employment or Self-Employment, Family Members, Permanent Residence, Study Purposes.
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Qualifying Employment in Aviation Rule
Malta provides qualified persons employed in the field of aviation with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta. For a candidate to qualify, their annual income must exceed €45,000. This does not include the value of fringe benefits and applies to the derived income received from an eligible office.
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Qualifying Employment in Innovation and Creativity (Personal Tax) (Amendment) Rules, 2019
These Rules allows persons employed in a role directly engaged in carrying out, or management of research, development, design, analytical or innovation activities, to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Qualifying Employment in Maritime and Offshore Oil & Gas Industry Rule
Malta provides qualified persons employed in the field of aviation, with an opportunity to enjoy a 15% flat personal tax rate on income generated from their direct employment in Malta.
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Nomad Residence Permit
The nomad residence permit, which was launched in June 2021, allows third-country nationals who would normally require a Visa to travel to Malta, to retain their current employment based in another country whilst legally residing on the island.
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Citizenship by naturalisation
The Maltese Citizenship Act (Cap 188) establishes who may become a citizen of Malta by naturalisation, provided that the applicant satisfies the relative provisions.
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Citizenship for Exceptional Services by Direct Investment
With the continuously changing global dynamics and evolving geopolitics, there is an ever-growing number of highly-talented high-net-worth individuals who are willing to invest and relocate to give themselves and their family members the chance to broaden their horizons and become part of a welcoming community.
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Grant of Citizenship for Exceptional Services
Malta has enacted legislation which extends to individuals providing excellent or manifestly superior contributions in the fields of science, research, sports, arts and culture as well as people of exceptional interest to the Republic of Malta, the right to become Maltese citizens.
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Acquisition of citizenship by registration
The Maltese Citizenship Act (Cap 188) establishes who can register as a citizens of Malta. The Act was amended on 1st August 2007, this making it possible for second and subsequent generations born abroad to acquire Maltese citizenship by registration.
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Internal audit
Internal audit
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Risk management and internal controls consulting
Risk management and internal controls consulting
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Governance and risk management
Governance and risk management
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Regulatory services
Regulatory services
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Risk modelling services
Risk modelling services
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Forensic and investigation
Forensic and investigation
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Compliance audit
A compliance audit is a detailed review which focuses on whether an organisation is in conformity with statutory laws as well as internal rules and decisions. This type of audit also assesses the effectiveness of an organization’s internal controls by identifying weaknesses in compliance processes whilst finding measures to enhance such processes.
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General business consulting
General business consulting
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Business planning and performance improvement
Business planning and performance improvement
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Change and program management
Change and program management
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Business intelligence and analytics
Business intelligence and analytics
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Business valuation and litigation support
Business valuation and litigation support
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Business process outsourcing and consulting
Business process outsourcing and consulting
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Family business consulting
Our business solutions for family businesses center on alignment of all aspects of the family and business, including culture, vision, mission, values, governance, ownership, leadership, communication and policy development.
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Quantitative small caps
Quantitative small caps
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Data analytics
Data analytics is the process through which businesses leverage data to gain actionable insights and enhance their performance. This is based on a solid foundation of well-organised and accurate data. Many businesses have a large amount of data at their disposal however, most of them do not have the expertise to analyse the available data.
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Maltese Family Businesses Resource Centre
For over 30 years Grant Thornton’s advisory teams have assisted family businesses in navigating the challenges of leadership and succession across generations
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Grooming
Preparing the next generation for leadership and ownership is an integral part of any succession process. Grant Thornton can help formulate the necessary grooming plan for all the potential successors.
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Tax services
Using a combination of reason and instinct, we can work with clients to develop a strategy that helps them understand and manage their tax liability in a transparent and ethical way.
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Access to finance
Like all companies, family businesses need finance. As an ongoing business concern looking at expanding, when it comes to raising capital, it’s important that this is done wisely to minimise the risk of collateral damage.
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Governance
Having a proper governance structure is essential to ensure that the family and business strategies are achieved. Grant Thornton can advise on this, and facilitate the implementation of the ideal governance structure based on the exact scenario.
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Ownership succession
Letting go of your family business is difficult for all owners and even more so for founders; however, in a family business the additional challenge presented by the family component increases the complexity of this process. Our team of family business advisors will ensure that such ownership issues are dealt with in an effective and structured approach.
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Exit strategies
There are many 'exit strategies' that need to be considered to minimise the risk of conflict. They can arise from the eventual exit of a family member from the ownership ranks and can have many causes. See how we can help.
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Management succession
By implementing our family business guidelines to family succession and a proper governance structure, the management succession process can be completed with minimal conflict and will result in the most competent successor being chosen.
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GDPR consultancy
The General Data Protection Regulation (GDPR) is the EU's data protection law which brings a lot of changes for your business to prepare. Grant Thornton can help your business make sure it complies to the new regulation.
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Cyber security consultancy
Cyber security consultancy
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IT business consultancy
IT business consultancy
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Technology implementation
Technology implementation
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ESEF Reporting
We are providing a service for listed companies that fall in scope to report in xHTML. Our service includes the mapping of the taxonomy, as well as the output of the audit/regulator ready xHTML report
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IT Audit and Assurance
Information systems strengthens an organisation’s financial and operational processes. Grant Thornton Malta strengthens your organisation’s need for IT and information assurance.
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Human resource consultancy
Human resource consultancy
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Brand development
Brand development
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Marketing and communications consultancy
Marketing and communications consultancy
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Market research
Market research
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EU funding
EU funding
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Bookkeeping & financial accounting
Bookkeeping & financial accounting
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Payroll and personnel administration
Payroll and personnel administration
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Direct and Indirect tax compliance
Tax compliance within outsourcing
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Compilation of financial statements
Compilation of financial statements
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Business process outsourcing
Business process outsourcing including back office and secretarial
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Family business consulting
Family business consulting
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Startups
Startups
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Company formation
Company formation
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BOR
Entities in Malta, including companies, partnerships, foundations, trusts and associations, have an obligation to disclose the ultimate beneficial owner/s (physical person) of the entities. A beneficial owner is defined as the individual (s) who ultimately owns or controls a legal entity or arrangement through direct or indirect ownership of a sufficient percentage of the shares or voting rights or ownership interest in that entity.
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Operational and financial restructuring and reorganisation
Operational and financial restructuring and reorganisation
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Recovery
Recovery
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Direct international tax
Direct international tax
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Indirect international tax
Indirect international tax
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Global mobility services
Global mobility services
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Transfer pricing
Transfer pricing
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Estate planning
Estate planning
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Wealth advisory
Wealth advisory
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Regulatory and legal
Regulatory and legal
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Corporate tax services
Corporate services
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VAT
At its simplest, VAT is a tax on consumption and is a multi-stage tax (ie applied at every stage of the production process), which is applied to both goods (ie tangible property) and services. Additionally, although the tax is ultimately borne by the consumer (by getting included in the price paid), responsibility for charging, collecting and passing the tax on to the tax authorities, rests with the supplier.
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2018 Amendments of the Income Tax Act
The following is a brief overview of the new tax provisions introduced in 2018 by the Budget Implementation Act (Act VII of 2018) and other legislative enactments
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Mergers and acquisitions
Mergers and acquisitions
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Prospects MTF
As of 2016, small and medium-sized enterprises in Malta can access the capital markets through Prospects - a market of the Malta Stock Exchange (MSE) designed specifically for Small and Medium sized Enterprises (SME). Prospects offers a cost-effective opportunity for entities looking to raise up to €5 million per issue.
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Project financing
Project financing
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Due diligence
Due diligence
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Valuations
Valuations
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Foreign direct investment
Foreign direct investment (FDI) is the category of international investment that echoes the objective of obtaining a lasting interest by an investor in one economy in an enterprise resident in another economy.
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Wholesale Securities Market
WSM is a joint venture between the Malta Stock Exchange and the Irish Stock Exchange, combining the best of each partner’s processes and technical skills.
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Investment Support
The government of Malta has made available several incentive programmes, aimed at supporting Maltese SMEs and start-ups. These support schemes are targeted at different stages of a company’s lifecycle and cover from the start-up to the consolidation and expansion phases. Such incentives are usually promoted and managed by Malta Enterprise, while Trade Malta focuses on supporting businesses to penetrate foreign markets.
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Financial regulatory services
Financial regulatory services
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Ship and aircraft registration
Ship and aircraft registration
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Medical cannabis licensing in Malta
A study published in 2018 by market intelligence and strategic consultancy firm Prohibition Partners, has forecasted that the European cannabis market will be valued €115.7 billion by 2028. According to the same study, while patient numbers are currently below 100,000 across the region, their number is set to grow to over 30 million in the next decade. In 2018 Malta introduced a bill to legalise the use of medical marijuana and attract companies willing to produce high-grade medical cannabis for the European market.
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Trust and trustee services
As an entrepreneur, business owner, parent or guardian, you will want to ensure that whatever happens in the future, the rewards from your hard work can be protected as efficiently as possible. Grant Thornton Fiduciaire Limited (Grant Thornton) understands this and provides a professional and holistic trust management service.
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Family trusts
The law establishes the requirement of a license for one to be able to act as a trustee subject to certain limited exceptions. One such exception is found in the Rules for Trustees of Family Trusts which provide for an exception to this rule where a trust is set up to hold property settled by a settlor or settlors for the present and future needs of family members or of family dependants who are clearly identifiable.
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Aviation
The Maltese Government is constantly remaining to improve the position as the best place to do business within the aviation industry through exhaustive tax agreements, powerful legislation, and many aviation professionals. This is the best time for airlines, financiers and aircraft owners to be located in Malta.
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Maritime
For Maritime, Grant Thornton provide direction with regards to VAT guidelines for yacht leasing, as well as ship and aircraft registration.
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Automotive
We offer a broad range of services relating to automotive, ranging from Transaction advisory, access to finance, business advisory, process and inventory management, tax advisory, audit and advisory, outsourced support services.
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SME Growth
SME Growth
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Startup investment
Start-up investment
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SME Diversification and Innovation
SME Diversification and Innovation
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SME Internationalisation
SME Internationalisation
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SME Consultancy services
SME Consultancy services
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SME eCommerce
SME eCommerce
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Blockchain technology
Blockchain technology
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The Malta Virtual Financial Assets Act
The Virtual Financial Assets Act provides a sound legislative framework for Malta to regulate and responsibly promote the use of cryptocurrencies, crypto-exchanges and other crypto-related services, through which Malta aims to promote further technological innovations and growth, and continue building on its robust financial services industry.
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Our role as a VFA agent
Our role as a VFA agent consists to assist, monitor and provide guidance throughout the full licensing process, and beyond the licensing stage. The VFA agent will be required to apply for the VFA license on behalf of the issuer.
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Initial Coin Offerings
Initial Coin Offerings (ICOs) in Malta have risen to prominence as a method to raise capital from the public, institutions or venture capitalists by selling a percentage of cryptocurrency to investors in the form of tokens in exchange for legal tender (smart contracts).
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Gaming Regulations
Malta recently overhauled the framework regulating the iGaming sector. Going forward operators will still be required to obtain authorisation to carry out regulated activities.
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Licensing Process
Prior to submission all applicants are advised to go through a pre-application process with one of the MGA’s Licensing Officers. This will ensure that the application has been correctly compiled and all the key ingredients are present.
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Malta Real Estate Investment Trust (REIT)
As part of the 2019 budget, the government has pledged to introduce a Real Estate Investment Trust (REIT) framework in Malta.
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The Markets in Financial Instruments Directive (MiFID) II
MiFID II aims to protect investors and make sure that financial markets operate in the fairest and most transparent way possible. Building on stock and investment trading regulation introduced in 2007 it sets to ensure a more integrated financial market.
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Taxation of Malta Collective Investment Schemes
Malta-registered collective investment schemes (CISs) are generally not subject to Malta tax. Given that CIS are properly structured, such schemes generally can take advantage of a number of tax benefits. When it comes to taxation of investors in collective investment schemes, this will depend on what type of income is being received, whether the investor is a Malta resident or not, and if the shareholder is an individual or a body-corporate?
By May Vassallo
Sustainable finance differs from traditional finance. As environmental, social and governance (ESG) considerations relative to investment decisions within the financial services sector started gaining traction along the past few years, a fundamental question emerged, being ‘why is sustainable finance deemed important?’
While the focal point of traditional finance is comprised of optimal financial returns, sustainable finance emphasizes on an extensively broader variety of returns, highlighting environmental, social and governance factors. A customary definition of the term ‘sustainable development’ emanates from the report of the Brundtland Commission of the United Nations, whereby it stipulates that
“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
This is a striking definition as once analysed, it becomes clear that it encompasses a mixture of integrity as well as slight vagueness. It is a righteous statement in advocating the welfare of future generations, however, concurrently, it does not specify or express how society shall administer sustainability. Thus, definitions are not enough; breaking down the ESG acronym is also not satisfactory. Rather, what will increase cognizance within this sphere is guidance, illustration and specific examples portraying how ESG may be amalgamated into an organization’s strategy.
The implementation of sustainable finance within the corporate sphere seeks to fortify and maintain economic growth while concurrently diminishing environmental burden and encompassing social and governance principles.
Sustainable finance plays a crucial part in the circulation of capital required to achieve the policy objectives under the European Green Deal and the European Union’s international engagements relative to climate and sustainability objectives. At present, sustainable finance also has an imperative role in ensuring that investments back up and encourage a resilient economy in order to be able to go beyond and recover from the impact of COVID-19.
The ESG Principles
One motivating factor which attracts the integration of sustainability into business strategy is the opportunities which an approach of this sort has the potential to generate. Furthermore, a substantial number of investors and financial institutions view sustainability as a representation of an organization’s approach towards risk management and the circular economy. From an environmental perspective, investors have been taking into account companies’ accountability in the calculation and management of their effect upon the environment, such as waste and water management and greenhouse emissions. In fact, for a number of investors, the embodiment of the ESG principles is not quite optional. The Authorité des Marchés Financiers (AMF), an authority regulating the French financial market, has since 2011 required investors and asset managers to publish an annual report disclosing how ESG criteria are incorporated in their investment policies. Moreover, as part of its ‘Supervision 2022 strategy’, the AMF carried out ‘SPOT’ inspections in five different asset management companies between September 2018 and January 2019, in order to measure socially responsible investment management systems of said companies.
The European Union (EU) has bolstered its efforts to progress towards a low-carbon, more resource-efficient and sustainable economy. As a matter of fact, the EU has been a driving force of these efforts in terms of the development of a financial system which promotes sustainable growth. In 2019, the European Commission (EC) launched the European Green Deal, a growth strategy the purpose of which is to make the EU the first climate-neutral continent by 2050. The European Green Deal Investment Plan, part of the European Green Deal, shall mobilize a minimum of €1 trillion sustainable investments within the next decade, thereby facilitating public and private investments required for the conversion towards a climate-neutral, greener European economy.
A principal step towards sustainable finance is for financial institutions to opt out of investing in, or rather, lending to, companies which leave behind an unfavourable impact.
The transition towards a more sustainable economy also incorporates the social and governance aspects. Social risks refer to the impact that companies can have on society. They are addressed by company social activities such as promoting health and safety, encouraging labour-management relations, protecting human rights, diversity and inclusion; including gender diversity on corporate boards and gender equity as well as focusing on product integrity. Social positive outcomes include increasing productivity and morale, reducing turnover and absenteeism, coupled with the improvement of brand loyalty. The social aspect relative to how a business organization manages and maintains its rapport with different employees and clientele highlights the extent of its cognizance for human rights, in that, the relationships a company upholds with its employees, for instance, speaks volumes and plays an imperative role in measuring the level of attention which a company gives to the evolution of its employees and its actions towards them. It is important to distinguish between the social pillar in ESG and corporate social responsibility (CSR). Without the latter, there would be no ESG. However, the underlying goal behind CSR is increasing accountability; shedding light upon the integration of social and environmental concerns within the company. While both sound similar in principle, ESG differs as it allows business and organizations to actually measure and record the sustainable and societal effects of their output, as it is quantifiable and criteria-led. In March 2019, the Global Reporting Initiative stipulated that two decades ago, only a few companies published their environmental performance, as opposed to nowadays, where 93% of the world’s largest companies by revenue report information on their ESG. Naturally, the inclusion of ESG, shall not solely fight social injustice, but would also boost shareholder and employee engagement.
Substantial evidence sheds light on the fact that the governance aspect of ESG sequentially yields larger corporate returns. Governance may be gauged through numerous aspects in a business organization, such as, risk management, tax strategy, board structure and independence, transparency, supply chain management, auditing, compliance and codes of business conduct. Investor assurance veers towards good corporate governance; after all, corporate governance matters make headlines on a regular basis. An investor would want to know that a company’s financials are not only accurate, but also transparent and that it encompasses ethical business practices. Investors are drawn towards company policies which promote shareholder (including minority) engagement and are highly likely to be averse to a company which does not seemingly address long-term risk to its business. Another key governance criterion is gender diversity and equality, something which is high on the agenda of institutional shareholders.
Sustainability should not be viewed as the exciting side project. To the contrary, it should be an integral part of the core strategy of any company, business organization and financial institution, as it does not solely affect an organization’s risks and opportunities, but also how resources and employees are dealt with. The underlying principle should be driven by an appreciation that all actions should safeguard the interests of future generations. Businesses and organizations with a clear ESG culture, balancing the focus on traditional business efficiency principles with sustainable, socially responsible and environmentally aware business practices are bound to prosper as this does not only draw customers in but also retains them.