Sustainable and responsible investing in the Maltese context : an analytical study

Abstract

Growing concerns for the preservation of the earth and its natural resources have led to changing consumer preferences and the creation of regulatory frameworks targeting sustainability in businesses and in the financial services industry. The 2030 Sustainable Development Goals, and the European Green Deal are two major developments which have necessitated a unified global movement towards a more sustainable economy. The aim of this study is to evaluate the efforts that have been made by the Maltese investment management industry towards meeting global sustainability goals. The evaluation primarily comprises of six semi structured interviews with representatives from asset management firms, the Malta Financial Services Authority, and the Ministry for Energy, Enterprise, and Sustainable Development. The study evaluates the successes and challenges of sustainable and responsible investing in the Maltese context. Moreover, the study investigates recent regulatory changes targeting sustainability in the financial services sector and the impact these developments have on the investment management industry. It particularly focuses on the European Union ‘Sustainable Finance Disclosures Regulation’ which was implemented on 10th March 2021. A reactive attitude was observed amongst various stakeholders which is ultimately hindering the shift towards a sustainable economy and highlights the requirement for a policy drive. It is recommended that all stakeholders should take a proactive approach to contribute towards the creation of a sustainable financial system rather than awaiting additional regulations at a European level which would make it mandatory.