Majority of Employers say ESG must be integrated into core business strategy
Coordinated national strategy required to guide stakeholders in transitioning towards a sustainable and socially responsible economy.
- ESG shifts from compliance to the core of business strategy. Employers say real impact comes from embedding ESG into decision-making, backed by board-level literacy and reliable data, not box-ticking or stand-alone targets.
- Lack of clarity, not lack of intent, is stalling progress. Knowledge gaps and undefined standards remain the main barriers preventing businesses from moving faster on ESG.
- SMEs need practical help, and banks will drive change. Grants, hands-on advisory support and simple tracking tools are seen as critical, as ESG increasingly becomes a condition for finance and doing business.
Employers are increasingly realising the benefits of incorporating environmental, social and governance (ESG) considerations into their business strategies as opposed to treating ESG as a compliance-driven exercise, according to insights gathered by Malta Employers during its annual SME Week conference.
The findings were consolidated into a dedicated publication, which was formally launched at Parliament today during an event chaired by the Speaker of the House of Representatives, Hon Dr Anġlu Farrugia, who in his opening address, underlined Parliament’s constitutional role as the forum where matters of national importance are examined with independence, balance and institutional responsibility. He noted that the analysis and recommendations emerging from Malta Employers’s publication constitute a serious civic and intellectual contribution to public discourse, while their consideration and any subsequent action fall within the remit of the competent institutions.
Feedback from employers pointed to a clear shift in how ESG was being understood and applied. Sustainability and corporate reputation were widely recognised as key benefits, alongside ESG’s growing role in supporting employee engagement, employer branding and organisational culture. Employers increasingly view ESG as a contributor to long-term resilience, talent retention and stakeholder confidence.
Participants consistently underlined the importance of embedding ESG into their core decision-making and governance structures. ESG was seen as delivering the greatest value when integrated into business strategy, supported by reliable data that strengthened accountability and informed leadership decisions.
“Employers are sending a clear message that ESG works best when integrated into how organisations plan and lead,” says Ivan Refalo, President of Malta Employers.
“This emerged not only from the advice of the experts interviewed and from a number of small and large entrepreneurs who participated, but also from a survey conducted during the conference, which found a strong majority in favour of including ESG in their business strategy.”
The findings also highlighted the growing importance of board-level ESG capability, with strategic literacy increasingly seen as essential to effective risk management and organisational performance.
At the same time, employers acknowledge ongoing challenges, particularly for SMEs, namely limited expertise, complex standards, cost pressures and uncertainty around return on investment which continues to hinder implementation. To address this, participants stressed the need for practical support, including grants, advisory services and simplified tools.
“These insights reinforce the need for a coordinated national approach,” added Mr Kevin J Borg, Director General at Malta Employers. “For ESG to succeed in practice, businesses, particularly smaller ones, needed clarity, skills and resources. This shows that there is a real appetite for ESG in our country, but to succeed we need a coordinated national strategy that looks ahead and ensures these principles help our nation transition toward a sustainable and socially responsible economy”.
The findings will inform Malta Employers’ ongoing policy engagement and future initiatives aimed at supporting a transition towards more sustainable, responsible and resilient business models.
The full publication is available here.
ENDS
27 January 2026