Corporate governance and ESG in Malta and how it’s good for your career

Corporate governance and ESG in Malta – how to take advantage of local supports as part of a rewarding career. 

Malta is small, but it has emerged as a dynamic hub for business and finance, with a reputation that goes far beyond its borders. Not only that, but the country has recognised the potential of such an important career and has made specific support available to those looking to expand their expertise in the area.

The Maltese government is willing to invest in governance education to ensure top-quality leadership as far as possible. 

The result is the Get Qualified Scheme, which effectively reimburses a portion of the fees you might need to pay for a governance education programme. 

Once you have completed your program, the next step would be to sign up with Get Qualified and initiate the process of claiming your tax rebate. This involves submitting your certificate, proof of payment, and other necessary documents. After final approval, you can claim up to 70% of the course fee in tax credits.

It’s a unique system designed to enable personal and professional growth, and you can learn more about it from our local partner, Tuning Fork, part of NOUV. 

Malta enjoys a strategic combination of factors that make it a popular destination for business:

• It’s a member state of the EU – in other words, doing business in Malta means you have the entire EU market at your doorstep. 
• It has a quiet and stable political climate. 
• It has an attractive tax regime. 

As an EU member state, there are many eyes on corporate governance standards in Malta, both locally and from Brussels. 

The primary legislation in Malta is the Companies Act, passed in the 1990s. Malta has a corporate governance code, while the Malta Financial Services Authority (MFSA) plays a vital watchdog role in setting other standards and suggesting areas for improvement.

The 12-point code covers boards’ operation, responsibilities, management and communications.

It is a mix of national and EU-level legislation. 

National legislation governing ESG is not clear-cut. Instead, a mix of requirements laid out in multiple laws is what gives the country its basic ESG rulebook. 

The more important level of laws comes from the EU, which continues to take a more ambitious stance on sustainability across its 27 member states. For many businesses in Malta, this means compliance with the new Corporate Sustainability Reporting Directive (CSRD). 

It has been in force since January 2023 and requires all large and listed companies to disclose specific information on ESG risks and opportunities.

To excel as a director in Malta, it’s essential to understand and adhere to the responsibilities outlined by the MFSA, the code, and the Companies Act. Note also that some industry-specific regulators have issued guidance purely for their industry, such as this ESG Best Practice document from the Malta Gaming Authority (MGA).

Above all, and like anywhere else, it’s also becoming more essential to receive dedicated training to match the greater responsibilities on directors’ shoulders.

If you are based in Malta and seeking training in corporate governance and ESG, please contact our partner, Tuning Fork, part of NOUV, to find out how to expand with essential knowledge.