The world has changed. The effects of climate change are increasingly being felt, the COVID-19 pandemic has impacted every facet of our lives and the Russia-Ukraine war is having consequences on Europe’s economy and further impacting on supply chains and costs.
Meanwhile, the European Union is racing ahead with the implementation of the Green Deal, with legislation such as the EU Taxonomy and the Sustainable Finance Disclosure Regulation already in effect, and other proposals – like the Corporate Sustainability Reporting Directive – in the pipeline.
The construction sector can no longer operate under a ‘business as usual’ model, simply because ‘as usual’ does not exist anymore.
The construction sector is essential to our well-being and standard of living. But in its current form, the industry is resource-heavy, placing pressure on natural resources and contributing to greenhouse gas emissions directly and indirectly.
Housing affordability issues have led to greater inequalities, and labour shortages are leading to a skills gap, with potential risks to quality. Within a wider governance perspective, we are aware of how integral construction is today to Malta’s economy, and how that dependency may lead to additional risks, translating into an increased scrutiny of transactions.
Mindful of the importance of sustainability in construction, particularly in the local context, KPMG in Malta is currently undertaking a research study to understand to what extent residents in the Maltese islands prioritise and value sustainability when purchasing and renting property. Among others, this survey will obtain insights on:
• How important is sustainability when purchasing and renting property, compared to other factors such as location?
• What sustainability features do residents in Malta value most when buying or renting property?
• How much more are residents willing to pay for property that has been built with sustainable methods and that supports a sustainable lifestyle?
• Who should take the lead in ensuring that new property on the market is in line with sustainability principles?
The insights gained from this survey will be shared at the upcoming KPMG conference titled ‘The Future of Malta’s Property Market’ conference to be held on October 28. These results are timely, not least considering the challenging financial context in which the sector is currently operating, as they will enable the sector to identify the sustainability opportunities that make both environmental and business sense. They will also help the various stakeholders, including the government and regulators, better understand society’s expectations in terms of their role in supporting the sector’s transformation towards sustainability.
The impact of ESG on Malta’s property market will be one of the topics discussed at the upcoming KPMG conference titled The Future of Malta’s Property Market, to be held on Friday, October 28. For tickets and more information, log on to https://kpmglearningmalta.com/courses/the-future-of-maltas-property-market/ or call +356 9946 7927.
For more information about KPMG’s ESG Advisory services, contact Rachel Decelis on racheldecelis@ kpmg.com.mt or David Pace on [email protected].
Written by Rachel Decelis, senior manager, ESG, KPMG in Malta, and David Pace, partner, head of advisory, KPMG in Malta.
