The chairman of the Malta branch of the Institute of Directors, James Satariano, recently announced a new initiative on sustainable development for the local business community to be launched by IoD through bringing Sir Martin Laing, CBE, to Malta to give a luncheon presentation on Thursday at 12.30 p.m. at the Corinthia Palace Hotel, Attard, on "Business in the Environment".
Sir Martin is a member of the World Business Council for Sustainable Development and Trustee Emeritus of the World Wide Fund for Nature (WWF) and president of the Institute of Export. He is a past president of the Construction Confederation and formerly group chairman of John Laing plc. and currently a non-executive director of this leading UK developer, owner and operator of infrastructure, housing and other accommodation.
Sir Martin argues that it is not just the environment that benefits from enlightened business practices. Companies committed to sustainable development continue to outperform the world's stock markets and earn higher revenues for their shareholders.
Annual presentations of a global index of the world's "most sustainable firms" shows the return on equity of the Dow Jones Sustainability Group Indexes (DJSGI) averaged 15 per cent, compared with just eight per cent from companies in the regular Dow Jones Index. The DJSGI was launched in 1998, aiming to demonstrate that firms that are strong on the environmental, social and economic tests of sustainability should outperform the general market.
The index of over 200 companies is made up of the top 10 per cent most sustainable firms. The UK is represented by 30 companies (more than 10 per cent of the total) and includes household names such as Sainsbury's, Thames Water, Boots and Powergen.
UK company Unilever was the most sustainable firm in the 'food products' section. Anglian Water and Thames Water headed the global index for the utilities sector. So why not Enemalta, Water Services Corporation or other well known Maltese firms?
Can an organisation that conducts its business in a socially and environmentally responsible manner also be consistently profitable? Sir Martin believes it can. In fact he believes that, in the years to come, the only truly successful businesses will be those that achieve a sustainable balance between their own interests, and those of society and the natural world.
Mr Satariano comments that it is a natural extension of the work that IoD has been doing in Malta since 1998 to raise awareness of corporate governance issues that IoD decided to invite Sir Martin to introduce the wider idea of corporate social responsibility to Maltese company directors, Government and senior civil servants.
This interest in breaking new ground in Maltese corporate consciousness is reflected in the UK's Review Law Steering Group which has developed proposals that require most public and very large private companies to publish a new mandatory Operating and Financial Review as part of the annual report. This is designed to address the need in a modern economy to account for and demonstrate stewardship of a wide range of relationships and resources, which are of vital significance to a modern business, but often do not register effectively, or at all in traditional financial accounts. This would include policies and performance on community, social, ethical and reputational issues, and environmental policies and performance, including compliance with relevant laws and regulations.
Having devoted his career to the construction industry, Sir Martin believes that Malta will benefit from a strategy for more sustainable construction - a blueprint produced in close consultation with the construction industry for modernising the way in which our homes, workplaces, leisure facilities, hospitals, schools and their supporting infrastructure are designed and built.
He argues that government action alone won't make construction more sustainable. The industry itself has to understand that sustainable construction is about competitiveness, survival, corporate responsibility and enlightened self-interest. Above all, that it makes good business sense.
Sir Martin added: "We have tried to show what sustainability means in practical terms and what people can be doing now to become more sustainable. It is not rocket science. Nor does it conflict with other business objectives."
Those attending the IoD luncheon on "Business in the Environment" should include anyone involved or interested in sustainable development, including persons in the construction industry, hospitality industry, manufacturers, financiers, hospital administrators, MEPA, health and safety officials, Government entities, senior civil servants, educators, diplomats, journalists, environment campaigners and activists.
For registration or more information contact IoD's honorary secretary, James Arrigo, on 2124-7400,
e-mail: jamesarrigo@waldonet.net.mt.