Strategic Foresight and ESG: How Maltese SMEs Can Secure a Sustainable Future

Article by Dr Roberta Lepre – Managing Director WEAVE Consulting

The European Commission’s Strategic Foresight Report 2023 highlights the urgent need for a sustainable economic transition. It underscores how businesses must adapt to geopolitical shifts, funding challenges, social cohesion concerns, and rising sustainability demands. For SMEs in Malta, this is not just a compliance exercise—it’s an opportunity to future-proof their business models, enhance resilience, and tap into new markets.

At Weave Consulting, in collaboration with the Malta Chamber of SMEs, we are actively supporting businesses in navigating these transitions. By identifying key ESG (Environmental, Social, and Governance) priorities, SMEs can not only mitigate risks but also unlock financial, operational, and reputational advantages. This article will explore key takeaways from the Strategic Foresight Report and outline actionable ESG steps for SMEs.

Why ESG Matters for SMEs

1. Adapting to a Net-Zero Economy

The EU is accelerating its transition to a net-zero economy, with sustainability at the core of its competitiveness strategy. This means stricter environmental regulations, higher expectations from supply chain partners, and increased financial incentives for sustainable businesses.

What SMEs Can Do:

• Conduct an ESG audit to assess environmental impact.
• Improve energy efficiency through renewable energy solutions and waste reduction.
• Engage in sustainable procurement by selecting responsible suppliers.

2. Accessing Funding and Financial Incentives

One of the biggest challenges highlighted in the report is the increasing pressure on funding. The green transition requires over €620 billion annually in investments, with most coming from private funding. However, SMEs often struggle to access these financial opportunities.

What SMEs Can Do:

• Explore EU sustainability grants and green financing options.
• Develop an ESG-aligned business strategy to attract investors.
• Leverage incentives for energy-efficient upgrades.

3. Addressing the Green and Digital Skills Gap

A sustainable future depends on a workforce equipped with the right skills. The Strategic Foresight Report stresses that a lack of sustainability and digital skills could hinder SMEs’ ability to transition effectively.

What SMEs Can Do:

• Invest in ESG and digital and green skills training for employees.
• Partner with educational institutions or other relevant stakeholders to develop relevant skills.
• Encourage lifelong learning and upskilling in sustainability practices.

4. Strengthening Social Cohesion and Employee Wellbeing

The report warns that social inequalities and cracks in cohesion could undermine economic stability. SMEs that prioritize social impact and employee wellbeing will be better positioned for long-term success.

What SMEs Can Do:

• Implement diversity and inclusion policies.
• Enhance employee wellbeing through flexible work arrangements and mental health support.
• Engage in community-driven CSR initiatives.

5. Embedding ESG in Business Strategy

A major takeaway from the report is the need for systemic ESG integration. It’s no longer enough for ESG to be a side initiative—companies that embed sustainability into their core business strategy will have a competitive edge.

What SMEs Can Do:

• Develop a clear ESG roadmap with measurable targets.
• Align ESG efforts with EU sustainability regulations and frameworks.
• Communicate ESG progress transparently to stakeholders.

How SMEs Stand to Gain

By adopting ESG principles, Maltese SMEs can:

• Increase market competitiveness by aligning with EU sustainability requirements.
• Reduce costs through energy efficiency and waste reduction.
• Enhance brand reputation by demonstrating commitment to social responsibility.
• Attract and retain talent by fostering a purpose-driven workplace.
• Gain easier access to funding through green finance opportunities.

Help Us Understand the Needs of SMEs

To ensure that ESG support for SMEs is effective, we are conducting a survey to assess the current level of ESG awareness and implementation in Malta. The survey will also identify the types of support SMEs need to navigate the sustainability transition.

Click here to take the survey

Your insights will help shape targeted ESG resources, training, and policy recommendations that benefit Maltese SMEs.

Conclusion

The Strategic Foresight Report reinforces the urgency for businesses to integrate sustainability into their operations. ESG is not just a regulatory requirement—it’s a strategic advantage that can drive long-term growth and resilience. By taking proactive steps now, Maltese SMEs can thrive in the evolving economic landscape.

For more insights on how your business can benefit from ESG, contact us at . Let’s work together to build a more sustainable and prosperous future.