Creating a non-financial reporting framework for companies in Malta

Abstract

Purpose: Some EU and non- EU countries have implemented mandatory and/or voluntary requirements on sustainability reporting. However, in Malta most of the current non-financial reporting carried out by companies is sporadic. One of the main reasons for this is because there is no sustainability reporting framework for companies in Malta to adhere to either on a voluntary or mandatory basis. Therefore, this study proposes a set of content elements drawn from internationally recognised sustainability reporting frameworks and other ancillary matters that could shape the development of the local framework. Design: As in Malta there is no non-financial reporting framework for companies to follow, the nature of this study is exploratory. Therefore, a qualitative approach was seen as being more appropriate. The research tool took the form of semi- structured interviews. Findings: The larger majority agreed that the content elements of the proposed local framework are all relevant and important to be disclosed by companies. Most interviewees agreed that when reporting sustainability information rather than adopting a mandatory or voluntary approach, a hybrid of both methods mainly in the form of a report or explain policy is the most effective. Moreover, most companies prefer non-financial information to be presented in a separate report. Interviewees expressed contrasting opinions in debating whether third party assurance is to be provided to non-financial reporting. Conclusion: Reporting serves as a powerful way to manage, monitor and change. The guidelines are not about adding more information but about reporting issues that matter and that are important to the company. Value: By laying the foundations for the proposed local non-financial reporting framework, the work is not yet done. The opportunity lies in what we do with them. This requires a degree of courage, conviction and commitment.