Maldives Progresses on First Sustainability Reporting Framework for Private Sector

January 21, 2024

We saw a significant step towards enhancing sustainability practices within the Maldives' private sector, the United Nations Development Programme (UNDP) in the Maldives’ partnership with the Capital Market Development Authority (CMDA) to develop the nation's inaugural Environment, Social, Governance (ESG) reporting framework for investments.

The initiative, aligned with the Integrated National Financing Framework (INFF) and endorsed by the Maldivian Government under the leadership of the Ministry of Finance with UNDP support, aims to fortify the country's financial market sustainably, thereby contributing to the preservation of its diverse biodiversity.

UNDP and CMDA is spearheading the development of this pioneering ESG reporting framework, which will cater to both listed companies and foreign business operators in the Maldives. The framework's design involves thorough engagement with all stakeholders and adheres to prominent international sustainability standards, notably the UN Sustainable Development Goals (SDGs).

During the recent mission, validation sessions were conducted with the participation of UNDP and CMDA where the ESG framework was presented to an advisory board and key stakeholders from public and private entities. The objective was to ensure alignment with international sustainability standards and SDGs.

A validation workshop sourced with the support of PlusValue convened for listed companies further facilitated discussions on the forthcoming ESG reporting framework. Participants explored the opportunities and challenges associated with integrating ESG reporting into the institutional architecture of Maldives' private sector.

The validation process extended to engage relevant local stakeholders, including government and public entities, underscoring the inclusive approach adopted in crafting the framework.

As part of the mission, Professor Filippo Addarii and Dr. Marco from PlusValue conducted sessions on sustainable investment and ESG reporting at the Maldives Business School. They emphasized the global trend towards incorporating sustainability into financial portfolios and introduced the upcoming ESG Reporting Framework for Maldives.

The collaborative efforts between UNDP, CMDA and other stakeholders mark a significant milestone in advancing sustainability practices within the Maldives' private sector. With the development of this pioneering ESG reporting framework, the nation takes a proactive stance towards fostering responsible and sustainable business practices, thereby contributing to its long-term socio-economic development and environmental preservation goals.