Investors considering investment in the Maldives should abide by Environmental, Social, and Governance (ESG) standards
Maldives Introduces Sustainability Reporting Framework for Tourism Industry
The Maldives Government, in collaboration with the United Nations Development Programme (UNDP) and Italian advisory company PlusValue, has launched a groundbreaking initiative to establish a Sustainability Reporting Framework for the country's tourism industry. This move aims to protect the fragile territory of the Maldives from development associated with its most important economic activity, tourism, while fostering greener, more sustainable growth.
The Maldives' Sustainability Reporting Framework project is focused on enhancing the transparency and accountability of private sector investments by encouraging standardized sustainability and climate-related reporting. This framework will align private investments with the country's climate transition goals and sustainable tourism development by providing clear guidelines for reporting on climate finance and environmental impacts.
The Climate Change Department of the Maldives Ministry of Tourism and Environment has conducted training on a Framework for Reporting Climate Finance for Non-State Actors, part of the Capacity Strengthening for Improved Transparency of Climate Change Mitigation and Adaptation Actions in the Maldives (CBIT Maldives) project. This initiative builds capacity among private entities and non-state actors to report climate finance flows and sustainability impacts effectively, facilitating better tracking of how private investments contribute to climate adaptation and mitigation.
The initiative is designed to make companies in the Maldives adopt Environmental, Social, and Governance (ESG) practices in their reporting procedures. The sustainability reporting framework will integrate ESG practices into the reporting procedures of companies listed in the Maldives. This integration will ensure that investments are directed toward activities that support climate resilience, low-carbon transition, and environmentally sustainable economic growth.
The Maldives Government recognises the importance of sustainable development in the context of its tourism industry. International investors are obliged to adhere to these sustainability parameters when investing in the Maldives' tourism industry. The institutional process launched to define sustainability parameters is anchored to the Sustainable Development Goals of the United Nations.
PlusValue, an Italian company with offices in London and Milan, plays a role in promoting ecological, digital, and social transition as a basis for creating new markets, business models, and investment for a smart, prosperous, and sustainable future in the Maldives. The Maldives Financial Markets Development Authority is also involved in the project.
By establishing such a reporting framework, the Maldives encourages private sector stakeholders in the tourism and other climate-sensitive sectors to integrate sustainability considerations into their investment decisions, thereby supporting the nation's overall climate goals and sustainable tourism development. This alignment ensures that investments are directed toward activities that support climate resilience, low-carbon transition, and environmentally sustainable economic growth.
The Maldives Government has approved the Maldives Integrated National Finance Framework (INFF), which includes this initiative. The Maldives' Sustainability Reporting Framework project is part of a broader strategy to foster greener, more sustainable growth in one of the world's most climate-vulnerable nations. The protocol is the outcome of over a year of work, involving the definition of sustainability parameters anchored to the Sustainable Development Goals of the United Nations. The policy tool in the Maldives is designed to align private investments with climate transition and sustainable tourism development. The protocol aims to create new markets, business models, and investment opportunities that are smart, prosperous, and sustainable in the Maldives.
- The Maldives' Sustainability Reporting Framework, a collaboration with the UNDP and PlusValue, aims to encourage standardized sustainability and climate-related reporting among private sector investments in the tourism industry, aligning them with the country's climate transition goals and sustainable tourism development.
- The Climate Change Department of the Maldives is conducting training on a Framework for Reporting Climate Finance for Non-State Actors to build capacity among private entities and non-state actors to report climate finance flows and sustainability impacts effectively.
- The Maldives Government, in its Maldives Integrated National Finance Framework (INFF), has approved the Sustainability Reporting Framework project, which is part of a broader strategy to foster greener, more sustainable growth in the nation and create new markets, business models, and investment opportunities that are smart, prosperous, and sustainable.
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