Sustainability Reporting Framework for investments in Maldives (2024)

October 15, 2023: Supported by the United Nations Development Programme (UNDP) in the Maldives, and the Maldives’ Capital Market Development Authority (CMDA), a project has been initiated to introduce the first sustainability reporting framework in the Maldives for the private sector. This framework will integrate ESG (Environmental, Social, Governance) practices into the reporting practices of listed companies in the country. The project is a practical execution of recommendations as outlined in theMaldives Integrated National Financing Framework (INFF), recently endorsed by the Government of Maldives, led by the Ministry of Finance with the support of UNDP. This strategic initiative is expected to provide a common language for capital and financial markets of Maldives to align its investment and business practices with international best practices for sustainable finance and scale-up private capital for accelerating the achievement of the Sustainable Development Goals (SDGs).

“We congratulate PlusValue for being appointed as consultants for the Maldives Sustainability Reporting Framework development project. We had a very productive initial meeting between CMDA, UNDP and PlusValue where important aspects of the project were discussed. As the next steps, we have formed an advisory committee with representation from all the stakeholders to work with the consultancy firm. The meetings of the advisory committee and the stakeholder discussion meetings will commence soon. We deeply appreciate the significant role UNDP is playing in support of this project. We believe that this framework will bring impactful positive reforms to the Maldivian corporate sector. Through this framework, we can promote and pave way for the local businesses to implement responsible and sustainable business practices and stride towards achieving national and international level competitiveness for the Maldives, achieve greater investor trust and confidence and unlock better access to finance opportunities. CMDA is committed to provide its maximum effort to make this project a success with the support of all the stakeholders”, said Mohamed Hussain Maniku, the Chief Executive Officer of CMDA.

The rich biodiversity of the Republic of the Maldives, an Indian Ocean archipelago comprising over 1,200 small islands forming natural atolls, has long been a magnet for significant foreign investments. This lure is particularly evident in the tourism sector, which has experienced a robust resurgence following the pandemic and is steadily growing. Tourist arrivals surged from nearly 1.3 million in 2021 to 1.7 million in 2022. With 1.1 million arrivals recorded between January and July 2023, the Maldives is widely expected to reach the 2 million mark by the end of the year.

However, environmental shifts and resource depletion pose challenges to the stability of the Maldivian ecosystem, impacting the country's economic growth and the well-being of its residents. To address this, CMDA with the support of UNDP, has envisaged the creation of a sustainability framework to regulate sustainability reporting practices adopted by the country's companies and foreign investors.

The work to establish standards for a sustainability framework will receive strategic support from the UK-based consultancy firm PlusValue, known for its expertise in sustainability, international approach, and extensive network. The framework will be a robust, comprehensive, and contextually relevant model for sustainability reporting. It will provide a structured template, serving as a systematic guide for businesses to report their ESG activities in a consistent, reliable, and transparent manner. It will be developed in close consultation with pertinent local stakeholders, including both public and private entities. Importantly, it will align with prominent international sustainability standards, initially focusing on the SDGs, to ensure its effectiveness and to facilitate widespread adoption by market players. It is estimated that the project will be ready for launch by early 2024 with an ensuing training cycle for key stakeholder categories.

"Being awarded this project is a significant achievement for us, the result of years of commitment to promoting sustainability as a key driver of value creation for market players. It is a pleasure to work with the Capital Market Development Authority in the Maldives and the UNDP, two institutions that align with ongoing global discourse around the potential of capital market to drive the climate transition and sustainable development. We believe that the impact of the project can contribute meaningfully and stand as an example influencing both major investors in the country and the many island nations that look to the Maldives as a model for growth. This is a necessary model where SDGs meet ESGs," said Filippo Addarii, Managing Partner at PlusValue.

“This framework is not an endpoint, but a bold beginning—a wider movement towards responsible, ethical, and sustainable business operations in this breathtaking chain of islands. By embarking on this journey, we are targeting the safeguarding of Maldives' natural assets while nurturing an economic ecosystem that thrives on principles of environmental stewardship and social responsibility,” said UNDP Resident Representative in the Maldives, Enrico Gaveglia.

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ABOUT United Nations for Development Programme (UNDP):

UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and planet. UNDP has been in the Maldives for 45 years. We work on climate and disaster resilience, democratic governance, and to drive and sustain the kind of growth that improves the quality of life for everyone in the Maldives, with people and nature in balance. Aligning our work with national development priorities, we work with the government, civil society, private sector and development partners, to help the Maldives realise its long-term development aspirations.

Learn more at www.undp.org/maldives or follow @UNDPMaldives

ABOUT Capital Market Development Authority (CMDA):

CMDA (established under Law No: 2/2006 (Maldives Securities Act)) is the Authority on the Maldives Capital Market. Under the Securities Law, CMDA has powers to regulate securities issuers and intermediaries providing securities services including the stock exchange, the securities depository, dealers, and investment advisors. CMDA also has the mandate to supervise the Maldives Pension Administration Office (MPAO) in administration of the Maldives Retirement Pension Scheme (MRPS) under Law No: 8/2009 (Maldives Pension Act).

ABOUT PLUSVALUE:

Founded in 2015 with offices in London and Milan, PlusValue (PV) is an independent agency that promotes the green transition by creating new markets and business models for public and private investors. PV is a leader in sustainable urban regeneration and sustainable finance. Most successful was the conception and development from ground zero of MIND - Milan Innovation District, one of the largest urban development projects and, at the same time, innovation district in Europe: 1m sqm, 4.5bn euro value, 70K people brand new community.

https://plusvalue.cloud/

Media Contacts

PlusValueValeria Solianovaleria.soliano@plusvalue.org | 0039 3332214366

UNDPcomms@undp.org

CMDAYoosuf Naeem yoosuf.naeem@cmda.gov.mv | +9603336619