Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Environmental Friendliness

Environmental Achievements

• The Group strives to ensure that environmental friendliness is given priority in the course of construction, marketing and operations of the various phases of the Manoel Island and Fort Tigne project.

Social Achievements

• The Group has also provided premises to non-profit organisations and other third parties to carry out activities and events which benefit philanthropic causes.

Governance Achievements

• The Board has carried out a review of the Company's compliance with the Code of Principles of Good Corporate Governance.

Climate Goals & Targets

Environmental Challenges

• MIDI Group has registered a loss after tax of €2.5 million during the financial year under review compared to a profit of €9.9 million registered during the previous financial year.
• Contrary to the previous financial year, the Company had very few apartments which it could deliver to the respective owners.
• Revenues from sales of property amounted to €5.6 million (2015: €38.8 million).

Mitigation Strategies

• The launch of the remaining 02 apartments will be staggered over 2017 and 2018.
• Finishing works in the 02 block is now well underway and it is expected that works will be completed during the first half of 2018.
• Hence, profits from sale of 02 apartments are expected to be registered, in line with international accounting standards, in the Company's financial results for the year ending 31 December 2018, during which year the deeds of sale will be published.
• The Group has been reviewing its financing arrangements to ensure that it is in a position to meet its operational and cash flow commitments throughout the twelve-month period subsequent to 31 December 2016.
• MIDI had engaged PwC Global Strategy& as end-to-end international strategy consultant for the Manoel Island project.
• The Company engaged Foster + Partners, a world renowned architectural firm, to draw up a conceptual masterplan for this project.
• The Company's latest announcement "MDI93" confirmed the appointment of Jefferies International Limited as financial adviser for the purposes of identifying and selecting a suitable partner to financially support the development of Manoel Island.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Financial Reporting Standards (IFRSs) as adopted by the EU

Third-party Assurance: PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• The Group strives to ensure that environmental friendliness is given priority in the course of construction, marketing and operations of the various phases of the Manoel Island and Tigné Point project.
• MIDI entered into a guardianship agreement with the Manoel Island Foundation to ensure adherence to commitments regarding the Manoel Island Public Park, the Foreshore, the Swimming Zones, the use of Fort Manoel and maximum building heights.

Social Achievements

• The Group has provided premises to non-profit organisations and other third parties to carry out activities and events which benefit philanthropic causes.

Governance Achievements

• The Company is adhering to the Code of Principles of Good Corporate Governance.
• The Board has carried out a review of the Company’s compliance with the Code during the period under review.

Climate Goals & Targets

Environmental Challenges

• Securing Planning Authority approval for the revised Manoel Island Masterplan.
• Appeal lodged by NGO Flimkien għal Ambjent Aħjar against the approved Manoel Island Masterplan.

Mitigation Strategies

• Updating of the Manoel Island Masterplan to meet market aspirations, community concerns, and public accessibility.
• Guardianship agreement with the Manoel Island Foundation to ensure commitment adherence.

Supply Chain Management

Responsible Procurement

• Competitive bidding for contracts for goods and services.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Heritage Preservation
• Sustainable Development

Environmental Achievements

• Deployment of green and eco-friendly strategies aimed at creating a sustainable environment.
• More than €20 million invested in the restoration of Fort Manoel and Fort Tigné.
• Embellishment programme of the Manoel Island foreshore.
• Marine clean-up in the Manoel Island Yacht Marina, collecting 9,200 kgs of material.

Social Achievements

• Support for Gzira United Football Club and refurbishment of a playground in Sliema.
• Support for the internal restoration works of the Gzira parish church.
• Offering premises free of charge to non-profit organisations.
• Ongoing sponsorship to Zibel, an NGO focusing on environmental clean-ups.

Governance Achievements

• Compliance with the Code of Principles of Good Corporate Governance (with some exceptions noted in the report).
• Establishment of Board Committees (Audit Committee, Supervisory Board, Remuneration and Nomination Committee, Project Management Advisory Committee).

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting tenants and requiring concessions.
• Archaeological findings on Manoel Island leading to a reduction in development volumes.
• Appeals against planning permits.
• Geopolitical tensions resulting in price hikes of building materials.

Mitigation Strategies

• Provisions in the Deed of Emphyteusis to mitigate the impact of archaeological findings.
• Securing new banking facilities to finance operational expenditure and development.
• Exploring a joint venture for the development of Manoel Island.
• Cautious approach and no dividend payment in 2022.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Code of Principles of Good Corporate Governance

Third-party Assurance: PricewaterhouseCoopers

Environmental Metrics

ESG Focus Areas

• Sustainability
• Heritage Preservation
• Community Engagement

Environmental Achievements

• Seamless integration of heritage aspects of Tigné Point into contemporary and sustainable development.
• Ongoing restoration works at Fort Manoel, Fort Tigné and other historical sites at Manoel Island and Tigné Point, with over €20 million invested to date.
• Use of Seabin at Manoel Island Yacht Marina to collect floating plastics and debris.

Social Achievements

• Refurbishment of the George Bonello Du Puis gardens playground at Qui-Si-Sana in collaboration with the Sliema Local Council.
• Providing premises free of charge to non-profit organizations.
• Supporting the Għaqda Mużikali Mount Carmel Gżira during their annual feast.
• Sponsorship of ibel, an NGO focusing on environmental clean-ups, including berthing costs for two boats and services for a Seabin.
• Sponsorship agreement with the Marsamxett Valletta Regatta Club.

Governance Achievements

• Amalgamation and merger of Solutions & Infrastructure Services Limited into MIDI P.L.C.
• Regular Board and Committee meetings with detailed minutes.
• Board performance evaluation conducted annually.
• Clear policies and procedures for managing risks and internal control.

Climate Goals & Targets

Environmental Challenges

• Cyclical nature of the property development business, resulting in limited apartment inventory for delivery in 2023.
• Discovery of archaeological remains on Manoel Island, necessitating a revision of the masterplan and reduction of development volumes.
• Delays and obstacles posed by third-party appeals and legal challenges related to the Manoel Island project.
• Deferral of the full development application for Manoel Island due to the need for a Heritage Impact Assessment.

Mitigation Strategies

• Discussions with the Government of Malta regarding remedies available in the Deed of Emphyteusis to mitigate the impact of archaeological finds and delays.
• Ongoing negotiations with AC Enterprises Limited to establish a joint venture for the Manoel Island development.
• Addressing the challenges through open communication, community engagement, and a commitment to quality and sustainability.
• Confident that the proposed development will not compromise the heritage status of Valletta.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRSs as adopted by the EU

Third-party Assurance: PricewaterhouseCoopers