^{_INTRODUCTION}
PEOPLE & THE PLANET

Few in this industry would dispute that sustainability is the topic of our times, permeating policies, strategies and conversations across the business travel industry, but it runs deeper than just the environment.

Uppermost in people’s minds is likely the concept of environmental sustainability, but sustainability in the context of ESG – environmental, social and corporate governance – is as much about people as it is about the planet.

There is new EU legislation coming, the Corporate Sustainability Reporting Directive, that will prove a watershed moment and expose companies’ carbon emissions and intensity: “Just one number allows for instant benchmarking of carbon emissions so it will be hard to hide,” says a commentator in this issue.

But as a travel manager points out in this report, the United Nation’s 17 Sustainable Development Goals, established in 2015, are far more wide-ranging than environmental responsibilities alone. They are a universal call to action to ‘end poverty, protect the planet and ensure that by 2030 all people enjoy peace and prosperity’. They include issues around health and wellbeing, education, gender equality, clean energy, responsible consumption and production, justice, and reducing inequalities.

For most companies – corporates and suppliers alike – this means acting in an environmentally responsible way, paying close attention to diversity, equity and inclusion (DEI), and ensuring your supply chain is taking similar action.

However, among several recent surveys on attitudes to sustainable travel, one revealed an apparent disconnect with corporate sustainability goals and the intent of business travellers themselves.

According to a study of more than 1,000 business travellers and 250 employers conducted by Emburse, while 71 per cent of companies reported having formal sustainability policies in place, only one in six employees cited sustainability as their key priority when making travel plans. Nevertheless, that didn’t stop more than two-thirds of the business travellers surveyed saying their employer should do more to enable sustainable travel.

Meanwhile, research published earlier this year by GBTA and Uber for Business found that 45 per cent of travel managers believe their company is not meaningfully trying to reduce the emissions generated by business travel.

In addition, 25 per cent of travel managers surveyed said they have a 'good' understanding of their travel programme's carbon footprint while 39 per cent have 'some' insight, but more than a third (36 per cent) said they do not track emissions from employees' business travel activity.

Interestingly, while six in ten (62 per cent) business travellers believe their company is committed to reaching their sustainability targets, one in five (21 per cent) perceive their company's efforts as 'greenwashing' or for PR purposes.

Even on the corporate side, some industry commentators believe that among all the talk of sustainability, tangible action is not so abundant. As Spotnana’s VP of partnerships Johnny Thorsen recently pointed out, the company offered its customers a new policy rule allowing them to define a maximum amount of carbon emissions per flown passenger kilometre. But eight months since its introduction, not a single customer has activated it.

Such functionality and the application of such emissions thresholds will sound relatively advanced for many corporates, but companies – especially larger organisations – will suffer if they take their responsibilities lightly. Investors and customers will shun them and talent will depart. A recent survey by KPMG found that more than half of M&A specialists (53 per cent) have cancelled deals due to ESG due diligence findings.

Thankfully, there are plenty of good examples of influential companies making progress and inspiring their peers. Elsewhere in this report we look at how Salesforce tied part of executives’ financial remuneration to achieving certain emissions reduction goals, how EY built and implemented its own Sustainable Travel Approval Tool, and how Siemens is reducing the impact of its accommodation programme.

Encouragingly, in a Business Travel Show Europe survey of more than 400 buyers, only 6 per cent of respondents said they had no sustainable travel policies in place. And nearly a quarter said they are able to provide travellers with information on their carbon footprint, and 19 per cent said they set periodical carbon budgets.

Technology will be a key instrument in all sustainable travel strategies but can still be found wanting. According to the Institute of Travel Management, high on buyers’ wishlists for booking tools is clear carbon emissions information at the point of sale and the ability to see air and rail compared in a user-friendly way. Some booking tools are currently better at doing so than others. But their variance is such that buyers also have concerns about the provision and accuracy of data, pointing to different emissions figures returned for the exact same flight in different booking tools.

Although there is much talk of the carbon footprint being as or more important than the cost of a flight, few – if any – corporates have progressed from ‘lowest logical fare on the day’ to ‘least polluting flight on the day’.

There is work to be done around DEI too. As one travel manager told BTN Europe: “We have a DEI programme but it can still feel a bit like a box-ticking exercise at times. In terms of measuring and understanding the focus, I don’t think it’s quite there yet.” The same cannot be said for the company’s environmental programme, they add. “When it comes to sustainability, there is much more focus because we all have targets we’re working towards. Sustainability is a lot more advanced among buyers – but sustainability is about people too.”

Yvette Bryant, senior vice president of diversity and inclusion at BCD Travel agrees. “Sustainability had a head start. We only started our focus on DEI with rigour and discipline in 2020, like a lot of companies. Sustainability’s head start did cause a little confusion about how it all came together, but I’m pleased to say that today we’re in a much better place and both are top priorities.”

Bryant says the company made an intentional decision that when it talks about sustainability “it’s not just about being green”. She explains: “It’s not just about carbon or climate action. It’s about our customers and what they need, the partners we’re working with, it’s about our company and our actions, and it’s about our people. When we talk about sustainability it’s about the entire ecosystem and how we remain a sustainable organisation.”

As you’ll see elsewhere in the report, more than half of buyers (53 per cent) say their travel programme has been built with special consideration for racial minorities, while 49 per cent have done so for female travellers, 47 per cent have made special provisions for people with accessibility requirements, 46 per cent have done so for LGBTQ+ travellers, and 40 per cent have taken action for neurodiverse travellers.

Bryant says questions around DEI in RFPs that the TMC receives have changed from generic ‘what are you doing about DEI?’ questions to more specific queries about how the TMC can help the corporate embed DEI in its programme. “Are they making the decision to go with BCD because we have a DEI programme? Probably not, but if we don’t have it, some customers who are looking for like-minded partners... it would be a big miss for them.”

Hotel operators, meanwhile, report mixed interest in DEI. “There is a significantly stronger interest and focus on sustainability from corporate clients but, as yet, while there is general interest in our published commitments, there is no real focus on DEI coming through RFPs or corporate client discussions,” says Sophie Hulgard, chief sales officer at the Accor hotel group.

Nevertheless, among its ESG goals, says Hulgard, is “to be a social elevator, providing and giving opportunities to people regardless of their background and making sure that they can grow within the company and their communities.”

She adds: “Diversity is part of our culture and we strive to cultivate a forward-thinking and multicultural workplace where innovation can flourish and teams and guests feel welcome.”

Hilton reports an uptick in ESG-related RFP questions, including DEI and accessibility. “We’ve seen an increased focus on sustainability and DEI from our global corporate accounts – something which we expect to continue seeing,” says Tanya Clifford, vice president, Hilton Worldwide sales EMEA.

“DEI has certainly become more prominent in customer RFPs. For example, questions focused on the number of women on the board and information about team member diversity and supplier diversity are now more prominent.”

Clifford continues: “We know that for our clients, working with suppliers who can help them reach their own ESG targets is really important, and this information will often play a significant role in their decision-making. This is not just about targets – it is about being able to showcase a science-based approach with tangible examples of how we’re working to drive real change.

“But more than that, it is about the mindset of the company. Our clients want to work with suppliers who truly believe in the importance of environmental and social responsibility – whether that’s reducing energy consumption, cutting waste or providing equal opportunities for all. Bringing this to life is absolutely critical.”

Should suppliers expect to lose business if they are not able to provide comprehensive proof of their sustainability and DEI initiatives? “If it [that information] is not a ‘must’ today then it will be very soon,” says Hulgard. “Hotels without a clear green or target-based sustainability programme won’t be considered as suppliers by corporate clients. We understand this need and the importance of reporting and sharing data and we fully support our clients in this.”