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Accor, Comcast, and Expedia Group Among Leading Companies Focusing on ESG in Travel and Tourism Industry | GlobalData Plc

GlobalData UK Ltd
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GlobalData UK Ltd
GlobalData UK Ltd

The pandemic has acted as a catalyst for increased action on ESG issues

LONDON, July 21, 2022 (GLOBE NEWSWIRE) -- The “ESG (Environmental, Social, and Governance) in Travel and Tourism – Thematic Research” report offered by GlobalData Plc provides an overview of ESG in travel and tourism. The report also includes outlines of how the need for high levels of ESG performance from stakeholders is met by companies. Moreover, it contains highlights of travel and tourism companies that are leading in this theme.

According to the thematic intelligence report published by GlobalData, 56% of global respondents stated they ‘somewhat’ or ‘completely’ agree that they are more loyal to brands that support green and environmental matters, and 54% echo this sentiment for brands that are loyal to human and social rights matters. These strong percentages suggest that companies with transparent ESG strategies, which can demonstrate positive work to address environmental and social issues, could win the loyalty of travelers that may be undecided on which company to use for a specific aspect of their trip. Transparency on ESG matters will not only appease consumers, but it is also a requirement for several other stakeholders and potential future ones.

Key Trends Impacting the ESG Theme in the Travel and Tourism Industry

Technology Trend: Most aircraft are currently powered by fossil jet fuels, which harm the environment. Sustainable aviation fuels (SAF) are seen as a sustainable alternative that could significantly improve the environmental performance of airlines. These fuels are produced from waste oils of biological origin, agricultural residues, or non-fossil CO2, and have a drastically reduced environmental impact. While government funding for SAF will be vital in promoting SAF’s future affordability, some airlines are taking proactive steps to adopt SAF and gain a competitive advantage over their competitors.

Macroeconomic Trend: The pandemic created sudden changes in traveler preferences and behaviors. For example, many travelers across the globe swapped trips to busy metropolitan destinations for open rural areas that are less populated. Due to this change, there is more interest in holidays that focus on spending time in the outdoors and visiting destinations that are off the beaten path. Visiting more rural areas generally makes sustainable practices easier and reduces the re-emerging threat of over tourism.

Regulatory Trend: Several companies involved in the supply of global tourism signed the Glasgow Declaration on Climate Action in Tourism during COP26 2021. Seen as the perfect time to ‘reset’ due to the downtime caused by the pandemic, major companies stated their intentions to halve their emissions by 2030 and reach net zero by 2050. Within a year of signing, all companies must provide a detailed climate action plan that describes their plans for hitting those lofty targets. There is also a requirement for signatories to collaborate and share best practices to optimize the impact of this agreement.

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