TBM Staff - Mumbai ESG (Environmental, Social, and Governance) decision-makers call for increased investment, more widespread technology adoption, and C-suite buy-in.
Travelers are increasingly demanding that travel experiences align with their values and expectations when it comes to sustainability. Against this backdrop, Amadeus commissioned research among 80 senior sustainability decision-makers across India and seven segments of the travel industry to gain insight on ESG ambitions, priorities, and challenges.
The study revealed optimism for the global travel industry about hitting the UNWTO-proposed goal to reach net zero by 2050. 79% of ESG decision-makers believe the industry can reach its target. Of that 79%, 43% believe it is possible to reach without any adjustments, while 36% believe it is possible, but progress needs to be accelerated urgently.
Key to this is a focus on action. 92% of those surveyed have a step-by-step strategy in place to help them achieve environmental sustainability objectives or are planning to implement one in 2024.
95% of respondents are either currently active or plan to be actively involved in social sustainability initiatives that impact beyond their organization. This commitment was matched by increased investment, with 58% of respondents anticipating investing more in 2024 than last year.
Despite the optimism, the study identified barriers to delivering on environment, social and governance initiatives:
• 41% cited cost as the biggest barrier for environmental commitments, followed by C-suite buy-in (40%), and then lack of technology and knowledge (26%).
• For social initiatives, the biggest barriers include lack of knowledge (35%) and C-suite buy-in (34%), and lack of technology (30%).
• For governance initiatives, the barriers highlighted include lack of knowledge (40%), complex legal obligations (31%), and not enough guidance from industry bodies (29%).
Notably, the study highlighted a clear and recognised role for technology to help the industry reach its ambitions. 91% of respondents indicated technology is important to help organisations achieve environmental sustainability objectives, with 89% saying the same for social objectives.
• 34% of respondents highlighted technology solutions that help remove CO2 from the atmosphere as the technology with the highest potential to accelerate environmental sustainability.
• 31% said access to data to allow for true personalisation across all stages of the travel process, from inspiration, on-trip, destination and post-trip would be important.
• 30% said more advanced search capabilities allowing travellers to understand the different environmental impact of available travel choices had the most potential.
“As the travel industry continues to navigate the complexity of delivering on ESG targets, I’m encouraged by the optimism and the commitments being put in place – from investments to strategic planning to technological solutions. At Amadeus, we’re working to embed ESG at the core of our business, supporting travel players on their journey to becoming more efficient and enabling travelers to make more informed choices. Together, we can make travel more sustainable,” says Jackson Pek, SVP and Group General Counsel, Amadeus.
“We are pleased to see the growing emphasis on ESG investments within the Indian travel industry. Surveys like these are crucial benchmarks for assessing our industry’s progress and identifying areas for improvement. At Amadeus, we look forward to continue supporting our customers and partners across the region on their ESG journeys, fostering sustainability through innovation and collaboration,” says Mani Ganeshan, SVP – Travel Distribution Engineering and Center Head – Amadeus Labs India.
