As with all businesses, Travel & Tourism companies are increasingly affected by environmental and social issues that can influence global demand and industry-wide profitability; 

Publicly reporting on issues relating to sustainability, corporate responsibility, or environmental, social and governance (ESG) is a method by which companies demonstrate a commitment to transparency, and management approaches to proactively address externalities are articulated and advanced.

The World Travel & Tourism Council (WTTC) has been making the case for the economic and employment contribution of Travel & Tourism to economies of the world for 25 years and our efforts have worked to raise the status of our sector and benchmark its contribution against others.

ESG reporting carries this assessment further so that Travel & Tourism can be appropriately evaluated as a sector in terms of its contributions both to the economy and its impacts on environmental and social issues.

As the sector continues to grow rapidly, recent forecasts suggest by 4% per year over the next decade, and with 1.8 billion international visitor arrivals expected by 2030, we need to ensure that this growth is sustainable and inclusive. ESG reporting is an important tool in monitoring and communicating how we achieve this. 

The benefits of viewing ESG reporting as a strategic initiative are numerous. A fundamental concept of ESG reporting reflects the triple bottom line accounting framework. Many topics and indicators covered within ESG relate to economic impacts.

As such, ESG reporting has also increased disclosure regarding the economic impacts of Travel & Tourism. Particularly, it creates the environment in which a company can demonstrate it is proactively addressing its impacts, that it cares that these issues are important to its major stakeholder groups, and that it has strong management and governance systems in place to act on issues. 

At the request of our Members, WTTC has produced a report outlining the key issues for ESG reporting in Travel & Tourism and prepared guidance for companies wishing to engage in ESG reporting activities.

The full report on ESG reporting for Travel & Tourism can be accessed at www.wttc.org. This synthesis report provides a summary. It is intended to outline the core background, trends, facts and issues of ESG reporting in Travel & Tourism but in a much shorter form.

Inevitably, discussion has been compressed and details have been omitted. Readers wishing to engage more deeply with the subject are therefore encouraged to read the full report.