There is “massive tension” between sustainability and profitability in travel and tourism, which makes demonstrating the business case for action alongside developing sustainability indicators essential.
That is according to Christopher Imbsen, World Travel & Tourism Council (WTTC) vice-president for research & sustainability and a contributor to a report published this week on social sustainability, labour and human rights in travel entitled ‘Why the S in ESG Matters’.
The report, based on research by Dr Anke Winchenbach of the University of Surrey, concludes poor labour conditions are impeding sustainability efforts in the industry, damaging recruitment and heightening risks for businesses.
Speaking at the launch of the report, Imbsen highlighted “a massive tension between sustainability and profitability”, saying: “The market rewards short term gains over long term sustainability.
“As long as it does, there is an enormous onus on us to incentivise and to demonstrate how these [sustainability] indicators are competitive issues and that they support returns.”
Rochelle Turner, Intrepid Travel global B Corp impact manager and also a contributor to a report, agreed on the business case for action. But she suggested business leaders should consider: “At a very basic level, what kind of business do you want to be? What kind of people do you want to employ and what kind of legacy do you want to leave?
“That doesn’t require industry specific guidance. That just requires people to be paid properly and looked after, and anyone can do that.”
Lead author of the report Dr Winchenbach said: “The key is to say this is not an afterthought. The S in ESG does make business sense, but it’s also the right thing to do.
“I’ve been working as a researcher on decent work for almost a decade now, and I come from the industry myself. It’s sad that we keep talking about the same things after all these years.”
She said those behind the report are now working on what toolkits and training “might be developed to support organisations, maybe in different parts of the world”, noting: “There is lots more work to be done in terms of research, working with industry and practical implementation.”
The report was commissioned by the International Transport Workers’ Federation (ITF) and the IUF union representing food, agriculture, hotel, restaurant, catering and allied workers internationally.
ITF assistant general secretary Rob Johnston said: “I’ve worked with a lot of multinational corporations in manufacturing, tourism and transportation and it’s not very often I find in the boardroom a real desire to break human rights or workers’ rights.
“In many of the corporations I’ve dealt with, you find they have the right policies, they have the right frameworks. What they don’t necessarily have is the implementation or monitoring to deliver on the ground.
“The trade union movement can give those local partners to ensure implementation, education and ongoing monitoring is there.”
Johnston said: “We’re extending an open invitation to all interested parties – industry, governments, stakeholders – to work with us to shape what the social part of ESG looks like, and to make sure when we talk about sustainability in the industry, we consider workers’ rights and human rights.”
The report, ‘Why the S in ESG Matters’, can be downloaded here