We are living in an era where environmental, social and governance (ESG) factors are increasingly gaining attention. In response, businesses are reevaluating their practices to align with sustainable initiatives. One pivotal area being reassessed is corporate travel, an area traditionally associated with excessive carbon emissions.
Forward-thinking organisations are revolutionising the way they approach business travel through the integration of ESG principles into their travel policies. There is a growing relationship between ESG and corporate travel and how businesses can integrate these policies into their own procedures in ways that are both sustainable and manageable.
Understanding ESG in Corporate Travel
Travel is a fundamental aspect of business, but it has now reached an important crossroads in meeting with ESG. In the business travel context, ESG applies to how investors and stakeholders assess a company’s sustainability and ethical impact in reference to its travel expenses, choices and outputs.
Environmental considerations may include carbon emissions, waste management, and of course, resource consumption. On the social front, it also relates to how a business considers its impact on communities, employees, and human rights, such as those outlined by the Modern Slavery Act. From a governance perspective, a company’s leadership and management, including aspects of transparency and accountability, are of particular importance.
Integrating ESG into Your Corporate Travel
When it comes to corporate travel, ESG factors can be integrated into existing travel policies in numerous ways. For example, businesses can:
While companies are under enhanced scrutiny to improve their practices around travel, it doesn’t mean that corporate travel is off the table. But it does mean that businesses have to reassess their travel programs and find new ways to make them viable long-term.
Similarly, the benefits of integrating ESG practices into your travel program are not simple to quantify. There are added benefits to implementing ESG practices into your corporate travel that go beyond the bottom line.
Benefits of ESG-focused Corporate Travel
Incorporating ESG principles into your business travel can lead to a wide array of benefits, including:
Implementing ESG-focused Corporate Travel Policies
There is no easy way to integrate ESG practices into your corporate travel program. However, there are a few steps companies can follow to make ESG aspirations a reality. These include:
Conducting a thorough audit of existing travel programs, including spend, suppliers and travel-related carbon emissions.
Setting measurable goals and targets for ESG-focused travel policies. These goals should be communicated throughout every area of the business, from employees to stakeholders.
Training and support to employees around sustainable travel practices and how to integrate them into every layer of the organisation’s practices.
Prioritising ESG criteria into your business’ corporate travel policies is a given for you to remain competitive while contributing to a more sustainable world. But it can be time-consuming and costly to integrate these changes on your own.
Procurement Australia has travel experts standing by to help you to make the necessary changes without the hassle of researching or negotiating the best deal.
Get in contact with us today to discuss our travel solutions and how they can help you to reach your ESG goals.
Source: Procurement Australia Travel Team
Talk to Procurement Australia about anything related to travel.