Navigating the Sustainability Journey: The Impact of Mandatory Reporting on Travel & Tourism

The climate crisis is urgent. Around the world, natural disasters are becoming more extreme and species are being wiped out. In response, governments and financial institutions are making changes to the way companies disclose information about their sustainability practices. Tourism is no exception, and in the coming years travel providers will face a growing number of environmental laws and regulations. Voluntary frameworks have established a foundation for the industry to build upon and move beyond, as regulatory bodies are shifting to mandatory data collection and disclosure.

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Many of these efforts are a step in the right direction. But Travel & Tourism companies face a distinct challenge: because our sector is defined by its ability to work across borders, companies typically operate under many local and national jurisdictions at once. They have broad supply chains that might include dozens of small operators, and the sector has faced a consistent lack of guidance about the variations between different laws and reporting requirements. This can make compliance tricky. To help, this report analyses the three major sustainability disclosure frameworks that have emerged:

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• Europe’s Corporate Social Responsibility Directive (CSRD);
• The International Financial Reporting Standards (IFRS), affecting jurisdictions including Australia, Brazil, Canada, Hong Kong, Nigeria, Singapore, and the UK;
• And the Securities and Exchange Commission (SEC) Climate-Related Disclosures in the US.

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For those unsure where to begin, this report also features a Sustainability Readiness Roadmap. It includes a diagnostic tool to help companies to assess which sustainability framework(s) apply to them, as well as their sustainability maturity level.

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Change is never simple. Some companies are more prepared than others. Many have limited resources – particularly smaller businesses – while leaders may be hesitant or unsure how to navigate complex legislation.

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But change also brings opportunity. Travellers, particularly the younger generation, want greener products and services. Employees want to work for companies they believe in. Investors are eager for transparency, and sustainability is increasingly part of the criteria for choosing businesses to affiliate with. Those who take the lead will outperform in the long run. And we hope that, by using this methodology, WTTC Members will be able to better understand how and when they need to prepare and become part of a sector that is a model for others.