· 6 min read
Sustainability has firmly established itself in the mainstream, but are travel and tourism leaders equipped to handle its complexities? As firms brace for the stringent requirements of the EU’s Corporate Sustainability Reporting Directive and European lawmakers gear up for the next round of talks on the EU’s Green Claims Directive, a shifting regulatory environment is redefining corporate responsibility. At the same time, it exposes the shortcomings of current systems, tools and technologies used for measuring ESG data.
In this context, business leaders in the hospitality and travel industries must focus on three pivotal trends shaping sustainability’s future.
#1. The emergence of tools to tackle the Scope 3 challenge
At present, there is widespread misunderstanding around ‘Scope 3’. Many business leaders mistakenly assume the term encompasses all ESG data across their value chains when it pertains specifically to greenhouse gas emissions. This confusion only heightens anxiety and concerns around the mounting environmental legislation forcing them to confront Scope 3 emissions—particularly as accurately measuring and managing them proves challenging. Supply chains and customer interactions are inherently complex and intricate in a globalized economy.
Because of these concerns, too many companies are postponing action. Despite the surge in net-zero commitments, only 37% include Scope 3 emissions. This major decarbonization credibility gap must be addressed, as more than 70% of a company’s emissions usually fall into this category.
All travel and hospitality leaders must recognize that there is only one global standard for measuring and managing emissions: The Greenhouse Gas Protocol. It provides a general business framework and some industry-specific ones, though none yet for hospitality and tourism. Similarly, only one credible standard exists for emission reduction targets: approval from the Science-Based Targets Initiative, ensuring alignment with the Paris Agreement’s goal of limiting global warming to 1.5° C.
The intricacies of Scope 3 emissions for hotel brands
Despite clear standards and targets, quantifying Scope 3 emissions remains a complicated data collection and analysis exercise.
For a hotel operator, this begins with identifying and measuring all emissions arising from upstream activities in its value chain--covering everything from raw material sourcing to the production and distribution of equipment, furniture, fittings, vehicles, toiletries and consumables, as well as employee commuting and leased assets. These must be combined with emissions from downstream activities, such as customers’ use of products and services and disposal or end-of-life processing of items like furniture and fittings. All data must be verified by third parties, with a consistent base year chosen for tracking and comparing emissions over time.
Against the backdrop of this complexity, businesses have struggled due to their limited technological capabilities for gathering and analyzing data. Fortunately, the market is responding with the emergence of new comprehensive digital solutions--such as the platform we have developed at BeCause, which is tailored specifically for the hospitality, tourism and travel sectors. It enables companies to measure and manage Scope 3 emissions through tools and methodologies that simplify collection and reporting processes and power the immediate data exchange between stakeholders, including regulatory and certification bodies.
#2. The changing role of corporate sustainability
Another emerging trend is the phasing out of the corporate sustainability manager role—particularly in the travel and hospitality sectors, where profit margins are already tight. As businesses adopt the sustainability agenda, the requisite reallocation of resources will likely lead to companies no longer depending on a single individual to consolidate sustainability datasets from different departments of the business.
Instead, sustainability will be integrated across functions—such as operations, marketing, communications, and HR—and become a shared responsibility rather than one person's expertise. Of course, there will be scenarios where projects, like carbon accounting, are so sustainability-specific that hiring a specialist is justified. However, this will be the exception rather than the norm.
While experts in their fields, departmental staff will need expertise in sustainability reporting to understand, communicate and manage relevant data effectively. The demand for more efficient and cost-effective ways to share information will increase as this occurs. To empower teams to focus on their core responsibilities, they must be able to rapidly input and analyze sustainability data. Companies should, therefore, acknowledge the urgency of change and provide the necessary expertise and technologies to embed these practices across departments. In a changing world, it’s a critical step towards future-proofing organizations.
#. 3 Increasing scrutiny on sustainability claims
Green claims are facing growing scrutiny, and once-trusted certifications are now under fire for enabling greenwashing. Take B-Corps, for example; the ethical business certification has come under recent debate, with critics questioning its credibility due to its reliance on self-reported data to assess a company’s environmental and social impacts.
Responding to growing consumer awareness of deceptive claims and a rising tide of public skepticism, regulators are tightening the rules. The EU’s Green Claims Directive, now in its final phase of negotiations, will require businesses to substantiate their sustainability claims with verifiable data, aiming to curb greenwashing. Similarly, the US Federal Trade Commission is revising its Green Guides for environmental marketing claims, with new guidance forthcoming on acceptable terminology related to climate change, sustainability, carbon offsetting and product recyclability.
Meeting sustainability demands: A strategic advantage for travel and hospitality businesses
As certification standards are restructured to meet stricter requirements, companies that fail to ensure data integrity risk non-compliance and the loss of certifications, threatening their reputation and commercial standing. In this environment, businesses must rigorously manage their sustainability data, ensuring it is accurate, transparent and clearly communicated to all stakeholders. For the travel and hospitality sectors, BeCause can play a central role in helping companies achieve this, offering tools that safeguard the integrity of sustainability claims while ensuring compliance with emerging regulations and aligning with consumer expectations.
Change is already happening. Sustainability is no longer a future priority for the travel and hospitality industry; it’s a very present one. Although many business leaders remain unclear on addressing issues like Scope 3 emissions, the regulatory landscape demands action. And the path forward lies in well-structured data management.
As sustainability becomes embedded across departments, the key to meeting targets and regulatory obligations is harnessing advanced technology to collect and analyze data accurately, consistently, and efficiently.
While challenges remain, business leaders should view this as an opportunity. The market for eco-conscious and socially responsible travel is expanding rapidly, with 76% of travelers expressing a desire to travel more sustainably in the coming year.
By embracing sustainability, tourism companies will not only meet regulatory requirements but also position themselves for meaningful growth, distinct market differentiation and stronger customer loyalty. This approach offers a competitive edge while contributing to the protection of people and the planet—a true win-win for any business leader.
illuminem Voices is a democratic space presenting the thoughts and opinions of leading Sustainability & Energy writers, their opinions do not necessarily represent those of illuminem.
