The rise of ESG and its influence on sustainable tourism

This year has an interesting calendar of events. Such events include meetings, workshops, symposiums, and conferences about ESG.

What exactly is ESG? Since the early 2000’ s the number of governments and businesses introducing environmental, social and governance ( ESG) frameworks and principles has grown and have significantly evolved in recent years.

Responsible investing is widely understood as the integration of environmental, social and governance ( ESG) factors into investment processes and decision- making across many sectors.

These among others might include how organisations respond to climate change, how efficient they are with water usage, how effective their health and safety policies are, how well they manage their supply chains, how they treat their employees and whether they have a corporate culture that is not only transparent but fosters innovation, the list goes on.

One may ask that what are the implications of ESG specifically for the tourism industry? It has become apparent that ESG is a heated topic in the tourism industry, with several emerging trends becoming evident on a global scale.

ESG and sustainability are becoming key metrics for ranking tourist destinations. In this way, “Travel and Tourism Sustainability” has come to determine the attractiveness of tourism destinations.

Emerging themes and trends for ESG in tourism in the case of Botswana are important for striving towards the country at large to understand the direction in which sustainable tourism is levitating towards in the developing world, there are three factors.

Firstly, environmental trends, there is growing consumer awareness when it comes to assessing the environmental impact of travel. As a result, companies in the tourism industry are aligning with this shift. For example, transport corporations face increasing demand for sustainable and alternative fuels to reduce their carbon footprint in the natural environment.

Secondly, social trends include new tourist destinations focusing on investments in local communities through supply- chain localisation – for example the promotion of local food production and educational programmes that empower specific regions in rural areas. A renewed focus on social responsibility, gender, diversity, community, geopolitical matters, human rights and equal pay is continuing to grow.

Lastly, governance trends, the industry is witnessing overall improvements in sustainability reporting and transparency, in a bid to improve their governance. Moving forward, it is safe to say that ESG is here to stay. Key players in the global tourism sector have already embarked on the journey to adjust strategy, business and operating models accordingly.

In the case of Botswana, growing consumer awareness surrounding the impact of travel on nature and communities has the potential to influence travellers’ decision- making when deciding how, where and when to travel in the country.

In this way there is an urgent need for businesses and government to be aware of the opportunities ESG policies could offer with the aim to eventually cater towards shifting consumer demands and helping to ensure long term success of the industry.

It is a collective effort that will need multiple stakeholders to sit and have multiple discussions to assist towards accelerating market transformation for the better future. A perfect way to kick start the year.

olivia. nthoi@gmail.com