Travel Companies To Boost ESG Investments With Technology

Amadeus's latest research reveals a notable surge in environmental and social sustainability initiatives across India's travel industry, with 58 percent of companies gearing up to increase ESG (Environmental, Social, Governance) investments in 2024, driven by technology adoption.

ESG decision-makers are actively pushing for expanded investments, widespread technology integration, and securing executive support to bolster these initiatives.

As travellers increasingly seek experiences aligned with their values, Amadeus conducted research among 80 senior sustainability decision-makers across seven travel industry segments in India to understand their ambitions, priorities, and challenges.

The study unveiled a positive outlook for the global travel industry, with 79 percent of ESG decision-makers confident about achieving the UNWTO-proposed goal of reaching net zero by 2050. Of this group, 43 percent believe this can be achieved without adjustments, while 36 percent acknowledge the need for urgent acceleration.

The key catalyst for progress lies in a proactive approach. A remarkable 92 percent of survey participants reported having a step-by-step strategy to achieve environmental sustainability objectives or plan to implement one in 2024. Additionally, 95 percent expressed current or future active involvement in social sustainability initiatives, extending beyond their organisational boundaries. Increased investment further substantiates this commitment, as 58 percent anticipate investing more in 2024 than the previous year.

Despite the optimism, the study identified barriers hindering the realisation of environmental, social, and governance initiatives. For environmental commitments, 41 percent highlighted cost as the primary barrier, followed by C-suite buy-in (40 percent) and a lack of technology and knowledge (26 percent).

In the realm of social initiatives, the most significant barriers include a lack of knowledge (35 percent), C-suite buy-in (34 percent), and a shortage of technology (30 percent). For governance initiatives, participants pointed to a lack of knowledge (40 percent), complex legal obligations (31 percent), and insufficient guidance from industry bodies (29 percent).

Crucially, the study underscores the pivotal role of technology in achieving industry ambitions. A resounding 91 percent of respondents emphasised the importance of technology in realising environmental sustainability objectives, with 89 percent expressing the same sentiment for social objectives.

Noteworthy technology solutions include those capable of removing CO2 from the atmosphere, highlighted by 34 percent of respondents as having the highest potential to accelerate environmental sustainability. Additionally, 31 percent identified access to data for true personalisation across all travel stages, while 30 percent  emphasised the significance of advanced search capabilities to understand the environmental impact of travel choices.

Jackson Pek, SVP and Group General Counsel at Amadeus, commented, "As the travel industry continues to navigate the complexity of delivering on ESG targets, I'm encouraged by the optimism and commitments being put in place—from investments to strategic planning to technological solutions.

At Amadeus, we're working to embed ESG at the core of our business, supporting travel players to become more efficient and enabling travellers to make more informed choices. Together, we can make travel more sustainable."

Mani Ganeshan, SVP, Travel Distribution Engineering, and Centre Head, Amadeus Labs India, added, "We are pleased to see the growing emphasis on ESG investments within the Indian travel industry.

Surveys like these are crucial benchmarks for assessing our industry's progress and identifying areas for improvement. At Amadeus, we look forward to continuing to support our customers and partners across the region on their ESG journeys, fostering sustainability through innovation and collaboration."