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Travel Companies To Boost ESG Investments With Technology

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

Amadeus’s recent research sheds light on a significant uptick in environmental and social sustainability initiatives within India’s travel industry. A notable 58 per cent of companies are gearing up to amplify their Environmental, Social, and Governance (ESG) investments in 2024, propelled by a focus on technology adoption. The research, encompassing insights from 80 senior sustainability decision-makers across seven segments of the travel industry in India, delves into their ambitions, priorities, and challenges.

The study unveils a positive outlook, with 79 per cent of ESG decision-makers expressing confidence in achieving the UNWTO-proposed goal of reaching net zero by 2050. Within this group, 43 per cent believe this can be achieved without adjustments, while 36 per cent acknowledge the need for urgent acceleration. Proactivity emerges as a key catalyst, with 92 per cent of survey participants reporting a step-by-step strategy to achieve environmental sustainability objectives or planning to implement one in 2024. Additionally, 95 per cent express current or future active involvement in social sustainability initiatives, surpassing organizational boundaries. Demonstrating commitment, 58 percent anticipate investing more in 2024 compared to the previous year.

Despite the optimistic outlook, the study identifies barriers hindering ESG initiatives, with 41 percent citing cost as the primary hurdle for environmental commitments, followed by C-suite buy-in (40 percent) and a lack of technology and knowledge (26 percent). For social initiatives, a lack of knowledge (35 percent), C-suite buy-in (34 percent), and a shortage of technology (30 percent) were identified as significant barriers. Governance initiatives face obstacles such as a lack of knowledge (40 percent), complex legal obligations (31 percent), and insufficient guidance from industry bodies (29 percent).

Highlighting the pivotal role of technology, 91 percent of respondents underscore its importance in realizing 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, identified by 34 percent of respondents, while 31 percent emphasize the significance of access to data for true personalization across all travel stages. Additionally, 30 percent emphasize advanced search capabilities to understand the environmental impact of travel choices.

Jackson Pek, SVP and Group General Counsel at Amadeus, commended the industry’s commitment and optimism, emphasizing Amadeus’s dedication to embedding ESG at the core of its business. Mani Ganeshan, SVP, Travel Distribution Engineering, and Centre Head, Amadeus Labs India, expressed pleasure in witnessing the growing emphasis on ESG investments in the Indian travel industry, emphasizing Amadeus’s ongoing support for customers and partners in their ESG journeys.

Travel Companies To Boost ESG Investments With Technology

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