Redefining Corporate Travel and Hospitality Through Sustainability

As companies face increasing pressure to report their GHG emissions, the role of business travel, mainly flights, is coming under great pressure. Business travel contributes significantly to a company's carbon footprint. In my opinion, hotels will be less affected than airlines, but they will need to relearn to focus more on short—and medium-distance travellers. Business travel will likely decline as companies prioritize more sustainable alternatives and many organizations are incorporating stricter travel policies and incentivizing low-carbon alternatives such as rail travel for shorter distances.

Virtual meetings and remote collaboration technologies offer practical solutions that minimize environmental impact while maintaining productivity. These changes align with environmental goals, such as the EU Green Deal, and reduce costs, creating a dual benefit for businesses striving to meet sustainability targets without compromising efficiency.

Although, sometimes you need to be present personally to make those meaningful connections. 

The growing interest in sustainability and events is shifting competitiveness in a new direction. For those hotels and events venues that have been leading the way for decades by implementing sustainable management practices and measuring the carbon footprint of operations their hard work is paying off. Sustainability leaders, like Kempinski Hotels, are taking their commitment to sustainable action further by offering a dedicated responsible events approach. Through EarthCheck their responsible events venues bear the VenueCheck seal, having undergone rigorous assessments for energy, water and waste efficiency. They also offer clients a full event calculator to analyze emissions based on the scale, scope and duration of the event. By taking action to reduce impacts, planners are able to understand the impact and work towards crafting events that have greater positive impact and reduced negative impacts. Hopefully for those that are not yet taking a measured approach to sustainable action, the events sector acts as a catalyst to drive the action that we have been talking about for decades. For those that lack rigorous environmental and social polices and that refuse to make changes, it is likely that market forces will take hold in due course.

The role of sustainability information in business travel is increasingly critical, particularly for hotel groups like Radisson Hotel Group, as corporate clients prioritize sustainability in their procurement processes. A growing requirement for sustainability data in corporate RFPs significantly impacts the competitiveness of hotels. Without rigorous sustainability information, hotels risk losing business from clients who now demand verified and transparent sustainability commitments. 

Hotels must align with globally recognized sustainability verification and certifications, such as Hotel Sustainability Basics verification by WTTC, eco-labels certifications, including those which are eligible for GSTC-Recognized Standards and required accreditation, ideally with regular onsite audits and with a clear focus on improving sustainability performance of a hotel property. With the recent formation of the Tourism Sustainability Certifications Alliance (TSCA), there is a growing emphasis on aligning and improving sustainability performance while distinguishing between eco-labels for hotel operations and building certifications.

While some clients develop proprietary criteria, many now adopt GBTA RFP sustainability standards. Some corporate clients also developed a scoring system that allows them to align their sustainability priorities with standardized RFP sections.

Technology plays a key role in streamlining this process. Technological advancements help ensure that sustainability data remains accurate, reliable, and easily accessible.

Despite concern in many areas of society, it is clear that market forces are the most effective levers of change in sustainability. Business travel management companies and MICE-related businesses, driven by corporate customers committed to ESG-related goals, particularly carbon and GHG reporting, are catalysts for lodging (and other travel businesses, too) for sustainability-related action and reporting.

I think it is worthwhile taking issue with the question posed in this forum. What impact does the growing requirement for sustainability data … While the premise may be true at this moment, it is worthwhile to consider some of the changes that have taken place with the new administration in the United States. It isn't a great leap to say that it is unlikely that there will be growing requirements (at least from a regulatory perspective) for sustainability data in the US. Indeed, even companies committed to sustainability face strong headwinds due to these changes, and hospitality businesses must navigate this new landscape. Whether these companies continue to demand the same level of sustainability-related data is yet to be determined. We can only hope that the market demand for sustainability overcomes the new hurdles we are facing. 

What I am finding is that Prince Harry's Sustainable Travel Philanthropy, Travalyst, is quickly becoming a leading and essential tool for global business travel. They have already achieved great success in empowering travelers at the critical point of making a flight booking decision in providing carbon footprint data and choices front and center to use while making that decision. As they continue to address other sectors, now focused on accomodations, that will further enable the business traveler valuable insight to the most sustainable hotels and resorts, again presenting relavent sustainability data present at the point of making a purchase.

During the Global Business Travel Association (GBTA) Sustainability Summit in Copenhagen, discussions with corporate leaders poonted to the significance of metrics like carbon emissions and energy consumption but also emphasised the importance of certifications during the RFP process. The specific certification were not discussed, however under Question B1 (on 'industry certifications, verifications, and labels specific to environmental protection and sustainability') in the GBTA"s Sustainable Procurement Standards for Hotels (access: https://gbtafoundation.org/sustainable-procurement-standards-for-accommodations/) examples of certifications are provided.

To effectively secure MICE contracts and other corporate travel engagements, hotels need to demonstrate their commitment to sustainability and I would argue that this impacts hotels in two significant ways:

• Hotel staff are increasingly required to navigate a complex array of RFPs, each demanding different levels of detailed information pertaining to sustainability. The GBTA's Sustainable Procurement Standards aim to standardize this process.
• Without robust environmental and social policies, hotels inevitably face a competitive disadvantage, with a mix of business opportunities loss, alongside brand reputation damage.

Independent of the current geopolitics, it is clear that 'risk comes from not knowing what you're doing.' (Warren Buffet). This quote resonates particularly within sustainability strategies, where understanding, assessing and managing risks are increasingly crucial to successful operation.

The growing requirement for sustainability data in corporate RFPs is not just about compliance—it is increasingly tied to long-term business competitiveness across industries, including hospitality. A closer look at climate mitigation and decarbonization in hotel operations reveals that the Glasgow Declaration on Climate Action in Tourism is fundamentally linked to cost efficiency, climate financing opportunities, product and service innovation, and brand positioning—all of which are essential for maintaining a competitive edge.

Managing carbon emissions in hotel operations goes beyond meeting global climate pledges. It is about strategically reducing costs, increasing operational resilience, and unlocking access to climate mitigation finance. Hotels that integrate climate-smart business practices are better positioned to secure preferential financial terms, lower interest rates, and investment opportunities to scale their operations.

A strong example is SENAC Restaurants Chain in Brazil, which, through its Carbon Neutral Certification, has redesigned its food sourcing policy to prioritize local suppliers, cutting transportation costs, improving menu sustainability, and enhancing its brand value. Similarly, hotels that implement structured climate mitigation strategies can align with financial institutions’ climate finance frameworks, securing better financing conditions for expansion and modernization.

Another notable case is Inkaterra, a global leader in ecotourism, whose Climate Certification provided a deep understanding of the positive environmental balance of its operations—largely driven by the sustainable management of its 15,000 hectares of forest. The recognition and data derived from this certification have been instrumental in strengthening Inkaterra’s international reputation as a climate action leader in hospitality. Moreover, this verified sustainability performance has been a key factor in securing climate finance for improving operational efficiency, in collaboration with institutions such as the Inter-American Development Bank (IDB).

The perception that climate action is losing momentum, particularly amid shifts in the U.S. climate agenda, is misleading. Rather than disappearing, the focus is evolving toward a business-driven approach where sustainability is an economic necessity. Rising costs of food, energy, and waste management make climate-positive efficiencies crucial for profitability. Hotels that adapt will thrive, while those that delay will face higher costs, limited financing options, and shrinking market appeal. The future of hospitality is clear—sustainability is no longer optional; it is a fundamental driver of long-term business success.

To further understand how to integrate climate action into the hotel business model and enhance competitiveness, I recommend exploring Green Initiative’s Climate Certificates for Tourism, Hospitality, and Destinations.

Additionally, the Climate Action Guide, available for download at: [https://greeninitiative.eco/building-tourism-back-better/#download], provides valuable insights on strategic approaches to climate mitigation.

Sales and marketing teams need the right support, tools, and sustainability enhancements to remain competitive in today’s market. Without them, they are at a significant disadvantage—losing corporate RFPs and MICE contracts to properties that can confidently showcase their sustainability efforts. Meeting planners and attendees are increasingly bypassing host hotels in favor of venues that align with client sustainability mandates and the growing demand for purpose-driven events.

Hotels that lack verified sustainability certifications or fail to demonstrate measurable impact are missing a major revenue opportunity. Beyond compliance, properties that do not integrate unique, locally driven sustainability initiatives—such as partnerships with conservation groups and nonprofits—overlook key differentiators that enhance guest engagement, foster brand loyalty, and drive profitability.

Moreover, the industry must move beyond surface-level sustainability efforts and align with global frameworks like Task Force on Climate-related Financial Disclosures (TCFD) and Science-Based Targets Initiative (SBTi). Corporate clients are increasingly scrutinizing climate risk disclosures and net-zero commitments, meaning hotels that fail to track and report their climate impact will be left behind. Destinations and hotels that proactively collaborate to offer measurable, purpose-driven experiences will not only secure more business but also future-proof their operations in an evolving regulatory and market landscape.