When it comes to social impact and corporate social responsibility (CSR), leading by example matters.

If travel management companies want the industry to be more responsible and accountable they have to energise customers, suppliers and people to engage more, whether that’s by helping local communities, reducing carbon emissions or through responsible procurement.

There are many worthy projects that organisations can now tap into. Some TMCs have in-house charities or volunteer programmes for staff and clients. Others support community projects locally and overseas, as well as opting for more responsible supply chains. Then there are projects focused on diversity and inclusion. It’s an area that has moved way beyond being just a tick-box exercise.     

In recent years, ESG, environmental, social and governance, as well as CSR frameworks, have been embedded into countless contracts. “There’s now a clear shift towards integrating sustainability and social value into core travel programmes rather than treating them as separate initiatives,” explains Sam Whittle, Chief Commercial Officer at DGI.

Through this process TMCs have been developing the data, metrics and tools to deliver genuine results, and this is also allowing organisations to take a more structured approach.

“What’s changed is that good intentions are no longer enough. Companies need evidence. Clients are also looking for true validation,” explains Pippa Strasser-Ganderton, Director at ATPI Halo.

“TMCs can increasingly act as the bridge between travel data, CSR strategies and real-world impact. This enables travel managers to bring credible, reportable initiatives back into their organisations.”

Some businesses are looking to their TMC for guidance on how they can make a difference, but it’s a mixed landscape.

“Everyone is interested, yet levels range from contractual mandates, to ‘how can we do something great together?’. There is also a growing difference between the public and private sector,” says Kirsty Given, Director of Corporate Responsibility and Sustainability at Clarity Business Travel.

Public sector organisations increasingly look for deliverables, and are engaging third-party experts to validate the social value created. “For the private sector it is less prescriptive and more open to collaboration on how value is generated and calibrated,” states Given.

Eye on the prize

Going forward, social impact will matter more. CSR reporting is becoming mandatory in some sectors – not just on Scope 3 emissions, but other metrics, such as the National TOMs and the EU’s Corporate Sustainability Reporting Directive (CSRD). Regulatory pressure is ramping up, along with a drive towards more ethical procurement standards.

Competition in RFPs and tenders increasingly hinge on demonstrating performance in this area. This is being driven by a shift in expectations from all stakeholders, be they investors, shareholders, C-suite executives, employees or customers.

“TMCs that cannot demonstrate measurable social impact are losing competitive advantage. They can no longer treat this as optional,” points out Anna Snoep, Director of Operations and ESG at Inntel. Organisations are also demanding more information about ESG factors and expecting TMCs to deliver.

“Success for us is measured not just by participation, but by impact hours volunteered, funds raised, waste reduced and, importantly, the engagement levels and feedback from both employees and community partners,” explains Adam Hall, ESG Director at Access Bookings. “Metrics include employee satisfaction scores, retention rates and client feedback on CSR initiatives.

“Covid had a significant impact, and while the environmental side of CSR has been prominent for several years, the pandemic and the ‘Be Kind’ movement that followed shifted focus towards people and community.”

“TMCs that cannot demonstrate measurable social impact are losing competitive advantage. It is no longer optional”

Some TMCs are seeing the dial shift with their clients, whether it’s increasing spend with more diverse and community-based suppliers or booking more sustainable and socially-minded meetings. However, there are challenges.

“There can sometimes be a disconnect between different business departments and the day-to-day booking of travel,” states Ceri Edwards, CSR Lead at Midas Travel Management.

A step up for TMCs

TMCs are stepping up, as they try to become consultants and partners in this arena. They’re increasingly not just booking providers, but trusted advisors in this space – a crucial element of this is evidenced behaviour change.

“Clients want dashboards, benchmarks and insights, not just raw numbers. This requires a different kind of relationship. It’s more consultative, more data-driven and focused on long-term outcomes rather than just on individual transactions,” says Edwards at Midas.

TMCs are past masters at keeping travellers within policy, through nudge tactics. The same techniques can be used to make responsible choices easier and motivate people to do more.

“Businesses success is no longer solely measured on its bottom line. Social impact is a key measure. It is also giving businesses a competitive advantage when it comes to attracting clients and employees,” notes Nick Bettles, CEO for Europe, Talma Travel Solutions.

So what does the future hold? Many organisations are still approaching social impact as a company-wide focus rather than something fully embedded within their travel programme. Certainly, industry-wide benchmarking and inspiring case studies are needed.

“In one recent example, we partnered with a global client to develop destination specific city guides designed to embed social impact into everyday travel decisions,” says Yanell Guillen, Senior Marketing Consultant, Engage at Advito.

“Businesses success is no longer solely measured on its bottom line. Social impact is a key measure”

Expect social impact to become more ingrained into managed travel going forwards, where it’s included in planning and booking, through to reporting and review. Impact will also be more measurable, with greater transparency and visibility within travel programmes.

“We’re already seeing growing demand for end-to-end solutions that combine emissions measurement, reduction and community impact,” observes Strasser-Ganderton from ATPI Halo.

“There’s a growing recognition that environmental and social impact are interconnected. Organisations are moving beyond carbon-only thinking and recognising that supporting communities, particularly in regions they operate in, is part of a credible strategy,” she adds.

“The biggest opportunities will lie in linking travel spend to community outcomes, particularly through high-integrity carbon and social projects.”

Such change will need consistency, awareness and more TMC best practice. There will also be a realisation that money spent on travel can provide a tangible social good if spent wisely.

“It’s because business travel is shifting to ‘people-first’ programmes. It’s the future,” says Andy Sison, Commercial Insight & ESG Manager, The Good Travel Collective, parent of Good Business Travel, which sets an example by every year donating 10% of profits to its own charitable foundation.

Case study: The social impact of human trafficking

The business travel industry, due to its global reach and frequent interactions with travellers, plays a critical role in the fight against human trafficking. It’s why BCD participated in the TUI Palma Marathon to support A21, a global nonprofit dedicated to end modern slavery. Nearly 100 people from the travel management firm took part in October last year, raising funds with the help of friends, family and corporate sponsors. 

The TMC raised over £112,000 to support A21 and help end human trafficking. “Clients then asked us to give presentations about human trafficking awareness, one of which resulted in a training project for a global client reaching more than 450 employees,” says Olivia Ruggles-Brise, Vice President for Sustainability at BCD.