ESG reporting a major gap for TMCs

While ESG and CO₂ reporting is gradually improving, it remains complex and inconsistent across the industry, with corporates often relying on TMCs for guidance to simplify data and better understand and reduce travel-related emissions.

A recent Travel News poll found that nearly 85% of respondents did not provide corporate clients with ESG reporting. 

Meanwhile, the Travel Management Blueprint by Wings Global Travel, which surveyed 30 South African firms, found that 60% of survey respondents were already incorporating CO₂ reporting into sustainability strategies but 93% expected TMC guidance on sustainable initiatives.

Although CO₂ reporting is improving, it remains complex and inconsistent. According to the report, even firms that include emissions reporting face grey areas around methodology, supplier data quality and comparability across routes and regions. 

“We are only really talking about the environmental element of ESG. TMCs should provide reporting at two levels. Firstly, at the time of booking they should be showing the carbon emissions for each quote. This can help companies make decisions based on their CO₂ budgets and financial budgets. Secondly, TMCs should provide reporting based on the CO₂ emissions from air, car and hotel, as savings made in one leg of the trip could be wasted elsewhere,” said Kevin Lomax, Managing Director/Senior Vice President of Wings Global Travel, South Africa.

Barriers

According to Lomax, the main barriers TMCs face in adopting CO₂ reporting include the availability of data and the ability to package it alongside all other data elements. TMCs also need to focus on what is important for their customers.

However, TMCs are dependent on data from their suppliers for accurate reporting. “I don’t believe TMCs are falling behind, but their reporting is only as good as the information at their disposal. They are dependent on airlines and other suppliers for reliable and timely data,” said Lomax.

He said it was important for TMCs to understand their clients. “For some organisations, Scope 3 emissions (where business travel is reported) can often be the highest CO₂ emissions line. These companies don’t produce products, resulting in other emissions, so business travel is material. Some companies may be required to report to their end-customer and need to show responsible decision making,” said Lomax.

Steps to take

To improve the clarity of CO₂ reporting and help cut emissions, the Wings blueprint outlined a set of sustainability strategies TMCs can use to support their clients. 

1. Make CO₂ visible at point of booking: TMCs should provide emissions visibility early on by integrating CO₂ into quotes, booking tool displays, traveller options and approval flows.
2. Choose direct flights where possible: Identify lower-emission routes by comparing aircraft type, routing, fuel burn, layovers, and airline efficiency, and recommend the best options.
3. Use preferred hotels with strong sustainability credentials: Partner with hotels on sustainability performance by validating sustainability certifications and prioritise partners aligned with ESG criteria.
4. Incorporate emissions into approval workflows: Standardise reporting across multiple suppliers by consolidating data into consistent ESG dashboards and feeding CO₂ data into approval steps.
5. Educate travellers to drive behaviour change: Help travellers understand their impact by providing training sessions, carbon literacy tips, booking guidance and CO₂ interpretation to make informed choices.

“Our role is to provide emissions visibility as early as possible, such as when we quote, and share carbon emissions so people can compare flights and routes. We’re also engaging hotels to ensure they share this information because it’s becoming more and more important,” said Lomax.