What is COP29?
The Conference of the Parties (COP) is the world’s foremost platform for addressing climate change's urgent and complex challenges. Each year, it brings together governments, businesses, civil society, and international organizations to forge pathways toward a sustainable future. COP29, hosted in Baku, Azerbaijan, marks a milestone by elevating critical sectors to the forefront of the climate agenda.
Tourism Day at COP29
For the first time, tourism has been formally included in the COP agenda—a powerful recognition of its role in the global climate dialogue. November 20, 2024, marked a historic moment with the launch of the COP29 Declaration on Enhanced Climate Action in Tourism. This initiative sets the tourism sector on a transformative path, aligning it with global sustainability goals and showcasing its potential to drive meaningful climate action. Zurab Pololikashvili, Secretary-General of UN Tourism, captured the sector's potential, stating:
“By prioritizing innovation, decarbonization, and regeneration, we can make sure tourism plays a key role in global climate solutions. Beyond its role as an economic lifeline for communities, tourism is uniquely positioned to be a powerful catalyst for sustainable, climate-resilient development.”
This inclusion underscores the need for a data-driven approach to integrate sustainability into tourism policy and practices. The adoption of the UN Statistical Framework for Measuring the Sustainability of Tourism (MST) is a key step in this direction. By incorporating environmental data such as greenhouse gas emissions, energy consumption, and resource use into tourism metrics, the MST framework enables informed decision-making and measurable progress toward climate goals.
When I reflect on the importance of the Conference of Parties (COP), I’m reminded that it is not just a gathering, it’s a catalyst for global change. COP serves as the beating heart of international climate action, where governments, industries, and stakeholders convene to align on solutions to the world’s most pressing environmental challenges.
Digitalization in Climate Change
Recognizing the transformative power of technology, COP29 also introduced its inaugural Digitalization Day. This landmark event emphasized the role of digital tools in reducing emissions, strengthening climate resilience, and advancing sustainable development across all sectors. The COP29 Declaration on Green Digital Action, endorsed by over 90 governments and1,000 digital leaders, reflects a shared commitment to leveraging technology for climate solutions.
Mukhtar Babayev, COP29 President, highlighted this pivotal shift:
“The first-ever Digitalization Day at COP29 marks a new chapter in climate action, embedding digital technology as a transformative tool. From artificial intelligence in climate modelling to optimizing renewable energy systems, digital advancements are key to accelerating sustainable solutions on a global scale.”
This digital transformation is particularly vital for the tourism sector, where accurate and standardized data can guide impactful strategies.
Digitizing sustainability reporting
For us at BeCause, this sentiment isn’t just theoretical; it’s our daily mission. We work tirelessly to create a thriving data ecosystem where businesses and communities alike can access a single source of truth. By digitizing sustainability reporting, tourism stakeholders can make better-informed decisions, adopt climate-positive practices, and build resilient business models. Our SaaS platform is designed to ensure that sustainable choices flow seamlessly through tourism and beyond—for the planet, people, and profits to thrive.
This intersection of technology and sustainability has never been more urgent. Digital tools like AI and big data have the potential to optimize renewable energy systems, improve climate modeling, and make sustainability accessible to more people. Yet, as a tech community, we must remain accountable for the environmental footprint of our digital advancements.
Sustainable hospitality’s milestone: Universal sustainability KPIs
A major highlight of COP29 was the launch of the Universal Sustainability Key Performance Indicators (KPIs) by the World Sustainable Hospitality Alliance (WSHA). A proud partner of ours. During the first-ever joint session of Tourism Ministers and the COP Presidency, this initiative was hailed as a transformative step for the hospitality industry.
These KPIs provide standardized, verifiable metrics for assessing sustainability performance across the sector. The first wave focuses on Environmental KPIs, including:
- GHG emissions: Total CO2 emissions across Scopes 1, 2, and 3.
- Water consumption: Usage intensity per guest night or occupied room.
- Energy usage: Energy intensity and renewable energy share.
- Waste management: Percentage of waste diverted from landfills.
This framework, developed through collaborative efforts with industry leaders and global organizations, represents a commitment to measurable climate action. Future waves will introduce Social and Governance metrics, creating a comprehensive ESG performance system.
Glenn Mandziuk, CEO of WSHA, emphasized its importance:
“The launch of the Universal KPIs empowers our industry to take measurable actions against climate change while ensuring accountability to consumers who increasingly demand trust and transparency.”
From my perspective, this development couldn’t have come at a better time. The hospitality sector has immense potential to influence sustainable consumer choices. By adopting these KPIs, hotels not only improve operational efficiency but also build trust with eco-conscious travelers and corporate clients.
Methodology behind the Universal Sustainability KPIs
The methodology behind the Universal KPIs developed through benchmarking, stakeholder engagement, and validation reflects the importance of collaboration. This collective effort sets a precedent for other industries to establish their own standardization efforts for sustainability.
At BeCause, we celebrate this progress and stand ready to support the hospitality sector in implementing these frameworks. Our platform simplifies data collection, standardizes reporting, and ensures that information is verifiable and actionable. This transparency is essential for fostering trust among consumers, investors, and regulators.
WSHA’s commitment to enabling sustainable choices for tourism
The World Sustainable Hospitality Alliance (WSHA) is not only focused on launching Universal Sustainability KPIs but also on ensuring that the hospitality sector remains aligned with global climate goals. In partnership with UN Tourism and other key collaborators, the Alliance is updating the Hotel Carbon Measurement Tool to adhere to the GHG Protocol, expanding Scope 3 emissions tracking, and establishing robust data verification processes. This forward-looking approach paves the way for responsible tourism and reinforces the Alliance’s dedication as a signatory of the Glasgow Declaration and the COP29 Baku Declaration on Enhanced Climate Action in Tourism. As global leaders come together to tackle pressing climate issues, the Universal KPIs represent a proactive framework that supports climate action, drives economic value, and aligns with consumer expectations.
Supporting sustainability efforts in tourism
As a Chief Sustainability Officer, I see these developments as a powerful reminder of how standardization can drive meaningful change. When businesses are equipped with the right tools, they not only meet their sustainability goals but inspire others to follow suit. At BeCause, we recognize the vital role of digitization in achieving the goals set by COP29 and WSHA. As members of WSHA, we have already digitized critical supportive tools used in the hospitality industry, including the Hotel Carbon Measurement Initiative (HCMI) and the Hotel Water Measurement Initiative (HWMI), ensuring that these tools remain accessible and effective in driving sustainable change. We are following closely all new releases and developments to continue supporting the hospitality sector in its sustainability journey.
Our SaaS platform helps accelerate this transition by:
- Centralizing data: Offering a unified, trustworthy data ecosystem to enable accurate tracking and reporting.
- Enhancing transparency: Providing tools for standardized metrics that align with global ESG frameworks.
- Driving sustainability: Empowering businesses and consumers to make informed, sustainable choices.
The synergy between digital transformation and standardized sustainability metrics, as demonstrated by WSHA’s Universal KPIs, is at the heart of our mission: to help sustainable choices flow seamlessly through tourism and beyond ensuring the planet, people, and profits can thrive together.
Toward COP30 and beyond: Uniting tourism and technology for a sustainable future
A COP29 reflection
As global leaders gather at COP29 to address climate challenges, the inclusion of tourism and the advancements in digitalization mark a turning point for actionable progress. Initiatives like the UN Statistical Framework, Green Digital Action, and Universal Sustainability KPIs reflect a collective commitment to creating a sustainable, climate-resilient future. These efforts underscore the power of collaboration and innovation in driving meaningful climate action across sectors.
Following the discussions at COP29, I feel inspired and energized by the outcomes of this year’s conference. It has reinforced that no single sector or technology can address the climate crisis alone. Tourism, technology, and hospitality each play a vital role, but their true power lies in collaboration and collective action. By leveraging innovative tools and collaborative frameworks, we can empower industries, nations, and communities to meet the demands of today while safeguarding the needs of tomorrow.
At BeCause, we remain committed to playing our part in this transformative journey, enabling meaningful action through technology and data. We are proud to be part of this movement, working at the intersection of sustainability and technology to empower stakeholders with the tools they need to drive change. Whether through digitized reporting, standardized KPIs, strengthening climate resilience, or innovative climate solutions, our mission remains clear: to create a world where sustainability is not just an aspiration but a reality.
As we look ahead to COP30, I am filled with hope. The path is challenging, but with determination, innovation, and collaboration, we can —and will—achieve a more sustainable future.
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In recent years, sustainability reporting and the importance of non-financial data has become increasingly recognized as one of the key components of a company's overall performance. While traditional financial reporting has long been a critical component of assessing a company's value and potential for growth, non-financial data provide insight into a company's social and environmental impact, as well as its overall governance practices. This information can be used to help stakeholders, including investors, regulators, and customers, make informed decisions and assess a company's long-term viability. As such, the collection and reporting of non-financial data have become a vital aspect of corporate reporting, with many companies recognizing its importance and striving to improve their non-financial reporting practices. Read about the Evolution of Sustainability Reporting.
Why is Non-Financial Reporting Important?
Non-financial data or KPIs (Key Performance Indicators) are typically reported in a separate report from a company's financial statements. This separate report is often referred to as:
- A company’s sustainability report,
- An ESG report (Environmental, Social, and Governance), or
- A CSR report (Corporate Social Responsibility).
This report aims to provide stakeholders with a comprehensive overview of a company's non-financial performance in areas such as environmental impact, social responsibility, and corporate governance. By reporting non-financial KPIs in a separate report, companies can provide more in-depth information on these areas without cluttering their financial statements, allowing stakeholders to better understand a company's overall sustainability and long-term value.
Want to explore which framework can support your reporting efforts? See our framework feature. Or explore if the Global Reporting Initiative is for you.
10 Steps to Effective Sustainability Reporting for a Tourism Business
Benefits of Sustainability Reporting
- Enhanced brand value: Creating a separate sustainability report allows companies to showcase their sustainability efforts and achievements, boosting brand credibility.
- Improved stakeholder relationships: Transparency in reporting fosters trust among customers and investors.
- Regulatory compliance: Many governments require sustainability disclosures, helping companies meet legal obligations.
- Risk mitigation: By identifying potential risks related to sustainability, companies can develop strategies to address them.
- Driving innovation: Encouraging sustainable practices throughout the value chain leads to long-term benefits for both the company and society.
To explain further:
It is worth mentioning that by choosing to create a separate sustainability report from their financial report, companies gain an opportunity to boost their brand value from a marketing perspective. By creating a stand-alone sustainability report, companies can highlight their sustainability efforts and achievements, and communicate their social and environmental impact work to stakeholders in a more comprehensive and transparent manner. This can help build trust and credibility with customers and investors and differentiate the company from competitors. Moreover, sustainability reporting can also create positive publicity and enhance a company's reputation as a socially responsible organization. In today's highly competitive marketplace, demonstrating a commitment to sustainability can be a powerful tool for companies to strengthen their brand and achieve a competitive advantage.
The importance of sustainable reporting lies in its ability to provide stakeholders with a comprehensive view of a company's operations and its impact on the environment, society, and the economy. It enables investors, customers, employees, and other stakeholders to make informed decisions about their interactions with the company, based on its non-financial performance. Sustainable reporting also helps companies to identify areas where they can improve their non-financial performance and take action to address these issues.
Sustainable reporting is important for several reasons…
(1) It can help companies to mitigate risks and identify opportunities related to sustainability. By disclosing information on their environmental, social, and economic performance, companies can identify areas where they are exposed to risks such as climate change, natural resource depletion, resource scarcity, and social unrest. This information can then be used to develop alternative strategies to mitigate these risks and identify new business opportunities.
(2) Sustainable reporting can improve a company's reputation and strengthen its relationships with stakeholders. By disclosing information on its sustainability performance, a company can build trust and demonstrate its commitment to more than just increasing its annual profits. This can enhance its reputation and help to attract new and retain existing customers, investors, and employees who share its values.
(3) Sustainable reporting can help companies to comply with regulations and standards related to sustainability. Many governments and international organizations require companies to report on their sustainability performance, and these reports can help companies to demonstrate compliance with regulations and standards.
The role of the Corporate Sustainability Reporting Directive (CSRD)
Starting in 2025, companies operating in the EU with over 500 employees will need to comply with the new CSRD regulations, and begin reporting for 2024. This directive expands reporting requirements and disclosure requirements on a wider range of sustainability topics. Companies must stay informed about these changes to adapt their reporting practices effectively. See our CSRD page to stay up to date. Or read about the EU taxonomy to get a better understanding.
Sustainable reporting is important for several reasons…continued
(4) Sustainable reporting can help to drive innovation and promote sustainability throughout the value chain. By disclosing information on its sustainability performance, a company can encourage its suppliers, partners, and customers to adopt sustainable practices. This can help to create a more sustainable value chain, which can lead to long-term benefits for the company and society as a whole.
In conclusion, companies may choose to embark on non-financial reporting for various reasons, whether to demonstrate their commitment to sustainability, meet regulatory requirements, or boost their brand value. Whatever the reason, non-financial reporting is a complex and challenging journey that requires significant resources, expertise, and ongoing commitment. However, the potential benefits of non-financial reporting are numerous, including improved stakeholder engagement, better risk management, and enhanced long-term value. By measuring and reporting on non-financial KPIs, companies can gain a deeper understanding of their environmental and social impact, identify areas for improvement, and drive positive change in their organizations and communities. Ultimately, the decision to undertake non-financial reporting is a strategic one that requires careful consideration, but the rewards of doing so can be significant and well worth the effort.
Frequently Asked Questions (FAQs)
Q: What is sustainability reporting?
A: Sustainability reporting involves disclosing non-financial data related to a company's environmental impact, social responsibility, and governance practices.
Q: What is non-financial reporting?
A: Non-financial reporting involves disclosing a company's environmental, social, and governance (ESG) performance, providing stakeholders with insights beyond traditional financial metrics.
Q: Why is non-financial data important?
A: Non-financial data helps stakeholders make informed decisions about a company’s long-term viability.
Q: What are the key components of sustainability reports?
A: Key components include environmental impact assessments, social responsibility initiatives, and governance practices.
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It contains tips for assessing and overcoming your sustainability data management, reporting and certification challenges
The partnership offers destination management organisations unprecedented insights into the eco-certification levels of hotels, attractions, beaches, and restaurants through comprehensive, verifiable eco-certification data.
Copenhagen, 21 October 2024 – BeCause, the Danish start-up revolutionising how the global hospitality, travel, and tourism industries manage their sustainability data, is partnering with the Global Destination Sustainability – Movement (GDS-Movement) to help tourism and event organisations, including Convention and Visitor Bureaus (CVBs), Destination Management Organisations (DMOs) and National Tourism Organisations (NTOs), gain unprecedented insight into their region’s sustainable accommodations and offerings.
Members of GDS-Movement, an international change agency that acts to catalyse socio-economic and environmental transformation in regions and cities through tourism, can now access a specially designed data overview on the BeCause platform that shows them a real-time, comprehensive view of the sustainability status of their destination’s hospitality landscape. Specifically, they will be able to quickly see which hotels, restaurants, attractions, beaches and experiences have valid sustainability certifications, which will provide them with a trustworthy foundation for building a targeted sustainability strategy.
A Game-Changing Approach to Sustainability Data
Prior to BeCause, destinations could only obtain this information by manually matching each certification to the accommodations and hospitality services in their coverage zone – an error-prone, laborious process that kept DMOs and NTOs from promoting their full range of sustainable offerings.
As the only sustainability data management hub tailored for the visitor economy, BeCause works with over 70 eco-certification bodies and globally-recognised industry organisations including Green Key, Travalyst, Global Sustainable Tourism Council, Green Sign and EarthCheck. Its platform enables the seamless exchange of sustainability information between these organisations, hotels and other key stakeholders such as booking platforms, travel retailers and tourism organisations, significantly streamlining the data flow.
“One of the greatest challenges destinations face today is accessing accurate data about the sustainability practices of their supply chains,” said Guy Bigwood, CEO of GDS-Movement. “Our partnership with BeCause directly addresses this challenge, helping DMOs, CVBs, and NTOs create more regenerative, resilient destinations that benefit both visitors and residents,” says Guy Bigwood, CEO of GDS-Movement.
“By utilising the BeCause platform, destinations participating in the GDS-Index will be able to assess their environmental performance more efficiently, complete the index faster, and communicate their sustainability initiatives more effectively to stakeholders, including governments, clients, and visitors,” Bigwood added.
Meeting demand for sustainable travel
According to a 2024 Booking.com survey, 75% of global travellers say they want to travel more sustainably in the short term, while 89% of business travellers say they are taking extra steps to reduce the environmental impact of their travel. Access to sustainable travel options is also a key consideration for meetings and event planners, with 13% of those surveyed for the American Express 2024 Global Meetings and Events Forecast ranking sustainability as among the top two factors influencing where they choose to hold their events and 39% admitting that they struggle to identify sustainability certified suppliers.
“In today’s always on and information hungry world, VisitEngland recognises the need to ensure our destinations have access to data that is both trustworthy and accurate. VisitEngland is working with BeCause to ensure access to their platform can help England’s tourism industry meet the growing demands of visitors seeking environmentally responsible experiences, from which attraction to check out and which destination to discover to where best to stay to suit their needs,” says Andrew Stokes, Director of VisitEngland, the first destination to pilot the BeCause-powered data hub.
By having the data overview from BeCause, organisations like Visit England can zoom in on specific regions and get a thorough overview of offerings in real-time, as well as information on those certifications. This will enable NTOs and DMOs to gain unforeseen insights into the status and trends within their own destination, greatly empowering their strategic work with sustainability and building a data-led decision setup. Furthermore, it will enable them to address greenwashing claims head-on backed up by validated data and enhance their credibility as trusted sources for sustainability information on the destinations.
Building Trust Through Data
“Trust is the foundation of sustainability,” said Frederik Steensgaard, CEO of BeCause. “By automating the verification of sustainability claims with direct communication from certification bodies, we ensure that trust is prioritized across the entire value chain - from consumers to tourism organisations.”
For more information about BeCause and its partnership with GDS-Movement or to speak with CEO Frederik Steensgaard, please get in touch with Vanessa Horwell at vhorwell@thinkinkpr.com.
About BeCause
BeCause is an enterprise software company that streamlines the flow of sustainability data and creates synergies between different stakeholders in the travel, tourism, and hospitality industries, empowering them to make decisions that result in positive, responsible change for people, the planet, and their profits. BeCause works with over 25,000 hotels, including brands like Radisson, certification entities like GreenKey, industry partners like the Global Sustainable Tourism Council and the WSHA, and marketplaces like Booking.com. For more information, visit because.eco.
About Global Destination Sustainability Movement
The GDS-Movement is a pioneering, data-driven international change agency that acts to catalyse socio-economic and environmental transformation in cities and regions across the world. Our mission is to empower tourism and events professionals with the mindsets, skill sets, and toolsets to co-create more regenerative and resilient destinations to visit, meet, and live in. Discover more at www.gds.earth.
ABOUT THE GLOBAL DESTINATION SUSTAINABILITY INDEX (GDS-Index)
The GDS-Index is a trusted performance improvement programme to assess and accelerate the progress of a destination’s regenerative journey. It measures, benchmarks, and enhances the sustainability strategies, action plans, and initiatives of more than 100 destination management organisations, municipal authorities, and their tourism supply chains.
Co-founded in 2016 by the International Congress and Convention Association (ICCA), City Destinations Alliance (CityDNA), IMEX Group, and MCI, the GDS-Index offers an unparalleled resource for visitors, DMOs, municipalities, and event planners looking for destinations that offer the best in sustainability performance.
Three factors influencing the development of sustainability data management technology in 2024
by Frederik Steensgaard, CEO and Co-Founder, BeCause
Want Better ESG Outcomes? Get Your Data in Line
Regardless of sector, no company can afford to ignore sustainability today; the commercial, moral, and regulatory mandates are just too significant – and potentially costly. Despite this, many companies struggle to advance sustainability within their operations, resulting in tepid actions that amount to little more than greenwashing or worse, greenhushing. Why? In most cases, organizations have a data problem.
Specifically, they lack reliable and trustworthy data about their environmental and social impacts and the tools to translate them into the meaningful insights required to convince decision-makers to pursue transformative projects. The adage,” You can’t manage and innovate what you can’t measure,” has never been more accurate when it comes to sustainability data.
Technology that can help a company harness its own sustainability data and communicate sustainability metrics across stakeholders is indispensable. More than any other sustainability innovation, it can catalyze better ESG outcomes, enabling companies to identify strengths and weaknesses and optimize costs, asset utilization, and energy performance.
What is currently influencing the development and direction of this technology? Below are three factors that will have the greatest impact on how corporations collect, coordinate, communicate, and, in general, manage their sustainability data.
Artificial Intelligence Elevates Sustainability Data Management
Could we write about technology innovation in 2024 without referencing artificial intelligence? No. While AI permeates nearly every discussion about the future of business operations, its promise is immense in efficiently managing sustainability data.
For many industries, as is the case in the tourism, hospitality, and travel sectors, where we focus our efforts, sustainability data exists in siloes and is governed by outdated manual-led and error-prone processes. A sustainability data management platform upends the current and fragmented approach to data collection, analysis and distribution by serving as a centralized hub where all sustainability data enters and exits.
Instead of having bits and pieces of valuable information between stakeholders’ inboxes and other disconnected places, the platform acts as the single source of truth. It allows sustainability managers to leverage big data analytics to get buy-in on sustainability projects internally with shareholders and customers.
AI is the layer that helps interpret and apply this data across stakeholders and workflows without putting the onus on human resources to map this data. For instance, say a company collects metrics on their direct and indirect water usage and needs to use this data for many purposes, such as applying for voluntary certifications, complying with mandatory sustainability reporting frameworks, sharing with a supplier working on water conservation implementation, etc.
Unfortunately, these pieces of critical data can rarely be used in their current state due to different input requirements and requests, making it impossible for companies to upcycle their data effectively.
AI eliminates this impediment, allowing sustainability managers to do more with less effort, time, and money. AI, coupled with machine learning, can also identify gaps in the data collection to make targeted suggestions that help companies set ambitious internal benchmarks and better meet external requirements.
Regulatory Compliance Forces the Issue
2024 is already evolving as a watershed for sustainability disclosure legislation. In March 2024, nearly two years after they were initially released, the United States Securities and Exchange Commission finally ruled in favor of climate change reporting regulations for publicly listed companies, while in the European Union, large enterprises are preparing to release their first reports on their sustainability-related activities under the EU’s Corporate Social Responsibility Directive. New Zealand, Australia, and Canada all have similar reporting rules, either on the table or approved.
Of course, this exercise won’t directly push companies to become more sustainable, but it does force them to undertake a more thorough analysis of their activities, which is a potential game-changer. The most rigorous reporting rules will require companies to report on both their direct and indirect footprints, a process called double materiality. This means that sustainability data management platforms must do more than collect a company’s data and be able to output audit-ready reports.
These platforms must also be comprehensive communication vehicles for all sustainability metrics that affect and are affected by the company. For instance, under double materiality, a hotel reporting on its energy consumption would have to detail how its energy-intensive operations, such as heating and cooling, contribute to greenhouse gas emissions and, therefore, global climate change while also accounting for how climate-related risks due to extreme weather events could disrupt their operations, damage their property, impact guest safety and their capacity to deliver goods.
Some business leaders aren’t quite cheering the introduction of mandatory sustainability reporting, saying the activity, which elevates sustainability to financial reporting status, will cost too much. Indeed, the American rule, which doesn’t include Scope 3 emissions reporting (emissions that a company is indirectly responsible for), is already being challenged in court. Whether that challenge is successful is, nonetheless, almost beside the point because companies operating in the United States and Europe will already have to determine how much greenhouse gases they emit and how climate change could hurt their businesses.
Just like technology advancements significantly reshaped the landscape of financial reporting by driving down costs and making it easier to collect, distribute, and publish audit-ready reports—think automated accounting software, data analysis and management, and digital dashboards—innovations like sustainability data management platforms can do the same for sustainability reporting.
According to Reuters, this is already happening. Investment in these platforms, along with investment in sustainability risk management solutions and emissions management solutions, is seeing exponential growth and will be the focus of corporate sustainable tech expenditures by 2026, underscoring the critical role that sustainability disclosure rules play in promoting sustainability-focused actions.
Investor Demand for Sustainable Options Grows
While not directly tied to sustainability data management, venture capital investments in climate technology as a proportion of overall startup investments have continued to rise despite 2023’s challenging funding environment.
Further, investors (including individuals) are increasingly incorporating ESG factors into their investment decisions and demanding more transparency and disclosure from companies on sustainability issues. A Principles for Responsible Investment (PRI) survey found that 80% of investors consider ESG factors in their investment decision-making process. In contrast, according to Morgan Stanley, 54% anticipate boosting allocations to sustainable investments next year. Last year, ESG mutual funds and ETFs rose by 53% to $2.7 trillion, reinforcing that doing good for the planet is also good business.
Companies without efficient sustainability data management technology, however, risk being left behind. With mounting sustainability disclosure rules, the investment environment has the most potential to help push the adoption and development of modern sustainability data management platforms.
When it comes to sustainable technology, we admit that data management might not seem like the most glamorous innovation. However, without an efficient and cost-effective way to understand and predict the impact of a business’s activities on the planet, it can be difficult for companies to find the resources required to invest in initiatives that will lessen their carbon footprint and satisfy their stakeholders. In this case, sustainability data management technology is the horse pulling the cart, and that’s a role we are very happy to play.
With an alarming number of extreme weather events dominating the headlines over the past few years and major reports sounding the warning bells about global warming, the effects of climate change have become impossible to ignore. While governments are responding with more aggressive policies to curb carbon emissions, consumers are increasingly looking to corporations to play their part and do good for people and the planet. According to the Harvard Business Review, companies that invest sufficiently in sustainability will outperform those that do not, particularly among younger consumers.
Travel is one major industry where consumers recognize the need to be more sustainable. In Booking.com’s 2022 Sustainable Travel Report, 71% of global travelers hoped to travel more sustainably in the upcoming year, marking a 10% increase from 2021. This trend intensified, with the 2023 survey showing a 5% increase—reflecting a growing commitment to eco-friendly travel choices.
This commitment is expected to pay significant dividends. The global demand for sustainable tourism is expected to exhibit a compound annual growth rate of 23.8% between now and 2034, with net revenue estimated to reach a value of nearly US$12,815,005 million (about $39,000 per person in the US) by the end of this period.
And yet, despite these numbers, there is some evidence that consumer interest in sustainable travel has plateaued at 75%, based on Booking.com’s most recent Sustainable Travel Report. While this stagnation doesn’t diminish the importance of sustainability in travel (three-quarters of the population is not insignificant!), the leveling off can be attributed to the challenges consumers face in finding and booking sustainable travel options.
Chief among these challenges is choice and trust. Though the availability of eco-accommodations is on the rise, identifying sustainable accommodations outside of this category is less obvious. How can you be sure the hotel you’ve booked for a weekend in London prioritizes sustainability and is not engaging in greenwashing activities? Furthermore, how can hotels in the same group maintain a consistent level of sustainability across different locations to ensure that guests are not disappointed from one booking to the next?
Overall, consumers tend not to trust brand sustainability claims, and that’s certainly the case in travel.
According to Booking.com’s 2023 survey, nearly 40% of consumers said they don’t trust the sustainability of available travel options. About 50% think they are too expensive, likely because these options tend to cater to the luxury market. And yet, 45% of consumers in the 2024 poll say they find it appealing when they come across an accommodation with sustainability labeling, with 67% agreeing that all travel booking sites should use the same sustainable certifications or labels.
The message to companies is clear: to meet the demand for sustainable stays and ensure the trustworthiness of their claims, hospitality brands must be ready to prove that their actions towards the environment are genuine.
Recognized certifications from organizations like Green Key are the best way hotels can substantiate their green policies to the public. What those certifications mean must be clearly communicated via different booking partners using consistent terms. Laid out in this way, the mission seems rather straightforward, and yet anyone involved in quantifying, analyzing and communicating sustainability within the hotel space knows this is far from true. Let’s explore why.
The path to sustainability: An inconsistent, rocky and obstacle-filled road
Establishing standardized reporting and certifications across the hospitality and travel industries is essential for scaling sustainability practices. Data is central to creating these standards, but the existing sustainability data management practices don’t allow it. Many hotels, even ones that are part of large hospitality groups, still collect and communicate their sustainability data manually—in other words, through email and spreadsheets. It’s a decentralized, time-consuming process prone to human error that results in inconsistent experiences across different properties. It’s also expensive.
According to our estimates, hotels spend nearly $8 million annually on sustainability reporting using these complex fragmented and manual approaches without much to show. And because each eco-certification standard asks for data based on its own parameters, data can’t easily be re-used, creating a significant hurdle across the industry towards sustainability innovation and initiative expansion.
The challenges are similar for booking partners like online travel agencies (OTAs). To communicate a hotel’s sustainability credentials to its customers, OTAs often receive an exported list of hotels via a spreadsheet from the different certifiers and then must manually (and individually) match them to hotels in their database before being able to create a category for sustainability within their booking channels. As a result, it’s near impossible for OTAs to process information in real-time, fueling consumer skepticism about the validity of a travel provider’s sustainability claims and discouraging some platforms from including sustainability as a search parameter.
In 2024, no hotel or booking partner should manually manage its sustainability data. This practice causes them to miss out on revenue from the growing eco-conscious traveler market and puts them at serious risk of not meeting sustainability reporting and compliance requirements. Governments worldwide, such as the European Union, have begun implementing these standards for all businesses operating within their borders.
Removing the obstacles to more responsible tourism
If siloed and outdated practices are the problem, combining a hotel’s sustainability data and data requirements from eco-certifiers and government regulators into a centralized, interconnected database is the modern-day answer. While sustainability data management software has existed for many years, no system has ever addressed hotels' specific needs.
With the introduction of the BeCause sustainability data management hub, hotels and the broader travel industry now have a streamlined way to handle sustainability data. This hub acts as an intermediary, efficiently funneling data between all relevant parties within and outside the organization. But what does this mean in practical terms?
Individual hotels, large chains, booking engines, industry organizations, and eco-standards certifiers can be on the BeCause platform. For instance, the Sustainable Hotel Alliance and World Travel and Tourism Council have made their frameworks for calculating and evaluating a hotel’s sustainability impact available on BeCause.
Today, hotels can use those tools directly within the hub. In the near future, they can map their existing and new data to these frameworks automatically, easily allowing them to identify gaps or missed opportunities in their sustainability data collection. The same idea applies to certifications like Green Key or government regulations like the EU’s Corporate Sustainability Reporting Directive—those frameworks already exist in BeCause, and thanks to the magic of machine learning and artificial intelligence, hotels can upcycle their data to different standards at the press of a button.
This streamlined process matters as it means hotels can be more ambitious and apply for more certifications without doing more work. At the corporate level, it can help hotel sustainability managers see which individual properties are falling behind so they can offer their support. Booking platforms plugged into the BeCause platform can also automatically update their database of sustainable hotels on a rolling basis, offering their customers a broader, more extensive selection of sustainable accommodations with verifiable and easily explained eco-labeling at almost every price point. For example, hotels can use the ESRS framework to collect the necessary data and comply with CSRD requirements.
The demand for sustainable travel options remains strong, but consumer weariness has started to creep in. To quell that weariness, hospitality providers must double down on their efforts to build trust through accurate and consistent sustainability reporting that leverages recognized certifications to instill confidence in travelers looking to reduce the carbon footprint of their travels.
Aside from the revenue gains, investing in a more automated, centralized, and intuitive sustainability data management system like BeCause will help hotels save on operational costs, meet compliance and reporting obligations despite increasing regulations, and gain an undeniable competitive advantage.
Most importantly, these actions enable more responsible tourism by providing travelers with trustworthy, sustainable choices and ensuring their travel experiences positively contribute to the environment and local communities.
About the Author
Alina Arnelle, Chief Sustainability Officer at BeCause
As the Chief Sustainability Officer, Alina’s main responsibility is to contribute and devise the company’s strategy with the aim of incorporating the latest sustainability trends and ensuring the company is up to speed with the relevant industry-specific developments. Additionally, Alina’s key role is to proactively develop specifications and direct the development of the BeCause platform within sustainability-related topics.
Combining d2o's PMI GoGreen environmental management tool and BeCause's sustainability reporting platform offers hotels the only CSRD compliance solution rooted in efficiency and profitability.
NICE, France, May 22, 2024 - BeCause, the Danish start-up transforming how the global hospitality, travel, and tourism industries manage their sustainability data, has partnered with d2o, a leading forecasting and resourcement management technology provider for the hospitality industry, to create a comprehensive Corporate Social Responsibility Directive (CSRD) solution for hotels. The collaboration unites the BeCause Sustainability Hub with d2o's PMI GoGreen suite of prediction, targeting, tracking, and allocation tools to create an auditable CSRD reporting solution that goes beyond compliance to boost efficiency and profits. The partnership was announced yesterday at the World Sustainable Hospitality Alliance Spring Summit in Nice, France.
By joining forces, BeCause and d2o have taken a giant leap toward building a viable, valuable ecosystem between the hotel industry and technology providers that leverages the power and potential of daily sustainability data management. CSRD compliance is just the starting point; BeCause and d2o are demonstrating that with the right technology, sustainability initiatives can drive operational efficiency and profitability for hotels around the world.
"As an inventor and entrepreneur, it is a dream come true to have a product that fully meets the needs of our customers' stakeholders, including owners, guests, staff, authorities, and local communities," says d2o CEO Young Nguyen. "The partnership between d2o and BeCause will enhance the hotel industry's ability to transform a costly compliance challenge into a business opportunity. We call this partnership PMI GoGreen BeCause… because the hotel industry and the planet require a comprehensive solution to address a complex issue."
Going Beyond CSRD Reporting and Compliance
As a result of this partnership, the PMI GoGreen tools will be seamlessly integrated into the BeCause platform. This integration, facilitated by an API, allows for the sharing and mapping of data, making it reusable for CSRD reporting. This not only simplifies the compliance process for hotels but also ensures accuracy and auditability at the activity level, meeting financial-grade CSRD reporting standards.
However, the joint solution goes beyond compliance and reporting. By centralizing data within the BeCause platform and applying the integrated PMI GoGreen tools, hotel chains gain visibility into which individual properties are meeting their targets for reducing CO2 emissions, energy consumption, water usage chemicals, waste, towels & linens, and food waste. The combined solution also utilizes machine learning algorithms and predictive analytics to identify those targets and help properties optimize resource usage to meet them amidst daily fluctuating demand. System integration service ensures seamless interoperability between the BeCause Sustainability Hub, PMI GoGreen tools, and various internal hotel systems, including property management, point-of-sale, table reservations, sales and catering, timekeeping, and more.
These combined capabilities allow hotels to increase efficiency—hotels are projected to reap 12-15% in resource savings—cultivate ownership among frontline managers, showcase their sustainability efforts to travelers, and, of course, meet their CSRD compliance obligations.
"We believe in the power of ecosystems, and by partnering with d2o, we've built a particularly effective one," says BeCause CEO and Co-founder Frederik Steensgaard. "Not just in terms of helping hotels reach CSRD compliance, but by using the combined capabilities of our solutions to address everyday issues that impact their margins and organizational effectiveness. Why should compliance and reporting be a cost-heavy headache for hotels when it could be driving profitability and operational efficiency?"
An Efficient Solution Specifically Designed for Hospitality
BeCause is a purpose-built, AI-powered hub that centralizes a hotel's sustainability data and automates the transmission of that data amongst different stakeholders, such as travel and accommodation booking marketplaces and industry certifications. Additionally, once a hotel enters its data into the BeCause platform, it can be upcycled and automatically mapped to multiple frameworks, making qualifying for voluntary green certifications faster and more efficient while ensuring regulatory compliance.
The PMI GoGreen suite of tools developed by d2o enables hospitality groups to achieve their long-term environmental goals by breaking them down into monthly targets tailored to each property's attributes and seasonal variations. Each hotel's future targets are dynamically adjusted based on progress, ensuring the consistency of the group's end goal. Individual hotels and hotel chains can track their progress with forward looking data-based indicators and utilize predictive analytics to optimize resource allocation, minimize waste, and cut operating costs.
The combined PMI GoGreen BeCause solution leverages these capabilities to deliver at least 100% ROI for hotels that implement it. The solution will undergo a phased roll-out through the summer of 2024 before formally launching in September.
For more information about BeCause, d2o or the partnership, or to request an interview, please contact: Vanessa Horwell at vhorwell@thinkinkpr.com for BeCause CEO and Co-founder, Frederik Steensgaard or Young Nguyen young@d2o.com for d2o, Founder and CEO.
About BeCause
BeCause is an enterprise software company that streamlines the flow of sustainability data and creates synergies between different stakeholders in the travel, tourism, and hospitality industries, empowering them to make decisions that result in positive, responsible change for people, the planet, and their profits. BeCause works with over 25,000 hotels, including brands like Radisson, certification entities like GreenKey, industry partners like the Global Sustainable Tourism Council and the SHA, and marketplaces like Booking.com. For more information, visit because.eco.
About d2o and PMI GoGreen
Founded in Norway and built on Scandinavia's legacy of employee well-being and sustainability, d2o has over 20 years of experience helping clients optimize resources for maximum profit while navigating high-cost environments. The company's PMI GoGreen Environmental Management System (EMS) empowers hotel managers to surpass compliance and achieve true sustainability. Leveraging auditable data, predictive analytics, and hotel demand, PMI GoGreen reduces CO2 emissions and the usage of critical resources like energy, water, and food and transforms hotel sustainability obligations into a profitable, cross-functional endeavor. For more information, please visit www.d2o.com/sustainability-gogreen-with-pmi-by-d2o/.
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