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Linking sustainability targets to bonuses

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Many companies today demonstrate their commitment to sustainability through goal setting. Establishing sustainability based Key Performance Indicators (KPIs) and quantifiable targets are a great way to show stakeholders your business is committed to improving operations and impact. The real question is though, how do you ensure these targets are met? How can leadership ensure that their team works to achieve these targets?

One way to do this is to tie executive remuneration bonuses to sustainability targets. This provides a huge incentive, and as a ‘carrot and stick’ approach  – it can be extremely effective. For example, a Dutch multinational unveiled a policy in 2010 which tied executive bonuses to environmental targets. It is a serious deal to think that the company’s four hundred executives will not get 50 percent of their annual bonuses if they fail to meet sustainability and climate goals – but from a strategic perspective it’s an extremely effective way to “get things get done.”

A review undertaken by Jayne-Anne Gadhia, the chief executive of Virgin Money recommended that, due to the persistent low number of female representation at senior level across UK financial services, financial service firms should “connect parts of the remuneration packages of their executive teams to gender balance targets.” 

In the tourism and travel industry this measure is also being used. For example, Intrepid Travel, a company that is a strong advocate for responsible business, expresses on their website that, “all Intrepid staff are rated on their contribution to environmental and social sustainability in their annual performance reviews.”

So if you are a business leader with a serious commitment to improving sustainability, then why not put some money in the equation? It might just pay off.


How “insetting” is helping AccorHotels win over guests and locals

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AccorHotels win over guests and locals

Many hotels today try to offset their environmental impact, but French hotel chain AccorHotels uses a unique approach called insetting. That is, its CSR initiatives rehabilitate and sustain the very areas the business depends on for survival. By Travindy. Read more.


PATA Team Members participating in Earth Hour

by Laura Freeman, Sustainability Associate, PATA.

On Saturday night the PATA team turned off their lights for one hour to show support for Earth Hour, a global event which celebrates our planet and harnesses the power of collective action to change climate change.

There were over 1.2 million individual actions taken in 2016 and we are proud to say that PATA was a part of this result.

It is extremely important for businesses and organisations today to support and participate in events such as Earth Hour. There has never been a more important time to take action on climate change for the health of our planet.

As an international tourism association, we are able to reach further, influencing organisations and businesses that we work with. We are able to influence our networks and followers and most importantly, our own team.

It is also important that leaders of an organisation or business supports and encourages participation in events such as Earth Hour. With their leadership, the team is empowered and more likely to jump on board.

To watch the 2016 video click here. To see Earth Hour 2016 around the world in pictures click here.


Expand Your Influence Through Supply Chain Sustainability

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supply chain sustainabilityWhen it comes to being a leader in sustainability, business leaders need to think holistically. The supply chain of each business in the travel and tourism industry is not separate, but rather an extension – the sustainability of one company is inextricably linked to the sustainability of each and every one of the companies it works with.

Although not a new issue, supply chain sustainability is now moving up the agenda for leading tourism and travel companies. For example, in late 2015, Air New Zealand released its revised Supplier Code of Conduct which outlines best practice social, environmental, and ethical standards for over 4,500 suppliers which make up the Air New Zealand supply chain.

As Leeds Metropolitan University rightly stated in their report on Tourism Supply Chains, “tour operators have enormous influence over activities throughout the tourism supply chain, since they direct and influence the volume of tourism, the tourist destinations and facilities that are used.”

But where do you start? The daily management of often large, complex supply chains is quite the task, let alone striving to ensure they are sustainable. UN Global Compact participants actually ranked supply chain practices as “the biggest challenge to improving their sustainability performance.” So it is certainly no easy feat.

Nevertheless, the supply chain sustainability challenge can be overcome and with great rewards for those business leaders that prioritise and commit at the top level. Some initial steps that tourism businesses should take is to:

  1. Read the UN Global Compact Supply Chain Sustainability Practical Guide and take note of the business case on page 15.
  2. Check the International Tourism Partnership page dedicated to addressing Supply Chains in the industry
  3. Have a look at MindClick a sustainability performance measurement platform which serves as a marketplace for sustainable sourcing
  4. Create a Policy and or Code of Conduct which sets out some standards that you can communicate to your supply chain. Even if your focus is first on a small number of environmental criteria, this is a great start.

The tourism industry has a collective responsibility to ensure that the impact it has on the environment is minimised and that sustainable industry practices are encouraged.    Destination Melbourne has a role in providing leadership to the tourism industry, and educating visitors on how they can reduce their environmental and social impact.

by EarthCheck



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Singapore, Macau and Taiwan take the lead

Sustainability for the business events industry in Asia is taking time to take hold. A lot of events people have good intentions and while we are seeing signs of acceptance of the importance of sustainability, there’s a need for less talk and more action. Ken Hickson. Read more.