Travel and Tourism companies increasingly face new regulations to disclose and curb greenhouse gas emissions the industry produces from air travel, cruises, bus tours, hotels, and a host of other activities. As a simultaneously global and hyper-local sector of large global and small local operations, that translates into a bevy of climate-related rules and standards with which the industry must comply as companies often answer to a host of regulators representing all levels of government.

With so many climate frameworks governing operations, compliance can become tricky. We collaborated with the World Travel and Tourism Council (WTTC ) to create the Sustainability Readiness Roadmap. This diagnostic tool helps companies better understand upcoming regulations and provides immediate steps they can take to prepare. In addition, we developed "Navigating The Sustainability Journey: The Impact Of Mandatory Reporting On Travel And Tourism" — a report that looks at three of the most influential sustainability reporting frameworks to determine their impact on the travel and tourism sector. The frameworks are:

• The Corporate Social Responsibility Directive (CSRD) in Europe, including the European Sustainability Reporting Standards (ESRS).
• The International Financial Reporting Standards’ (IFRS) S1 General Requirements for Disclosure of Sustainability-Related Financial Information, an international framework developed by the International Sustainability Standards Board (ISSB), underpins many requirements implemented around the world.
• The Securities and Exchange Commission (SEC) Climate-Related Disclosures in the United States.

Many companies are not ready for the new requirements, and some are unsure where to start. Certain subsectors face higher complexity because of their complicated networks of suppliers and unique business models, while some jurisdictions are perceived to be more receptive than others to increased scrutiny.

However, based on our research and conversations with companies across the travel and tourism sector, there are significant challenges to complying with the new requirements that most companies share. For instance, resources at many travel and tourism operations remain limited following the impacts of the COVID-19 pandemic and subsequent surge in demand as it subsided. Because of the comprehensive reporting requirements of many new regulations, organizations will need to establish a new mindset about sustainability and data collection, and not all departments are ready to support the rigorous new demands. Senior leaders are also hesitant to go all-in on preparing for expected compliance, fearing overkill on the dedication of resources.

This may be a mistake given the public declaration these disclosures represent, not dissimilar to financial reporting. The travel and tourism industry must act with urgency to prepare. This is where the Sustainability Readiness Roadmap comes in. It outlines immediate steps to follow in preparation for compliance, including:

• The Sustainability Framework Applicability Self-Assessment helps companies determine the level of demand each new sustainability framework will place on operations
• The Sustainability Team Maturity Self-Assessment helps companies determine how prepared their sustainability platforms and teams are versus the industry and the requirements of the new regulations.
  

By applying this methodology, companies will better understand their operations' weaknesses and where resources can be most effectively applied. Travel and tourism companies can chart an optimal itinerary to avoid unnecessary delays or turbulence by identifying where to start and how to proceed on their sustainability reporting journey.