Alistair Pritchard, Deloitte’s lead partner, travel and aviation, told Abta’s Delivering Sustainable Travel conference he “absolutely firmly” believed the industry was at a tipping point.
Investors would ask whether they were buying into a business that had a long-term sustainable future, he said.
“Big funds that invest in industries have been talking about ESG (Environmental, Social, and Corporate Governance) because typically, they invest for the long term,” he said. “They worry about long-term devaluation and depreciation. This is relevant to everybody even if you are not part of a big PLC.”
The rise of ‘green financing’ will propel sustainability initiatives, he continued, with factors like interest rates on loans tied to sustainability targets.
“At the moment it’s not seen as a big priority, but I’m convinced that will change.”
He urged companies to “think about what is and isn’t sustainable”.
“Thinking about what your business will look like in 5-10 years’ time is absolutely valid. It’s not about a big bang project that will fix everything, it’s about lots of micro stuff that you can do.”
Recruitment will also be an issue, he predicted, with the best talent wanting to work with companies with environmental credentials and a purpose.
ESG was not just the responsibility of the sustainability lead in a company, he said, with areas like human resources having a contribution to make so that concepts were understood, and diversity and inclusion embraced.
Finance departments also had a role, with the new Task Force on Climate-related Financial Disclosures (TCFD) requirements. These aim to increase reporting of climate-relevant financial information. Pritchard said this stipulation would likely be extended to large private companies.
“I think consumers are further behind on this journey; it is governments and shareholders that have set expectations and that’s what will permeate down,” he added.
