Events and their sustainability – where are we and what can we do?

By BluExperience | February 07, 2024 | industry-related

Both in Poland and around the world there is more and more talk about ESG principles, (Environmental, Social, Governance). The EU’s Corporate Sustainability Reporting Directive (CSRD), as of January 1, 2024, imposes an obligation on all large entities and small and medium-sized listed companies to provide information on environmental, social and human rights issues and corporate governance in their management report. What does this mean for event agencies? As specialists in organization of events, we understand that the topic in our industry is new and a challenge, but also an opportunity to implement sustainable practices. This article is just the beginning of a discussion and an attempt to structure why the topic of ESG is already worth addressing.

1. Supply chain presence and competitive advantage

Although the directive does not cover the SME sector, as partners and suppliers to much larger market players we are also indirectly subject to it. Since large companies must report on the activities of their sub-suppliers, event agencies wishing to stay in a large client’s supply chain will have to report to them. Transparency of operations and reliable reporting are skills that
can provide a significant competitive advantage over agencies that do not.

2. Access to financial subsidies and innovation

Applying ESG principles to an organization can open the door to obtaining grants from EU and national programs that support environmentally and socially responsible activities. Investors are also increasingly directing their funds toward companies that demonstrate a commitment to ESG principles.

ESG creates opportunities for innovation. Polish event companies can take advantage of this trend to develop new services, such as organizing innovative conferences and congresses that will respond to growing environmental and social demands.

3. Support local businesses

The introduction of ESG principles is also an opportunity to support local communities and economies. On the one hand, we ourselves can support local suppliers, and we ourselves can become such a local partner by acting as a Destination Management Company (DMC).

4. Improve image and credibility

For event agencies, transparent reporting on the environmental, social and governance impacts of their operations can be a tool for building trust among clients, partners and investors. By openly communicating their sustainability practices and achievements, companies can demonstrate their commitment and responsibility. Today’s consumers and business customers are increasingly looking for companies that not only offer quality services, but also operate in a sustainable and responsible manner.
Sustainability is therefore becoming not only a responsibility, but also an added value that companies can use in their marketing communications.

5. Ethical dimension of work

It is worth following ESG principles because it is simply ethical and responsible towards ourselves and our environment. This is a value in itself, regardless of business or legal benefits.

Summary

For an industry that relies on creating experiences and encounters, acting in accordance with ESG principles presents both a challenge and an opportunity for innovative approaches that can bring long-term benefits to both companies and society. Knowledge and understanding of CSRD requirements is becoming essential for any event agency seeking to remain competitive and reputable in the new, more environmentally and socially conscious business world.
ESG implementation in the event industry presents not only opportunities, but numerous challenges related to, among other things. with the lack of clear standards, the need to adapt to changing regulations, financial investments, education of both employees and customers. The subject is so complex that in order to fully understand it and be able to manage it efficiently, networking and mutual learning of best practices is undoubtedly needed. A very big inspiration is MICE industry meetings. Many useful ideas and methods can be found in the reports of international associations.