Although sustainability in events encompasses many different motivating factors there are three ‘why?s’ most fall under: moral, legal and commercial.
Here’s event:decision’s summary of how to use these key drivers to get C-Suite attention and buy-in. And why you should.
The ‘Moral’ why: building trust, reputation, and ethical standards
The moral case for sustainability in the events industry is driven by a commitment to leave a positive impact on society and the environment. It stems from the belief that businesses hold a responsibility that extends beyond financial gains to include social and environmental stewardship.
Your audience doesn’t expect your business to solve all the planet’s problems. They do expect your event to deliver on the promises your business has committed to.
You can make money and do good; you can pursue something that has a purpose but also make it good for your brand.
Trust as a foundation for sustainable relationships
Trust is the cornerstone of any successful event. It encompasses the confidence that stakeholders, including attendees, sponsors, and the local community, place in an event organiser’s ability to deliver not only a remarkable experience but also to act responsibly towards people and the planet. Building trust requires transparency in operations, honest communication regarding sustainability efforts, and consistent delivery on sustainability promises.
Reputation: the intangible asset
An event’s reputation is a valuable but intangible asset. It is shaped over time through public perception and direct experience with the event’s brand. A visible commitment to sustainability will enhance your reputation, as it reflects a conscientious approach to business that resonates with public sentiment. Events that are perceived as ethical and responsible can often command a premium, attract better talent, and achieve higher levels of attendee satisfaction and loyalty.
Business ethics: the blueprint for behaviour
Business ethics are the principles that guide an event’s decisions and actions. They encompass a wide range of issues, from environmental stewardship and fair labour practices to anti-corruption measures and economic justice. By integrating these ethical considerations into the planning and execution of events, organisers can demonstrate moral leadership that not only sets industry standards but also contributes to a more equitable and sustainable future.
Operationalising moral values
Operationalising these moral values means embedding them into every facet of event planning and management. It entails conducting thorough ethical assessments of suppliers, choosing venues that are committed to sustainable practices, and designing events that minimise environmental impact while maximising social benefit.
By focusing on building trust, safeguarding reputation and adhering to rigorous business ethics, the moral driver of sustainability becomes a powerful force that not only shapes the operational approach of the events industry but also its broader impact on society and the environment.
This moral compass is crucial for guiding the industry towards a future where the success of an event is judged not only by its financial outcomes but by the positive legacy it leaves behind.
The ‘Legal’ why: navigating the framework of sustainability
The legal driver of sustainability in the events industry is becoming increasingly significant as both governments and NGOs worldwide introduce regulations aimed at reducing environmental impacts. In the UK, the legislative landscape is rapidly evolving, with a clear trajectory towards greater accountability and transparency in sustainability practices.
Climate Change Act: a benchmark for progress
The 2019 Amendment to the UK’s Climate Change Act has set an ambitious target for the country to achieve net-zero greenhouse gas (GHG) emissions by 2050, with an interim goal of a 50% reduction by 2030. This mandate acts as a benchmark for progress, compelling event organisers to rigorously assess and improve their carbon footprint.
For the events industry, this means rethinking every aspect of event planning and management, from your choice of venues and suppliers to transportation and waste management. Our sector must innovate to find new ways to reduce emissions, including consideration of digital solutions or hybrid events that can reduce the need for physical travel.
Streamlined energy and carbon reporting (SECR)
SECR is another critical piece of legislation that requires companies to report their energy use and carbon emissions. For event organisers, this means they must now have in place robust mechanisms for tracking and reporting energy consumption, whether it’s venue lighting, heating, or the power used by audio-visual equipment.
Corporate Sustainability Reporting Directive (CSRD)
The introduction of the Corporate Sustainability Reporting Directive (CSRD) in the European Union marks a significant step towards enhancing corporate transparency and accountability regarding environmental, social, and governance (ESG) matters.
As you would expect, it’s a complex piece, but essentially widens the reporting of carbon emissions from circa 9,000 to around 50,000 companies. Whilst few of these companies are event planners at heart, they are all event-industry customers.
The CSRD applies to three primary groups of companies: (1) all large companies in the EU, (2) small & medium enterprises listed on EU-regulated markets, and (3) non-EU companies with substantial business in the EU.
Will you be prepared when they ask you for data on the event you are planning for them?
Beyond compliance: leveraging legal drivers for innovation
While meeting legal requirements is a necessary aspect of sustainability, forward-thinking event organisers can leverage these drivers as opportunities for innovation.
By anticipating and exceeding legislative demands, events can achieve competitive advantage, build stronger stakeholder relationships, and enhance their reputation as industry leaders in sustainability.
Integrating legal drivers into strategic planning
Effective integration of legal drivers into event planning requires a proactive approach. Event organisers should stay abreast of legislative developments, engage with sustainability experts to understand the implications for their operations, and embed compliance into the core of their strategic planning processes.
The legal driver of sustainability is a dynamic and rapidly evolving force shaping the future of the events industry. By understanding and responding to the complexities of legislation such as the UK’s Climate Change Act, SECR, IFRS, and CSRD, event organisers can not only avoid the risks associated with non-compliance but also pave the way for a more sustainable and resilient industry. The need for compliance stimulates innovation, elevates ethical standards, and, ultimately, catalyses the transition towards a greener economy.
The ‘Commercial’ why: the economic incentive
Commercial drivers highlight the financial advantages of integrating sustainability into event planning and execution.
Contrary to outdated beliefs that sustainability comes at the expense of profitability, current evidence suggests that sustainable practices can enhance economic performance. Sustainability is now a core component of brand building in the events industry. Events with robust sustainability credentials can generate considerable goodwill and customer loyalty, as seen with brands like IKEA and Patagonia in consumer markets.
If you think that the event industry sits outside the models of our larger customers, think again. McKinsey have demonstrated the effectiveness of sustainability and profitability and also detail the (much more advanced than events) transition of another whole industry .
Innovating business models
The shift towards sustainability is leading to new business models. For instance, events focusing on sustainability will attract sponsors keen to associate with green initiatives, potentially creating new streams of revenue. event:decision is already seeing specific ESG-focussed sponsorship packages at major exhibitions.
Managing assets and costs
Events have to manage their physical and financial assets carefully. In a world where natural resources are becoming scarcer, and environmental risks are increasing, sustainable practices help manage costs and protect investments. For example, using renewable energy sources for events can buffer against the volatility in fossil fuel markets.
The value of efficiency and resilience
Sustainability can enhance operational efficiency and resilience. Events that minimise resource use or adopt circular economy principles can realise cost savings and avoid disruptions from supply chain issues. Moreover, sustainable practices can improve the reliability and predictability of event-related logistics.
Enhancing productivity and engagement
A sustainable event planning company is an appealing workplace. It will an attract employees who are motivated by environmental and social causes, which will lead to enhanced productivity and lower turnover rates. It can also foster greater engagement from all stakeholders, including suppliers, attendees, and the local community, leading to a more successful and impactful event.
Each of these three ‘why?s’ on their own make a compelling argument for a focus on sustainability in events, taken together they are impossible to ignore. If you would like to find out more about how we could work with you to achieve all your event sustainability and event measurement goals in 2024, get in touch.