The Corporate Sustainability Reporting Directive (CSRD), introduced in the European Union (EU) in 2023, will have implications for small African travel companies with connections to the European market as the legislation forces greater transparency in reporting on sustainability practices of large companies and their value chains.
The CSRD requires large and listed companies to report on their sustainability risks and impact. Disclosure of sustainability, performance and risk management strategies will filter to smaller companies within their supply chains.
Speaking during a webinar hosted by the African Travel and Tourism Association (ATTA), Elfrieke van Galen , Partner at sustainability consultancy The Rock Group said, in the EU, the tourism industrys environmental impact and over-tourism are under a microscope.
The CSRD comes at a time when sustainability legislation is increasing globally and concerns about over-tourism, especially in the EU, are starting to replace the narrative about the tourism industrys economic impact, she added.
The CSRD and similar regulations boost tourism transparency with mandatory reporting on environmental, social and governance or sustainability impacts, Van Galen pointed out.
