Green days

Environmental, social and governance (ESG) issues have become increasingly prominent for consumers in recent years and airline passengers are no exception.

While airports have the benefit of a captive audience of passengers travelling through to begin or end their journeys, it is important to ensure that their needs and expectations are met. PWC recently found that 76% of consumers said they would discontinue their relationships with companies which treat their employees, communities, and environment badly.

The number of millennial and Gen Z passengers with more disposable income will continue to grow. These passenger groups place ESG as a significant factor on their decision making and can limit or grow an airport's commercial revenue. Many airports have capitalised on this through the inclusion of sustainably focused brands as part of their offering or partnering with the local community to build a sense of place through local products and design.

Sydney Airport has recently launched a new brand partnership with the L’Occitane Group and introduced the Grown Alchemist beauty brand as part of its retail proposition. Grown Alchemist is a 'clean' beauty brand that prioritises natural and sustainable beauty and has a target audience of millennials and Gen Z. The brand is cruelty free and has sustainable packaging with an objective to become B Corp certified by 2024. By including Grown Alchemist as part of it’s commercial proposition, Sydney Airport is recognising the importance of ESG to this growing passenger group.

New York's LaGuardia, JFK and Newark Liberty airports worked with the Green Restaurant Association to achieve a Certified Green Restaurant Sustainability for the OTG F&B units (such as the Flatiron Tavern seen in the picture above) that operate across the airports. The certification was awarded based on the environmentally positive steps taken to ensure the F&B units joined the `green dining movement' which includes reducing waste and water usage and conserving energy where possible. 

While sustainability will play an integral role in airport operational and commercial objectives, the social aspect of ESG is also an opportunity that airports can recognise by including local brands and community designs as part of the commercial offering. The travel retail company ARI has a commitment to ensure at least 10% of food and souvenir suppliers are from the local community in all its airport destinations. Airports such as Sangster Airport in Jamaica also utilise the local community in terms of building on its unique sense of place. This is done through the creation of the Bob Marley – One Love restaurant which opened in February this year.

ESG can bring many challenges within the airport environment however it also gives airports and travel retail companies the opportunity to connect with the growing millennial and Gen Z passenger base and to have increasingly innovative brands and designs as part of the commercial offering. The future of ESG is clear and it will be an important aspect of the aviation industry in the long term.

Katie Hastings