ESG in the Events Ecosystem: How a Late Adopter is Starting to Bloom

Large-scale event venues consume significant amounts of electricity, posing ESG and financial risks, but venue refurbishments to improve energy efficiency can mitigate these risks.

Face-to-Face events generate significant emissions due to the high levels of travel required, which poses reputational risks to event organizers and suppliers. 

The events industry's reliance on disposable infrastructure, such as booths and event stages (which are purpose-built and used for a short period of time) generates significant waste and negative environmental impact, posing certain risks to event organizers and suppliers. 

Event organizers bring together large numbers of exhibitors and sponsors, and face increasing scrutiny to exclude participants with known unethical practices (e.g., modern slavery, other non-norm-compliant labor practices, etc.) 

In September 2021, the Global Exhibition Industry Association (UFI), and the Joint Meetings Industry Council (JMIC) jointly kicked off the Net Zero Carbon Events initiative, aimed at guiding the Events Ecosystem towards net zero by 2050. The initiative is supported by the United Nations Framework Convention on Climate Change (UNFCCC).

At the COP27 conference in November 2022, the Net Zero Carbon Events initiative launched its roadmap which outlines workstreams and action areas the industry should implement in its effort to achieve Net Zero. This includes recommendations around travel, accommodation, energy, waste, and standardized, measurable indicators. 

The following goals were laid out to achieve Net Zero within the Events Ecosystem by 2050: 

• Develop common methodologies for measuring the industry’s direct, indirect, and supply chain greenhouse gas emissions. 
• Construct an industry-wide roadmap toward Net Zero by 2050 and emissions reductions by 2030 in line with the Paris Agreement, with support and guidance on key issues. 
• Foster collaboration with suppliers and customers to ensure alignment and common approaches. 
• Establish common mechanisms for reporting progress and sharing best practices. 

At the organizer level, attitudes towards sustainability vary widely, depending on their operating market(s), business trends, and ownership structures. 

The two largest organizers in the world—Informa Markets and RX—are part of larger, listed entities in the U.K. In line with other U.K. public companies, they have set sustainability targets and established best practices that are ahead of the broader Events Ecosystem. 

• Informa Group, the parent company of Informa Markets, aspires to become carbon neutral by 2025, by halving their generated waste through products and events by 2025 and become Net Zero Waste and Net Zero Carbon by 2030. Their annual Sustainability Report is among the most granular and data-driven in the industry and provides measurable results across over 300 exhibition brands. 
• RELX Group, the parent company of RX, has announced the publication of a Pathway to Net Zero playbook by the end of 2023, outlining the steps it will take to achieve a halving of greenhouse gas emissions by 2030 and Net Zero by 2040. 

Furthermore, state-owned German Messen, which is among the largest players in the global exhibition industry, have also been vocal in their convictions to reduce their environmental impact. AUMA, the German exhibition industry association, has coordinated a nationwide initiative to achieve 100% green electricity sources by 2025 and carbon neutrality by 2040. In addition to signing up to this initiative, some organizers go further. 

• For example, Messe München’s ‘Green Footprint’ initiative has the chief goal of becoming fully carbon neutral by 2030. Among other best practices, the organizer has used 100% renewable electricity for its exhibition venue since 2020, with a large-scale rooftop photovoltaic installation contributing significantly to cutting its emissions. 
• Under the guidance of its newly created Corporate Social Responsibility department, Messe Düsseldorf has offered a 100% sustainable stand offering since 2022. 

Finally, privately-owned organizers, including those backed by private equity, have tended to be less explicit in their sustainability-related initiatives. While most organizer international presences have signed up to the industry-wide 2050 pledge, few have made commitments to carbon neutrality or net zero earlier than that, contrary to the publicly owned organisers mentioned. 

There are some exceptions to the broad trend towards ESG. Among the top 25 global organizers, the two in China—China Foreign Trade Center (CFTC) and China Council for the Promotion of International Trade (CCPIT) – have made scarce mention of sustainability, instead keeping the public narrative on a strategy focused on post-Covid recovery even in 2023. 

At Stax, our ESG due diligence process entails a meticulous examination of ESG risks. We excel in identifying these risks and providing clients with actionable, strategic recommendations to effectively track, monitor, and mitigate ESG risks throughout the ownership period. This proactive approach ensures that ESG factors can be seamlessly integrated into a client’s decision-making processes, creating opportunities to both mitigate potential adverse outcomes and fortify prospects for long-term value creation.