Global Event Agency MCI is implementing a new environmental, social and governance (ESG) framework in its procurement operations, indicating a change in its approach to sustainability.
The company aims to achieve net zero emissions operations by 2030 and sets a goal for its entire value chain to reach net zero by 2050. This is a difficult goal for a company that has steady growth.
“I call it basic sustainability – you know, paperless, plastic-free, local seasonal food, the more vegetarian you eat, everything starts to be the basic thing we should implement – No fees are charged for this. “It is part of our culture of caring and responsibility, our USP [unique selling point],” she added.
Fawer spoke with Quentin Remy, MCI’s global procurement and strategic procurement director, at a recent MCI CheckedIn event. The event brings together procurement experts from companies from around the world with senior sales representatives from major hotel chains. One core goal is to get a buy from a hotel partner. Remy said MCI’s aspiration is “to incorporate all our value chains at the global and local levels. We want to leverage the power of MCI. We have these partners and we believe we need to use them to solve our ESG issues.”
Demand for standardized sustainability indicators
The framework is presented by MCI in the role of the official housing agency of the United Nations Climate Conference (COP26) in Glasgow in 2021. The company has developed a supply chain assessment system that evaluates nearly 200 hotels representing 8,000 rooms in Glasgow and surrounding areas.
“We managed to score points from it. The United Nations is very happy because it is actually a new thing to make decisions involving sustainability ratings for the group and the individuals who are about to attend the meeting,” Remy said. “It’s no longer just the price or where the hotel is. You also have a sustainability rating.”
The same evaluation system based on 29 standardization questions is now integrated into the MCI custom version of CVENT, allowing consistent sustainability ratings across properties.
“We need an apple to apple thing so we can compare the same thing. It needs to be a SOP. It has to be a quick and easy process,” Remy said. Every property now has an ESG evaluation score in the system, allowing MCI planners to share sustainability metrics with traditional standards such as location and price. This also allows meeting participants to make informed decisions about their hotel booking options.
Navigation implementation challenges
While MCI’s sustainability framework is receiving internal attention, implementation requires partnerships with major hotel chains that provide 70% of their total room inventory, including 40,000 properties worldwide. Some chains have shown resistance to data that adopt stricter sustainability practices or reveal their attribute scores than competitors’ data.
The company’s approach focuses on working with willing partners while maintaining pressure on improvement across the industry.
Integrate sustainability into business practices
Despite the progress, sustainability is usually talked about, but there is little action.
To support the new framework, MCI uses two tools for carbon footprint measurements: MyClimate Carbon Tracker for basic measurement and offset functions, and ISLA tracking, which provides a more detailed analysis of recurring events. MCI made it clear that it saw business opportunities to build sustainability strategies for customers rather than basic measurements.
The company’s voluntary compliance with the Global Reporting Program (GRI) standards in its latest financial and sustainability reports helps build trust in public companies that must meet similar standards in their own sustainability reports.
Its annual report shows revenue grew 6% in 2023 to $515 million (€493.1 million) while operating EBITDA rose 29% to $31.9 million (€30.5 million). The report also details the company’s sustainability plan and discloses information about its ownership structure: The Tondeur family owns 37% of the shares, senior management holds 43% and private equity investors hold the remaining shares.
The new framework is as the EU formulates environmental regulations that affect the event industry. In addition to the Company Sustainability Reporting Directive (CSRD), companies must also browse the ecological design of the Natural Recovery Act, the Green Claims Directive and the Sustainable Products Regulations.
“For a long time, sustainability has been great, it’s great, it feels great. But if we want things to move forward and change, there are some key deadlines,” Fore said. “There are laws now that force us to do this. It’s the same process as our data protection, GDPR.”
Looking to the future
The success of the MCI framework, especially its CVENT integrated sustainability scoring system, can set new standards for the event industry. However, questions about the cost of widespread adoption and implementation remain. Other agencies of activity need to be strengthened as new EU regulations take effect, but the huge magnitude of the mission is daunting.
“It’s also an opportunity for our clients, maybe generating more revenue and attracting different attendees because we implement everything around sustainability that is aligned with the company’s values or association’s values,” Fore said.
As regulatory requirements increase and customers face their own sustainability pressures, MCI’s early moves in standardizing sustainability indicators may prove favorable. The company leverages its COP26 experience as a capability for practical, scalable systems while engaging in complex relationships with hotel partners and addressing evolving EU regulations that could provide a blueprint for the industry’s sustainable future.
