High Flyers
High Flyers – ARI’s holistic approach to ESG
Aer Rianta International (ARI) Chief Operations and Business Development Officer Nuno Amaral also leads the company’s Environmental, Social and Governance (ESG) strategy. In this latest in a series of ARI columns for The Moodie Davitt Report, Amaral discusses the successes of ARI’s ESG programme since it was launched in 2021, at the same time recognising the collective work that remains to be done for a sustainable future.
The latest UN Climate Report (published in March) offers a stark reality check: our “window of opportunity to secure a liveable and sustainable future for all” is closing rapidly, writes Nuno Amaral. The time for action was yesterday, so we each have a responsibility – individually and collectively as businesses – to take our ESG commitments seriously and deliver real change.
ESG isn’t new to the corporate world, and in the last few years it has become part of the mainstream conversation within the travel retail industry. A robust ESG strategy is not ‘nice to have’ – it’s the expectation from our partners, our customers and our colleagues.
We are increasingly seeing ESG highlighted as a core criterion, sometimes even as part of the scorecard for new business tenders. The rise of the conscious consumer is something we are all familiar with, and the expectations they come with. And it’s also an important consideration for our talent, both existing and prospective. People want to work with companies who align with their values.
Nuno Amaral: ESG as a core value
Earlier this year, ARI launched its new brand strategy, with clearly defined values and behaviours that distinguish us as a business. When I think of ESG and why we are so passionate about it, our core values of ‘do things right’ and ‘look forward’ instantly come to mind. There is a renewed energy about our business, and that includes towards our ESG strategy.
Doing the right thing isn’t always the easiest business decision when it carries commercial implications – for example, investing in more expensive materials, waste management programmes or renewable energy infrastructure. Price concerns and economic pressures have also pushed environmental and sustainability considerations down the priority list for consumers, with value often being the overriding purchase motivator.
But we must ask ourselves – what impact do we want to have on the world? What do we want our legacy to be? Are we staying true to our values? And are we future-proofing our business?
Little change, big differences at Cyprus Duty Free
We launched our ESG strategy back in April 2021, at the height of a global pandemic. Despite being in the midst of the most turbulent time in our industry, we looked at the bigger picture and recognised the important role we have to play in bringing about change. Our strategy takes a holistic approach, devising three simple pillars – People, Planet and Product – with internal and external commitments under each. We have clear targets in place up to the end of 2025, but these are ever-changing and evolving.
Each of our locations is empowered to adopt and implement this overarching strategy at a local level. We have seen some wonderful initiatives across the estate: from community engagement projects and Diversity, Equity and Inclusion initiatives, to important progress in waste reduction and the removal of single-use plastics from our operations.
New Sustainable Design Guidelines have been launched and are currently being implemented as part of the refurbishment of all Portugal Duty Free stores, with a focus on sustainable fixtures, fittings and store design features. To date, 162 initiatives have been undertaken since the launch of our ESG strategy, outperforming our annual benchmark of 55. The will and commitment of our teams to bring this strategy to life has been incredible.
“Isn’t it time to realise that tough decisions are the right ones?”
I’m really inspired by the dedication we have seen from some of our brand partners to drive the ESG agenda across the industry. The Pre-Loved concept builds on the Circular Economy model and will be an important driver in fashion & accessories. We have some exciting initiatives underway in this space. We’re constantly challenged to do better, and it’s an exciting time for innovation across our business and industry.
ARI’s primary ESG focuses for 2023 include eliminating single-use plastics from our retail and office operations in favour of bioplastic, recycled and recyclable alternatives; ensuring 75% of food and confectionery products have at least one ecologically or socially responsible attribute; and continuing to champion locally-sourced products by maintaining at least 15% local suppliers in food and souvenirs.
A focus on nature at The Loop, Dublin Airport
I’ve referenced the rise of the ‘conscious consumer’ – aren’t we all now conscious consumers? More than ever, we are informed and educated in the choices we make; this is not a subcategory or a shopping niche. It’s essential that we make it easy for customers to make informed decisions at our stores and shop on their terms. Launched last year, our ‘Little Changes, Big Difference’ marketing campaign has now become a permanent fixture in our stores and it almost serves as a wayfinding function by highlighting products and brands with specific sustainable callouts across all categories.
We – ARI and the industry as a whole – have made important progress on our ESG efforts, but there is still much to do. Affordability remains an obstacle for consumers, and investments can be challenging from the point of view of a business. But isn’t it time to realise that tough decisions are the right ones?
Exploring the key dynamics driving the travel retail industry forward, this is the second column in a series presented by ARI and The Moodie Davitt Report. Click here for the launch edition.
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The Moodie Davitt eZine
Issue 322 | 14 April 2023
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