Understanding the ESG Framework
ESG gives your business a structured way to identify risks, manage responsibilities, and uncover opportunities to create positive change across environmental, social and governance areas.
ESG is a framework used to understand how a business operates, the impacts it has, and how responsibly it is managed. It is not just about reporting — it is about understanding the risks facing the business, the impacts it creates, and the opportunities to improve performance and create positive change.
Environmental · Social · Governance
Each pillar covers a distinct but deeply connected area of business impact and responsibility. Together, they form a complete picture of how a business operates in the world.
Enviromental
How your business affects the natural world, from energy and water use to emissions, waste, biodiversity and ecological impact.
Social
How your business treats people and contributes to communities, staff wellbeing, diversity, cultural respect, inclusion and human rights.
Governance
How your business is led and managed, ethics, compliance, transparency, risk management, privacy and responsible decision-making. One of the biggest risks to all businesses is Cyber Security. A Cyber breach can dissolve trust and long standing relationships overnight.
ESG and Sustainable Tourism
Sustainability, as defined by the United Nations, means meeting the needs of the present without compromising the ability of future generations to meet theirs. Applied to tourism, this means balancing current and future economic, social and environmental impacts for visitors, industry, the environment and host communities.
ESG gives businesses a practical structure to manage these impacts. It helps operators understand where their risks lie, what their responsibilities are, and where opportunities exist to improve performance.
For tourism businesses in the Mackay Isaac region — a region defined by its natural environment, reef ecosystems and First Nations cultural heritage — sustainable business practices are not just good ethics. They are increasingly expected by visitors, commercial partners and regulators alike.
For tourism businesses in the Mackay Isaac region — a region defined by its natural environment, reef ecosystems and First Nations cultural heritage — sustainable business practices are not just good ethics. They are increasingly expected by visitors, commercial partners and regulators alike.
Three Levels for Every Business
The toolkit is structured across three maturity levels so you can start where you are and build at your own pace — whether you are just beginning or already leading on ESG action.
Foundation
Getting your business ready. Assumes little to no structures or systems are in place. High-priority actions to build business readiness.
Advanced
Understanding impact. Guidance on formalised reporting. Assumes fundamentals and formalised systems are in place.
Expert
Creating positive change. Innovate, lead and fully integrate ESG, including formal reporting and certifications.
A Structured Approach to ESG Action
Whether just getting started or ready to create positive change, the toolkit guides you through six structured steps to build your ESG strategy.
Set Your Ambition
Define your ESG vision and commitment, and understand how they match with your business values and goals.
Establish Your Team
Bring stakeholders, internal and external, on the journey through empowering action, regular communication and inclusion in the review and development of key processes.
Assess your risk
Understand what is material to your business and how this feeds into your actions and priorities.
Gather Your Data
Set your baseline measurements to understand where to prioritise action across environmental, social and governance areas.
Set Your Goals
Know what you want to achieve and by when, setting clear, measurable targets across each pillar.
Take Strategic Action
Use your strategy to develop actions that will direct your resourcing and outcomes across the business.
How ESG Connects to Other Frameworks
ESG builds on and connects to a number of related sustainability concepts that tourism businesses may already be familiar with.
Corporate Social Responsibility (CSR)
CSR is a governance-driven approach that looks at the impact of a business on people.1 ESG builds on this by adding a broader environmental dimension and formalising governance practices alongside social responsibility.
Circular Economy
An economic system aimed at eliminating waste and keeping resources in use for as long as possible.1 In tourism, this means reducing waste, reusing materials and lowering costs — core elements of the Environmental pillar.
UN Sustainable Development Goals (SDGs)
ESG action directly contributes to multiple SDGs, helping tourism businesses align with global sustainability goals and demonstrate their commitment to responsible practice.
ESG Reporting
ESG reporting means sharing meaningful information on environmental, social and governance performance with the right stakeholders.1 It builds transparency, trust and credibility — increasingly expected across supply chains and by investors.
What your supply chain partners may ask for
Someone along your supply chain may ask you to share your ESG performance. Having well-articulated responses with evidence to support your claims is important. This may include:
- Sharing your sustainability policy and/or signing a code of conduct
- Explaining how you minimise your negative environmental footprint
- Providing your carbon footprint including Scope 1 and 2 emissions
- Policies relating to labour (human rights, equity and inclusion) and health and safety
- How you source your materials, products and services
- How you address ethical issues to prevent corruption
Why ESG Is Growing in Importance
ESG is no longer just a large-corporate concept. For small tourism businesses, understanding and acting on ESG is increasingly relevant for four key reasons.
Regulatory Expectations
Some businesses may be required to report on ESG-related matters as legislation evolves, particularly around emissions, climate risk and governance.
Supply Chain Demands
Commercial partners and larger businesses are increasingly requesting ESG information from suppliers — including carbon footprint, labour policies and sourcing practices.
Visitor and Stakeholder Expectations
Customers, investors and community stakeholders expect greater transparency and credible evidence behind sustainability claims.1 Transparency and credibility must underpin all communications.
Business Resilience and Performance
ESG helps strengthen business resilience, improve operational performance and support positive impact — building long-term value for tourism operators.
The 4 C's of Effective ESG Reporting
When you are ready to share your progress, consider these four principles to ensure your ESG communications are clear, credible and impactful.
Concise
Focus on priorities and the most material information. Avoid clutter and prioritise the story you want to share.
Consistent
Reporting won't be a one-off. Allow performance trends over time to be highlighted across reports.
Current
Your report should focus on the current timeframe with insights into your operations as they are now.
Comparable
Use measures aligned to best practice so you can benchmark against peers and your own past performance.
Frequently Asked Questions
Is ESG only for large businesses?
No. This toolkit has been specifically designed for small and medium-sized tourism businesses. It offers guidance across four maturity levels — Foundation, Intermediate, Advanced and Expert — so you can start where you are and build at your own pace.
What does Scope 3 reporting mean for my business?
Scope 3 covers indirect emissions in your value chain. If a larger partner needs to report their Scope 3 emissions, your data may be part of that. Start collecting Scope 1 and 2 emissions, labour policies, sourcing practices and waste data now so you can respond clearly when asked.
How do I communicate my ESG action externally?
When you are ready, share your progress through your website, social media, newsletter or annual report. Only make claims you can support with data, be honest about areas still improving, and ensure transparency and credibility underpin all communications.
Where do I start if I'm new to ESG?
Start at the Foundation level and work through Step A: Set Your Ambition. Write down what ESG means for your business. You don’t need to tackle all three pillars at once — even small, consistent steps build lasting change.
How do I choose a reporting framework?
You choose which standards are most applicable to your business. For small tourism businesses, GRI Standards or EarthCheck benchmarks are pragmatic starting points. Start with what is manageable and build toward more comprehensive frameworks as your data and systems mature.
Ready to take the next step?
Explore why ESG matters for your tourism business and the opportunities it creates.