Stakeholder Engagement and Materiality
Stakeholder Engagement Approach
Good stakeholder engagement is critical.
We use the input from our stakeholders to create, validate and improve our sustainability strategy.
Our process to understand key stakeholder issues and identify our priorities follows 8 steps, which we conduct as part of the reporting process:
- Manage and review key stakeholders
- Conduct online and offline interviews of key stakeholders
- Research trends affecting our business
- Review third-party research to understand global mega trends
- Conduct an Internal Risk Assessment (by the MCI Finance Team)
- Assess all identified issues and prioritise critical issues for focus within our strategy (by the Sustainability Team)
- Review, discuss, give feedback and approval (by Executive Management)
- Present findings to key stakeholders for review
Our management team identifies our primary stakeholders as those who have a significant interest in the actions and views of the company, and whose actions and opinions are, in turn, of significant importance to us. We validate our identified stakeholder groups through comparison with our industry peers.
Our stakeholders are clients, talents, suppliers, the meetings industry, shareholders, the community, media, NGOs, governments and regulators.
Summary of Stakeholder Feedback:
Analysing Stakeholder Issues
Our stakeholder engagement process focuses on five key stakeholder groups (clients, talents, suppliers, the meetings industry and the community) that we carry out through various formal and informal methods.
- Online Sustainability Survey of 351 talents
- Online Sustainability survey of 55 key suppliers and partners
- Online Talent Satisfaction Survey 1,420 talents (63% of all MCI talents).
- Evaluations between talents and their managers during their annual appraisal
- Online Sustainability Survey of 20 key corporate and institutional clients
- Face-to-face interaction with clients, suppliers and meetings industry partners
- Face-to-face project meetings
Their input provides critical feedback that is used to help develop our sustainability strategy and this report. After the results of the survey are produced they are shared with the respective stakeholders, and further input solicited. We engage with our Media and Government stakeholders on an adhoc basis throughout the year. Our shareholders are addressed through the management team and the advisory board.
We define issues that are material to MCI as those that:
- Have or may have a significant impact on the company’s finances or operations.
- Have or may have a significant impact on the environment or society, now or in the future.
- Can substantially influence the assessments, decisions and actions of our stakeholders and shareholders.
Impacts of Our Business
With the size and global scale of MCI, there are significant indirect and direct impacts of our business.
- Our 2019 revenue and direct financial impact were almost €442 Million.
- Not only do the events we organise generate revenue for MCI and tax for the governments where we operate, but they also provide a return on investment for our clients while generating indirect income for local businesses. This income helps to create jobs, drive tourism and even accelerate innovation and economic development.
- Taking its wider indirect and induced impacts into account, the travel and tourism sector contributes each year an estimated €7.9 trillion to the global economy and supports over 330 million jobs. This is equal to 10.34% of the world’s GDP, and approximately 1 in 10 of all jobs. 2019 was another year of strong growth (+3,5%) for the global Travel & Tourism sector reinforcing its role as a driver of economic growth and job creation. (Figures published by the World Travel & Tourism Council (WTTC))
- In 2019 we organised over 7,00 live experiences and communication activities across 75 countries, convening 1.6 million participants. Events are highly resource-intensive and can have both positive and negative environmental consequences for the host city and population.
- Our direct environmental impacts are the energy used to power our offices, data traffic and storage, the carbon emissions from this usage and travel.
- Indirectly, if we include our client events in our total footprint, our impacts are Carbon Emissions, transportation, waste, water and energy consumption, food and beverage and materials usage (communication and materials to build brand displays and stands).
- Events bring people together and by their very nature have an impact on our talents, our suppliers, attendees and the communities where we operate. Our social aspects include labour practices, human rights, occupational health and safety, training and education, community citizenship and investment, communication and legacy.
- We believe that by engaging and supporting local communities and international sustainability causes we can leave a positive legacy through education, workshops and collaborations. Looking deeper into local economies, employing local talent, choosing local suppliers and adding a community element in support of local needs will also have a positive impact.
- Since 2010 MCI talents have raised over €14,6 million for community projects. More info
- In 2019, MCI had an indirect contribution of over €5,7 million in pro-bono event management and through the fundraising programmes we organise for our clients.
Operational Risk Assessment
Every year our finance team department conducts a thorough financial risk analysis of MCI. Their goal is to identify and classify our risks.
Our management team reviews these risks and develops strategies to mitigate them. For example, in 2017, we conducted a gap analysis on our data management processes in order to prepare and be compliant for the new General Data Protection Regulation to take place in May 2018. We successfully launched our GDPR awareness campaign mid May 2018. Read more below.
Risk Assessment Process
Our risk assessment process reviews over 90 risks that are divided into 8 areas:
- Business Development
- Governance / structure
- Human Resources (HR)
- Information Technology (IT)
- Laws and Regulations / Compliance
- Reporting control
Key risks identified in 2019:
Lack of data protection (privacy security)
Shift in market needs leaving us with wrong positioning
Loss of reputation or brand value
Risk currency management on offices legal entities
Loss of key personnel / Failure to retain employees
Not taking advantage of MCI unified network
Reinforcement of legislation and regulation (especially in the US)
Inadequate and inefficient contracts with suppliers
Inappropriate merger acquisition process
Discrepancy in delivery execution among offices (quality standards procedures)
Market social instability (political risks, terrorism)
Lack of customer data centralization sharing
Global Mega Trends
Today’s global business environment is more complex, uncertain, volatile and dynamic than ever. Sustainability is one of the key challenges facing the global economy. We see several mega trends that will significantly affect our clients, our business and the meeting industry over the next decades.These six mega trends are inextricably interconnected and interdependent:
Climate Change & Degradation
Unsustainable consumption: 85% of ocean fisheries are over-exploited
Failing ecosystems: 13 million hectares of forest lost annually between 2000 and 2010
Water scarcity: 3x increase in water withdrawals in 50 years. 700 million people face water scarcity today. By 2025, two-thirds of the world’s population may face water shortages
Waste: Over a third of all food produced gets wasted
Hybrid Meetings: Projected to account for over 10% of all meetings in 2016
Digital Age: Facebook – 1.9 billion users, Twitter – 310 million active users, Snapchat – 7 billion video views daily
Mobile Growth: By 2020, 90% of the world’s population over 6 will have a mobile phone and by 2017 over a third will own a smartphone
Health & Safety
Security & safety: Acts of terrorism and increased media exposure are driving stricter security requirements in destinations and events
Wellness of staff and clients
Openness and disclosure: 95% of the 250 biggest companies report their sustainability performance
Stricter national anti-corruption laws: i.e. U.S. FCPA, U.K. Bribery Act, Brazil, China and at least 26 other countries
Push for Transparency: All EU companies with over 500 employees must include sustainability in their annual reporting by 2017
Growth industry codes of conduct: i.e. Health Care
Population Growth: 7.5 Billion rising to 10 Billion in 2050
Urbanization: 50% of global population living in cities rising to 70% in 2050
Rise of the south: Unprecedented growth in Brazil, China, India, Indonesia, Mexico, South Africa and Turkey
Aging population: Out of every 9 persons, 1 is aged 60 years or over. In 2050, 1 out of every 5 will be over 60
Youth unemployment: 30% rise in youth unemployment in developed countries since 2007
Distribution of wealth: 10% of our population owns 85% of global assets