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SPOTLIGHT

Inside FCM’s approach to responsible supply chains 

Our supply chains are global and complex. That’s the reality of operating travel at scale, with more than 50,000 suppliers across airlines, hotels, transport providers, and non-travel services. So, the question isn’t if risk exists in a supply chain of that size. It’s how seriously it’s taken, and what is being done about it. 

For FCM Travel, and our parent company, Flight Centre Travel Group (FCTG), that responsibility sits at the center of how the business operates. We spoke with Michelle Degenhardt, Global Sustainability Officer, Flight Centre Travel Group about how human rights and responsible supply chain practices are embedded across the organization. 

The scale of challenge  

According to the Walk Free Global Slavery Index, there are an estimated 49.6 million people living in conditions of modern slavery worldwide. Given the travel industry’s global reach and reliance on labor-intensive services this means exposure to these risks is real.  

FCM’s supplier network spans multiple categories, from airlines and hotels through to facilities management, security, and technology providers. Each of those categories carries its own risk profile. Some regions carry more. 

What ESG looks like at FCM 

At FCM, ESG is not owned by a single team or treated as a standalone initiative. It’s embedded across the entire company. “Sustainability, human rights, and governance are a core part of how we operate globally and considerations are integrated into how we plan, procure, and make decisions each day,” says Michelle. “These consistent global frameworks help us uphold our standards across all markets.” 

Priorities actively shape partner selection, supplier expectations, and the way customers are supported. “It directly influences who we choose to work with and support and there’s a clear focus on responsible, transparent, and sustainable supplier practices across the board,” said Michelle.  

What steps we take to mitigate risk 

“We’ve put a lot of focus into strengthening visibility across our supply chain,” Michelle explains. “That includes enhanced screening, supplier monitoring, and equipping our people to recognize and respond to modern slavery risks.” 

 

Supplier mapping

Last year, FCTG consolidated and categorized 73% of global product spend across six categories - air, hotel, car and transfers, tour and cruise, insurance, and other. Providing a foundation for targeted due diligence amongst each category and region.

Supplier screening

Credential screening of the top 1,000 global suppliers, representing 70% of total indirect spend and 56% of total product spend, is conducted quarterly through Givvable, an automated screening platform. Third-party data, certifications, ratings, accreditations, and programs are assessed to pin point alignment with FCTG responsible procurement objectives.

Employee training

Every FCM employee globally completes mandatory modern slavery awareness training, covering definitions, risk indicators, reporting mechanisms, and individual accountability. Annual Code of Conduct training includes dedicated modern slavery modules, and executive briefings to ensure governance-level oversight.

Behind the scenes, global policies, whistleblower channels, and defined escalation pathways all play a role in identifying and responding. 

Photograph of Manhattan skyline at sunset with golden light and scattered clouds

Industry collaboration  

No single organization can solve systemic issues. Progress relies on collaboration. “Collaboration is essential. We work closely with industry bodies and partners to lift standards and drive collective impact on issues like modern slavery,” said Michelle. This includes our founding membership, alongside our friends at Intrepid Travel, and Co-Chair role with the Australian Travel Industry Association (ATIA), Modern Slavery Collaboration (AMSC) program. “The program aims to share best practices, develop industry-specific guidance tailored to travel supply chains, coordinate collective impact, and raise standards across the sector,” says Michelle.

What’s next  

We’re proud of what we have achieved, but there is always more to do. “We see clear opportunities to improve supply chain visibility, expand customer reporting, and continue building internal capability,” Michelle says. “Partnerships will also play a key role, particularly in supporting decarbonization and human rights outcomes.”

Planned actions over the next two years include:

  • Revising the Supplier Code of Conduct to shift away from “zero tolerance” language, towards more deliberate collaborative, trust-based partnerships that encourage proactive reporting.
  • Implementing a risk-based supplier assessment framework, targeting suppliers in higher-risk regions as defined by the Global Slavery Index.
  • Piloting a third-party risk management (TPRM) solution to strengthen supply chain transparency and risk detection.
  • Enhancing employee and external training content with practical guidance and clearer reporting pathways.
  • Improving awareness and accessibility of reporting channels across operations and supply chains.
  • Transitioning from initial once-off screening to more continuous supplier monitoring.

“There’s also a clear-eyed view on reporting. In the past we have had low reporting volumes, but we must acknowledge this number doesn’t automatically mean low risk. This could point to gaps in awareness or accessibility,” added Michelle. “And we need to address that by improving awareness and accessibility of reporting channels across our own operations and supply chains.” 

What all this means for customers 

For procurement teams and travel managers, supply chain responsibility is part of everyday decision-making. Partnering with a travel management company means becoming part of its supply chain, along with the risks and responsibilities that come with it. 

“We take a proactive approach to responsible business practices,” Michelle says. “Our systems, governance, and continuous improvement mindset are designed to support our customers’ ESG expectations and manage risk in a transparent way.”

Explore our broader ESG commitments here.