A Check-in on the Hotel Sector’s ESG Initiatives

Thought you might be interested in an article about the hotel sector’s ESG initiatives and thought I’d share a few points with you here. I’ve found some relevant information here so if I find more, I’ll be sure to pass it on.

"Hotel companies begin to set ESG goals.

The COVID-19 pandemic accelerated the urgency for companies and individuals to act to protect the wellbeing of the planet, their communities, their employees, and in the case of hotels, their guests. As such, environmental, social and governance (ESG) initiatives have accelerated.

The hotel industry’s commitment to ESG initiatives, while somewhat nascent, is increasing. Rising energy costs, which have increased electricity costs by 10% since May 2021, are likely to accelerate the industry’s focus on sustainability, particularly given the shift in traveler preferences toward more sustainable tourism and green accommodations and the growing demand for disclosure around climate risk. Although Russia’s invasion of Ukraine, which has exacerbated energy price hikes, might motivate hotel operators to invest in long-term environmental upgrades, higher interest rates and sharply declining equity prices may offset this positive momentum, at least in the near term.

(E)nvironmental

According to the Sustainable Hospitality Alliance (SHA), to keep pace with the targets outlined in the Paris Agreement, the global hotel industry needs to reduce carbon emissions per room per year by 66% by 2030 and 90% by 2050 (SHA, 2017).

(S)ocial

Developing a workforce, franchisee base and supplier network representing diverse populations and assuring equity and inclusion of all stakeholders has become a priority for many hotel companies. Social concerns also encompass issues related to guest and employee wellness and labor practices, as well as training programs that prevent human trafficking and human rights violations.

(G)overnance

Governance issues include board diversity, company ethics, transparent reporting on the environmental and social goals, and clear executive compensation guidelines."

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