Importance of Environmental, Social and Governance (ESG) in the Hospitality Industry Today

Sustainability is being incorporated into not only the industry’s overall design strategies but also in day-to-day operations, including the implementation of practices and programmes that will help reduce hospitality’s carbon footprint

Written for ET Hospitality World.com from the Economic Times

Both investors and travellers are increasing their awareness and taking note of companies environmental, social and governance (ESG) practices. For investors they are incorporating these facets into their overall asset decisions, while travellers are actively seeking out and booking more sustainable travel options. Due to this increase in demand, the hospitality industry’s implementation and adoption of social, ethical and environmental responsibility has been accelerated and is changing the industry in a variety of more positive and sustainable ways. Sustainability is being incorporated into not only the industry’s overall design strategies but also in day-to-day operations, including the implementation of practices and programmes that will help reduce hospitality’s carbon footprint.

Referencing the UN’s sustainable development goals is an excellent resource and reference for building a strong social responsibility programme. It is critical today to integrate diversity, equity, inclusion, environmental sustainability, human rights and community support into the core of one’s business. At Wyndham Hotels & Resorts we are committed to continue operating sustainably in a way that provides outstanding experiences that are socially ethically and environmentally responsible.

Below are some of the key elements of ESG and how they pertain to the hospitality and hotel industry today:

Energy and Emissions: Hotels are encouraged to evaluate opportunities to increase efficiencies and usage of renewable energy where feasible resulting in significant reduction in carbon emissions. LED lights and energy management systems are commonly used today for automatically putting rooms in sleep mode when not occupied or in the back of house like kitchens and use heat exchangers.

Sustainable Sourcing: As the primary sourcing categories include operating supplies, furniture, fixtures, food and beverage, technology and other ancillary services hoteliers should seek suppliers committed to sustainability and align their supplier’s commitment to environmental, social and governance issues.

Water: Incorporating water recycling into the design of the hotel and its operations helps reduce the use of water for operating hotels. It’s recommended to install low flow fixtures and implement water conservative laundry programs and irrigation control where possible.

Waste: Many hotels have started recycling used soap bars to divert waste and improve the quality of lives in those communities lacking resources for water, sanitation, and hygiene. Mandatory recycling, single use plastic minimisation, foam and plastic straws banned are all important initiatives.?

Diversity & Inclusion (D&I): Diversity is not about doing the right thing- it’s a business and customer responsibility. Travel enables people of various backgrounds to connect and learn different cultures, in the same way we can raise our understanding and appreciation for one another at work. D&I training should be provided as standalone sessions and incorporated at all leadership levels.?

Governance: The Board thru a Corporate Governance Committee are generally responsible for overseeing ESG, corporate security and business continuity if any event occurs for the team to proactively take measures to minimise impact of the event. The privacy and information security should be in line with emerging legal, technical or other risks.?????

At Wyndham Hotels we are proud to be one of the world’s leading hotel companies and a member of Sustainable Hospitality Alliance which works towards building a more sustainable and inclusive future for the planet and its people. The Alliance uses the collective power of our industry to deliver impact locally and on a global scale, to improve the industry response to the growing challenge of sustainable hospitality.?

Organisations need to commit to protecting the environment in which we live, work and enjoy. As part of our strategic vision of fostering a value driven culture at Wyndham, we understand it is essential to protect our natural capital and resources to deliver long term sustainable value.

The evolving elements highlight the resiliency of the hospitality industry and its ability to adapt and grow with changing demands. As we continue to navigate this new era of travel, new travel trends will emerge that will assist in elevating the guest experience, as well as support in creating a more sustainable hospitality industry.

?

?

?

?

?