ESG a Buzzword ?
(Environmental, Social, and Governance) in hospitality is both a buzzword and a real application, driven by a mix of legislation, investor pressure, and consumer demand.
Hotel Industry Adoption
• Major brands (Marriott, Hilton, Accor, IHG, etc.) have ESG strategies focused on carbon neutrality, waste reduction, and social responsibility.
• Sustainable certifications like LEED, Green Key, and EarthCheck are becoming industry standards.
• Supply chain pressure is growing, with hotels demanding sustainable products from suppliers (e.g., linen, amenities, food sourcing).
• Technology adoption includes energy-efficient systems, smart sensors for air quality, and digital guest engagement to reduce waste.
Challenges and Greenwashing Risks
• Some hotels engage in “greenwashing” by making superficial ESG claims without substantial impact.
• Implementation costs can be high, making adoption slower for independent hotels.
• The lack of universal ESG measurement standards leads to inconsistencies in reporting.
Conclusion
ESG in hospitality is not just a buzzword—it has real implications due to regulations, investor scrutiny, and consumer demand. However, challenges remain in implementation, cost, and greenwashing. The future will likely see more mandatory compliance, stricter standards, and technology-driven solutions for sustainability.
Pascal DiNoia ©️2025
1 big quote: “Sustainability factors are now in the mainstream of investment decision-making and the International Sustainability Standards Board (ISSB) standards are in the process of being adopted or used by 35 jurisdictions globally.” — Corey Walrod, ISSB technical staff at the IFRS Foundation
— Patrick Whyte, editor-in-chief of Hospitality Investor
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