by Mia Taylor
Last updated: 3:20 PM ET, Tue January 16, 2024
While its incumbent on the travel industry to make progress in becoming more environmentally and socially responsible, achieving that goal is not necessarily without its challenges.
New Environment, Social and Governance (ESG) research conducted by Kings Business School in partnership with the Energy & Environment Alliance (EEA) underscores this reality, particularly within the hospitality industry.
The research engaged 250 hospitality leaders worldwide, all of whom shared thoughts on ESG issues and the key takeaway from the effort was that there are multiple concerns around the implementation of ESG measures, as well as regional differences in priorities.
Several barriers to progress on the ESG front were identified by survey participants, including:
- The proliferation of different reporting standards for ESG efforts
- Stakeholder scepticism and lack of engagement with ESG
- Concerns over the reaction of guests with regard to ESG measures
- Lack of skills and knowledge both within the industry and among potential advisors
For instance, one research participant commented as part of the survey: Its hard to measure and compare performance and assess value. This makes it complicated to align key stakeholders and to convince others with an appropriate calculation on payback.?
Whats more, a significant 73 percent of leaders who participated in the survey identified reporting and benchmarking as one of the top three areas that they would like to see more ESG education for the hospitality sector C-suite.
Other survey participants, meanwhile, raised the issue of conflicting priorities among the hospitality industrys stakeholders. To that point, one survey interviewee said: Most hospitality brands are focused on guest satisfaction and dissatisfaction, not looking at sustainability.
Additionally, many leaders shared concerns about at the quality of ESG advice that's currently available to them. Its sometimes difficult to find the right advisors who are knowledgeable and able to help companies think holistically, as opposed to focusing on a certain subject or on certifications or labels, said one research participant.
The research also revealed that there are regional differences in priorities when it comes to ESG implementation with European leaders emphasizing energy related initiatives more than peers who are located in other regions.
Leaders in the sector are well aware of the urgency of ESG questions and are clear that a common approach to tackling and reporting on ESG issues will be a major driver of change, Ufi Ibrahim, chief executive of the Energy and Environment Alliance, a not-for-profit coalition of hospitality
investors, developers, asset managers and operators, working to transition the industry to Net Zero Carbon and ESG
stewardship.
Building a rigorous understanding of the issues and potential solutions across the industry is a critical part of that change process," added Ibrahim.
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