Less talk, more action - Implementing ESG in Hospitality

Regulation is coming down like an avalanche, planning authority policies are changing, capital expenditure is needed, guests are much more environmentally conscious, and hotels need to be operated more efficiently to reduce energy, water and waste consumption.

Commitment to sustainability is on the rise with $3.9 trillion in sustainable fund assets recorded under management, according to Morningstar as of Q3 2021. Europe leads the way, with 88% of global sustainable fund assets held in the region, followed by the Americas and Asia Pacific.

There is regulation coming down like an avalanche, planning authority policies are changing, capital expenditure is needed, guests are much more environmentally conscious, and hotels need to be operated more efficiently to reduce energy, water and waste consumption. Whether you are valuing an asset or acquiring an asset, stakeholders can no longer hold back. What’s more, there is technology out there to help deliver many of these goals.                       

Despite action being taken with Europe leading the way however, there appears to be a lack of clarity on how to become more sustainable and reach NZC. Owners, investors and hotel brands are all talking about sustainability, but yet to find an overall common ground and come together as an industry to tackle the issue head on. Ultimately, all stakeholders are aware that sustainability risk is an investment risk and understand that this is real, and action needs to happen. So now it’s time to talk less and start to see some action.