What are ESG criteria and why are they important for your hotel?

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April 17, 2024

Roiback

Content in collaboration with our partner Bioscore Sustainabilitysustainability consultancy for tourism companies.

In today's hotel industry, sustainability and social responsibility are no longer options, but imperatives. Today's travelers are increasingly aware of the impact their choices have on the planet and local communities, and are looking for hotels that share their values. This is where ESG criteria come into play.

From reducing carbon emissions to promoting labor equity and transparency in management, ESG criteria are the beacon guiding hotels towards a sustainable future, where profitability is inseparably intertwined with social and environmental responsibility.

What exactly are ESG criteria?

ESG criteria are a set of standards that companies use to evaluate their performance in key areas related to the environment (Environmental), social aspects (Social) and corporate governance practices (Governance). These criteria refer not only to a company's internal practices, but also to its impact on society and the environment in general.

Environmental: Includes aspects such as waste management, energy consumption, water efficiency, biodiversity conservation and reduction of greenhouse gas emissions.

Social: Refers to the management of employee relations, diversity and inclusion, fair labor practices, occupational health and safety, as well as relations with local communities and stakeholders.

Governance: This encompasses issues such as transparency in management, business ethics, board independence, risk management and integrity in decision making.

Why are ESG criteria important for your hotel?

There are many reasons why ESG criteria are important for your hotel:

  • Attract and retain guests. Travelers who care about sustainability and social responsibility are more likely to choose hotels that demonstrate an active commitment to these principles.
  • Enhance your hotel's reputation. Good ESG performance can enhance your hotel's reputation and differentiate it from the competition.
  • Reduce costs. Implementing sustainable practices can help reduce operating costs, such as energy and water consumption.
  • Manage risks. Risks related to climate change, resource scarcity and social instability can negatively affect companies that do not take them into account.
  • Access investment opportunities. Investors are increasingly looking for opportunities in companies with good ESG performance.

How can your hotel integrate ESG criteria?

Adopting ESG criteria is not a titanic task, but a gradual process that requires commitment and strategic planning. Here are a few

  • Reduce energy and water consumption. Implement energy efficiency measures, use LED light bulbs, install energy-efficient faucets and showers, and encourage guests to use water responsibly.
  • Minimize waste generation. Separate and recycle waste, compost food scraps, use environmentally friendly cleaning products and reduce the use of disposable packaging.
  • Sourcing local and sustainable products. Support local suppliers and choose products with sustainability certifications.
  • Improve working conditions. Offer fair wages, training opportunities, a safe and healthy work environment, and promote diversity and inclusion.
  • Engage with the local community. Support local charities, participate in community development initiatives and promote local culture among guests.
  • Be transparent and communicate ESG commitment. Inform guests about the hotel's sustainability initiatives, publish an annual sustainability report and participate in ESG rankings and certifications.

Integrating ESG criteria into your hotel's strategy is not only the right thing to do for the planet and the community, but can also bring long-term economic benefits.

Becoming an ESG hotel is an ongoing journey that requires commitment and effort, but the potential benefits are significant.

At Roiback we are committed to helping hotels integrate ESG criteria into their operations. Integrating ESG criteria into a hotel's business strategy is not only an option, but a necessity to ensure its competitiveness and relevance in today's market.

Those hotels that are able to adapt to this new reality and embrace the principles of sustainability, social responsibility and good governance will be better positioned to thrive in the future and contribute to building a fairer, more equitable and planet-friendly hotel industry.

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