Sustainability
relevance and great storytelling are critical success factors in inspiring change.
Multi-speed sustainability While bold approaches can clearly work for new brands or niche players, when it comes to long- established hotel ‘majors’ with multiple brands – Accor, Hilton, IHG, Marriott, for example – there are few one-size-fits-all solutions that can be adopted across every territory in which they operate due to the implications for brand standards and/or capital expenditure for the owner.
A simple example is renewable energy. The business case for solar panels is going to be higher for hotels located where sunlight is more plentiful. Or consider building performance of the world’s ‘grande dame’ hotels. Building codes are typically strict for historic buildings, and may prohibit visible solar panels, double glazing or insulation that impacts the look/fabric of the building. Improving energy performance for these assets is challenging. That said, the urgency of the climate crisis is stimulating innovation across the real estate industry and creative solutions are emerging. For example, the InterContinental Bora Bora Thalasso Resort and Spa uses sea water air-conditioning, pumping cold water from a depth of 3,000ft for its air-conditioning system. This replaced the need for expensive and environmentally damaging imported oil and reportedly generated a return on investment within seven years. Conversely, in urban destinations, district heating systems are gaining traction and can offer more sustainable heating/cooling systems for operational real estate.
Of course, the local regulatory environment will impact the speed at which ESG solutions are implemented. New initiatives such as the EU’s Corporate Sustainability Reporting Directive will have a far-reaching impact on hotels located in the bloc regardless of where the operator is domiciled. Governmental commitments (often enshrined in law, as they are in the UK, for example) towards ‘net zero’ CO2 emissions will also have a significant effect in countries where they are in place.
At least we’re on the journey If the practical examples I’ve given highlight how difficult it is to take a universal approach to sustainability, at least be encouraged that many industry stakeholders have now set out on their journey. Nevertheless, we also need a dose of realism. The climate data is unequivocal: we are suffering from an over-heating world. The priority is to reduce emissions more rapidly. Measurement capabilities are crucial, for two reasons: a) we can change what we measure; and b) we can stay one step ahead of reporting regulations, which will only increase.
Hotel Management International /
www.hmi-online.com 37
If we aim to measure everything we can (including items not previously captured), we shall have the raw data to create whatever reports/metrics become required by regulators. For that, we will need to develop and implement the right technology, while also training people to analyse data, interpret results and create change strategies to reduce asset and operational carbon intensity.
This will translate into value over time, especially if we move to some form of carbon pricing regime. The onus will fall on investors and owners to act to protect the value and saleability of their assets. Methodologies, tools and tech are all emerging to support this growing reporting need and these will differ by stakeholder. For example, the Hotel Carbon Measurement Initiative supported by industry body the Sustainable Hospitality Alliance can generate reports on the carbon intensity of a conference or meeting. Being able to provide such data to clients for their own ESG reporting is expected to become an RFP condition for some corporate accounts. ●
Above: At Fogo Island Inn, revenue is allocated across multiple categories, including labour and supplies.
Below: At Thalasso, sea water air-conditioning pumps cold water from a depth of 3,000ft for its air-conditioning system.
El Kozhani/
Shutterstock.com; InterContinental Bora Bora Thalasso Resort and Spa
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