esg in hospitality

Hotels have a significant impact on the environment and society, from energy and water usage to waste and carbon emissions to employing a large diverse workforce.

Adopting a range of environmental, social and governance (ESG) practices ensures positive outcomes for the planet and people, which ultimately impacts your profits too. As demand for accountability grows, hotels with a transparent strategy in place will be the ones to rise above the rest.

The Companies Act requires large and medium-sized companies to publish an annual strategic report including information on ESG-related items, such as environmental impact, employee disclosures, and social, community, and human rights issues.

Although an individual asset may fall below the threshold for compliance, to be a part of a larger organisation’s supply chain, smaller ones need to provide the same information.

Increasingly, lenders require evidence of robust ‘ESG’ procedures to evaluate the risk level of an asset. This means that within a few years, assets may become ‘stranded’ if, at the point of sale, they are deemed high risk.

Ultimately, ‘dirty’ assets will lose their value as the purchaser has to pay more for financing and take time to introduce their own ESG policies.

In the first year, BGAM Hotels will conduct a hotel ESG report with your local management team. Together, we’ll craft a robust business model that puts more into society, the economy, and the environment than it takes out. The corresponding action plan can also be used towards ISO or B Corp Certification if you’re interested in taking that route.

The hotel ESG report will cover:

• Environment: Identifying and reducing the business impact on the environment
• Society: Team welfare, engagement, purpose, community and our ‘Council of Talent’
• Governance: HR, IT, H&S, Food Hygiene, HMRC