Hospitality, a Force for Good

My vision of sustainable hospitality - ’50 Shades of Green’

We have a little less than 10 years left to make sure climate change and global warming is not irreversible above the 1.5C overall increase-that is tight deadline for us all to reach!

But having just witnessed 6 months of the most unprecedented amount of changes in policies, behaviour, financing and out-of-the-box thinking, due to another crisis, I am more positive than ever that we can make this work, we can reach our goals.

So let’s re-cap on the facts: According to the IPCC (Intergovernmental Panel on Cllimate Change) we have to reduce our Co2 emissions between 45-50% by 2030 so it is the task of the entire world population to cut emissions in by approx. 7% a year, in order make carbon net zero feasible by 2050. Why? As this is currently the only way to stop global warming turning live on this planet unsustainable for mankind and most other species.

And despite the abrupt halt to most travel in particular flights in 2020 due to the Covid-19 crisis, the prediction is that 2020 will see an overall reduction of possible only 6% of global Co2 emissions. But as we all know we cannot stop all economic activity perpetually in order to reach our goal, as our livelihoods depend on those too.

However there are a couple of lesser known facts about global emissions, which also need to be taken into consideration. Namely that our digital behaviour, i.e, all the energy needed to power all our devices which have now become such an integral part of all our lives, has with 3,7% of global emissions (pre-Covid) already overtaken air travel emissions. And that was even before the whole world switched to using Zoom, Teams and Skype for remote working and meeting. So imagine the jump 2020 is going to bring with it!

Nevertheless, that does not mean we as an industry, in particular the hospitality sector cannot be a force for good when it comes to achieving Carbon neutrality, adding value to our companies on an ESG* level, particularly now as we have the opportunity to correct past mistakes to #buildbackbetter *ESG= Environmental Social Governance

So how does all of this affect us- as hoteliers, in our daily business of making people happy, making people smile and giving them an unforgettable experience?

My answer is always: in a huge array of areas and topics- hence my motto of ‘50 shades of Green’ as you can make a difference with so many little things and added up the sum can end up being huge!
I am most probably going to risk repeating a lot of things some of my esteemed fellow HotelierGuild sustainability experts have already told you, but here we go:

No1 - of course is our resource consumption on-site at property level, in particular energy consumption, which is usually after staff cost the 2nd biggest spend a hotel has. Therefore, there is not only a huge environmentally argument to be as energy efficient as possible at your hotel but above all there is an economic one. And in these times of economic hardship this should be enough to convince any hotelier to address this issue sooner rather than later. Starting with efficient BMS systems, to smart meters, to energy production on-site, proper isolation with green walls or roof gardens (as they have the positive side effect of also offering more biodiversity and natural habitats for your surroundings) to lighting, proper waste segregation, etc etc. Again, the good news is that there are plenty of companies out there offering fantastic financing models for any hardware investments, eliminating the need for up-front investments as the payments get reduced from savings made, so the ROI here can be anywhere between 2-7 years. We also highly recommend to track all your resource consumption in an effective and efficient way by using a data monitoring system as this gives you more control, transparency and helps with any reporting on progress for needed regulatory or financial reporting, also with investors. Additionally it helps with any certification process you might have chosen to undergo- data is becoming increasingly important.

No2 - Staff- this has various aspects to it. A- you want to ensure you address sustainability from a social and governance aspect as much as from an environmental impact one too. It has been proven that there is less staff-turnover when a hotel or hotel company is serious and dedicated to living sustainability within its walls, with a coherent CSR strategy and transparent reporting on all material topics. As this will always integrate the staff and give them ownership of the process, therefore increasing their loyalty to a brand or hotel. B- without behavioural changes led by your team many of the measures you will need to implement in order to achieve strategy goals will not be able to be reached. Therefore a myriad of measures starting from training, workshops, KPIs related to your goals, as well as incentives are called for here. Plus, I think we have all understood how important social issues have become during the last few months, so looking after your staff and understanding that a solid sustainability strategy will always also include solid HR policies has become more important than ever.

No3 - Suppliers and your supply chain overall. This also addresses an incredibly amount of issues when it comes to sustainability. Obviously if we are looking at Co2 emissions in particular we all know that the more local we procure the better as there are less Co2 emissions from transport of goods added to our supply chain. But then there are also other factors to take into account, such as production processes, employment policies of our suppliers (i.e. are they paying their workers fair salaries and are there fair working conditions), usage of resources in production, in particular when it comes to water, the ingredients used, packaging and ultimately a supplier’s willingness to also improve on their practices. Consequently, having an active, on-going and open dialogue with all of your suppliers is key to making progress on reduction of emissions and again to achieving any sustainability goals. I was immensely proud when I was told by one of our clients’ procurement department only recently that their counterpart at Danone SA had commented on how positively impressed they were with the questions we had been asking them on their endeavours to reduce single-use plastics! It really does make a difference to have these conversations. Additionally you can have so much fun developing new sustainable products together with your suppliers as it is one of the most rewarding and satisfying experiences when the end product is a win-win for all parties, including the guests who will benefit from the usage.

No4 - Your guest and your community. Having an honest and open conversation with your guests on this is vital- they are educated travellers and are generally very aware when it comes to sustainability these days, so do not attempt to greenwash by promising measures you are planning to implement but have not even started. A good intention has not yet convinced anyone! Sustainability is a journey and not something you achieve in a day, a month or a year, things evolve, technologies chance, so do legislations and many other aspects, it is therefore key to communicate to your guest where you are on that journey, as long as you have embarked on it. And your communities, i.e. the people in the locations where your hotel is situated are a key element to all of this too, as they share the same environment you operate in and will not only want to know about your efforts to make a positive impact but can also be taken along on this journey, potentially you can teach them some things and they will be able to also show you areas you might not be engaged in yet- again, another win-win situation. Plus having a solid community relationship will imbed your property in the local economy and make it more risk adverse too!

As you will have noticed those four key elements I outline above are all multi-layered and will end up being approximately 50 shades of Green if you add them all up!

There are of course a thousand different ways of addressing these, be it by embarking on a tracking & certification process with someone like ‘It must be Now & Earth Check”, a local certification programme of your country such as GreenSign in Germany, opting for a reporting framework either with the UN Global Compact, or GRI or reporting according to Science Based Targets, or by integrating all of the UN’s Sustainable Development Goals into your operations or some other way. Whatever you chose, it is just important you do something as all of the above adds value to your company and its offering.

I myself with my company and together with my business partner, Benedetta Cassinelli, have made it our mission to serve the hospitality sector by optimising the value that becoming a more sustainable company will bring. We endeavour to be at the forefront of sustainable advisory by driving behavioural change and by developing innovative technology solutions to support these processes with data.

Our company now having reached critical size, we felt it was the right time to undergo a certification process of our own to demonstrate our sustainability credentials to the world and are therefore delighted to have just been awarded the BCorp Certified status.

Having built a highly motivated team of skilled sustainability experts with hospitality background to support our clients, we are all passionate about travel and we are passionate about maintaining this planet as a liveable environment for all species including ourselves, in all of its beauty and facets.

Xenia zu Hohenlohe

Managing Diector Considerate and Group Chairlady LeadingHôtelières

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Heleri Rande in conversation with Maria Velez