Embodied Carbon Reductions: Hospitality Industry's Untapped Climate Opportunity
It's become essential for ESG reporting to include quantitative data that shows tangible progress in environmental and social areas. Hotels are uniquely positioned to not only contribute significantly to the reduction of global carbon emissions but also to benefit from more favorable capital conditions, enhanced asset valuations, and an increased market share.
The disruptive impacts of climate change are being felt in every corner of the globe, and the hospitality industry is no exception. It’s not a hyperbole to suggest that the world’s estimated 187,000 hotels (representing roughly 17.5 million guest rooms) are at risk from the growing climate-related instability. Extreme weather events like wildfires, hurricanes, drought, and extended heat waves are affecting tourism and increasing operational costs. Further, climate-related supply chain disruptions are increasing risk across the industry. No location is immune to the effects of the changing climate.
As a result, the evaluation of risks associated with climate change are impacting hotel industry investment practices. Financial institutions, investments funds, and other sources of capital funding the design and construction of hotels are incorporating climate-risk into their evaluation criteria, impacting the cost of capital and valuations.
HYB 2024 Hospitality ESG Edition
The global hospitality sector is at a crossroad when it comes to implementing sustainability. Consumers demand trustworthy information while regulators and investors expect transparent disclosure on sustainability performance. Owners, brands and managers aim to mitigate the sector’s footprint thus reaping the financial and reputational benefits. Industry players that fail to adopt a sustainability strategy or fall short in the implementation stage may struggle to remain competitive in the long term. Industry experts and researchers identify key areas where sustainable innovation can have the greatest impact, developing new technologies and solutions to address sustainability challenges, and creating policies and incentives that encourage the adoption of sustainable practices. The HYB 2024 Hospitality ESG Edition aims to unlock the sustainability innovation stack by highlighting the range and interconnectedness of sustainable technologies, systems, and practices that can be combined in a holistic way that creates a more sustainable hospitality ecosystem.