From ESG to Leadership in Sustainability: The Next Challenge for Hospitality

For more than fifty years, the hospitality industry has been building tools to integrate sustainability into operations. Now, after gradually incorporating the concept into our hotels, we can measure almost everything: carbon emissions, water consumption, waste generation, employee turnover, governance structures, transparency in reporting, and even biodiversity and land impact. Entire departments have recently been created around ESG frameworks. Sustainability now appears in annual reports, investment strategies and, overall, in boardroom discussions.

In operational terms, sustainability has never been more structured or more measurable than now. And, precisely because of that—perhaps from a naïve perspective—we might say that the job is done. But it is clearly not. After decades of building these tools, a fundamental question remains: are we leading differently?

Sustainability evolved faster than we realized

Sustainability formally entered the global political conversation in 1972 following the United Nations Conference on the Human Environment (Stockholm, 1972). In just over half a century—within a single professional lifetime—it has evolved from an environmental concern into a quite comprehensive management architecture. What began as environmental awareness progressively integrated social dimensions as essential components, recognizing that in hospitality, people are the business, and, therefore, the social pillar is critical.

At the same time, organizations adapted to the concept of corporate social responsibility, which encompasses ethical and philanthropic responsibilities beyond economic and legal ones.

And what is more, to operate these concepts, companies developed comprehensive ESG frameworks (in line with broader developments promoted by the United Nations sustainability frameworks) that now shape how environmental, social, and governance performance is measured and reported. This marked a non-return point, as sustainability became fully operational.

Today, sustainability influences investment decisions, operational strategies, and brand positioning across the hospitality industry.

In many ways, this evolution has been remarkable. In just a few decades, hospitality has built one of the most comprehensive sustainability management systems in modern business history. And yet, the most significant challenge may not be technical, but managerial—as already reflected in operational practice.

Tools do not lead, but people do

Yes, the hospitality industry has become highly effective and precise in measuring sustainability. In this sector, if something is not measured, it rarely exists operationally; as a result, comprehensive performance indicators and standard operating procedures have been developed around it.

Today, we have tools that can track Scope 1, Scope 2, and Scope 3 emissions; water consumption per guest night can be accurately calculated; recycling rates and waste diversion are closely monitored; and even employee engagement and workplace safety indicators are also measured with increasing precision.

We also communicate much of what we do—although, at times, the message does not reach its audience due to a lack of understanding or expertise. In many cases, image precedes culture, and in this era, image is becoming everything. We recognize this reality; however, metrics alone do not transform industries. They inform decisions, but they do not make them.

At its core, sustainability is a series of decisions: pricing decisions, supplier decisions, hiring decisions, investment decisions, and expansion decisions.

These decisions ultimately belong to leaders, not to a newly created, exposure-focused department, because sustainability fails when it is treated as a department. In many organizations, it sits in a silo, while the decisions that shape destinations are made elsewhere. Sustainability is not only an environmental or social function; it is primarily a leadership function. And leadership is not about reporting impact—it is about deciding impact. That is a critical distinction.

Hotel directors may shape more than a hotel: a destination.

So, if sustainability is leadership, what kind of leadership does it require?

For decades, the role of any hotel director was relatively clear: drive occupancy, control costs, deliver service excellence, and maintain profitability. Those responsibilities remain essential, but the environment surrounding hospitality has changed dramatically. Hotels are no longer isolated buildings within destinations. They are economic actors, but also social actors within complex ecosystems.

The decisions made by hospitality leaders influence local employment, supplier networks, infrastructure pressure, and the overall development of destinations:

• Where hotels invest

• Where brands expand

• Where capacity increases

• Where new markets are developed

These decisions shape the geography of tourism, so hospitality leaders do not simply manage properties; increasingly, they influence the trajectory of entire destinations, and this should be of global interest.

The pressure on iconic destinations is growing

Around the world, tourism destinations are experiencing significant pressure, a trend widely documented by the United Nations World Tourism Organization (UNWTO). Some iconic locations face an overconcentration of visitors due to an “excess of success.” This has intensified housing demand, among other effects, contributing to gentrification and rising living costs for local communities. In many cases, residents are gradually being pushed to the outskirts of major cities because they can no longer afford to live in historic centers, which risk becoming authentic thematic parks for foreigners.

Destinations that were once differentiated by authenticity and cultural identity now risk becoming interchangeable, and when something is interchangeable, they compete primarily on price rather than identity.

As a consequence, in some cities, a clear social resistance to tourism has begun to emerge—not because communities reject hospitality itself, but because the pace and scale of development have outgrown local infrastructure and community acceptance.

This represents a critical shift. What is sometimes described as “anti-hospitality” is not anti-hospitality at all; it is a signal. And signals should matter to leaders.

These signals show that the growth of tourism pressure is no longer limited by demand alone, but also by social legitimacy—a factor not always considered in tourism planning. For tourism to remain sustainable in the long term, communities must perceive it as beneficial.

This changes the role of hospitality leadership. Hotel leaders are no longer managing occupancy alone; they are also managing trust.

Sustainability is not compliance

One of the most common misunderstandings about sustainability in hotels is that it is primarily about compliance. Compliance is reactive; it asks a reactive question: What must we do to avoid penalties or meet regulations?

Sustainability, by contrast, asks a far more strategic question: What kind of future are we building?

The difference is fundamental. Compliance produces checklists; leadership creates direction.

Similarly, sustainability cannot exist purely as a marketing narrative. Guests are increasingly informed, and communities are increasingly attentive. Reputation today can shift quickly. When sustainability is treated primarily as communication rather than decision-making, it eventually becomes exposure.

Growth is not neutral

In hospitality, growth is often celebrated as unquestioned success. However, growth is never neutral; where development occurs matters.

If expansion concentrates exclusively in already saturated destinations, it can accelerate pressure on infrastructure, housing, and local communities.

By contrast, when growth is directed toward emerging destinations, it can help distribute tourism more evenly, supporting economic development while avoiding excessive concentration. Sustainability is no longer only about minimizing negative impact, but also about determining where to create positive impact. It is also about deciding who benefits from tourism.

Investors? Employees? Communities? Future generations? Sustainability is, ultimately, about deciding who wins.

Hospitality leaders play a crucial role in these dynamics. Every time a hotel director chooses local suppliers, invests in local talent, and designs experiences rooted in local culture, they help ensure that tourism value circulates within destinations rather than being simply extracted from them.

From General Manager to ecosystem conductor

Sustainability should be treated as a conscious decision and a strategic capability—something that can be shared, believed in, and transmitted, like part of a legacy or, why not, “a way of life”.

The role of hospitality leaders is gradually shifting—from managing properties to orchestrating ecosystems. This includes building local partnerships, strengthening community relationships, and positioning destinations for long-term resilience. It may also require a broader perspective than traditional operational management alone.

Leadership in hospitality today involves thinking not only about immediate performance, but also about long-term territorial impact.

The question every hospitality leader should ask

After decades of progress in sustainability frameworks and reporting systems, the most important question facing the hospitality industry may be surprisingly simple:

What kind of destination will my leadership leave behind?

Sustainable destinations are not built solely through regulation.

They are built through leadership decisions made every day in hotels, resorts, and tourism businesses around the world.

The tools already exist. The frameworks already exist. The real challenge now lies in how leaders choose to use them.

Because ultimately, sustainability is not about reporting impact. It is about deciding impact.

And those decisions belong to leaders. Those decisions belong to us.