“Diddling with the details, arranging the deck chairs on the Titanic” [1] -Donella Meadows

Leverage Points: Where Metrics Fail and Systems Thrive

I will use Donella Meadows’ work on Leverage Points [1] to explain some of the issues with hospitality’s sustainability KPIs.

Pushing levers at the lowest levels of systemic power

Many sustainability metrics operate at the lowest levels of systemic power: parameters and numbers. These are easily gamed (see Goodhart’s Law) and often ignore critical interdependencies (e.g., a “zero-waste to landfill” hotel sourcing from food from distant, deforested regions). This demonstrates how a narrow KPI can obscure the larger systemic picture. We’ve seen this problem in action with the many issues pertaining to achieving "carbon neutrality" through offsets already [2].

To complement or enhance traditional KPIs, we need approaches that consider higher leverage points:

Considering the higher leverage [see 1]

  1. Feedback Loops:
    • Instead of just reporting, implement systems where negative impacts trigger corrective action. If any consumption KPI spikes, automatically initiate a review of usage patterns and implement corrective measures.
  2. Goals:
    • The hospitality sector’s goal remains growth with pipeline reaching historic levels [2], not regeneration. A hotel tracking "biodiversity net gain" (focused on ecosystem health) offers a stark contrast to one solely focused on "occupancy rates" (focused on extraction).
  3. Paradigms:
    • Challenge the underlying belief that nature is merely a resource. Metrics should reflect interdependence. Consider measuring "local community well-being" or "ecosystem health of surrounding areas" rather than just "guest satisfaction scores" or "revenue per available room."

Mandating only 3 KPIs – not easy…

  • Local Ecosystem Health & Regeneration Index: This would go beyond simple impact reduction to measuring active contributions to biodiversity, soil health, and water quality in the surrounding environment. It addresses the "Paradigm" leverage point.
  • Circular Resource Flow Rate: This metric would track the percentage of materials used that are truly circular (reused, recycled, or composted locally) and the reduction in virgin material input, moving beyond just "waste diverted from landfill." This speaks to "Feedback Loops" and resource efficiency.
  • Community & Employee Well-being Index: This would holistically assess the positive social impact on local communities and the well-being of staff, considering factors like fair wages, local employment, and cultural preservation. This elevates the "Goals" of the business beyond purely financial ones.

Ultimately, the real leverage lies not in better metrics, but in metrics that make ‘better’ obsolete.

References:

[1] Meadows, D. (1999). Leverage Points: Places to Intervene in a System. The Sustainability Institute, p. 6. https://donellameadows.org/wp-content/userfiles/Leverage_Points.pdf

[2] New Climate Institute. (2024). Joint Statement: Why carbon offsetting undermines climate targets. https://newclimate.org/news/joint-statement-why-carbon-offsetting-undermines-climate-targets

[3] Lodging Econometrics. (2025). The Global Hotel Development Pipeline Reaches Historic Milestone with over 15,800 Projects at Q4 2024 Close. https://lodgingeconometrics.com/global-hotel-development-pipeline-reaches-historic-milestone/