A significant study carried out by King’s Business School and the Energy and Environment Alliance involved more than 250 global hospitality leaders who provided their insights on environmental, social, and governance (ESG) matters. The findings from this research have been used to create an ESG Executive Education Hospitality Programme for top-level executives in the industry. The program is now accepting applications for its second group of participants.
Among the barriers to progress and investment identified
- The proliferation of different reporting standards,
- Other stakeholders’ skepticism and lack of engagement with ESG,
- Concerns over the reaction of guests and
- A lack of skills and knowledge both within the industry and among potential advisors.
A research participant expressed the difficulty in measuring and comparing performance, as well as assessing value. This complexity makes it challenging to align key stakeholders and convince others with a suitable payback calculation. According to the survey, 73% of leaders identified reporting and benchmarking as one of the top three areas where they would like ESG education to be focused for the hospitality sector’s c-suite.
Conflicting priorities among the stakeholders in the industry were also brought up by some individuals. As mentioned by one interviewee, the majority of hospitality brands prioritize guest satisfaction over sustainability.
Several leaders expressed concerns about the availability of ESG advice. According to one research participant, finding knowledgeable advisors who can assist companies in taking a holistic approach, rather than solely focusing on specific topics or certifications, can be challenging.
European leaders place more emphasis on energy-related initiatives compared to their counterparts in other regions, as suggested by the research.
The common theme of our research was the desire to cut through confusion and contradiction and develop an approach to ESG that works for the sector.
