Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Terrorist attacks on tourist destinations
• NIMBYism hindering infrastructure improvements
• Overregulation stifling business growth
• Climate change (although later debunked)
• Income inequality
• Social security system bankruptcies
• High taxes driving companies out of the US
• EU breakup and overregulation
• High energy costs (before the nuclear energy boom)

Mitigation Strategies

• Enhanced security measures in hotels
• Lobbying for infrastructure improvements
• Relocation of businesses to more favorable jurisdictions
• Shift to nuclear energy
• Consolidation in the hotel industry
• Asset-light strategies
• Focus on cost reduction
• Development of new sustainable products/services
• Government intervention to address social security issues
• Improved energy efficiency in hotels

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Resource Management
• Resource Use and Circular Economy
• Workforce
• Supply Chain
• Community Engagement
• Business Conduct
• Governance

Climate Goals & Targets

Environmental Challenges

• Adapting sector-agnostic ESRS and CSRD regulations to the hotel sector's specific challenges.
• Misalignment of ESG criteria, overlooking broader sustainability issues (biodiversity loss, water stress, lack of climate change adaptation plans).
• Prevalence of short-termism and speculation in commercial real estate impeding mainstream change.
• Data collection and reporting challenges.

Mitigation Strategies

• Upskilling hotel teams, suppliers, and business partners to gather and monitor non-financial data.
• Strengthening local commitments by partnering with social enterprises and implementing industry-wide best practices.
• Implementing robust governance structures.
• Leveraging technology for monitoring impacts and elevating operational efficiency.
• Adopting a proactive approach to ESG that goes beyond compliance.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Operational, physical, and transitional risks associated with climate change (asset valuations, supply chains, access to capital, litigation, insurance costs).

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Retrofitting existing properties to enhance asset value and contribute to community well-being.

Reporting Standards

Frameworks Used: ESRS, CSRD

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Social Responsibility
• Governance
• Regenerative Hospitality
• Net Positive Hospitality

Environmental Achievements

• Numerous hotels achieving carbon neutrality (e.g., Soneva Fushi)
• Implementation of renewable energy sources (solar panels, geothermal cooling)
• Waste reduction and recycling initiatives (e.g., Soneva Fushi's Waste-to-Wealth program)
• Water conservation measures (e.g., rainwater harvesting, greywater recycling)
• Reduction of Scope 1 and 2 emissions (room2 Hometel)
• Minimization of Scope 3 emissions (room2 Hometel)

Social Achievements

• Community investment and partnerships (e.g., Soneva Fushi's community projects, Cempedak Island's Seven Clean Seas initiative)
• Fair working conditions and employee well-being initiatives
• Training and development programs for employees (e.g., Aleph Hospitality's Aleph Cares program)
• Support for local businesses and suppliers (e.g., Cempedak Island's local sourcing)
• Accor's Indigenous Careers program in Australia and Accor Kenya Youth Empowerment Program (AKYEP)

Governance Achievements

• Implementation of ESG strategies and reporting (various hotels and companies)
• Establishment of sustainability teams and pioneers (Aleph Hospitality)
• Adoption of sustainability standards and certifications (various hotels and companies)
• Accor's transition to a systemic governance model prioritizing stakeholder collaboration

Climate Goals & Targets

Environmental Challenges

• Industry fragmentation and lack of unified ESG approaches (Accor)
• Securing adequate funding for sustainability initiatives (Soneva)
• Limited access to financial resources for renewable energy infrastructure (Six Senses)
• Belief that individual actions are inconsequential (Mandarin Oriental)
• High costs of sustainability initiatives and lack of understanding of benefits (Kerten Hospitality)
• Adapting ESG regulations to the specific needs of the hotel sector (European Sustainable Hospitality Club)
• Greenwashing and undercommunication of sustainability practices (University of Surrey)
• Resistance to change and maintaining the status quo (EHL Hospitality Business School)
• Balancing the protection of glaciers and managing increased visitor demands (EHL Hospitality Business School)

Mitigation Strategies

• Collaboration and partnerships (various companies and initiatives)
• Localization of ESG strategies (Aleph Hospitality)
• Data-tracking and benchmarking (Weeva)
• Leveraging technology and innovation (various examples)
• Education and training programs (various examples)
• Government support and incentives (various examples)
• Development of robust environmental claims management frameworks (University of Surrey)
• Implementing climate risk modeling and proactive risk management (Hotel Resilient)
• Adopting a holistic and systemic approach to sustainability (Accor)

Supply Chain Management

Responsible Procurement

• Sustainable sourcing of materials and products
• Ethical labor practices
• Reduction of waste and emissions in the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea-level rise
• Droughts
• Wildfires

Transition Risks

• Regulatory changes
• Shifting consumer preferences
• Increased cost of energy

Opportunities

• Development of energy-efficient products and services
• Green financing options
• Enhanced brand reputation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, One Planet Living, ESRS, CSRD, LEED, BREEAM, EDGE, Hotel Sustainability Basics, GSTC Criteria

Certifications: LEED Platinum, LEED Very Good, BREEAM Very Good, EDGE, Hotel Sustainability Basics

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 17 (Partnerships for the Goals)

Various initiatives contribute to these goals through renewable energy adoption, waste reduction, carbon emission reductions, biodiversity conservation, and community partnerships.

Sustainable Products & Innovation

• Renewable energy technologies
• Sustainable building materials
• Eco-friendly products and services

Awards & Recognition

• HICAP Sustainable Hotel Awards (various winners)