Do you have a hospitality company facility or a related enterprise? Adopting ESG sustainability reporting can help to grow your company by a big margin. Hospital facilities, be they hotels or airlines, can have huge impacts on the planet and it is important to be at the frontline by adopting the best practices for success.
In this post, we look at ESG sustainability reporting in the hospitality industry to demonstrate what ESG entails, the correct reporting process, and expected benefits. We will also tell you why you need to use the best software for sustainability reporting.
What is ESG Sustainability Reporting?
ESG sustainability reporting is the disclosure of a hospitality enterprise in three main areas: social, environmental, and governance. The focus is to give stakeholders a report that captures the company’s efforts in promoting sustainability. However, the idea is way deeper than that, and the benefits of ESG sustainability reporting can help the company stand out in the market.
We must indicate that sustainability reporting is mainly voluntary, but there are different pieces of legislation that promote responsible business operations. In the hospitality industry, these pieces of legislation might include regulations on waste disposal, and labor regulations. However, the legislation landscape is moving rapidly from the voluntary edge into the mandatory line, implying that it is only a matter of time before all companies are required to report their efforts.
Principles that Guide ESG Reporting in the Hospitality Industry
When implementing ESG sustainability reporting, it is important to follow the guiding principles that are aimed at making all players follow the same rules. First, you need to follow the right framework for ESG reporting. The most common framework is the General Reporting Standards (GRI). However, you might also want to consider others such as the Carbon Disclosure Project (CDP) framework or the Climate Disclosure Standards Board (CDSB) framework. Once you have selected the preferred framework, follow these principles:
- Materiality.
- Verifiability.
- Accuracy.
- Continuity.
- Easy to read.
The Process of ESG Reporting in Hospitality Industry
Some people have been indicating that ESG sustainability reporting is a thing for the large companies only, but this is not true. In the hospitality industry, the impact of hotels, lodges, airlines, cruise ships, and sports-related companies can have a huge impact on the economy, planet, and people. In 2019, World Travel & Tourism Council (WTTC) reported that the travel and tourism industry was a major economic driver on the globe, accounting for about 10.3% of the global economy. This is a huge chunk of the global economy.
No matter the size of your organization, it is a good idea to consider ESG sustainability reporting because it comes with unique benefits such as willing more clients and growing the brand faster. So, here are the main steps to follow:
- Start by carrying out a comprehensive review of the company’s risks and opportunities.
- Engage stakeholders to understand what they would want the company to focus on.
- Carry materiality assessment to identify the right reporting topics. Consider selecting the topics that will have the greatest impacts.
- Develop a clear sustainability strategy to help the company have a positive impact on the planet.
- Capture the relevant data and use it to generate the report that will be published for clients.
The hospitality industry is one of the most important areas in the global economy and it is important that your facility follows the best practices. By following the steps we have outlined in this post, you are sure of convincing investors, customers, and other stakeholders to become part of the brand and grow together.
To make the reporting more accurate and a lot easier, you should also identify and work with appropriate software. Computer programs help to automate data gathering and report generating in line with the principles of ESG sustainability reporting principles. To get the best software for ESG sustainability reporting and related support, visit Diginex.com.
