ESG in the Hotel Industry
We are all aware that Environmental, Social, and Governance (ESG) policies are crucial to the hospitality industry. As stakeholders increasingly expect businesses to address sustainability, social responsibility, and ethical governance, hoteliers must integrate ESG principles into their strategies. The environmental element is measurable and often dominates discussions, however the social aspect is equally critical, directly influencing staff morale, guest experience, and long-term business success.
The social component of ESG policies focuses on the relationships a hotel cultivates with its employees, guests, suppliers, and the wider community. It emphasizes inclusivity, employee welfare, community engagement, and respect for human rights. For hotels, which rely heavily on people, the social aspect is not just about compliance, it’s a cornerstone for delivering exceptional service and building a sustainable brand.
We know hotels are labour-intensive businesses. Employees are the backbone of operations, and their satisfaction directly impacts guest experiences. An ESG-aligned approach includes:
Fair Compensation: Offering competitive wages and benefits
Diversity and Inclusion: Promoting equal opportunities regardless of gender, ethnicity, background and disability
Training and Development: Investing in staff education ensures continuous improvement and loyalty.
Zeal Hotels is on schedule to open the first branded commercial net zero carbon hotel in February 2025, voco Zeal Exeter Science Park, and as an example of employee engagement Zeal Hotels has instigated a tailormade Sustainability Awareness course for all its employees. Positive Planet and Valor Hospitality Partners have been instrumental in delivering this Carbon Literacy Course and all employees will be aware of the sustainability initiatives Zeal Hotels has adopted. This will educate the team members, enhance their career development, prompt community service opportunities, foster loyalty and boost operational efficiency.
The social aspect also extends to how employees interact with guests. Delivering a quality guest experience is paramount and the ability to discuss the sustainability aspects of the hotel enhances the experience further.
Hotels can adopt socially responsible practices like sourcing supplies locally or working with the community enhancing brand reputation and guest loyalty.
Hotels are part of a larger ecosystem. Proactive community engagement fosters goodwill and strengthens local economies. Partnering with local businesses and artisans to boost the local supply chain and hiring locally to generate employment and reduce environmental impacts good examples of this.
For hotel owners, satisfied guests are more likely to recommend and return to the hotel, which translates to increased profitability and enhanced asset value. Strong social policies increase staff zeal, pride and retention reducing recruitment and training costs. Social ESG policies create a supportive, inclusive work environment where employees feel valued and respected. This increases job satisfaction and fosters a culture of excellence.
The social aspect of ESG policies is essential in the hotel industry, providing tangible benefits to employees, guests, and owners alike. By prioritizing employee welfare, guest experience, and community engagement, hotels can build trust, strengthen their brand, and ensure long-term success. Incorporating the social pillar is not just an ethical choice; it’s a strategic advantage.
