As climate concerns escalate, the need for hotel businesses to prioritize sustainable hospitality is increasing.
Hotels need to reduce carbon emissions per room per year by 66% by 2030 and 90% by 2050 – Sustainable Hospitality Alliance. Early adopters have reaped the rewards of putting purpose before profits. These hotel chains are showcasing that environmental responsibility and financial growth are not mutually exclusive. In this article, we delve into the ambitious objectives of these North American hotel groups and their collective efforts to pave the way for a more sustainable and future in the hospitality industry.
1. Hersha Hospitality
Hersha Hospitality is at the forefront of shaping the future of sustainable hospitality through their robust ESG (Environmental, Social, and Governance) accomplishments. Since 2010, the company has championed their corporate program, EarthView®. By placing environmental and community stewardship as a core business principle, Hersha has successfully integrated acctionable environmental initiatives into their hotels’ operations.
EarthView®’s impact is substantial and quantifiable. The program’s sustainability initiatives have led to a remarkable net savings of $24 million, demonstrating that responsible environmental practices can translate into economic benefits. These initiatives not only contribute to cost reduction but also drive operational savings that align with budget goals.
With a focus on resource efficiency and innovation, Hersha has achieved impressive milestones, including a 19% reduction in energy consumption, a 54% reduction in greenhouse gas emissions, a 30% waste diversion rate, and a 14% reduction in water consumption per square foot across their portfolio.
Learn more about Hersha Hospitality ESG accomplishments.
2. Hilton Hotels
Hilton Hotels has taken bold steps to address the climate crisis through its comprehensive ESG strategy known as “Travel with Purpose.” As highlighted in their 2022 progress report, Hilton has integrated this strategy into every part of its global business operations, supply chain management, and community engagement efforts. Recognizing the urgency of the situation, Hilton has embraced the latest climate science from the Intergovernmental Panel on Climate Change (IPCC), which emphasizes the need to limit global temperature rise to 1.5°C. This science-backed approach has driven Hilton’s commitment to safeguarding both communities and the environment, ensuring that the places they operate remain vibrant and resilient for future generations of travelers.
Hilton has demonstrated industry leadership by becoming the first major hotel company to establish science-based targets in 2018. These targets are reviewed and recommitted to every five years to ensure alignment with the latest advancements in climate science. The comprehensive goals set forth in the Travel with Purpose strategy encompass a range of areas including emissions reduction, water conservation, waste management, and promoting gender and ethnic diversity within leadership levels.
In a Q&A with Hilton’s Chief ESG Officer, Kristin Campbell said:
“As one of the world’s largest hotel companies, Hilton has a critical responsibility to protect our communities and our planet, so the destinations where we operate can remain vibrant and resilient for generations of travelers to come. I’m extremely proud of the fact that we were the first in our industry to set science-based targets back in 2018. One of the key requirements with these targets is that we review and recommit to this goal every five years.”
“Since then, climate science and our understanding of our changing environment has evolved considerably. That’s why we’ve made the decision now to raise the bar on our ambition and evolve our carbon intensity reduction target from a 2°C to 1.5°C warming scenario by 2030. This half a degree difference increases our commitment for cutting emissions intensity from 61% to 75% across Hilton-managed hotels.”
Read Hilton Hotels 2022 ESG highlights report.
3. Host Hotels
Host Hotels & Resorts, Inc., as a prominent player in the hospitality industry and the largest lodging real estate investment trust (REIT), has made a deep commitment to climate action and sustainability. As highlighted by their comprehensive corporate responsibility program, Host is dedicated to integrating ESG strategies into their business operations to enhance both the sustainability and value of their ho tel portfolio.
Host’s proactive approach to sustainability includes responding to ESG analyst requests, participating in annual CR questionnaires, and establishing clear goals and targets to continually improve their overall sustainability performance. The company’s ambitions extend beyond merely achieving net zero impact in areas like energy, emissions, water, waste, and biodiversity conservation. Host aspires to make a net positive impact throughout their value chain, going above and beyond to contribute positively to the environment. They are also committed to building a portfolio of resilient hotels that are prepared for a low-carbon future by obtaining sustainable certifications and reducing exposure to climate risks.
4. Hyatt
Hyatt’s commitment to sustainable hospitality is deeply rooted in its core values, as demonstrated by the comprehensive World of Care initiative. With more than 65 years of experience, care remains at the heart of Hyatt’s operations. The company’s global ESG strategy, embodied by World of Care, serves as a holistic approach to promoting responsible business practices, supporting the well-being of the planet, and fostering a positive impact on people and communities.
In line with their commitment to environmental stewardship, Hyatt is actively working to accelerate climate action and water resource protection. By setting science-based targets approved by the Science Based Target initiative (SBTi), Hyatt is committed to making substantial reductions in greenhouse gas emissions and enhancing their energy efficiency. Their focus also extends to areas like waste reduction and circularity, responsible sourcing, and creating thriving destinations.
Read more about Hyatt Hotels world of care highlights
5. Marriott International
Marriott Hotels is taking a leading role in sustainable hospitality, guided by their 2025 Sustainability and Social Impact Goals, aligned with the UN Sustainable Development Goals. As a powerful global force, Marriott recognizes its potential for positive change in addressing societal, environmental, and economic challenges.
Marriott’s broad sustainability goals include empowering people, practicing responsible operations, and championing human rights. Their commitment to diversity and sustainable hospitality growth is exemplified by a $35 million investment in programs for youth, women, individuals with disabilities, veterans, and refugees. The goal of gender representation equality in company leadership by 2023 is also a priority.
With a focus on responsible operations, Marriott aims to significantly reduce their environmental impact by 2025, including targets for water, carbon, waste, and food waste reduction. They prioritize renewable energy, targeting a minimum of 30% renewable electricity use. Additionally, responsible sourcing is integral, aiming for 95% sustainability in their top 10 priority categories by 2025.
Read Marriott hotels 2025 sustainability and social goals
A Blueprint for Sustainable Hospitality
At ClimateTrade we are committed to revolutionizing the way hospitality businesses address climate change. Through our plug-and-play API we enable organizations to swiftly integrate sustainable initiatives into their operations allowing them and their customers to compensate for their emissions by supporting climate action projects around the world. Melia Hotels chose ClimateTrade as their partner and became the first hotel company in the world to offer loyalty program members the opportunity of getting directly involved in offsetting their carbon footprint and neutralizing their emissions. The collaboration between ClimateTrade and Meliá Hotels serves as a blueprint for how the sustainable hospitality industry can embrace immediate climate action through technology-driven solutions.
