The latest research into hospitality sector leaders’ views on Environment, Social and Governance (ESG) issues highlights multiple concerns around the implementation of ESG measures, as well as regional differences in priorities. Over 250 hospitality leaders across the world shared their thoughts on ESG issues as part of a major study conducted by King’s Business School and the Energy and Environment Alliance. The research has informed the development of an ESG Executive Education Hospitality Programme for the industry’s C-suite, which is now opening to its second cohort of participants.

Among the barriers to progress and investment identified by the research were:

  • The proliferation of different reporting standards,
  • Other stakeholders’ scepticism 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.

One research participant reported: It’s hard to measure and compare performance and assess value. This makes it complicated to align key stakeholders and to convince others with an appropriate calculation on payback. 73% of leaders in the survey identified reporting and benchmarking as one of the top three areas that they would like ESG education for the hospitality sector c-suite to focus on.

Others raised the issues of conflicting priorities among the industry’s stakeholders. According to one interviewee: most hospitality brands are focused on guest satisfaction and dissatisfaction, not looking at sustainability.

Many leaders were concerned at the quality of ESG advice available to them. It’s sometimes difficult to find the right advisors who are knowledgeable and able to help companies think holistically, as opposed to focusing on a certain subject or on certifications or labels, said one research participant.

The research also indicated regional differences in priorities, with European leaders emphasising energy related initiatives more than their peers in other regions.

Comments Ufi Ibrahim, Chief Executive of the Energy and Environment Alliance:

Leaders in the sector are well aware of the urgency of ESG questions and are clear that a common approach to tackling and reporting on ESG issues will be a major driver of change. Building a rigorous understanding of the issues and potential solutions across the industry is a critical part of that change process.
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. We are delighted to be working with the EEA on a programme that starts with education and will ultimately result in better-informed and more focused conversation and collaboration within the sector and with regulators. Dr Marc Lepere, Head of ESG & Sustainability for Executive Education, Kings Business School

About King's Business School and King’s College London

King's Business School, the ninth and newest faculty at King's College London, opened in 2017. It is accredited by AACSB, EQUIS and AMBA and was rated one of the top 10 business schools for research in the UK based on the Research Excellence Framework 2021 and in the in the top ten in the UK for business and management studies by the Times and Sunday Times Good University Guide, the Complete University Guide and the Times Higher Education World University Rankings.

Based in the heart of London, we are part of an internationally renowned research-intensive university with a track-record of pioneering thinking and the limitless energies of the city’s businesses, policy-makers, entrepreneurs and change-makers to draw on. We put our commitment to drive positive change at the heart of our research and education.

King’s College London is amongst the top 40 universities in the world and top 10 in Europe (THE World University Rankings 2024), and one of England’s oldest and most prestigious universities.

 With an outstanding reputation for world-class teaching and cutting-edge research, King’s maintained its sixth position for ‘research power’ in the UK (2021 Research Excellence Framework).

King's has more than 33,000 students (including more than 12,800 postgraduates) from some 150 countries worldwide, and some 8,500 staff.

Since its foundation, King’s students and staff have dedicated themselves in the service of society. King’s continues to focus on world-leading education, research and service, and will have an increasingly proactive role to play in a more interconnected, complex world. Visit the website to find out more about Vision 2029, King's strategic vision to take the university to the 200th anniversary of its founding.

About the Energy & Environment Alliance (EEA)

The Energy & Environment Alliance (EEA) is a not-for-profit coalition of hospitality investors, developers, asset managers and operators, working as a collective to transition the industry to Net Zero Carbon and ESG stewardship in a scientifically robust and commercially sustainable way. 

www.eea.international

Anja Spice
Energy & Environment Alliance Ltd