Shared Commitment is Key to a Green Hospitality Recovery
15 experts from the HospitalityNet Sustainability in Hospitality Panel shared their thoughts on The (Green) Recovery Imperative: Hospitality Re-Set or Bouncing Forward?: A review of outcomes.
The Great Lockdown is often referred to by economists to explain the double upheaval taking place in the global economy where (1) businesses had to slow down or stop their activities causing a (2) collapse in the consumption (and business investments) across all spheres of society looking towards an uncertain future. With a health crisis turned into an economic catastrophe with humanitarian consequences at our doorstep, it is essential to have recovery plans in place that stimulate investments, re-establish confidence and limit further damages. Investing in climate resilience is an enormous economic opportunity as governments and the industry are looking into economic recovery. This is particularly relevant to the tourism and hospitality sectors, which are greatly affected by the current health and economic crisis and vulnerable in face of climate emergency.
So is the industry ready and willing to bounce forward into a green recovery? What components and resources are necessary and how do we go about activating a 'green recovery' in hospitality?
While the 'natural reaction is to rebuild as things were, to replace what was lost', Prof Jonathon Day at Purdue University argues that 'building back better is a deliberate act' where, in a very complex tourism ecosystem, there are a multitude of ways to achieve some recovery, in other others words, 'there is no "one size fits all" answer' to how to bounce forward. However, common to all hospitality businesses are the short-term priorities where cost-cutting measures and access to some liquidity to avoid the spectre of large-scale insolvencies. Julia Massey, Vice President Global Sustainability at Kempinski Hotels S.A. points out that facing the current situation, taking a hard look at utility costs 'that make up a considerable share of operational expenses' is part of the overall cost-saving mode of hotels. On the other side of the coin, 'technology providers are more willing to share investments for technology set ups, in return for sharing profits from saved utility costs' argues Massey. Along a similar line, Sam Laakkonen, Contingent Managing Director at Techstars also mentions that 'data will be one of the key components for activating "green recovery in hospitality"'. Whether it is about energy consumption according to occupancy levels or consumer food ordering preferences, large sets of data are available but under-utilized argues Laakkonen. Once this data is understood, operations can be adapted and adjusted accordingly, such as energy efficiency gains based on occupancy.
Beyond internal tactics however, 'the challenge posed by the current pandemic can and must be solved by developing leadership and management capabilities to support sustainability through innovative collaborations'. Prof. Carlos Martin-Rios at Ecole hôtelière de Lausanne (EHL), also maintains that a greater recovery impact can only be achieved 'by working together, sharing best practices, and building a culture of transparency and accountability'. Similarly, Marloes Knippenberg, CEO of Kerten Hospitality proposes a three-point approach, highlighting the need for cooperation:
- Ethical investment for a greater overall impact engaging 'investors, owners, guests, residents, entrepreneurs, digital nomads who will jointly foster that coveted impact'
- Establishing a self-sustaining, resilient, transparent local supply chain 'treating them as an extension of our business and engaging in a meaningful two-way dialogue'
- Building a community based on shared commitments within the sustainability ecosystems
Underpinning the argument of shared commitment toward a strong green recovery, Aurora Dawn Benton, Founder & CEO of Astrapto reasons that in fact, 'more than a "green" recovery, we need a "human" recovery'. This also means activating sustainability and recovery 'by empowering and enabling people on the ground (all levels, all departments), who can move sustainability forward but need a little guidance and encouragement'.
Trade associations, governments and consumers all have a role to play in the recovery. Kathy McGuire , Principal Sustainable Development at 3 Pillar Solutions, maintains that leadership from hospitality trade associations in 'educating and encouraging their industry members and partners would go a long way to avoid slipping back into pre-COVID-19 norms'. Simon Martin, Head of Development Hospitality-Catering at IECD, argues that 'demand is the main component of a green recovery' since all the main components building sustainability in practice from technology to certification are all in place in any case and ready to be implemented in business processes. And while demand is important, Prof. Henri Kuokkanen at Institut Paul Bocuse Policy, asks which hotel sustainability 'practices truly matter to the customer'. Prof. Elena Cavagnaro at Stenden University of Applied Sciences, argues that all parties have a role to place whereby 'if governments will be supportive of a green recovery, NGOs will keep pushing and guests pulling for it.' So policy-makers are called upon to create the framework enabling such recovery. Whether it is about hotels' mandatory 'reporting on their environmental, social, and governance risks' as discussed by Xenia zu Hohenlohe, Partner/Director at the Considerate Group or initiating support in strong sustainable recovery plans to ensure that the private sector undertakes investments in clean technologies.
None of this is easy, particularly since, 'in many places, it is about existence and survival' as stated by Suzann Heinemann, Founder and CEO of InfraCert. Florian Kaefer, Founder & Editor of the Sustainability Leaders Project, argues that the propensity of hoteliers to come out of this crisis more resilient 'probably depends on their own values and purpose of doing business'. And what is at stake is an entire business model based on ecosystem services concludes Dr. Frauke Fischer, Founder of Agentur Auf!; 'not only because nature makes good scenery for a nice vacation, but because hotels and resorts depend on ecosystem services such as cleaning air and water or providing healthy and diverse food'.
Future-proofing the hospitality industry towards greater resiliency amidst economic-, climate- and biodiversity turmoil is the challenge but also the imperative that requires shared commitment.