Can You Deliver What You Promised? Expectations vs. Reality
Can You Deliver What You Promised? Expectations vs. Reality
We all have that one friend who excels at sales—the kind of person who’s smooth with words and can make you believe anything, regardless of the topic. They set high expectations, but eventually, you’re left to face reality (see Figure 1).
A common misconception is that sustainability reporting is just about embellishing a company's eco-practices, shaping them to look ‘greener’ than they truly are. Many think the objective is to make every company sustainable overnight. But this isn’t accurate. Let's draw a parallel with something frequent in business: financial reports, like the P&L statement. Suppose your financials show losses—should you hide or misrepresent them? The correct answer is no. Financial reports are meant to track progress, whether the numbers are in your favour or not.
Following the principle "What gets measured, gets managed,” any system that enables progress tracking has inherent value. This also applies to sustainability or ESG reporting, which is about transparently monitoring your environmental and social impact. With the new CSRD rules, these reports even include an assurance component to boost credibility, much like financial reports. Why? Because sustainability has become a major trend, and every brand wants to attract eco-conscious consumers and their money. Just think back to that sales-savvy friend.
In the hospitality industry, this pressure is even greater. As a guest-facing industry, hotels, restaurants, and tourism businesses are expected to meet sustainability benchmarks and communicate them effectively to an increasingly eco-conscious target group. Transparency isn’t just good practice; it’s now a competitive advantage.
It’s often challenging to discern between genuine sustainability efforts and greenwashing. Take, for example, a recent case where a major non-European company faces a class-action lawsuit over a misleading sustainability campaign (see Figure 2). This campaign boldly claimed, ‘Our products and actions avoid environmental harm and contribute to restoring a healthy planet’, among other assertions. The phrase ‘avoid environmental harm’ is especially concerning. Is it possible for any business to operate without causing any negative impact?
Unfortunately, the answer is no. Economic activities inherently produce negative externalities—unintended effects on third parties, such as pollution, noise, traffic congestion, and resource depletion. Running a business without negative impacts is impossible because all businesses consume resources and affect the environment.
For hospitality businesses, these externalities can range from excessive energy use in hotels to wasteful supply chains or carbon-heavy tourism practices. Tackling these challenges requires industry-specific strategies, such as energy-efficient building designs, waste reduction programs, or partnerships with local suppliers.
So, what can we take away from this example? Don’t let marketing or sales philosophy run the sustainability narrative—they’re there to meet customer expectations and therefore can sometimes prioritise appeal over accuracy. This approach might succeed in sales, but when it comes to sustainability, it risks leaving those expectations unmet. With emerging regulations like the EU Green Claims Directive and similar frameworks worldwide, ensuring accuracy and transparency in sustainability messaging is no longer optional—it’s a legal and ethical imperative. Hospitality leaders should align sustainability narratives with actionable commitments, supported by transparent data. Stick to the core reporting principles. The ESRS data quality standards—relevance, accuracy, completeness, comparability, reliability, consistency, timeliness, traceability, and standardised format—are crafted to elevate sustainability reporting to the same level of rigour as financial reporting. These requirements help ensure that the data/information companies report is accurate and meaningful for stakeholders, aligning with the CSRD’s broader goal of transparency and accountability in sustainability/ESG.
At Hotelschool The Hague, we believe that sustainability reporting is not just a compliance exercise but an opportunity to lead by example in the hospitality industry. As educators and researchers, we are committed to equipping future leaders with the tools to navigate these challenges responsibly and strategically.
Feel free to reach out if you want to learn more about the example discussed in this article. For more information please send an email to Melinda Ratkai.
By Melinda Rakai
Dr. Professor of Hospitality Business
