Environmental, social and governance issues in Europe are reaching the top of the hotel-industry agenda, but considering — in the words of Ufi Ibrahim, founder and CEO of the Energy & Environment Initiative — if the sector is “people, people, people, why is the industry not the leader, even a leader, in ESG?”
Moderating a panel on the subject at the recent European Hospitality Investment Conference, Ibrahim said the industry should praise what it has done correctly and work from there.
Change is happening, speakers said, and the industry is moving from a service culture focus to an experiential one, and hoteliers are realizing they need to invest more in ESG.
Guests and Staff
James Fry, founder of serviced-apartment firm Beyond Aparthotels, said a total approach to ESG means providing sustainable wellness for both staff and guests.
Looking after staff was a key subject in the discussion, and a key part of both the "environmental" and "social" elements of ESG.
“We aim to make [our aparthotels] the least toxic place you’ve ever been," he said. “Housekeeping suffers from 40% more respiratory conditions, more rashes and more sniffles. There does exist a list of nasty things, and we make sure none of them are in the cleaning materials.
"Environmentally sustainable and healthy products used to cost more, but now you must build and operate this way, so it is just part of the cost structure,” he said.
“Staff work to live in many cases, so know their inspiration. If they have a dance class on a Wednesday, make sure they do not work on Wednesdays,” he added.
Emilio Cereijo, development director and chief sustainability officer of Patron Capital, said in an industry where maximizing revenue might be the only reason to exist, a mindset change is required.
“Staff and work rooms are always in the basement and are very small. We must make their work easier, and we must place more focus on those who work with us,” he said.
Marion Koopman, chief operations commercial officer of The Social Hub, which until October was hotel firm The Student Hotel, said they have provided quality areas for staff to cook in and eat together and avenues in which they can express mental-health issues and start to receive help.
Experiential for guests must mean experiential for employees, too, panelists said.
Fry said that notion goes hand in hand with the trend over the last few years of employees wanting to work for companies that have a genuine focus.
“We do not scream to guests about what we’re doing. Be an early adopter. Legislation is changing, and guests will increasingly expect [ESG initiatives],” he said.
Incorporate ESG Early On
Panelists said ESG principles and practices should be part of the earliest conversations when it comes to hotel development and conversion.
Hiring staff with non-traditional haircuts or visible tattoos might sound like a human resources cliche, but reaching out beyond those wearing ties every day does open new potential labor sources, and it also opens hearts and minds, speakers said.
“We found amazing people from the cultural arts," said Asli Kutlucan, chief development officer for Cycas Hospitality. "The first time we hired a receptionist with tattoos, that was taboo, but it also was a huge success.”
“They also came with a community we did not know anything about, and guests loved it as they felt valued. This has paid off, with staff seeing Cycas as part of a fun journey. We provide all the training, all the skills, all the love. The only asset we have as a management company is people,” she said.
“If you have 3,000 employees, you do have the opportunity to maybe bring happiness back to 3,000 households,” Kutlucan said, adding that like the Himalayan country of Bhutan, Cycas has something similar to a happiness index.
“The hotel sector has a huge opportunity. Hotels change locations, they bring in new life with them. From the moment you start development, you can set that pace,” Cereijo said.
“Get it right from the beginning, and you have more opportunities to get all the other ESG components right,” Kutlucan said.
“Don’t tell me, show me,” said Ibrahim, of the general mindset change that comes along with prioritizing ESG in many cases.
“Take action. Do not wait for the data. Stuff the data,” Beyond Apartment’s Fry said.
Ibrahim added the test of good ESG development and operations is not necessarily how the industry does it, but how what it does is judged.