*by Tatiana Rokou
EcoSkills study reveals low integration of ESG practices in luxury hotels and suggests specific sustainable solutions.
The new EcoSkills study sheds light on the key environmental and social challenges such as sustainability faced by luxury hotels in Greece, as well as the opportunities offered by the integration of ESG (Environmental, Social, Governance) principles.
The study, which focused on 51 4* and 5* star hotel businesses in key tourist destinations in the country, examines the degree of implementation of sustainable practices through public reporting on ESG actions. The selection of the sample was based exclusively on the existence of published data on the official websites of the companies, focusing not only on general statements, but also on the publication of substantive reports and measurable objectives.
Limited Adoption of International Standards and Measurable Commitments
Of the companies surveyed, only 16% publish comprehensive Sustainability Reports, based on international standards such as the GRI Standards, while only 8% actually document their contribution to the UN Sustainable Development Goals (SDGs). At the same time, 18% of companies state that they have taken into account the European Commission’s standards (ESRS) for compliance with the CSRD directive.
Although 41% state some form of reference to ESG practices, the vast majority of companies are content with general statements, without the use of measurable performance indicators or the application of double materiality assessment.
Thus, the overall picture shows that sustainability has not yet been strategically integrated into most companies. Only 8% of the total sample set specific, quantified targets, while only 4% perform a double materiality analysis, as required by the European CSRD directive.
Of particular interest is the complete absence of adoption of SASB (Hotels & Lodging) standards, which focus on issues that directly affect the financial performance of businesses, which may indicate a failure to recognize their importance, but also the need to cover issues that affect the financial assessment of the sustainable development impacts of these companies.
Furthermore, only 4% of businesses report the measurement of Scope 3 emissions — the most critical for the hotel sector, as they include indirect emissions throughout the supply chain.
Environmental and Social Footprint: The Big Challenges
Operating a luxury hotel impresses the visitor, but it is accompanied by a strong environmental footprint. The requirements for heating, cooling, lighting, hot water and equipment operation lead to increased energy consumption, which is often based on non-renewable sources. At the same time, hotels consume large quantities of water for laundry, cleaning, swimming pools and irrigation of green spaces, resulting in a particular burden on areas with limited water resources.
The production of waste – from single-use plastics to organic residues and chemical cleaning agents – combined with insufficient recycling, exacerbates the environmental burden. Furthermore, the extensive use of machinery and equipment increases noise pollution, while the lack of adequate infrastructure often leads to water pollution.
From a social perspective, the hotel sector directly affects local communities. Seasonality of employment, low wages in low-level positions and increasing pressures on housing (with rent increases and evictions) are some of the key issues. Furthermore, in areas with intense tourism, local identity is being altered, and residents are faced with cultural homogenization and deterioration of natural or historical monuments.
However, the study also highlights positive examples: many companies implement environmental management programs (such as BMS – Building Management Systems), invest in renewable energy sources (mainly solar), reduce CO₂ emissions, reuse water from biological treatment for irrigation, and integrate bioclimatic architecture principles into their design. At the same time, they promote local gastronomy, collaborate with NGOs and offer training to employees and vulnerable social groups.
EcoSkills’ Recommendations for the Next Day on Sustainability
The study formulates specific directions for strengthening sustainable operations in the hotel industry, regardless of the size of the company:
- Strategic Integration: The adoption of a long-term sustainability vision is the basis for any intervention. It includes raising the awareness of management and staff, strengthening the environmental and social culture, and creating organized action plans.
- Materiality Analysis and ESG Indicators: Companies are invited to proceed with a double materiality analysis, identifying the main impacts of their operation and measuring them with reliable and transparent indicators. Monitoring must be combined with the publication of annual Sustainability Reports, with specific and quantified objectives.
- Carbon Footprint and Scope 3: Fully recording and managing emissions — especially Scope 3, which account for up to 80% of the total emissions of the hotel sector — is crucial for compliance with the requirements of the climate transition. The adoption of science-based targets is a necessary next step.
- Circular Economy and Procurement: The implementation of circular practices is recommended – such as the use of reusable materials, the responsible procurement of goods from local and seasonal suppliers, and the elimination of single-use products, especially in care products and packaging.
- Certification and Transparency: Obtaining recognized sustainability certifications (e.g. Green Key, Travelife) is not only a marketing tool but also a lever of trust. Linking them to measurable results, goals and actions enhances the credibility and competitiveness of businesses.
- Social Contribution and Local Connectivity: Sustainable tourism development must be based on cooperation with local communities. This includes offering opportunities to vulnerable groups, supporting the local economy, and preserving cultural identity through cultural and gastronomic actions.
- As the EcoSkills team points out: “The era of simply referring to “green” practices is a thing of the past. Hotel businesses are now called upon to demonstrate their responsibility with clear, measurable data, quantitative targets and documented performance indicators on key sustainability issues. ESG disclosure obligations are constantly expanding and directly affect an increasing number of businesses, either due to compliance with European regulations (such as the CSRD), or indirectly, through the increased demand for transparency by customers, suppliers and financial institutions.
“Sustainability is not just a corporate ethic; it is a prerequisite for competitiveness and access to investment and financing.”
Source: traveldailynews.gr
