*by Tatiana Rokou
The EcoSkills study reveals that ESG practices are not widely integrated into luxury hotels and suggests specific sustainable solutions.
The new EcoSkills study highlights 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 four- and five-star hotels in key tourist destinations across the country, examines the extent to which sustainable practices are implemented, as reflected in public reporting on ESG initiatives. The selection of the sample was based exclusively on the availability of published data on the companies’ official websites, 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, whilst 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% make some reference to ESG practices, the vast majority of companies are content to make general statements, without using measurable performance indicators or applying a 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, whilst only 4% carry out a double materiality analysis, as required by the European CSRD directive.
Of particular interest is the complete failure to adopt the SASB (Hotels & Lodging) standards, which focus on issues that directly affect the financial performance of businesses; this may indicate a failure to recognise their importance, but also the need to address issues that affect the financial assessment of these companies’ sustainable development impacts.
Furthermore, only 4% of businesses report that they measure 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
Running a luxury hotel makes a strong impression on visitors, but it comes with a significant environmental footprint. The energy required for heating, cooling, lighting, hot water and the operation of equipment leads to increased energy consumption, which is often derived from non-renewable sources. At the same time, hotels use large quantities of water for laundry, cleaning, swimming pools and the irrigation of green spaces, placing a particular strain 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, whilst the lack of adequate infrastructure often leads to water pollution.
From a social perspective, the hotel sector has a direct impact on local communities. Seasonal employment, low wages in entry-level roles and mounting pressures on housing (including rent increases and evictions) are some of the key issues. Furthermore, in areas with high levels of tourism, local identity is being altered, and residents are faced with cultural homogenisation and the deterioration of natural or historical monuments.
However, the study also highlights positive examples: many companies implement environmental management programmes (such as BMS – Building Management Systems), invest in renewable energy sources (mainly solar), reduce CO₂ emissions, reuse water from biological treatment for irrigation, and incorporate bioclimatic architecture principles into their design. At the same time, they promote local cuisine, collaborate with NGOs and provide training to employees and vulnerable social groups.
EcoSkills’ Recommendations for the Next Day on Sustainability
The study sets out specific guidelines 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 forms the basis for any intervention. This involves raising awareness amongst management and staff, strengthening the environmental and social culture, and drawing up structured action plans.
- Materiality Analysis and ESG Indicators: Companies are invited to carry out a double materiality analysis, identifying the main impacts of their operations and measuring them using reliable and transparent indicators. Monitoring must be combined with the publication of annual sustainability reports, setting out specific and quantified objectives.
- Carbon Footprint and Scope 3: Accurately recording and managing emissions — particularly Scope 3 emissions, which account for up to 80% of the hotel sector’s total emissions — 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, particularly in care products and packaging.
- Certification and Transparency: Obtaining recognised sustainability certifications (e.g. Green Key, Travelife) is not only a marketing tool but also a means of building trust. Linking them to measurable results, targets and actions enhances the credibility and competitiveness of businesses.
- Social Contribution and Local Connectivity: The development of sustainable tourism must be based on cooperation with local communities. This includes providing opportunities for vulnerable groups, supporting the local economy, and preserving cultural identity through cultural and gastronomic initiatives.
- As the EcoSkills team points out: “The days of simply referring to “green” practices are long gone. Hotel businesses are now expected to demonstrate their responsibility through 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 from customers, suppliers and financial institutions.
“Sustainability is not merely a corporate ethic; it is a prerequisite for competitiveness and access to investment and finance.”
Source: traveldailynews.gr