Hotel executives are worried about environmental reporting, PWC Lead client partner Jeanelle Johnson has warned.
The EU is looking to require companies to increase sustainability- related disclosures as part of the Corporate Sustainability Reporting Directive, or CSRD. Large companies, including hotels, will have to publish reports from 2025, according to the directive.
Hotels will also have to disclose so-called Scope 3 emissions — or indirect emissions from their franchisees, suppliers, and guests.
“Scope 3 emissions are the hardest to measure and track because it requires you to have your suppliers provide accurate and comparable statistics,” Johnson said. “In the hotel sector, something like 70% of the emissions probably falls under Scope 3, given how much related to emissions is done outside hotel companies’ direct control framework.”
“To get access to certain types of capital, I do believe there will be increasingly some question by some institutional investors of ‘What are your sustainable practices?’” Johnson said, adding that institutional investors often have to report on these metrics as well.
She encouraged businesses to look into collecting data. This includes collection of primary data as well as incentivising partners and suppliers to provide metrics.
“If you have the data, you need to put the data into trackable and auditable formats. You want dashboards where you can track your KPIs [key performance indicators] effectively,” she added, noting that there are several third-party vendors that collect data using sustainability technology.
She insisted there is an efficiency gain to be had for the hotel sector by adopting better sustainability reporting. Too many parts of hotel procurement and franchise operations including labour aren’t yet monitored via automation. By mapping the supply chain to track carbon emission targets, hotel owners and asset managers have a parallel opportunity to gain insight into business processes they currently have only a foggy view of.
Gain peace of mind with sustainability reporting
Sustainability reporting can be a daunting task, especially if businesses do not have the time or expertise in-house.
Reporting requirements continue to shift as government and civil society demand more disclosure of businesses’ environmental impact.
How can businesses prepare?
At ClearVUE.Business, we make in-depth sustainability reporting easy. Our technology provides metrics and data in-real-time and our experts analyse the data and guide you on lowering emissions without deterring current operations.
