ESG splits into three parts, or pillars. It’s a good idea to start with E for the quickest, most cost-effective, clearest numbers. Use S to keep good staff and build trust, and let G tie it together so the report reads as solid rather than as a marketing document.
E: Environmental (your impact on the planet)
The environmental pillar covers energy and carbon, water, waste, food waste, single-use plastics, fridge and air-conditioning gases, and the greenness of your purchasing.
You will meet one piece of jargon a lot here: Scopes. It is the way carbon emissions are sorted into three groups, based on where they come from.
- Scope 1 is what you burn directly, such as gas boilers.
- Scope 2 is the electricity you buy.
- Scope 3 is everything else, mostly the things you purchase, and it is usually a hotel’s largest share by far.
What to do:
- Cut energy with LED lighting, smart heating controls, heat pumps and a 100% renewable tariff (which lowers Scope 2).
- Cut water with low-flow showerheads and taps.
- Cut waste, including food waste, with WRAP’s free Guardians of Grub tools and by ordering little and often.
- Swap single-use mini-bottles for sealed, refillable dispensers.
- Buy from suppliers who can prove their green credentials, since most impact is in what you buy.
S: Social (how you treat people)
The social pillar is where good practice helps you retain staff, build your employer brand, and earn guests’ trust. It covers employees (pay, conditions, wellbeing, training, fairness and inclusion), guest health and safety, local impact, and the prevention of forced labour in your supply chain.
What to do:
- Look after your people with fair pay (the Real Living Wage is worth considering), training, wellbeing support and clear progression, which helps keep staff in a high-turnover industry.
- Publish a fairness and inclusion policy with measurable goals.
- Make health, safety and hygiene visible to guests, since the bathroom is where cleanliness is judged.
- Put a modern slavery statement in place: a public statement of the steps you take to keep forced labour out of your supply chain, backed by supplier assurances on how workers are treated.
- Support the community through local hiring and sourcing.
G: Governance (how the business is run and held to account)
The governance pillar makes the report credible. It covers who at the top is responsible for ESG, honest conduct and anti-bribery, data protection, responsible buying, your targets, and how you check progress.
What to do:
- Put one named person, ideally senior, in charge of ESG.
- Write down the basic policies: sustainability, responsible buying, anti-bribery and data protection.
- Set measurable targets for both the near term and the longer road to net zero, and review them regularly. The Science Based Targets initiative (SBTi) helps you set credible ones.
- Report openly, keep evidence ready for checking, and word green claims carefully (more below).
