The worth of sustainability certification in hospitality

Benedetta Cassinelli, CEO of Thoughtful Group, outlines the advantages of sustainability certifications and the important thing concerns for choosing the best one.

In in the present day’s aggressive hospitality panorama, sustainability is not only a buzzword. It’s broadly recognised as a important consider decreasing operational prices, assembly regulatory necessities and attracting and retaining visitors. One highly effective approach to display a dedication to sustainability is thru certification, and this has led to an rising variety of companies selecting to acquire certification and a rising variety of sustainability-focused certifications throughout the hospitality trade.

Whereas sustainability certifications could be rigorous and resource-intensive to acquire, they provide clear advantages that may considerably improve a hospitality enterprise. Firstly, certifications present credibility and an enhanced status. There’s a recognised improve in shopper demand for sustainability, and as extra customers search out companies that align with their values, companies with sturdy sustainability credentials can differentiate themselves from opponents. In a market rife with greenwashing, sustainability certifications present third-party validation of a enterprise’s sustainability efforts, instilling confidence within the enterprise’s dedication to sustainability. 

On-line Journey Company (OTA) platforms akin to Reserving.com now have recognition schemes to prominently show certifications, serving to customers differentiate between lodges with sturdy sustainability credentials and people with out. Moreover, many company purchasers are more and more requesting details about their suppliers’ social initiatives and environmental information. Certifications assist fulfill these calls for by offering verifiable proof of a enterprise’s dedication to sustainability, which is usually a deciding consider securing company contracts.

Nevertheless, customers and company purchasers are usually not the one stakeholders drawn to licensed companies. Certifications enhance stakeholder engagement by enhancing relationships with suppliers and workers who worth sustainable practices, thereby attracting and retaining high quality and expertise. Sustainability certifications also can improve investor enchantment. Traders are more and more prioritising sustainability of their portfolios as a result of improve regulatory stress, and a licensed enterprise is extra prone to entice funding by signalling a dedication to long-term sustainability, danger administration, and operational effectivity – all of that are enticing to buyers.

Along with funding alternatives, sustainability certifications can generate additional monetary advantages by uncovering alternatives for improved operational effectivity. By adhering to the requirements required for certification, companies can establish and implement practices that improve the underside line by means of sustainable operations. The certification course of helps hospitality companies consider their inside administration processes and operations and encourages them to undertake extra sustainable applied sciences and practices that may streamline effectivity.

Lastly, certifications crucially serve to mitigate danger and futureproof companies by serving to them display compliance with statutory and regulatory necessities, simplifying the method of assembly these obligations. This may be notably precious in areas the place laws are stringent and always evolving, offering a framework for staying compliant and guaranteeing that the enterprise can adapt to future regulatory and market calls for.

Whereas the advantages of acquiring a sustainability certification is likely to be clear, deciding which certification to pursue is commonly not so easy. It’s estimated that there are over 200 sustainability-focused certifications throughout the hospitality trade, making it more and more troublesome to establish an appropriate and credible certification. There is no such thing as a present universally accepted certification or normal that comprehensively addresses each the capital expenditure (CapEx) and operational expenditure (OpEx) components of lodges. Usually, there are two several types of certifications related to lodges: certifications for the constructing itself, akin to LEED and BREEAM, which have totally different variations for brand new builds versus present buildings; and operational certifications, specializing in how a resort is operated, for instance Inexperienced Key and EarthCheck.

To streamline operational certifications programmes, the International Sustainable Tourism Council (GSTC) has established baseline standards important for all credible certification initiatives. The GSTC standards function the worldwide normal for sustainable tourism, encompassing lodging suppliers, tour operators, and locations, and recognition by the GSTC requires {that a} certification or normal incorporates all GSTC standards. Nicely-known certifications akin to Inexperienced Key and EarthCheck are formally recognised by GSTC to incorporate all standards, and lodges are strongly suggested to go for GSTC-recognised certifications.

When choosing a certification, a number of components have to be thought-about to make sure the certification aligns with the enterprise’ objectives and offers the specified advantages. Firstly, it’s important to find out the motivation behind looking for certification. Is it pushed by an inside aim for enchancment, or is it prompted by exterior necessities akin to Requests for Proposals (RFPs) from purchasers or buyers? Understanding the underlying motivation may also help information the decision-making course of.

Subsequent, take into account which aspect of the enterprise ought to endure certification – whether or not it’s operations, buildings, or the complete enterprise. Does the certification have to be related to a number of enterprise sectors or maybe a vacation spot? This choice will affect the scope and standards of the certification chosen. Moreover, it is very important consider which certification is finest acknowledged by stakeholders or throughout the geographical space the enterprise operates. Some certifications could also be extra recognised nationally or internationally, or purchasers might need particular preferences for one certification over one other. 

The extent of funding ready for allocation to certification is one other important consideration. Certification programmes differ broadly, and it’s important to issue within the related implementation prices. This consists of not solely the preliminary prices but additionally ongoing compliance and upkeep prices. Monetary concerns needs to be balanced towards the potential long-term advantages of certification, akin to improved effectivity, income development, and enhanced buyer loyalty. Along with monetary funding, it is very important take into account the funding of different assets such because the time required to implement the required requirements and recertify. Usually talking, the extra complete the certification, the extra human assets will probably be required to acquire it.

Sustainability certification is greater than only a badge of honour; it’s a strategic funding that may yield important returns. By fastidiously choosing the best certification, hospitality companies can improve their operational effectivity, guarantee regulatory compliance, improve asset worth and safe a aggressive market benefit. For resort companies, choosing the proper certification entails cautious consideration of enterprise objectives, credibility, prices, scope, stakeholder expectations, and ongoing help. By choosing and pursuing the suitable certification, companies can’t solely enhance their sustainability efficiency but additionally place themselves for long-term success. 

In an period the place sustainability is changing into a key determinant of success, embracing and showcasing licensed sustainable practices is not only a pattern however a strategic benefit for the hospitality trade.