For many hospitality businesses, sustainability starts with the environment. Reducing energy use, cutting food waste, improving water efficiency, limiting single-use plastics and sourcing more sustainably are all becoming familiar priorities across hotels, restaurants and tourism businesses.
This is positive progress. However, ESG is not only about environmental performance.
The “S” — Social — and the “G” — Governance — are equally important, yet they are often less visible and less developed, particularly in smaller hospitality businesses.
Social considerations cover the people and communities connected to the organisation. This includes employee wellbeing, fair working conditions, diversity and inclusion, accessibility, staff development, community engagement and responsible supply chains. These issues are highly relevant to hospitality, where service quality depends heavily on people. However, the sector also faces challenges such as staff shortages, seasonal employment, high turnover, irregular working hours and limited time for structured staff development. In smaller businesses, HR processes may be informal, which can make it harder to set clear social goals or measure progress.
Governance is often even less obvious. It includes how decisions are made, how responsibilities are assigned and how organisations manage risk, compliance, ethics, transparency and accountability. In many hospitality SMEs, these responsibilities sit with owners or small management teams already dealing with the pressures of day-to-day operations. Good governance may therefore be happening in practice, but without formal policies, documentation or clear links to ESG objectives.
Another challenge is measurement. Environmental indicators such as energy consumption or waste levels are relatively easy to track. Social and governance issues, such as staff wellbeing, workplace culture, ethical decision-making or community impact, can be more difficult to measure and may require longer-term monitoring.
This is where EcoSmart can help. The project supports hospitality SMEs, learners and VET providers with practical resources that make ESG easier to understand and apply in real business settings.
By looking beyond the environmental dimension and giving greater attention to Social and Governance issues, hospitality organisations can build stronger workplaces, improve resilience, reduce risk and create more sustainable businesses for the future. Find out more at: https://ecosmartproject.eu/knowledge-sharing-hub/