Over the next six to nine months, a global consultation will collect feedback from key stakeholders on what the existing standards are, whether/how they should be change as well as if any new ones should be added. This feedback will then be submitted to bodies including the EU Commission, the Global Reporting Initiative (GRI), and the Principles for Responsible Investment (PRI), with the end result being a recommendation to the IFRS for global standards which the industry has had a say in shaping rather than one which has been imposed.
“Sustainability factors are now in the mainstream of investment decision-making and the International Sustainability Standards Board (ISSB) standards are in the process of being adopted or used by 35 jurisdictions globally,” notes Corey Walrod a member of the ISSB technical staff.
And the discussions at the Symposium highlight key challenges and solutions when it comes to the industry’s sustainability journey, which will now be addressed when developing standards moving forward.
The role of data
One of the fundamental challenges, ESG Partner at Keystone Law Nadia Milligan notes, is the fragmented nature of data collection within hospitality.
“Hotels are so different in their nature and many hotel chains struggle to implement a unified platform across diverse properties and engage owners to provide consistent data. Owners, on the other hand, highlighted the challenge of aggregating data across multiple, non-integrated platforms, making data collection a manual and time-consuming task,” she says.
Lepere agrees that there’s confusion when it comes to data collection but positively notes that the work currently being done in collaboration with the IFRS is a solution to what seems to be a world of chaos.
“Much of the data already exist in the business but is just not dealt with in the right way. And that’s why this work is so important – the idea is to get everybody reporting in the same way, so that it's consistent and comparable with financial information. It should get much easier as everybody starts using the same frameworks. We're going to try and line up these standards right around the world to remove confusion,” Lepere says.
A viewpoint change
But as pushback against sustainability and ESG initiatives emerge in certain parts of the world, with efforts made to withdraw entirely or at least minimize the impact of compliance and regulation and with some businesses viewing sustainability compliance as an external burden, Lepere stresses the importance of a refocusing on the issue.
“The temperature is continuing to go up. Last year was the first year ever when on average every single month exceeded one and a half degrees and we're producing more oil and fossil fuels than ever. At the end of the day, people are at the centre of sustainability: the planet will be fine but the issue is whether mankind will continue to be on it.”
And for those who are more driven by company bottom lines, he stresses the relationship between an improvement in sustainability performance and financial performance and the importance of connecting both, exactly what the new standards aim to do - integrating sustainability data into financial reporting and streamline sustainability reporting so that metrics are as standardized as their financial equivalent.
“A CFO is more incentivised to cut down on 30 per cent of food waste if he sees it as 30 per cent of money wasted than if it's framed as reducing greenhouse gas emissions. Food waste is a major source of methane emissions and the quickest way to help the climate crisis is to reduce methane emissions,” he explains.
Milligan agrees, noting that the right ESG actions can lead to significant operational savings, particularly in food waste, energy efficiency and water conservation.
A pathway to reducing food waste could be taking advantage of AI-driven analytics with several owners at the symposium sharing success stories of how tracing food waste aided their efforts not just to cut down on cost but also benefited environmentally friendly efforts.
Clueless pilots and crew
Another issue high on everyone’s agenda was education, with Franck Bermond, VP Design & Construction at AccorInvest drawing parallels at the symposium with a pilot not knowing how to address technical issues with his plane.
Milligan explains further: “A great system is in place but the necessary knowledge to manage it is lacking,” as she stresses the need for comprehensive education at all levels—from general managers to maintenance teams—on sustainability goals and best practices.
“Many stakeholders lack a clear understanding of ESG’s purpose and benefits. Beyond data collection struggles, team members must also be equipped to respond effectively when things go wrong.”
Lepere agrees, explaining further. “So often, we have people running things in our hotels without all the necessary knowledge. For example, a handyman dealing with the use of utilities and he doesn't know anything about greenhouse gas emissions or savings. And how would he unless he’s trained and educated? So it's about getting the right technical competencies into the right places and getting the expertise to where it can make the most difference.”
He also stresses that context is important when seeking to improve sustainability performance, noting that goals should be tailored to specific roles within a hotel. “Targets need to be made specific and relevant to individuals - what a chef needs to hear is very different than what the housekeeping department or the front of house needs to hear. It’s about tailoring everything.”
(Not) all about the money?
Milligan highlights another out another big risk as pointed put by attendees. “Hoteliers who ignore these issues also face commercial, legal and stranded asset risks. Banks are increasingly factoring ESG compliance into lending decisions, with some refusing to finance hotels that fail to meet sustainability standards. Failure to act can prevent access to funding and some assets are seeing brown discounts,” she says.
For stakeholders, the message is clear: ESG isn’t just about compliance — it’s about business viability. Hotels that fail to integrate sustainability into their financial strategies risk losing access to capital, suffering declining property values, and falling behind competitors that recognize sustainability as a core business imperative. And with the IFRS collaboration paving the way for a standardised, industry-led approach to sustainability reporting, the sector is positively positioned.
By Ifeoluwa Taiwo
