Sustainability continues to be a priority for Hilton, with initiatives across its portfolio. In addition to reducing water use, energy use and waste, Conrad Dubai and Conrad Abu Dhabi Etihad Towers both feature onsite hydroponic farms which enable them to grow fresh, local produce every day for their guests. The hotels also use artificial intelligence tools from Winnow to manage and mitigate food waste.

“These initiatives align with the growing demand for sustainable travel, with 84% of UAE travellers saying that minimizing their environmental impact is important, according to our recent research,” said Guy Hutchinson. “Integrating sustainability-focused practices ensures we meet the expectations of purpose-driven travellers while protecting our planet and preserving the beautiful destinations in which we operate for generations to come.”

Dr John Blakey CEO Executive Coach | Founder – The Trusted Executive warns that the luxury hospitality sector must be wary of being accused of greenwashing: marketing gloss with no real substance behind it.

“Organisations should seek an external verification of their ESG practices. The most high-profile example is the B Corp accreditation offered by B Lab, an independent verification that has gained global coverage and respectability. The positive impact of B Corp accreditation is that many studies have shown that top talent and discerning consumers are attracted to organisations that are committed to playing a positive role in the world. On the other hand, with such visibility comes increased scrutiny.”

Successful ESG comes at a cost, so how can global brands effectively finance the transition to future-proof hospitality? Is part of the solution rethinking cultural alignment, and leveraging workforce and organisational culture to maintain a competitive advantage?

Radisson’s Inge Huijbrechts said: “The industry needs speed and scale in the urgent Net Zero transition of the industry. It is much cheaper to design and convert Net Zero hotels than to retrofit to the same standards. I would argue there is an important revenue or profit margin opportunity in truthful and verifiable Net Zero actions, for example through the impact of reduced energy consumption or lower waste disposal costs, or of the increased attractiveness of conscious travellers who choose real sustainable hotels.”

“Sustainable development should no longer be thought of as a cost, as it's proving to be an excellent opportunity for return on investment. While it’s true that the initial investment of time or resources does come at a cost, adopting the right solutions can lead to significant results. By leveraging green financing opportunities, we can strategically manage initial investment challenges, while forging long-term partnerships with the right providers to enhance property performance over time. Accor’s ESG strategies to support owners and investors include secure investment financing with low debt cost for ESG-linked loans; reduction of regulatory risk amid an onslaught of new regulations expected within the next five years; increased hotel revenue opportunities in meeting the sustainability expectations of 70% of business and leisure guests; enhanced profit margins with an average of 20% utility cost savings; and increases to asset values, with 10-15% premiums applied to green assets. Governments and cities are implementing myriad sustainability regulations that must be complied with, and banks and lenders are assessing borrowers through an ESG lens, so a sustainable approach is fast becoming essential to accessing credit.”

Richard Williamson believes that as well as effective transition risk mitigation and compliance, ESG investment can deliver operational cost savings through targeted opex and capex measures.

“Embedding ESG values into organisational culture drives employee engagement. By aligning workforce incentives with sustainability goals, companies can harness their talent to enhance efficiency and reduce costs. This should help global brands attract and retain top talent, reinforcing the brand’s market position and supporting innovation, whilst maintaining exemplary service standards,” he said.

Meanwhile, Dr John Blakey thinks that ESG is only one aspect of shifting from being a profit-driven organisation to a purpose-driven one.

“In many ways, ESG is jargon from the investment management world which means very little to people outside the boardroom. The workforce wants to feel part of an organisation that has a clear purpose beyond simply making money for shareholders and owners and wants to know what the organisation stands for from a values perspective. If your company stands for a spirit of adventure, you can build a culture around adventure, but you cannot build a culture around the acronym ESG. The key is thinking about purpose and values first, and letting ESG be an enabling tool.”

Sustainability starts at the top, but all members of the workforce can play a role in its success. How can the hospitality and tourism sector educate team members on ESG matters and instil purpose-driven leadership?

Duncan O’Rourke said: “Accor has over 300,000 team members globally working in more than 300 functions. Our strength is our people and in order to make sustainability everyone’s business, we need to unlock sustainability mindsets and infuse a sustainability culture at each level and in every department not only at the top. It all begins with understanding the "why" and identifying practical measures across all levels of the business.”

A key Accor initiative is the School for Change, founded in 2022 as extensive and groundbreaking worldwide employee training program focused on science-based environmental challenges. A year later, the company launched Heartists for Good, a volunteering platform allowing employees to connect with local NGOs for positive impact activities.

The Considerate Group has long been involved with education and training with its clients. Richard Williams said: “To successfully implement sustainability, all members of the workforce must play a role. How is a high-level strategy rolled out across an international hotel chain and what does it mean to housekeeping, bar staff, front-of-house? Hands-on engagement, effective training, toolkits on different ESG topics, green teams to support and embed new initiatives and two-way communication are all critical. Purpose-driven leadership embeds ESG goals into leadership development programs and performance evaluations. Open dialogue and idea-sharing empowers employees. Recognition and reward cultivates a sense of ownership and engagement. Every role needs clear expectations and responsibilities, and to know that what they do matters.”

At Hilton, sustainability is a shared responsibility and an integral part of the culture. The company inspires teams by educating them about Travel with Purpose and the crucial role they can play. During Hilton’s Travel with Purpose week, team members around the world come together to make a positive impact in their communities. In addition, comprehensive training, such as our Travel with Purpose program on Hilton University, offers actionable steps for our teams.

“Our owners and developers are also key partners in advancing a sustainable future for the hospitality industry, and we have developed a Sustainable Design Checklist to support them in making informed sustainability decisions. By integrating ESG considerations into our business framework, we not only ensure that we operate responsibly, but also drive positive change and long-term value for our shareholders and owners,” said Guy Hutchinson.

John Blakey, whose book 'Force for Good - How to Thrive as a Purpose-Driven Leader' is designed to advise on this very top, believes the challenge is not about educating people on ESG, which is a technical task, but on harnessing the innate desire in all people to act as a 'force for good' and to be part of communities that are also a 'force for good'.

“People already know the big problems that exist in the world such a climate change, poverty, geopolitical wars and more local societal issues. It’s good to assume that the majority of the workforce is already purpose-driven; they are simply waiting for leaders who have the bravery to step up to their existing expectations.”

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FHS World takes place at Madinat Jumeirah in Dubai, 30 September to 2 October, with a host of ESG-related presentations, debates and activities on the agenda.