The European Sustainable Hospitality Club started as an online community of industry professionals, hotel GMs, procurement directors, investors, asset managers, and hotel owners. They saw a need to educate and support the industry transition and developed an internal platform to educate their community onsite and online. This has since developed into a hospitality impact investing initiative, supporting asset owners by providing structures and tools to enable frictionless implementation and integration of sustainability strategies into the business model.
The initiative connects the dots between tech platforms and organizations, linking hotels, asset owners and environmental consultancies together along with the data, software, and education required to facilitate sustainable strategy and create a more inclusive and resilient hospitality sector. This supports ESH in their drive to increase efforts towards sustainability more generally. We also know from our work more broadly that a robust sustainability strategy has the potential to reduce future operating risks and costs while driving consumer engagement among investors.
A major sustainability challenge for many of the businesses ESH works with is aligning strategic priorities with resource allocation. The impacts of climate change also present a number of structural challenges for partners looking to develop or refurbish large commercial properties. For example, the hospitality industry whose water usage is extremely high is particularly vulnerable to issues arising from water stress, creating both operational and supply chain risks.
ESH were keen to identify to what extent precise climate risk data could inform them in their recommendations for hospitality asset owners seeking to implement sustainability strategies.
Sust Global’s solution
Sust Global’s geospatial intelligence helped ESH build a sustainability and risk mitigation report for a specific site they have been hired to advise on. Using our climate data, they provided a 360 degree overview of how physical climate risks, particularly sea level rise and water stress, could cause disruption to operations and what action could be taken to mitigate the worst impacts.
ESH created an action plan that included recommendations to change shower faucets to prevent leakage and the use of water reuse systems within properties. They also proposed the implementation of a farm-to-table food system whereby a single farm would produce most supplies, thus reducing water usage across their food production supply chain.
ESH also envisages that Sust Global’s data will support the asset managers they advise by providing value at risk metrics across whole portfolios – demonstrating how capital is impacted.
Sust Global’s data will also inform the ESH investor community on hospitality assets’ value at risk due to climate change giving them unique intelligence to factor into their decision making.
If you would like to learn more about how Sust Global can help your organization assess physical climate risk, get in touch by completing the form below.
December 5, 2022