BirchStreet recently hosted a panel discussion, “Sustainability: Data and Insights,” during its European Conference. Through initiatives like the European Green Deal and Corporate Sustainability Reporting Directive (CSRD), Europe has emerged as a global leader in sustainability. Hotels operating in Europe face requirements for energy efficiency, supply chain transparency, and circular economic practices.
The session brought European hospitality leaders together to discuss how they’re embedding sustainability into the fabric of their organizations. Topics spanned governance, data, supply chains, DEI, guest engagement, and technology, offering a nuanced look at the challenges and innovations shaping the industry’s path forward.
Defining Sustainability in Hospitality
It’s important to first define what sustainability means in the hospitality industry. At its core, sustainability is about meeting today’s needs without compromising the ability of future generations to meet theirs. For hotels, this means balancing environmental responsibility, social equity, and economic viability, all while delivering exceptional guest experiences. A key framework for measuring environmental impact is the three scopes of greenhouse gas emissions:
- Scope 1: Direct emissions from hotel operations (e.g., boilers, company vehicles).
- Scope 2: Indirect emissions from purchased energy (e.g., electricity for lighting and HVAC).
- Scope 3: Indirect emissions across the value chain (e.g., supplier deliveries, guest travel, food sourcing).
Understanding these scopes is critical because they underpin many of the strategies discussed by panelists, from supplier engagement to data integration.
Where Sustainability Lives: Governance Models in Flux
Panelists revealed that sustainability doesn’t have a universal home, and that’s part of the challenge. Some organizations house it within legal or compliance teams to ensure regulatory alignment. Others embed it in supply chain or operations, where it can directly influence procurement and vendor decisions. A few elevate it to the board level, signaling strategic importance.
Key insight: Regardless of structure, sustainability must be cross-functional. Panelists emphasized the need for shared ownership across departments (from HR and finance to marketing and F&B) to avoid fragmentation and drive systemic change.
Data: The Foundation for Accountability and Action
Data was described as both a pain point and a prerequisite. While most organizations track Scope 1 and 2 emissions (direct and energy-related), Scope 3 (indirect, especially supplier-related) remains elusive.
Challenges:
- Manual data collection via spreadsheets is still common, especially for social and DEI metrics.
- ESG data often lives in silos. HR, procurement, and legal teams may each track different metrics with little integration.
- Real-time data is rare; many rely on annual or quarterly reporting cycles, limiting agility.
Emerging solutions:
- Some are piloting ESG dashboards that integrate with PMS and procurement systems.
- Others are exploring third-party platforms to automate data collection and supplier scoring.
Bottom line: Without reliable, timely data, it’s impossible to benchmark progress or make informed decisions.
Scope 3 Emissions: The Supplier Engagement Imperative
Scope 3 emissions, those from suppliers and partners, are the most difficult to measure and influence. Panelists shared that many suppliers lack the resources or knowledge to report on sustainability.
Strategies discussed:
- Creating supplier codes of conduct with clear ESG expectations
- Using platforms like EcoVadis or Sedex to assess supplier performance
- Offering onboarding and training to help vendors understand reporting requirements
- Prioritizing long-term partnerships over transactional relationships
Notable Challenge: Balancing sustainability goals with commercial realities, especially when sustainable options are more expensive or harder to source.
DEI: From Compliance to Culture
The panel emphasized that DEI must go beyond hiring quotas or accessibility checklists. It’s about embedding inclusion into every touchpoint, from recruitment and training to guest experience and design.
Key themes:
- The EU Accessibility Act is pushing hotels to rethink physical and digital accessibility.
- Intersectional data (e.g., race, gender, disability) is hard to collect but essential for meaningful DEI strategies.
- Inclusive hiring requires partnerships with community organizations and a rethinking of job descriptions and interview processes.
Notable challenge: Many organizations struggle to align DEI data across departments, making it difficult to track progress holistically.
Guest Experience: Nudging Without Nags
Sustainability can’t come at the cost of comfort, but it can be woven into the guest journey in subtle, effective ways.
Examples shared:
- Carbon-labeled menus that help guests make lower-impact dining choices
- Opt-in housekeeping and towel reuse programs, sometimes with loyalty incentives
- Refillable amenities and reduced single-use plastics, designed to feel premium
- Storytelling through in-room materials or digital apps to explain sustainability efforts
통찰력: Guests are increasingly sustainability-conscious, but they don’t want to feel guilty or inconvenienced. The goal is to make the sustainable choice the default, not the sacrifice.
Tech & Innovation: Enablers, Not Replacements
Technology is playing a growing role in sustainability, but panelists cautioned that it’s not a silver bullet.
Use cases:
- AI-powered bins that track food waste in kitchens
- BI tools that visualize ESG performance across properties
- PMS platforms evolving to include sustainability modules
- QR codes replacing printed materials to reduce paper use
Caveat: Tech can surface insights, but it can’t replace human judgment or cross-functional collaboration. It’s a tool, not a strategy.
Final Takeaways: What the Industry Needs Next
The panel closed with a shared sense of urgency and optimism. Key calls to action included:
- Invest in education: From frontline staff to executives, everyone needs sustainability literacy.
- Break down silos: ESG success depends on collaboration between departments.
- Start where you are: Even small steps such as tracking food waste or piloting a supplier code can build momentum.
As the industry moves toward 2030 and 2050 climate goals, these insights offer a roadmap for action, grounded in data, driven by people, and powered by purpose.