Benedetta Cassinelli, CEO of Considerate Group, outlines the benefits of sustainability certifications and the key considerations for selecting the right one.
In today’s competitive hospitality landscape, sustainability is no longer just a buzzword. It is widely recognised as a critical factor in reducing operational costs, meeting regulatory requirements and attracting and retaining guests. One powerful way to demonstrate a commitment to sustainability is through certification, and this has led to an increasing number of businesses choosing to obtain certification and a growing number of sustainability-focused certifications within the hospitality industry.
While sustainability certifications can be rigorous and resource-intensive to obtain, they offer clear benefits that can significantly enhance a hospitality business. Firstly, certifications provide credibility and an enhanced reputation. There is a recognised increase in consumer demand for sustainability, and as more consumers seek out businesses that align with their values, businesses with strong sustainability credentials can differentiate themselves from competitors. In a market rife with greenwashing, sustainability certifications provide third-party validation of a business’s sustainability efforts, instilling confidence in the business’s commitment to sustainability.
Online Travel Agency (OTA) platforms such as Booking.com now have recognition schemes to prominently display certifications, helping consumers differentiate between hotels with strong sustainability credentials and those without. Additionally, many corporate clients are increasingly requesting information about their suppliers’ social initiatives and environmental data. Certifications help satisfy these demands by providing verifiable proof of a business’s commitment to sustainability, which can be a deciding factor in securing corporate contracts.
However, consumers and corporate clients are not the only stakeholders attracted to certified businesses. Certifications improve stakeholder engagement by enhancing relationships with suppliers and employees who value sustainable practices, thereby attracting and retaining quality and talent. Sustainability certifications can also enhance investor appeal. Investors are increasingly prioritising sustainability in their portfolios due to increase regulatory pressure, and a certified business is more likely to attract investment by signalling a commitment to long-term sustainability, risk management, and operational efficiency – all of which are attractive to investors.
In addition to investment opportunities, sustainability certifications can generate further financial benefits by uncovering opportunities for improved operational efficiency. By adhering to the standards required for certification, businesses can identify and implement practices that enhance the bottom line through sustainable operations. The certification process helps hospitality businesses evaluate their internal management processes and operations and encourages them to adopt more sustainable technologies and practices that can streamline efficiency.
Lastly, certifications crucially serve to mitigate risk and futureproof businesses by helping them demonstrate compliance with statutory and regulatory requirements, simplifying the process of meeting these obligations. This can be particularly valuable in regions where regulations are stringent and constantly evolving, providing a framework for staying compliant and ensuring that the business can adapt to future regulatory and market demands.
While the benefits of obtaining a sustainability certification might be clear, deciding which certification to pursue is often not so simple. It is estimated that there are over 200 sustainability-focused certifications within the hospitality industry, making it increasingly difficult to identify a suitable and credible certification. There is no current universally accepted certification or standard that comprehensively addresses both the capital expenditure (CapEx) and operational expenditure (OpEx) elements of hotels. Generally, there are two different types of certifications relevant to hotels: certifications for the building itself, such as LEED and BREEAM, which have different versions for new builds versus existing buildings; and operational certifications, focusing on how a hotel is operated, for example Green Key and EarthCheck.
To streamline operational certifications programmes, the Global Sustainable Tourism Council (GSTC) has established baseline criteria essential for all credible certification initiatives. The GSTC criteria serve as the global standard for sustainable tourism, encompassing accommodation providers, tour operators, and destinations, and recognition by the GSTC requires that a certification or standard incorporates all GSTC criteria. Well-known certifications such as Green Key and EarthCheck are formally recognised by GSTC to include all criteria, and hotels are strongly advised to opt for GSTC-recognised certifications.
When selecting a certification, several factors need to be considered to ensure the certification aligns with the business’ goals and provides the desired benefits. Firstly, it is essential to determine the motivation behind seeking certification. Is it driven by an internal goal for improvement, or is it prompted by external requirements such as Requests for Proposals (RFPs) from clients or investors? Understanding the underlying motivation can help guide the decision-making process.
Next, consider which facet of the business should undergo certification – whether it is operations, buildings, or the entire business. Does the certification need to be relevant to multiple business sectors or perhaps a destination? This decision will influence the scope and criteria of the certification chosen. Additionally, it is important to evaluate which certification is best acknowledged by stakeholders or within the geographical area the business operates. Some certifications may be more recognised nationally or internationally, or clients might have specific preferences for one certification over another.
The level of investment prepared for allocation to certification is another critical consideration. Certification programmes vary widely, and it is essential to factor in the associated implementation costs. This includes not only the initial costs but also ongoing compliance and maintenance costs. Financial considerations should be balanced against the potential long-term benefits of certification, such as improved efficiency, revenue growth, and enhanced customer loyalty. In addition to financial investment, it is important to consider the investment of other resources such as the time required to implement the required standards and recertify. Generally speaking, the more comprehensive the certification, the more human resources will be required to obtain it.
Sustainability certification is more than just a badge of honour; it is a strategic investment that can yield significant returns. By carefully selecting the right certification, hospitality businesses can enhance their operational efficiency, ensure regulatory compliance, increase asset value and secure a competitive market advantage. For hotel businesses, choosing the right certification involves careful consideration of business goals, credibility, costs, scope, stakeholder expectations, and ongoing support. By selecting and pursuing the appropriate certification, businesses can not only improve their sustainability performance but also position themselves for long-term success.
In an era where sustainability is becoming a key determinant of success, embracing and showcasing certified sustainable practices is not just a trend but a strategic advantage for the hospitality industry.
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