
Definition of ESG: ESG stands for Environmental, Social, and Governance. These three pillars assess the non-financial performance indicators of a business. In the hospitality sector, ESG evaluates how sustainably a hotel operates, how responsibly it engages with people and communities, and how ethically it is governed.
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Importance of ESG:
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Guests increasingly prefer brands that align with sustainability and ethics.
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Investors and corporate clients now assess ESG scores before partnerships.
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ESG practices lower operational costs and improve brand loyalty.
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ESG-aligned hotels attract top talent and enhance staff retention.
- It helps to attract investments as it promotes short, medium, long term economic sustainable.Â
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,Example: IHCL’s “Paathya” framework – a comprehensive ESG and sustainability roadmap by Indian Hotels Company Limited (Taj Hotels). Launched in 2022, Paathya encompasses six key pillars: environmental stewardship, community impact, workforce inclusion, heritage conservation, responsible procurement, and ethical governance. It includes measurable goals such as 100% renewable electricity by 2030, sustainable sourcing, gender diversity, and local community engagement. Through Paathya, IHCL has already implemented energy-efficient technologies, reduced carbon footprint, and increased CSR initiatives across multiple properties.