By Dr. Carlos Martin-Rios
The hospitality industry is responsible for 15 percent of global greenhouse gas emissions, and according to the Global Hotel Decarbonization Report published in 2017, the hotel industry must reduce its GHG emissions by 66 percent based on 2010 levels by 2030 and by 90 percent by 2050.
At this stage, such targets will only be achieved through a rapid transition to an efficient and renewable business model. It is vital to make the right choices and enact sustainable practices across the business, but how can this be done? By utilising new technologies and data.
For the hospitality industry to become more sustainable, there is much that should be considered and changed. For example, do you know what impact your next hotel opening will have on the planet? Have you considered that in your business forecasting? To make the industry more eco-friendly, these are the areas we need to consider. And of course, we also can’t forget the levels of waste, the supply chain systems, or the ethics of the produce your business is purchasing.
It sounds like a lot, but don’t be overwhelmed. My research has explored how different data can be utilized by hospitality leaders in areas such as sustainability management, ethical consumer choices, supply chain management and innovations in food waste management. If each of these areas are taken into consideration, hospitality leaders will be sure to see positive changes. In this article, I’ll delve into some of the ways that the industry can utilise data, and the different tools available that can help.
Uncomplicating “data driven” sustainability management
Gathering data for sustainability management might sound overwhelming, but it is actually much clearer than one would believe. Using tools such as sustainability scorecards and dashboards to measure, manage and communicate sustainability efforts in tourism and hospitality can prove to be so highly effective. For example, something similar to Bloomberg Green´s Data Dash, where you can measure the damage of your business decisions in real time.
These tools will clearly track emissions and help management to formulate strategies to reduce the amount of damage being done by the business. It also helps to have the numbers available to make it clear to stakeholders why efforts to reduce emissions should be a top priority.
Tools like this are also vital for making informed decisions about the future of the business. Forecasting the sustainability impact of opening a new hotel, merging with travel operators or hosting big events will help your management team to make informed decisions about the long-term benefits or drawbacks that such decisions will have.
Whilst economically, a merger may seem like the right choice, the long-term sustainable damage may mean the opposite. Business growth is important, but understanding the full effects of this growth is key for making sure your growth is sustainable long term.
Utilizing data in hospitality management is the best way to learn and understand the impact your business is having on the earth. If you put the right tools in place now, you can make informed decisions for the good of your business and the world, for now and in the future. There are many different tools to utilize, including blockchain technology.
The perks of blockchain technology in supply chains
Blockchain technology can help improve how sustainable your company is as it increases the transparency and traceability in the supply chains used by the hospitality industry.
Management teams can use it to assess the ability of their processes to verify the origin and quality of the products being purchased, and more importantly, the blockchain can help you to ensure that you are making ethical, sustainable choices. It also allows you to ensure that you’re working with companies who value the health and safety of their employees.
Consumers nowadays place their trust in hospitality businesses to be ethical with their choices. They want to know that everything, from the food they’re eating, to the products they’re using were fairly purchased from ethical, sustainable sources. Using blockchain can help you to ensure that the wants of the consumers are being met. With the blockchain technology, you can work to ensure your supply chains are as green as possible, and there are many options for this.
Having sustainable supply and value chains is key
Alongside the blockchain technology, having smarter, greener supply chain systems in place is vital for hospitality businesses if they want to ensure that all aspects of their business are acting in the best interest of sustainability. There are almost certainly new options for your business to consider in their supply chains.
For example, using local supply chains is a sure way to guarantee a big reduction in your businesses carbon emissions. As well as supporting local economies, you can also see first-hand how your suppliers act in terms of fair wages and labor.
Outside of using local supply chains, opting for greener supply chain management is a must. As I said before about utilising blockchain data, greener supply chain management involves collecting data about waste or resource use. When analysing the data, your management will instantly know what needs to be fixed.
Hospitality leaders should also consider adapting to a more circular supply chain. This would see suitable products being reused or recycled, and will help to reduce waste drastically. Food waste in particular, is an area that the company can revolutionize if their food waste management is adjusted.
Be innovative with food waste management
In the UK, the hospitality industry wastes up to 920k tonnes of food each year. But, with the correct food waste management, this can be reduced by up to 75 percent. There are new tools coming out every day to help hospitality businesses reduce their food waste.
Using AI and data tools, for example Kitro, a 100% automated food waste analysis program, can aid your management in keeping track of the food that is available in the restaurant, and will help to reduce any waste. It tracks any food waste in real time, alongside the reasons for that waste. That way, any “trends” in food waste can be spotted, and future purchasing can be adapted. There are also many innovations being developed in automated inventory management. The hopes of these innovations are to reduce any overordering, to ensure that everything that is ordered will actually be used.
As mentioned previously, adapting circular supply chains and economies in the business will also make a massive dent in the amount of food being wasted. Why not look for a local company who can make use of your used oil? Or donate food to local charities, give scraps to nearby allotments? When you think something is at its end, research ways that it can be used again, and thus the circular economy will strive.
What can you do?
These topics are just some of the areas that can help you, as hospitality leaders, to increase efforts in sustainability measures. Making the hospitality industry more sustainable doesn’t have to be an overwhelming process. Utilizing data from the industry and gathering your own data to develop strategies is the key to success in sustainable practices. So, don’t be afraid to start utilizing industry data and taking small steps in the right direction. Every small change makes a difference!
Dr. Carlos Martin-Rios
