When climate risks become a reality: water – Hospitality Net

Report on Climate Risk Mitigation in the Hospitality Sector through a Sustainable Development Goals (SDG) Framework

Introduction: Climate Risks as a Barrier to Sustainable Development

Climate-related risks, including water scarcity and wildfires, present significant threats to ecosystems, human health, and the operational viability of the global hospitality industry. These challenges directly impede progress toward several Sustainable Development Goals (SDGs). A recent decision by Accor to withdraw from two investments due to such risks underscores the tangible financial and operational consequences facing the sector. Addressing these vulnerabilities requires a strategic approach grounded in sustainability principles, particularly those outlined in the SDGs.

• SDG 13 (Climate Action): The increasing frequency of climate-related events necessitates urgent action from the private sector to adapt operations and mitigate impacts.
• SDG 6 (Clean Water and Sanitation): Water shortages pose a direct threat to hotel operations, highlighting the industry’s dependence on and responsibility for sustainable water management.
• SDG 11 (Sustainable Cities and Communities): The resilience of tourism destinations is at risk, requiring businesses to contribute to building sustainable and safe communities.

A Strategic Tool for SDG Integration: Double Materiality Analysis

Double materiality analysis is a critical framework for organisations to identify, assess, and manage climate-related risks and opportunities in alignment with the SDGs. It evaluates sustainability issues from two distinct perspectives, ensuring a comprehensive understanding that informs strategic decision-making and promotes corporate responsibility.

Financial Materiality: An Outside-In Perspective

This perspective examines how sustainability and climate issues affect an organisation’s financial performance and long-term value. By identifying risks such as water scarcity, flooding, or extreme weather, hotels can protect their assets and ensure business continuity, thereby supporting economic stability.

• Alignment with SDG 8 (Decent Work and Economic Growth): Proactively managing climate risks ensures long-term business resilience, safeguarding jobs and contributing to sustainable economic growth.
• Key Risks Identified:
  1. Disruption to operations from resource scarcity or climate events.
  2. Increased operational costs (e.g., water, energy, insurance).
  3. Impairment of asset values in high-risk locations.

Impact Materiality: An Inside-Out Perspective

This perspective assesses the organisation’s impact on the environment and society, aligning corporate activities with global sustainability targets. It compels businesses to take accountability for their operational footprint, from resource consumption to pollution.

• Alignment with SDG 12 (Responsible Consumption and Production): This analysis reveals how corporate activities contribute to environmental degradation, prompting a shift toward more sustainable patterns of consumption and production.
• Key Impacts Assessed:
  1. Contribution to water pollution and over-extraction (violating principles of SDG 6).
  2. Degradation of local ecosystems (impacting SDG 15: Life on Land).
  3. Generation of waste and greenhouse gas emissions.

Implementing Mitigation and Adaptation Strategies for the Goals

A coordinated approach combining internal business strategies with external collaboration is essential for mitigating climate vulnerabilities and advancing the SDG agenda.

Strategic Actions and Partnerships

Effective risk mitigation requires a combination of adaptive and preventative measures that are integrated across the business and its value chain.

• Invest in Water-Efficient Processes: Directly supports SDG 6 by reducing water consumption and stress on local resources.
• Engage Stakeholders: Educating staff, clients, and suppliers on sustainable water use promotes responsible consumption patterns in line with SDG 12.
• Foster Collaborative Action: A coordinated approach involving businesses, local communities, and public investment is crucial for building climate resilience, embodying the spirit of SDG 17 (Partnerships for the Goals).

The Role of Education in Advancing Sustainable Development

Education is a foundational pillar for achieving the SDGs. Building capacity within the hospitality sector is critical for the successful implementation of sustainability frameworks.

• Alignment with SDG 4 (Quality Education): Professional development opportunities, such as the Executive Masterclass on Double Materiality Analysis offered by Hotelschool The Hague, provide managers with the necessary tools and knowledge to integrate sustainability into corporate strategy. Educating clients and visitors about responsible consumption further contributes to this goal.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 4: Quality Education – The article explicitly mentions the importance of education for various stakeholders, including clients, visitors, hotel staff, and managers, on topics like responsible consumption and risk management tools.
• SDG 6: Clean Water and Sanitation – This is a central theme, with direct references to “water shortages,” “water scarcity,” “water pollution,” “overextraction,” and the need for “water-efficient processes.”
• SDG 8: Decent Work and Economic Growth – The article discusses how climate risks affect businesses, economies, and asset values, highlighting the need for sustainable business practices and long-term resilience to ensure stable economic growth.
• SDG 11: Sustainable Cities and Communities – The focus on hotels, which are integral parts of communities, and the risks they face from “water shortages” and “wildfires” relates to building resilient and sustainable communities.
• SDG 12: Responsible Consumption and Production – The article promotes “responsible consumption,” sustainable water use, and encourages companies to adopt sustainable practices through tools like “Double materiality analysis.”
• SDG 13: Climate Action – The entire article is framed around “climate-related risks,” including “wildfires,” “flooding,” and “changing precipitation patterns,” and discusses the need for mitigation and adaptation strategies.
• SDG 15: Life on Land – The text addresses threats to ecosystems, mentioning “wildfires” and “ecosystem degradation” as significant risks linked to corporate activities and climate change.
• SDG 17: Partnerships for the Goals – The article calls for a “coordinated approach that combines business and local action, public investment, and global climate policy,” which is the essence of forming partnerships to achieve sustainability goals.

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 4: Quality Education

  • Target 4.7: Ensure that all learners acquire the knowledge and skills needed to promote sustainable development. This is directly supported by the article’s call to “Educating both clients and visitors about responsible consumption, as well as hotel staff and managers about solutions and mapping tools.”

• SDG 6: Clean Water and Sanitation

  • Target 6.3: By 2030, improve water quality by reducing pollution. This is relevant to the article’s mention of how corporate activities can contribute to “water pollution.”
  • Target 6.4: By 2030, substantially increase water-use efficiency across all sectors and ensure sustainable withdrawals to address water scarcity. This is directly addressed through mentions of “water shortages,” “water scarcity,” “overextraction,” and the need for “investing in water-efficient processes.”

• SDG 11: Sustainable Cities and Communities

  • Target 11.b: By 2020, substantially increase the number of cities and human settlements adopting and implementing integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to climate change, resilience to disasters. The article’s focus on using “Double materiality analysis” to design “mitigation or adaptation strategies” for hotels aligns with this target.

• SDG 12: Responsible Consumption and Production

  • Target 12.6: Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle. The promotion of “Double materiality analysis” as a tool for businesses is a direct application of this target.
  • Target 12.8: By 2030, ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature. This is supported by the emphasis on “educating both clients and visitors about responsible consumption.”

• SDG 13: Climate Action

  • Target 13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries. The article’s core message is about identifying and mitigating “climate-related risks” like “water shortages and wildfires” to build resilience.
  • Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning. This is reflected in the plan to educate “hotel staff and managers about solutions and mapping tools” and the organization of an “Executive Masterclass about Double Materiality Analysis.”

• SDG 17: Partnerships for the Goals

  • Target 17.17: Encourage and promote effective public, public-private and civil society partnerships. This is directly advocated for when the article states that a “coordinated approach that combines business and local action, public investment, and global climate policy is crucial.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Number of companies using sustainability reporting tools: The article’s promotion of “Double materiality analysis” implies that the adoption of such tools by companies is a key indicator of progress towards integrating sustainability (relevant to Target 12.6).
• Implementation of climate adaptation strategies: The text discusses designing “mitigation or adaptation strategies” based on risk analysis. An implied indicator is the number of businesses that have developed and implemented such strategies (relevant to Target 13.1 and 11.b).
• Investment in water-use efficiency: The suggestion of “investing in water-efficient processes” points to an indicator measuring financial investment or the resulting improvements in water efficiency (e.g., water consumption per guest) (relevant to Target 6.4).
• Number of educational programs or participants: The mention of an “Executive Masterclass” and the general call for “educating… staff, clients, and visitors” implies that the number of training sessions held or people educated can be used as an indicator to measure progress in awareness-raising (relevant to Target 4.7, 12.8, and 13.3).
• Number of multi-stakeholder partnerships: The call for a “coordinated approach” implies that the formation of partnerships between businesses, public entities, and local actors is a measurable outcome (relevant to Target 17.17).

4. Create a table with three columns titled ‘SDGs, Targets and Indicators’ to present the findings from analyzing the article.

Source: hospitalitynet.org