Until recently, it was the norm to reward leaders for delivering profits to the exclusion of all else.

Today, there is growing evidence that leaders who focus on triple bottom-line accounting — people, planet, profit, or PPP for short — are generating higher value than their non-PPP peers.

The current and next generation of leaders have an enormous opportunity — and need — to improve our impact on the planet.

Here are a few perspectives on what good leadership might look like for the hospitality industry.

Leaders committed to environmental stewardship will have a deep understanding of the ecological impact of hotel operations. They will prioritize a reduction in operational and embodied carbon and waste, implement energy-efficient practices and promote responsible resource management.

Patagonia has been a role model for the garment industry for decades. Some hoteliers are on the journey to improve building and operational standards, such as Six Senses, 1 Hotels and United Kingdom brands Room2 and Zeal Hotels.

Leaders will take stakeholders with them on their carbon-reduction journey. This is not a time to compromise — legislation and investors are requiring higher standards.

Smart leaders have one eye on the future, assessing trends and scenario planning. Not every leader needs to be a visionary, but every leader needs a future-proofed business plan. We need to adopt and/or innovate solutions for emissions reductions, whilst maintaining the requisite level of customer service.

When SV Group developed its award-winning extended-stay and hotel concept Stay Kooook, technology was a unique selling point. When they could not find the right solution, they developed their own, launching the award-winning Like Magic, a data-driven, user-centric, white-label digital platform. The data collected is facilitating operational efficiency in waste, water and energy, improved productivity and customer-experience optimization.

Businesses are recognizing the power of “co-opetition,” a term coined for the strategy of collaborating with the competition.

Partnerships, associations and cross-industry dialogue will be important mechanisms through which climate risk and regulation can be assessed and addressed.

The Paris Agreement discussions called for “remarkable partnerships.”

Get involved with the Energy and Environment Alliance and the Sustainable Hospitality Alliance. This will stimulate much-needed innovation and adaptation activity.

The pandemic was our most recent lesson in adaptability, resilience and crisis management.

Leaders need to continue to hone these skills and build teams with similar flexibility as we navigate unpredictable weather, geopolitics and operating conditions.

Ethical leaders build trust with their stakeholders and a deeper resilience to the business as a result.

The “S” in ESG stands for social. It reflects the growing importance of social responsibility such as fair labor practices, diversity, inclusion and community engagement.

Many years ago, Anita Roddick, founder of The Body Shop, gave the keynote speech at the International Hotel Investment Forum.

She was electric because she was practicing what she preached.

You couldn’t hear a pin drop with all the awkward foot shuffling as she challenged our industry on our track record.

Read her autobiography “Business as Unusual” and be inspired.

Leaders differentiate themselves through using appropriate communication tools to facilitate change.

Milena Nikolova of BehaviourSMART uses behavioral-economics techniques to help travel enterprises and destinations make sustainability effortless, non-negotiable and profitable.

She is a fan of nudging.

For example, increasing the visibility and appeal of tap-water facilities to encourage guests to refill water bottles rather than buy single-use plastic bottles.

Leaders can use different tools to inspire action rather than impose it.

Back to Anita Roddick.

She was transparent about the highs and lows of effecting change, trying to do things “right” and measuring impact.

Sometimes we get it wrong.

We have watched difficult chapters unfold — data breaches, service issues, human tragedies, etc..

The companies and the leaders that weather these storms are well-advised not to tackle the problem with caveats and defensive statements, but with humility and demonstrating learning/progress.

Be transparent about your journey.

It is great to see more published ESG reports.

CitizenM’s website lists four years of ESG and Global Reporting Initiative reports; Archer Hotel Capital launched its second in July; The Social Hub lists its progress from 2021 and 2022, and Edyn published its first impact report in June.

One caveat: An impact report is a powerful document, so ensure it is a true representation of what you are achieving and collectively working to achieve.

Keep collecting the data.

Finally, a passionate plea: Keep learning. Effective leaders and their teams are lifelong learners.

The field of sustainability is evolving rapidly, so invest in good-quality learning across all levels of your organization.

Have you heard about Kate Raworth’s concept Doughnut Economics and what it might mean for your hotel investments?

Do you know how to incorporate “circularity” into your development, operations and supply chain?

What are the options to mitigate the risk of asset value erosion or stranded assets?

Can you explain what your Scope 1, Scope 2 and Scope 3 emissions are?

What does “net zero” even mean?

Keep learning. Effective change requires collective understanding of the need for change, the process to achieve it and the desired outcome.

We have had the clearest call so far from the world’s best climate scientists — listen to Professor Johan Rockström, if you never have — conservationists, non-governmental organization executives and others.

We need a generation of leaders who will lead on more than profit.

Individually, we also need to act.

Don’t get left behind. Get on the train. Be part of the solution.

Katharine Le Quesne is managing director of business advisers HoCoSo and a lecturer at Glion Institute of Higher Education.

The opinions expressed in this column do not necessarily reflect the opinions of Hotel News Now or CoStar Group and its affiliated companies. Bloggers published on this site are given the freedom to express views that may be controversial, but our goal is to provoke thought and constructive discussion within our reader community. Please feel free to contact an editor with any questions or concern.

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