Large hospitality groups are increasingly embedding environmental, social and governance (ESG) principles into their operations, reshaping how hotels are designed, built and managed.
The trend is no longer limited to sustainability efforts around energy use or waste management. Instead, ESG is now influencing broader decision-making, from brand positioning to community engagement and the guest experience.
This pivot is most visible in the launch of new hotel brands that foreground ESG credentials as a key part of their identity. Operators are actively seeking to address a more conscious traveller base — guests who expect properties to go beyond the standard “green” checklist and demonstrate social impact, cultural sensitivity and ethical governance.
Big names in the industry, such as CapitaLand’s The Ascott Limited and City Developments’ Millennium Hotels and Resorts (MHR), are leading the push in placing ESG at the heart of hospitality brand development.
Whether through sourcing local materials for construction, ensuring equitable hiring practices or working with local communities on land stewardship, ESG integration is being built in from the outset.
Guests, in turn, are being drawn into the process. ESG-aligned properties are reframing their interaction with travellers by offering greater transparency in their sourcing. Some properties even share carbon footprint disclosures with guests, along with options to directly support local initiatives.
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Technology plays a role too, enabling real-time tracking of energy usage or rewarding sustainable guest behaviour with loyalty points.
The shift also reflects changing investor and regulatory expectations. ESG performance now has direct implications on access to financing, valuation and reputation. Asset owners and developers are therefore adopting internationally recognised green building frameworks such as LEED, BREEAM or EarthCheck certifications to benchmark and disclose their commitments.
The move towards ESG is no longer a niche or premium offering. It is becoming the default expectation in new hotel developments. As hospitality groups build their next generation of properties, ESG is not just a box to tick, but a defining part of their business model and long-term strategy.
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Sustainability on a platter
As ESG principles reshape global hospitality, MHR is making tangible progress on the environmental front, particularly in food waste reduction. The group is stepping up its efforts across its global portfolio to achieve zero food waste, leveraging technology, partnerships and operational redesign.
In Singapore, MHR recycled nearly 100,000kg of food waste into greywater in 2024. This diverted waste from incineration plants and landfills, while an additional 500kg of surplus food was redistributed through a local social enterprise app, Treatsure. These efforts are equivalent to preventing over two tonnes of waste annually or equivalent to more than 3,100 meals.
In the UK, the group processed 180,000kg of food waste into 180 tonnes of biofertilisers last year, avoiding an estimated 126 tonnes of carbon dioxide emissions. Across its hotels in London, Liverpool and Manchester, staff were also trained in waste separation protocols to enhance recyclability, with over 1,000 employees completing the programme since May 2024.
The group’s strategy includes changes to kitchen operations, such as sustainable procurement, smaller buffet plates and AI-enabled food tracking. For instance, Copthorne Tara Hotel London Kensington replaced 12-inch buffet plates with 10-inch versions, encouraging portion control.
Closer to home, M Social Hotel Singapore will pilot AI vision recognition for food waste analysis by mid-2025.
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MHR’s six Singapore properties, including M Hotel, M Social and Grand Copthorne Waterfront, now use automated digesters and prepare food based on real-time bookings to avoid overproduction. Unused ingredients are repurposed creatively; lobster shells and prawn heads are turned into sauces, while versatile ingredients are used across multiple meal services.
Globally, surplus food is donated, sold or served in staff canteens, while seasonal, locally sourced menus help reduce the carbon footprint. The group also launched the #MillenniumGreenStay campaign to involve guests in its sustainability mission through towel reuse, waste sorting and water conservation.
“Sustainability is not just a commitment, it is a responsibility,” says Saurabh Prakash, interim chief operating officer and chief commercial officer of MHR. “Every meal saved, every resource conserved and every conscious decision made brings us closer to a greener future.”
ESG on the balance sheet
For Ascott, integrating principles into the core of operations is no longer optional. That integration at Ascott is being led by one person across both functions — Beh Siew Kim, chief financial and sustainability officer (CFSO) of CapitaLand Investment’s lodging arm.
Her dual role reflects a growing consensus in the industry that sustainability and financial performance must be aligned.
“I see my work as bridging two critical worlds — financial performance and sustainability — ensuring that our growth isn’t just profitable but also purposeful,” says Beh. “Businesses thrive when they create value beyond the balance sheet, shaping a legacy that benefits future generations and positively impacts society.”
Under her oversight, Ascott has embedded ESG considerations into development, investment and operational frameworks. Sustainability clauses are now standard in owner agreements, with over 80% of new deals signed in 2024 containing green building certification requirements.
“This initiative involves working closely with owners to achieve green building certifications and build long-term resilience against evolving regulations and industry standards,” she adds.
The strategy has yielded measurable results. As of February, 25% of Ascott’s portfolio is certified under Global Sustainable Tourism Council-accredited (GSTC) bodies, including 90% of its properties in Singapore. Country-wide certifications have also been secured in Thailand, Malaysia and the Philippines.
“This milestone is a testament to the dedication of our teams and our ongoing sustainability efforts under Ascott CARES, our comprehensive sustainability framework that aligns with GSTC criteria and embeds sustainability into every aspect of our operations,” says Beh.
Launched in late 2024, the Ascott CarbonClear Initiative (ACI) brings science-based targets into play. Every property is assigned energy and carbon reduction goals, tracked through country-level scorecards. The company is targeting a 46% reduction in Scope 1 and 2 emissions, and a 15% cut in energy consumption intensity by 2030.
“Through ACI, we actively engage stakeholders to ensure alignment, providing clear direction, performance tracking and guidance to bridge Ascott’s sustainable ambitions with realities. We tailor our solutions to address the specific needs across diverse owner profiles, local markets and brands,” says Beh.
Technological pilots play a role in these reductions. At Ascott Orchard Singapore, an AI-powered cooling system delivered a 4% improvement in daily performance, potentially saving 43,000 kilowatt-hours (kWh) a year. Several properties in Japan, Belgium and the UK now run entirely on renewable electricity.
Ascott’s approach also incorporates social sustainability. Beh leads Ascott’s work in disability inclusion, both in guest experience and hiring practices. “We see accessibility as a lived experience, and this commitment is embedded within the ‘Respect’ pillar of our Ascott CARES framework,” she says.
A hospitality-specific disability inclusion training course was launched in mid-2024, and nearly 60% of Ascott’s properties now display accessibility information online.
Beh’s unique position allows her to unify sustainability ambitions with financial discipline. “A commitment to corporate responsibility inherently contributes to the long-term financial health and resilience of a company,” she says.
“We have a responsibility to lead by example through inclusive design, embracing responsible sourcing and finding new ways for our teams and guests to contribute to something bigger than themselves,” adds Beh.
Sustainable reporting
Banyan Group, formerly Banyan Tree Holdings, is reaffirming its sustainability-first strategy with the release of its 2024 sustainability report, titled “One Banyan, One Sustainable Future”. Now in its 19th edition, the report outlines progress across key ESG areas, from emissions reduction and waste management to marine conservation and community upliftment.
Rooted in its founding mission of “Embracing the Environment, Empowering People”, the Singapore-listed hospitality group has made tangible strides in operational sustainability.
Emissions intensity per occupied room fell by 5.7% y-o-y, supported by upgrades in lighting, cooling and control systems, and increased deployment of solar power. Water efficiency also improved by 5.1%, driven by leak detection, infrastructure improvements and water reuse systems.
The group’s zero-waste ambition is gaining traction. In 2024, 28% of total waste was diverted from landfills, a five-point improvement from the previous year. Efforts included food composting, upcycling and redistribution programmes.
Beyond environmental metrics, the group continues to invest in people and communities. Its Seedlings mentorship programme benefitted 93 young individuals, while over 2,500 internship opportunities were created across its global footprint. Meanwhile, Banyan’s artisan network expanded to include 306 communities, supporting rural economies through heritage crafts and commissioned work.
Conservation remains a key focus. In the Maldives, the group’s marine conservation lab was expanded, and in China, Banyan partnered with the China Environmental Protection Foundation to launch a Coral Reef Restoration Project. These initiatives reflect a commitment to regenerative tourism over extractive practices.
Banyan Group’s Our Marine Lab in the Maldives reflects a commitment to regenerative tourism over extractive practices
To mark its 30th anniversary, Banyan Group launched the Greater Good Grants, funding 30 associate-led projects that align with the group’s sustainability priorities. These projects span environmental, social and economic development themes in the communities where the group operates.
“Sustainability is a cornerstone of Banyan Group’s purpose, and our journey will continue to evolve as we look to scale increasingly impactful practices in the upcoming years — with more ambitious climate action, deeper community engagement and greater support for our associates to take action,” says deputy CEO Ho Ren Yung.
“To achieve this, we have introduced key performance metrics aligned with our identified material issues for all senior-level associates in front-line and corporate roles, empowering them to champion our ambitions. As we track our progress in 2025, we will further refine our associates’ roles to more meaningfully support the integration of responsible practices across our operations,” she adds.
With over 90 properties under 12 brands, Banyan Group’s next chapter builds on a legacy of responsible hospitality, now underpinned by data, local empowerment and regenerative intent.
Brand by design
Starwood Hotels, formerly SH Hotels & Resorts, is weaving sustainability into its identity as tightly as it does luxury and design. Marking its 10th anniversary in March, the group’s rebranding reaffirms how ESG principles define its ethos, shape its operations and drive its expansion.
“At Starwood, we aim to marry this trusted legacy of youth, innovation and guest focus with our modern, tech-enabled and personalised approach to hospitality,” says Barry Sternlicht, founder and chairman of Starwood Hotels. “We’re doubling down on our mission to inspire, innovate and make a difference — for our guests, our partners and the planet.”
That mission is embodied most clearly in the 1 Hotels brand, which champions biophilic design and eco-conscious development. Properties such as 1 Hotel Seattle and 1 Hotel & Homes Melbourne are built using reclaimed materials and adaptive reuse of historical structures, aligning architecture with regional ecology and sustainability targets. Across the portfolio, Starwood has already offset over 46,000 tonnes of emissions.
According to Starwood, every guest touchpoint is designed with ESG in mind, including zero-waste events, upcycled amenities, refillable water stations and hyper-local sourcing through plant-forward culinary programmes. In 2024 alone, Starwood Hotels recycled 3.4 million pounds of materials and donated 52,681 pounds of food to more than 35 charities.
Even loyalty is evolving through an ESG lens. 1 Hotels’ MISSION programme reimagines loyalty to include personal impact, allowing guests to contribute to environmental or social causes as part of their stay. “It’s about giving guests a way to make their stay matter — not just to them, but to the world,” says Sternlicht.
Treehouse Hotels, the group’s youngest brand, embraces sustainability through storytelling and playful design. At the same time, Baccarat Hotels focuses on heritage craftsmanship and timeless elegance, both supported by green operations and community initiatives.
Across the brands, ESG is not an afterthought but a foundational pillar — one that is reshaping the way the group grows, hires, builds and engages. Starwood plans to increase its headcount from 3,900 to over 5,000 employees this year.
“Our journey has just begun,” says Sternlicht. “As we expand into new markets and continue to reinvent the hospitality landscape, we hope to build a legacy that will inspire future generations.”
Swisstainable efforts
While hotel groups in Asia and around the world are embedding sustainability into brand strategy and operations, Switzerland is pushing the agenda at a national level. The government-backed Swisstainable initiative, launched in 2021 by Switzerland Tourism, offers a model for holistic sustainable tourism driven by public-private alignment.
Swisstainable focuses on all three pillars of sustainability: ecological, economic and social. This is designed to make sustainability accessible and actionable for both industry stakeholders and travellers.
“We take care of sustainability and you can enjoy your holidays” is the campaign’s core message. Rather than being a standalone label, Swisstainable consolidates existing certifications and maps them into a simple three-level classification system for tourism providers.
The campaign’s description reads: “Our nature is our greatest asset. That’s why we protect it. With its mighty mountains, turquoise-blue lakes and enchanted forests, Switzerland is a unique travel destination. Our nature provides energy, and it has to stay that way. For us, and for all generations to come.”
Over 2,200 companies are now part of the programme. To qualify for higher levels — namely Level II (engaged) or Level III (leading) — businesses must present valid third-party proof of sustainability. This framework encourages accountability while reducing confusion around competing sustainability labels.
Switzerland also incorporates sustainability into its infrastructure. An example is the world’s steepest funicular railway, the Schwyz-Stoos line, which harnesses energy during braking and repurposes it to heat water for a nearby hotel. This alone saves approximately 41,000 litres of heating oil annually.
Transport plays a crucial role too. Swiss Federal Railways (SBB) operates on 100% renewable energy, while PostBus, the country's largest bus company, plans to fully electrify its fleet of 2,300 vehicles by 2040. The country's synchronised public transport timetable, a model of efficiency since 1982, ensures seamless, low-carbon connectivity across rail, bus, tram and ferry networks.
On the policy front, Switzerland Tourism (ST) operates under a federal public law mandate to market the country domestically and abroad. It works alongside the Swiss Tourism Federation (STF), the umbrella organisation that represents tourism interests in political and regulatory discussions.
As more destinations race to showcase sustainability credentials, Switzerland’s integrated approach, combining government policy, private sector adoption and guest engagement, offers a proven and scalable template for others to follow.
