Beyond greenwashing: how hotels are stepping up their sustainability efforts

The hotel industry is at a critical juncture, balancing growth with the undeniable need for sustainability. In recent years, a growing awareness of the environmental footprint of travel and hospitality has pushed hotel owners and operators to reevaluate their operations. With increasing pressure from guests and governments, the quest for a greener, more sustainable hotel industry has never been more urgent.

Niko Karstikko, the CEO and Co-Founder of Bob W, a hospitality company redefining sustainable accommodations, recently shared his insights into the industry’s carbon emissions challenges and the need for more transparent, comprehensive carbon tracking systems. Bob W is at the forefront of developing solutions that aim to revolutionise sustainability reporting, making it easier for hotel operators and guests to understand the full environmental impact of a stay.

The emissions crisis

According to the Sustainable Hospitality Alliance, the hotel sector contributes about 1% of global carbon emissions, a figure that accounts for roughly 24% of the tourism sector’s total emissions. This number is particularly alarming when considering the rapid increase in global travel demand, which will inevitably drive up emissions unless significant changes are made. In fact, experts suggest that the hospitality industry must reduce its emissions per room by 66% by 2030 and 90% by 2050, relative to 2010 levels, to align with international climate goals.

While past estimates of hotel emissions were lower than expected, this discrepancy is largely due to outdated measurement methods that overlooked key sources of carbon emissions. Previous calculations focused mostly on direct emissions like electricity, air conditioning, heating, and laundry. 

However, the broader scope of emissions, especially those from consumables such as food, toiletries, and the construction of hotel infrastructure, were often neglected—leading to underestimates.

Comprehensive emissions tracking

One of the most significant contributions of Bob W has been the development of a tool called LEGIT (Lodging Emissions and Guest-night Impact Tracker), designed to provide a more holistic, accurate picture of the environmental impact of a hotel stay. 

Karstikko and his team realised that the existing carbon measurement frameworks, such as the Hotel Carbon Measurement Initiative (HCMI), did not adequately capture the full scope of emissions. LEGIT goes a step further by including a broader range of emission sources such as furniture and fixtures, water consumption, cleaning, waste management, and consumables like toiletries and food. 

This inclusive approach ensures that the carbon footprint of a hotel is measured comprehensively, taking into account not only energy consumption but also the lifecycle of products and services used within the property. This is especially important in an industry where indirect emissions (Scope 3) often outweigh direct emissions (Scopes 1 and 2). At Bob W, for example, Scope 3 emissions are projected to account for 93% of the company’s carbon footprint in 2023, with the majority stemming from purchased goods and services.

“We want to give both guests and operators a clear, understandable, and legitimate carbon footprint metric that covers all emission-generating activities,” says Karstikko. “This includes everything from furniture procurement to the food in the rooms. Our goal is to create an emissions metric that is as easy to understand as the calorie count on a cereal box.”

As the hospitality industry begins to understand the complexities of carbon emissions, the need for transparency becomes even more urgent. While many hotel brands are beginning to report their carbon footprints, this data is often buried in lengthy environmental, social, and governance (ESG) reports, making it difficult for guests to easily grasp the environmental impact of their stay. Karstikko emphasizes that transparency is key in building trust with today’s sustainability-conscious travelers.

“Guests are increasingly aware of the environmental impact of their choices,” Karstikko explains. “They want to know exactly how their stay contributes to the planet’s carbon footprint. If we are to meet these expectations, hotels need to move beyond vague sustainability claims and provide real, verified data.”

To this end, Bob W is committed to improving its carbon data year over year, working closely with third-party sustainability consultants like Furthr to ensure that its emissions measurements are accurate. The company also aims to make its emissions data publicly available, encouraging other hotel operators to adopt similar practices.

The role of LEGIT

LEGIT’s comprehensive approach to emissions tracking has already revealed some surprising insights. For example, despite Bob W’s use of renewable electricity for most of its properties, the company’s carbon footprint is still significantly impacted by activities like laundry and the procurement of consumables such as toiletries and food. These items are frequently replenished, and their supply chain emissions, including transportation and packaging waste, can add up quickly.

By accounting for these indirect emissions, LEGIT provides a more complete picture of a hotel’s environmental impact. But Karstikko acknowledges that the methodology isn’t perfect, especially in its first year of implementation. “We know that our numbers aren’t flawless, and we’re working to improve them every year,” he says. “But we’ve shown that it’s possible to get granular insights into emissions even with limited data, and we hope this encourages other operators to do the same.”

As more hotels begin to adopt tools like LEGIT, Karstikko believes that the entire industry will be able to improve its sustainability reporting, leading to more accurate, transparent, and comparable data on carbon emissions. This shift will not only help operators reduce their environmental impact but also empower travelers to make more sustainable choices.

The future of hotel sustainability looks promising, but it requires more than just superficial greenwashing. According to Karstikko, sustainability is expected to evolve from a “nice-to-have” feature to a core expectation for guests. Over the next decade, travellers will increasingly demand transparent sustainability reporting, enabling them to make informed choices about where they stay. Hotels aiming for net zero will need to move beyond carbon offsetting to focus on real emission reductions, such as adopting 100% renewable energy, electrifying heating and cooling systems, and implementing circular supply chains.

“I believe that sustainability will become a key differentiator in the hospitality industry,” Karstikko says. “Guests will be looking for greener stays and will choose accommodations that provide credible, data-backed sustainability claims.”

To support this evolution, Bob W has made its LEGIT methodology available to other hotels, inviting open dialogue and collaboration. “Collaboration is key,” says Karstikko. “If we’re able to measure and reduce our impact, then so can others. Let’s work together to create a sustainable future for hospitality.”

The need for change

As the global demand for travel continues to grow, so too must the hotel industry’s commitment to sustainability. By adopting more accurate emissions tracking systems like LEGIT and fostering transparency, hotels can not only reduce their environmental impact but also build trust with guests who are increasingly concerned about the planet’s future. The shift towards a more sustainable hospitality industry may be challenging, but it is also necessary—and the time to act is now. 

“This is an opportunity for the industry to step up, take the lead, and set the standard. If we don’t, regulators will,” Karstikko concludes. The future of the hospitality industry may very well depend on how well it embraces this challenge.