Guest blog by Net Zero Now

The climate crisis is no longer a distant threat but is already having a very real impact on the hospitality industry. That impact is both direct, resulting in increased costs as supply chains are put under increasing pressure and the cost of energy increases, and indirect, driving new attitudes and expectations of customers, employees, and investors.

But with these challenges come opportunities – to improve your bottom line, to establish yourself as a leader in an increasingly eco-conscious market and to increase the value of your business.

Understanding the Impact of Climate Change on Hospitality

The hospitality industry is uniquely vulnerable to the effects of climate change. Rising temperatures, extreme weather events, and shifts in global ecosystems directly affect the supply chains that businesses rely on, resulting in higher costs and lower / less reliable availability.. Energy prices are also likely to soar as demand for cooling increases and fossil fuel resources become scarcer.

Indirectly, the climate crisis is changing the attitudes of the people who make your business thrive – your customers, your employees and your investors.

• Consumers are increasingly seeking out businesses that align with their values, particularly when it comes to sustainability – 69% of consumers worldwide have changed the products and services they use due to concern about climate change and 64% of British consumers willing to pay up to 10% more for sustainable foods and drinks (YouGov, 2024).
• Employees, especially younger generations, prefer to work for companies that take meaningful action on climate issues – 60% of Britons agree that climate change is the biggest threat to civilisation, with this sentiment being particularly strong among Gen Z (70%) and Millennials (63%) (YouGov, 2024).
• Investors are placing greater emphasis on environmental, social, and governance (ESG) criteria, meaning businesses that credibly address their environmental impact will have access to more funding and will receive a premium valuation of their business (IMD, 2023).

Businesses also face increased regulatory pressure. In the UK, larger businesses (£36m+ t’over) are already required to report Scope 1 and 2 emissions under the Streamlined Energy and Carbon Reporting (SECR) regulations. These requirements are expected to expand in the near future, reducing the threshold to include more businesses and increasing the reporting requirements to include Scope 3 emissions (the emissions from your supply chain, including all the food and drink you buy throughout the year).  This is particularly relevant to the hospitality sector which contributes up to 15% of the country’s greenhouse gas emissions (Net Zero Now, 2024, and where Scope 3 emissions account for c.70-95% of emissions, the vast majority of which comes from the food served (see Figure 1).

Figure 1:  Emissions Sources from different types of hospitality business

Source:  Net Zero Now Customer analysis; Cool Food 2022

The Challenge and Opportunity of Tackling Scope 3 Emissions

As Figure 1 also shows, as an industry, we have a long way to go to meet the 2030 targets for carbon emissions per meal.  Getting anywhere near these targets will take more than removing plastic straws and adding a few LED lightbulbs, hospitality businesses need to understand their full carbon footprint, including Scope 3 emissions, and find ways to minimise their climate impact.

I know what you’re thinking – “it’s too expensive”, “it’s too complicated”, “we’re too busy” – and until recently, you might have been right.  But…

• It’s cost effective: Quite apart from being the right thing to do for your planet, taking positive climate action is the right thing to do for your business. Access to the Net Zero Now Carbon Accounting and Climate Action platform is available from c.£100 per site per year, while the resulting reduction in energy and water use, food waste, staff attrition, etc can save the average site thousands (UK Hospitality estimate the average pub / restaurant could save up to 20% on energy bills through energy efficiency measures alone)
• It’s straightforward: The global guidelines on “carbon accounting” are undeniably complex, but thanks to Coca Cola, Pernod Ricard, Heineken UK, The Sustainable Restaurant Association and many others, business are now able to follow the Net Zero Hospitality Protocol – an industry standard methodology for measuring and reporting emissions that ensures consistency of measurement across the sector as well as clarity on what and how to measure your emissions
• It’s quick & easy: As a Zonal customer, this is where you have a huge advantage. Zonal’s new partnership with Net Zero Now allows you to measure the largest part of your carbon footprint – the food and drink you have bought throughout the year, without lifting a finger.  By integrating Zonal technology with Net Zero Now’s carbon accounting platform, we can provide you with accurate, detailed and regular analysis of your carbon emissions through the Net Zero Now platform.  Where the data is available, we can even provide this on a site by site basis with no additional work from you.

and , as if all of the above wasn’t enough

• It’s good for your business: The Net Zero Hospitality Protocol includes criteria for Certifying your business, first as “On The Road to Net Zero” and ultimately as a “Net Zero” business, giving you a clear and credible way to communicate to your customers, employees, investors and other stakeholders and access the commercial benefits of taking positive climate action.

Ready to turn the climate challenge into a business opportunity? Discover how Net Zero Now’s integration with Zonal can help you accurately measure, manage, and reduce your carbon footprint. Start your journey towards sustainability today—contact the Zonal team and see how we can support your business in leading the way to a net zero future.

Sources:

• British attitudes towards sustainability in 2024: Key insights from YouGov data
• Climate change: change to consumer behavior 2019 | Statista
• Sustainable carbon credits strategy for the hospitality industry | Deloitte UK
• From data to decarbonisation: A roadmap for hotels to reach net zero | SMS
• Urgent action needed for a Net Zero hospitality sector, says new report
• Top 5 Ways for Hospitality Businesses to Reduce Energy Usage – Unyfi