GSAIR EMEA 2023 | Page 9

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Furthermore , sustainability and climate disclosures must be connected to financial reports , detailing the projected impact on cash flows , capital expenditure , profits and losses . Investors and financial markets will use this information to assess asset values . The provision of capital , be it equity or debt , will soon rely on climate and sustainability disclosures as much as on financial statements . As with the introduction of globally accepted accounting principles , IFRS / ISSB sustainability standards will very quickly trickle down to businesses of all sizes .
So , what does all this mean for the lodging industry ? It means that sustainability must be embedded throughout the entire business , with responsibility shared by all the functions and executives in the organisation including the CEO , Chief Financial Officer , Risk and Compliance Officer , HR , the investment committee , and the board .
will need to re-engineer the way we design , construct , refurbish and operate our buildings . We will need new controls and , processes , including board level oversight , applying the same level of rigour to nonfinancial information as we apply to formal financial statements .
With more than 600 green certification programmes , the majority of which are based on self-reporting , investors are at a loss when it comes to the reliability of information and comparability of operational , asset or portfolio performance .
That is why we established the Energy & Environment Alliance ( EEA ); to unite hospitality and lodging industry leaders and to advocate a standardised approach . In doing so , we aim to prioritise initiatives that are scientifically robust and commercially sustainable and discourage those that are not . 3
This is the start of a challenging period of transformation for our industry . It ’ s a period in which we
3 . Over the past few months , we have worked in partnership with Kings College London to launch the first ESG Executive Education programme specifically for hospitality industry leaders . It will cover all the upcoming new regulation and much more besides , including the implications for attracting capital . So , if you are responsible for managing or investing in hospitality , and you want to be thoroughly briefed , please sign up .
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