What Sustainability in Hospitality Means & Small Steps You Can Take

Serving Arryved customers to the best of our abilities is a top priority for us day in and day out. But we’re also conscious of how our business affects the beautiful world around us and the underserved communities in our neighborhood – and we always engage in ways that align with our values and the law, of course.

CSR (Corporate Social Responsibility) and the newly common lexicon ESG (Environmental, Social, and Governance) are frequently used buzzwords in business these days. While, sure, the concept is trendy, it’s also for the better. Out of discerning respect for our partners, Arryved wants to align ourself with the other business doing good, and put our time and money where our mouth is. 

Below we dive into ESG in the hospitality industry, how Arryved practices sustainability and ethics, and small ways your business can start to do the same. 

ESG In Hospitality

ESG is essentially a measurement system for how advanced a certain business’s considerations are regarding the environment, social responsibility, and corporate government. Depending how much these three factors play in a company’s decision-making determines the likelihood of investor interest. It’s not all about revenue numbers anymore! ESG encompasses all stakeholders involved: employees, customers, governance, and the environment. 

For those in hospitality, it’s especially important to uphold these principles. Two big environmental issues the world faces are climate change and biodiversity loss, and each have a substantial impact on tourism, and therefore hospitality. Plus, food production has the biggest impact on biodiversity, which restaurants and other food-focused businesses know all too well.

We have an opportunity and responsibility to treat these three factors with care, not only to remain valuable in investors’ eyes, but also to make sure the mark we leave on the world is a positive one.

Environmental

The environmental factor in ESG includes saving energy, reducing waste, and recycling, among other things. As a business evaluates their environmental impact, they seek to conserve the natural world and to minimize their carbon footprint. 

Some considerations in determining a business’s carbon footprint include:

• Are there toxic chemicals in the company’s manufacturing processes?
• What sustainability efforts make up the company’s supply chain?
• Is the company utilizing reusable resources when they can, and recycling materials properly when they can’t?

For the businesses we serve in hospitality, environmental practices would include a brewery sustainably sourcing their ingredients and glassware, or a restaurant utilizing energy-saving technology in its warehouse. 

Social

What determines the social aspect of ESG is how a business manages their relationships with employees, suppliers, customers, and community members. In short, this is all about people. If you use good social practices, you have a positive reputation within your community, happy staff, repeat customers, and willing business partners. 

A hospitality business behaving well socially offers a family-friendly atmosphere, celebrates diversity and inclusion, and treats their employees with fairness and respect.

Governance

Governance by ESG standards is graded by a company’s leadership, executive pay, audits, internal controls, and shareholder rights. This ensures no smoke and mirrors: A company needs to be transparent in their accounting and avoid conflicts of interest in board members and politics. 

This aspect is on the shoulders of management in a business. Hospitality businesses can ensure they’re practicing good governance by employing diversity in their leadership teams and being honest with shareholders about finances. 

ESG In Your Business

We can all do better, and the beautiful thing about this movement is there’s no defined perfection. Taking thoughtful baby steps and having ongoing conversations about it with your business’s stakeholders is a great start!

First, Beware Greenwashing

Greenwashing is when businesses lead customers to believe their products or services are green, when they really aren’t. Sometimes it’s intentionally deceitful, by putting more marketing dollars behind a sustainable campaign than actually limiting environmental impact, but other times it’s good intentions that fail. Regardless, it can have a lasting negative effect on consumer opinions.

Here are some greenwashing examples from Business News Daily:

• Fluffy language: Don’t throw around words or terms with no clear meaning (e.g., “eco-friendly” or “natural”).
• Green products vs. dirty company: Watch out for hypocrisies, such as efficient light bulbs made in a factory that pollutes rivers.
• Evocative pictures: Don’t use branding images that give an unjustified green impression (e.g., flowers blooming from exhaust pipes).

As a business, seek out certifications for your products and services, such as B Corp, LEED (Leadership in Energy and Environmental Design), and TRUE (zero waste), to verify your ESG claims are accurate. 

As a consumer, you can look into a company’s certifications, as well as their partner reputations and philanthropic efforts from the past.

3 Ways Arryved Is Committed To ESG

When making business considerations, Arryved takes ESG seriously while not distracting from our core mission. We recognize there’s more work to do, but we’d like to celebrate where we are while continuing to make progress in the future. 

Here are 3 ways Arryved is practicing ESG:

1. Environmental → Recycling: Arryved is big on minimizing waste and repurposing materials that we can. We use in-office recycling and compost bins as well as reusable glassware and plates, and go above and beyond to ensure all of our resources are properly disposed of. Our resident Facilities and Office Manager sorts our packaging materials, like plastic, and takes all of it to local facilities that correctly recycle. We also encourage customers to send us old hardware so we can recycle it appropriately. (Shout-out to Brophy for all your hard work!)
2. Social → Diversity: We’re committed to creating an inclusive and equitable work environment for individuals of all genders, sexualities, and races. In addition to inclusivity training upon hire, all Arryved team members are required to complete quarterly Diversity, Equity, and Inclusion trainings as well. 
3. Governance → Education: With routine Lunch & Learns about topics like stock options, and monthly State of the Union meetings with an anonymous suggestion box, our leadership team strives to provide transparent and digestible financial information to all.

So we encourage you to join us! Let’s work together as a business community and as partners to make a positive change.

Small Steps To Implement ESG For Your Business

Don’t let the monstrosity of what a movement like this means for the future of business stop you from starting small, right now! While it can be overwhelming and even stifling, here are some ideas for how you can get started ensuring your hospitality business is being thoughtful of all stakeholders:

• Consider how you serve water. Is it in plastic bottles or cups? Can you give your dishwasher a raise and offer reusable glassware instead?
• Cut down on paper. Emailed receipts and digital QR code menus are a low-lift solution. 
• Ask your suppliers. Your establishment itself may be doing everything it can to reduce your carbon footprint. But if you’re getting your grain from a supplier who isn’t practicing sustainability, you could pay the price. 
• Raise money and awareness for a cause you care about. Whether it’s a simple jar on the counter or a donation option at checkout, small change can go a long way in making a difference.
• Be vocal about your efforts. Share on social media what you’re doing now, and what you plan to do down the road! This not only keeps your business accountable, you’ll gain a positive reputation among fans and curiosity from people that don’t yet know you. A study recently found that ⅓ of global consumers are willing to pay more for sustainable products and services, so this can drive traffic, too!

So whistle with the birds on your way to the recycling bin, give a team member a pat on the back, and have honest conversations with your stakeholders. We’re all in this together.