The hospitality industry increasingly faces a pivotal challenge: how do hospitality businesses become more sustainable while ensuring profitability? The hospitality sector, encompassing hotels, restaurants, resorts, and more, has a significant impact on the environment due to its consumption of resources, production of waste, and energy usage. Customers are increasingly environmentally-savvy, and will often prefer businesses that align with their values. This puts even more pressure on businesses to improve their sustainability credentials.
In this article, we will delve into the environmental challenges faced by the industry, why sustainability matters, and practical steps that businesses can take to become more eco-friendly.
Challenges Faced by the Hospitality Industry
The hospitality industry grapples with several sustainability-related challenges that include food waste, energy inefficiency, water pollution, carbon emissions, and environmental pollution. One of the most glaring issues is perhaps food waste. A study by Boston Consulting Group found that globally, over AUD$1.75 trillion is lost due to food waste annually. In Australia, a staggering 35% of the food produced goes to waste. This amount is enough to fill a massive stadium, like the Melbourne Cricket Ground, nine times over.
Energy waste is another formidable challenge. Energy consumption in the industry is significant, particularly in areas like heating water and maintaining comfortable indoor temperatures. It can be difficult for businesses to accurately assess whether waste costs or energy costs are more significant in their operations. A key question for businesses is: Are you aware of the breakdown of your operational costs?
Why Sustainable Practices Matter
Sustainability is not just a trend; it’s a vital consideration for any business, especially in the hospitality sector. Customers are increasingly valuing sustainability when making choices about where to spend their money. According to a study by Booking.com, a whopping 83% of global travellers consider sustainable travel to be important, with 61% stating that the pandemic has heightened their desire for sustainable travel experiences. Businesses that embrace sustainability are not only contributing to a greener future but also appealing to a growing market segment that values conscious consumerism.
What You Can Do
Consider investing in an effective waste management solution, such as Green Eco Tech’s WasteMaster. Not only will it bring about 1.6 times more environmental benefits than investing in solar alone, it also gives businesses tangible returns on investment.
Explore renewable energy sources such as solar panels and energy-efficient equipment. Focus on areas like hot water system heat pumps over gas, which often account for a substantial portion of energy costs.
Bioenergy, derived from organic waste, presents a compelling opportunity for a full-circle of waste management and energy generation. It’s a way to simultaneously tackle waste issues and find alternative energy sources.
How Environmental Upgrade Finance (EUF) can help
EUF offers a unique way to fund sustainability initiatives. It’s a financing option that allows businesses to invest in eco-friendly upgrades, like energy-efficient equipment, without a significant upfront cost.
Many hospitality businesses have successfully used EUFl such as Yarra Valley Estate (VIC) or Cafe Martini (VIC).
Ready to upgrade with EUF?
Our team can guide you on the eligibility process, but if the work improves the energy, water, environmental efficiency or sustainability of existing buildings, you will likely qualify!
Get in touch with our team of experts to find out how you can utilise Environmental Upgrade Finance for your business’ sustainable upgrades.
1300 432 044
info@sustainableaustraliafund.com.au
The Victorian Energy Upgrades (VEU) program is an initiative established by the Victorian State Government. The scheme aims to promote energy efficiency by encouraging households, businesses, and indu..
With increasing pressure from the government and customers to be more environmentally conscious, many businesses are finding ways to be more sustainable in their operations. Businesses need help ac..
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