IHG’s Sustainability Struggles and Progress
IHG Hotels & Resorts is on a challenging journey toward greener operations, yet the path to sustainability in today’s dynamic world is far from straightforward. Under its “Journey to Tomorrow” responsible business plan—launched in 2021 with goals to care for people, communities, and the planet—the global hotel giant set ambitious targets for carbon and energy reductions by 2030. However, a recent update from IHG’s chief sustainability officer, Catherine Dolton, reveals both noteworthy progress and significant setbacks in the company’s eco-friendly efforts.
In 2021, IHG committed to reducing its absolute Scope 1 and 2 greenhouse gas emissions, along with Scope 3 emissions from its franchised hotels’ energy consumption and related activities, by 46% by 2030. Despite implementing numerous programs designed to improve energy efficiency and cut emissions, overall greenhouse gas emissions have increased by 7.2% compared to the 2019 baseline. This unexpected rise is attributed to several external challenges that continue to hamper the company’s progress.
Dolton cites slow progress in developing reliable clean energy grids worldwide, a lack of a commercially viable landscape to support energy efficiency, and the rapid growth of IHG’s hotel brands as key factors. “For our hotels to decarbonize at pace, we need to see some really big shifts in the external market,” Dolton explained. “Unfortunately, a number of these are not within our control and are not moving quickly enough. Despite our ongoing efforts, we are not on track to meet our 2030 target.”
While the overall emissions goal remains elusive, IHG has achieved measurable improvements on an intensity basis. Per available room, energy use has been reduced by 9.4% and emissions have fallen by 11.5% compared to 2019. These gains illustrate that internal initiatives are making a positive impact, even if they have not yet translated into the absolute reductions hoped for in the company’s aggressive targets.
IHG’s leadership remains undeterred by these challenges. “Because we are not on track to meet our target does not mean we will stop trying,” Dolton affirmed. The company is actively re-evaluating its sustainability strategy and is committed to transparent reporting of its progress. IHG is leveraging its scale and market position to influence broader change across the hospitality industry, advocating for improvements in external infrastructures that are vital for achieving significant decarbonization.
The company’s extensive mapping work has also identified specific areas where it can exert greater control and influence. By focusing on those aspects, IHG hopes to align its internal actions with rapidly evolving carbon accounting standards and validation criteria. “Focusing on what IHG is actually able to control and influence, and ensuring that our actions remain relevant across the geographies we serve, is essential,” Dolton noted.
Looking ahead, IHG plans to continue its many initiatives to assist hotel owners in reducing carbon emissions. The company will also keep re-assessing its targets in light of industry developments and changing global conditions. Although IHG is unlikely to meet its 2030 goals as originally set, its commitment to sustainable operations and its drive to adapt its strategies demonstrate that the journey to a greener future is ongoing. With continued dedication and external market shifts, IHG remains hopeful that its sustainability efforts will eventually lead to meaningful, long-term progress.
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