Introduction
For many years, hotels and other hospitality sector businesses have used environmental certifications and sustainability claims as a way to differentiate themselves from the competition.
But with key changes to the guidelines surrounding environmental claims and labels being introduced, hotel businesses are having to rethink the way they present their sustainability credentials.
In this guide, we take a look at the European Union’s Empowering Consumers for the Green Transition Directive (ECGT), what it means for international hotel groups, and what you can do to ensure your business remains compliant, avoids misleading green claims, and demonstrates a genuine commitment to sustainability.
What Is the Empowering Consumers for the Green Transition Directive (ECGT) Directive?
The Empowering Consumers for the Green Transition Directive (ECGT) is a European legislation introduced in 2024 with the aim of strengthening consumer protection and reducing misleading environmental claims.
The regulation sets out minimum requirements relating to sustainability labels and certifications displayed to consumers, with emphasis on transparency, governance and independent verification. This helps consumers to make better-informed decisions and ensures that environmental claims are supported by credible evidence.
Why Was the Empowering Consumers for the Green Transition Directive Introduced?
In recent years, sustainability has become a deciding factor for many travellers when choosing a place to stay. In fact, Booking.com’s latest travel survey found that 85% of travellers said that sustainability is ‘important’ or ‘very important’ to them.
However, the growth of sustainability has bought with it challenges surrounding inconsistent standards, different verification methodologies and varying levels of transparency.
The ECGT Directive was introduced to establish greater consistency and standardisation to improve consumer trust in the sustainability information presented to them.
As part of the ECGT Directive, certification schemes supporting sustainability labels must demonstrate:
- Transparent and Fair Access – Terms must be transparent, fair and non-discriminatory.
- Stakeholder Consultation – Scheme requirements should be developed in consultation with relevant experts and stakeholders.
- Clear Non-Compliance Procedures – Certification schemes must have clear procedures for dealing with non-compliance, including withdrawal or suspension of certification where appropriate.
- Independent Third-Party Verification – Compliance monitoring must be carried out through an objective process by an independent third party whose competence and independence are based on recognised standards.
Who Does the ECGT Apply to?
The ECGT was introduced by the European Union but is relevant to hotel businesses that market their services to European customers and sell to them. This means that, although UK-based hotels are no longer part of the EU, they may still be affected by the regulation when targeting and attracting customers from EU countries. Therefore, hotels should be aware of the ECGT’s requirements and consider how these may influence their marketing and sustainability strategies.
What Does the Empowering Consumers for the Green Transition Directive Mean for Hotels?
Although many hoteliers may assume this is just another compliance exercise, it comes with many wider commercial implications, as well as presenting an opportunity to prove sustainability claims that can make your business more attractive to customers.
The hospitality sector is increasingly being assessed on environmental performance by corporate travel buyers, procurement teams, investors and lenders, and guests, with key stakeholders examining sustainability initiatives with more a critical eye.
So, demonstrating credible, independently verified sustainability performance is a great way to differentiate your business and improve your brand reputation.
The Benefits of the Empowering Consumers for the Green Transition Directive for Hotel Businesses
Hotels with proven sustainability credentials may benefit from:
- Stronger tender responses – Demonstrating credible, measurable sustainability credentials can strengthen tender submissions and help hotels stand out when competing for corporate travel contracts.
- Improved supplier assessments –Clear evidence of environmental performance can help hotels meet corporate clients’ sustainability requirements in supplier assessments.
- Increased inclusion within preferred hotel programmes – Strong sustainability commitments are often better positioned to meet corporate travel programme criteria.
- Greater confidence amongst travel buyers – If consumers trust your sustainability claims, they are in turn more likely to trust your brand’s services as a whole.
How Can Your Hotel Business Comply with the Empowering Consumers for the Green Transition Directive
In order to stay compliant with the ECGT Directive, hotels should plan a structured approach to both implementing sustainability initiatives and recording and reporting on them.
- Review Existing Certifications – You should understand which sustainability schemes are currently held across your portfolio and how they are verified. Investors are likely to be increasingly scrutinising the ways in which you back up your claims.
- Strengthen Energy Data Management – Collecting high-quality data is an essential step in ensuring your sustainability efforts are both effective and reported correctly. Be sure to keep data records of electricity gas and water consumption, carbon emissions (including Scope 3) and energy intensity metrics. This data will not only help you stay compliant but can also form a strong basis for future sustainability plans.
- Build an evidence base – Ensure that any environmental claims you make can be supported with documented evidence, measured performance and independently verified data where appropriate. It may also be helpful to assign responsibility for this within your team.
- Stay on top of all areas of compliance – As well as ECGT, many businesses are also required to complete mandatory ESOS and SECR reporting. Hotel businesses should understand exactly which requirements apply to them and ensure they have measures in place to collect and report accurate data within the required timeframes.
- Introduce meaningful sustainability efforts – The best way to ensure your business complies with ECGT is to adopt genuine, impactful sustainability measures that will provide you with demonstrable results. This can include things such as building efficiency upgrades including LED lighting installations, eco-friendly insultation, smart systems and HVAC optimisation, through to investing in on-site renewable generation. A great way to get started is by working with a professional consultancy to create a net zero pathway action plan which will lay out realistic steps to help you reach your targets.
The introduction of ECGT marks a shift towards greater transparency and accountability in sustainability and energy management. The hotel businesses that take a proactive approach to accountability and evidence-based claims are likely to reap the greatest rewards, especially as expectations around sustainability continue to tighten.
How Can Consultus Sustainability Support the Hospitality Sector with the ECGT Directive?
Consultus Sustainability works with hotels and other hospitality sector organisations to improve their sustainability strategies, reduce carbon emissions and collect high-quality data for ECGT and sustainability reporting compliance.
- Sustainability reporting – An essential part of overall compliance is completing mandatory sustainability reporting. If your business is required to complete ESOS or SECR reporting, our team can help you collect and submit high-quality data that can not only ensure compliance but can also help inform your wider sustainability strategy and demonstrate accountability.
- Bespoke sustainability strategies – Our Net Zero Pathway service is a great opportunity for hotel businesses to reduce energy costs, cut carbon emissions and appeal to customers and stakeholders alike. With four service levels to choose from, we can design a sustainability strategy that works for your business, no matter where you are on your net zero journey.
- Energy procurement services – Our energy division, Consultus International can help hotel chains and other large hospitality businesses get more value from their energy with energy procurement support. Whether you opt for fixed or flexible procurement, our team can help you minimise risk and find the best strategy for your business requirements and goals.
- Renewable energy implementation – Investing in on-site renewable energy technology is an incredibly effective way of demonstrating your commitment to sustainability, as well as offering a great return on investment and energy bill savings. Whether you opt for commercial solar panels or wind turbines, our sister division, Ennovus Solutions, offers end to end support, from feasibility and design to installation and ongoing support.
Whether your objective is reducing energy costs, meeting sustainability targets or responding to increasing stakeholder expectations, our team can support you with tailored strategies, tools and advice.
To find out more about the services we offer and how we can help your hotel business, get in touch with our team today.
Richard Holdsworth | Senior Business Development Manager
Richard.Holdsworth@consultus.com
