The hospitality sector in Metro Manila is increasingly integrating environmental, social, and governance (ESG) initiatives into business strategies, as industry executives say such investments can enhance profitability and asset values.
Sustainability reporting has evolved beyond financial disclosures to include environmental and social impacts across an organization's operations, according to industry experts.
ESG is no longer just a financial consideration, but a key aspect of business strategy, said industry executives during a panel discussion at the Philippine Hospitality for Sustainable Tourism Summit.
The "green premium" associated with certified buildings can strengthen a property's market positioning and potentially increase transaction values over an asset's life cycle, said a director of development at Accor Philippines.
Sustainability requirements are increasingly being incorporated into brand standards for new hotel developments, reducing operating costs through lower utility consumption and enhancing profitability.
A property in Bohol has successfully implemented solar panels to supply approximately 40% of its electricity requirements, demonstrating the benefits of ESG initiatives.
Transparency is key to engaging owners and operators in the discussion around ESG investments, said a senior director of development for Southeast Asia Pacific at Radisson Hotel Group.
ESG investments also serve as a form of asset protection by helping owners and operators manage environmental and regulatory risks, said industry experts.
The industry's growing focus on ESG comes as Metro Manila's hotel market continues to expand, with a pipeline of about 6,500 new hotel rooms through 2030.
Foreign tourist arrivals in Metro Manila rose 10.4% year on year to 1.83 million in the first quarter, driven by visitors from South Korea, the United States, and Japan.
