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- IHG’s Low Carbon Pioneers program aims to promote sustainability by encouraging carbon reduction practices across its hotels.
- The program faces challenges due to the high cost of sustainable energy practices, but IHG is working with owners to showcase long-term benefits.
- Collaboration with governments and industry bodies is crucial for overcoming barriers and advancing sustainability goals.
IHG Hotels & Resorts is making strides in sustainability with its new Low Carbon Pioneers program. CEO Elie Maalouf shared insights on this initiative, which focuses on reducing carbon emissions through energy efficiency and renewable energy adoption.
“We have a wide-ranging business plan that includes an ambition to reduce emissions,“ Maalouf explained. “It requires close collaboration between businesses and governments.” The program aims to demonstrate the viability of decarbonization to hotel owners and encourage broader adoption.
The Challenge of Change
Transitioning to sustainable practices isn’t simple for a franchised business like IHG. “The main barrier for our hotel owners is cost,“ Maalouf noted, highlighting the current expense disparity between electricity and natural gas in the Americas. Despite the challenges, the program seeks to make a compelling business case for sustainability, showing owners the potential for better property valuations and access to green finance.
Partnering for Progress
Government support is a vital component of the program’s success. “We’re committed to working with governments that can provide greater access to renewable energy for hotels,” said Maalouf. Incentives and reduced costs for carbon reduction technologies are key to speeding up the transition.
IHG’s Low Carbon Pioneers stands out by combining strict energy efficiency standards with a commitment to no on-site fossil fuels — a first in the hotel industry. “It’s setting a new sustainability benchmark,“ Maalouf emphasized. The program’s long-term goal is to expand globally, starting with regions where demand and infrastructure for sustainability are strongest.
A Future-Focused Approach
The program’s initial rollout includes three properties in Europe, but IHG is already exploring growth in other regions. “We’re focusing on new build hotels in the Americas,“ Maalouf shared. “In other markets, we’ve developed a ‘low-carbon ready’ group of hotels, prepared to switch to renewable energy as it becomes available.”
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For guests, the program enhances travel choices. “People are becoming more conscious of their impact,“ Maalouf said. By updating booking channels to highlight low-carbon hotels, IHG aims to make sustainable travel more accessible and appealing.
“Our Low Carbon Pioneers program is an important way to test, learn, and share sustainability solutions,“ Maalouf concluded. “We want to support all our hotel owners to reduce their carbon footprint, whether through big steps or smaller changes.“