Our 2030 commitments
- Implement a 2030 science- based target that delivers a 46% reduction in emissions from the energy used across our owned, managed, leased and franchised estate.
- Target 100% new build hotels to operate at very low/zero carbon emissions by 2030
- Maximise/optimise the role of renewable energy
By taking decisive action to decarbonise and reduce our impact on the world, we can generate long-term business value for both our hotel owners and IHG. We aim to enhance the IHG brand and support our hotel owners in effectively managing rising operational costs, securing supply chains, and mitigating their exposure to the escalating financial risks associated with climate change.
We are targeting a global reduction in our greenhouse gas (GHG) emissions of 46% by 2030 from our 2019 baseline. This medium-term target has been validated by the Science Based Targets initiative (SBTi) as being consistent with a 1.5C trajectory recommended in The Paris Agreement. It covers our Scope 1 and 2 GHG emissions and material Scope 3 emission sources from our franchised hotels energy consumption and Fuel and Energy Related Activities (FERA).
Given IHG has a predominantly asset-light business model, with the majority of hotels owned by third parties, we’re working closely with our owners and teams across our entire estate to reduce our energy use and carbon emissions.
You can find more information on our Carbon and Energy progress on pages 28-32 of our Responsible Business Report.
Decarbonising our existing hotels
We recognise the importance of partnering with hotel owners and supporting them to not only generate profits but decarbonise and futureproof their assets to protect the long-term value of their business and reduce the impacts of climate change.
Collaborating with our hotels, we actively promote energy efficiency throughout our estate, assigning customised annual and 2025 energy reduction targets to each hotel. To motivate them to reduce their energy consumption, these targets are integrated into hotel level metrics. We track property performance through the data that hotels are required to enter into our online environmental management system, IHG Green Engage.
We continued to update our brand standards and are integrating various Energy Conservation Measures (ECMs) into the expectations of hotels that work with us. All ECMs integrated into hotel brand standards are carefully considered, taking into account costs and impact. In 2022, we established our first set of energy efficiency global brand standards, and this year introduced further ECMs into our new-build hotel brand standards globally, as well as for our existing Essentials & Suites estate in the Americas. Standards include measures for lighting controls, occupancy-sensing thermostats and heat pumps.
Find out more about how we’re decarbonising our existing hotels and discover tools for our owners on page 32 of the Responsible Business Report.Developing new-build hotels that operate at very low/zero carbon
We are taking steps to ensure that, as we realise our growth ambitions, we are working towards our carbon reduction goal. Expanding the number of new-build hotels that operate at very low/zero carbon emissions is a key part of this.
We have worked with technical specialists to develop a definition of a very low/zero operational carbon building to guide development of future IHG hotels. This has enabled us to take into account the different ways in which governments, NGOs and building industry organisations look at operational carbon to create our own definition. We have also started work on our own low-carbon hotel programme, focused primarily on new-build hotels. We expect to launch this programme in 2024.
Sourcing renewable energy
Supporting our hotels to access renewable energy is a key pillar of our decarbonisation strategy. We are exploring on-site renewable energy options and mapping renewable energy opportunities globally, including prioritising procurement of renewables in markets where we have a large presence and where renewable energy markets are mature. It also involves applying what we learn in markets where we have a smaller presence and renewables are emerging. Where we have more control over energy procurement, we are able to negotiate renewable electricity contracts for our sites.
As a result, more than a quarter of our managed estate in Europe and six of our global offices are now procuring 100% renewable electricity, including our Global Headquarters in Windsor, UK and our Americas Headquarters in Atlanta, US.
Using our voice to drive change
Our membership of organisations such as the Sustainable Hospitality Alliance (SHA), Global Sustainable Tourism Council (GSTC), the World Travel & Tourism Council (WTTC) and the Travel & Tourism Council (WTTC) and the American Hotel & Lodging Association (AHLA) American Hotel & Lodging Association (AHLA) helps promote further understanding around decarbonisation within the industry.
IHG is also the first hotel company to join the US Department of Energy’s Better Buildings Low Carbon Pilot programme, and the first to sign up to the Zero Carbon Forum (ZCF), a non-profit organisation for the UK hospitality sector that helps members to decarbonise more efficiently.
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