The Pillars of Clean Technology Innovation in the Hospitality Industry
As society comes to terms with the reality of a changing climate, a parallel shift is taking place in nearly every industry. Today, the necessity of implementing more sustainable business practices isn’t a matter of if but when.
One sector that heavily impacts the environment and strongly needs to commit to sustainable change is the hospitality industry. According to the Sustainable Hospitality Alliance, the hotel sector accounts for around 1% of global carbon emissions. Meanwhile, the EPA states that water used in hotels and other lodging facilities accounts for approximately 15% of the total water use in commercial and institutional buildings in the United States.
Some of the most common initiatives the lodging sector has adopted to reduce consumption of water include: low-flow faucets, showerheads, and other fixtures, and bath towel reuse programs resulting in reduced DHW laundry load demand. Although these initiatives have yielded significant reductions, to reach the next level of conservation and CO2 abatement, the next step includes evaluating water heating methods and transitioning to more efficient technologies and designs.
Since founding my own cleantech company in 2009, I’ve seen attitudes from industry leaders evolve steadily. To be clear, the transition to green technology will require dramatic changes to our society, infrastructure, and thought processes. We’ve relied on technology such as fossil fuels for centuries, and shifting to new, more sustainable technology will require a variety of paradigm shifts. But I firmly believe that a true transition to sustainability is within our grasp.
In order to ensure that the predicted growth of the hospitality industry does not lead to a corresponding increase in carbon emissions, hotels need to reduce their absolute carbon emissions by 66% by 2030 and by 90% by 2050, according to the Sustainable Hospitality Alliance. Based on my experience, I see four key principles that will help companies, and more specifically hotels, create a strong foundation to make this kind of change.
1) Don’t assume it is going to cost more
Change is hard, and it’s easy to maintain the status quo when there’s not a strong incentive to transform. If existing technology is working, the thinking goes, it may require a high initial outlay to revamp it. I’ve seen first-hand how industries can function, and even grow, on the backs of technologies with minimally accepted performance — ones that remain in place simply due to inertia.
Moving to sustainable technology may not require a high initial investment of capital, but even if it does, the changes will eventually pay for themselves several times over. McKinsey recently found that sustainability initiatives can improve profits and create new business opportunities. In other words, this isn’t a zero-sum game — your business can be profitable and utilize environmentally friendly solutions.
It’s no wonder investors are flocking to clean technology: Optimizing the ways an organization uses resources like water and energy is not only environmentally beneficial, but financially prudent.
Simply put, it is critical that leaders not succumb to traditional assumptions when they consider the economics of clean technology, specifically in relation to their bottom line.
2) Consider how green technology aligns with the public’s core values
Beyond the bottom-line benefits, transitioning to clean technology will improve how customers view your company. Sustainability is increasingly a global business mandate, so growing your commitments to sustainability will position your organization as a forward-looking leader rather than an organization that passively reacts to trends.
There’s also the human element as protecting our planet is a critical issue for younger workers. More than two-thirds of respondents to a 2021 IBM survey said they are more likely to apply for and accept jobs from environmentally conscious companies. They feel so strongly, in fact, that nearly half would accept a lower salary to work for such organizations — salary alone is not enough to incentivize new hires.
Overall, nearly two-thirds of American consumers have made modest-to-significant shifts toward being more sustainable in the past five years, and 85% have become “greener” in their purchasing.
Looking at the bigger picture, the more we see ourselves as interconnected the more we create a better world for all of us. As leaders, doing the right thing reflects well on our organizations, our employees, and our industry.
3) Remember that true change requires a holistic approach
A problem as large as climate change will never be solved with one set of solutions applied to one sector. We need to pursue a combination of clean technology solutions and create a hybrid approach in order to foment effective change.
Electrifying every automobile in the United States or shifting energy generation to advanced renewable sources wouldn’t eliminate greenhouse gas emission, because buildings, agriculture, and industry are also major emitters. It will take a combination of methods and sectors to improve our world, but each individual sector needs to do its part in committing to sustainable change.
4) Foster an environment of innovative thinking within your organization
Sometimes change requires a bold step in a new direction. Marginal improvements at a lower cost won’t change the world. That’s why I encourage my employees to make mistakes and get comfortable with being uncomfortable.
Everybody experiences fear, but you must create an environment where people are willing to try anyway. Surround yourself with people who are entrepreneurial, who can do more with less, and aren’t afraid to fail. Those are the people who believe they can truly change the world.
In conclusion, innovation, at its core, is an act of bravery: you must take the proverbial leap. But creating a more sustainable world — one where we are more creative, thoughtful, and pragmatic about approaches to the clean technology revolution — we must take the leap together.
ABOUT THE AUTHOR
Sri Deivasigamani is the CEO and co-founder of Intellihot, a clean technology company that’s bringing transformative, next-generation technology solutions to the built environment.