The 5 Principles of an Effective Sustainability Management System

In recent years, sustainability has cemented its place at the forefront of many hoteliers’ growth strategies.

This is not surprising, given that 75% of global travellers plan to embark on more eco-friendly trips [1], and the sustainable tourism market is set to balloon from USD 3.15 Trillion to an estimated USD 7.74 Trillion by 2031[2]. Therefore, accommodation providers need to stay ahead of the curve if they want to continue welcoming globetrotters to their facilities.

One of the best ways these businesses can demonstrate sustainable practices is by becoming certified and introducing an effective sustainability management system. However, with such a diverse range of operation styles and the size of lodgings, can smaller boutique establishments keep up with international brands in the race to become more sustainable?

In this article, we will discuss the tenets of an effective sustainability management system, how these align with a globally recognized sustainable tourism certification, and why any accommodation provider can create a system that works for them regardless of size.

 What is a Sustainability Management System?

A sustainability management system (SMS) is a codified framework that sets out a company’s policies, procedures, and practices to make the business more sustainable. The system can take many forms and will look different from one accommodation provider to the next, with some adopting state-of-the-art software to track progress and others relying on the IT infrastructure they already have in place.

Regardless of the format, any SMS should clearly set out how a hotel aims to become more sustainable, the actions it will take to reach its goals, the progress it is making, and how it will continually improve.

Not only does this give the business a clear understanding of its current sustainability status and best practices for maintaining and improving this, but it also provides a clear and transparent record that can be called upon and presented during certification audits. For the Global Sustainable Tourism Council (GSTC) Certification for Hotels, for example, maintaining an SMS is not just a “nice to have” but is one of the organization’s key performance indicators[1] used to confirm compliance.

GSTC expands on the system requirement within their criteria for hotels by outlining the key principles any accommodation provider should consider when compiling their own system, including:

• Comprehensiveness
• A commitment from top management
• Stakeholder engagement
• Performance monitoring and reporting
• Legal compliance

Comprehensive Policy Framework

Since  , any SMS worth its salt must include multiple sustainability facets. Evidently, to become “certified sustainable” according to GSTC, a sustainability management system must consider “environmental, social, cultural, economic, quality, human rights, health, safety, risk and crisis management issues”.

Though this may seem like a tall order for smaller establishments, the same section also states that the framework must be “suitable to [the business’] size and scope”. Therefore, whether the framework is contained within a cutting-edge software package or simply compiled in easy-to-access documents and folders, the policy’s comprehensiveness and quality, rather than the format, is the priority.

Commitment from Top Management

Without leadership buy-in, an SMS will likely fall at the first hurdle. Suppose top management representatives are not involved or engaged in making the business more sustainable. In that case, it’s unlikely that the staff members reporting to them will pay much attention to it either.

The ongoing inclusion and support of senior leadership is a key indicator of success for any SMS, as it provides the purpose, vision, strategy, and accountability required to encourage continuous improvement from all levels of the organization. This is why GSTC, within their SMS Guidance [3], suggests that an effective sustainability management system will involve the hotel’s General Manager, as well as “representation from all functional departments in the hotel”.

For an international brand, the “sustainability group” it assembles may be much larger when compared with a boutique hotel. However, the outcome is the same regardless of size. With representation from all levels of the organization, including top management, multiple perspectives are explored, and staff remain engaged in the process.

Engagement with Stakeholders  

In addition to inviting department heads, supervisors, and line-level staff to participate in the SMS, several other stakeholders should be involved to ensure its success.

Compiling and addressing customer feedback is a requirement contained within the GSTC Certification for Hotels criteria [4]. Larger brands that can utilize a wider array of feedback channels, survey methods and customer databases may expect to receive much more feedback. However, since the feedback extends beyond mere compilation and hotels must also prove they are considering it and taking action to make improvements, quality over quantity is key. Therefore, even “surveys” undertaken in-person or using simpler feedback tools could prove valuable.

Destination engagement is also vital for improving sustainability. According to GSTC’s criteria [5], the hotel should involve themselves in the conversation around sustainable tourism planning and management within the wider community. Therefore, these businesses are encouraged to become members of the destination’s management organization and participate in partnerships with local communities.

For smaller establishments where resources may be more limited, GSTC understands and makes compensations for not being able to align with all the criteria fully. For example, the cost of joining a destination management organization may be too high for some.

However, engagement with a destination, such as cross-promoting local businesses or volunteering in the community, can still be achieved in cost-effective ways to align with the key performance indicators.

Performance Monitoring and Reporting

A one-and-done approach will not suffice when implementing and maintaining a successful SMS. Monitoring and reporting on the progress of the SMS is crucial for ensuring ongoing accountability across the organization and continuous improvement. However, hotels should go further than merely running through actions at meetings and updating each other on progress.

Instead, performance monitoring should be clearly documented to avoid confusion and provide evidence for a certification body to consider should the need arise. According to the GSTC Industry Criteria [6], “documentary evidence [that] shows implementation of the SM system” is a performance indicator, as well as having “a process for monitoring continuous improvement in sustainability performance.”

Once again, each brand can choose how best to track and document its progress, and this will be entirely dependent on available resources. However, so long as a clear map of progress can be presented to the certification body and is available to the business as a whole, smaller brands will not be penalized if they cannot afford to implement specialist software and processes to assist with this task.

Legal compliance

 As well as internal actions designed to combat climate change and steps being taken to engage with communities and stakeholders, a hotel’s SMS must also incorporate the brand’s compliance with all relevant laws and regulations.

The GSTC Guidelines[7] stipulate that legal compliance must be demonstrated with “An up-to-date list of all applicable legal requirements” and “Certificates or other documentary evidence show[ing] compliance with all applicable legal requirements.”

Since these legal requirements form part of the business’s licenses, permits, and codes for operating, compiling these in a safe, secure and easily accessible location should be the priority. From there, sustainability groups should stay up-to-date on the latest legal requirements and create a continually updated checklist with new regulations or updated documentation.

Conclusion

An effective sustainability management system should never be about style over substance. For larger brands who can afford to make their lives easier by implementing processes, investigating sustainability tracking software and hiring more people to focus solely on the SMS, the resulting system may be “top of the line”.

However, the quality of information is the most important factor, and smaller establishments can take solace in the fact that their SMS, though it may seem less sophisticated, will still tick all the right boxes if it clearly demonstrates an ongoing commitment to sustainability.

And once a reliable system is in place, certification from GSTC audited by Control Union Certifications is the next step to telling the global tourism market that you are open for sustainable business.

Learn more about the GSTC certification and other validation programmes, and contact us to get started.

References

[1] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, 21 December 2016 (accessed 3 September 2024)  https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf

[2] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, Section A1, 21 December 2016 (accessed 6 September 2024) https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf

[3] Global Sustainable Tourism Council 2021, ‘GSTC Hotel Sustainability Management System: Implementation Guidance for GSTC Alignment’, Updated 18 March 2021 (accessed 6 September 2024)  https://www.gstcouncil.org/wp-content/uploads/GSTC-SMS-Guidance-Prepared-by-Greenview-Mar2021.pdf

[4] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, Section A5, 21 December 2016 (accessed 6 September 2024) https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf

[5] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, Section A10, 21 December 2016 (accessed 6 September 2024) https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf

[6] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, Section A1, 21 December 2016 (accessed 6 September 2024) https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf

[7] Global Sustainable Tourism Council 2016, ‘GSTC Industry Criteria, Version 3’, Section A2, 21 December 2016 (accessed 6 September 2024) https://www.gstcouncil.org/wp-content/uploads/GSTC-Industry-Criteria-for-Hotels-with-SDGs.pdf