4. b. Adapting practices to emerging trends, technologies, and regulatory requirements

Sustainability reporting and compliance are crucial aspects of operating a hospitality in today’s conscientious market. It’s important to keep up-to-date with evolving regulations and reporting requirements relevant to the hospitality. Familiarize yourself with local, regional, and national regulations related to sustainability, waste management, energy efficiency, and social responsibility. Compliance with these regulations is essential to avoid penalties and maintain your reputation as a responsible hospitality provider. Familiarize yourself also with widely recognized sustainability reporting frameworks (e.g. the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), or the United Nations Sustainable Development Goals (UN SDGs)). These frameworks provide a structured approach to sustainability reporting and help you identify the relevant indicators and metrics for your hospitality business.

In November 2022 the Council of the EU gave its final approval to the corporate sustainability reporting directive (CSRD). The CSRD strengthens the existing rules on non-financial reporting introduced in the Accounting Directive by the 2014 non-financial reporting directive (NFRD), which are no longer tailored to the EU’s transition to a sustainable economy. This means that companies will soon be required to publish detailed information on sustainability matters. This will increase a company’s accountability, prevent divergent sustainability standards, and ease the transition to a sustainable economy. In practical terms, companies will have to report on how their business model affects their sustainability, and on how external sustainability factors (such as climate change or human right issues) influence their activities. This will equip investors and other stakeholders better for taking informed decisions on sustainability issues. The new sustainability reporting rules will apply to all large companies and to all companies listed on regulated markets except listed micro undertakings. The rules also apply to listed SMEs, taking into account their specific characteristics. An opt-out will be possible for listed SMEs during a transitional period, exempting them from the application of the directive until 2028.