Skift Take
Marriott’s environmental data reveals that the business is working hard to minimize its carbon footprint, however more requires to be done to hit 2030 targets.
Wouter Geerts
Marriott International’s emissions information reveals its greenhouse gas emissions increased in 2022, regardless of having actually devoted to reductions.
Marriott released environmental performance data in July as part of its 2023 Serve 360 report. Skift Research study has actually been keeping an eye on greenhouse gas decrease targets and real performance for the largest hotel business, and we dug much deeper into Marriott’s numbers.
Credit where credit is due: Marriott’s reporting on its environmental (and larger social and cultural) impact is extensive, and the business has some of the best tracking of emissions of any hotel company.
One place where Marriott is falling back rivals: It has actually dedicated to setting science-based targets, but has actually not submitted them yet. Rather, it has actually set its own carbon reduction objectives for 2025. Science-based targets embeded in accordance with the Science-Based Target Effort (SBTi) would make sure targets are in line with 1.5 ° C warming scenarios set out in the Paris Contract.
However, Marriott has devoted to the 1.5 ° C target, and we expect its own decrease objective will remain in line with other business like Accor, Hilton and IHG that already have science-based targets. For these business, the dedication indicates a 46% decrease of scope 1 and 2 greenhouse gasses in between 2019 and 2030.
Scope 1 and 2 emissions are all direct and indirect emissions from activities under functional control for hotel business, which includes owned, rented, and managed hotel rooms. Importantly, this excludes franchised hotel rooms, which fall under scope 3 emissions.
Marriott’s reporting shows that its scope 1 and 2 emissions increased by 2.5% in 2022 compared to 2021.
Marriott is still on track to strike its 2030 emissions objective– but emissions are trending in the incorrect instructions.
The slump in demand throughout the pandemic implied that emissions decreased significantly, but as hotel spaces filled again in 2022, emissions increased. Marriott must be achieving a 5.4% annual decline in emissions if it wants to gradually decrease its emissions to strike the 2030 target.
Emissions per Room Stabilize Marriott has an absolute emissions target and that’s essential due to the fact that hotel companies add brand-new properties, naturally or through acquisitions, all the
time. An outright target indicates it will pursue minimizing its real emissions even as it grows. Nevertheless, it is fascinating to do some deeper analysis and utilize a common denominator to examine efficiency over multiple years. We decided, with the details that’s openly readily available, to compare the emissions with tenancy information, so we see what the average emissions per occupied space are.
During the pandemic, the typical emissions per space skyrocketed as there were particular areas of the hotel that needed to stay up and running, even when not all spaces were open or occupied. This has actually considering that reverted back. In 2022, the typical emissions per occupied room for Marriott struck 2019 levels, even when occupancy was not completely recovered yet. This is a positive indication: Marriott’s efforts to minimize emissions seem to be working. This year, 2023, will be the real test to see if the business can continue this trajectory.
Franchised Hotels Reduction Targets Still Missing We’ll finish with a call to action for Marriott– and all hotel companies. We wish to see scope 3 targets. The above data is for owned, leased, and handled properties only. However, 60%of Marriott’s spaces are franchised, and so the business could grow its franchising arm without having to consider any reduction targets. More
From Skift Research study
Upgraded Mar. 15, 2023
Franchised hotels fall under scope 3, which is an optional reporting category and which does not fall under the carbon decrease targets set by the company. Nonetheless, two-thirds of the business’s emissions originate from this classification.
Marriott’s owned, rented and handled portfolio declined by 1.5% in between 2019 and 2022, even when its general portfolio grew by nearly 10% over the exact same period. All of this development originated from franchising.
We believe it is very important to keep hotel business truthful about their reduction targets and emission performance. Stakeholders ought to wonder whether the business is concentrating on reducing its emissions through abatement efforts, or instead by lowering the size of its portfolio under functional control.
Wouter Geerts is Head of Research Study at Skift. Register For Skift Research to learn more of his analysis.