ESG reporting obligation

The ESG reporting obligation requires companies to disclose their activities and impacts in the areas of environmental (E), social (S) and governance (G). It is based on the new EU Corporate Sustainability Reporting Directive (CSRD) and will come into force for many companies from the 2025 financial year.

ESG stands for:

• E – Environmental: e.g. energy consumption, CO₂ emissions, water, waste
• S – Social: e.g. working conditions, equality, diversity, training and further education
• G – Governance: e.g. business ethics, corruption prevention, supply chain control

Aim of the reporting obligation:

• More transparency about the sustainable orientation of companies
• Standardised, comparable sustainability reports in accordance with European standards (ESRS)
• Integration of sustainability into the corporate strategy – on a par with financial reporting

For hotels, this means

Hotels that exceed certain thresholds – for example, more than 250 employees or 40 million euros in turnover – will have to publish an auditable ESG report every year from 2025. Smaller hotels may also be indirectly affected, for example by the requirements of corporate groups, tour operators or public sector clients. Even if small hotels are not directly required to report, ESG can still become relevant, for example if hotel groups, tour operators, companies (e.g. conference customers) or public sector clients demand proof of sustainability. Without the relevant data, there is a risk of competitive disadvantages, for example in tenders or listings. The information that can be requested as part of volume, organiser or conference contracts includes energy consumption per overnight stay, the type of electricity used, water consumption, certifications, working conditions, accessibility, procurement rules (e.g. for regional suppliers) and more.