NFU Mutual New Forest, IOW & Bournemouth - Why Eco-certification and ESG are no longer optional for hospitality businesses?

In today’s hospitality world, having a structured approach to environmental, social, and governance (ESG) practices is fast becoming the mark of serious operators. This isn’t a gimmick or a CSR box-tick, it’s a practical framework for running a greener and more resilient business.

For hotels, B&Bs, glamping sites, and rural accommodation providers, ESG strategies and eco-certification deliver more than a nod to environmental concerns. They can improve business results, strengthen community engagement, generate measurable cost savings, and even create a culture shift that improves staff retention.

At NFU Mutual New Forest, Isle of Wight and Bournemouth, a local insurer, we’ve spent years supporting hospitality businesses across the South Coast and see first-hand how adopting sustainable practices brings practical, tangible benefits.

Better Business: Turning green practices into real results

Eco-certification programmes provide a structured way for businesses to manage environmental responsibility and sustainable operations. They encourage operators to measure what matters. From energy and water use to procurement and guest engagement, they help identify improvements which can turn into real commercial advantage.

Hospitality expert Mike Harrison, Hospitality and Sustainability Consultant/Director at Completely Hotels, works closely with independent operators on sustainability, explains:

“Structured eco-certification schemes, like Green Key, which is recognised internationally, can give hospitality businesses a practical framework for managing sustainability. They help turn good intentions into measurable results, from energy savings to stronger guest engagement.”

The benefits can include:

  • Lower operating costs
  • Fewer complaints and higher guest satisfaction
  • Stronger brand reputation that appeals to values-driven travellers and corporate clients

Certification or structured ESG practices show guests and partners that your business is committed to doing things properly, with evidence to back it up.

Strengthening communities through sustainability

Hospitality businesses often sit at the heart of their communities. Implementing sustainability practices strengthens these connections by encouraging engagement with local suppliers, producers, and residents. Examples include:

  • Promoting local food and drink
  • Offering nature-based experiences for guests
  • Supporting local conservation initiatives or charities
  • Hiring and training local staff

Businesses we support at NFU Mutual New Forest, Isle of Wight and Bournemouth often find that sustainability initiatives also build credibility and resonate with both guests and locals.

Practical steps that reduce costs

There are an endless number of tools and practises hospitality businesses could put in place to improve sustainability and secure eco-accreditation. From installing on-site renewables, more efficient energy solutions (think smart meters and LED lights) and fitting water-saving and leak detection tools, to committing to sustainable sourcing and procurement practises. The opportunities to improve your sustainability credentials are wide-ranging and you may already be doing more than you realise.

Businesses that take structured steps to manage energy, water, and waste often benefit from lower utility bills, reduced waste disposal costs, more efficient procurement, and less food waste. Many of these improvements can pay for themselves quickly, making sustainability both practical and financially sensible. For example, research by the Sustainable Hospitality Alliance (1) indicates that hotels prioritising sustainable practices can reduce operating costs by up to 30%, thanks to energy savings, decreased waste, and improved operational efficiencies. Similarly, analyses of eco-certification programmes, including Green Key and ISO 14001, have found hotels achieving 15% reductions in energy use and 10% reductions in water consumption, demonstrating tangible, measurable results (2).

A culture shift that retains staff

The hospitality industry faces a retention challenge, and sustainability initiatives can help. Businesses that embed clear environmental and ethical goals into daily operations often see higher staff morale, greater engagement, and lower turnover. When employees feel part of something meaningful, it becomes especially valuable in an industry where recruitment is difficult, and training is costly. One UK study found that 84% of hospitality professionals would stay longer if their employer made a positive environmental impact, and half had chosen an employer specifically because of its sustainability credentials (3). 

A sustainability-focused culture can be a serious competitive advantage. Nominating an employee as your ‘ESG Champion’ can help promote and communicate the importance of everyone buying into your strategy.

At NFU Mutual New Forest, Isle of Wight and Bournemouth, we’ve observed that businesses with strong ESG practices can experience broader benefits, such as attracting and retaining staff who value purpose. This mirrors broader industry trends: prioritising fair labour, ethical sourcing, and sustainability helps organisations build a culture of inclusivity and trust, attracting employees who are engaged and motivated (4).

Implementing ESG: Practical steps for hospitality

  1. Audit your current ESG position: assess your current practices, risks, and opportunities to create a clear, actionable framework.
  2. Explore eco-certification options: many programmes exist, each offering structured steps to help achieve sustainability goals.
  3. Implement practical measures: energy-efficient lighting, water-saving devices, smart meters, and sustainable sourcing are all steps that add up.
  4. Engage staff: educate employees on the impact of small actions and involve them in your ESG journey. Consider appointing an ESG champion to lead the initiative.

As Mike Harrison adds, 

“Choosing the right framework, whether that’s Green Key, EarthCheck, or another recognised standard, can help you stay accountable, benchmark progress, and demonstrate your commitment to guests and partners.”

A final word from an industry expert

Louise Carr-Merino, Green Key England Manager, says: 

“Eco-certification from a recognised, independent programme is more than a badge - it’s a practical, robust framework for making hospitality businesses more resilient. These independent programmes can  provide the tools and guidance to help operators manage resources, purchase responsibly, reduce costs, engage team and guests, and make a tangible positive impact on their local environment and community. We’re delighted to see more independent businesses across the country taking this step, recognising the financial, environmental and reputational benefits.”

Here to support your hospitality business

The team at NFU Mutual New Forest, Isle of Wight and Bournemouth proudly support a wide range of hotels, B&Bs, and tourism businesses. We are active committee members and corporate friends of several industry associations such as the BH Area Hospitality Association. 

Our friendly, experienced team lives and works in the communities we serve. We pride ourselves on building long-term relationships founded on trust, understanding and specialist local knowledge. 

From our offices in Brockenhurst (New Forest), Newport (Isle of Wight) and Westbourne (Bournemouth), we’re committed to doing things the traditional way, with face-to-face conversations, personal visits, and a dedicated team member who’ll be there when you need them.

With a genuine commitment to our customers and an in-house claims team who’ll deal with you directly, we’re here to help protect what matters most.

Because with us, protecting your business is personal.

New Forest: 01590 607134 | New Park, Brockenhurst, SO42 7QH  

Isle of Wight: 01983 897804 | 2 Langley Court, Pyle Street, Newport, PO30 1LA  

Bournemouth: 01202 070317 | 16 Landseer Road, Westbourne, BH4 9EH  

To find out more contact our agency

 

References

This article has been written in conjunction with Mike Harrison, Hospitality and Sustainability Consultant/Director at Completely Hotels and Louise Carr-Merino, Green Key England Manager.

(1).       https://sustainablehospitalityalliance.org/building-green-resilient-hotels-ifc/ 

(2).       https://www.mdpi.com/2071-1050/17/2/650

(3).       https://cgastrategy.com/sustainability-is-key-to-attracting-and-retaining-hospitality-staff/ 

(4).       https://esgpro.co.uk/wp-content/uploads/2025/01/THE-HOSPITALITY-INDUSTRYS-ESG-AND-SUSTAINABILITY-REVOLUTION-PREVIEW.pdf