Climate change is transforming lives globally, and the story is no different in India. It is no longer a subject of conjecture but a reality that we must recognize and act towards the unprecedented effects of climate change on businesses, people, and the planet.
Given its extensive geography and large population, India is one of the most climate-vulnerable areas globally. More than half of India’s districts are classified as high-risk, impacting nearly more than three-fourths of the population. As responsible citizens, we must take actions to advance our efforts towards climate resilience.
The government has undertaken significant efforts to combat climate change through various initiatives, policies, and commitments; one such commitment being a Net Zero Nation by 2070. While the government is transitioning towards a climate-resilient planet, businesses need to accelerate their efforts towards making their operations climate-positive and drive their businesses towards a low-carbon economy.
India’s evolving carbon-related regulations such as the Perform, Achieve and Trade (PAT) Scheme, Energy Conservation Building Code (ECBC), Carbon Credit Trading Scheme (CCTS), and BRSR (Business Responsibility and Sustainability Reporting) are increasingly shaping businesses and pushing industry leaders to proactively integrate low-carbon strategies to remain competitive and resilient.
The hospitality sector contributes to a notable part of resource consumption and climate actions due to its higher energy, water, and material usage. Globally, the hospitality industry is progressing towards creating exceptional guest experiences alongside developing climate-resilient tourism.
While businesses are doing their bit, it is imperative to prepare the future generation to carry forward this mission by taking commitments to fast-track and innovate sustainability initiatives. A study by the global analytics firm Gallup revealed that 71% of employees are making conscious decisions on selecting employers based on their environmental performance.
Chalet Hotels’ ESG Strategy is built upon three fundamental pillars focusing on environmental stewardship, empowerment of employees and communities, and business resiliency. These pillars ensure value creation across all our key stakeholders.
As global ESG assets are anticipated to exceed $50 trillion by 2025, accounting for one-third of the estimated total global assets under management, Chalet is making significant strides in advancing its climate action efforts by assessing climate risks, developing climate resilience strategies, effective value chain management, and enhancing its green building footprint.
Setting Benchmarks and Reaching Milestones
Setting targets provide a clear framework to measure progress, drive continuous improvement, and ensure accountability across operations and the value chain. By establishing climate-related benchmarks such as reducing greenhouse gas emissions, improving energy and water efficiency, and minimizing waste, companies can align with global sustainability standards and meet growing stakeholder expectations. Hotels that demonstrate credible progress through well-defined milestones gain a strategic advantage, enhance brand reputation, and unlock access to green financing and partnerships.
Chalet is the first hospitality company globally to make a commitment to RE100, EP100, and EV100 of the Climate Group. The company is sourcing more than 60% of its electricity from renewable sources and achieved an 82% improvement in energy productivity. All properties are equipped with EV charging infrastructure, with 25% of the portfolio operating at 100% guest fleet as EVs.
Decarbonization is in vogue these days amongst the sustainability-savvy and is a massive piece of our corporate responsibility. It requires constantly reevaluating the company’s operations at every single stage, whether it is property-based electricity and fuel use, emissions stemming from the transport of company-owned goods, business travel, and waste. Chalet acknowledges its direct and value chain emissions and has committed to Net-Zero GHG Emissions by 2040. The company is progressing towards devising a comprehensive roadmap to achieve the decarbonization path.
The company is strategically investing in technology and IoT-enabled solutions such as digital check-ins, mobile key, building management system, and IoT systems for HVAC to address reduction in energy consumption.
Additionally, Chalet has adopted strategies such as reusable glass bottles, zero single-use plastic, water-efficient fixtures, rainwater harvesting, and organic waste management. These initiatives not only ensure operational efficiency and cost but also enhance brand reputation. According to various media reports, ESG builds customer trust, with nearly 79% of them choosing sustainable properties and about 55% willing to pay a premium.
ESG ratings, such as the Dow Jones Sustainability Index (DJSI), measure sustainability performance and reassure investors to make informed decisions. Chalet’s increase in its ratings signals strong long-term plans with long term prospects. This also enables access to green financing and better borrowing terms.
Social responsibility in the hospitality sector extends beyond fair labor practices. Ensuring equitable wages, providing training and career development, promoting gender equality, and respecting human rights are essential parameters. Additionally, partnering with local suppliers, preserving cultural heritage, and supporting vulnerable groups through outreach programs help build stronger, more inclusive communities.
With the aim to align the company’s social commitments, we remain focused on the well-being of the workforce and in fostering an inclusive culture resulting in achieving Great Place to Work for six consecutive years. We are driven by a purpose to empower and uplift underprivileged communities through impactful skill development and welfare initiatives while nurturing surrounding ecosystems.
At Chalet, our journey continues to strengthen climate resilience through a decarbonization roadmap. We continue to emphasize employee welfare, drive supply chain integrity, and create a positive impact on nearby communities through structured and long-term social initiatives.
Chalet’s model integrates ESG principles, effectively balances stakeholders’ interests, enhances brand equity, and protects future profitability. This serves as a call to action for hospitality sector leaders to incorporate ESG into business strategy, practice ethical business and transparency, and build responsible enterprises.
Conclusion
In conclusion, the integration of ESG principles into business strategies is no longer optional but essential for the sustainability and resilience of Indian businesses. As climate change continues to pose significant challenges, companies must proactively adopt measures to mitigate its impact and contribute to a low-carbon economy. By setting benchmarks, achieving milestones, and fostering social responsibility, businesses can enhance their brand reputation, gain a competitive edge, and ensure long-term profitability.
Chalet Hotels’ commitment to ESG serves as a model for the hospitality sector, demonstrating that responsible and ethical business practices can drive positive change and create value for all stakeholders. It is imperative for industry leaders to embrace ESG as a non-negotiable aspect of their operations and work collectively towards a sustainable future.
