ESG in hospitality and food

Turn sustainability into strategic advantage

How to implement ESG strategically?

ESG stands for Environmental, Social, and Governance. It’s a framework used by investors and companies to measure sustainability, ethical impact, and risk management. In the hospitality and food industry, ESG is no longer optional. Rising margin pressure, labor shortages, supply chain disruptions, and stricter financing requirements are reshaping the sector.

It is not only investors and commercial banks who require you to take ESG into account when providing capital. ESG affects margin, financing, brand, talent and operational continuity. The expectations of your guests also play a role in the growing need to properly implement ESG. It’s no longer a compliance exercise. ESG has become a strategic transformation lever affecting profitability, financing, brand strength and long-term resilience.

The question is no longer whether to implement ESG, but rather, how to do so strategically.

Five shifts redefining hospitality and food

Research from Rabobank, ING and ABN AMRO highlights five structural shifts that are redefining the hospitality and food industries:

Scope 3 supply chain impact dominates emissions
Waste and packaging affect profitability
Consumers demand healthy and sustainable options
Banks require transition plans
Labor sustainability determines operational continuity

Implementing ESG has become more relevant than ever.
Partner with us and it becomes easier than ever.

Why is ESG critical in the hospitality and food industries?

The top five drivers are:

Scope 3 emissions account for 95% of environmental impact
In food-related businesses, Scope 3 emissions – CO2 emissions outside your own organization, like procurement and supply chain emissions – represent the vast majority of total emissions. Without managing your suppliers, sourcing and menu design, you are not managing environmental risk.
Food waste and circularity directly impact margins
Waste reduction improves EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). Redesigning packaging reduces costs and footprint. Circular models increase resilience.
Health and protein transitions are becoming mainstream
Sustainable menu engineering is becoming standard practice. Hybrid proteins, local sourcing and biodiversity-driven concepts are gaining momentum.
ESG determines access to capital
Banks are increasingly assessing transition readiness. Companies without an ESG strategy risk higher financing costs and reduced lending.
Labor and operational sustainability ensure continuity
Hospitality is labor-intensive. Automation, healthy workplaces, and ESG-aligned employer branding create competitive advantage.

The hospitality and food industries are changing rapidly. If you treat ESG as a mere compliance issue, you will struggle. Treat ESG as a strategic priority, and you will outperform. Lead the transition

Frequently Asked Questions

What is ESG in the hospitality and food industries?
In food-related businesses, Scope 3 emissions – CO2 emissions outside your own organization, like procurement and supply chain emissions – represent the vast majority of total emissions. Without managing your suppliers, sourcing and menu design, you are not managing environmental risk.
Why is Scope 3 important in food retail?
Scope 3 emissions are CO2 emissions outside of one’s organization, such as those resulting from procurement and the supply chain. Supplier emissions represent the majority of the total footprint. Without Scope 3 management, climate targets are not credible.
Does ESG improve profitability?
Yes. Waste reduction, efficiency improvements, automation, and financing advantages directly impact margins and, consequently, profit.
Do small and mid-sized hospitality companies need ESG?
Yes. Even if they are not directly subject to the Corporate Sustainability Reporting Directive (CSRD), they are affected by supply chain requirements and financing expectations.
Is Next Level Concepts an ESG expert?
Next Level Concepts has formed a strategic partnership with ESG-Consultancy B.V. Together, we combine in-depth expertise in the hospitality and food sectors with structured ESG implementation and alignment with financial institutions.

Why partner with Next Level Concepts for ESG?

When you choose to partner with Next Level Concepts for your hospitality experience, we provide you with:

ESG strategy based on sector-specific expertise
Finance-ready transition plans aligned with bank expectations
VSME-aligned reporting (European standard)
Scope 3 (CO2) insight and reduction pathways
Dashboarding and KPI tracking

…depending on what is necessary and required for your business and concept.