Restaurants assessed in the Green Rankings have expansive, global operations with extensive food-supply chains. An increasing number of Restaurant companies now recognize the importance of environmental supply chain issues such as agricultural impact, changing weather patterns, and resource scarcity. As a result, many have developed standards and programs—such as sustainable agriculture—to ensure that their sourcing practices minimize environmental impact. For Hotel companies, a significant portion of the carbon footprint comes from the energy required to operate hotels and resorts. Leading companies are implementing energy-conservation initiatives according to green-building standards such as Leadership in Energy and Environmental Design (LEED) and are requiring third-party energy and water audits for their properties. Results of these audits should be disclosed annually.
Despite this progress, the industry’s sustainability initiatives lag behind other consumer-facing industries, such as Retailers and Food & Beverage companies. On the whole, companywide environmental programs have been reactive and fail to demonstrate an innovative approach. The industry could benefit from increased transparency on quantitative emissions, water and waste data, and related reduction targets.
Key Industry Impacts
• Water use, greenhouse-gas emissions, and general waste generation and disposal together account for more than 87 percent of the total environmental footprint for Hotel & Restaurant companies.
Critical Issue Profile: Supply-Chain Management
The majority of Hotel & Restaurant supplies—from food to linens—are sourced through diverse and complex supply chains. Efficient supply-chain management not only cuts costs but also minimizes a company’s impact on the environment and positively contributes to its reputation. Companies like Wyndham Worldwide have developed green procurement policies to help identify suppliers that align with their sustainability goals. Furthermore, external certifications—such as Marine Stewardship Certified seafood, Forest Stewardship Certified paper, or Starbuck’s own C.A.F.E. (Coffee and Farmer Equity) practices—strengthen a company’s sustainable supply-chain practices. To further mitigate sustainability risks within their supply chains, companies should disclose a supply-chain monitoring system, and audit findings, to effectively assess supplier compliance.
Industry Ranking: How U.S. Hotel & Restaurant Companies Stack Up
|Industry Rank||Company||Overall Rank||Industry Sector||Impact||Management||Disclosure||Green Score||2011 Green Score||1||Wyndham Worldwide||89||Hotels & Restaurants||66.9||59.2||62.7||63||62.9||2||Starbucks||90||Hotels & Restaurants||50.7||74.3||67.4||63||61.5||3||MGM Resorts International||122||Hotels & Restaurants||59.8||58.7||70.7||60.4||56.2||4||Las Vegas Sands||128||Hotels & Restaurants||61||57.7||62.4||59.7||45.7||5||Marriott International||154||Hotels & Restaurants||56.7||56||74||58.1||57.7||6||Darden Restaurants||198||Hotels & Restaurants||46.9||60.7||75||55.9||51.2||7||Starwood Hotels & Resorts||226||Hotels & Restaurants||48.5||57.4||66.1||54.3||54.9||8||Hyatt Hotels||228||Hotels & Restaurants||51.8||55.6||58.3||54.2||48.6||9||Yum! Brands||297||Hotels & Restaurants||49.4||56||35||51||47.8||10||McDonald's||321||Hotels & Restaurants||53.4||54.7||8.3||49.5||49||11||Wynn Resorts||428||Hotels & Restaurants||61.3||34.8||0||43.2||42.6||12||Wendy's||452||Hotels & Restaurants||51||38.6||0||40.3||39.6||13||Chipotle Mexican Grill||466||Hotels & Restaurants||49.4||36.3||0||38.5||39.4||14||Brinker International||467||Hotels & Restaurants||49.4||35.3||0||38.1||38.2|