Summary: Knowing The Business / Blok 3

Read the summary and the most important questions on Knowing the business / BLOK 3

• 3 EXAM preparation

• 3.1.3 limitations of sustainability reporting

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• Connecting the three concepta of reporting?

  1. Stakeholder engagemnent (who care about sustainability?)
     
  2. risk assesment (what could go wrong?) 
  3. Materiality? ( what must we report?)

• The 8 key limitations of sustainability reporting: DATA QUALITY ISSUES

  Incomplete data, estimates ( guess based on the information you have.), inconsistent measurement
  

  • 25% water reducion, but only measured 60% of properties  

• The 8 key limitations of sustainability reporting: LACK OF COMPARABILITY

  Different frameworks, boundaries or baselines 
  

  • Hotel A reports scope 1+2 emissions, hotel B includes scope 3
  • appels met peren vergelijken  

• The 8 key limitations of sustainability reporting: GREENWASHING

  
  Recall Workshop 1: "Committed to
  sustainability" vs. "Reduced water by
  23% (2022-2024)"
  

  • A hotel puts “eco-friendly” stickers on all its toiletries and says “We care about the planet!”, but in reality:
    
    • Most toiletries are not biodegradable
      
    • Towels are washed daily with harsh chemicals
      
    • Energy and water usage haven’t actually been reduced
      
     

• The 8 key limitations of sustainability reporting: TIME LAG

  Reports show past performance, published late ( red flag 18+ months old)

• The 8 key limitations of sustainability reporting: RESOURCE CONSTRAINTS

  resource constraints means that A business can’t do everything it wants because it doesn’t have unlimited resources
  

  • expensive to collect data and verify
  • small hotels can't afford comprehensive reporting
  • Trade-off: Money spent on reporting vs.actual improvements

• The 8 key limitations of sustainability reporting: IMPACT GAP: REPORTING / REAL CHANGE

  Looking good on paper without meaningful action (real effort, but results fall short (“we tried, but not enough”)
  

  • install smart thermostats (easy to report) but keep buying from unsustainable suppliers

• The 8 key limitations of sustainability reporting: LIMITED VERIFICATION

  Not al data is independently audited

• The 8 key limitations of sustainability reporting: materiality subjectivity

  Different stakeholders care about different issues 
  red flag: report focuses on easy topics, ignores difficult ones

• 3.2.1 Lc two perspectives

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• Why is not every cash payment an expense?

  If a hotel buys a laptop, no value is lost, cash is simply traded for another asset.