Hotels Limited

Hotels Limited, a 10-property UK hotel group, wants to become significantly more sustainable but doesn't know where to focus first. PwC's Sustainability & Climate Change team has been asked to identify the five most critical environmental problem areas, benchmark against competitor hotels, and deliver three prioritised recommendations that the CEO can act on. The case tests ESG thinking, multi-criteria prioritisation, and the ability to translate sustainability trends into credible business value.

Company Profile 10 large hotels operating across the UK Aware of growing regulatory, investor, and consumer pressure on environmental performance Seeking to reduce long-term operating costs through sustainability improvements Has invited multiple consulting firms to pitch a sustainability strategy covering both direct operations and supply chain Sustainability Framework Areas Environmental: Energy (HVAC, lighting, kitchens), water (rooms, laundry, pools, spas), waste (food, packaging, disposables), supply chain emissions, carbon from guest travel. Social: Diversity & inclusion, employee benefits and retention, community impact. Global Trends Shaping the Sector Tourism accounts for 8% of global carbon emissions — 3x higher than previous estimates when full lifecycle is included Well-informed customers are actively holding hotels accountable for sustainability credentials Government incentives: tax write-offs, grants, insurance discounts, and expedited permitting for green investments 70–83% of Millennials are more loyal to companies that actively support social and environmental causes Competitor Benchmarks Energy: One London hotel saved £2,714 on gas and £1,817 on electricity within 26–37 days by switching off lobby underfloor heating and trialling LED lighting. Solar: A UK hotel chain installed solar panels across 88 sites, saving approximately £280,000/year. Food waste: Composting programmes can divert 40–50% of food waste from landfill. Water: Linen reuse programmes and low-flow fixtures are now industry standard. Amenities: Hotels are moving away from PVC key cards and single-use plastics in favour of biodegradable alternatives.

Hotels Limited has significant environmental impact across energy, water, waste, food, and supply chain — but no structured strategy to address it. The company recognises that inaction carries increasing cost (regulation, reputation, talent) while action offers direct savings and brand uplift. It needs PwC to prioritise the problem areas, design practical interventions, and make a credible business case for the investment required.

Step 1 — Score and Prioritise the 5 Problem Areas Rank areas by: (a) magnitude of environmental impact, (b) cost-saving potential, and (c) ease of implementation. Energy conservation and food waste typically rank highest across all three criteria for hotel operations. Step 2 — Build the 3-Recommendation Stack Priority 1 (High impact, low cost): LED lighting upgrade + occupancy-linked room controls. Delivers quick ROI with minimal disruption. Priority 2 (High impact, medium cost): Food waste composting programme + dynamic F&B ordering. Directly reduces waste-to-landfill and procurement spend. Priority 3 (High impact, capital investment): Solar panel installation across properties. Higher upfront cost but significant long-term savings and carbon credential. Step 3 — Pitch PwC's Sustainability & Climate Change Team Emphasise PwC's ability to: (a) conduct a full carbon footprint assessment as the diagnostic foundation, (b) benchmark against leading hospitality operators, (c) design an integrated strategy that is credible to regulators and investors, not just a PR exercise, and (d) manage supplier engagement across the supply chain.