Climate-related risks pose a threat to ecosystems and human health. These risks are very real, affecting both businesses, economies, and individuals. At the beginning of this year, for example, Accor withdrew from two investments due to the risk of water shortages and wildfires [1a, 1b]. Whether these reasons were merely a pretext or genuinely drove the decision, we must acknowledge the evolving landscape of risks that hotels now face. However, at least there are tools available to help us map these risks.
Double materiality analysis (Figure 1) can play a crucial role in identifying and mitigating climate risks by examining both how environmental issues impact the organisation (outside-in perspective) and how the organisation affects the environment and society (inside-out perspective) [2]. From the financial materiality side, it helps companies recognise how water scarcity, flooding, or changing precipitation patterns might disrupt operations, increase costs, or impair asset values. From the impact materiality perspective, it reveals how corporate activities contribute to water pollution, overextraction, or ecosystem degradation. By assessing these dual dimensions, risks and impacts can be prioritised, measurable targets can be set, and mitigation or adaptation strategies can be designed. For example, investing in water-efficient processes, or engaging and educating staff, clients, and suppliers on sustainable water use [2]. This comprehensive view enables better-informed decisions that align with both stakeholder expectations and long-term business resilience.
Figure 1— Source: Hotelschool The Hague
Figure 1— Source: Hotelschool The Hague To mitigate these risks, a combination of adaptive and preventive strategies is essential. A coordinated approach that combines business and local action, public investment, and global climate policy is crucial to reduce water-related climate vulnerabilities [3].
And lastly, but not least, education. Educating both clients and visitors about responsible consumption, as well as hotel staff and managers about solutions and mapping tools, is key. The Research Centre area Hospitality Business at the Hotelschool The Hague is organising an Executive Masterclass about Double Materiality Analysis: ‘Anticipate, Adapt, Advance: Detecting and Managing Hotel Risks with Double Materiality’.
For more information, please get in touch with M. Ratkai at [email protected] or contact [email protected].
References:
[1a] Bellos, I. (2025, March 13). Accor cancels plans for two hotels on Mykonos. eKathimerini. Retrieved from https://www.ekathimerini.com/economy/1263918/accor-cancels-plans-for-two-hotels-on-mykonos/
[1b] Skift. (2025, February 21). Accor CEO: Opening hotels in Mykonos too risky due to climate change. Retrieved from: https://skift.com/2025/02/21/accor-ceo-opening-hotels-in-mykonos-too-risky-due-to-climate-change/
[2] Ratkai, M.; P. Dimitripolous; I. Lissner (2025). Mitigating the Environmental Impacts of Water Use, Waste Generation, and Energy Consumption in the Hotel Industry. [Unpublished working paper]. Submitted for inclusion in W. Legrand, H. Kuokkanen, & C. Cheung (Eds.), Handbook of ESG in tourism and hospitality. Edward Elgar Publishing.
[3] Ratkai, M. (2025). Double materiality: A paradigm shift in sustainability reporting for hotels. [Unpublished working paper]. Submitted for inclusion in W. Legrand, H. Kuokkanen, & C. Cheung (Eds.), Handbook of ESG in tourism and hospitality. Edward Elgar Publishing.
Nina de Graaf
Hotelschool The Hague
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