ISS ESG InFocus: Hotels, Restaurants, & Leisure

Each month ISS ESG’s team of specialist analysts releases an update on the ESG risks associated with a specific industry sector. The InFocus reports focus on the ISS ESG Corporate Rating for companies within each sector, and also provides headline results from other ISS ESG product lines. This month, the InFocus is on: Hotels, Restaurants, & Leisure

KEY TAKEAWAYS

ESG Ratings Results

By and large, the Leisure industry is characterized by a relatively poor ESG performance and very limited positive contributions to the achievement of the SDGs.

• In the wake of the COVID-19 pandemic, the Leisure industry has suffered the worst downturn in its history. At the same time, the crisis also presents a unique opportunity for a change of tack as many social and environmental problems loom large and call for a fundamental reset.
• Tourism-related service providers, including restaurants, are major contributors to climate change. Going forward, sweeping efforts will be required in relation to green building management, environmentally friendly modes of transport, sustainable procurement practices and the development of low-carbon business models.
• Poor working conditions and disregard for labor rights continue to be major challenges for both the Leisure and Restaurant industries. This is also reflected in a range of controversies that have beset the sectors in recent years.
• The product and service portfolios of companies in the Leisure industry tend to obstruct or have no net impact on the achievement of the Sustainable Development Goals (SDGs). Only a few businesses make meaningful contributions to the goals of climate change mitigation, sustainable buildings, and ensuring people’s health.
• Only four percent of the Leisure industry’s companies are ISS ESG Prime-rated, significantly below the percentage across the entire universe.

Explore ISS ESG solutions mentioned in this report:

• Identify ESG risks and seize investment opportunities with the ISS ESG Corporate Rating.
• Use ISS ESG Climate Solutions to help you gain a better understanding of your exposure to climate-related risks and use the insights to safeguard your investment portfolios.
• Assess companies’ adherence to international norms on human rights, labor standards, environmental protection and anti-corruption using ISS ESG Norm-Based Research.
• Understand the impacts of your investments and how they support the UN Sustainable Development Goals with the ISS ESG SDG Solutions Assessment and SDG Impact Rating.
• Understand the F in ESGF using the ISS EVA solution.
• Use ISS ESG Sector-Based Screening to assess companies’ involvement in a wide range of products and services such as alcohol, animal welfare, cannabis, for-profit correctional facilities, gambling, pornography, tobacco and more.