Possible or Not?: ESG Certification for Hotels and Resorts

Abstract

The Malaysian hospitality industry has launched an ESG Certification for hotels and resorts, aiming to promote sustainable tourism and provide clear, measurable standards. The process involves ESG training, pre-assessment, action planning, and a certification audit, with annual renewal required. However, challenges include low sustainability awareness, lack of dedicated ESG expertise, and difficulties in spreading knowledge within organizations. The process is complex and time-consuming, and relying on a single auditing firm raises capacity concerns. Small and medium-sized enterprises (SMEs) face additional barriers due to limited resources and lack of benchmarks, risking exclusion and competitive disadvantage without government support or incentives.