Corporate Sustainability: A Case Study of Hyatt Hotels Corporation

Corporate Sustainability at Hyatt Hotels: Challenges, Initiatives, and Future Strategies

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Introduction Of Corporate Sustainability at Hyatt Hotels Assignment

The concept of corporate sustainability involves managing risks and embracing opportunities in an effort to create long-term shareholder value. For this report, the company selected is Hyatt Hotels Corporation which helps to analyze the discussion regarding the issue of corporate sustainability. Further, it covers the explanation of corporate sustainability and discussion about the present situation of the company. In addition to this, there are certain recommendations for considering future perspectives (Drempetic, Klein, and Zwergel, 2020). At last, the different future strategic options are provided for the basic aspect of encouraging the discussion.

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In addition to this, The Company is Hyatt Hotels Corporation which is an American multinational hospitality business headquartered in Chicago that manages certain franchises and resorts, and hotels. The company operates accommodations all over the entire globe under various names like Grand Hyatt, Park Hyatt, Miraval, Hyatt Regency, and some others. The Company's operations are managed by its staff and officers, who work under the path of the President and Chief Executive Officer and the oversight of directors in command to increase the Focused on the long benefit for its shareholders. Further, the company highly follows corporate sustainability for considering the environmental impact.

Discussion of the Issue

Hyatt Hotels Corporation is a multinational accommodation firm that owns, maintains, and spinoffs hotels and resorts, resorts, and vacation properties around the world. The business began in 1957 and has currently grown to over 1,000 qualities in 68 countries, seeking to make the group among the biggest global hotel chain system.

For the hospitality industry like Hyatt Hotel Corporation, corporate sustainability is one of the most increasing issues for the business. As an industry-leading player, the company recognizes the value of implementing sustainable practices to minimize its ecological footprint, improve its moral obligation, and fortify its notoriety between consumers and potential investors. The Hyatt Hotels Corporation has captured numerous actions to enhance its operations' economic viability (Zaid, and, 2020). The company established its first corporate sustainability objectives in 2014, which included decreasing greenhouse gas emissions, preserving water, and procuring responsibly. In reaction to the COVID-19 disease outbreak, the business unveiled its Global Care & Hygiene Commitment in 2020, which contains measures to improve sterilization and cleaning safety procedures. The Hyatt Hotel Group has achieved major achievements in decreasing its ecological impact in regard to ecological sustainability. Using 2016 as a baseline, the firm has set a goal of cutting its emissions of greenhouse gases per square meter by 25% by 2025. To that end, the business has made investments in sustainable power, electricity backlight and HVAC mechanisms, and water-saving metrics. To minimize its effect on dumpsites, Hyatt has indeed applied waste minimization programs such as recycling and composting. In addition, Hyatt Hotels Corporation has taken actions to encourage sustainable construction. The business has developed collaborations with nearby neighbourhoods and non-governmental organizations (NGOs) to promote education, nutrition, and environmental considerations in the places in which it continues to operate. Hyatt has also incorporated equity and inclusion programs in a bid to establish a more equal and welcoming corporate world.

Given the scale and international network of its processes, sustainable growth is a vital challenge for Hyatt Hotels Corporation. The corporation recognizes the significance of going green to reduce its environmental effects, enhance the latter's moral obligation, and fortify its renown among consumers and financiers (Franco, and, 2020). Hyatt's environmental initiatives entail lowering the emission of greenhouse gases, conserving water, promoting sustainable procurement, improving clean up and sanitization guidelines, and helping small neighbourhoods as well as inclusive and diverse programs. The Hyatt Hotel Corporation is trying to demonstrate its dedication to building an environmentally friendly prospect for the hotel industry and the world by prioritizing sustainable development. Hyatt is committed to responsible sourcing of products and services, including food and beverages, linens, and amenities (Su, and Chen, 2020). The company has developed a global sustainable seafood policy and works with suppliers to source sustainable seafood. Hyatt also supports local and organic farming, and sources products from suppliers who meet its sustainability standards. Overall, Hyatt Corporation has made significant progress in its sustainability efforts and continues to work towards its goals of reducing its environmental impact, promoting social responsibility, and supporting local communities.

Background to corporate sustainability

In recent years, green marketing has become an incredibly prominent problem for the tourism sector. Because of its increased dependence on energy and resources from nature, as well as its massive effect on neighbourhoods and the natural world, the sector has become a popular target for sustainability efforts. As a result, there has been a significant increase in the amount of scholarship and research on business sustainability within the lodging economy, along with several other theories and frameworks that may be employed to comprehend environmental initiatives in this specific situation. It was also fuelled by the recognition that businesses have a significant impact on the environment and society, and that they have a responsibility to minimize their negative impacts and contribute to positive outcomes. The Triple Bottom Line (TBL) structure is a vital template that's been commonly implemented in the setting of business conservation. The TBL framework, established by Franco, 2020 intends that businesses prioritize three pivotal areas of sustainability: industrial, ecologic, and cultural. According to the foundation, companies may reach protracted conservation by stabilizing these three main areas instead of concentrating only on financial cash flow. The TBL structure has been widely applied in the hotel industry, with research findings investigating the link between both viable management and profitability, environmental consequences, and community involvement. Today, corporate sustainability is widely recognized as a critical business imperative, with many companies integrating sustainability into their core business strategies and operations. It has also become an important factor in investor decision-making, as investors increasingly seek to invest in companies that demonstrate a commitment to sustainability and environmental, social, and governance (ESG) performance. Stakeholder theory is another important theory in the field of green innovation (Deng, and Zhou, 2022). When conducting business, businesses ought to think about the desires and necessities of all interested parties, which include staff members, consumers, vendors, shareowners, and affected councils, according to this hypothesis. Rather than focusing solely on shareholder value, this theory emphasises the importance of creating value for all stakeholders. Stockholder theory is currently being utilized in the hospitality business, with research looking at the connection among stakeholder involvement also promoting sustainability and the position of corporate governance in building a long-term market edge. Aside from these theories and frameworks, there is a substantial body of research on sustainability solutions within the hospitality business, with research examining the value of different conservation efforts and approaches. Resource lighting and HVAC systems, reducing waste programs, water-saving indicators, and ethical purchasing practices, for instance, have all been studied for their effects on ecologically sustainable development. Certain research has looked into the implications of inclusive and diverse efforts, staff development, and participatory programs on ecological responsibility (Zhang, and, 2022).

In terms of Hyatt Hotel Corporation, the theories, concepts, and models play a very crucial implication in order to manage initiatives of sustainability. The TBL framework can assist Hyatt in balancing its institutional, ecologic, and desired outcomes, as well as ensuring that its environmental policies are consistent with its general company approach. Through its own sustainability strategy, Hyatt can use stockholder theory to discover and interact with various stakeholders, as well as generate benefits for every stakeholder. Hyatt can benefit from the investigation of sustainability solutions in the accommodation sector to discover industry standards and effective means for meeting its environmental targets.

Overall, the articles and studies on corporate sustainability within the lodging economy provide helpful understandings and guidelines for comprehending and analysing sustainability efforts in this context (Nzuva, 2022). These models, and hypotheses, but instead investigations have significant effects on businesses such as Hyatt Hotels Corporation, which is looking to recycle or reuse and enhance its overall environmental practices. Hyatt can create better sustainable development tactics that are consistent with some of its strategic objectives and generate advantages for every stakeholder by utilizing such methodologies and perspectives.

Discuss the current situation

Hyatt Hotels is an international hospitality company with over 1,000 properties in far more than 60 countries. The business is committed to conservation and also has applied a range of programs and practices to minimize its ecological footprint, increase social culpability, and optimize financial stability.

Environmental Sustainability:

As part of its commitment to reducing its environmental impact, Hyatt Hotels Corporation has undertaken several initiatives, including:

Minimise consumption of energy: A variety of energy-efficient lighting and HVAC systems have been installed throughout the company's properties, as well as energy management systems to track and manage the company's energy consumption (Mejia, 2019).

Reduce water consumption: Hyatt has implanted low-flow showerheads and faucets as part of a water conservation program, as well as flood mitigation systems to track and regulate water intake.

Reduction in waste: There are some waste reduction programs implemented by the company like composting, recycling, and developing certain waste management programs for tracing and handling waste generation.

Social Sustainability: In addition to promoting social responsibility, Hyatt Hotels Corporation has undertaken the following initiatives:

Inclusion and Diversity: To promote an atmosphere of regard and pluralism throughout its properties, the business has developed equality and inclusion programs.

Training of employees: Hyatt offers comprehensive worker training programs, as well as programs to encourage wellness and optimal health (Flori?i?, 2020).

Community Engagement: Volunteer service and charity initiatives have been founded by the corporation to interact with surrounding people and improve social culpability.

Economic Sustainability:

There are many efforts made by Hyatt for improving economic sustainability with the help of some initiatives which are as follows:

Sourcing with responsibility: To help ensure that this production process is ethical and sustainable, a business is using ethical purchasing practices

Financial performance: Hyatt has set environmental targets that are in line with its overall corporate approach and has endeavoured to enhance its financial health through sustainable farming.

Hyatt's dedication to environmentally friendly behaviour is obvious in its company social responsibility (CSR) reports, which either show the industry's sustainability efforts but also acting skills. The findings underscore the progress of the project toward commitments and demonstrate the influence of its own decisions (Nguyen, and Chiu, 2023). For example, between 2006 and 2020, the group stated a 25% decline in emissions of greenhouse gas brightness, a 21% decline in power generation use density, and a 26% lower water use density. The outside regulators and organizations, such as the Governance Reporting Initiative (GRI) and the United Nations Framework for Sustainable Development Targets, also have an impact on Hyatt's sustainability initiatives (SDGs). The company's CSR articles adhere to GRI disclosure requirements, and its conservation objectives are in line with the SDGs. Hyatt's environmental policies illustrate a dedication to balancing the goals of different stakeholders, including workers, consumers, stockholders, and local governments. For instance, the industries' inclusive and diversity programs and ongoing training projects are aimed at generating benefits for staff members, whereas its participatory measures and ethical purchasing practices are intended to bring about worth for affected residents and vendors (Paulins, and, 2020).

The community at large has usually embraced Hyatt's sustainable strategies, with the many media sources and renewable energy organizations showcasing the child's success and statesmanship in the field. However, some have criticized the industry's environmental initiatives, particularly in regard to supply chain public accountability and its effect on the environment (Saputra, and, 2023). Finally, Hyatt Hotels Corporation has shown a strong dedication to organizational sustainability by making substantial attempts to minimize its environmental effects, encourage social culpability, and achieve better financial stability. The industry's measures are in line with those of the outside regulatory authorities and groups, and they show that it is dedicated to balancing the goals of different stakeholders. While some have criticized the industry's sustainability practices, Hyatt's environmental policies are a productive step towards finding the three principles of CSR practices: institutional, physical, and socially sustainable development.

Provide key recommendations and present one of these as a future strategic option

According to the analysis above, Hyatt Hotels Corporation must have taken substantial steps forward toward sustainable practices. However, the company can still enhance its environmental practices and further action in accordance with its strategic plan with both the three principles that make up sustainability.

Supply chain management is one area where Hyatt might help enhance its sustainability goals. While a business has set up responsible sourcing practices, openness, and record-keeping could be improved. Hyatt may want to consider more stringent distribution network auditors and disclosing procedures to guarantee that its suppliers adhere to ethical and sustainable standards (Hossain, Kannan, and Raman Nair, 2021). It could aid in reducing improved corporate hazards and guaranteeing that now the company is fully committed to its sustainability goals.

Some other neighbourhood in which Hyatt's sustainability effectiveness might be improved is in its endeavours to lower its environmental impact. While a firm has achieved significant strides toward the goal of cutting emissions of greenhouse gases, there is still more to do in definitions of renewable power adaptation and carbon compensating. To start reducing its dependence on petroleum and coal, Hyatt could suggest buying renewable electricity facilities such as wind turbines and solar cells. Furthermore, the corporation could think about compensating for its carbon pollution by purchasing carbon taxes and other methods.

Relocating forward, Hyatt's best strategic option for sustainable practices might be to implement a resource efficiency approach. A corporate sustainability view entails architecting items and methods with the goal of minimizing waste and increasing operational efficiencies. Hyatt could decrease its environmental effects and develop fresh commercial possibilities by embracing a corporate sustainability methodology. For instance, the business could look into ways to repurpose but also increase recycling all over its qualities, such as by using sustainable power and implementing open systems (Wynn, and Jones, 2023). A sustainability-oriented technique would also allow Hyatt to better connect the sales strategy with the three sets of factors. The business would have the ability to generate shareholder value while minimizing its environmental impact by choosing to focus on eliminating waste, economization, and responsibly sourcing.

To summarise, while Hyatt Hotels Corporation has made considerable strides towards sustainable practices, there continue to be areas where its firm can make improvements. The corporation may further line up its business model with both the three sustainability foundations and develop novel revenue streams while decreasing its ecological effect by wanting to adopt a resource-efficient sustainable business model.


According to the findings of the study, corporate governance is widely recognized as a critical business priority, with so many manufacturers incorporating that into their key business plans and procedures. In terms of Hyatt Hotel Corporation, the business has implemented significant modifications to decrease waste and reprocess materials for a healthy place. It improves their capacity for enhancing future activities and dealing with environmental governance. The company recognizes that its transactions have hurt the planet and neighborhoods, and it works to reduce this repercussion through a variety of practices and initiatives. The business has set up vendor eligibility requirements, which include ethical labour practices and environmental standards. Staff is urged to propose new sustainable development concepts and efforts. To allow new qualities to meet stringent sustainable goals, the business launched an environmental protection infrastructure project.


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