ESG stands for Environmental, Social, and Governance. By understanding company

strategy and performance in each area, people (employees, investors, consumers, governments) can decide how to interact with that company.

The Alō algorithm is designed to assess the impact within each pillar, and none of these actions are isolated. For example, a hotel policy (G) to use a local supplier for eggs (S) not only puts money back into the community (S), it also lightens the hotel’s carbon footprint by avoiding long-haul transport (E).

The Alō algorithm objectively and transparently evaluates hotel ESG commitment relative to competitors across 12 key categories.

How does a business interact with the natural environment? What are the impacts of the business operation? What actions is the company taking to improve negative effects? Another way to think of this pillar is "natural capital".

Biodiversity is all the different forms of life in one place: birds, trees, fungi, water, and microorganisms, to name a few. Biodiversity is why the planet can provide food and water for all the living things it supports.

➡️ Partner with the local nature society to identify invasive and native species, evaluate onsite landscaping, and then replace any invasive elements with native plants.

Climate action is actions taken by individuals and companies to mitigate the human impact on the planet. Climate action solutions are evolving continuously alongside climate risks.

➡️ Track, measure, and report carbon emissions using the free, industry-standard, Hotel Carbon Measurement Initiative (HCMI) calculator produced by the Sustainable Hospitality Alliance.

What is keeping the hotel lights on? OK, yes, electricity. But what is the *source* of the electricity? Coal? Sun? Water? A hamster on a wheel?

Fortune 5000 companies are seeking to partner with hotels buying or generating energy from renewable sources: solar, hydro (wind), and in some cases, nuclear.

➡️ Conduct regular energy audits to identify and address areas of waste.

Garbage. Trash. You know this one. Waste is all the stuff that gets thrown away for any reason. Waste is the creation of unwanted or unusable materials, posing a burden on landfills, incinerators, and other waste management systems.

For a hotel, the food & beverage operation is often the primary source of waste. In the US, we waste over 72 billion pounds of food a year. Yet 54 million people are still suffering from food insecurity.

➡️ Donate used but still usable linens and towels to a local animal shelter.

➡️ Partner with a technology and logistics provider to track surplus food from pickup to donation.

Water stewardship is a commitment to using water wisely and sustainably to protect the environment, ensure social equity, and promote economic prosperity.

➡️ Collect and reuse rainwater for landscaping and other non-potable purposes.

How do a business's activities affect people? People include the hotel workforce, local communities, customers, and those who work in the extended supply chain.

The practice of making products, services, and environments inclusive and usable for people of all abilities, including those with disabilities. This can include physical and digital spaces, information, communication, and company culture.

➡️ Update website photography to include detailed photos of accessible rooms, including measurements, and partner with a local accessibility consultant to assess and improve existing hotel features and policies.

Community stewardship involves a company's efforts to engage with and contribute positively to the communities in which it operates. Key elements include supporting local economic development and investing in community infrastructure and services.

➡️ Create a community coalition of local artists, business owners, creators, non-profits, and neighbors to guide hotel charitable initiatives.

Cultural stewardship encompasses a company's commitment to preserving and respecting the cultural heritage and diversity of the regions in which it operates. Key elements include

respecting and preserving local cultural practices, protecting and promoting indigenous rights, and avoiding activities that could harm cultural heritage.

➡️ Work with the local historical society or library to determine the history of the land on which the hotel operates. If the hotel is operating on indigenous land, dedicate staff and departmental meetings to learning about the tribe(s), their history, and if any tribal council exists today. Post a land acknowledgment statement and consider charitable support if appropriate.

Respect for human rights involves ensuring that a company's operations and supply chain do not violate or contribute to violations of internationally recognized human rights standards. This includes avoiding harmful practices such as forced labor, child labor, discrimination, and unsafe working conditions, but also ensuring customer and employee data privacy.

➡️ Hotel employees are trained quarterly on industry initiatives to combat human trafficking and forced labor. The whistleblower policy is posted in multiple languages and formats throughout back of house, and is available for reporting 24-7.

Companies contribute to social justice by fostering inclusive workplaces, promoting diversity in leadership roles, and addressing social inequalities within their spheres of influence. This includes fair labor practices, equal opportunities, and initiatives that benefit local communities.

➡️ Create a job-sharing option for operational roles like FOM that would typically exclude working parents.

Prioritizing well-being involves considering the impact of business operations on the well-being of employees, customers, and communities. This includes implementing employee wellness programs, supporting local community development, and contributing to the overall quality of life in the areas where a company operates.

➡️ Offer a monthly wellness stipend that can be used towards streaming fitness platforms, gym memberships, meditation apps, or a subscription to a caregiver platform like care.com.

Responsible sourcing is the practice of buying goods and services from suppliers who meet certain environmental, social, and ethical standards. This includes things like using recycled materials, supporting fair labor practices, and sourcing from local businesses.

➡️ The sales and catering team reviews existing supplier partnerships for client gifts and collateral and moves their contracts from national chains to locally owned companies, which offer lower prices and personalized service.

How does a business run? What are the policies, structures, and procedures in place? Who makes decisions, and how?

Auditability is the ability to systematically review, assess, and verify the performance and adherence of a company or organization to its ESG commitments and standards. It involves establishing and maintaining processes that allow for independent examination and verification of the company's activities and impacts. TLDR: prove it!

➡️ The hotel ESG committee sets and maintains a regular meeting cadence, defines metrics to track and measure, and reports on those metrics at every meeting. The minutes are published to a shared company site or drive, and used to compile a year-end ESG report to stakeholders.

ESG success doesn't happen by accident. The process is very similar to everyone's favorite key account or SMART planning. Integrating ESG into a hotel operation requires deliberate development, implementation, and oversight of initiatives and practices in the overall business strategy.

After an ESG strategy is established, it has to be translated into concrete actions and initiatives. These could be policies, programs, or projects owned by one or many departments. Each action is attached to a goal or KPI (Key Performance Indicator) that is tracked, measured, and reported.

➡️ The hotel ESG committee identifies three primary areas of focus within the hotel and builds a strategy and management plan around these three areas. Relevant department heads are assigned actions and report on progress quarterly.

Most people are not ESG or sustainability experts, but everyone can understand the basic principles of using less stuff and saving money. Training could be integrating a broad understanding of what E-S-G is during onboarding or it might focus on hotel-specific practices and culture.

A key part of engagement is including employees and external stakeholders in ESG initiatives and decision-making processes. Fostering a sense of ownership and responsibility among employees can generate new ideas and commitment within a team.

➡️ A front desk agent notices an uptick in guests asking for accessibility and sensory items at check-in: weighted blankets, ear plugs, and white noise machines, and mentions this to her boss. Because the FOM is on the ESG committee, she proposes purchasing a library of sensory-supporting items for guests at their next meeting. The proposal is approved and the front desk agent leads an informal training about invisible disabilities to the front office team.