IHG Chief Sustainability Officer warns hotel operator won’t meet 2030 climate target

Multinational hospitality group IHG has seen its carbon footprint grow by 7.2% since 2019, with Chief Sustainability Officer Catherine Dolton warning that the firm is unlikely to achieve its 2030 climate target.

Ahead of the release of its annual report later this month, Dolton shared a carbon update with investors this week, where she announced that the group’s total emissions are up 7.2% since 2019 due to business growth, slow progress in clean energy in the countries where it operates, and “the lack of a viable commercial and operating landscape to support energy efficiency”.

The company opened 371 hotels (more than 59,000 rooms) in 2024 alone – up 23% from the previous year – with revenue up 7% to US$2.31 million.

Carbon efficiency progress not enough to offset business growth

Despite progress in emissions intensity, which is down 11.5% per available room compared to 2019, IHG is “not on track” to meet its 2030 science-based target to reduce absolute Scope 1 and 2 emissions, as well as Scope 3 emissions from its franchised hotels’ energy consumption and fuel and energy-related activities, by 46%.

“Because we are not on track to meet our target does not mean we will stop trying. We will continue our many initiatives and dedication to assisting our hotel owners to reduce their carbon emissions. We will also maintain ongoing, transparent reporting against our existing targets, and we will leverage our scale and market position to influence change across the hospitality industry,” Dolton added.

IHG operates almost 6,700 hotels under 20 brands – including Crowne Plaza, Holiday Inn and InterContinental. But all but 16 of these properties are managed or franchised, meaning that the brand can only use its power of influence to push owners towards climate action. “Capital expenditure budgets are controlled by the asset owners,” she explained.

IHG climate work

Some of the initiatives the company has taken to promote decarbonisation include training hotel owners, setting annual energy reduction targets, mandating energy conservation measures, and developing programmes for franchised or managed hotels to access renewable power purchase agreements.

As part of its transition plan, IHG also wants 100% of new-build hotels to operate at very low or zero carbon emissions by 2030. For that, the firm has created a ‘low-carbon pioneers’ programme bringing together energy-efficient hotels that have no fossil fuels combusted on site, are backed by renewable energy, and have a third-party sustainability certification. 

“This group of low operational carbon hotels is the first community of its kind in the industry and is helping IHG to test, learn and share findings on sustainability measures. The ambition is to inspire other properties to join the programme and help encourage wider adoption of carbon reduction practices across IHG’s estate,” explained Dolton.