B Corp hospitality: What does it take? By Katherine Price, Sustainability Editor, H&C News.
Exclusive Collection’s managing director, Danny Pecorelli recieving B Corp certification
July felt like an ominous foreboding of what is to come and a reminder of how climate change will increasingly affect us if we do nothing about it.
The UK recorded its highest ever temperature, with hundreds of people believed to have died as a result. And just as the month came to a close, it was announced that parts of southern England will see a hosepipe ban come into force as the country saw its driest July in 100 years. The 28th marked Earth Overshoot Day – the date when humanity has used all the biological resources that the Earth regenerates during the entire year.
But there is help and support out there for businesses that recognise the necessity of changing the way the sector operates to ensure a sustainable future for all.
There are a multitude of green accreditation schemes that vary in focus and robustness. B Corp is one that has grown in recognition over recent years for its ‘people, planet, profit’ approach.
Although any for-profit company with at least one year of operations may pursue B Corp certification (new companies can be ‘pending B Corps’ and put the framework in place), very few hospitality operators have so far achieved the accolade.
B Corp hospitality
Houston & Hawkes recently became the UK’s first B Corp contract catering business. French restaurant groups including Big Mamma Group and Cojean have the accreditation, as does Italian pasta brand Miscusi, which opened its first UK restaurant last year.
The group that owns hotels including Watergate Bay in Cornwall, the Beach Retreats collection of self-catered cottages and Another Place, The Lake, in Cumbria recently submitted its application after 18 months of work.
“It’s about the impact of your business on a number of levels: within the community, your people, on the environment, not just measuring your carbon footprint and trying to reduce it. So, it felt like a really good challenge for us and one that, philosophically, really aligned to our values,” says group managing director Ben Harper.
What it involves
Applicants are guided by the B Impact Assessment (BIA), a free and confidential online tool which covers approximately 200 questions divided into five categories: governance, workers, community, environment and customers. The points-based scoring system measures a company’s performance from supply chain and carbon footprint to charitable giving, diversity and inclusion policies and employee benefits.
Harper says a big focus for the business has been on HR policy work, “all of the stuff that we knew we had, but we didn’t necessarily have written down in a way that was fit for purpose”. Once a business has scored a minimum of 80 points on the BIA, it can submit the assessment to B Lab and begin the review process, in which documentation and evidence will need to be provided. The one-off submission fee costs £250 and certification costs an annual fee based on the company’s revenue.
Harper praises both the content on B Corp’s website, as well as the network of accredited businesses and ‘B Leader’ ambassadors available to support companies through the journey.
“I’ve been connected to so many new people as a result of this process, all of whom just want to share their journeys and their work,” he says.
Companies are also required to change their constitutional documents, for example articles of association on Companies House, committing them to considering all stakeholder interests in decision-making. As well as shareholders this includes employees, suppliers, society and the environment – so Harper advises shareholders must be on board before you start the process.
“Do the desk work first,” he advises. “Talk to other people who have been on the journey and ensure all your shareholders and stakeholders, whether it be banks or owners, really understand the journey that you’re going on. Otherwise, there will be surprises.”
While he says the process may not suit every business – and he thinks the slow uptake within the hospitality industry is due to the fact it is such a rigorous process – Harper says it has changed the way he runs the companies, his outlook on business, and now shapes the way company decisions are made.
“It’s given a measurable way to make sure that you’re doing the right thing by your people, your business and your communities, which has been really quite powerful for us. It really resonates, and not just with the younger demographic, it’s with everybody,” he says.
“The whole philosophy is based on balancing people, planet and profit. Nine times out of 10, if you do the right thing on the people and planet elements of your business model, the profit will come. If you do the right thing by your people, you’ll attract the best people and deliver a great hospitality experience. If you do the right thing by the planet, you’ll have a long-term, sustainable outlook on business generally. And a lot of the time, doing the right thing by the planet delivers savings. If you focus on those two core pillars, the profitability will come, rather than thinking profit first and the other stuff is just a tick-box exercise,” he adds. The group is hoping to be accredited in the next 8-10 months across its businesses.
“We’ll wait and see – we’re not there yet but we think we’re about there,” says Harper.
Post-accreditation
Exclusive Collection – a group of luxury hotels including Pennyhill Park in Surrey, South Lodge in Sussex, and Lainston House in Hampshire – was the first UK hotel group to become a B Corp in October 2021 with a score of 80.3.
“A lot of things we were already doing but we just weren’t documenting them. We aren’t perfect but we are on the journey and we’ve got a long way to go,” says managing director Danny Pecorelli (pictured). “We scored well but I just saw so much more opportunity – it challenges you on where you can do better.”
Pecorelli was drawn to B Corp as he wanted a pan-industry accreditation. “If you always do what other hoteliers do, you’re going to end up with the same results,” he says.
B Corp works on a three-year accreditation cycle, and Exclusive is targeting a score of 90-95 points next time. Pecorelli has already identified four areas of improvement to get the business there: carbon sequestration and biodiversity; diversity, equity and inclusion; supplier engagement; and engagement with local educational institutions and charities.
“I can’t stress enough how beneficial it is,” he says. “Not only do I hugely believe that there are commercial benefits, both in terms of revenue, because there are customers in every segment looking for it, but even in cost savings.”
For instance, instead of buying physical newspapers and magazines every day, the group now offers access to publications online or via in-room tablets.
“We’ve enhanced our offering, saved ourselves a fortune and done better for the planet,” says Pecorelli.
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