©️Deep Sound Original · Author｜Lü Yue

For a time, ESG was all the rage. But in the past few years, it seems to have “cooled down” somewhat. This is not because the concept has been sidelined, however; rather, ESG is now taking the necessary path from “conceptual hype” back to “business fundamentals.” From China’s A-share market to the Hong Kong market and then to international markets, regulatory frameworks are becoming increasingly complete, disclosure requirements are being strengthened continuously, and companies must address substantive issues identification, data traceability, and outcome verifiability. In other words, ESG is no longer a “nice-to-have” bonus—it’s an unavoidable set of questions you have to answer.

Yet the more it becomes a set of questions that must be answered, the more many companies still stay at the “compliance-only” level.

On the one hand, ESG is vast and complex—from environmental impact, human resources, and supply chain management to corporate governance—touching nearly every corner of business operations, and it is difficult to implement. On the other hand, building a system means continuous resource investment: in the short term it is a cost, but only in the long term can it be converted into value. For companies accustomed to short-term decisions, this is unquestionably a tough challenge.

Recently, Jinjiang Hotels Group released its “Jinjiang Hotels 2025 Annual Environmental, Social and Governance (ESG) Report.” The report not only presents the staged achievements of ESG, but also clearly reveals how ESG, from a “report,” truly helps a multinational hotel group navigate cycles and drive high-quality growth.

ESG that happens naturally: from compliance disclosure to value creation

Jinjiang Hotels’ ESG journey is not achieved overnight; it is an evolution that happens naturally.

Compliance is the starting point—and the bottom line—of this path.

As early as 2016, Jinjiang Hotels began releasing social responsibility reports to the public on an annual basis. At a time when ESG had not yet become a core issue in China’s domestic capital markets, Jinjiang Hotels had already established a basic information disclosure and responsibility expression mechanism. This forward-looking awareness laid the groundwork for subsequent systematized development.

In 2023, Jinjiang Hotels established the Strategic Investment and ESG Committee under its board of directors, starting to推进 ESG work in a systematic way. Today, its ESG disclosure system has also shifted from earlier A-share compliance disclosure to dual disclosure for A+H shares. Behind this process is the company’s continuous advancement in data accumulation, management capabilities, and governance structure.

The building of strategy and systems is the main line of Jinjiang Hotels’ ESG evolution—from “taking action” to “having a system.”

At the organizational level, Jinjiang Hotels has built a three-tier governance structure of “committee—working groups—execution level,” extending ESG from the decision-making layer to the execution layer where it can truly be implemented, thereby forming a closed-loop mechanism for cross-department coordination and continuous advancement.

At the strategic level, Jinjiang Hotels published a strategic blueprint of “Pursuing Jin Cheng together,” with three pillars—“Jinse — Green Hospitality,” “Jin Xin — People-Oriented Care,” and “Jin Cheng — Responsible Governance”—corresponding respectively to the environmental, social, and governance dimensions. Meanwhile, through double materiality research and assessment—financial impact and social impact—the company selects the issues with the most substantive influence.

In 2025, Jinjiang Hotels identified three core material issues: climate change and greenhouse gas emissions, sustainable guest experience, and talent rights and well-being. These are at the intersection of what the capital market cares about, what business operations focus on, and what state-owned enterprises are responsible for socially. It is not hard to see that its ESG strategy can already transform complex issues into manageable, decomposable strategic modules—one that has a sense of top-level design and also exhibits industry benchmarking value.

Once a company has a clear governance structure, replicable strategic modules, and actionable, quantifiable issue “handles,” what it builds is not only internal capability, but also a foundation for exporting standards to the industry supply chain. As a leading enterprise, Jinjiang Hotels’ ESG practices naturally have the momentum to extend outward. The hotel industry is highly dependent on supply chains and service networks. When a company establishes standards and capabilities within its own system, it also gains the potential to drive upstream and downstream parties to transform together.

Against the backdrop of the industry as a whole still being in the exploratory stage, this ability to move from “self-practice” to “industry leadership” is precisely the responsibility “base color” of a state-owned enterprise.

From the three core issues: the system capabilities behind real implementation

When strategy moves from blueprint to execution, what is tested is no longer whether you can figure out what to do, but what you actually get done. In its practices across the three core issues, Jinjiang Hotels shows a shared characteristic: transforming grand ESG topics into system capabilities that are implementable, measurable, and replicable.

• Climate change: benchmarking international standards and “digitally” rebuilding the management model

For hotel companies, the issue of climate change and greenhouse gas emissions is, in essence, an operational matter. Hotels tend to have high energy consumption, scattered locations, and complex data. Reducing carbon is not only an environmental responsibility, but also a key variable in cost control and risk management.

Jinjiang Hotels’ response pathway can be broken down into four steps.

First is establishing targets and rules.

Jinjiang Hotels benchmarks national strategies, and it sets core climate targets for “peaking carbon emissions by 2030 and achieving carbon neutrality by 2060.” It also took the lead domestically in launching full-scope carbon footprint assessments and carbon-reduction plans. With data monitoring to optimize, energy-saving technology applications, and green operations as three major work focuses, it promotes the implementation of carbon reduction. For overseas operations, when the Luffi Hotels it acquired faced complex issues such as varying franchise store asset conditions and building structures, as well as more stringent compliance requirements, within the reporting period it initiated research on Science Based Targets (SBTi), planned and formed a specific carbon-reduction roadmap plan, formally established a target-oriented carbon-reduction strategy. It completed the identification of the best energy-saving path through an asset climate risk assessment, and developed an energy-efficiency assessment and scenario simulation tool. This tool can effectively identify opportunities and provide best energy-saving practice measures by simulating climate conditions, energy supply, asset scale, and operating models. It has already been piloted first in Campanile and Premiere Classe hotels, and it has invited peers to participate in free testing. The next step is to attempt to roll it out to all Luffi stores.

Overall, this “locally set direction, internationally aligned” dual-track strategy ensures that both domestic and overseas operations have their respective priorities and are adapted to local conditions, while also reflecting Jinjiang Hotels’ ability to manage complex business scenarios from a global perspective.

Second is benchmarking international standards and building its own management system.

Jinjiang Hotels has proactively introduced internationally recognized verification/certification systems such as HSB verification (Hotel Sustainability Basics) and EDGE certification (Excellence in Design for Greater Efficiencies). This means its strategy is backed by internationally recognized yardsticks, and it has genuinely “earned its credentials,” rather than building plans behind closed doors. Using these two sets of standards as the framework for sustainable operations, Jinjiang Hotels promotes standardized management and continuous improvement in core issues such as energy, water resources, and waste across its hotel portfolio. At the same time, Jinjiang Hotels does not stop at benchmarking verification/certification; instead, it decomposes a set of executable and replicable standardized actions and integrates them into daily operational standards, effectively “translating” international standards into working rules that store teams can understand and implement.

Third is using digital tools to solve management challenges.

Facing tens of thousands of stores, complex business formats, and massive volumes of data, Jinjiang Hotels chooses a more pragmatic approach: it self-developed the “Jin Suo Neng” energy-carbon management platform. Its core is “simplifying complexity”: stores only need to input basic energy-consumption data, while the back end automatically completes carbon accounting. An embedded multi-level review mechanism ensures data traceability and verifiability. The invoice and receipt OCR recognition function also enables frontline employees to get started quickly. “Jin Suo Neng” is converting digital capabilities into real carbon-reduction execution power in a lightweight, iterative manner.

Fourth is filling gaps in cognition and disclosure capability.

During the reporting period, Jinjiang Hotels achieved three “firsts” in the climate dimension: it was the first time to systematically describe types of climate risks; it was the first time to conduct financial-impact assessments of climate risks and opportunities; and it was the first time to disclose scope 3 business travel carbon emissions. These breakthroughs, viewed across the entire hotel industry, can be considered among the leading. Especially scope 3 disclosure involves many categories across upstream and downstream value chains; data sources are dispersed, accounting is difficult, and defining responsibilities and rights is complex, causing many companies to hesitate. Jinjiang Hotels is not rushing to be comprehensive in the short term. Instead, through suitability and feasibility assessments, it first prioritized data centers and business travel—two categories with relatively better data foundations and comparatively mature accounting pathways—to break through first.

• Sustainable guest experience: ESG upgrading from “back-office management” to “front-end perception”

Regarding sustainable guest experience, Jinjiang Hotels’ core approach is to make consumers perceive, participate in, and recognize the value of ESG.

The “Minus One Stay” project is a typical example. In version 1.0 of 2024, the project set two core requirements: no use of the “six small items,” and no linen changes for repeat stays—members only need to tick a checkbox during booking to participate and receive points rewards. In 2025, the project was upgraded to version 2.0, with the key focus on connecting the member system, the PMS hotel management system, and the store execution back office. This closed-loop design ensures that green behaviors are truly traceable and incentivized, while also avoiding implementation deviations. By the end of the reporting period, 6,186 stores within mainland China had participated in the “Minus One Stay” project.

It is worth emphasizing that in Jinjiang Hotels’ practical calculations, the cost incurred from赠送 points is far lower than the cost of using disposable supplies once. This means that “Minus One Stay” is no longer a cost item, but rather becomes an efficiency tool.

In addition to “Minus One Stay,” the “Insect Hotel” is also an exploration of a brand-new product format.

In the hotel industry, there is a lack of ready-made implementation templates for the biodiversity topic. Jinjiang Hotels did not choose high-investment, major-rebuild “showcase projects.” Instead, it leveraged the resort hotel business format to develop an innovative project. Inspired by the insect hotel at its Paris Qamphor Hotel, in 2024, the first “Insect Hotel” in mainland China was launched in Xishuangbanna. In 2025, Tengchong Qinge Shanke Hot Spring Hotel, Taining Jinjiang International Resort Hotel, and Huizhou Nan Kunshan Liting Hotel followed suit. By the end of the reporting period, Jinjiang Hotels had 5 insect hotels.

All these projects follow scientific processes: first, professional institutions conduct ecological research and site selection assessments to ensure the chosen area can meet the survival needs of pollinating insects and also integrates with the hotel’s overall environment; then, based on scientific methodologies, the company writes project guidance manuals and designs the fill materials and structures according to local insect species; finally, it captures experience into standardized SOPs and training materials, providing support for replicating across stores.

From a business perspective, the value of the “Insect Hotel” project also lies in its potential to grow into a new experience-type product for Jinjiang Hotels in the resort hotel segment. ESG is no longer just a cost item for back-office management—it can become an innovative product that aligns with market demand.

• Employee rights and well-being: using organizational capabilities to support long-term operations

At its core, the hotel industry is highly dependent on people. Service quality, operational efficiency, and brand experience ultimately depend on the stability and capability of the “people.” Jinjiang Hotels’ practices around employee rights and well-being can be clearly broken down into three layers: culture, development, and incentives.

At the culture and emotion level, take “PACE,” which Jinjiang Hotels promotes within its limited-service domestic segments, as an example. Using innovation, responsibility, happiness, and growth as its core values, it builds stronger employee connections through mechanisms such as “Jinjiang Happy Growth Day,” an internal digital platform “Happy Planet,” and physical anniversary badges at the time of joining.

At the career development level, Jinjiang Hotels implements a dual-track promotion mechanism with management tracks and professional tracks running in parallel. These two tracks are interconnected, supporting talent mobility between management and professional areas.

At the system and rights layer, Jinjiang Hotels incorporates ESG goals (such as HSB verification) into management performance evaluation. It also deeply links the interests of core talent with the company’s long-term value through a restricted stock incentive plan, while continuously improving protection of women employees’ rights and interests, among other measures.

From the company’s perspective, these three layers reduce organizational volatility and enhance the stability of service and operations. From employees’ perspective, such companies are also better able to attract and retain talent. When employees feel respected and supported, they will pass that warmth on to guests—this is also a guarantee for service quality and brand experience.

From being an early mover to becoming a leader: building a trust closed loop among stakeholders

When ESG upgrades from “compliance work” to “a strategic foundation,” its value is no longer confined to Jinjiang Hotels itself; it begins to overflow outward and form a trust closed loop across three dimensions: users, investment institutions, and the industry.

For users, Jinjiang Hotels’ ESG is turning into an appreciable brand warmth.

Jinjiang Hotels breaks down sustainable concepts into specific touchpoints. Through “Minus One Stay,” green consumption becomes a choice that people can participate in and are incentivized for. Through “Insect Hotels,” biodiversity moves from an abstract concept into a vacation setting people can experience. Through the “Sustainable Hotel” label, consumers can recognize green choices right when booking. For users, these details accumulate into a brand impression. Choosing Jinjiang Hotels is not just choosing a place to stay—it’s also “voting” with values. This sense of recognition is the most solid foundation of brand loyalty.

For investment institutions, Jinjiang Hotels’ ESG practices are becoming a visible indicator for value judgment.

Non-financial risks are often the root cause of a company “blowing up.” And an enterprise whose ESG performance is sufficiently systematic and professional precisely builds complete risk prevention and control mechanisms in these areas. Jinjiang Hotels carries ESG issues from decision-making to execution through a three-tier governance structure. By introducing international standards and advancing practices and implementation in a locally adapted manner across the world, it ensures that ESG is measurable, traceable, and verifiable. When the market is stable, this capability is a “value-add”; when the market is volatile, it becomes the “ballast stone.” The company’s long-term stability and certainty also become more evident.

For the industry, Jinjiang Hotels is moving from being a pioneer to a co-creator.

The hotel industry as a whole is still in the ESG exploration stage. Whether Jinjiang Hotels rolls out standardized tools, explores digital pathways, or forms project SOPs, it is providing replicable reference samples for the industry. At the same time, through proactive learning from advanced industry experiences and participation in co-creation projects, Jinjiang Hotels is turning its own exploration into industry-shared knowledge.

From a time perspective, Jinjiang Hotels’ ESG work has already set a clear and orderly implementation rhythm: 2024 to 2026 is the start-up phase, focusing on foundational build-out and methodology validation; 2027 to 2029 enters the solidification and advancement phase, promoting large-scale rollout and ecosystem building.

This forward-looking phased plan shows that Jinjiang Hotels’ ESG work is both focused on what is practical and embraces development. It is also a concrete embodiment of its commitment to long-termism. While the industry is still exploring “how to do ESG,” Jinjiang Hotels has already been answering “how to do it continuously and at scale.”

When ESG truly becomes the foundation for operations, it brings not only lower compliance risk and higher operational efficiency, but also a sense of calm that allows it to pass through cycles. This also means Jinjiang Hotels is not only leading in the ESG dimension—it is also taking an earlier step along the path to high-quality growth.