Analysis of Environmental Reporting Practices in Hospitality Industry in Ghana

Environmental reporting is a crucial tool for organisations to effectively communicate their environmental performance to stakeholders, foster transparency, and mitigate potential negative impacts. The study’s goal was to investigate environmental reporting practices in Ghana’s hospitality industry. The hospitality industry, despite its economic significance and environmental impact, is an excellent institution for environmental reporting studies due to Ghanaian problems and hospitality opportunities. This research employed a quantitative analysis of environmental disclosures from 192 hotels in Ghana. The researcher gathered data from annual reports, utility bills, and water bills, then conducted a systematic evaluation of these documents to gauge the extent and calibre of environmental reporting. The data was categorised into five groups using the Index of Environmental Disclosure (IED). Descriptive and inference statistics, such as measures of central tendency and dispersion, was employed to quantify and summarise the environmental disclosures. This allowed for a comprehensive assessment of present practices and the identification of opportunities for improvement in the Ghanaian hospitality industry. The study’s findings reveal the hostels’ environmental performance, with a high score of 75.52% for Environmental Policy and Initiatives. However, the study identified poor pollution management and reduction efforts at 38.44%. The Environmental Reporting Elements category scored 27.89%, which suggests more transparent reporting. The Environmental Audit and Compliance category scored 39.96%, indicating partial compliance. It emerged that a very modest positive correlation (r) of 0.12531 exists between hotel age and total disclosure, suggesting that as hotels age, their total disclosure increases marginally. The result shows significant variances in overall disclosure among the four hotel groups, with star ratings explaining much of the diversity: 2-star hotels have the lowerst mean total disclosure percentage, 3-star slightly higher, 4-star significantly higher, and 5-star highest. This positive correlation between hotel star ratings and environmental transparency shows that 4-star and 5-star hotels are more environmentally conscious. Sustainability in the hospitality industry requires environmental reporting to track progress, create standards, and drive continual improvement. This study offers valuable guidance to hotels, lawmakers, and other individuals or groups interested in promoting sustainability and transparency in the industry.