CSRD Reporting for Hotels and Restaurants: Energy, Water, and Waste
Hotels, restaurants, and tourism businesses are among the most visible parts of Europe’s sustainability transition. From heating and cooling guest rooms to serving food and managing laundry, hospitality SMEs use significant amounts of energy, water, and materials.
The Corporate Sustainability Reporting Directive (CSRD) and the Voluntary Sustainability Reporting Standard for SMEs (VSME) help these businesses disclose their environmental impacts in a clear and comparable way — without needing an in-house sustainability team.
This guide explains how small hotels, guesthouses, and restaurants can meet CSRD and VSME expectations for energy, water, and waste reporting using data already available in bills, invoices, and supplier records.
Why Sustainability Reporting Matters for Hospitality SMEs
The CSRD requires large companies (and eventually their suppliers) to publish sustainability data. For hospitality SMEs, this means clients, investors, or public tenders may ask for verified information on:
- Energy efficiency and GHG emissions
- Water use and wastewater
- Food and general waste
The VSME Basic Module simplifies this for smaller firms, covering:
- B3: Energy and greenhouse gas (GHG) emissions
- B6: Water use and management
- B7: Resource use and waste
By reporting on these areas, SMEs can demonstrate responsibility, win low-carbon contracts, and often reduce operating costs in the process.
Step-by-Step: Reporting Energy Use and Emissions (VSME B3)
Step 1 – Gather Energy Data
Collect all utility bills and fuel invoices for the reporting year, including:
- Electricity (kWh or MWh)
- Natural gas, heating oil, or LPG
- District heating or cooling
- Renewable energy (e.g. on-site solar)
If you manage several locations, keep each property separate — it helps compare performance.
Example:
Hotel Aurora: 160,000 kWh electricity, 45,000 kWh gas Restaurant Bloom: 85,000 kWh electricity, 12,000 kWh gas
Step 2 – Convert to MWh and Calculate Emissions
Convert energy to MWh (1 MWh = 1,000 kWh) and estimate emissions using standard factors:
| Energy Type | Conversion (kg CO₂e/kWh) | Example |
|---|---|---|
| Electricity | 0.25 | 245,000 × 0.25 = 61.3 tCO₂e |
| Gas | 0.20 | 57,000 × 0.20 = 11.4 tCO₂e |
Total Scope 2 emissions: ~72.7 tCO₂e
If you purchase renewable electricity, reduce emissions proportionally (e.g. 50% green = half the emissions).
Step 3 – Disclose Using VSME B3 Template
| Indicator | Unit | 2024 | 2025 (target) |
|---|---|---|---|
| Total energy use | MWh | 245 | 230 |
| % renewable energy | % | 40 | 60 |
| Scope 1 + 2 GHG emissions | tCO₂e | 73 | 65 |
| GHG intensity (per guest night) | kg CO₂e | 18 | 16 |
Narrative:
“Electricity use decreased by 6% following the installation of LED lighting and occupancy sensors. The hotel plans to source 100% renewable energy by 2026.”
Step-by-Step: Reporting Water Use (VSME B6)
Hotels and restaurants rely heavily on water for cleaning, cooking, laundry, and guest facilities. Efficient management saves both resources and money.
Step 1 – Gather Data
Use water utility bills or meter readings. Track separately if possible for:
- Guest rooms
- Kitchen operations
- Laundry
Example:
Total annual water use: 3,800 m³ (hotel) + 1,200 m³ (restaurant) = 5,000 m³
Step 2 – Disclose and Set Intensity Metrics
| Indicator | Unit | 2024 | 2025 (target) |
|---|---|---|---|
| Total water withdrawn | m³ | 5,000 | 4,700 |
| Water intensity (per guest night) | litres | 220 | 210 |
| Water reused/recycled | m³ | 50 | 100 |
Narrative:
“Water-saving fixtures installed in 2024 reduced consumption per guest night by 5%. Greywater reuse is being piloted for garden irrigation.”
Step-by-Step: Reporting Waste (VSME B7)
Step 1 – Identify Waste Streams
Hospitality waste usually includes:
- Food waste from kitchen and guests
- Packaging waste (cardboard, glass, plastics)
- General waste (non-recyclable)
- Hazardous waste (cooking oils, cleaning chemicals)
Step 2 – Collect Data
Use invoices or collection reports from waste contractors. If data is unavailable, estimate monthly volumes (e.g. bin weights) and multiply by 12.
Example:
18 tonnes total waste per year; 12 tonnes recycled/composted; 6 tonnes to landfill.
Step 3 – Report Using VSME Template
| Indicator | Unit | 2024 | 2025 (target) |
|---|---|---|---|
| Total waste | tonnes | 18 | 16 |
| % recycled or composted | % | 67 | 75 |
| Food waste | tonnes | 8 | 6 |
| Cooking oil recycled | litres | 900 | 1,200 |
Narrative:
“Food waste reduced by 25% through portion management and composting. Used oil is collected by a certified recycler.”
Integrating Energy, Water, and Waste in One Report
| Section | Disclosure | Example |
|---|---|---|
| B3 – Energy and GHG | 245 MWh; 73 tCO₂e | Based on electricity and gas bills |
| B6 – Water use | 5,000 m³ | Water bills and meters |
| B7 – Waste | 18 tonnes (67% recycled) | Waste invoices |
| B2 – Practices and Policies | Annual energy and waste audits | Supplier monitoring and staff training |
Practical Tips for Hospitality SMEs
- Keep a sustainability folder (digital or physical) with all bills and waste invoices.
- Install sub-meters if you manage both rooms and restaurants.
- Train staff on “switch-off” and “waste sort” practices.
- Track energy per guest night and waste per meal served — ideal for benchmarking.
- Start with annual data; quarterly updates are optional but helpful for trend analysis.
How This Aligns with CSRD and ESRS
| Framework | Topic | Relevance |
|---|---|---|
| VSME B3 | Energy and GHG emissions | Electricity, gas, and heating fuel use |
| VSME B6 | Water use and management | Water withdrawal and reuse |
| VSME B7 | Resource use and waste | Food, packaging, and general waste |
| ESRS E1 | Climate change | Emissions reduction and energy efficiency |
| ESRS E3 | Water and marine resources | Sustainable water use |
| ESRS E5 | Circular economy | Food and waste recovery initiatives |
Together, these demonstrate how even small hospitality firms can comply proportionately with the CSRD’s double materiality principle.
Example: Boutique Hotel Disclosure Snapshot
Company: GreenStay Boutique Hotel (35 rooms, 10 employees) Reporting period: 2024 Key data:
- Total energy: 180 MWh
- Total GHG: 52 tCO₂e
- Water use: 3,000 m³
- Waste: 12 tonnes (70% recycled)
Narrative summary:
“GreenStay reduced total energy use by 8% and introduced water-saving showerheads. Local suppliers provide reusable packaging, reducing kitchen waste by 30%. Full renewable energy procurement planned for 2026.”
Key Terms
- CSRD: Corporate Sustainability Reporting Directive (EU 2022/2464)
- VSME: Voluntary Sustainability Reporting Standard for SMEs (EFRAG, 2024)
- Scope 1 emissions: Direct emissions from on-site fuel use
- Scope 2 emissions: Indirect emissions from purchased electricity or heating
- GHG intensity: Emissions per guest night or turnover
- Water intensity: Water per guest night or per meal served
- Circular economy: System where waste is minimised through reuse and recycling