Assessing
ESG
Agency Ratings in Hospitality: A Triangulated Perspective
Shaniel Bernard, Luana Nanu, Willy Legrand, Aneliya Antova ABSTRACT
This study examines methodological complexities of environmental, social, and governance (ESG) rating agencies in the hospitality industry, developing a transparent, sector‐specific framework to improve rating reliability amid inconsistent criteria, opaque scoring, and misalignment with hospitality's challenges, including high water use and labor intensity. A convergent mixed‐methods approach integrates quantitative content analysis, qualitative interviews, and surveys to evaluate ESG methodologies across six major agencies assessing the top 10 global hospitality companies, using 61 ESG codes aligned with the United Nations' Sustainable Development Goals and five analytical frameworks. Findings reveal significant methodological inconsistencies, with environmental criteria (79% mutuality) prioritized over social (66%) and governance (59%) factors, alongside transparency gaps that undermine investor confidence. While S&P Global and Ethos offer comprehensive coverage, MSCI and LSEG remain selective. By triangulating content analysis, surveys, and expert insights, this study proposes a hospitality‐specific evaluation model that emphasizes indicators such as water use and labor retention, advancing ESG scholarship and sustainable finance.