Reimagining Supply Chains: The Hospitality Industry’s Role in a Circular Future

June 17, 2025  •  ZACH PANLILIO

      The hospitality sector has faced significant challenges due to unsustainable supply chains. In a report gathered in 2023, 78% of hotel operators cited supply chain delays as the top challenge in their operations (Eser, 2025). Getting goods and services at the time needed proves to be difficult and poses an operational burden to hotels. This is not the only issue presented by the matter, however. From data gathered by the World Sustainable Hospitality Alliance and the United Nations, it was found that the hospitality industry contributes roughly 1% of global carbon emissions. With this considered, it needs to reduce its emissions by 66% by 2030, and 90% by 2050 (versus 2010 levels) to ensure that the growth forecast for the industry does not lead to a corresponding increase in carbon emissions (World Sustainable Hospitality Alliance, 2022). While, at first glance, 1% may not seem like much, it is equivalent to 370 million tons of carbon dioxide– more emissions than the entire country of Australia or the Philippines emits annually. As the industry continues to grow, this percentage is expected to rise. Hotels and similar establishments must implement more sustainable supply chain management practices for operational resilience and environmental sustainability.

Some measures have been suggested to promote circularity within supply chains. One of which would be the integration of “circularity criteria”, such as recyclability, reusability, and resource efficiency, into the supplier selection process (Bai et al., 2022).  This takes a more open perspective when companies evaluate suppliers, suggesting to select those that align with circular economy principles, and not just the traditional cost and quality metrics that have been commonly used. This mainly involves criteria such as the reusability of products, the use of recycled materials, waste minimization, as well as energy and resource efficiency. This model proposes a good way for companies to balance cost-effectiveness with environmental responsibility.

Another measure to implement circularity would be the usage of product life cycle assessments, otherwise known as LCAs. These are used to evaluate circularity at every stage of a product’s life, from design and production to use and end-of-life (Vimal et al., 2021). By analyzing how materials are used, recycled, and disposed of, companies can identify specific areas to improve resource efficiency and reduce waste. Not only do LCA’s promote awareness of product usage, but they also provide companies with the opportunity of prolonging a product’s lifespan, or even reusing / recycling. If implemented properly, LCAs can not only promote more sustainable practices, but also one where companies are transparent and accountable fortheir own use.

The stages in a product life cycle. Photo from PRé-Sustainability