From Voluntary Certification Schemes to Environmental, Social and Governance (ESG) Strategy: Bridging the Gap for Workforce Reporting Requirements in SME Hospitality

Small and medium-sized enterprises (SMEs) play a pivotal role in advancing sustainability, yet many struggle to translate voluntary sustainability practices into structured, strategic business models. This study examines how this gap can be bridged between voluntary certification frameworks and emerging regulatory requirements, with a specific focus on workforce-related sustainability reporting under the European Sustainability Reporting Standards (ESRS). Using a qualitative case study of a Green Globe-certified, family-owned hotel, the research conducts a comparative gap analysis between existing organisational practices and corporate disclosure requirements, applying a Policy–Action–Target–Metric (PAT&M) framework. The findings reveal strong alignment in Policies and Actions (89%) but limited alignment in Targets and Metrics (14%), indicating a gap between sustainability activities and strategic performance management. The results highlight the need to transition from compliance-oriented initiatives to integrated, data-driven management systems. The findings also suggest that voluntary certification schemes, such as Green Globe, can be a useful first step in order to achieve better corporate reporting capabilities related to environmental, social and governance (ESG) issues. As practical implications, a roadmap solution is proposed to support system-level integration, transparency, and measurable outcomes for better business resilience.