A Game Changer for Tourism, Hospitality, and ESG Compliance
The European Union has long been at the forefront of sustainable agriculture and food production. With the implementation of Regulation (EU) 2018/848, a new era for organic farming and its impact on the tourism and hospitality sectors has begun. This comprehensive framework reinforces transparency, strengthens consumer protection, and aligns with the EU’s broader environmental, social, and governance (ESG) principles. In this article, we explore the regulation’s impact on tourism and hospitality, the certification process, and the added value for businesses and consumers alike.
Strengthening Organic Certification: The Core of Regulation (EU) 2018/848
The EU Organic Farming Regulation (EU) 2018/848, which fully came into effect on January 1, 2022, replaces the previous organic farming legislation, streamlining the certification process and tightening compliance measures across member states. The key objectives include:
- Enhancing Traceability: The regulation introduces stricter monitoring mechanisms to ensure that organic food meets uniform standards across the EU. This means that businesses sourcing organic products can trust the authenticity of their ingredients, reducing the risk of fraudulent claims and ensuring a fair marketplace for genuine organic producers. The enhanced traceability also reassures consumers, who are increasingly conscious of food origins and production methods, further boosting demand for certified organic goods.
- Preventing Fraud: With a more transparent supply chain, fraudulent claims of organic status are minimized. By implementing rigorous checks and standardized certification processes, the EU is actively closing loopholes that previously allowed mislabeling and deceptive marketing. This move strengthens the integrity of the organic industry and reinforces trust between producers, suppliers, and consumers, ensuring that the organic label maintains its credibility in an ever-expanding market.
- Expanding the Scope: The regulation extends organic certification to new product categories, including essential oils, salt, and beeswax. This inclusion broadens the range of available organic-certified goods, providing businesses in the HoReCa sector with more diverse sourcing options. For hospitality establishments aiming to create a fully organic experience, this expansion is particularly beneficial, allowing them to offer a wider variety of organic amenities and products to their guests.
- Facilitating Third-Country Imports: Organic imports into the EU must now adhere to the same strict standards as EU-produced goods, closing loopholes that previously allowed lower-quality organic imports. This is a crucial development for both businesses and consumers, as it ensures that imported organic products meet the same high standards as those produced within the EU. For HoReCa businesses sourcing organic ingredients globally, this regulation provides confidence that their supply chain remains consistent and trustworthy.
Businesses in the HoReCa (Hotels, Restaurants, and Catering) sector that embrace these organic standards can now source ingredients with greater confidence, ensuring compliance with sustainability goals and offering guests high-quality organic products. Moreover, by aligning their sourcing with these stringent regulations, businesses can market themselves as leaders in sustainable hospitality, attracting an increasingly eco-conscious clientele.
The Impact on Tourism and Hospitality
Sustainability is a growing trend in tourism, and organic farming regulation significantly influences the sector. Hotels and restaurants that integrate organic-certified food into their offerings will benefit from:
- A Competitive Edge: Tourists, particularly in Europe, increasingly seek eco-friendly accommodations and dining experiences. Promoting certified organic menus enhances a property’s appeal. With growing consumer awareness of sustainability, travellers are actively choosing accommodations and restaurants that align with their values. Offering organic-certified food not only sets businesses apart but also allows them to tap into a rapidly growing niche market that values ethical consumption and environmental responsibility.
- Higher Consumer Trust: The regulation reassures consumers that ‘organic’ claims are verifiable and reliable, strengthening brand credibility. Misinformation and greenwashing have made some consumers sceptical of sustainability claims. However, with Regulation (EU) 2018/848 ensuring stricter oversight, hospitality businesses that commit to organic certification can provide solid proof of their eco-friendly practices. This builds customer loyalty, enhances brand reputation, and increases repeat business from guests who prioritize sustainability.
- ESG Alignment: Hotels and restaurants striving to meet ESG standards can leverage organic food sourcing as a key sustainability metric. ESG reporting is becoming an essential part of corporate governance, and organic sourcing fits neatly into these frameworks by demonstrating concrete steps toward environmental responsibility. By integrating organic-certified ingredients, hospitality businesses can strengthen their sustainability reports, attract investors interested in responsible businesses, and fulfil corporate commitments to ESG principles.
- Local Supply Chain Support: The new regulation supports small-scale organic producers, enabling direct partnerships between local farms and hospitality businesses, reducing carbon footprints and reinforcing farm-to-table experiences. Shorter supply chains mean fresher products, reduced transportation emissions, and a boost to regional economies. By fostering partnerships with local organic farmers, hospitality businesses not only contribute to sustainable agriculture but also create unique, location-based culinary experiences for their guests.
ESG and Organic Farming: A Natural Fit
The EU’s ESG framework places a strong emphasis on sustainable food systems, making Regulation (EU) 2018/848 an essential tool for businesses committed to responsible environmental practices. Organic farming directly contributes to ESG goals by:
- Reducing Chemical Use: Organic agriculture minimizes pesticides and fertilizers, reducing environmental contamination. This results in cleaner air, soil, and water, benefiting both local ecosystems and human health. Businesses that incorporate organic ingredients into their menus contribute to a more sustainable and healthier food system while reducing their environmental impact.
- Encouraging Biodiversity: Organic farming fosters ecosystems that support pollinators and maintain soil health. The preservation of biodiversity is crucial to the long-term sustainability of agriculture. Hotels and restaurants that support organic agriculture indirectly contribute to conservation efforts, helping maintain essential ecological balance while offering guests high-quality, naturally grown food.
- Lowering Carbon Footprints: By promoting local and sustainable supply chains, the regulation aids in reducing transportation emissions. Sourcing food locally means fewer food miles, lower fuel consumption, and reduced greenhouse gas emissions. Businesses that prioritize organic, locally sourced ingredients demonstrate a tangible commitment to reducing their carbon footprint, appealing to both conscious consumers and investors.
- Enhancing Social Responsibility: The organic sector supports fair labor practices, ethical sourcing, and community-based agriculture. Supporting organic-certified suppliers often means backing small-scale farmers and cooperatives that prioritize ethical labor conditions. Hospitality businesses that choose certified organic ingredients are indirectly supporting fair trade and sustainable employment practices.
A Sustainable Future for European Tourism
Regulation (EU) 2018/848 is more than an agricultural policy—it is a catalyst for change in tourism, hospitality, and ESG compliance. By embracing the new organic standards, businesses in the HoReCa sector can enhance their sustainability credentials, meet consumer expectations, and contribute to a more responsible global food system. For Skal Europe and its members, this presents a unique opportunity to lead by example, championing organic and sustainable practices in tourism worldwide. Through informed sourcing decisions, transparent communication, and a commitment to sustainability, the hospitality industry can play a pivotal role in shaping a greener, healthier future for both businesses and consumers alike.
