However, further research finds that companies that pay attention to ESG concerns experience improved value creation.
A strong ESG proposition correlates with higher equity returns. Better performance in ESG also corresponds with a reduction in downside risk, as evidenced, among other things, by lower credit default and higher credit ratings. ESG is about the environment, social causes and governance, as much as it is about shareholders’ returns and sustainability of the business. It plays out perfectly for everyone if well implemented; “Who cares wins“.
Since 2015, Transcorp Hotels has been a part of the work the Tony Elumelu Foundation (TEF) is doing in Africa. The non-profit organization was founded in 2010 by Africapitalist and Chairman of Transcorp Group Tony O. Elumelu, CFR. So far, the Foundation has empowered over 18,000 African entrepreneurs across 54 African countries through the TEF Entrepreneurship Programme, including Chibuike Goodnews, who was a beneficiary in 2015 has now built a pan-African marketing technology that employs over 20 people. Goodnews’ company DoChase in 2023 partnered with one of Transcorp Hotels’ businesses Aura by Transcorp Hotels, to drive awareness and downloads for the platform, achieving close to 2,000 downloads in three weeks and more than 1.4 million impressions. Goodnews is one of over 18,000 others whose growth and development have been buoyed by the grant they enjoyed from the TEF Entrepreneurship Programme. The impact transcends Nigeria, where Transcorp Hotels has maintained its leadership position in the hospitality industry. In Tunisia, Mohamed Dhaouafi is developing affordable 3D printed solar-powered bionic hands for amputees in Africa. In Zimbabwe, Msindazwe Ndhlovu recycles waste plastic and glass to bring affordable energy to Africa, doubling his revenue after the intervention from TEF.
Back in Nigeria, Princess Adeyinka Tekenah is improving the consumption and production of locally sourced coffee by bringing Fresh Brew Coffee to the cup of an average Nigerian. Through her company Happy Coffee, she is also working with hospitality brands to set up coffee experience centres. With $5000 seed grant in 2015, Adeyinka successfully designed 10 market fit coffee products, established 3 Coffee Experience Centers, served over 30,000 cups of coffee, pioneered a Coffee festival, all with a growing revenue of over $80,000.
Beyond its impact through the Tony Elumelu Foundation, Transcorp Hotels makes monthly food donation to the Daughters of Charity Hospital and trains women every year in its Business Empowerment Scheme.
Driven by the desire to tackle unemployment in the Community, the “Business Empowerment Programme for Women (BEPW)” is aimed at empowering women with basic sewing, business, accounting and management skills necessary to establish and manage their own businesses. At the end of each program, beneficiaries are provided with sewing machines to kick-start their entrepreneurial journey. In 2022, eight (8) women were empowered to start their own fashion businesses.
During the past year, Transcorp Hotels also supported Project Pink Blue, a non-governmental organisation that raises funds for cancer patients, as well as awareness about cancer, and to celebrate the World Autism Month, Transcorp Hilton Abuja provided a free solo art exhibition space for Kanye (a talented child artist living with autism). We also sustained our sponsorship of the Abuja Metropolitan Music Society (AMEMUSO), an NGO that provides a platform for Nigerians to express their musical talents.
As Africa’s leading hospitality brand, we have a vested interest in sustaining our environment. In 2022, we embarked on some environmentally friendly initiatives, including the Soap for Hope Project: A tripartite partnership between Transcorp Hilton Abuja, Diversey and ACE charity. Launched in 2016 to recover used soap bars, recycle them and donate them to local communities, the aim of this programme is to promote personal hygiene, prevent avoidable diseases and create awareness for recycling and repurposing of soap waste. Used soap are collected from the housekeeping team and recreational department, the collected soaps are then scraped, sanitized, flavoured and coloured and moulded into new exotic soap bars which are wrapped and distributed to pupils and students of primary/secondary schools and to indigenes of rural communities where soap is a luxury. Since its inception, the Soap for Hope project has distributed over 3,200 soaps to the beneficiaries of the program.
In 2022, we also embarked on Tree Planting Exercise in Abuja (Shape Community School and LEA School Gwarimpa), feeding into our sustainability goals to reduce ozone levels in urban areas.
Transcorp Hotels recycled 15,271kg of recyclable waste from the landfill into productive uses, and also donated a portion of waste collected at its property towards Chanja Datti’s Bottles for Books Initiative, helping the NGO to support two full time waste collectors and two out-of-school children.
We avoid the use of plastics as much as possible, using paper drinking straws at our outlets. In 2021, we used 183,850 paper straws and 218,663 in 2022. Consequently, we would have expelled 402,513 plastic straws to the environment in two years. These straws are not recyclable and thus end up in landfills and incinerators as well as litter our streets, parks and roadsides, clogging our gutters, rivers, lakes, streams, and polluting our environment where they may persist for more than 200 years. These are some of the initiatives Transcorp Hotels keeps driving to improve lives and transform Africa.
Transcorp Hotels keeps growth trajectory
Since recovering from the impact of the COVID-19 pandemic, Transcorp Hotels Plc has continued to grow impressively, breaking pre-pandemic records, as it expands its offering and continues to deliver value to its stakeholders.
The Company reported a profit before tax (PBT) of N4.5 billion, a 172 percent increase year-on-year, having ended 2021 with a PBT of N1.7 billion. Transcorp Hotels Plc also reported a 47 percent growth in revenue to N32 billion in 2022.
The Nigerian Exchange Group (NGX)-listed hospitality brand is reinforcing its position as a leader in the industry, winning 16 awards in 2022, including five World Travel Awards won by Transcorp Hilton Abuja and the most Outstanding hospitality brand of the year won by Transcorp Hotels Plc. The Company has continued to strengthen its business and invest for the future through strategic expansion. It is developing a world-class event centre at the Transcorp Hilton premises in Abuja. Another development, Transcorp Hilton Ikoyi, is expected to commence in Lagos soon. These are all important to the shareholders, as it has everything to do with growth and profitability, which voices against ESG claim should be the focus of every business. However, this is the effort, profit is the result, and the impact is what makes you want to do it again. So, for brands like Transcorp Hotels, you are only doing well if you’re doing good.
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