ESG breadth as a risk-reducing signal: the moderating role of ESG committees in the hospitality industry

The hospitality industry faces rising financial volatility from operating costs, tightening credit markets, and stakeholder expectations for responsible conduct. This study examines whether firms that broadly distribute ESG activities across environmental, social, and governance domains receive stronger credit ratings, and whether an ESG committee strengthens this relationship. Using publicly traded U.S. hospitality firms, this study finds that firms with broader ESG portfolios receive higher credit ratings even after controlling for the overall ESG score. Moreover, the presence of ESG committee positively moderates this relationship, indicating that internal governance structures play a crucial role in ensuring the credibility, coordination, and strategic alignment of ESG initiatives. This study contributes to the conceptualization of ESG by highlighting its dispersion and broadly distributed engagement in multiple domains. Also, this study underscores the importance of corporate governance as an important tool for improving financial resilience of hospitality firms.