<jats:sec> <jats:title>Purpose</jats:title> <jats:p>This study investigates how charismatic leadership shapes pro-environmental behaviors and customer value co-creation in luxury hospitality settings. By integrating charismatic leadership theory, social identity theory, and service-dominant logic, it provides a triple-lens perspective on sustainability-driven leadership in the hotel sector.</jats:p> </jats:sec> <jats:sec> <jats:title>Design/methodology/approach</jats:title> <jats:p>A comprehensive multi-stakeholder methodology was employed, collecting data from 279 employees, 243 managers, and 411 customers across 46 five-star hotels. The hypothesized connections were brought to light through the use of structural equation modeling (SEM), which also included the moderating effect of green psychological climate (GPC) and the mediating effects of task significance and intrinsic quality.</jats:p> </jats:sec> <jats:sec> <jats:title>Findings</jats:title> <jats:p>Results demonstrate that charismatic leadership positively influences task significance, quality of life, and pro-environmental behaviors among hotel employees. Task significance enhances intrinsic quality, which subsequently improves both staff well-being and pro-environmental behaviors. The study further identifies customer value co-creation as a critical outcome of these relationships, underscoring the interconnectedness of employee, managerial, and customer engagement in sustainability initiatives. Importantly, GPC was found to significantly strengthen these associations, amplifying the impact of leadership on sustainable practices.</jats:p> </jats:sec> <jats:sec> <jats:title>Practical implications</jats:title> <jats:p>Luxury hotels ought to cultivate commanding leadership through special training centered on sustainability, incorporate green practices in the reward system, and create guest value together with the guests’ participation in eco-friendly activities. Tracking key performance indicators and tying manager bonuses to achieved green goals are additional measures that can cultivate the adoption of environmental-friendly practices and bring all parties involved in sustainable luxury hospitality to the same page.</jats:p> </jats:sec> <jats:sec> <jats:title>Originality/value</jats:title> <jats:p>This study applies a novel integrated model for the luxury hospitality context in emerging economies. It emphasises the interconnectedness of leadership, workforce and customer in the direction of sustainability at the same time as luxury standards are kept. The results offer practical guidance for both the hotel industry and the government decision-makers seeking to integrate leadership, well-being, and co-creation into sustainable hospitality strategies.</jats:p> </jats:sec>