Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable development

Environmental Achievements

• Reduced water use by 5% in owned, leased and managed hotels between 2011 and 2012
• 89% of hotels using eco-labeled products by the end of 2012 (compared to 68% in 2011)
• 87% of hotels offering nutritionally balanced dishes by the end of 2012 (compared to 62% in 2011)
• 39% of hotels participating in the Plant for the Planet reforestation project by the end of 2012
• 75% reduction in energy use with LED bulbs during test phase
• 83% of hotels banning endangered seafood from restaurant menus

Social Achievements

• Launched Women at Accor Generation (WAAG) network to increase the number of women in management positions
• More than 450,000 days of training provided in 2012 (or 3.4 days per employee)
• Accor appeared for the first time in the Great Place to Work® Institute’s list of the world’s 25 best multinational workplaces
• Accor became a member of the International Labour Organization’s Global Business and Disability Network in June 2012
• Manual describing reporting procedures for suspected cases of child sexual tourism finalized and distributed

Governance Achievements

• Accor is included in four leading socially responsible investment indexes: the Dow Jones Sustainability Indexes, FTSE4Good, ASPI Eurozone and the Ethibel Sustainability Index
• More than 60 supplier audits performed by outside organizations in 2012

Climate Goals & Targets

Environmental Challenges

• Slow growth in Europe, even negative in Southern countries
• Structural increase in operating costs in Europe
• Recession hurting hotels in Southern Europe

Mitigation Strategies

• €100 million cost savings plan deployed over the next two years to improve competitiveness in Europe
• Active property asset management program, including the sale of Motel 6, to improve financial flexibility and focus on core business

Supply Chain Management

Supplier Audits: More than 60/year

Responsible Procurement

• Procurement Charter 21 clauses included in nearly 2,000 supplier contracts
• Sustainable development criteria included in 40 product categories
• Banning endangered seafood

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-designed bedding
• Eco-labeled cleaning products

Awards & Recognition

• Great Place to Work® award

Environmental Metrics

ESG Focus Areas

• Empowering communities
• Business integrity
• Caring for people
• Reducing the environmental footprint
• Promoting sustainable food

Environmental Achievements

• 12.9% reduction in greenhouse gas emissions between 2015 and 2019
• 6.4% reduction in energy use between 2015 and 2019
• 6.1% reduction in water consumption between 2015 and 2018

Social Achievements

• 77% employee engagement rate
• 82% of hotels engaged in at least one community or outreach initiative
• Launched the “Be Limitless” employer brand

Governance Achievements

• Rollout of the E&RSE risk control process for suppliers/owners (61%)
• Implementation of a compliance program

Climate Goals & Targets

Environmental Challenges

• Malicious attack on the integrity of digital personal data
• Unfavorable change in the geopolitical, health or economic environment
• Non-compliance with standards, laws and regulations
• Integration of acquisitions
• Unavailability of digital operating data

Mitigation Strategies

• Risk maps, specific prevention and protection programs
• Crisis management and communication system
• Business continuity plans
• Risk transfer policy
• Compliance program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• RobecoSAM Silver Class Sustainability Award 2018

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Business Ethics
• Sustainable Food
• Employee Well-being

Environmental Achievements

• Defined a carbon trajectory compatible with the Paris Agreement's 1.5°C target, audited by the Science Based Targets initiative.
• Ongoing efforts to eliminate single-use plastics by 2022.
• Launched the ALLSAFE label in partnership with Bureau Veritas to enhance hotel sanitation standards.

Social Achievements

• Launched the ALL Heartist solidarity fund to support employees and partners affected by the COVID-19 crisis.
• Provided accommodation for medical personnel and vulnerable individuals in France.
• Continued efforts in diversity and inclusion programs (RiiSE, HeForShe).

Governance Achievements

• Completed the sale of Orbis, streamlining the asset-light model.
• Implemented a plan to generate €200 million in recurring cost savings.
• Strengthened financial position with a new €560 million revolving credit facility and €500 million in Océane bonds.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and resulting travel restrictions severely impacted revenue and operations.
• Geopolitical risks, economic slowdowns, and potential terrorist attacks.
• Malicious attacks on digital personal data.
• Non-compliance with evolving standards, laws, and regulations.
• Integration challenges related to acquisitions.
• Unavailability of digital operating data.

Mitigation Strategies

• Implemented cost-cutting measures and strengthened financial position.
• Developed business continuity plans and crisis management systems.
• Enhanced IT security measures and data protection policies.
• Established legislative and regulatory watch systems.
• Developed specific integration methodologies and reporting.
• Implemented redundancy and back-up systems for digital data.

Supply Chain Management

Supplier Audits: 336 audits on at-risk production sites (2020)

Responsible Procurement

• Procurement 21 Charter

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD

Awards & Recognition

• #1 CDP Carbon
• #1 ISS-Oekom
• #2 Sustainalytics
• #2 MSCI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Tourism
• Environmental Sustainability
• Community Engagement
• Diversity and Inclusivity

Environmental Achievements

• Reduced global energy consumption by 31% between 2015 and 2020 (partly due to Covid-19)
• 174 hotels received environmental certification or were in the process of certification by the end of 2021
• All new hotels comply with Accor’s technical standards incorporating environmental performance criteria

Social Achievements

• Created the “ALL Heartist Fund” allocating €70 million to solidarity initiatives
• Deployed the ALLSAFE health protocol in hotels for employees and guests

Governance Achievements

• Established a Board-level Appointments, Compensation & CSR Committee overseeing climate-related issues
• Linked up to 15% of managers' and employees' bonuses to sustainable development objectives, including carbon emission reduction

Climate Goals & Targets

Environmental Challenges

• Changing customer travel patterns for Business and Leisure
• Mandates on and regulation of existing products and services
• Extreme precipitation and flood risk
• Carbon tax increasing utilities costs
• Increase in heatwaves
• Rising sea levels
• Negative impact on revenues due to decline in business travelers
• Changes in consumer preferences and behaviour
• Stricter carbon criteria for access to the financial market

Mitigation Strategies

• Implementation of climate strategy and green energy procurement
• Prioritizing environmental certification projects and building less energy-consuming buildings
• Strong strategic shift towards Lifestyle to capture more local clientele
• Use of tools and benchmarks to identify actions to reduce energy consumption
• Development of Accor’s responsible actor reputation
• Global environmental strategy including climate change
• Answering many questionnaires and being rated by several non-financial agencies
• Developing Accor’s responsible actor reputation
• Investing in energy technologies partnerships to improve energy efficiency

Supply Chain Management

Supplier Audits: 100% of nominated suppliers signed Procurement Charter 21; 97% of high-risk purchasing categories evaluated by EcoVadis

Responsible Procurement

• Procurement Charter 21
• EcoVadis evaluations
• SMETA audits

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme heatwaves

Transition Risks

• Decline in business travel
• Changes in leisure travel patterns
• Carbon tax

Opportunities

• Competitive advantage from low-carbon emission criteria
• Improved room carbon ratings
• Reduced carbon costs

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD

Third-party Assurance: EY (Limited assurance)

Sustainable Products & Innovation

• Greet hotel brand

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Biodiversity
• Gender Equality
• Employee Well-being
• Responsible Tourism
• Human Rights

Environmental Achievements

• Eliminated single-use plastic in the guest experience in more than 80% of hotels.
• 97% of corporate employees received sustainability training.

Social Achievements

• Launched the ALL Heartist Fund (€70m) to support employees affected by the pandemic.
• Partnership with SHe Travel Club to improve travel experience for women.
• Launched a platform with Fondation des Femmes to provide emergency shelter for women and children victims of abuse.

Governance Achievements

• ESG criteria play an important role in the variable remuneration of Accor’s managers and executives (up to 15% for key positions).
• Implemented a governance that complies with market recommendations aimed at ensuring compliance with the fundamental principles of corporate governance.

Climate Goals & Targets

Environmental Challenges

• Climate risk
• Malicious harm to the integrity of digital personal data
• Talent attraction and retention risk
• Deterioration of the economic, geopolitical or health environment
• Unavailability of digital operating data
• Non-compliance with standards, laws and regulations

Mitigation Strategies

• Risk maps and specific prevention and protection programs.
• Group Risk Committee meets quarterly and reports to the Executive Committee.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Astore Procurement service

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SBTi

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Two awards from Hospitality ON for eliminating single-use plastic and sustainability training.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Water Resource Management
• Sustainable Food
• Waste Reduction
• Circular Economy
• Human Rights
• Diversity, Equity & Inclusion
• Talent Attraction & Retention
• Business Ethics
• Compliance
• Data Protection

Environmental Achievements

• Eliminated 57 single-use plastic products in 79% of hotels.
• 60% of hotels using a carbon emissions measurement tool.
• 90% of Top 300 hotels reported a food waste baseline value.
• Reduced food waste by 60% by 2030 (target).

Social Achievements

• Launched Reveal Talent program to promote social, ethnic and cultural diversity.
• 42% women in management committees worldwide.
• 8.7/10 employee engagement score at hotels.
• 139,418 new hires in 2023.

Governance Achievements

• Launched Responsible Procurement Charter, with 100% of nominated suppliers committed to respecting it.
• Published Human Rights Policy.
• Co-founded Hospitality Alliance for Responsible Procurement (HARP).

Climate Goals & Targets

Environmental Challenges

• Climate risks (physical impacts, transition risks).
• Malicious attacks on digital personal data.
• Talent attraction and retention.
• Unfavorable geopolitical, health, or economic environment.
• Unavailability of digital operating data.
• Non-compliance with standards, laws, and regulations.

Mitigation Strategies

• Science-based targets for carbon neutrality by 2050, validated by SBTi.
• Investment in cybersecurity measures and cyber risk insurance.
• Initiatives to attract and retain talent (communication campaigns, retention schemes, training).
• Geographical diversification of business footprint.
• Redundant infrastructure and back-up systems for digital data.
• Legislative and regulatory watch systems, compliance programs, and ethics training.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Procurement Charter.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme heatwaves

Transition Risks

• New environmental regulations
• Decline in business travel

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: TCFD, SBTi, GRI, Global Sustainable Tourism Council (GSTC)

Certifications: Green Key, Green Globe

Third-party Assurance: One of the Statutory Auditors

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 15 (Life on land)

Initiatives contribute to these goals through various actions described in the report.

Sustainable Products & Innovation

• Greet brand (circular economy model).

Awards & Recognition

• CDP 'A' rating for Climate Change
• Silver 'Good Economy' Grand Prix
• Succeeding with Responsible Marketing ranking