Climate Change Data

Host Hotels & Resorts, L.P

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023, 2024)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:347,616 tCO2e/year
Scope 1 Emissions:101,616 tCO2e/year
Scope 2 Emissions:246,000 tCO2e/year
Scope 3 Emissions:88,049 tCO2e/year
Renewable Energy Share:0.4%
Total Energy Consumption:1,262,350 MWh/year
Water Consumption:9,994,000 m3/year
Waste Generated:36,490 tons/year (79% of portfolio)
Carbon Intensity:7.36 kg CO2e/sq ft

ESG Focus Areas

  • Environmental Stewardship
  • Social Responsibility
  • Governance

Environmental Achievements

  • 37% intensity reduction in greenhouse gas emissions
  • 14% intensity reduction in water consumption
  • 82% of major renovation projects with waste diversion
  • Issued first green bond in the lodging industry

Social Achievements

  • Launched a new holistic employee wellness program
  • Joined CEO Action on Diversity & Inclusion initiative
  • First lodging REIT to sign on to industry 5-Star Promise to advance worker safety and human rights
  • Supported 200+ charities in 2019

Governance Achievements

  • Internal price of carbon set at $100 per ton
  • Established a Corporate Responsibility Advisory Committee

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 55% reduction in greenhouse gas intensity per square foot
  • 25% reduction in energy intensity per square foot
  • 30% electricity use from renewable energy
  • 25% reduction in water consumption per occupied room
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impact on operations and employee well-being
  • Supply chain disruptions (implied)
Mitigation Strategies
  • Reduced expenses and strengthened liquidity
  • Offered increased flexibility and expanded benefits for employees
  • Partnered with organizations for COVID-19 relief efforts
  • Implemented contingency plans to reduce operating costs

Supply Chain Management

Supplier Audits: Supplier Excellence Survey launched in 2019; 52% of strategic suppliers responded.

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainable sourcing of construction materials
  • Partnership with sustainable suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Rising sea levels
  • Higher temperatures
Transition Risks
  • Changing customer behavior
  • Increased cost of raw materials
  • Increased stakeholder concern
Opportunities
  • Decentralized energy generation
  • More efficient buildings
  • Renewable energy and energy efficiency programs

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: Lloyd’s Register Quality Assurance, Inc. (LRQA)

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 4 (Quality Education)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)
  • Goal 8 (Decent Work and Economic Growth)

Alignment with UN SDGs is described in the report.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Dow Jones Sustainability World Index member
  • CDP Climate Change A List

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Environmental Stewardship
  • Social Responsibility
  • Governance

Environmental Achievements

  • Contracted with a third-party to provide further verification of our energy and water consumption data (since 2015)
  • Issued $750 million of green bonds

Social Achievements

  • Launched a formal diversity and inclusion initiative in 2020
  • CEO joined the CEO Action for Diversity & Inclusion initiative
  • Provided unconscious bias training to employees
  • Hotels donated medical supplies, food and toiletries to healthcare workers, employees, local food banks and nonprofits
  • Offered special rates to caregivers and donated meeting space to local schools and non-profits

Governance Achievements

  • Named to the Dow Jones Sustainability World Index (DJSI World)
  • Named to CDP's A List and Supplier Engagement Leaderboard

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic materially and adversely impacted business, financial condition, results of operations, liquidity and cash flows
  • Sharp decline in group, business and leisure travel
  • Negative public perceptions of travel and public gatherings
  • Increased operating costs from implementing enhanced cleaning protocols and other COVID-19 mitigation practices as well as employee severance and furlough costs
  • Reduced economic activity negatively impacting future lodging demand
Mitigation Strategies
  • Reopened 31 of 35 hotels that had suspended operations
  • Implemented portfolio-wide cost reductions (reducing staffing, shared services fees, suspending food and beverage operations, closing guestroom floors and meeting spaces)
  • Paid health benefits for furloughed hotel employees
  • Suspended contributions to hotels’ FF&E escrow accounts and suspended or deferred non-essential capital projects
  • Amended credit agreement governing revolving credit facility
  • Accessed full $1.5 billion under the revolver portion of the credit facility
  • Suspended regular quarterly common cash dividends and stock repurchases
  • Reduced corporate expenses

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • More frequent or severe storms, droughts, hurricanes and flooding
  • Rising sea levels causing damage to hotels
  • Prolonged variations in temperature or precipitation
Transition Risks
  • Increased cost of property insurance
  • Increased operating costs
  • Stricter energy efficiency standards

Reporting Standards

Frameworks Used: SASB

Awards & Recognition

  • Dow Jones Sustainability World Index (DJSI World)
  • CDP's A List and Supplier Engagement Leaderboard

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:30% of electricity use from renewable energy (2025 target)

ESG Focus Areas

  • Environmental Stewardship
  • Social Responsibility
  • Governance

Environmental Achievements

  • Named to the Dow Jones Sustainability World Index (DJSI World) for the third consecutive year and DJSI North America for the fifth consecutive year
  • Recognized by CDP for implementing current best practices to mitigate climate risks and manage environmental impacts, achieving a leadership-level score for the ninth consecutive year
  • Included among the world’s most sustainable companies in S&P Global’s Sustainability Yearbook and named one of America’s Most Responsible Companies by Newsweek

Social Achievements

  • First lodging REIT to issue social targets, including two diversity-related targets and one employee engagement target
  • Participated in the CEO Action for Diversity & Inclusion™ coalition, established a formal diversity and inclusion program, and launched a women’s employee resource group

Governance Achievements

  • Robust stockholder engagement, with 79% of outstanding shares contacted and 54% engaged with
  • Board composition with 25% women and 13% ethnically diverse nominees
  • Renamed Nominating and Corporate Governance Committee to “Nominating, Governance and Corporate Responsibility Committee,” and Compensation Policy Committee to “Culture and Compensation Committee” to reflect increasing roles in ESG

Climate Goals & Targets

Short-term Goals:
  • 55% reduction in greenhouse gas emissions per square foot by 2025 (SBTi verified)
  • 100% of employees trained on unconscious biases by 2025
  • 25% reduction in energy use per square foot by 2025
  • Include at least two women and two persons of color in each initial candidate pool for externally sourced executive level positions by 2025
  • Conduct at least two engagement surveys by 2025
  • 25% reduction in water consumption per occupied room by 2025

Environmental Challenges

  • COVID-19 pandemic continued to pose unique challenges for the lodging industry and the Company in 2021
Mitigation Strategies
  • Prioritized the health and safety of employees, guests and partners, while significantly reducing expenses and strengthening the balance sheet
  • Made progress on three key strategic objectives: redefining the hotel operating model, gaining market share at renovated hotels, and strategically allocating capital
  • Expanded benefits to support employees during the pandemic

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, SASB (now Value Reporting Foundation), UN Sustainable Development Goals

Certifications: LEED (7 certified hotels, 15 projects in pipeline)

Awards & Recognition

  • DJSI World & North America Listed
  • Top 10 Most Sustainable REITs 2021
  • Climate Change Leadership Level Prime Corporate Rating
  • Low ESG Risk Rating
  • “A” Rating
  • Top 25% Ranking on Corporate Governance
  • One of the World’s Most Sustainable Companies
  • Newsweek Industry Leader (Top 10%)
  • One of America’s Most Responsible Companies

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:285,322 tCO2e/year (Scope 1 & 2 combined)
Scope 1 Emissions:82,747 tCO2e/year
Scope 2 Emissions:220,702 tCO2e/year (location-based)
Scope 3 Emissions:90,689 tCO2e/year (Capital Goods, Business Air Travel, Employee Commuting, Upstream Leased Assets)
Renewable Energy Share:12%
Total Energy Consumption:1,108,644 MWh/year
Water Consumption:2,459,840 kGal/year
Waste Generated:25,064 Metric Tons/year (measured waste, 76% of portfolio)
Carbon Intensity:6.55 kg CO2e/sq ft in 2022

ESG Focus Areas

  • Environmental Stewardship
  • Social Responsibility
  • Governance

Environmental Achievements

  • Completed 620 sustainability projects representing $135 million in investments generating 15-20% average cash-on-cash returns (2018-2022)
  • 11 LEED®-certified properties, including three LEED Gold EBOM hotels as well as Host’s corporate headquarters; 22 projects in the pipeline
  • 12% of portfolio-wide electricity consumption from renewable sources through green power purchases in 2022
  • Achieved 11.1% reduction in emission intensity (per square foot) from 2019 baseline

Social Achievements

  • 92% of employees completed company-wide diversity training on unconscious bias and other important diversity topics
  • Continued investments in employee development, health and well-being and our Diversity, Equity, Inclusion and Belonging (DEIB) program
  • Founding donor of Nareit Foundation’s Dividends Through Diversity, Equity & Inclusion (DDEI) Giving Campaign
  • $500,000 pledge in support of the Arne M. Sorenson Hospitality Fund at the Marriott-Sorenson Center for Hospitality Leadership at Howard University

Governance Achievements

  • Board is now comprised of more than 30% women
  • ESG-focused investor engagement with investors representing approximately 75% of outstanding shares
  • Oversight of 2030 Environmental and Social Goals and Targets by the Nominating, Governance and Corporate Responsibility Committee

Climate Goals & Targets

Long-term Goals:
  • Aspire to net positive impact by 2050
Medium-term Goals:
  • 54% reduction of GHG emissions per square foot from a 2019 baseline by 2030
  • 50% of electricity use sourced from renewable sources by 2030
  • 25% reduction of water usage per occupied room in water-stressed areas from a 2019 baseline by 2030
  • 50% of waste by volume diverted from landfill from major renovation and redevelopment projects by 2030
  • 40% of consolidated hotels to achieve green building certification by 2030
  • 15% of direct capital expenditure supplier spend with diverse suppliers by 2030
  • 100% of direct suppliers trained in responsible sourcing and human rights policies by 2030
  • 25% of each candidate slate for all external positions to be diverse by 2030
  • 85% or more of employees to be highly engaged by 2030
  • 90% or more of employees to participate in charitable giving and/or volunteerism by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate change risks including extreme weather events, rising sea levels, and water stress
  • Transition risks including changing customer behavior, increased stakeholder concern, emerging regulations, and uncertainty in market signals
  • Maintaining biodiversity in surrounding environments
Mitigation Strategies
  • Investing in hurricane-resistant infrastructure and climate resilience measures
  • Implementing energy efficiency initiatives and increasing renewable energy consumption
  • Prioritizing water efficiency in water-stressed areas
  • Reducing waste generation and improving landfill diversion rates
  • Engaging with stakeholders and business partners to address ESG issues
  • Conducting asset-level climate risk assessments
  • Investing in business interruption insurance

Supply Chain Management

Supplier Audits: Full 3-year financial and corporate governance review of selected new strategic suppliers; periodic on-site assessments.

Responsible Procurement
  • Supplier Code of Conduct
  • Engagement with suppliers on ESG, Quality Management, and Design and Specification Control
  • Prioritizing sustainable, locally sourced materials
  • Working with EPA SmartWay® logistics providers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Rising sea levels
  • Water stress
  • Wildfire
Transition Risks
  • Changing customer behavior
  • Increased stakeholder concern
  • Emerging regulations
  • Uncertainty in market signals
Opportunities
  • Decentralized energy generation
  • More efficient and resilient buildings
  • Renewable energy and energy efficiency programs
  • Shift in consumer preferences
  • Low emission goods and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, CDP

Certifications: LEED, ISO 14001

Third-party Assurance: LRQA

UN Sustainable Development Goals

  • Not disclosed

Host prioritizes SDGs relevant to its business and where it can drive measurable results.

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Dow Jones Sustainability World Index (DJSI World) for the fourth consecutive year
  • DJSI North America for the sixth consecutive year
  • CDP Climate Change Leadership Level Industry Leader
  • S&P’s Global Sustainability Yearbook
  • Newsweek’s America’s Most Responsible Companies

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:256,449 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:84,826 tCO2e/year
Scope 2 Emissions:171,622 tCO2e/year (market-based)
Scope 3 Emissions:13,364 tCO2e/year
Renewable Energy Share:18.2% of total energy use
Total Energy Consumption:1,122,677 MWh/year
Water Consumption:2,699,945 kGal/year
Waste Generated:29,569 tons/year (82% of portfolio)
Carbon Intensity:5.86 kg CO2e per square foot in 2023

ESG Focus Areas

  • Decarbonization
  • Resilience
  • Conservation
  • Diversity, Equity, Inclusion, and Belonging
  • Community Impact

Environmental Achievements

  • 20.4% reduction in greenhouse gas emissions per square foot from a 2019 baseline
  • 18.2% of electricity consumption from renewable energy sources
  • 76% landfill diversion rate across active major renovation and redevelopment projects
  • 18 properties with LEED® certification, with 18 additional projects in the pipeline

Social Achievements

  • 98% of employees trained on diversity topics
  • 88% of employees highly engaged in most recent survey
  • >25% diversity within candidate slates in 2023
  • $250K donated to Maui wildfire relief and recovery

Governance Achievements

  • Integration of ESG into enterprise risk management
  • Annual training on Code of Business Conduct and Ethics for all employees
  • Third-party assurance of ESG data

Climate Goals & Targets

Long-term Goals:
  • Net positive company by 2050
Medium-term Goals:
  • 54% reduction of greenhouse gas emissions per square foot from a 2019 baseline by 2030
  • 50% of electricity use will be sourced from renewable sources by 2030
  • 25% reduction of water usage per occupied room in water-stressed areas from a 2019 baseline by 2030
  • 100% of major renovation projects divert at least 50% of waste by volume from landfill across at least three waste streams by 2030
  • 40% of consolidated hotels will achieve LEED® green building certification by 2030
  • 15% of annual direct capital expenditure supplier spend will be with diverse suppliers by 2030
  • 85% or more of employees are highly engaged each year by 2030
  • 25% of each candidate slate for all externally sourced positions are diverse on an annual basis by 2030
  • 90% or more of employees participate in charitable giving and/or volunteerism each year by 2030
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate-related risks such as hurricanes, floods, wildfires, and sea-level rise
  • Achieving ambitious water reduction targets in water-stressed areas
  • Scaling on-site renewable energy generation across the portfolio
Mitigation Strategies
  • Investments in hurricane-resistant infrastructure and other resiliency measures
  • Prioritization of water efficiency projects in water-stressed areas
  • Combination of on-site solar PV and off-site renewable energy purchases

Supply Chain Management

Supplier Audits: Annual financial and corporate governance review of selected new strategic suppliers, periodic on-site risk assessments.

Responsible Procurement
  • Supplier Code of Conduct
  • Partnership with diverse and sustainable suppliers
  • Use of EPA SmartWay® logistics providers

Climate-Related Risks & Opportunities

Physical Risks
  • Hurricanes
  • Floods
  • Wildfires
  • Rising sea levels
Transition Risks
  • Changing consumer behavior
  • Building efficiency regulations
  • Access to capital
Opportunities
  • Investments in renewable energy and energy efficiency
  • Development of climate-resilient assets

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Third-party Assurance: AET Group Inc.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • DJSI World and North America Listed
  • Climate Change Leadership Level Industry Leader (Top 10%)
  • Prime Corporate Rating
  • Low ESG Risk Rating
  • “A” Rating

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Energy Conservation
  • Water Conservation
  • Biodiversity
  • Waste Reduction
  • Indoor Air Quality
  • Health and Wellbeing
  • Sustainable Procurement
  • Climate Resilience
  • Supplier Engagement

Environmental Achievements

  • 2020 GHG reduction target verified by SBTi
  • 2025 GHG target verified by SBTi as consistent with the 1.5-degree Celsius ambition level
  • Set a 2030 emissions reduction target aligned with a net-zero operational emissions goal by 2040
  • ISO 14001 certified Environmental Management System (EMS)

Social Achievements

  • Engages with third-party hotel managers on building health and safety best practices aligned with ISO 45001 and OHSAS 18001
  • Invests in enhancements to physical activity spaces at properties
  • Utilizes Safety Management for Managed Construction Project Policy and Renovation Checklists for construction contractors

Governance Achievements

  • Board-level oversight of EMS ensures adequate resources and training
  • Formal data management systems and processes, including both internal and third-party assurance of environmental data, have been implemented

Climate Goals & Targets

Long-term Goals:
  • Net zero operational emissions by 2040
Medium-term Goals:
  • 2030 water reduction goal prioritized at hotels with high water-related risks
  • 2030 emissions reduction target

Environmental Challenges

  • As a U.S. public lodging REIT, Host is not permitted to directly manage the operations of hotels within its portfolio.
  • Managing environmental impacts across a portfolio of hotels operated by third-party managers
  • Potential physical and transitional climate risks at the portfolio and asset level
Mitigation Strategies
  • Collaborates with hotel managers to identify and implement environmental initiatives
  • Utilizes budget approval rights and control over certain investing and financing decisions to influence hotel operations
  • Identifies and mitigates potential physical and transitional climate risks through scenario analysis, third-party property risk control surveys, and investments in resiliency measures

Supply Chain Management

Responsible Procurement
  • Procuring materials from sustainable sources or containing recycled content
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Opportunities
  • Energy efficiency improvements