Summit Hotel Properties, Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:68,185 tCO2e/year
Scope 1 Emissions:17,811 tCO2e/year
Scope 2 Emissions:50,375 tCO2e/year
Renewable Energy Share:6%
Total Energy Consumption:230,417 MWh/year
Water Consumption:475,903 kGal/year
Carbon Intensity:0.0061 MTCO2e/square foot
ESG Focus Areas
- Environmental Stewardship
- Social Responsibility
- Governance & Resilience
Environmental Achievements
- Reduced emissions by 15% from 2019 baseline
- Reduced energy consumption by 7% from 2019 baseline
- Increased renewable energy share to 6% of total electricity usage
- Expanded electric vehicle charging infrastructure by 15%
- Increased ENERGY STAR® certified properties by 60%
- Undertook water reduction actions, including installing smart irrigation systems
- Completed portfolio-wide transition to bulk shower amenities
Social Achievements
- Increased corporate employee workforce diversity from 48% to 56% (underrepresented groups)
- Contributed over $140,000 to community organizations
- Volunteered over 280 service hours to community partners
- Established a Hotel Training Day Program for employees
- Implemented an Employee Stay Program
Governance Achievements
- Increased diversity of Independent Board Members from underrepresented groups from 29% to 43%
- A component of executive compensation is based on the progress of our ESG program and achievement of our ESG goals
Climate Goals & Targets
Medium-term Goals:
- Reduce water intensity per occupied room by 10% from 2019 baseline by year-end 2030
Short-term Goals:
- Reduce GHG emissions intensity per square foot by 30% from 2019 baseline by year-end 2025
- Increase properties with guestroom automation systems by 35% over the prior year
- Increase number of green certified lodging properties by 10% over 2022
- Increase properties with electric vehicle supply equipment by 25% over the prior year
- Provide employee safety devices to all associates of our lodging properties by the end of 2023
Environmental Challenges
- Evolving portfolio requiring intensity reduction targets rather than absolute targets
- Water risk in certain properties
Mitigation Strategies
- Set intensity reduction targets for GHG emissions and water usage
- Completed portfolio-wide water risk assessment to prioritize water efficiency projects
- Installed smart-irrigation management systems
- Implemented changes to guest services to reduce water consumption
Supply Chain Management
Responsible Procurement
- Supplier & Vendor Code of Conduct modeled on ILO standards
Climate-Related Risks & Opportunities
Physical Risks
- Earthquakes
- Floods
- Hurricanes
- Windstorms
- Fires
- Extreme temperatures
- Drought
Opportunities
- Investments in clean energy
- Improved energy efficiency
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ENERGY STAR®
Sustainable Products & Innovation
- Energy management thermostats
- Smart irrigation management systems
- Keyless entry systems
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:62,783 tCO2e/year
Scope 1 Emissions:17,927 tCO2e/year
Scope 2 Emissions:44,857 tCO2e/year
Renewable Energy Share:12% of total electric usage
Total Energy Consumption:227,745 MWh/year
Water Consumption:478,237 kGal/year
Carbon Intensity:0.0058 MTCO2e/sq ft (2023)
ESG Focus Areas
- Environmental Stewardship
- Social Responsibility
- Governance & Resilience
Environmental Achievements
- Achieved a 26% market-based intensity reduction in greenhouse gas emissions from the 2019 baseline.
- Contracted for approximately 15,000 Green Renewable Energy Credits (RECs), an 88% increase over 2022.
- Increased the number of properties with electric vehicle charging equipment from 23% in 2022 to 30% in 2023 (a 30% increase).
- Increased the number of properties with smart guestroom automation systems by 60% from 2022.
Social Achievements
- Contributed over $840,000 and volunteered over 1,500 service hours to community organizations.
- Hosted the first annual Holistic Health & Wellness week.
- Completed biophilic and inclusive design upgrades to corporate offices, including a wellness room.
- Achieved a positive response of over 80% from employees regarding positive work culture and effective leadership.
- Over 80% of promotions in 2023 were earned by employees from underrepresented groups.
- Provided personal safety devices to all properties in support of the AHLA’s 5-Star Promise.
- Established a Milestone Anniversary Program to reward tenured employees.
- Joined the AHLA Foundation No Room for Trafficking (NRFT) Advisory Council and made a 5-year, $125,000 commitment to the NRFT Survivor Fund.
Governance Achievements
- A component of executive compensation is based on the progress of the ESG program and achievement of ESG goals.
- Further enhanced policies to meet new SEC guidelines in 2023.
- Continued compliance with all ethics and corporate governance requirements in 2023.
Climate Goals & Targets
Medium-term Goals:
- Meet 30% GHG reduction target by end of 2025.
Short-term Goals:
- Increase properties with energy management systems from 40% to 45% in 2024.
- Install EVSE at an additional five hotels in 2024 (15% increase over 2023).
- Increase properties with smart irrigation systems by 25% over 2023.
- Increase green certified lodging properties by 15% over 2023.
- Develop a standard operating procedure for recycling and upcycling waste during renovations.
Environmental Challenges
- Approximately 30% of properties are located in areas with high or extremely high baseline water stress.
- Potential for climate-related disasters impacting properties (earthquakes, hurricanes, windstorms, floods, fires, extreme temperatures, and drought).
Mitigation Strategies
- Prioritize water efficiency projects at properties in water-stressed areas.
- Invested in structural enhancements to fortify high-risk properties.
- Increased resiliency by investing in standby generators and ensuring proper maintenance of critical equipment.
- Engaged a third-party to evaluate installation of additional on-site energy storage systems.
- Actively assess vulnerability of assets to climate risk and maintain hazard insurance.
Supply Chain Management
Responsible Procurement
- Supplier & Vendor Code of Conduct (modeled on ILO standards),
- Integration of Common Materials Framework (CMF) in 2024
- Partnership with Procure Impact to promote supplier diversity
Climate-Related Risks & Opportunities
Physical Risks
- Earthquakes
- Hurricanes
- Windstorms
- Floods
- Fires
- Extreme temperatures
- Drought
Opportunities
- Investments in clean energy and energy efficiency
Reporting Standards
Frameworks Used: GRI, TCFD
Certifications: ENERGY STAR®