Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Management
• Employee Well-being
• Community Engagement
• Sustainable Sourcing
• Responsible Procurement

Environmental Achievements

• Reduced CO2 emission per floor area by 27% compared to 2006-2008 baseline
• Reduced absolute carbon emissions by 9% despite business growth
• Conserved 9,422 m3 of water
• Recycled 42% of waste
• 92% of wood used in The Peninsula Chicago renovation from sustainably managed forests
• Avoided 35,800 GJ of energy and HK$7.8 million in energy spend through energy-saving efforts

Social Achievements

• 13,000 hours of community service by employees
• Reduced lost days due to work injuries by 24%
• Launched Peninsula Wellness program
• 80% of paper purchases from certified sustainable sources
• Donated partially-used soap bars and bathroom amenities

Governance Achievements

• Established a strong framework to track and manage ESG risks
• Implemented anti-corruption training for 20.6% of workforce
• Implemented equal opportunities training for 20.8% of workforce
• Completed customer data privacy training for 89% of employees handling guest information

Climate Goals & Targets

Environmental Challenges

• Plateau in energy and water efficiency improvements
• High staff turnover, especially among employees under 30
• Difficulty in sourcing sustainable products
• Climate change impacts (extreme weather, water availability)
• Terrorism threats impacting tourism

Mitigation Strategies

• Investing in a sustainability management and reporting system
• Developing new HR strategies to retain young employees
• Conducting research on climate risks and setting science-based targets
• Improving security measures and employee training
• Developing local Vision 2020 plans and providing support to operations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• HSH Supply Chain Code of Conduct
• Sustainable procurement guide
• Focus on local and sustainable sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Supply chain disruptions

Transition Risks

• Increased energy costs
• Regulatory changes
• Evolving customer expectations

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G4, Hong Kong Stock Exchange’s ESG Guide

Certifications: EarthCheck Silver (multiple hotels)

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Naturally Peninsula cuisine
• LED lighting
• Sustainable materials in The Peninsula Chicago renovation

Awards & Recognition

• Young Hoteliers Summit - Best in career advancement opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Launched Vision 2030 with commitments to address single-use plastics, food waste, sustainable agriculture and seafood, climate change adaptation, and more.
• Commitment to sourcing cage-free eggs by 2025.

Social Achievements

• Implementation of WorkPlace2025 and Work Improvement Teams to enhance employee engagement and sustainability initiatives.
• Community investment focusing on youth development, elderly care, and uplifting marginalized communities.
• Employee engagement activities such as emergency food packing and pandemic relief fundraisers.

Governance Achievements

• Board oversight of sustainability issues through regular engagement and updates from the Group Corporate Responsibility Committee (GCRC).
• Establishment of a Group Corporate Responsibility Committee (GCRC) responsible for implementing the sustainability approach.
• Code of Conduct training for all employees covering anti-bribery, fair competition, equal opportunity, customer data privacy, anti-discrimination, and environmental responsibility.

Climate Goals & Targets

Environmental Challenges

• Climate change and global temperature rise leading to extreme weather events, business operation disruptions, supply chain impacts, increased operating costs, and stricter regulations.
• Potential increase in insurance costs and asset devaluation due to climate risks.
• Multiplier effect of climate change on socioeconomic issues such as unemployment, poverty, and social inequality.

Mitigation Strategies

• Continuous monitoring and deepening understanding of climate risks.
• Embedding preventative measures to address climate risks in all operations.
• Implementing adaptation measures to improve resilience.
• Regular updates to the Group Risk Committee and Board on evolving environmental and social risks.
• Development of long-term adaptation strategies.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct aligned with UN Global Compact, UN Universal Declaration of Human Rights, ILO Conventions, OECD Guidelines, addressing anti-bribery, data privacy, human rights, modern slavery, and plastics use.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Stricter regulations

Reporting Standards

Frameworks Used: Hong Kong Stock Exchange’s Environmental, Social and Governance Reporting Guidelines, Global Reporting Initiative Sustainability Reporting Standard, International Integrated Reporting Council, Sustainability Accounting Standards Board, Task Force on Climate-related Financial Disclosures (TCFD), EarthCheck

Sustainable Products & Innovation

• Naturally Peninsula cuisine

Environmental Metrics

ESG Focus Areas

• Diminishing natural resources (energy, water, food)
• Climate change crisis
• Growing social instabilities and inequalities

Environmental Achievements

• Reduced carbon emissions by 36% since 2010 baseline
• Reduced carbon intensity by 43% since 2010 baseline
• Achieved 52.7% waste diversion rate (increase of 4.4 percentage points from 2021)
• 93% of paper, 58% of tea, 94% of coffee, 83% of chocolate sourced from sustainable and responsible sources
• 50% of eggs sourced from cage-free sources
• Secured a contract for 100% renewable energy for The Peninsula London
• Piloted first on-site solar farm at Quail Lodge & Golf Club
• Implemented water-efficient fixtures and low-temperature laundry washing in multiple hotels
• Wastewater treatment facilities in Bangkok, Tokyo, and Ho Chi Minh City
• Rainwater harvesting system for irrigation at The Repulse Bay

Social Achievements

• Launched Life Lived Best wellness initiative for guests
• Launched Naturally Peninsula plant-based cuisine
• Maintained employee turnover rate at 23.8%
• Launched WorkPlace 2025 initiative to modernize the workplace
• Launched Inclusive Workplace Strategy
• 43% of management positions and 41% of total workforce are female
• HK$3.65 million monetary and in-kind charitable contribution
• More than 7,100 volunteering hours

Governance Achievements

• Developed Sustainable Luxury Vision 2030
• Established Group Corporate Responsibility Committee (GCRC)
• Implemented revised HSH Core Principles Framework
• Secured HK$10.5 billion in sustainability-linked and green loans

Climate Goals & Targets

Environmental Challenges

• Pandemic-related operational changes impacting sustainability activities
• Supply chain disruptions
• Labour shortages
• Inflation
• Geopolitical tensions
• Difficulties in sourcing sustainable laminated or mixed-material paper products
• Challenges in transitioning away from bottled water
• Challenges in finding cost-effective alternatives for single-use plastics in food safety and hygiene
• Nascent cage-free egg market in some regions
• Difficulties in improving traceability and sourcing sustainable seafood
• High dry waste sent to landfill or incineration
• Increased energy costs in the US and Europe

Mitigation Strategies

• Closely monitoring sustainability performance
• Implementing group and property-level initiatives
• Conducting feasibility studies for renewable energy projects
• Exploring alternatives for single-use plastics
• Working with Humane Society International (HSI) to develop a cage-free egg transition roadmap
• Engaging with local waste processors, recyclers, and up-cyclers
• Collaborating with suppliers to improve traceability and sourcing practices
• Implementing engineering solutions to optimize operational performance
• Obtaining green financing to fund sustainability projects

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Group-wide ban on shark fin and critically endangered species
• Risk assessments on seafood products
• Commitment to source all shell and liquid eggs from cage-free sources by 2025
• Annual review of Modern Slavery Statement and Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Temperature extremes
• Coastal and fluvial flooding
• Drought
• Wildfire
• Hurricanes and cyclones
• Water stress

Transition Risks

• Carbon pricing
• Litigation and regulation compliance
• Technology and innovation
• Reputational risks

Opportunities

• Improvement of resource efficiency
• Transition towards low-emission energy sources
• Reduced carbon taxation
• Innovations in products and services
• Development of adaptive capacity

Reporting Standards

Frameworks Used: HKEX ESG Guide, GRI Standards, TCFD recommendations, SASB Standards

Certifications: EarthCheck (Hong Kong, Tokyo, Shanghai, Chicago, New York, Paris)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New bathroom amenities with sustainable packaging
• Naturally Peninsula plant-based cuisine

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Water efficiency
• Waste reduction
• Employee well-being
• Community investment

Environmental Achievements

• Reduced group carbon intensity by 41% compared to 2010 baseline
• Reduced group energy intensity by 20% compared to 2010 baseline
• Decreased water intensity (hotels) by 5.7% to 1,315 liters per guest night
• Diverted 53.5% of waste from landfill and incineration
• The Peninsula London and The Peninsula Istanbul designed to achieve BREEAM Excellent Level
• 10 of The Peninsula Hotels on track to achieve EarthCheck Certification

Social Achievements

• Total community contribution of HK$9.7 million and more than 10,100 volunteering hours
• HK$37.9 million raised through “Hope for Türkiye” fundraising campaign
• Improved employee turnover rate to 21.9%
• Launched MyHSH Hub, a new employee portal
• Highest employee participation rate (92%) in global employee experience survey with 78% engagement score

Governance Achievements

• Appointment of Mr. Diego González Morales as Non-Executive Director
• Appointment of Ms. Christobelle Liao as Executive Director and Chief Corporate and Governance Officer
• Appointment of Mr. Keith Robertson as Executive Director and Chief Financial Officer
• Updated HSH Employee Handbook and HSH Employee Guide
• Revamped HSH Finance Policies and Procedures
• Updated Policy for Engagement of the External Auditor for Non-Assurance Services
• Rolled out mandatory compliance training programs

Climate Goals & Targets

Environmental Challenges

• Labour shortages in the hospitality industry
• Inflation and energy costs
• Geopolitical uncertainties
• Cybersecurity threats
• Climate change risks (rising sea levels, coastal flood risks)
• Slow recovery of international leisure visitors to Hong Kong
• Hyperinflationary environment in Türkiye
• Devastating earthquake in Türkiye
• Escalation of military conflict in the Middle East

Mitigation Strategies

• Competitive compensation and benefits packages
• Flexible work arrangements
• Talent development programs
• Employee well-being programs
• Climate risk assessments and mitigation plans
• Sustainable building design
• Renewable energy adoption
• Strategies to manage fluctuating costs in Türkiye
• Global fundraising campaign (“Hope for Türkiye”)
• Strengthened cybersecurity controls
• Updated data privacy and security policy

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Sustainable sourcing of key products (paper, cleaning products, tea, coffee, chocolate)
• Local sourcing of perishable goods

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Tropical typhoons
• Deterioration of air quality due to wildfires
• Sea level rising
• Drought
• Temperature rise

Transition Risks

• Disruption of business operations and supply chains
• Reduced demand for products and services
• Surges in operating costs and capital expenditure
• Stringent regulatory environment

Reporting Standards

Frameworks Used: International Integrated Reporting Framework, GRI Standards, TCFD recommendations, SASB, ISSB’s IFRS S2 Climate-related Disclosures

Certifications: EarthCheck, BREEAM

Third-party Assurance: KPMG (limited assurance on selected information in CRS Report)

Sustainable Products & Innovation

• Guestroom amenities with 99% petroleum plastic-free materials
• PenFare At Home takeaway packaging
• Naturally Peninsula plant-based menu

Awards & Recognition

• Numerous awards for hotels and reports (see pages 143-146)