Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Diverted over 9,400 tonnes of non-hazardous waste from landfill (22% diversion rate)
• Donated over 700 tonnes of food to third parties
• Upcycled over 4,300 tonnes of food waste
• Achieved a 5.6% reduction in GHG emissions intensity compared with 2015 levels
• 15 hotels received LEED certification

Social Achievements

• Implemented Embrace and Embrace++ programs contributing over USD $1.6 million to an estimated 49,000 beneficiaries
• Employed 652 PWDs (1.8% of workforce)
• Over 55,000 volunteers dedicated over 82,800 volunteer hours
• Guest satisfaction rating of 62% (increase of 2.1% from 2016)

Governance Achievements

• Included in the Dow Jones Sustainability Index for the sixth consecutive year
• Complied with all "Comply or Explain" provisions in accordance with Hong Kong Exchange Main Board Listing Rule 13.91 and ESG Reporting Guide
• Zero workplace fatalities

Climate Goals & Targets

Environmental Challenges

• Food waste (close to 60% of total non-hazardous waste)
• Minor increase of 0.3% in GHG emissions intensity compared to 2016 due to revision of grid emission factors
• Increase in average energy intensity (6.1%) due to significant number of hotel openings

Mitigation Strategies

• Implementing three-step approach to food waste reduction (planning, education, review)
• Hotels expected to meet intensity reduction targets for GHG emissions, energy and water
• Eco-friendly technology and initiatives (light fixtures, chiller systems, low temperature laundry)

Supply Chain Management

Responsible Procurement

• Supply Chain Code of Conduct
• Green Procurement Guide
• Sustainable seafood sourcing (MSC, ASC)
• Prohibition of shark fin

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, typhoons)

Transition Risks

• Fiscal initiatives to curb emissions

Reporting Standards

Frameworks Used: CDP (Climate and Water)

Certifications: LEED, ISO 22000: Food Safety Management System or HACCP, OHSAS 18001: Safety Management System

Awards & Recognition

• Dow Jones Sustainability Index inclusion (6 consecutive years)
• Responsible Brand Award and Public Welfare Project Award at the 7th China Charity Festival
• HICAP Sustainable Hotel Award for Positive Community Impact (Rooted in Nature initiative)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved an 8% decrease in average energy intensity (74 kWh per BU) from the baseline.
• Achieved a 9% decrease in average Scope 1 & 2 GHG emissions intensity (6.5 kilograms of CO2e per BU) from the baseline.
• 80% of non-hazardous waste diverted from landfill.
• 1.1 million bottles of water filled at on-site bottling plants, reducing SUP consumption.

Social Achievements

• Launched a new Balance Scorecard to assess hotel performance across six dimensions, including community engagement.
• Rolled out enhanced Core Learning programs for all hotel employees.
• Employed 773 people with disabilities (1.74% of workforce).
• Reduced employee accidents and injuries from 782 to 671.
• Raised nearly RMB 5.7 million for children with hip disabilities through “Ride for Hope 3”.
• Spent over USD2.4 million on Embrace projects benefiting an estimated 46,000 people.
• Provided 775 traineeships and 36 work placements under the Embrace++ program.

Governance Achievements

• Updated Supplier Code of Conduct in January 2018.
• Launched a new Group Policy on Corporate Data Protection in January 2018.
• Received full seafood Chain of Custody certification from the MSC for 53 hotels.

Climate Goals & Targets

Environmental Challenges

• Data collection system for waste needs improvement.
• Cyber-security breach involving the loss of personal data of Golden Circle members.

Mitigation Strategies

• Investigated and contained the data breach, notified affected individuals and regulatory authorities.
• Working to improve data collection system for waste.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable seafood sourcing (MSC certified)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, CDP, UN Global Compact

Certifications: OHSAS 18001, ISO 45001, ISO 14001, MSC (53 hotels), HACCP, ISO 22000 (69 hotels), LEED (17 hotels)

Third-party Assurance: Third-party service provider (for energy, carbon, and water footprint data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Over 500 locally and ethically sourced dishes.

Awards & Recognition

• MSC Leadership in Sustainable Seafood Award
• Shangri-La Hotel Qingdao received the MSC China Hotel of the Year Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 55% waste diversion rate from landfills (non-hazardous waste)
• Implemented new utility and energy management systems to improve energy consumption and efficiency
• Continued progress in single-use plastic reduction

Social Achievements

• More than half of colleagues participated in volunteering activities
• Hotels provided complimentary meals, food packages and face masks to the underprivileged
• Launched Shangri-La Cares commitment with best-in-class health and safety protocols

Governance Achievements

• Board formally endorsed Shangri-La’s ESG Framework
• Established an ESG Committee to drive implementation
• 100% of full-time employees completed Code of Conduct & Ethics Learning

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused unprecedented disruption to business operations
• Low hotel occupancy rates impacted operating costs and ecological footprint

Mitigation Strategies

• Developed and implemented the “Shangri-La Cares” commitment
• Took proactive steps to manage operating costs
• Implemented enhanced hygiene protocols

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (updated February 2020)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, HKEX Main Board Listing Rule 13.91 and ESG Reporting Guide, UN Global Compact

Certifications: ISO 22000: FSMS/HACCP (85 hotels)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Eco-friendly water filtering system at Island Shangri-La, Hong Kong

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Our Business
• Our Communities
• Our Environment
• Our People

Environmental Achievements

• Expanded environmental footprint data collection to include Investment Properties (subsidiaries).
• Reduced energy consumption by 5% compared to expected performance.
• Reduced carbon emissions by 5% compared to expected performance.
• Achieved a 61% diversion rate for non-hazardous waste, exceeding pre-pandemic levels.
• 36 green buildings on record.

Social Achievements

• 96% of colleagues worldwide received at least two doses of COVID-19 vaccines.
• Over 22,900 colleagues participated in volunteering activities, contributing over 115,000 volunteer hours.
• 75 Embrace projects implemented, assisting 7,000+ children and young adults.
• 207 internships and apprenticeships provided.

Governance Achievements

• 100% of colleagues completed the Group’s Core Learning program, including compliance training.
• No instances of non-compliance with laws and regulations with significant impact on Group performance.
• New anti-corruption training course developed for launch in 2022.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting lives and livelihoods of communities served.
• Increased severity and frequency of extreme weather events (typhoons, floods) in Asia Pacific region.
• Rising sea levels posing risks to beachside resorts.
• Limited availability of responsible waste management options in some jurisdictions.

Mitigation Strategies

• Shangri-La hotels provided meals, food packs, medical supplies, and care packages to vulnerable communities and frontline workers.
• Enhanced hotels’ crisis management plans with additional flood management procedures.
• Emergency response and crisis management plans frequently tested.
• Sustainable building standards implemented in new development projects.
• Waste prevention and diversion initiatives (reuse, recycling, energy recovery, donation, composting).
• Target set to reduce single-use plastic purchases by 50% from 2019 baseline by 2026.

Supply Chain Management

Supplier Audits: All F&B suppliers of medium and high-risk product categories verified.

Responsible Procurement

• Supplier Code of Conduct requiring ethical, social, and environmentally responsible practices.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons, floods)
• Rising sea levels

Transition Risks

• Increased guest demand for transparency on environmental performance
• Regulatory changes (carbon emissions caps, carbon taxes)

Opportunities

• Development of environmentally-friendly products and services

Reporting Standards

Frameworks Used: HKEX Main Board Listing Rule 13.91 and ESG Reporting Guide, GRI Standards

Certifications: ISO 22000 (Food Safety)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Filtered water in reusable glass bottles or from in-room drinking taps.
• Home-grown honey at Shangri-La Boracay.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 13% reduction of single-use plastics per room night in 2022. On track to achieve a 50% reduction by the end of 2026.
• Phasing out the use of plastic at meetings and events across the Group’s hotels.

Social Achievements

• Community engagement programs benefiting around 200,000 people during Covid-19 by delivering groceries, hot meals, and care packages to vulnerable families.
• Launched Shangri-La Circle, a revamped loyalty program.
• Launched Shangri-La Boutique, a new digital platform for retail merchandise and experiences.
• Launched Shangri-La Circle’s new membership tier, Polaris.
• Launched the “Shangri-La Plus” Management Trainee Programme.

Governance Achievements

• Continued to strengthen its business, transforming Shangri-La into a simpler, leaner and more effective organisation.
• Established programs to identify and develop leaders.

Climate Goals & Targets

Environmental Challenges

• The Covid-19 pandemic and related travel restrictions significantly impacted business.
• Sporadic Covid-19 outbreaks in Mainland China caused revenue decline.
• Inflation and continued rate hikes.

Mitigation Strategies

• Reassessed priorities, restructured and streamlined operations, and right-sized workforce.
• Revamped loyalty program and online customer experience.
• Revamped existing properties to better serve leisure guests.
• Rolled out family programs and packages.
• Hedged 60% of total debt against rising interest rates.
• Maintained cash and cash equivalents of USD766.0 million and committed undrawn facilities of USD973.1 million as of 31 December 2022.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Business Traveller Asia-Pacific Awards 2022 Best Business Hotel Brand in the World
• Business Traveller Asia-Pacific Awards 2022 Best Business Hotel Brand in Asia-Pacific
• Business Traveller Asia-Pacific Awards 2022 Best Luxury Hotel Brand in Asia-Pacific
• CNBC Awards 2022 Best Hotels for Business Travellers
• Condé Nast Traveler China Gold List 2022 Responsible Travel Award (#I’mIn)
• Freddie Awards 2022 The Best-Scoring Hotel Loyalty Programme
• Travel + Leisure World’s Best Awards 2022 The 25 Best Hotel Brands
• TTG China Travel Awards 2022 Best Luxury Hotel Brand in Greater China
• TTG Travel Awards 2022 Best Luxury Hotel Brand

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions intensity by 24% relative to 2019 baseline
• Reduced energy intensity by 12% relative to 2019 baseline
• Reduced water intensity by 7% relative to 2019 baseline
• Reduced single-use plastics intensity by 41% relative to 2019 baseline

Social Achievements

• Launched Moments of Joy programme, recognizing employees' contributions
• 91% of permanent hotel employees completed unconscious bias training
• Hired 310 low-income individuals in mainland China hotels
• USD 3.2M in project expenses and donations for community engagement

Governance Achievements

• Met sustainability-linked loan (SLL) targets and outlined 2030 targets for five KPIs
• Formalized the process of integrating climate-related risks and opportunities into the Integrated Assurance Framework
• Launched two new ESG training courses with 100% completion rates
• Established end-to-end responsible sourcing program

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 and Scope 2 emissions following post-pandemic recovery
• Increased water use compared to 2022
• Limited availability of responsible waste management options in some jurisdictions
• Food waste remains a significant challenge

Mitigation Strategies

• Updated 2030 targets for carbon emissions intensity, energy intensity, water intensity, and single-use plastics intensity
• Implementing water conservation initiatives
• Operating recycling programs at 87% of hotels
• Implementing food waste reduction strategies focusing on reducing overproduction, spoilage, and team collaboration

Supply Chain Management

Supplier Audits: 47 key suppliers underwent self-assessment or third-party assessments

Responsible Procurement

• Supplier Code of Conduct
• Risk-based approach to supplier selection
• Corrective Action Plans for risk mitigation
• Supplier training and capacity building

Climate-Related Risks & Opportunities

Physical Risks

• Temperature extremes
• Fluvial flooding
• Pluvial flooding

Transition Risks

• Technology
• Carbon pricing

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 22000

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Initiatives aligned with SDGs through the Triple S strategy.

Sustainable Products & Innovation

• Eco-friendly cleaning products
• Sustainable diamonds partnership

Awards & Recognition

• Social Innovative Contribution Award
• Honour Award
• Human Resources Online HR Distinction Awards
• HRoot Awards
• Hong Kong Council of Social Services Caring Company Label
• The Business Concept CSR Excellence Award
• AM730 ESG Green Development & Carbon Neutrality Awards