Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Installed Melink Intelli-hood systems in Hilton Hawaiian Village Waikiki Beach Resort, resulting in an annual energy reduction savings of over 800,000 kWh
• Installed high-efficiency LED lighting in Hilton and Waldorf Astoria Bonnet Creek complex, resulting in an annual energy reduction savings of over 2,100,000 kWh
• Installed high-efficiency LED lighting and “Smart” guest room controllers in Hilton Santa Barbara Beachfront Resort, expected to result in an annual energy reduction savings of over 470,000 kWh
• New York Hilton Midtown installed a cogeneration plant providing more than 50 percent of the hotel’s electrical power and more than 40 percent of the steam needed for heating and hot water.

Social Achievements

• 90% of Corporate headquarters Associates responded to the Associate Satisfaction Survey, with 88% rating overall satisfaction as 7 or higher and 95% willing to recommend working at Park.
• Corporate headquarters Associates volunteered 400 hours and Park contributed over $270,000 in charitable donations in 2018.
• All Associates participate in annual anti-bribery/anti-corruption training and annual harassment, diversity and compliance training.

Governance Achievements

• Adopted and published Environmental and Human Rights Policies and a Vendor Code of Conduct in 2019.
• ESG objectives, reporting and strategy are directly overseen by the Chairman and CEO and reported to the Nominating and Corporate Governance Committee of the Board.

Climate Goals & Targets

Environmental Challenges

• Hurricanes Irma and Maria caused major damage and disruption to several hotels in Florida and Puerto Rico in FY 2017.
• Higher utility costs, additional social and environmental regulations, and increased costs within the supply chain.

Mitigation Strategies

• Incorporating disaster relief planning into strategy.
• Collaborating with stakeholders to ensure sustainable business management.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes

Transition Risks

• Higher utility costs, additional social and environmental regulations

Opportunities

• Energy efficiency investments

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 50001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 8.1% and carbon emissions by 10.7% (portfolio-wide, 2018 vs. 2017).
• Reduced water consumption by 10.3% (portfolio-wide, 2018 vs. 2017).
• Implemented various waste reduction initiatives, including the elimination of plastic straws, stir sticks, Styrofoam, and single-use bath amenities at several properties.
• Installed AquaRecycle systems in several properties to reduce water and energy consumption in laundry facilities.
• Donated food waste to local farmers and pig farmers at several properties, diverting thousands of pounds of waste from landfills.

Social Achievements

• 90% of corporate headquarters associates responded to the associate satisfaction survey, with 88% rating overall satisfaction as 7 or higher.
• 95% of corporate headquarters associates would recommend working at Park.
• Implemented several new employee programs based on associate feedback.
• Headquarters associates volunteered 400 hours and Park contributed over $270,000 in charitable donations in 2018.
• Implemented a Mindful Return Program to assist new parents with transitioning back to work.

Governance Achievements

• Adopted and published Environmental and Human Rights Policies and a Vendor Code of Conduct.
• ESG objectives overseen by the Chairman and CEO and reported to the Nominating and Corporate Governance Committee.
• All associates participate in annual anti-bribery/anti-corruption training.

Climate Goals & Targets

Environmental Challenges

• Climate change and extreme weather events (increased utility costs, supply chain disruptions, insurance premiums).
• Data limitations and exclusions in environmental reporting (missing or inaccurate data from some properties).

Mitigation Strategies

• Disaster relief planning for climate change-related risks.
• Mechanical and Energy Assessments to reduce energy consumption.
• Adherence to ESG-related regulations and implementation of internal policies.
• Data estimation and extrapolation to account for missing data in environmental reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, natural disasters

Transition Risks

• Increased utility costs, supply chain disruptions, increased insurance premiums

Opportunities

• Energy efficiency investments, renewable energy projects

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Commitments
• Risk Mitigation

Environmental Achievements

• Invested in nearly a dozen energy efficiency projects, reducing energy consumption by approximately 3.96 million kWh annually.
• Achieved a 32% waste diversion rate in 2019.
• Installed an AquaRecycle System at the Hilton New Orleans Riverside to reduce water consumption.

Social Achievements

• Implemented mandatory unconscious bias training for all employees.
• Established a Diversity & Inclusion Steering Committee.
• Park Cares Committee led volunteer activities, raising over $12,000 for Cycle for Survival.

Governance Achievements

• Adopted environmental policy, human rights policy, and vendor code of conduct.
• CEO signed the CEO Action for Diversity & Inclusion™ pledge.
• Participated in the Global Real Estate Sustainability Benchmark (GRESB) assessment for the first time in 2020.

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (extreme weather, increased utility costs, water stress).
• Social risks associated with inequality and racial injustice.
• COVID-19 pandemic impacting operations in 2020.

Mitigation Strategies

• Disaster relief planning for climate change-related risks.
• Implementation of ongoing ESG management strategies.
• First Responder Program to address natural disasters.
• Facility safety assessments.
• Diversity & Inclusion Steering Committee to address social risks.
• Green Park Sustainability Playbook to advance sustainability.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Water stress

Transition Risks

• Regulatory changes
• Increased utility costs

Opportunities

• Energy efficiency investments
• Renewable energy options

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ENERGY STAR (some properties), ISO 14001 (Hilton-branded properties)

Awards & Recognition

• Newsweek’s America’s Most Responsible Companies

Environmental Metrics

ESG Focus Areas

• Responsible Risk Mitigation
• Responsible Environmental Management
• Responsible Social Commitment

Environmental Achievements

• Reduced total energy use intensity by 27% since 2017 (like-for-like basis)
• Reduced scope 1 & 2 emissions intensity by 28% since 2017 (like-for-like basis)

Social Achievements

• Provided health and wellness programs and initiatives for corporate employees, including healthcare benefits and paid parental leave
• Supported over 13 organizations through charitable contributions, sponsorships, and scholarships, totaling $170,000

Governance Achievements

• Established an ESG Committee overseen by the Nominating, Governance and Corporate Responsibility Committee of the Board
• Introduced a formal ESG Scorecard in 2022 to tie ESG results to executive compensation

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (physical and transitional)
• Managing ESG risks across a portfolio of hotels managed by third-party operators

Mitigation Strategies

• Ongoing assessment of sustainability opportunities and climate change risks across the portfolio
• Capital allocation for sustainability initiatives
• Development of tools and communications to engage with third-party operators on Green Park program
• Annual review of top risks by senior management and the Audit Committee

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct (preference for suppliers reflecting diversity and environmental footprint minimization values)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Energy efficiency investments

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Governance
• Social
• Environmental

Environmental Achievements

• Reduced total energy consumption in properties by 576,549 GJ since 2017 baseline
• Reduced scope 1 & 2 GHG emissions by 59,918 metric tons of CO2e since 2017 baseline

Social Achievements

• No associates suffered work-related severe injuries or fatalities in 2022
• All associates participated in DEI and unconscious bias training, as well as human trafficking/modern slavery awareness training in 2022

Governance Achievements

• Established a formal, decision-making ESG Committee at the Executive Committee management level in early 2022
• Added an ESG scorecard to executive performance objectives in fiscal year 2022 to motivate executives to achieve goals related to sustainability and engagement

Climate Goals & Targets

Environmental Challenges

• Limited control over day-to-day operations within hotels due to third-party operators managing properties
• Financial implications and risks due to natural disasters, climate change or availability of natural resources

Mitigation Strategies

• Developed tools and communications to engage with third-party operators on ESG matters (Green Park Sustainability Playbook)
• Conduct property loss risk assessments to identify salient property loss potential, including from climate-related events; roughly one-third of portfolio surveyed annually
• Allocate capital on an ongoing basis across the business to mitigate climate change related risks and take advantage of sustainability related opportunities

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct (outlines business standards and expectations for vendors, including ethical business practices, labor practices and human rights, and environmental stewardship)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Energy efficiency projects, energy saving technologies

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14064 – Part 3

Third-party Assurance: Ruby Canyon Environmental, Inc. (Limited Assurance)

Environmental Metrics

ESG Focus Areas

• Risk Management
• Environmental Management
• Social Commitment

Environmental Achievements

• Reduced energy intensity by 11% from 2019 baseline year
• Reduced GHG emissions intensity by 10% from 2019 baseline year
• Reduced waste intensity per occupied room by 19% from 2019 baseline year
• Increased renewable energy share to 12% of total energy

Social Achievements

• Increased gender diversity by 6% among senior leadership in 2023
• Increased Board of Directors female representation to 33%
• Charitable contributions of $322K to 17 organizations
• Associate engagement score of 86%

Governance Achievements

• Renamed ESG Committee to Corporate Responsibility Committee
• Amended Environmental Policy, Human Rights Policy, and Vendor Code of Conduct
• Implemented a corporate responsibility scorecard, achieving a "high" performance level

Climate Goals & Targets

Environmental Challenges

• Water intensity per occupied room increased by 10% from 2019 (due to lower occupancy)
• Waste diversion has declined since 2019
• Climate change impacts (hurricanes, flooding, wildfires)
• Water scarcity in some locations

Mitigation Strategies

• Implemented resiliency initiatives at coastal assets (Tiger Dams, emergency power upgrades)
• Invested in leak detection technology (saving millions of gallons of water)
• Developed asset-specific SOPs for emergency response
• Implemented comprehensive renovation and resiliency upgrades at Casa Marina Key West
• Developed and implemented waste diversion programs at several properties

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Preference for suppliers reflecting Park's values of diversity and inclusiveness and environmental footprint minimization
• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Water stressed areas
• Droughts
• Flooding
• Wildfires
• Other extreme weather events
• Biodiversity and habitat destruction
• Damage to building integrity
• Rising sea levels

Transition Risks

• Increased environmental regulations
• Increased property insurance costs
• Increased corporate responsibility requirements
• Raw material and process cost increases
• Loss of market share

Opportunities

• Decreased utility costs
• Increased market share
• Enhanced building resilience
• Lower property insurance premiums
• Optimization of energy generation
• More stable assets
• Increased investor confidence
• Increased access to green financing

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ENERGY STAR, ISO 14001, ISO 50001, LEED

Third-party Assurance: TÜV SÜD

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ENERGY STAR Partner of the Year for Energy Management (2024)
• Newsweek – America’s Most Responsible Companies 2024
• Newsweek – America’s Most Trustworthy Companies 2024