Climate Change Data

Lemon Tree Hotels Limited

Climate Impact & Sustainability Data (2020-04 to 2021-03, 2021-04 to 2022-03, 2022-04 to 2023-03)

Reporting Period: 2020-04 to 2021-03

Environmental Metrics

Total Carbon Emissions:18,911 tCO2e/year (FY21)
Scope 1 Emissions:2,512 tCO2e/year (FY21)
Scope 2 Emissions:16,399 tCO2e/year (FY21)
Renewable Energy Share:10% (FY21)
Total Energy Consumption:83,736.03 GJ (FY21)
Water Consumption:411,985.65 KL (FY21)
Waste Generated:213.64 tons/year (FY21)

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • ~52% reduction in normalized water withdrawal intensity per total floor area since FY18
  • ~18% reduction in normalized Scope 2 Emissions per occupied room since FY18
  • ~61% reduction in normalized Energy Consumption per total floor area since FY18
  • 10% share of renewable energy in electricity mix in FY21 (increased from 6% in FY20 and 3% in FY18)
  • 15% of hotels awarded Green Building Certification under IGBC/LEED New Building scheme by FY21 (increased from 12% in FY20)

Social Achievements

  • Launched ‘Lemon Tree Cares’ initiative to provide comprehensive support to employees and their families during the COVID-19 pandemic
  • 14.3% of ODIs (Opportunity Deprived Indians) in the workforce in FY21 (compared to 16% in FY20)
  • Zero health and safety related incidents reported at under-construction sites in FY21
  • 85% retention of new employees in FY21

Governance Achievements

  • Established an ESG Taskforce to develop and implement ESG strategy
  • Implemented Enterprise Risk Management (ERM) strategy
  • 98% of owned/leased operations assessed for risks related to fraud and corruption in FY21
  • No incidents of bribery and corruption observed across operations in FY21
  • No POSH related complaints registered across operations in FY21

Climate Goals & Targets

Long-term Goals:
  • 100% EV fleet across operations by FY31
Medium-term Goals:
  • Reduce energy intensity by 15% by FY26 (compared to FY19 baseline)
  • Increase renewable energy usage to 35% by FY26 and 50% by FY30
  • Achieve IGBC/LEED Gold certification for 100% of owned hotels by FY26
  • Increase ODIs in workforce to 30% by FY26
Short-term Goals:
  • Reduce water consumption intensity by 10% by FY23 (compared to FY19 baseline)

Environmental Challenges

  • COVID-19 pandemic significantly impacted operations and revenue
  • Resource consumption (energy, water, waste)
  • Changing consumer preferences
  • Cyber security risks
  • Debt management
  • Climate change
  • Reputational risk
  • Dependence on OTAs
Mitigation Strategies
  • Significant cost control measures to reduce cash burn
  • Adoption of renewable energy, improved energy efficiency, and waste management initiatives
  • Data analytics to address evolving customer needs, customer engagement programs, and loyalty program
  • Updating data privacy policy, upgrading IT infrastructure, and cybersecurity training
  • Focused monitoring of business performance, asset-light growth strategy, and asset monetization
  • Green building design, investment in low-emission technology, and exploration of carbon offsetting
  • Loyalty program, strategic networking, community outreach, and timely response to customer grievances
  • Improving website user interface and encouraging direct bookings through loyalty program

Supply Chain Management

Responsible Procurement
  • Ethical and responsible sourcing practices
  • Development of a Code of Conduct for suppliers

Climate-Related Risks & Opportunities

Opportunities
  • Adoption of renewable energy
  • Investment in energy-efficient technologies

Reporting Standards

Frameworks Used: GRI Standards (core criteria), SASB, GRESB

Certifications: IGBC/LEED Gold Standard (6 hotels)

Third-party Assurance: Deloitte Haskins and Sells LLP

UN Sustainable Development Goals

  • SDG 7
  • SDG 12
  • SDG 13
  • SDG 6
  • SDG 10
  • SDG 5
  • SDG 4
  • SDG 8
  • SDG 15
  • SDG 11
  • SDG 9

Initiatives aligned with various SDGs as detailed in the report

Awards & Recognition

  • Travelers’ Choice Award (68 out of 79 hotels)
  • Best of the Best Award (Lemon Tree Premier, Corbett)
  • Investing in People Award, Tourism for Tomorrow Awards 2019
  • Green Champion Award 2018
  • Boldness in Business Award for Corporate Responsibility/Environment 2018
  • Other awards listed in the report

Reporting Period: 2021-04 to 2022-03

Environmental Metrics

Total Carbon Emissions:16,395 tCO2e/year (Scope 1+2)
Scope 1 Emissions:4,976 tCO2e/year
Scope 2 Emissions:11,419 tCO2e/year
Renewable Energy Share:15.25%
Total Energy Consumption:107,838 GJ/year
Water Consumption:540,305 KL/year
Waste Generated:817 tons/year
Carbon Intensity:0.0701 tCO2e/m2

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • 15.25% share of renewable energy in the electricity mix in FY22
  • 37.80% reduction in normalised water withdrawal intensity per total floor area since FY19
  • 13.95% reduction in normalised emissions intensity per occupied room since FY19

Social Achievements

  • 13% Opportunity Deprived Indians (ODIs) employed in FY22
  • Launched ‘Lemon Tree Cares’ initiative providing COVID-19 support to employees and their families.
  • Implemented new policies for social media, internal transfers, and the right to association.

Governance Achievements

  • Operations audited (internally) for cases of corruption and bribery
  • 78.18% average board attendance
  • 20 board committee meetings held during FY22

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 15% reduction in energy consumption (intensity based) by FY26
  • 50% renewable energy by FY26
  • 40% reduction in GHG emissions (intensity based) by FY26
  • 10% reduction in water consumption (intensity based) by FY26
  • 100% IGBC certification of hotels by FY26
  • 30% ODIs in the workforce by FY26
  • 15% women in senior management by FY26
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Supply chain disruptions
  • Increase in power and fuel costs
  • Rise in price of airline tickets
  • Rise in procurement costs due to increase in commodity price
  • High attrition rate
Mitigation Strategies
  • Cost rationalisation and ARR restoration
  • Renegotiated purchase contracts with suppliers
  • Timely fund arrangements
  • Asset-light growth strategy
  • Revamped SOPs, cross-trained and upskilled employees
  • Launched ‘Rest Assured’ health and hygiene program

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement
  • ESG-focused agreement with key suppliers
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: International Integrated Reporting Framework (IIRC), GRI Standards: Core option

Certifications: IGBC Gold Certification (6 hotels)

Third-party Assurance: Felix Advisory Private Limited

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 16 (Peace, Justice and Strong Institutions)

Initiatives contributing to these goals are detailed throughout the report.

Awards & Recognition

  • TripAdvisor Travelers’ Choice Award (61 out of 80 hotels)
  • Chief Minister’s Excellence Award for Labour Welfare
  • Asia’s Biggest Tourism Awards
  • Hotelier India Awards 2021
  • Investing in People Award, Tourism for Tomorrow Awards 2019
  • Role Model Company 2017 and 2012
  • Hellen Keller Award
  • Best Large Workplaces in Asia 2018
  • Best Company in India 2017
  • Best Company in Asia 2017
  • Exemplary Practice Award 2014
  • Green Champion Award 2018
  • Boldness in Business Award 2018
  • Best Employer – National Award, 2016 and 2011
  • Asian Human Capital Award 2015

Reporting Period: 2022-04 to 2023-03

Environmental Metrics

Total Carbon Emissions:41965 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:10115 tCO2e/year
Scope 2 Emissions:31850 tCO2e/year
Renewable Energy Share:11.15%
Water Consumption:739175 KL/year
Waste Generated:304.16 tons/year

ESG Focus Areas

  • Customer Delight
  • Brand and Reputation Management
  • Diversity and Inclusion
  • Commitment to Human Rights
  • Water Management
  • Ethics and Transparency
  • Data Privacy
  • Economic Performance
  • Talent Management
  • Waste Management
  • Energy Management
  • Sustainable Supply Chain

Environmental Achievements

  • 19% reduction in GHG emissions (intensity based) in FY23 over FY19 baseline
  • 10% reduction in Energy Consumption (intensity based) in FY23 over FY19 baseline
  • 15% reduction in water consumption (intensity based) in FY23 over FY19 baseline
  • 25% certified green buildings (hotels) in FY23

Social Achievements

  • 13% Opportunity Deprived Indians (ODIs) in the workforce in FY23
  • 12% women across the workforce in FY23

Governance Achievements

  • Implemented a rigorous process for handling all related party transactions
  • Strong commitment to upholding the highest standards of ethical conduct and integrity

Climate Goals & Targets

Long-term Goals:
  • Pathway to Net Zero
Medium-term Goals:
  • 50% Renewable Energy usage by FY26
  • 40% reduction in GHG emissions by FY26
  • 100% certified green buildings by FY26
  • 15% women across the workforce by FY26
  • 30% Opportunity Deprived Indians (ODIs) in the workforce by FY26
Short-term Goals:
  • 10% reduction in water consumption by FY26
  • 15% reduction in Energy Consumption by FY26

Environmental Challenges

  • Unstable supply of Renewable Energy (RE) impacting GHG emissions
  • Deviation from ethical/transparent practices possible in a growing network
  • Deviation from compliance possible in a growing network
Mitigation Strategies
  • Instituted dual/multiple sign-off process, active whistleblower policy, strong ombudsman policy
  • Defined a new data privacy policy following global and Indian standards
  • Internal audit system and software (Legatrix) to monitor compliances

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct promoting sound labour practices and fair treatment of workers

Climate-Related Risks & Opportunities

Opportunities
  • Increasing share of renewable energy
  • Use of energy efficient equipment
  • Action plan to use EV vehicles
  • Use of cleaner fuels
  • Phasing out of equipment using CFCs
  • Planting trees
  • Exploring carbon offsets

Reporting Standards

Frameworks Used: GRI Standard, IIRC framework, UN Sustainable Development Goals

Certifications: IGBC

Third-party Assurance: FELIX advisory