Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Social Impact & Engagement
• Governance Practices

Environmental Achievements

• 83% of operational IHG hotels achieved/maintained Level 1 IHG Green Engage certification
• Ave. of 4.5-star NABERS Energy & Water ratings during 2023 across all 8 fund hotels rated
• 5 x Green Loans Awarded by Aareal Bank in recognition of high asset energy & water efficiency in operation
• 2-star uplift to 4.5- star NABERS Energy roadmap activation at Hotel Indigo Melbourne on Flinders during repositioning phase
• Holiday Inn Express Newcastle maintains carbon neutral certification status via NABERS Climate Active pathway scheme
• 460 tonnes of carbon retired via carbon neutral carpet scheme

Social Achievements

• Recognised as a great place to work by Great Place to Work (GPTW) in Australia and New Zealand
• Launch of One Earth, Countless Experiences 2023-2025 Strategic Uplift Roadmap
• CARE program activated, supporting persons with disabilities
• RISE program activated, supported by container recycling scheme donations and fundraising

Governance Achievements

• 7th year reporting to GRESB, obtaining a score of 73/100 for Standing Investments and 90/100 Developments
• Implementation of Modern Slavery Framework
• Incorporation of ESG-related attributes into the non-financial considerations of individual remuneration

Climate Goals & Targets

Environmental Challenges

• Increased utility costs due to electricity market and growing asset portfolio
• Stakeholder pressures for ESG and climate transparency in reporting
• Insufficient data on ESG and climate-related issues for stakeholders to make informed decisions
• Regulation around ESG-related disclosures and targets
• Increasing cost of grid electricity and macro pressures to adopt renewable energy
• Regulation and policy requirements to transition to a carbon neutral economy
• Embodied carbon considerations as part of re/development requirements

Mitigation Strategies

• Leveraging competitive utility supply market for low-rate quality utility contracts via portfolio of scale
• Continued alignment with GRESB, striving for score uplift
• Engagement with third-party providers for physical climate risk portfolio insights
• Heighten ESG communications agendas
• Developing assets to achieve high NABERS Energy ratings
• Leveraging rising prevalence of renewable energy suppliers and connected grids, resulting in lower cost of renewable electricity
• Allocation of sufficient resources to establish clear ESG and climate gap analysis (i.e., adopting Greenview and investigating SBTi)
• Developing low emissions transportation pathways for hotel assets, plus development of increased guest communications
• Aligning Net Zero Strategy to international best practice standards such as SBTi
• Adopting embodied carbon strategies ahead of market movements to gain better competitive advantage

Supply Chain Management

Responsible Procurement

• Modern Slavery Policy

Climate-Related Risks & Opportunities

Physical Risks

• Increased utility costs
• Extreme weather events

Transition Risks

• Regulation around ESG-related disclosures and targets
• Increasing cost of grid electricity

Opportunities

• Leveraging competitive utility supply market
• Developing assets to achieve high NABERS Energy ratings
• Leveraging rising prevalence of renewable energy suppliers

Reporting Standards

Frameworks Used: GRI Standards: Core Option, General Disclosures 2021, TCFD Recommendations

Certifications: NABERS, Green Engage, Climate Active

Third-party Assurance: Not independently audited or assured

Sustainable Products & Innovation

• Interface Inc's recyclable carpet tiles

Awards & Recognition

• Great Place to Work certification