Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Continued implementation of 'Save Tomorrow, Today' program
• Calculated Scope 3 emissions for the first time
• More than two-thirds of owned/managed hotels certified by Green Key, Green Globe, Green Tourism and Travelife or in accordance with relevant ISO standards.
• Installation of energy-efficient measures in hotels
• Use of 100% renewable power in UK, Netherlands, and Germany hotels
• Investment in LED lighting and e-bikes for guests
• Implementation of automated systems for energy saving
• Introduction of water-saving bathroom mixers and investment in water systems

Social Achievements

• Launched Reassuring Moments program supporting guest and team member health & safety
• Aligned objectives to the UN Sustainable Development Goals (SDGs)

Governance Achievements

• Established an ESG Committee
• Integrated climate-related topics into existing governance structures
• Published first TCFD report

Climate Goals & Targets

Environmental Challenges

• Transitional risks (policy and legal changes, carbon pricing, technology changes, market shifts, reputational risks, increased material costs)
• Physical risks (extreme weather events, rising temperatures, water stress, sea-level rise, forest fires)

Mitigation Strategies

• Monitoring regulatory environment and proactive response
• Energy-saving initiatives
• Monitoring developments and government plans for energy transition
• BREEAM assessments for energy-efficient buildings
• ESG Committee development and monitoring of climate-related policy
• External environmental performance certification
• Monitoring market dynamics
• Sourcing goods from local sources
• Hotel-specific controls for flood defense and insurance plans
• Site-specific response plans for flash floods
• Regular maintenance of cooling systems and energy efficiency measures
• Investment in water-efficient technology
• Crisis management plan for forest fires

Supply Chain Management

Responsible Procurement

• Responsible & Ethical Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Flash flooding
• Forest fires
• Sea-level rise
• Rising annual mean temperatures and water stress

Transition Risks

• Policy and legal changes
• Carbon pricing
• Technology changes
• Market shifts
• Reputational risks
• Increased material costs

Opportunities

• Changing customer preferences
• Energy and water efficiency

Reporting Standards

Frameworks Used: TCFD

Certifications: Green Key, Green Globe, Green Tourism, Travelife, ISO 50001 (German sites), BREEAM

UN Sustainable Development Goals

• Sustainable Cities and Communities

Sustainable Products & Innovation

• Carbon-neutral meeting rooms

Awards & Recognition

• Blue Flag Gold plaque (Arena Hospitality Group)

Environmental Metrics

ESG Focus Areas

• Renewable energy
• Energy efficiency
• BREEAM certifications
• Emissions mapping (including Scope 3)
• Net zero target (working with SBTi)

Environmental Achievements

• Investments in renewable energy
• Energy efficiency program launched to reduce power consumption
• Intensive emissions mapping process, including Scope 3

Social Achievements

• Hundreds of new recruits hired through partnerships with Department for Work and Pensions, charities, universities, and colleges
• Created 200 new jobs for art’otel London Battersea Power Station opening

Governance Achievements

• ESG initiatives and credentials overseen by the Board
• Notification submitted to the Science-Based Targets Initiative (SBTi) to set net zero targets by 2040

Climate Goals & Targets

Environmental Challenges

• Cost inflation (utilities and labor)
• Higher interest rates
• Supply chain disruptions
• Difficulty attracting and retaining skilled workforce

Mitigation Strategies

• Successful mitigation of inflationary and sector-specific costs through proactive investments in energy efficiency and people
• Utility cost hedges
• Managing labor-related cost pressures
• Hedges in place to mitigate rising interest rates (most loans fixed to 2028)
• Talent attraction and retention initiatives and employee engagement and wellbeing programmes

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee well-being
• Stakeholder engagement

Environmental Achievements

• Developed a decarbonisation plan with a view to reaching net zero in 2040
• Targeting a BREEAM ‘Excellent’ environmental accreditation for a new London development

Social Achievements

• Introduced employee engagement initiatives including an ESG newsletter and ESG ambassadors
• Planning an initiative to provide every employee with one paid volunteering day per year

Governance Achievements

• Produced a Task Force on Climate-related Financial Disclosures (TCFD) report for 2023
• Marcia Bakker appointed Chair of the ESG Committee

Climate Goals & Targets

Environmental Challenges

• Supply chain issues delayed the full opening of art’otel London Hoxton and art’otel Rome Piazza Sallustio
• Reduced flight capacity into Pula affecting occupancy levels in Croatia
• Persistently challenging macroeconomic backdrop

Mitigation Strategies

• Effective cost management, centralisation and technological initiatives
• Focus on converting demand from other market segments (groups, meetings & events, corporate business travel)
• Phased opening of new properties

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, IFRS S1 and S2, CSRD