Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Efficiency
• Waste Management
• Biodiversity
• Sustainable Procurement

Environmental Achievements

• Hotel operators to reduce scope 1 and scope 2 carbon emissions by at least 30% in 2025 (baseline 2016)
• Hotel operators to reduce water consumption by at least 15% in 2025 (baseline 2016)
• Hotel operators to reduce waste to landfill by at least 45% in 2025 (baseline 2016) and food waste to 50% in 2030

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Climate change and extreme weather events impacting hotel assets
• Water scarcity

Mitigation Strategies

• Proactive risk mitigation through insurance
• Implementation of management tools and guidelines to monitor greenhouse gas emissions
• Water conservation plan rollout across all hotels
• Waste reduction targets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers must obtain and maintain environmental permits, follow applicable laws and regulations, minimize waste, and implement proper waste disposal policies.

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Storms
• Rising sea levels

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Global Real Estate Sustainability Benchmark, BREEAM In Use International

Certifications: ISO 9001, ISO 14001, ISO 50001, Trip Advisor Green Leaders, Green Key Eco Rating

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

• Climate Change
• Energy Efficiency
• Water Efficiency
• Waste Management
• Biodiversity
• Employee Wellbeing
• Responsible Procurement
• Community Engagement

Environmental Achievements

• 70% reduction in market-based GHG intensity from a 2019 baseline
• 10% reduction in portfolio energy intensity from a 2019 baseline
• 44% of the portfolio by floor area achieved BREEAM In-Use Part 1 Very Good or Excellent
• 40% portfolio recycling and anaerobic digestion/composting rate
• 10/11 sites recycling food waste

Social Achievements

• Introduced ‘Everymind at work’ app for employee mental health
• New London office achieved SKA Silver rating
• ESG targets embedded in senior management bonus scheme
• Partnership with BCorp certified search firm Society for DEI
• Various community investment programs across hotels (e.g., donations, volunteering, employability initiatives)

Governance Achievements

• Drafted ESG policy and manual for AHM
• ESG targets embedded in all AHC staff bonus schemes and all AHM hotel bonus schemes
• ESG risks included in the company Risk Register and reviewed annually
• Developed an ESG framework for acquisitions, developments and refurbishments

Climate Goals & Targets

Environmental Challenges

• High baseline energy and water consumption in older properties
• Varying waste treatment infrastructure across regions
• Impact of COVID-19 on occupancy and energy/water consumption
• Increasing utility costs, prices of natural resources, and carbon offset costs
• Enhanced environmental reporting obligations and increasing regulation

Mitigation Strategies

• Planned capital investments in ESG to improve hotel performance
• Implementing single stream recycling and anaerobic digestion for food waste
• Incorporating energy efficiency initiatives into renovations
• Commissioning energy and water audits
• Developing rolling ESG action plans for each hotel

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG Framework for renovations
• Marriott's responsible sourcing commitments

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Flood risk
• Extreme weather events

Transition Risks

• Increasing utility costs
• Increasing prices of natural resources
• Costs of adapting buildings
• Increasing price of carbon offsets
• Enhanced environmental reporting obligations
• Changing consumer behavior

Opportunities

• Positioning hotels as sustainable luxury hotels

Reporting Standards

Frameworks Used: INREV, Greenhouse Gas (GHG) Protocol, GRESB, TCFD

Certifications: BREEAM In-Use, Green Key, Biosphere, LEED Gold

Third-party Assurance: Deloitte (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Greywater recycling equipment
• Roof gardens
• Reduced energy and water consumption in new constructions

Awards & Recognition

• Social Award of the Barcelona Sustainable Tourism Awards 2022 (Hotel Arts Barcelona)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 70% reduction in market-based Scope 1 & 2 GHG intensity from 2019 baseline
• 39% reduction in location-based Scope 1 & 2 GHG intensity from 2019 baseline
• 94% of electricity from renewable sources in 2023
• 8/13 hotels certified BREEAM In Use
• All hotels now recycling food waste

Social Achievements

• Employee NPS score of 100
• Operator NPS score of 65
• 3,668 hours of staff volunteering in 2023 (87% increase from 2022)
• Established a DEI Committee

Governance Achievements

• Achieved a GRESB rating of 5 stars with a score of 89/100
• ESG targets embedded in all AHC staff bonus schemes and all AHM hotel bonus schemes
• ESG KPIs added to government-mandated all-staff bonus scheme in French and Belgian hotels

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to market risks (increasing prices of natural resources, utilities, food & beverage supplies, insurance costs)
• Maintaining a 5-star GRESB rating due to new portfolio additions
• Achieving higher guest satisfaction scores due to renovations
• Flood risk representing a €26.3m loss expectancy (2.5% of portfolio)
• Drought risk (up to 17% reduction in precipitation in Madrid, 10% in Barcelona)
• Temperature increase (up to 1.26°C in Stockholm, 1.21°C in Madrid)

Mitigation Strategies

• Implementing mitigating actions for flood risk
• Incorporating greywater recycling, rainwater harvesting, and green roofs in new developments
• Including climate risk due diligence in acquisition reviews
• Performing deeper studies for assets undergoing major renovation
• Developing asset-specific net zero carbon pathways
• Implementing energy reduction measures in renovations (e.g., pipe insulation, lighting presence detectors)
• Launching a policy on minimizing default guestroom heating and cooling settings
• Commissioning detailed energy and water audits
• Implementing waste reduction projects (e.g., refillable water bottles, reducing packaging)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG Framework for renovations (criteria for sustainable timber, paints, adhesives, steel, glass, concrete)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Drought
• Temperature increase

Transition Risks

• Policy and legal risks (CSRD, carbon taxes)
• Technological risks (adapting hotels to net zero)
• Market risks (increasing resource prices, utilities, insurance costs, stranded assets)
• Consumer behavior changes

Reporting Standards

Frameworks Used: INREV, Greenhouse Gas (GHG) Protocol

Certifications: BREEAM In-Use, Green Key, Biosphere, Hilton LightStay, ISO 14001

Third-party Assurance: Deloitte (limited assurance)