Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Engagement
• Employee Well-being
• Responsible Sourcing

Environmental Achievements

• Reduced energy intensity by 11.3% since 2007
• Reduced greenhouse gas emission intensity by 5.0% since 2007
• Reduced water intensity by 12.2% since 2007
• Reduced energy consumption by 399 TJ from 2007 to 2011 (US$13.2 million cost savings)
• Reduced greenhouse gas emissions by 46,000 metric tons of CO2 equivalent from 2007 to 2011

Social Achievements

• Employee turnover rate of 29% (significantly below industry average of 48%)
• 95% response rate to colleague engagement survey with 84% favorable rating
• Average of 19 hours of training per employee in 2011
• Supported various community initiatives including cultural heritage preservation, community education, and community programs in multiple locations

Governance Achievements

• Established a Group Corporate Responsibility Committee (GCRC) in 2011
• Designated Corporate Responsibility Champions at every Mandarin Oriental hotel
• Implemented strict anti-harassment policies and equal opportunity employment practices
• Maintained compliance with all required laws and regulations

Climate Goals & Targets

Environmental Challenges

• Higher than expected energy intensity at Mandarin Oriental, Macau in 2011
• Challenges in collecting complete and consistent waste data from all hotels
• Water scarcity in some operating regions

Mitigation Strategies

• Action plan implemented to improve energy performance at Mandarin Oriental, Macau
• Developing a complete, accurate, consistent, and timely measurement process for waste and emissions by 2012
• Monitoring water use and identifying hotels in water-stressed areas
• Implementing water-saving technologies in spas, laundries, kitchens, and air conditioning systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing of food products (farm-to-table initiatives)
• Sustainable seafood sourcing (Seafood Watch program)
• Environmentally friendly and organic spa products

Climate-Related Risks & Opportunities

Physical Risks

• Increased natural disasters affecting infrastructure

Transition Risks

• Carbon taxes on non-renewable energy sources
• Carbon taxes on aviation

Opportunities

• Improved energy efficiency

Reporting Standards

Frameworks Used: GRI G3 (Level C+)

Certifications: ISO 14001 (Mandarin Oriental, Kuala Lumpur), LEED Gold (Mandarin Oriental, Las Vegas), HQE (Mandarin Oriental, Paris)

Third-party Assurance: LRQA

Sustainable Products & Innovation

• Environmentally friendly and organic spa products

Awards & Recognition

• Massachusetts Lodging Association Award for Community Service (Mandarin Oriental, Boston)
• Green Tourism Silver Award (Mandarin Oriental Hyde Park, London)
• Ministry of Tourism’s Green Award (Mandarin Oriental, Kuala Lumpur)
• SpaFinder Reader’s Choice Award (Mandarin Oriental, Las Vegas)
• Five Gold Leaf Grade China Green Hotel (Mandarin Oriental, Sanya)
• Top 30 Low Emission Building Certification (Mandarin Oriental, Tokyo)
• Award for Community Service (Mandarin Oriental, Washington D.C.)

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Greenhouse gas emissions
• Water consumption
• Waste management
• Community engagement
• Cultural heritage preservation
• Employee well-being
• Responsible sourcing

Environmental Achievements

• Achieved a 10% increase in energy efficiency and a 10% reduction in greenhouse gas emissions from 2007 to 2012.
• Realized US$19.6 million in cost savings from 2007 to 2012 through energy efficiency initiatives.
• Enhanced health and safety program with an environmental section including waste management guidelines.

Social Achievements

• Continued support for community causes, including cultural heritage preservation and charitable programs.
• Global employee turnover rate of 30% (below industry average of 34%).
• 85% return rate of employees after parental leave.
• 95% response rate to employee engagement survey with 85% favorable rating.

Governance Achievements

• Launched a Group-level Corporate Responsibility Committee (GCRC).
• Implemented a Group-wide sustainability training program.
• Established new short-term environmental goals for each hotel in 2013.

Climate Goals & Targets

Environmental Challenges

• Water consumption remains a challenge.
• Inconsistent waste data collection across hotels, particularly in Asia.
• Variations in recycling capabilities across different regions.
• High emission factors in regions with new hotel developments.

Mitigation Strategies

• Established new short-term environmental goals for 2013-2016 to track progress towards 2020 targets.
• Developed a Group-wide sustainability training program for employees.
• Implemented waste management guidelines under the Safe, Sound & Sustainable program.
• Focusing on energy efficiency to mitigate high emission factors in new development areas.

Supply Chain Management

Supplier Audits: Regular audits conducted as part of the Safe, Sound & Sustainable program.

Responsible Procurement

• Encouraging local sourcing of products.
• Auditing suppliers for quality and working conditions.
• Sustainable seafood sourcing guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters affecting infrastructure and operations.

Transition Risks

• Regulatory changes related to climate change.
• Increased energy costs.

Opportunities

• Energy efficiency improvements.
• Renewable energy adoption.

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines

Certifications: ISO 14001 (Mandarin Oriental, Kuala Lumpur)

Third-party Assurance: LRQA

Sustainable Products & Innovation

• Signature spa product line with natural, non-toxic ingredients.
• Energy-efficient LED lighting.

Awards & Recognition

• Various sustainability awards for individual hotels (see Appendix).

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy intensity by 19.6% in 2019 (from 2007 baseline)
• Reduced water intensity by 16.4% in 2019 (from 2007 baseline)
• Reduced greenhouse gas emission intensity by 27.0% in 2019 (ahead of goal to reach 25% reduction by 2020)
• Eliminated 86% of 23 of the most common single-use plastic items by the end of 2019
• Approximately 70,000 kilograms of used soap and bottled guestroom amenities diverted from landfill and donated

Social Achievements

• 29 Hotel Sustainability Committee Engagement Workshops conducted to raise awareness
• 70,000 hours volunteering at local charities through FANtastic London
• Supported more than 200 charities and community organisations
• Raised US$110,000 for the Baan Nokkamin Foundation’s orphanage in Thailand
• US-based FANtastic Match donated over US$64,000 to US colleague charities

Governance Achievements

• Established a programme for responsible procurement
• Incorporated Human Trafficking Policies & Procedures in the Group Security Policies & Procedures Manual

Climate Goals & Targets

Environmental Challenges

• Eliminating all single-use plastic from hotels by March 2021
• Compatibility with dimming light systems during LED lighting upgrades
• High turnover rates in the hospitality industry

Mitigation Strategies

• Developed a comprehensive programme to replace single-use plastics with eco-friendly alternatives (82% replaced by end of 2019)
• Scheduled LED installations through 2020, acknowledging some projects will be completed later to coordinate with renovations
• Actively soliciting feedback from colleagues through surveys and pulse checks to address needs and improve satisfaction

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Procurement Policy
• Supplier Code of Conduct
• 100% ethically sourced coffee, tea, vanilla, and cocoa

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Hurricanes
• Typhoons

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Appendix C details how initiatives contribute to these goals.

Sustainable Products & Innovation

• New line of bathroom amenities replacing single-use plastics
• Sustainable honey from beekeeping initiatives

Awards & Recognition

• 18 Forbes Travel Guide 5-star ratings
• 13 Forbes Five-Star Spa awards
• Best Luxury Hotel Brand at the APAC Business Traveller Awards
• Best Business Hotel in the World (Hong Kong)
• Best Business Hotel in Kuala Lumpur (Kuala Lumpur)

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Impact
• Governance

Environmental Achievements

• 31% energy intensity reduction against 2012 baseline
• 30% carbon intensity reduction against 2012 baseline
• 17% water intensity reduction against 2012 baseline
• 51% waste intensity reduction against 2012 baseline
• 3% of total energy use is from certified renewable sources
• 87% sustainably certified paper (office paper and guest rooms)
• 40% of seafood are certified sustainable

Social Achievements

• Introduced Mental Health First Aiders
• 153 social impact initiatives conducted by colleagues
• Over US$450,000 donated through concerted efforts from colleagues and the Mandarin Oriental Foundation
• Over 3,000 volunteer hours dedicated by colleagues
• Nearly a quarter of colleagues at the CEO level or the level below are female
• 39% of our management are women
• 56% of the latest intake of graduate trainees are women

Governance Achievements

• Introduced Group-wide dedicated sustainability roles
• Established five-tier sustainability governance structure
• Improved Group average score for Safe and Sound audit by one percentage point to 93%

Climate Goals & Targets

Environmental Challenges

• Hygiene mandates of local authorities
• Guest perception of single-use plastic products as a safer choice
• Difficulty in addressing a myriad of plastic packaging from suppliers
• COVID-19 pandemic impact

Mitigation Strategies

• Communicated rigorous cleaning and sanitization procedures with local authorities and guests
• Collaborated with suppliers to identify solutions and eco-alternatives
• Implemented ‘We Care’ program with enhanced health and safety protocols
• Introduced online mobile check-in option

Supply Chain Management

Responsible Procurement

• Responsible Procurement Policy
• Supplier Code of Conduct
• Whistleblowing policy
• Focus on priority categories: coffee, tea, vanilla, cocoa, paper, seafood, cage-free eggs

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of extreme weather events
• Rising sea levels

Transition Risks

• Stringent environmental regulations

Opportunities

• Energy efficiency improvements
• Use of renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• UN SDGs (various)

Various sustainability initiatives demonstrate commitment to UN SDGs.

Sustainable Products & Innovation

• Sustainable fabrics in loungewear (seaweed, bamboo, eucalyptus)
• New approach to massage oils with concentrated essential oils and locally sourced base oils

Awards & Recognition

• Forbes Five and Four-Star Spa awards
• Michelin Green Star for Amber restaurant

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Completely eliminated dairy products from the menu to reduce carbon footprint.
• Achieved SUP-free operations by using plant-based alternatives.
• Diverted an average of 35.39% of total waste from landfill in 2022.
• Recycled an average of 345kg of cooking oil per month since June 2011.
• Saved 57,212 plastic bottles from landfills in 2020.

Social Achievements

• Implemented various initiatives to improve employee well-being, including paid volunteering hours, birthday leave, health insurance, and recreational allowance.
• Actively supports local and international charities through monetary and volunteer contributions.
• Works with NGOs to offer re-integration and development opportunities to service users.
• Supports local artists by commissioning them for art and menu design.

Governance Achievements

• Participates in bi-annual Food Made Good Rating to evaluate sustainability practices.
• Received GSTC Certification in 2023.
• Richard Ekkebus frequently speaks at sustainability events and participates in research and development.

Climate Goals & Targets

Environmental Challenges

• Waste management and recycling infrastructure challenges in Hong Kong.
• Achieving a 50/50 gender balance in the workforce.

Mitigation Strategies

• Focus on waste prevention and regular monitoring of waste output.
• Actively working towards a 50/50 gender balance.

Supply Chain Management

Responsible Procurement

• Sustainable seafood sourcing
• Fair trade agricultural commodities
• Ethically sourced animal protein
• Prioritizes organic, local, and regional sourcing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Food Made Good Rating, GSTC Criteria

Certifications: GSTC Certification (2023)

Awards & Recognition

• 2023 Green & CSR Hotelier of the Year (Richard Ekkebus)
• 2023 GSTC Certification
• 2022-2023 Michelin Green Star
• 2022 Distinguished Sustainability Leadership Award (Richard Ekkebus)
• 2022 We’re Smart Green Guide Sustainability Listing
• 2020 Asia’s 50 Best Sustainable Award
• 2020 A Foodie World – The Foodie Forks - Sustainability Award
• 2020 Food Made Good – The Environment Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Responsible Procurement
• Community Investment
• Diversity & Inclusion
• Employee Well-being

Environmental Achievements

• Reduced energy consumption by 11%
• Reduced energy budget by 8%
• Eliminated 99% of single-use plastics (excluding supplier packaging)
• Achieved 100% LRQA-verified responsibly sourced coffee, tea, cocoa, vanilla, sugar, and paper
• Avoided serving 19 types of endangered seafood species
• Reduced food waste by 66 tons (at four pilot hotels), resulting in US$207,000 net savings and 289 tons of CO2e offset.

Social Achievements

• Launched 'MOgiving' initiative empowering colleagues to contribute to local communities, resulting in over 52,000 volunteer hours and US$609,000 in donations.
• Reduced employee voluntary turnover from 25% to 22%
• Improved colleague engagement scores exceeding industry norms.
• 176 Rising Fans recruited into the graduate program.

Governance Achievements

• Appointed Richard Solomons as Independent Non-Executive Chair of the Audit Committee and Jinqing Cai as a member, resulting in a majority of independent members on the committee.
• Appointed Laurent Kleitman as Group Chief Executive.
• Continued to evolve governance to ensure board and committees have the right expertise and independence.

Climate Goals & Targets

Environmental Challenges

• Minimising food waste across hospitality
• Eliminating single-use plastics from supplier packaging
• Achieving 100% sourcing of cage-free eggs
• Scope 3 emissions measurement complexities
• Limited availability of renewable energy sources in some regions
• High cost of renewable energy procurement
• Tightening regulations on climate-related disclosures and emissions reporting
• Increased severity of extreme weather events (cyclones and floods)
• Increased capital costs from damaged properties
• Increased insurance premiums
• Reduced revenue from property closures and reduced travel demand
• Changes in precipitation patterns, extreme weather variability, and sea level rise
• Reduced availability of insurance in locations with high physical climate risks
• Increased operational costs due to increased heating and cooling needs and increased water prices
• Shift in consumer preferences toward sustainable options

Mitigation Strategies

• Partnered with Winnow's AI-powered system for food waste reduction (planned rollout in 2024)
• Working closely with suppliers to eliminate single-use plastics
• Anticipating 100% cage-free eggs by Q2 2024
• Developing an action plan for assessing and addressing Scope 3 emissions (including a Scope 3 mapping exercise in 2024)
• Exploring a centralised renewable energy purchase strategy
• Prioritising low-carbon initiatives in new hotel developments
• Implementing energy and water efficiency projects
• Implementing emergency response plans and business continuity plans
• Revising insurance coverage to include climate risks
• Prioritising water reduction initiatives in water-stressed regions
• Working with suppliers that prioritise sustainability
• Promoting green transportation modes (EVs and charging stations)
• Piloting energy modelling in building design
• Using Responsible Hotel Development Guideline
• Pursuing alignment with sustainable building certificates (e.g., LEED)
• Aligning sustainability program with GSTC Criteria (aiming for 100% GSTC certification by 2025)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 100% responsibly procured coffee, tea, cocoa, vanilla, sugar, and paper
• Avoiding endangered seafoods
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, floods, droughts)
• Changes in precipitation patterns
• Sea level rise

Transition Risks

• Increasing costs from carbon pricing policies
• Increased operational costs due to energy and raw material prices
• Increased requirements associated with green building policies
• Increased reporting and disclosure requirements
• Increased pricing of energy from fossil fuels
• Tightening regulations on climate-related disclosures and emissions

Opportunities

• Reduced exposure to fossil fuel price increases
• Reduced exposure to changes in GHG emissions pricing
• Reduced operational costs from increased efficiency
• Increased operational resilience
• Increased revenue through leadership in sustainable luxury hospitality
• Reduced costs from mitigation measures against extreme weather events
• Increased market value of energy-efficient properties

Reporting Standards

Frameworks Used: TCFD, GSTC

Certifications: GSTC (11 hotels)

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Best Luxury Hotel Brand (Luxury Travel Intelligence)
• World’s Best Hotel Spa Brand (World Spa Awards)
• 29 Michelin stars across 18 restaurants
• 15 Forbes Five Star Spas