Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Sustainable Communities

Environmental Achievements

• 3.9% reduction in carbon footprint per occupied room (from a 2012 baseline)
• 4.8% reduction in water use per occupied room in water-stressed areas (from a 2012 baseline)
• 34,389 green solutions implemented through the IHG Green Engage™ system

Social Achievements

• 9,287 participants globally benefited from the IHG® Academy
• Responded to 27 disasters in 17 countries
• 87.3% all-time high for employee engagement scores in corporate offices and managed hotels

Governance Achievements

• Launched Human Rights e-learning module
• Enhanced procurement systems to require new suppliers to sign the IHG Vendor Code of Conduct
• 100% score on the Human Rights Campaign's 2015 Corporate Equality Index

Climate Goals & Targets

Environmental Challenges

• Water scarcity in various regions
• Climate change impacts
• Maintaining high levels of employee engagement across a global workforce

Mitigation Strategies

• Partnership with the Water Footprint Network to develop a water stewardship program
• IHG Green Engage™ system to reduce environmental impact and improve efficiency
• Various employee engagement initiatives, including Celebrate Service Week and IHG Leadership Academy

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• IHG Vendor Code of Conduct
• Supplier diversity program
• Sustainable Seafood Policy

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity
• Extreme weather events

Transition Risks

• Changes in environmental regulations

Opportunities

• Development of energy-efficient hotels

Reporting Standards

Frameworks Used: UN Global Compact, GHG Protocol

Certifications: LEED, Green Globe, TripAdvisor’s GreenLeaders

Third-party Assurance: Deloitte, Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Forbes Top 50 Green Brands
• Female FTSE 100 Award
• Forbes Most Reputable Companies
• Project Icarus Sustainability Gold Medal

Environmental Metrics

ESG Focus Areas

• Culture of responsible business
• People
• Environmental sustainability
• Sustainable communities

Environmental Achievements

• 7.4% reduction in carbon footprint per occupied room from 2013-2016
• 7.9% reduction in water use per occupied room in water-stressed areas from 2013-2016
• $67.4m avoided costs by IHG branded hotels through using the IHG Green Engage™ system
• 15,324 Green Solutions implemented through our IHG Green Engage system

Social Achievements

• 11,985 participants globally benefited from the IHG® Academy in 2016
• 120,000+ colleagues from 81 countries took part in global fundraising week for the IHG® Foundation
• 27,000+ colleagues in corporate offices and hotels completed human rights e-learning
• 100% score on the Human Rights Campaign’s 2017 Corporate Equality Index

Governance Achievements

• Reinforced commitment to ethical business practices and embedded policies and training such as human rights e-learning, risk management and data protection approach
• Established a Supply Chain Risk Group to identify and evaluate risks at corporate or hotel level
• More than 1,600 suppliers signed up to the IHG Vendor Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Progress to be made to achieve carbon and water reduction targets by 2017
• Franchised hotels present challenges in reducing carbon and water use

Mitigation Strategies

• Pilots to reduce water and carbon use to be rolled out to all hotels in 2017
• New toolkit with guidance and solutions for hotels to adopt water and carbon saving solutions
• Set carbon and water saving targets through IHG Green Engage system
• Identified Green Solutions that deliver greatest carbon and water savings and appropriate vendors

Supply Chain Management

Supplier Audits: 1,600+ suppliers signed up to IHG Vendor Code of Conduct (2016)

Responsible Procurement

• IHG Vendor Code of Conduct
• Sustainable Seafood Policy
• Cage-free eggs policies and goals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP Climate Change, CDP Water

Certifications: LEED, TripAdvisor’s GreenLeaders, Green Globe, Green Tourism, Green Key Global

Third-party Assurance: Deloitte, Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Clean water and sanitation
• Decent work and economic growth
• Reduced inequalities
• Sustainable cities and communities
• Responsible consumption and production
• Climate action
• Partnerships for the goals

IHG's business intrinsically supports several SDGs through economic multiplier effect, job creation, quality education via IHG Academy, and climate change mitigation through IHG Green Engage system.

Awards & Recognition

• RobecoSam Silver Class
• Top Employers UK and China
• JobCrowd awards
• FTSE4GOOD Index
• Icarus Sustainability Gold Medal
• Harvard Business Review 2016 Empathy Index

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Community impact
• Our people
• Responsible procurement

Environmental Achievements

• Reduced carbon footprint per occupied room by 15% from 2012 baseline
• Reduced water use per occupied room in water-stressed areas by 5%
• Avoided costs by IHG branded hotels in 2017, through using the IHG Green Engage™ system ($100m)
• Absolute reduction of carbon emissions between 2016 and 2017 for our global hotel estate and corporate offices (1.6%)

Social Achievements

• Provided skills and improved employability to 47,962 people via the IHG Academy (120% of target)
• Raised $3,000,000 to support communities through the IHG Foundation
• 100,000 Colleagues involved in supporting IHG Foundation Week and other related events each year
• 13,633 Individuals provided with skills and improved employability through the IHG Academy in 2017
• 2,039 Colleagues supported through the IHG Colleague Disaster Relief Fund in 2017

Governance Achievements

• Increased spend with diverse suppliers in the US to $66m (from $59m in 2016)
• Integrated corporate responsibility criteria into the selection and evaluation process for all preferred suppliers
• Onboarded suppliers are required to complete due diligence questionnaires covering responsible business and human rights
• 40,000 Colleagues in our corporate office and managed hotels completed our human rights e-learning module

Climate Goals & Targets

Environmental Challenges

• Threats to business and disasters affecting people (terrorist attacks, flooding, hurricanes)
• Cyber threats
• Climate change and extreme weather conditions
• Falling short of water savings target (5% reduction instead of 12%)

Mitigation Strategies

• Colleagues came together to help people in need
• Constantly reviewing processes to ensure guest data security
• Working to minimize environmental impacts and ensure hotels are prepared for disasters
• Consolidating learnings to inform work in water stewardship and other areas

Supply Chain Management

Supplier Audits: Increase supplier audits

Responsible Procurement

• Increase supplier risk profiles and audits for preferred suppliers
• Increase ethical supplier awareness
• Roll out new training for corporate colleagues and hotels
• IHG green criteria
• Onboarded suppliers are required to complete due diligence questionnaires covering responsible business and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Reporting Standards

Frameworks Used: UN Global Compact, FTSE4GOOD

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 14 (Life below water)
• Goal 15 (Life on land)
• Goal 16 (Peace, justice and strong institutions)
• Goal 8 (Decent work and economic growth)

IHG's responsible business approach aligns with these SDGs through various initiatives

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Business
• Human Rights
• Community Impact
• Water Stewardship
• Supply Chain Responsibility
• Governance

Environmental Achievements

• Reduced carbon footprint by 5.9% per occupied room between 2018 and 2019 (2017 baseline)
• 45% of new contracts through tendering processes awarded to IHG Green Suppliers

Social Achievements

• 15,081 people benefited from the IHG Academy programme in 80 countries
• $1.3m contributed to community impact projects in 2019 (total of $2.5m since 2018)
• Close to 44,000 colleagues completed human rights e-learning training
• Over 68,000 colleagues completed e-learning training on responsible information handling

Governance Achievements

• Established a confidential reporting channel for ethical concerns
• Implemented mandatory anti-bribery e-learning module and Gifts and Entertainment Policy

Climate Goals & Targets

Environmental Challenges

• Water stress impacting over 40% of the global population and anticipated to rise
• Managing responsible business in a largely third-party owned hotel supply chain

Mitigation Strategies

• Refreshed water risk mapping encompassing the entire global estate
• IHG Green Supplier Scorecard to assess environmental credentials of prospective suppliers
• Centralized procurement programs (IHG® Marketplace and IHG Mall) in some regions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• IHG Green Supplier Scorecard

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, DJSI, SASB, TCFD

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA) for environmental data (ISO14064 – 3:2006)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Community Impact
• People (Employees)
• Responsible Procurement

Environmental Achievements

• Reduced absolute carbon emissions from all IHG hotels globally by 23.6%
• Reduced water consumption by 28.8%
• Launched two new water stewardship projects in Australia and China
• Achieved BREEAM In-Use certification for 12 UK managed-leased properties

Social Achievements

• Improved the employability of 31,889 people through the IHG Academy
• Donated more than $3.4 million to community impact projects
• Provided accommodation for frontline workers and vulnerable individuals in hundreds of hotels
• Launched new employee resource groups (ERGs) to support employees
• Increased female representation in senior leadership to 38%
• Increased percentage of females in General Manager and Operations roles to 25%

Governance Achievements

• Updated Supplier Code of Conduct
• Launched a new colleague share plan
• Completed a qualitative climate risk assessment and scenario planning aligned with TCFD recommendations
• Established an internal TCFD Steering Group

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic significantly impacted hotel occupancy and operations, hindering progress on some targets
• Supply chain disruptions due to the pandemic
• Increased waste due to enhanced hygiene measures
• Challenges in achieving water stewardship goals in water-stressed areas

Mitigation Strategies

• Provided financial support and fee relief packages to hotel owners
• Implemented enhanced cleaning standards and IHG Way of Clean program
• Launched IHG Job Center to support displaced hotel colleagues
• Expanded employee assistance program
• Developed Responsible Sourcing Principles to support hotels in making responsible purchasing choices
• Collaborated with suppliers to find innovative sustainable solutions
• Worked with local stakeholders to develop water stewardship action plans

Supply Chain Management

Supplier Audits: Over 260 key suppliers underwent a desktop-based risk assessment questionnaire in 2020

Responsible Procurement

• Supplier Code of Conduct
• Responsible procurement criteria in RFP process
• IHG Green Supplier scorecard

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Water stress
• Wildfires
• Rising sea levels

Transition Risks

• Changes in stakeholder expectations
• Travel patterns
• Climate policy and regulation

Opportunities

• Transition to renewable energy
• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, GRI, Stakeholder Capitalism Metrics

Certifications: BREEAM In-Use

Third-party Assurance: Internal assurance process, supported by external assurance of environmental data

UN Sustainable Development Goals

• SDG 10
• SDG 17
• SDG 6
• SDG 11
• SDG 13

Initiatives contributing to reduced inequalities, partnerships for goals, clean water and sanitation, sustainable cities and communities, and climate action

Sustainable Products & Innovation

• Repurposed plastic bottles in bedding
• Biodegradable dry amenities
• Ozone-based cleaning technology

Awards & Recognition

• Listed as a constituent of the S&P World and European Dow Jones Sustainability Indices

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Sustainable Cities and Communities
• Reduced Inequalities
• Partnerships for the Goals
• Diversity & Inclusion
• Responsible Procurement
• Human Rights
• Community Engagement
• Ethical Business Practices

Environmental Achievements

• Reduced total Scope 1, 2, and 3 GHG emissions by 12.2% from the 2019 base year.
• Upgraded science-based target (SBT) to align with the Paris Agreement's 1.5°C target.
• Developed water stewardship action plans for six key hotels in water-stressed areas.

Social Achievements

• Launched IHG Skills Academy, a virtual learning platform for hospitality skills training.
• Supported 17 relief efforts globally.
• Collectively dedicated over 260,000 volunteering hours during Giving for Good month.
• Corporate employees completed 10,000 hours of conscious inclusion training.

Governance Achievements

• Continued membership in organizations driving positive change (e.g., Sustainable Hospitality Alliance, WTTC).
• Signed WTTC’s Women’s Initiative Declaration.
• Joined UN’s Race to Zero campaign.
• Undertook a group-wide bribery and corruption risk assessment.

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacted hotel operations and data reporting.
• Smaller global sample size for 2021 carbon footprint calculation due to COVID-19.
• Data gaps in energy and water consumption for some hotels.

Mitigation Strategies

• Used average consumption per room night to fill missing data points.
• Removed outlier data from samples.
• Developed automated utility data-entry solution with Schneider Electric.
• Developed Hotel Energy Reduction Opportunities (HERO) Toolkit (to be launched in 2022).

Supply Chain Management

Supplier Audits: 5,523 suppliers signed the Supplier Code by 31 December 2021

Responsible Procurement

• Supplier Code of Conduct (mandatory for new corporate suppliers)
• IHG Sustainable Supplier Questionnaire (mandatory for new suppliers)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: Internal assurance process, supported by external validation of environmental data by Apex Assurance

UN Sustainable Development Goals

• SDG 6
• SDG 11
• SDG 10
• SDG 17
• SDG 13

The report details how various initiatives contribute to these SDGs.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Renewable Energy
• Waste Reduction
• Water Conservation
• Community Engagement
• Employee Well-being
• Responsible Procurement
• Biodiversity

Environmental Achievements

• 3.4% reduction in Scope 1, 2, and 3 (FERA and franchise) total GHG emissions in 2022 compared to 2019 baseline; 5.8% decrease on an occupied room basis.
• Mandated implementation of LED lighting, high-efficiency showers, and faucet aerators in existing hotels by the end of 2025.

Social Achievements

• Launched a core training module on decarbonization and climate change for all colleagues in 2022.
• Donated $112,000 to disaster relief partners/NGOs in 2022.

Governance Achievements

• Established board-level oversight of climate-related issues through the Responsible Business Committee.
• Included an ESG metric (including decarbonization targets) in the Long Term Incentive Plan (LTIP) for Executive Directors.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (e.g., natural disasters impacting franchise royalty fees).
• Changing customer behavior and increased demand for green hotels.
• Meeting stakeholder expectations around IHG's role in the energy transition.
• Increased operating costs due to emerging climate regulations and carbon pricing mechanisms.

Mitigation Strategies

• Developed a climate transition plan with support from external experts.
• Upgraded science-based target to align with a 1.5°C scenario.
• Implemented energy conservation measures (ECMs) across hotels.
• Developed the Hotel Energy Reduction Opportunities (HERO) tool.
• Improved data collection and reporting methodology.
• Investing in IHG Green Engage™ system and upgrading to Green Engage 2.0.
• Donating to disaster relief efforts.
• Engaging with stakeholders and industry forums to drive standardization of sustainable hotel experiences.

Supply Chain Management

Supplier Audits: 92 suppliers participated in EcoVadis ESG risk assessment in 2022.

Responsible Procurement

• Supplier Code of Conduct (including environmental sustainability commitments).
• IHG Green Supplier scorecard.
• IHG Sustainable Supplier Questionnaire.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, droughts, wildfires).
• Sea level rise.
• Chronic heat waves.

Transition Risks

• Emerging regulations (carbon pricing, building regulations).
• Changing customer behavior (demand for green hotels).
• Reduction in aviation passenger numbers.
• Inability to meet stakeholder expectations.

Opportunities

• Reduced direct costs through energy efficiency improvements.
• Increased revenues from growing demand for green hotels.
• Enhanced brand reputation.

Reporting Standards

Frameworks Used: TCFD, Science Based Targets initiative, GHG Protocol, UN Sustainable Development Goals

Certifications: ISO 14064-3

Third-party Assurance: Third-party assurance process in place (limited assurance)

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 13 (Climate Action)

Initiatives contribute to these goals through emissions reductions, renewable energy adoption, and sustainable practices.

Sustainable Products & Innovation

• Energy-efficient hotel designs and construction.
• Use of Winnow Vision AI-enabled technology to reduce food waste.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Technology

Environmental Achievements

• Progressing towards Science-Based Target (SBT) through initiatives such as driving energy efficiency across existing hotels, facilitating access to renewable energy opportunities, and developing plans for new-build hotels that operate at low carbon.

Social Achievements

• Launching the new Meeting for Good sustainable meetings program.
• Facilitating access to leading third-party sustainability certification programs.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Growing public scrutiny, more media coverage, and stricter reporting rules leading to more companies reporting on their GHG emissions.
• Only 10% of consumers currently prioritize sustainability as a top driver of choice when making travel purchasing decisions (according to a BCG study).

Mitigation Strategies

• Collaborating to establish shared frameworks that enable guests to easily access and act on sustainability information (e.g., improving booking tools to display relevant sustainability details).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed