Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions by 11% on a like-for-like basis between 2015 and 2017 (ahead of 10% target by 2020).

Social Achievements

• Introduced internship programs in North America and Europe.
• Supported various local charities and community projects (e.g., fundraising for Rays of Sunshine, art therapy sessions at Red Cross Home for the Disabled, blood donation drives).

Governance Achievements

• Refreshed the Board of Directors during the year.
• No material fines or penalties for non-compliance with environmental, human rights, labor standards, anti-corruption, or taxation laws.

Climate Goals & Targets

Environmental Challenges

• Political instability in Korea.
• Growth in popularity of online travel agents and alternative lodging options.
• Rising costs, especially in London due to Brexit and minimum wage legislation.
• Strong union operating environment and union-driven wage increases in New York.
• Growth in local hotel room inventory constraining ability to increase room rates in Singapore.
• Concerns about Brexit affecting UK hotels, particularly in London.

Mitigation Strategies

• Completed a review of the senior executive management structure and created new leadership positions.
• Focused on repositioning key hotels (e.g., Millennium Hotel London Mayfair).
• Developing a strategy to restore profitability to New York business.
• Reviewing and streamlining corporate processes for cost control.
• Developing brand presence in China and the business travel sector.
• Implementing key changes to its senior management structure and compensation programs to enhance employee engagement and performance.
• Conducting a risk assessment around the impact of Brexit and refining scenario, contingency, and staffing plans.

Supply Chain Management

Responsible Procurement

• Stringent supplier selection process; review of environmental policies, sustainable transport plans; purchasing products from local renewable and ethically sound sources; working with suppliers to reduce packaging and emissions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP Climate Change Programme

Certifications: OHSAS 18001 (UK region)

Third-party Assurance: Jacobs U.K. Limited

Awards & Recognition

• Green Mark awards (Singapore hotels); A- Leadership score in CDP's climate change program (2017).

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Community

Environmental Achievements

• Reduced energy consumption by 36% (absolute) and 31% (per room) compared to 2019.
• Reduced carbon equivalent emissions associated with energy use by 35% (absolute) and 29% (per room) compared to 2019.
• Reduced total waste (landfill, recycled, composted, incinerated, and other waste) by 58% (absolute) and 55% (per room) compared to 2019.
• Reduced waste disposal to landfill by 63% (absolute) and 60% (per room) compared to 2019.
• Reduced water consumption by 33% (absolute) and 27% (per room) compared to 2019.

Social Achievements

• Launched "We Clean, We Care, We Welcome" campaign to enhance health and safety measures.
• Implemented internship and apprenticeship programs in Europe.
• Over 80% of apprenticeships completed during UK lockdown graded at Distinction level.
• Maintained open communication with employees during the pandemic.
• Engaged in various community support initiatives (detailed in report).

Governance Achievements

• No material fines or penalties received for non-compliance in 2020.
• No political donations made in 2020.
• Continued global online compliance training on anti-bribery, data protection, competition, and modern slavery.
• Updated anti-bribery policy in line with the UK Bribery Act 2010.
• Maintained a dedicated whistleblowing hotline.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted operations, workforce, supply chains, and charitable services.
• Reduction of the Group’s workforce by more than 45%.

Mitigation Strategies

• Improved communications to support remote work and employee well-being.
• Supported healthcare system and frontline workers.
• Lengthy consultation processes and engagement with trade unions and government regulators during workforce reduction.

Supply Chain Management

Supplier Audits: Processes established in Europe to assess new suppliers based on environmental, labor, anti-bribery, and human rights practices.

Responsible Procurement

• Due diligence on suppliers to address social and environmental issues.
• Strict selection process considering environmental policies, sustainable transport plans, and reduction of packaging.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol Corporate Accounting and Reporting Standard

Certifications: ISO 45001 (UK region)

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Governance
• People
• Environment
• Community

Environmental Achievements

• Decreased overall energy consumption by 5% compared to 2020.
• Decreased energy intensity (per hotel room) by 3% compared to 2020.
• Decreased carbon equivalent emissions associated with energy use by 2%.
• Decreased total tonnes of waste (landfill, recycled, composted, incinerated and other waste) by 24% on an absolute basis and by 23% on a per room basis compared to 2020.
• Decreased disposal of waste to landfill by 13% on an absolute basis and by 11% on a per room basis compared to 2020.
• Introduced glass bottles for drinking water in guest rooms and function rooms, eliminating plastic water bottles.

Social Achievements

• Launched “We Clean, We Care, We Welcome” campaign to enhance health and safety measures.
• Operated internship and apprenticeship programs in the European region.
• Maintained a human rights policy aligned with ILO and UN Guiding Principles.
• Updated standard contractual terms to require supplier compliance with Modern Slavery Act 2015.
• Supported local communities through various initiatives (blood donation clinics, food donation drives, COVID-19 vaccination center).

Governance Achievements

• No material fines or penalties received for non-compliance in 2021.
• No political donations made in 2021.
• Global online compliance training platform delivered training on anti-bribery, data protection, competition, and modern slavery.
• Conducting a top-down review of its compliance program and plans to appoint a new group compliance manager in 2022.
• Implemented anti-bribery policy compliant with the UK Bribery Act 2010.
• Maintained a dedicated whistleblowing hotline.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on hotel operations.
• Reducing waste and single-use plastics.
• Ensuring robust due diligence on suppliers.

Mitigation Strategies

• Implemented water conservation strategies (investing in water-efficient technologies, process improvements, and reuse/recycling).
• Developed best practice guidelines for energy and water conservation.
• Phased out disposable plastic straws, stirrers, water cups, and bin liners.
• Established processes to assess new suppliers based on environmental, labor, anti-bribery, and human rights practices.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Due diligence on suppliers to understand and address social or environmental issues.
• Strict selection process for suppliers, reviewing information on waste reduction, environmental policies, and sustainable transport plans.
• Assessment of new suppliers based on environmental, labor, anti-bribery, and human rights practices in Europe.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GHG Protocol

Certifications: Null

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy efficiency
• Employee well-being
• Health and safety
• Corporate responsibility
• Sustainable sourcing

Environmental Achievements

• Continued efforts to reduce energy consumption across its UK estate, including installation of new boilers, ongoing LED installation, upgrading of Air Handling Units and pumps.
• Reduced gross tCO2e from 11,113 tCO2e in 2021 to 17,171.8 tCO2e in 2022 (Intensity ratio: gross tCO2e / room 4.2 tCO2e (2021: 2.6 tCO2e))

Social Achievements

• Maintained a focus on employee well-being and engagement through training, internal communications, and regular meetings.
• Commitment to equal opportunity employment and diversity and inclusion.

Governance Achievements

• Directors understand their duties under Section 172 of the Companies Act 2006 and act in good faith to promote the success of the Group.
• Proactive risk management approach aligned with global best practices (ISO 31000:2018, ISO 27001, PCI DSS, OSHA standards, GDPR, UK Bribery Act 2010).

Climate Goals & Targets

Environmental Challenges

• Increasing competition in the hotel industry from consolidation and alternative business models (Airbnb).
• Online travel agencies taking market share and influencing consumer preference.
• Fluctuations in currency exchange rates and interest rates.
• Health and safety risks and regulatory requirements.
• IT infrastructure risks, including cyberattacks.

Mitigation Strategies

• Aggressive management of distribution channel partners to optimize revenue and minimize commission costs.
• Maintaining a flexible operating structure to adapt to changing trends.
• Managing foreign exchange risk through natural hedging and a diversified set of lenders.
• Implementing a health, safety, and environmental management system with policies, procedures, audits, and training.
• Conducting periodic security and penetration testing, regularly updating software, and developing disaster recovery plans.

Supply Chain Management

Responsible Procurement

• Negotiation of discounts with suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Government’s Streamlined Energy and Carbon Reporting (SECR)