IHG Our Hotels RB2018 - InterContinental Hotels Group PLC

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Our hotelsOur hotels and colleagues are focused onbringing our great brands to life for millions ofguests all over the world. As well as creating theright experience, we’re committed to creatingsafe, inclusive environments for everyone, andtaking active steps to help our hotels measureand manage their impact on the environment.As a predominantly managed and franchisedbusiness, we work hand in hand with our hotelowners to make sustainable choices and takeopportunities to do things differently. Workingthis way is important to our colleagues, guests,partners and investors, and we take seriouslyissues such as climate change, water scarcity,utility consumption and waste management.IHG Responsible Business Report 201820

Our hotelsSafety and securityWe believe in the importance of providinga safe and secure environment for allcolleagues, guests and visitors.We take the safety and security of guests,colleagues and visitors to IHG brandedhotels very seriously. We manage safety andsecurity through a global managementsystem that includes Brand Safety Standardsand a suite of risk guidance, training andtoolkits that are available to all hotels.IHG employs a team of global risk specialiststo co-ordinate and monitor a safety andsecurity management system. This system isdesigned to provide an appropriate level ofcontrol to mitigate against a systematic issuewith safety and security in our managed andfranchised hotels.In a climate where the risk of data, creditcard and cybersecurity breaches are aserious threat, it is everyone’s responsibilityat IHG to safeguard information under ourcare, to follow legal requirements andcomply with IHG’s information securityand personal data policies, standardsand procedures.Our hotelsIHG hotels are encouraged and supported tobuild greater levels of risk maturity, beyondmandated levels of safety (Brand SafetyStandards), through access to a large rangeof guidance, tools and training resourcesavailable to all hotels via IHG’s Global Riskonline learning centre.Our team of global intelligence specialistsuse an intelligence-led, threat-based securityapproach to monitor the risks and threatsposed to our hotels and to set themitigations and policies to address these.Risks include terrorism, changing politicallandscapes, digital security and naturaldisasters. Our well-tested crisis managementsystem enables us to bring the necessaryskills and expertise together so that we canquickly direct resources and support exactlywhere it is needed worldwide.In 2018, we launched updated training tocolleagues on handling informationresponsibly, and we continue to enhanceour privacy programme to address evolvingprivacy requirements and best practice,including the EU General Data ProtectionRegulation. The Board and Audit Committeeregularly reviews information securitycontrols and the risk landscape, includingupdates on previous incidents.IHG Responsible Business Report 201821

Our hotelsDeveloping our hotel colleaguesWe provide everyone with the tools todevelop in their roles and feel supportedin their work.Our colleagues are the ones who bringour brands and purpose of True Hospitalityfor everyone to life, build relationshipswith guests and work with hotel ownersto drive performance.MyLearning, our learning platform, isavailable to all hotel colleagues in multiplelanguages and across digital platforms.It gives people the chance to track theirpersonal learning journey, and allowsmanagers to easily review progress.We also have a global online learningplatform for all hotel General Managers(GMs) called Fuse. This brings our network ofGMs together in an online social communityto share best practice, seek advice andcomplete professional developmentcourses. GMs can also access a rangeof other resources from onboardingcurriculums and learning plans to specific,flexible online learning modules.Our hotelsWe offer hotel colleagues True HospitalityService Skills training. Guests can expecta consistently great experience deliveredby colleagues trained in True Attitude,True Confidence, True Listening andTrue Responsiveness.General Manager Learning EventsEvery year, over 300 General Managersacross our EMEAA region attend a seriesof Learning Events, hosted by ourBusiness Unit Managing Directors andLearning & Development teams.The events are an opportunity for GeneralManagers to come together to learn andshare best practices, building on theircapability to maximise performance andbalance the needs and expectations ofmultiple stakeholders.Each year, a new cohort of hospitalitygraduates join our Future Leadersprogramme. Through a two-yearprogramme, we embed and developexceptional talent within IHG working acrossour Operations, Finance and RevenueManagement functions. On completion ofthe programme, the graduates take onmanagerial positions across IHG.IHG Responsible Business Report 201822

Our hotelsCarbon and energyAs a global business with hotels in more than100 countries, we believe our biggest contributiontowards cutting greenhouse gas emissionswill come from changing our own behaviour.Environmentalsustainability2018-2020 target6-7%Reduce carbon footprint peroccupied room.In 2018, we reduced our carbonfootprint by 2.2% per occupied room. For further progress in detail againstall of our 2018-2020 targets, pleasesee our Performance pages: 33 to 36.Between 2013 and 2017, we reduced ourcarbon footprint per occupied room by15% (against a 2012 baseline), achievingour five-year target. As part of our 20182020 targets, we are committed to furtherreducing the carbon per occupied roomby 6-7%. To help us achieve this, we setour hotels individual carbon reductiontargets, and we support them with bestpractice guidance and practical solutionsto help ensure we succeed together.Utility costs are the second biggestexpenses to our hotels and lighting accountsfor up to 40% of a hotel’s total energyconsumption. Installing LED lightingsolutions is a low-cost, high-impact actionfor our hotels to action through the IHGGreen Engage system.equipment and cleaning products are thehighest carbon emitting categories in ouroperational supply chain. To further buildon this, in 2019 we will work closely withkey emitters to contribute to a sharedpositive impact.Dow Jones Sustainability IndexThe Dow Jones Sustainability Index,in collaboration with RobecoSam,highlights businesses that showoutstanding performance in tacklingthe biggest social, environmental andeconomic issues in their industries. In2018, IHG was named industry leaderfor a second consecutive year inRobecoSam’s Resorts & Cruise Linesindustry group, which includes hotels,resorts and cruise lines, and the highestscore in the industry on its CorporateSustainability Assessment. IHG rankedfirst for several criteria, includingenvironmental criteria, human rightsand stakeholder engagement.The results of the survey are publishedon the Bloomberg professionalplatform, making them accessible toinvestors and other stakeholders.Our hotelsWe believe the best approach to reducingand managing carbon emissions comesfrom working with all our hotels to make adifference, rather than by purchasing carbonoffsets.InterContinental MadridThe Green Team at InterContinental Madrid have been on a journey toimplement a number of innovativecarbon and energy initiatives across thehotel aimed at reducing their utilitycosts and consumption. From replacingtheir boilers, upgrading to new energyefficient air-conditioning refrigerationunits to installing LED lighting acrossthe hotel, the team and their ownershave reduced their carbon footprintby over 60%.We’re proud of the engagement withour hotels in this important area, and wecontinue to work to promote carbonreduction with all our hotels globally.To further reduce our environmentalfootprint, we are working to understand thecarbon emissions in our supply chain. In2018, we commissioned stage one of ouragenda, which identified that food andbeverage, outside services, consultancy,IHG Responsible Business Report 201823

Our hotelsWaterWe recognise the risks our business and local communitiesface from water scarcity and pollution, and are taking stepsto ensure this precious resource is managed sustainably.Environmentalsustainability2018-2020 target6 projectsLaunch two water stewardship projectsper year.In 2018, we launched water stewardshipprojects in both London and Delhi. For further progress in detail againstall of our 2018-2020 targets, pleasesee our Performance pages: 33 to 36.As part of our commitment to waterstewardship, we completed the hospitalityindustry’s most comprehensive water riskassessment in 2016. Encompassing ourentire global estate of open and pipelinehotels, this means we can identify risksrelated to both water quantity and quality,and put in place tailored water stewardshipaction plans to apply best practicetechniques for each of our hotels,particularly those in water-stressed areas.The IHG Green Engage system provides ourhotels with a comprehensive guide towater-saving technologies and processes,recommending nearly 30 Green Solutionsdevoted solely to water. Typically, morethan 40% of the water used in a hotel isfrom showers, toilets, taps and kitchens, butinstalling low-flow taps, toilets and showerheads, helps to reduce water consumption.Building on this pilot, we want to launch sixmore stewardship projects by 2020. The firstof these was in 2018 in London, UK, wherewe partnered with the Rivers Trust, aUK-based non-governmental organisation.London is included in the world’s top 10most likely cities to run out of water andaccording to the Greater London Authority,the city is pushing close to capacity and islikely to have supply problems by 2025 andserious shortages by 2040. The Londonproject has provided us with vital learningsand helps reduce the exposure of our hotelsto water related risks. We engaged ourcolleagues in the programme throughtailored education and the opportunity tovolunteer and help to clean local waterways.Following analysis of our risk assessmentand the ITP’s water risk prioritisation index,we launched our second project in Delhi ,India – the world’s second most populouscity, where water shortages are becominga regular challenge and the quality of wateris poor and unfit for human consumption.In conjunction with seven IHG brandedhotels, we have partnered with the Centerfor International Projects Trust (CIPT), anon-profit organisation based in Delhiand an affiliate of Columbia Water Center,and the Alliance for Water Stewardship, toidentify key issues where we can developand implement small scale innovationsthat can be replicated in other waterstressed locations.Water stewardship toolFollowing the success of our first waterstewardship project in London, and inpartnership with the Rivers Trust, wehave developed a tool to enable all ofour hotels across the UK to replicate thewater stewardship activities carried outin the London project at a local levelwith local trusts.Our hotelsWater stress impacts over 40% of the globalpopulation and is anticipated to rise further,according to the UN. More than 1.7 billionof the world’s population currently live inriver basins, where water use exceeds itsrecharge, and the problem will get worseas the population grows.Inn Chengdu – Century City East Tower by12%, as a result of actions taken as part ofthe water stewardship programme.The localised nature of water-stress meanswe need to embed initiatives at a locallevel, which led to the launch of our pilotproject in Chengdu in 2017. Four hotelsdeveloped tailored water implementationplans and went beyond water efficiency,collaborating with environmental NGOChengdu Urban Rivers Association (CURA),and members of the local community toprotect the freshwater resources ofChengdu. In 2018, these hotels continuedtheir water stewardship journey and areseeing impressive water reductions. TheInterContinental Century City Chengdureduced its water use by 21% and HolidayIHG Responsible Business Report 201824

Our hotelsWasteWe have a responsibility to minimisewaste across all our hotels, preservingour environment for future generations.The IHG Green Engage system providesguidance to IHG branded hotels on howto manage their waste and through the toolwe encourage hotels to create a wastemanagement plan that sets out how they aregoing to handle, store and dispose of waste,both on and off-site.We have begun to map out the biggest areasof waste within our operations, identifyingways to reduce, re-use and recycle to ensurewe are diverting as much waste from landfillas possible.Working with Clean the World in theAmericas and Soap for Hope in Asia,increasingly our hotels are choosing torecycle soap and guest room amenities, sothat new soap bars can be distributed tocommunities in the developing world,helping them reduce the risk of disease.Plastic strawsIn 2018, IHG committed to remove singleuse plastic straws from our global estate bythe end of 2019. As a global brand standard,we will be eliminating annually an average of50 million straws from our hotels. Laidend-to-end, the straws we remove wouldspan some 10,500 kilometres – stretchingfrom New York to Tokyo.Renovation Donation InitiativeAt a time when many IHG brandedhotels are introducing new designconcepts to meet evolving guestexpectations, we launched theRenovation Donation Initiative in 2018,in partnership with the IHG OwnersAssociation.Our hotelsAcross 11 IHG branded hotels, we havepartnered with Winnow to trial theirinnovative Winnow System. Using theirsmart meter technology, it makes it quickand easy to record exactly what and howmuch food is being wasted in our kitchens.Providing both real-time and regularreporting, our kitchen colleagues can easilyidentify how much produce they aredisposing of and what the cost is of doingso. These vital insights have allowed ourcolleagues to make improvements throughcareful menu planning in their hotels and asa result have seen a reduction on average of20% in their food wastage.In our Americas region, we are introducingbulk-size bathroom amenities across ourHoliday Inn Express , Staybridge Suites andCandlewood Suites brands. Our EVEN Hotels and avid hotels brands haveincluded bulk-size amenities since they werelaunched, and Kimpton Hotels &Restaurants began rolling them out in 2017.IHG branded hotels in the US andCanada undergoing renovations orproperty improvements can donatefurniture, fixings and equipment toNGOs. The shared commitment willreduce the amount of products andmaterials going to landfill, whilstsupporting the work of our charity andNGO partners in the local communities,including workforce development andhospitality skills training programmes.Piloted in 2018, the programme will rollout in 2019.IHG Responsible Business Report 201825

Our hotelsSustainable hotel solutionsWe encourage our hotels to use sustainableproducts and to source goods and serviceslocally wherever possible.In line with our sustainability solutions, wewant to futureproof our supply chain byassessing the products we use the mostthroughout our business. This work includessetting out a strategy to reduce our wasteimpact, whilst looking for the sustainablesolutions of the future which have a smallerenvironmental footprint.Filtered waterWe have been rolling out an initiative to allowour hotels to remove plastic water bottlesfrom meetings and events, in favour ofreusable glass bottles. In the summer of2018 in the UK and Ireland, we piloted theEcoPure Waters’ filtered water system toprovide an alternative solution to plasticbottles. Of the 27 hotels that took part in thepilot, the indication is that each month theyare filling 1,400 750ml water bottles inmeeting and catering areas. We will beencouraging more of our hotel estate toadopt the system in future.By 2020, we are committed to 90% of ourtop seafood products being sustainablysourced. Included in this commitment is theprohibition of shark fin being served in ourhotel bars and restaurants. We have alsocommitted to sourcing 100% cage-free eggsthroughout our US, Canadian and Europeanhotels by no later than 2022, and across allour hotels globally by 2025.Voco sustainable beddingAs part of our commitment toincreasing our spend with greensuppliers, in 2018 we started to sourcebedding for our voco hotels fromTrendsetter, a supplier which has acommitment towards the environmentand ethical responsibility. They providefilled goods such as pillows and duvetsthat have 100% recycled plastic filling.As a voco brand standard in the launchof our first three voco hotels, we havealready diverted more than 140,000plastic bottles from landfill and thefactory’s energy usage is from 100%certified renewable sources.IHG Responsible Business Report 2018Our hotelsCarpetsWe have been working with our supplierEge carpets to trial carpets using a yarnproduced from recycled plastic bottles andfishing nets. In 2018, we ran a trial of thecarpets in eight of our Europe-based hotels,using four tonnes of 100% recycled yarn andwe hope to increase the offering to moreproperties in 2019.Food and beverageOur restaurants and bars are an integralpart of the service and experience we offerto our guests. With a wide variety of diningoptions available across our hotel brands,we are focused on sourcing our producesustainably and ethically, meeting ourguests’ expectations.26

Our hotelsIHG Green Engage systemProviding our hotels with the tools they need to operatein environmentally-friendly ways through our Group-wide,online sustainability platform.IHG Green Engage provides our hotels withmore than 200 Green Solutions, helpingthem manage and report their use of energy,carbon, water and waste, and minimisetheir overall utility costs and environmentalimpact. We make it a global standard forall hotels to utilise the platform and werecognise their progress through fourlevels of certification.The system works to: Provide hotels with action plans and targetsto reduce their impact on the environment. Use data to provide customisedenvironmental performance benchmarking,taking into account hotel location, brandand outfitting. Feed a hotel’s IHG Green Engage systemcertification status to our booking channelsto allow guests to make more informeddecisions about where they stay.To ensure the quality of participation in theIHG Green Engage system, hotels that reachany level of certification undergo a thirdparty assurance process, administered byDeloitte. In addition, our environmentalperformance data is independentlyverified through Lloyd’s Register QualityAssurance (LRQA), in accordance withISO14064 – 3:2006.Supporting travel buyersWe know that sustainability is importantto our corporate clients. Every year, moretravel buyers ask for information about theenvironmental footprint of our hotels, so thatthey can make more sustainable choices intheir travel procurement. In 2018, almost60% of our business accounts asked forthis information, such as carbon footprintand waste diversion rates, using the GlobalBusiness Travel Association (GBTA) corporateresponsibility module.We have continually enhanced our ability toinform travel buyers. The IHG Green Engagesystem automatically reports this informationabout each of our hotels to corporate clientsthat ask for it. We report our environmentalperformance data to EcoVardis and the CDPSupply Chain programme for Carbon andwater. We also report to the RobecoSAMof which we are the industry leader onthe Dow Jones Sustainability Index.A Greener StayGuests staying in our hotels for morethan one night can elect to participatein A Greener Stay, a programme whereguests can opt out of housekeepingservices in return for IHG RewardsClub points. As a result of this initiative,guests are encouraged to make moreenvironmentally conscious decisionswhen travelling. The programme helpshotels to take action towards reducingtheir environmental footprint with lesswater and energy needed and areduction in waste.IHG Responsible Business Report 2018Our hotels Set and track property-specific reductiongoals for carbon, energy, water and waste,and demonstrate potential cost savingsassociated with a plan.We work with third parties to align the IHGGreen Engage system to their requirements,and through the platform, and many of ourhotels pursue additional third-partycertification, including TripAdvisor’sGreenLeaders, Green Globe andGreen Key Global.27

franchised hotels. IHG hotels are encouraged and supported to build greater levels of risk maturity, beyond mandated levels of safety (Brand Safety Standards), through access to a large range of guidance, tools and training resources available to all hotels via IHG's Global Risk online learning centre. Our team of global intelligence specialists

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