sustainabilitY RepoRt 2008 Rezidor Sustainability Report

www.rezidor.com 2008 rezIdor JoInS GLOBAL COMPACT …page 3

01 Introduction Message from the President and CEO

02 Key Highlights 2008 Responsible Business performance indicators, 2008 at a glance

04 About the Report Report Content, Scope and Boundaries of the Report, Periodicity, Accounting Principles and Veri cation

06 Our Sustainability Strategy De nition of Sustainable Development and Responsible Business, Vision and Strategy

07 Our Sustainability Impact Prioritising material topics, Adjusting to climate change and reducing resource consumption, Rezidor as a responsible employer, A pro-active approach to Safety and Security, Managing sustainability in our supply chain, Economic In uence and Employment, Our Licence to operate in the Community, Human Rights and Corruption

11 The Responsible Business Programme Responsible Business Policy and stakeholder engagement, Management and Organisation, Governance

14 Economic Results Responsible Business contribution to cost containment and driving revenue, Direct costs of Responsible Business, Our Economic Impacts

16 Environmental Results Material Use, Energy Use, Water Use , Emissions, Land Use and Biodiversity, Fines and Incidents GREEN 20 Social Results Labour Practices and Decent Work, Human Rights and Corruption, People is the new black development and training, Health, work-related accidents and security, …page 1 Business Ethics, Policy development and lobbying, Product Responsibility, Fines and Incidents We are living in a world which increasingly views green initiatives as a crucial foundation for business. Not only in terms of being a responsible 24 Summary Of Progress business, but also as a means of creating a healthy bottom-line; green is indeed the new black. 28 GRI Standard Disclosures Table 30 Contact Experience meetings on the green side.

We are committed to taking responsibility:

The Rezidor Hotel Group has an award-winning comprehensive Responsible Business programme in place across its hotels in Europe, the Middle East and Africa since 2001. The programme covers issues such as the health and well-being of guests and employees; resource effi ciency relating to energy, water and waste; community outreach and charity; and can contribute to making your meeting green.

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radissonblu.comII Rezidor Sustainability Report | 2008

98033 BRUZT Ad MICE II UK (210x273).indd 1 17/03/09 10:42:43 messagefrom the President and CEO

2008 has been an eventful year for The Rezidor Hotel Group During 2008, we launched an innovative new Responsible from a sustainability perspective. Though the first part of the Business training programme, tripled the number of eco- year was characterised by optimism and strong pressures labelled hotels and launched our Code of Business Ethics. from corporate clients and guests on the hospitality sector to More recently we joined the United Nations’ Global Compact step up Responsible Business efforts – the economic down- and we look forward to contributing to and learning from turn led to negative growth in occupancy throughout Europe the wide spectrum of specialised workstreams, management and an increased emphasis on efficiency and cost contain- tools and resources and to sharing best and emerging prac- ment. tices with other participants. Our commitment to social, environmental and ethical We have no doubt that the huge strides we made during business conduct will by no means be impacted by the cur- 2008 will help us remain strong in face of whatever 2009 rent downturn. A strong focus on sustainability is inherent may bring. in our business model and the very core of our vision to take a leadership role in this area. Rezidor was one of the first hotel companies in the world to have a dedicated Responsible Business programme and eight years on our performance is still improving. We are living in a world which increasingly views green initiatives as a crucial foundation for business. Not only in terms of being a responsible business, but also as Kurt Ritter, a means of creating a healthy bottom-line; green is indeed President and CEO, the new black. The Rezidor Hotel Group

2008 | Rezidor Sustainability Report 1

AT2008 A GLANCE

April from Rezidor hotels and corporate to become energetic, practical and Rezidor greens events office participated in the sustainability interactive sessions which encourages BS 8901, the new British Standard team during the event. On the basis of our employees to be engaged, proac- on Sustainable Event Management, this experience, we have also tested our tive and responsible. The training has which is likely to become an interna- own responsible meeting and events two components: Living Responsible tional standard, was conceived in 2007. concept among selected hotels. Dur- Business is a mandatory training for One of its key objectives is to assist the ing 2009, we will continue to refine all staff members which aims to inspire London 2012 Olympic team in ensur- this concept further and roll it out in employees to make a difference both at ing their event will be as sustainable selected regions. home and at work – and provides infor- as possible. The Rezidor Hotel Group mation and practical tips on how they sponsored the pilot of this new stan- July can do that. It lasts 2.5 hours. Leading dard at The European Meetings and Living and Leading Responsible Business is 1.5 hours long Events Conference at ExCel in London Responsible Business and targets Heads of Departments in spring 2008 which was attended by In July 2008, Rezidor launched a and General Managers to ensure they up to 750 delegates. As well as contrib- brand new suite of Responsible Busi- set the right example on a daily basis. uting financially to the sustainability ness training. Former training mod- It encourages them to make maxi- aspects of the conference, volunteers ules were revisited and fully updated mum use of the tools available so they

Responsible Business performance indicators

Sustainability-related performance indicators 2008 2007 2006 Energy/m2 (kWh) Radisson Blu 292 308 285 Energy/m2 (kWh) Park Inn 308 350 297 Water/ Guest Night (litres) Radisson Blu 461 475 468 Water/ Guest Night (litres) Park Inn 375 403 389 Waste/ Guest Night (kg) Radisson Blu 1.70 1.74 1.69 Waste/ Guest Night (kg) Park Inn 1.77 2.16 2.24 Climate Analysis Employee Satisfaction score 85.1 85.1 85.5 Average 3T Monitor Safety and Security self-audit score (goal 90) 92.3 91.4 N/A

2 Rezidor Sustainability Report | 2008 can respond to Responsible Business East and Africa organised social and ness and development working hand- demands from stakeholders as diverse environmental activities – engaging in-hand, and also demonstrated how as guests, employees, property owners with employees, guests and the local small ideas can make big differences in and the local community. community – raising awareness for our lives. Responsible Business and raising f unds July to support Rezidor’s corporate charity December Code of Business Ethics organisation, World Childhood Foun- Rezidor signs up to the During the summer, Rezidor finalised dation, and other local causes. This Global Compact and distributed the company’s Code of year’s theme was actions that are good The Rezidor Hotel Group was one of Business Ethics which covers employee for you and good for the planet, and the first international hotel groups to rights, conflict of interest, shareholder hotels arranged activities such as Car join the United Nations’ Global Com- influence, transparency, purchasing Free Days, non-smoking campaigns, pact – the world’s largest corporate policies, communication, infringe- tree-planting and offering healthy and citizenship initiative. This voluntary ments and much more. This was organic options in staff canteens and strategic policy initiative is for busi- integrated into the company’s finan- restaurants. nesses that are committed to aligning cial handbook and distributed to all their operations and strategies with ten employees as part of the WHY? Radis- September universally accepted principles in the 2008 son SAS and WHY? Park Inn books Rezidor does television areas of human rights, labour, environ- which describe our brand essence and During September 2008, Radisson ment and anti-corruption. Our long- AT A GLANCE what we aspire to. Our Code of Busi- SAS Hotel, Edinburgh, and Radisson standing Responsible Business pro- ness Ethics describes how we want to SAS Resort, El Quseir, were featured gramme means we are well-prepared be perceived as a company – it’s simply on an episode of the “Responsible Busi- to contribute to this worthy initiative our way of doing business (see page 23 ness” television series produced in and we look forward to learning from for more information). partnership with the UN Global Com- our fellow participants so that we might pact and the United Nations Environ- improve even further. September ment Programme. The series looked at Responsible Business some of the most pressing global chal- Action Month focusses lenges including the water crisis, cli- on health and wellbeing mate change and extreme poverty and This year The Rezidor Hotel Group reached more than 270 million homes. celebrated its 5th Responsible Busi- It highlighted companies around the ness Action Month. In September, over world with outstanding corporate 160 hotels across Europe, the Middle responsibility initiatives, showing busi-

Rezidor’s eco-labelled hotels – approaching the 100 mark At The Rezidor Hotel Group we value third ly recognised label was available in Germany, it party certification of our Responsible Business was decided that all Radisson Blu hotels would activities – as this ensures the communication seek to comply with the ISO 14001 standard about our achievements is fully transparent and – one of the best known and respected envi- credible. We therefore decided to aim high in ronmental management standards with global this area in 2008, with the ambitious objective coverage. of tripling the number of externally certified eco- Overall, our results have been even better labelled hotels. than expected! In total, 65 hotels have now Our initial focus has been on boosting the achieved the above certifications – which is an number of eco-labels in 5 key regions, repre- outstanding achievement when compared with senting important markets for Rezidor, and with the starting point of 17 eco-labelled properties at additionally well-recognised and respected the beginning of 2008. eco-labelling schemes available. In the UK, the But this result looks even better when we take selected eco-label was the Green Tourism Busi- into account the numerous remaining properties ness Scheme, in Ireland the Green Hospitality that have already submitted their eco-labelling Award and in France, Tunisia and the Nether- applications and are on track to achieve their cer- lands the Green Key. All Rezidor properties in tification early this year. Together with additional the Nordic region including Norway, Sweden, labels and standards from other regions, this Denmark and Finland aim to achieve the very will bring us to around 100 certified hotels – well ambitious Nordic Swan label. Since no common - over a third of the total number in operation.

2008 | Rezidor Sustainability Report 3 About the Report

The purpose of this Sustainability Report, in combination with the Rezidor 2008 Annual Report, is to help shareholders and other key stakeholders to value, assess and understand the operations of The Rezidor Hotel Group. We have an ongoing dialogue with our stakeholders and we report what we consider to be of interest to those we deem key: shareholders, employees, customers, property owners, suppliers, authorities, environment and community & society. Thus the Rezidor 2008 Sustainability Report describes the most material and relevant sustainability aspects of our operations.

Report Content are the most widely accepted and used pany has full control over data collec- This Sustainability Report is in line standard for sustainability reporting tion and information quality. Down- with the Global Reporting Initiative’s and are applied by more than 1,500 stream impacts are generally excluded (GRI) G3 guidelines, self-declaring C companies around the world. – as we do not at present dispose of level. This allows us to measure perfor- reliable measurement tools to reflect mance, achieve transparency and facil- Scope and Boundaries these. The numerical data stated in itate international comparability with of the Report this report refers to the year 2008, regards to our sustainability perfor- Rezidor has limited the reporting unless otherwise stated. The Environ- mance and reporting. These guidelines boundaries to areas in which the com- mental and Status Report data, col-

4 Rezidor Sustainability Report | 2008 About the Report

lected by the management team from the Responsible Business programme aged and leased hotels. The response each hotel, forms the foundation for is encouraged at all hotels and cor- rate remains high. In 2008, 100% of Rezidor’s sustainability reporting. The porate offices, including franchised hotels responded to the Responsible reporting is based on year-end figures, properties. Currently around one third Business Status Report and reported meaning that all hotels in operation by of franchised hotels participate in the their environmental performance. December 31st were asked to report. Responsible Business programme and Moreover, 77% of hotels have a Respon- Consequently, some hotels report full- report on the progress of their perfor- sible Business specific Action Plan year data, and others that opened dur- mance. in place for 2008 and we expect this ing the year, only report for the months Due to the at present small number number to rise as hotels begin to use they were in operation. Hotels that dis- of hotels operated under the Regent the new Responsible Business Manual continued operations with the Group brand (3 in total), data from these launched in February 2009. These during the year are not included in the hotels is limited, while the focus is on Responsible Business Action Plans are year-end data. During 2008, 24 hotels Radisson Blu and Park Inn. As there is updated yearly. For 2009, 86% of the came into operation under managed cur rently only one C ountr y Inn & Suites hotels have also incorporated Respon- and leased agreements, as well as 9 hotel in operation, this hotel’s data has sible Business related targets into their hotels under franchised agreements. been incorporated into the Park Inn overall Business Plan. Meanwhile, no managed or leased aggregated results. As no Hotel Mis- About hotels left the system in 2008. soni was yet in operation in 2008, this Periodicity Due to the fact that the reporting brand is not considered here. Rezidor’s Sustainability Reports are base changes from year to year, we use published annually in conjunction indicators which are based on surface Routines for Monitoring with the Annual Report. The last Rezi- area (m2) or occupancy (guest nights). Hotels are asked to report their Respon- dor Annual & Sustainability Report for the Report Performance in relation to the surface sible Business performance data in two 2007 was published in March 2008. area or level of occupancy are the most different reports. The overall com- relevant measures, as these are the pliance with, and progress of, the 15 Accounting Principles dominating factors affecting energy objectives of the Responsible Business and Verification use, and water consumption as well programme (see page 24) is assessed The financial data presented in the as waste generation respectively, and through the annual Responsible Busi- Sustainability Report are derived from allow us to report our performance in a ness Status Report questionnaire. The audited annual accounts. In all exter- fair and transparent manner from year Status Report is an internet-based nal reporting, currencies are converted to year. database managed by an external con- into Euro. Accounting principles for The scope of this report covers Rezi- sultant (also available through Rezi- financial reporting, as well as the dor as a group, providing examples dor’s intranet), and contains 52 ques- conversion rates used, are stated in from operations regardless of brand. tions touching on all relevant areas of Rezidor’s 2008 Annual Report. The This means that the consolidated per- the Responsible Business programme. Sustainability Report has not been formance data includes managed and The questionnaire used is inspired by independently reviewed by auditors or leased hotels in operation for the fol- the UN Global Compact and the Global any other third party. lowing brands: Reporting Initiative Guidelines. Radisson Blu – 131 hotels In 2008, environmental perfor- (30,723 rooms) mance data (e.g. energy, water and Park Inn – 54 hotels (10,216 rooms) waste) was collected on a quarterly Country Inn – 1 hotel (93 rooms) basis through an Excel based data- Facts about data collection: Regent – 3 hotels (554 rooms) base linked to Rezidor’s comprehen- • Conversion factors for different energy sources and emission factors for calculating Total – 189 hotels (41,586 rooms) sive accounting and financial system. and reporting greenhouse gas emissions are The data requested has expanded based on the WBCSD Greenhouse Gas Pro- Hotels under franchise agreements, slightly since the launch in 2002, while tocol and guidelines from the Carbon Trust and the Edinburgh Centre for Carbon Man- which currently number 68 hotels the reporting periods have also been agement. (12,980 rooms), are not included in adjusted over the years. From January • The Responsible Business related perfor- the consolidated performance data. 2009 we request environmental data mance data is checked internally before data consolidation, with follow ups via e-mail and Neither are sales offices and staff func- on a monthly basis. phone calls to hotels that have reported no- tions. It should, however, be noted that Reporting is mandatory for man- ticeably high or low figures.

2008 | Rezidor Sustainability Report 5 OUR SUSTAINABILITY STRATEGY Definition of SustainableD evelopment and touch upon the work routines of all employees. More- and Responsible Business over, the programme must be continuously updated and The Brundtland Commission defined sustainable develop- developed, and our work with Responsible Business must be ment as development that ”meets the needs of the present measured so as to spur continuous improvements. without compromising the ability of future generations to Rezidor’s Responsible Business programme was launched meet their own needs.” The notion of corporations assuming in 2001, expanding on our environmental management system a greater societal and environmental responsibility and con- dating from 1996. Fully aligned with our core business objec- tributing to this goal, has grown in importance during the tives, the programme was instated to increase awareness and past decades. This is in part due to the challenges that global- readiness to handle risks and reduce costs, but also as a means isation brings, but also because there is increasing awareness to capture opportunities in the process of achieving the goal of that being responsible makes good business sense. being an industry leader with solid long-term profitability. At Rezidor, we have created the Responsible Business pro- An important aspect of taking this leading role is our eco- gramme because we believe it is our personal and professional labelling strategy (see page 3), where the results have been responsibility to make things happen – following our core phi- even better than expected. Nearly a third of the total number losophy, “Yes I Can!”. Without taking that responsibility, we of hotels in operation were certified in our key focus regions cannot make a difference or sustain long-term profitability. by the end of 2008 – an outstanding achievement. In December 2008, The Rezidor Hotel Group proudly Vision and strategy: Taking a leading role joined the United Nation’s Global Compact, the world’s largest Our vision for this programme is to take a leadership role voluntary corporate responsibility initiative. Our long-stand- in the international hospitality industry. We also strive to ing Responsible Business programme means we are already achieve recognition and to reap the economic benefits of well-prepared to aligning our operations with the ten univer- this leading position. In order to be a leader, our Responsible sally accepted principles of the Global Compact in the areas of Business programme must be anchored in our core business human rights, labour, environment and anti-corruption.

Responsible Business time-line 1989 • Responsible Business Coordin­ • Rezidor becomes chair of IHEI 2005 • First environmental policy driven ators appointed and trained Executive Committee • First Rezidor Responsible Busi- by SAS Group • First Responsible Business ness Award given to Radisson Training initiated with 35% of 2004 • Awarded “Worldwide Hospital- SAS St Helen’s Hotel, Dublin, 1996 staff trained by year-end ity Award for Environmental at Annual General Manager • Launch of the Radisson SAS • Regular reporting of energy, Protection” conference environmental programme with water and waste • Development of internet based • Launch of Rezidor SAS Code of 24 action points • Save the Children becomes database for environmental Conduct • Founding member of the Inter- corporate charity organisation national Hotels Environment legislation with self-audit and 2006 Initiative 2003 quarterly updates • Awarded HOFTEL Owner- • Launch of Hotels Environment • Carlson Companies signs ECPAT Friendly Innovation of the Year 2001 Action Month (now Responsible Code of Conduct against sexual • Launch of the Responsible Busi- Business Action Month) – exploitation of children 2007 ness programme encompassing 89 hotels participated • Launch of Responsible Busi- the three pillars of health and • Radisson SAS Plaza Hotel, Oslo, ness Best Practice database well-being, social and ethical is first Rezidor property to re- • World Childhood Foundation responsibility, environmental ceive third-party environmental becomes corporate charity responsibility certification with the Nordic organisation Swan Eco-label

6 Rezidor Sustainability Report | 2008 OUR SUSTAINABILITY IMPACT Prioritising material topics This section reviews the most material sustainability issues The World Travel & Tourism Council estimated in 2008 on the basis of: that the travel industry generates 238 millions jobs and • risks and opportunities for our business contributes 9.9% of the global gross domestic product. An • significance of economic, environmental and social impact industry of this size has a considerable impact on social, • importance for key stakeholders. economic and environmental conditions around the world. Adjusting to climate change and The hospitality industry faces a plethora of issues, risks reducing resource consumption and opportunities related to sustainability. These include There is no doubt that travel and tourism contribute to cli- addressing climate change and resource consumption, mate change. Travel consultancy DestiCorp estimates based minimising generation of waste, and attracting and retain- on UN World Tourism Organisation (WTO) data, that inter- ing high-performing employees. The industry must also national travel will spawn 2.5 billion tons of carbon diox- respond to sustainability-related expectations expressed ide, the main greenhouse gas, in 2020, up from 506 million by customers and the local and global communities. In tons in 1990. However it is important to acknowledge that addition, and increasingly in today’s business climate, Rezidor does also face risks due to climate change. First and comprehensive management of health and safety, ethics, foremost, if the travel industry fails to reduce carbon diox- corporate governance and a socially and environmentally ide emissions, the rate of travel could very well decrease in responsible supply chain have become ever more impor- the long run as a result of legislative pressures (for example tant priorities. carbon tax) resulting in increased travel costs, or through We believe the above non-financial issues ultimately voluntary actions of our customers to limit travel. But there impact on our profitability. This view is also reflected by are also risks related to more sudden impacts caused by cli- an evolution in shareholder perspective as we observe an mate change – for example disrupted travel patterns due to increased interest from investment funds, banks and the natural disasters or damage to hotel properties due to severe Socially Responsible Investment (SRI) community with weather events such as storms or flooding. Some locations regards to companies’ environmental and social perfor- may face geographically specific risks that could affect the mance. In a 2008 European SRI study, Eurosif estimated safe and profitable operation of hotels. The effects on earn- that total SRI assets under management in Europe had ings and risk as a quantitative measure are difficult to esti- reached €2.7 trillion as of December 31, 2008, represent- mate to date. We handle risks through our Responsible Busi- ing as much as 17.5% of the asset management industry in ness and Safety and Security programmes. The framework Europe. This corresponds to a remarkable growth of 102% for managing operational risks is presented on page 56 of the since December 31, 2005. We also observe that an increas- Rezidor 2008 Annual Report. ing number of mainstream asset owners, investment man- By signing the UN Global Compact we have committed agers and professional service partners sign up to the Prin- to promote greater environmental responsibility alongside ciples for Responsible Investment. a commitment to a number of other important principles for There are many ways to run a hotel business and these operating a responsible business. We are continually moni- impact on how a hotel operator can manage risk and take toring developments through active participation in environ- advantage of opportunities related to sustainability. Rezi- mental forums, and with our internal awareness and training dor’s business model which entails operating hotels but not programme “Living Responsible Business” we are doing what owning the properties, sometimes limits the actions we we can to limit our own environmental impact and our vulner- can take. But by and large we are able to control the key abilities to climate change and resource consumption issues. issues pertaining to sustainability as demonstrated in the Consumption, by our hotels, of resources such as energy paragraphs below. and water and the disposal of waste impact on the natural

2008 | Rezidor Sustainability Report 7 environment in terms of resource depletion and the gen- financial expenses. As the graphs on pages 17 demonstrate, eration of emissions. It also affects our business – particu- we are progressing in the desired direction as we have yet larly with regard to operational costs. We have measured again achieved substantial reductions across all indicators our resource consumption and associated costs for many and all brands. We believe that our ambitious eco-labelling years – and these metrics provide us with the backbone of strategy (see box on page 3) has strongly contributed to our environmental management framework. One of the these achievements. key roles of the Responsible Business teams in the hotels One of our main challenges is to devise and implement is to continuously strive for more efficient natural resource strong climate change and resource management pro- use, thereby contributing to the reduction of operational grammes adjusted to the different conditions in the 46 coun- costs – and the mitigation of environmental risks – along tries where we operate hotels. We work actively to measure, with the reduction of associated legal, insurance and monitor and reduce our carbon footprint and to enhance

8 Rezidor Sustainability Report | 2008 Our Sustainability Impact

resource effi ciency and this involves closer discussions with our property owners and developers. employee Well-Being Many of the actions we need to implement require invest- ments in the properties. As we are a hotel management com- challenGe The Responsible Business team at The Regent Esplanade Zagreb pany, this can mean that the property owner would take the know that many illnesses today can be initial investment cost, while the hotel would benefi t from attributed to smoking and were keen to the resulting reduced operational running costs. A close help their smoking colleagues. dialogue with our property owners regarding Responsible Response The team decided to make Business and the related investments is therefore important employees aware of the effects of their bad for the success of the Responsible Business Programme. The habits and do something concrete to change behavior. In January the hotel started their “No Smoking Project” and re­ vast majority of hotels have informed their property owners PRACTICE BEST sults are even better than expected. 22 out of 158 employees about the Responsible Business programme and of neces- have decided to stop smoking. In order to actively support the sary actions and investments for sustainable practices when staff, the hotel provided nicotine patches and chewing gum. Experts were invited to present different quitting strategies renovating and refurbishing their hotels. and provide professional support. During a staff meeting in In addition to investments in existing properties, it is the autumn employees who managed to quit smoking were important that we minimise the environmental impact from rewarded with a voucher for relaxing massage. the beginning of new projects by utilising smart design. To this end, we have recently completed Responsible Construc- in how hotel security is perceived. We feel that the best way tion and Renovation Guidelines to be used in conjunction to maintain the high levels of safety and security required is with our Technical Standards. dependent on the everyday actions of every employee at every level in every hotel and every Rezidor offi ce in every coun- rezidor as a responsible employer try. We have a structured risk management formula entitled Taking into account all hotels, under all contract types, a TRIC=S which promotes proactive behaviour throughout total of 32,000 employees were working under the Rezidor the company. TRIC=S stands for Threat assessment + Risk brands during 2008. We count no less than 134 nationalities management + Incident response + Crisis Management = amongst our workforce, 52% of which is male. Safe, Secure hotels. We hire a diverse and relatively young workforce and try to Page 22 provides further details about our Safety and recruit our management internally, providing training and a Security programme. viable career path. Rezidor sees an opportunity in investing in its employees and strives to provide favourable working conditions to retain them. This contributes to delivering a examples of actions to keep us safe: high quality service, an important value driver and diff eren- • We work to limit the risk of any guest becoming injured, ill or suffering any loss while visiting a Rezidor property. tiator from other hotel chains and brands. • To protect the assets and investments of our owners, we will actively As early as 1991 The Rezidor Hotel Group started to mea- work to prevent operational disruptions in the hotel and to ensure that sure employee satisfaction. An independent organisation is any disruptions that may occur are as limited as possible, both in cost, length and degree. commissioned to conduct this annual survey entitled Cli- • All hotels will actively work to prevent fi res and reduce the risk of ignit­ mate Analysis. In 2008 the results from our managed, leased ing fi res on hotel property. and franchised hotels stood tall at 85.1 (out of 100) – the same • All hotels will have equipment, procedures and training programmes designed to limit the risk of damage done if a fi re should occur. score as 2007. At the same time the number of respondents • The 1­2­3 programme (Alert, Save Lives, Solve the Problem) is used as increased from 17,900 to 19,300 participating employees. a tool to help fulfi l our Safety and Security policy. Rezidor has for many years successfully focussed on achieving a positive eff ect on the bottom-line through active managing sustainability in our supply chain people management. We off er a range of tools in order to We consider that purchasing from suppliers that demon- attract and retain talented people by hiring for attitude and strate environmental and social responsibility is an impor- train them to skills. The strong focus of the company on its tant aspect of Responsible Business conduct. Rezidor’s cen- internal talents has a long track record of success. tral purchasing programme, RezPIN, is an online market platform which allows registered buyers and suppliers to A proactive approach to safety and security exchange information about products needed and off ered. At Rezidor, we acknowledge that the safety and security of This is creating a win-win situation for both market sides, as our guests, employees and property is an imperative aspect it leads to reduced transaction costs for both the supplier and of hotel operations. Since the terrorist attacks in the US in the buyer. 2001, in Amman in 2005 and more recently in Islamabad, In addition to the information function of the corporate Pakistan and Mumbai, India – there has been a great shift Purchasing Department which is to provide diff erent busi-

2008 | Rezidor Sustainability Report 9 Our Sustainability Impact

community outreach challenGe In Bratislava there is a popular coffee shop, The new trainees received a warm welcome from Gen- Radnicka, which provides people with intellectual dis- eral Manager Sonja Dive­Dahl and the whole team was abilities with employment opportunities. However due impressed by their enthusiasm. to building works this summer, the coffee shop was The hotel prepared information leafl ets which were about to close and the future of their employees was placed in all guest rooms, menus and in the elevator uncertain. so clients knew and understood the project. Radnicka employees worked at the hotel for four days, integrat- Response Radisson SAS Carlton Hotel, Bratislava, ing themselves among staff and impressing their new wanted to do something special and meaningful in or- colleagues with their willingness to learn new things der to show the full potential of Responsible Business and the joy they obtain from the simple things in life.

BEST PRACTICE BEST and thus opened its doors to employees of ”Radnicka“. The team at Radisson SAS Carlton Hotel, Bratislava, They provided cross-trainings in the bar and restaurant are proud not just to have helped these people fi nd jobs so that the Radnicka team could experience the atmo- and their place in the society but also to encourage oth- sphere of working in a large international hotel, but also ers to open their doors for those who do not have the to draw attention to the challenges these people face. same opportunities. ness units with information about best quality products at a son SAS Hotel, Warsaw, has joined the Youth Career Initia- suitable price, it also ensures that contracted suppliers keep tive of the International Tourism Partnership, which aims in line with the conditions of Rezidor’s corporate Respon- at providing young people from less advantaged communi- sible Business philosophy. All suppliers included in the sys- ties internship placement in the hotel teaching them profes- tem are required to sign The Rezidor Hotel Group Supplier sional work skills. We also give support through the resto- Code of Conduct and we are working on a RezPIN feature ration of cultural heritage sites, by sponsoring local events which will allow suppliers to also display their own Respon- and charities and by partnering with research and interest sible Business profi le so hotels can make an informed choice. organisations. Being well thought of helps to safeguard our Hotels also actively engage with suppliers with regard to reputation and strengthen our brand. It enables us to more their Responsible Business practices. In 2008, 73% of hotels easily acquire licenses to operate and facilitates the process provided the Rezidor Supplier Code of Conduct to their sup- of establishing operations and securing business partners in pliers. At the same time, over 70% of hotels included social, local markets. ethical and environmental issues in supplier contracts. The number of hotels carrying out supplier audits in these areas human rights and corruption increased from 33% in 2007 to 40% in 2008 and half of our Key human rights issues for the hotel industry include fair hotels provide support to their suppliers with the objective wages, women’s rights, ability to join trade unions and col- of improving their environmental, social and ethical perfor- lective bargaining. Breaches of good practice and association mance. with social problems can cause considerable long-term dam- age to a company’s reputation and may result in a company our licence to operate in the community being denied future licenses to operate, sometimes even fac- Tourism is dependent on a healthy local economy as well as ing international boycotts. Rezidor operates hotels in coun- cultural and natural heritage. Hotel companies contribute tries where corruption and human rights issues exist. We do positively to the social and economic development of regions not in any way participate in or condone practices that breach in which they operate. Hotels hire a majority of their employ- International Declarations covering these issues. On the ees locally and pay local taxes – and tourists buy local goods contrary we feel that our presence can be a positive infl uence. and services, thereby boosting the local economy. It is inter- We work to rid prevalence of such social problems hands-on, esting to note that Rezidor’s business model, where 26% of strengthening local communities by running a responsible hotels (68 properties) are operated on franchising basis, actu- operation. The UN Declaration of Human Rights underlies ally strengthens the local bonds and economy. Franchised our relationship with our employees. All hotels within Rezi- hotels are generally owned by local owners and only a small dor comply with local laws regarding working hours and pay- share (the franchising fee) goes to Rezidor. So a great deal of ment, and employees are free to join trade unions if they so the income generated stays in the local business community, choose and bargain collectively in accordance with local laws. hopefully re-invested to benefi t the region. Our hotels have routines in place to ensure that discrimina- To respect the co-dependency and to strengthen the com- tion due to age, race, religion, gender or disability does not munity, Rezidor strives to hire local people when possible and take place in line with our Equal Opportunities Policy. Please many hotels make a special eff ort to employ people who have refer to the Social Results section for more information about diffi culty accessing employment. For example, the Radis- these issues.

10 Rezidor Sustainability Report | 2008 THE RESPONSIBLE BUSINESS PROGRAMME Responsible Business Policy and Stakeholder Engagement Rezidor’s Responsible Business (RB) programme builds on the principle of sustainable development, where all hotels shall strive to take economic, social, ethical and environ- mental issues into consideration when making decisions in their everyday work. The programme encompasses 3 key pillars: • Taking responsibility for the health and safety of employees and guests • Respecting social and ethical issues in the company, as well as in the community • Reducing our negative impact on the environment

Our long-term success depends on our understanding, and ability to address, the needs of those who affect or are affected by our operations. Therefore, the Responsible Business programme is built around eight key stakeholders – and based upon their expectations

2008 | Rezidor Sustainability Report 11 from the company from an economic, ments including Responsible Business, tegic business issue at Rezidor; this social or environmental point of view. Human Resources and Safety and aspect is fully integrated into the over- Security provide General Managers of all governance of the company. The Identification and Selection hotels with ongoing support to imple- ultimate responsibility for Responsible A s one of the fastest grow ing hotel com- ment Responsible Business practices. Business lies with the Executive Com- panies in the world, we recognise that The Responsible Business department mittee at corporate level and General we have an impact on a very wide selec- in turn collaborates in various areas Managers at hotel level. The Corporate tion of stakeholders, either directly or with other key departments (see box Responsible Business Department indirectly. The basis for identifying and below). reports to the Executive Committee. selecting our key stakeholders mainly At an operational level, the General To read about Rezidor’s governance, relates to the extent that we influence Managers are responsible for the man- please see the Corporate Governance or impact them: economically, socially agement of social, ethical and environ- Report on page 49 of the Rezidor 2008 and environmentally. We attempt to mental matters. In order to support Annual Report. estimate the interdependence between them in this responsibility, we have From an operational standpoint it is Rezidor and these stakeholders and equipped our hotels with several tools the General Manager of the hotel that focus our efforts where we have the to better manage Responsible Busi- is ultimately responsible for the hotel’s potential to make a difference. ness. Each hotel devises its own per- Responsible Business activities. To sonalised Responsible Business Action assist him or her there is an assigned Stakeholder Concerns Plan based on the corporate objec- Responsible Business Coordinator at and Engagement tives. Hotel employees are guided by a each property who then establishes a Our stakeholder relations encompass Responsible Business Manual, as well Responsible Business Team consisting a number of environmental, social and as a continuously updated intranet that of employees from different functions economic issues, such as efficient use of contains information about policies, and all levels of the organisation. The resources, limitation of emissions and reporting requirements, best practice team members work with the Coordi- waste, childrens’ rights and wellbeing, examples, certification and awards nator to review current practises, and workplace and guest health and safety and other useful resources. There is act to achieve and audit the results of as well as cultural heritage. Many of also a regional framework in place for the programme. This includes ensur- our stakeholders have differing expec- Responsible Business, supporting the ing that the information regarding the tations, and these may sometimes be hotels at a regional level and provid- Responsible Business programme is contradictory. A responsible business ing a liaison between the hotels and disseminated to all departments of the must be able to balance these different the Corporate Responsible Business hotel. expectations so that, within reason, all Department. The regional Responsible stakeholder groups feel their demands Business Coordinators meet twice a are being met. year, where they are informed about Examples of Cooperation The table on the next page lists and discuss the most recent develop- with other Corporate our key stakeholders and main policy ments and plans for the Responsible Departments during 2008 objectives in relation to these. It also Business programme, and share best Technical Development includes what we believe to be their practice. • Responsible Construction and expectations in relation to Rezidor. In addition, our General Manager Renovation Guidelines Certification Programme, which is • Benchmarking of environmental performance Management and mandatory for all General Managers Purchasing Organisation includes a dedicated Responsible Busi- • Supplier Code of Conduct Under each initiative in the policy ness session that prepares participants • Supplier Responsible Business Profile on described above, there are objectives for all the responsibilities to be fulfilled RezPin that state our ambitions for each area. in order to carry out the Responsible Sales & Marketing • Responsible Meetings and Events These objectives are in turn made prac- Business programme successfully. • Carbon Offsetting through goldpoints plusSM tical through suggestions for actions, Reporting requirements for each Safety & Security underpinned by performance-based hotel are described in further detail in • Code of Business Ethics targets. The Summary of Progress sec- the About This Report section. • rezidorethics.com tion lists our key performance indica- People Development • Living and Leading Responsible Business tors, commitments and targets and Governance Training achievements for the year 2008. Sustainability issues are treated in the Finance At the corporate level, key depart- same way as any other important stra- • Environmental Reporting and Analysis

12 Rezidor Sustainability Report | 2008 The Responsible Business Programme

Stakeholder Policy Expectations

Employees We shall educate and facilitate for our em- fair and equal treatment; secure and safe ployees to make a conscious decision in working environment; training and career favour of environmental, ethical and social progress; good pay issues in their private and work lives.

Customers We shall inform and make it easy for our leading service; good value for money; flex- guests to participate in Responsible Business ible approach; environmentally responsible; related activities at our hotels. good global coverage; benefits and generous loyalty programmes

Property Owners We shall work together with property owners good returns from property management; to find innovative solutions that satisfy our high level of security. economic, environmental and social objec- tives.

Shareholders We shall provide shareholders and investors transparent information; sound strategy and with timely, accurate and transparent infor- corporate governance; high return on invest- mation on Responsible Business related risks ment; minimisation of risks and opportunities.

Suppliers We shall strive to purchase products that fair and equal treatment; value-based pricing have a reduced environmental impact during their lifecycle, from suppliers that demon- strate environmental and social responsibility.

Authorities We require our managers to abide by local compliance with rules and regulations; finan- and international legislation, especially re- cial contributions (taxes and fees) garding labour laws, Health and Safety, hu- man rights and the environment.

Community We shall take an active role in the interna- forming an active and responsible part of so- tional responsible business community, and ciety; sponsorships of projects; contribution contribute to the local communities where to infrastructure; contribution to attractive- we operate. ness of destination

Environment We shall do our utmost to continuously im- reduced consumption of energy, water, and prove our performance in the areas of energy, chemicals; resource-efficiency; biodiversity water, chemicals and resource consumption, protection; minimisation of waste; respon- and waste generation in order to reduce our sible purchasing; sustainable transport negative impact on the environment.

2008 | Rezidor Sustainability Report 13 resultsECONOMIC

Responsible Business contribution to behaviour. A 2008 Deloitte survey on sustainability in the cost containment and driving revenue hospitality industry found that 38% of the business travellers We believe that non-financial issues address through our interviewed had taken steps to find out whether a hotel was Responsible Business approach have a long term impact on ‘green’. We notice this trend in particular when we receive our profitability. requests for proposals from our corporate clients, where we Implementing Responsible Business activities can help are asked to comply with increasingly detailed requirements contain costs through reduced utilit y consumption, for exam- regarding environmental and ethical issues. In response, ple. During, 2008, 49% of hotels undertook a significant we have ensured that the provision of information about investment to improve their environmental performance. As our environmental and social profile to clients is part of the the types of investment vary substantially between hotels, we sales and marketing process. We have also started to develop do not provide a consolidated figure for investments made. a responsible meeting and events concept in line with the Investments carried out included installation of Build- British Standard for Sustainable Events (see 2008 highlight, ing Management Systems, waste sorting facilities, energy page 2). savings technology including sensors, low energy demand More recent consumer research points out that consumers equipment, as well as water conservation fittings such as low are currently less inclined to pay a premium for green prod- flow toilets and taps. The majority of hotels also reported uct offerings due to the economic downturn (Greenaware, immediate savings or cost avoidance achieved due to these 2008), which is a trend that could very well become notice- investments. able more broadly across the hospitality sector. However we Responsible Business also helps us drive revenue. Long expect though that our corporate and leisure guests will con- term sustainable profitability and growth require Rezi- tinue to make their Responsible Business expectations heard dor’s operations to be able to meet demands set by custom- and that attractive opportunities will continue to exist for ers. These include requirements related to environmental responsible hotel companies with long-standing social and performance as well as social accountability and ethical sustainability programmes.

14 Rezidor Sustainability Report | 2008 Economic Results

Direct costs of Responsible Business Purchasing and Local Suppliers Costs related to Rezidor’s Responsible Business programme in 2008 teur With more than 360 hotels in operation and under develop- Total Energy costs 21324 ment in 55 countries in Europe, Middle East & Africa, a large Broken down as follows: proportion of our spending is directed towards locally-based Electricity 13 237 suppliers. We estimate that in 2008 approximately one quar- Oil 228 ter of purchases were sourced through our central purchas- Natural Gas 2 022 ing programme. The rest is purchased through regional or District Heating 2 418 local agreements. Other Energy 3 421 Water 2 447 Local Workforce and Management Costs related to the Responsible Business programme 947* Rezidor has a direct and substantial financial impact as an Costs related to donations to World Childhood Foundation 75 employer. Personnel costs, such as wages, training and bene- Security related costs 601* fits, are by far the largest cost for the company, 56% amount- Total 25394 ing to MEUR 277. *) “Costs related to the Responsible Business programme” and “Security related costs” relate to personnel, consultants and development costs at corporate level. In addition to these, hotels bear the cost of hotel-specific improvements in the area of energy, water and Infrastructure Investments waste management, as well as security related start-up audits and workshops. A central overview of these costs is not available. The hotels we operate are highly dependent on local infra- structure and the well-being of the surroundings. The estab- ECONOMIC Our Economic Impacts lishing of our hotels often results in a considerably better con- The International Tourism Partnership estimates that one dition of local infrastructure (such as walkways and parks) by job created in the tourism industry generates about one and bringing in economic interests making investments viable. It a half additional jobs in other industries (for example res- also happens that we may directly contribute to establish- taurants, sightseeing, taxis, laundries, etc.) Hotels also help ing and financing infrastructure when opening a new hotel, to create job opportunities and provide incomes in regions which is the case for example with leased hotels. In addition, where the possibility for industrial activity is small, thus pro- many hotels reach out to help manage public property by viding an opportunity for people to stay in areas with other- clean-up days or to facilitate improvements through dona- results wise difficult employment circumstances. tions of money or materials. As the paragraphs below demonstrate, Rezidor’s economic impacts as a business partner and an employer are substan- Charity initiatives at local and global level tial. We also contribute to charity initiatives both locally and Throughout the year, our hotels sponsor many charities and globally and contribute to infrastructure investments. non-profit initiatives at local level through actions such as fund-raising assistance, training, free meeting rooms and Governmental Financial Support other in-kind donations. In 2008, over 160 hotels partici- The Rezidor Hotel Group receives no direct and significant pated in the annual Responsible Business Action Month in financial subsidies from governmental organisations in the September when hotels are encouraged to organise environ- countries where we operate hotels. However it is worth noting mental and community activities. that some Rezidor properties such as Radisson SAS Resor, El The Rezidor Hotel Group is also proud to have the World Quseir, and Radisson SAS Resort, Taba, have received funding Childhood Foundation as its international charity organi- from the Danish International Development Agency (DANIDA) sation. Through various fund-raising activities at hotel and in recent years. These grants were for projects that have resulted corporate level during the year, we managed by year-end to in the establishment and development of jobs, training and edu- raise EUR 75,000 for Childhood. cation of staff and local inhabitants in community.

World Childhood Foundation Since June 2007, Rezidor’s corporate charity or- lion guests each year with a comfortable and ganisation is World Childhood Foundation (Child- restful stay away from home. Childhood aims hood) – a non-profit organisation dedicated to to help children who are abused and exploited ser ving the most vulnerable children in the world: to ensure that they are given a safe and secure street children, sexually abused and exploited childhood, or simply put, a home. These parallel children, children trafficked for sexual purposes aspirations mean that Rezidor’s support to Child- and institutionalised children, with a particular fo- hood is natural to who we are as a company and continue our commitment to support children cus on girls and young mothers. a corporate citizen. As we move forward towards around the world and to provide them a safe Rezidor’s mission is to provide its several mil- achieving our growth objectives, we will also home and a better childhood.

2008 | Rezidor Sustainability Report 15 resultsenvironmental

16 Rezidor Sustainability Report | 2008 Environmental Results

8 years of Responsible Business – and environmental performance still improving across the board

eco-labels/ environmental management Standards in key energy, m2 Water, guest night, litres Waste, guest night, kg regions January 2009 400 600 2,4 Green Hospitality Award (11 hotels) Green Key (12 hotels) 300 450 1,8 Green Tourism Business Scheme (6 hotels) ISO 14001 (15 hotels) Nordic Swan Eco-label 200 300 1,2 (21 hotels)

environmental 100 150 0,6

0 0 0,0 2006 2007 2008 Radisson Blu Park Inn Regent Radisson Blu Park Inn Regent Radisson Blu Park Inn Regent

Operating hotels involves the use of raw material, energy material use results and water, and results in waste generation. Rezidor’s main Many of our social and environmental impacts are derived environmental impacts are a result of energy use and the from activities in our supply chain. As a hotel company we consequent contribution to climate change, in addition to use a large variety of products and the majority of our mate- consumption of materials. rial use is in the form of products we purchase from suppli- In 2008 we committed to tripling the number of hotels ers. Controlling whom we buy products from and what we with third-party environmental certifi cations to ensure buy is an important part of our strategy to reduce our nega- hotels are doing their utmost to reduce these impacts. The tive environmental and social impact. For some products focus of these certifi cations is on concrete savings, better where we buy large quantities and where we perceive the indoor environment, waste management, energy effi ciency, negative environmental impact to be high, we have set strict environmental training of employees and informing guests environmental performance demands. Moreover, our cor- about the Responsible Business programme. porate contracts include a set of environmental and social criteria that our suppliers are expected to comply with. We try to positively infl uence our suppliers by providing incen- tives to develop environmentally sound products produced Waste management in a responsible way. value for money, quality in relation to challenGe Mrs. Seija Sauremaa has price, will always be our prime concern. Once we are satisfi ed been working for the housekeeping with these parameters, we always choose suppliers and prod- department of Radisson SAS Royal ucts with the most advanced Responsible Business profi le. In Hotel, Helsinki, for 17 years and had noticed the signifi cant amount of un- other words, with all things equal, we select the most ethical used guest amenities going to waste. or environmental product.

Response After researching possible actions, since March 2008 housekeepers at the property now collect all unfi nished Waste and spills shampoo and soap bottles from guest rooms and donate to a Solid wastes are generated by many activities in our hotels BEST PRACTICE BEST local charitable association “Homeless in Helsinki”. This small like food preparation, pre-packaged items consumed, read- extra effort by the housekeeping team has visibly reduced the hotel’s residual waste and provides valuable amenities to those ing of newspapers, cleaning etc. We have an active agenda in need. All are very happy to help for this good cause. to try to minimise our generation of wastes and enable recy- cling and train our employees accordingly. We invest in tech-

2008 | Rezidor Sustainability Report 17 nology like fat separation devices and set up routines when varying performances across regions is partly explained by for example cleaning the rooms and premises. We also buy the age of the hotel portfolio, partly by price diff erences driv- products that minimise waste once used by setting central ing savings, and also by general awareness regarding energy- and regional purchasing policies and routines as well as pur- saving. chasing for example refi llable pre-set dosage cleaners. In 2008 we saw a 2% reduction in waste per guest night energy savings at Radisson Blu properties while at Park Inn hotels the Over 49% (50) of hotels responded that they undertook some reduction was a staggering 22%. We believe these reduc- kind of environmental investment during 2008. The vast tions were achieved mainly due to hotels switching waste majority of these investments are related to energy saving contractors and therefore increased recycling, and also measures. These measures include the installing of sensors due to increased employee awareness after the launch of and motion detectors as well as low energy demand equip- our Living and Leading Responsible Business training this ment, upgrade of heating and ventilation systems, and year. performance of energy audits. The majority of hotels also Spills are marginal and not centrally reported, though reported immediate savings or cost avoidance achieved due discharge and chemical use is tracked and controlled. There to these investments. were no signifi cant environmental spills or leaks during 2008. Water use Water accounts for up to 15% of total utility bills in most energy use hotels, and up to 95% of fresh water leaves the hotel as waste. Our energy consumption consists of electricity, district heat- Normally we pay for our water use twice, fi rst when we pur- ing and cooling, heating oil, natural gas, and LPG gas. Energy chase fresh water and eventually when we dispose of it as costs as a share of Rezidor’s total costs is 4.2 % (4.6), and dur- wastewater. ing 2008 we spent TEUR 23,771 (23,304) on energy related Water consumption per guest night decreased by 3% for costs for leased hotels. Rezidor is committed to contributing Radisson Blu during 2008, and by 7% for Park Inn. Improve- to mitigating climate change by continuously improving the ments were visible across all regions although consumption energy-effi ciency of our operations and by increasing the remains very high in the Middle East where hotels tend to share of carbon-neutral energy sources. have large leisure complexes and gardens as well as Iceland For Radisson Blu, energy consumption per guest night where geothermal water is used for heating. went down by 6% as compared to 2007 while for Park Inn properties it decreased by 14%. Performance across regions Water discharge still varies substantially with Germany, Norway, Poland, In general terms, any water that comes into the hotel, goes Russia, the Baltics, Switzerland and Italy continuing to out as water discharge. It is either grey water, which has decrease consumption. The United Kingdom where we have been used in showers and sinks, and still is relatively clean, a large number of Park Inn properties, although still higher or it is black water, which comes from toilets and needs to go than average, has also achieved a signifi cant reduction this directly to a sewage treatment plant. Rezidor can infl uence year. its water discharge in two main ways – either by reducing the

energy effi ciency challenGe The Radisson SAS Hotel, Leeds, has fi ve of the year on budget and moreover with no additional levels of guest bedrooms and each corridor has ap- cost, as the LED lights are priced almost the same as proximately one hundred compact fl uorescent lights. compact fl uorescents. The result is a very bright environment and high energy The hotel estimates that just one refi tted corridor will consumption. result in a saving of 18,0 0 0 kWh on consumption, In ad - dition the hotel will save on the monthly purchasing of Response In 2008 the hotel changed one corridor to compact fl uorescent lights and on man hours required LED light fi ttings and the effect has transformed this for the hotel engineer to do daily light replacement level dramatically – giving a new modern look to the rounds, as LED have a life span of 50.000 hours – far hotel corridor while maintaining an adequate amount greater than that of compact fl uorescents. This results

BEST PRACTICE BEST of light for the guest’s comfort. The engineering team in a total calculated saving of at least €5,000 per year managed to retain and reuse the original compact fl uo- and the hotel has already begun to expand this project rescent fi ttings by inserting a standard GU10 fi tting in- throughout the hotel in areas such as guest restrooms side the original. This has reduced the cost of the proj- to further reduce consumption. ect so that the project was fully completed by the end

18 Rezidor Sustainability Report | 2008 Environmental Results

Water conservation challenGe A busy laundry such as that at the Diplomat save 121,000 litres per month without causing any ad- Radisson SAS Hotel, Manama, will always use a consid ­ verse affect to the linen. The team also took the chance erable amount of water. Even though the hotel draws its to revise the auto fl ushing frequency in the public area own water and therefore does not pay for its consump- and outlet restrooms which led to another saving of tion, the Responsible Business team at the property 57,000 litres per month. was determined to reduce their water footprint. By simply questioning current routines the hotel has been able to save close to 180,000 litres of water per Response Towards the end of 2008, the team decided month without reducing guest comfort, and the team to review all the wash programmes to see if any sav- is motivated to fi nd further savings in their everyday ings could be made. By removing the ”pre wash“ cycle operations.

BEST PRACTICE BEST on all of the light soil loads, the hotel has been able to

consumption and discharge of materials and products that tricity, natural gas, heating oil, district heating and LPG would contaminate water, but also through reusing its grey gas for the 178 properties for which we have comprehensive water. data amounted to 325,119 tons CO2e. Thus our carbon foot- Three main sources of water contamination in a hotel are print has thus increased in absolute terms, which is mainly chemical use in housekeeping, soaps and amenity use among explained by a strong growth in hotels opened, especially in guests and residue from the kitchen area. In order to reduce countries outside Western Europe. spillage from housekeeping to the water system, we use dos- However, as previously mentioned, the regional diff er- age systems for the cleaning chemicals. This ensures that ences are large. This is mainly due to the diff erences in energy we do not overdose when cleaning or washing. With regards mix in the diff erent countries where we operate hotels. As the to amenity use, we encourage the use of refi llable soap and bulk of our CO2emissions (73%) come from electricity use, shampoo amenity dispensers and 93% of hotels currently we are particularly sensitive to the energy sources used in have these in place in public washrooms. In the kitchen area, the countries where we operate hotels, and the availability of 82% of the hotels use a fat separation device in the kitchen, to renewable sources in the grid. ensure that fat residue does not go into the water system. However, there are still many opportunities available With regards to re-use of water, two common ways are to the carbon footprint among our hotels, both by reducing reuse of rain water for irrigation, which is in place among 6% energy use and becoming more effi cient, but also by more of our hotels, and grey water systems where shower water is actively shifting towards renewable energy solutions. used to fl ush the toilets. These kinds of systems are in place in 7% of our hotels. land use and biodiversity Rezidor’s business strategy is to operate hotels and not own emissions properties. In this sense the company does not directly use Emissions are predominantly a factor of our energy con- land, but as Rezidor’s operations facilitate and fi nance land sumption (electricity use and heating/cooling) and mainly use, the eff ects of land use are nevertheless an issue. consist of the carbon dioxide emissions. Due to the majority Hotels have a signifi cant physical footprint. The buildings of our emission being linked to our energy consumption, our are often sizable and the landscaped premises encompass eff orts to decrease emissions are concentrated on working considerable areas. It is in our interest to preserve the natural towards minimising energy consumption as well as shifting environment and biodiversity as ultimately the local commu- to renewable energy sources. nity, and its condition, is of utmost importance to running a Together with the Edinburgh Centre of Carbon Manage- profi table hotel operation. To this end, our Responsible Con- ment, an assessment of the greenhouse gas emissions of Rez- struction and Renovation Guidelines advise owners, devel- idor’s operations was undertaken in February 2008, based opers and hotels how to best manage their land in a produc- on 2007 data. Previous assessments were made in 2007 and tive and sustainable manner. in 2006. These assessments focus on energy related emis- sions only, as the data accuracy from freon and waste dis- fines and Incidents posal which was previously requested is less accurate than There have been no environmentally related incidents or that of energy consumption. In 2008, emissions from elec- fi nes at hotel or corporate level reported.

2008 | Rezidor Sustainability Report 19 social results

The values of Rezidor guide the organi- recruit our management internally, open fashion, with the goal of giv- sation and our employees in their daily providing training and a viable career ing the employees fair influence. In business. Our values are openness, path. Europe, the European Works Council trust, respect, confidence, fighting framework helps regulate information spirit, flexibility, empowerment, and Collective bargaining agreements and co-dependency issues. Annual z-factor. We must ensure our values are All hotels within Rezidor comply with meetings are held, where issues such as not compromised even where we have local laws regarding working hours the company’s finances, performance, to adapt to local conditions. and payment, and employees are free to future ventures and other paramount join trade unions if they so choose and issues, are discussed with employee Labour Practices bargain collectively in accordance with representatives. If Rezidor decides to and Decent Work local laws. Pursuant to the European discontinue operations or divest a hotel Workforce Union Directive on works councils operation the hotel normally remains The Rezidor Hotel Group had 6,757 (94/45/ EC, the “Works Council Direc- in operation (but under different man- (5,572) employees in leased hotels tive”) Rezidor has established a Euro- agement). The effects on the employees during 2008, of which 3,625 (3,087) pean Works Council, which has been when losing Rezidor as an operator and were women. However, when taking entered into by and between represen- employer are thereby lessened. During all contract types into consideration, tatives of our central management and the year, 20 hotels joined the Rezidor over 32,000 employees of no less than employee representatives. Data of the system and 0 managed or leased hotels 134 nationalities work under one of the share of employees with collective bar- discontinued their co-operation with Rezidor hotel brands. gaining agreements is not collected. The Rezidor Hotel Group. When taking Rezidor employs the absolute major- over an existing hotel, the large part of ity of people living in close proxim- Handling operational changes the employees of the earlier hotel brand ity to its hotels. We hire a diverse and Rezidor strives to handle all opera- remains at the hotel. relatively young workforce and try to tional changes in a transparent and

20 Rezidor Sustainability Report | 2008 social

Salaries our employees. Child or forced labour ing in different countries and different Rezidor follows local regulations and is not accepted and does not exist hotels. The Rezidor Hotel Group sup- practices in regards to salaries and within Rezidor’s operations. This is ports transfers throughout the hotels offer fair wages. Rezidor sees an oppor- ensured through local hiring policies in all countries, enabling its employ- results tunity in investing in staff and tries and is monitored carefully. We work to ees to grow with the company and to hard to provide good working condi- rid prevalence of human rights related develop themselves. As much as we tions to retain them. This contributes issues hands-on, strengthening local perceive our guests to be individuals to delivering high quality service, an communities by running a responsible with individual needs and wishes, we important value driver and differentia- operation. also perceive our employees to be indi- tor from other hotel chains and brands. The right of younger workers is viduals with individual backgrounds Personnel costs, such as wages, train- important due to the high degree to and cultures. Employees are hired for ing and benefits, are by far the largest which the hospitality industry employs their attitude and willingness to serve cost for the company, 56% amounting younger people. In 2007, those aged the guest. Cultural differences enable to MEUR 277 (266). Read more on the 15 to 29 accounted for over one third us as an employer and as a host to cater payroll cost and the split of these costs (36.2%) of those working in hotels to the needs of our clientele on an indi- per country on page 88 of the Rezidor and restaurants in Europe (EURO- vidual basis even better. 2008 Annual Report. STAT, 2007). Many hotel jobs are seen Rezidor’s Equal Opportunities Pol- as low-income employment but the icy states that no discrimination due to Human Rights and hotel industry provides a good path for age, race, religion, gender or disability Corruption upward mobility compared to other is allowed, and all our hotels have rou- Rezidor operates hotels in countries industries. tines in place to ensure this is the case. where corruption and human rights issues exist. Key human rights issues Diversity and handling discrimination Responsible investment and for the hotel industry include fair A strong understanding and respect of purchases wages, women’s rights, skills require- cultural differences is important, as we All supplier contracts exceeding ments, the ability to join trade unions employ over 134 different nationalities TEUR 100 or with a contract dura- and collective bargaining. We do not in and we operate hotels in 46 countries. tion of greater than three years must any way participate or condone prac- Diversity amongst the workforce in our be processed through the central pur- tices that breach international declara- hotels is as old as the hospitality indus- chasing department which performs tions. The UN Declaration of Human try itself. It is one of the fundamental screening of human rights on all con- Rights underlies our relationship with steps for an employee to grow by work- tracts. In addition, 71% of hotels ask

2008 | Rezidor Sustainability Report 21 suppliers specifically for policies on been completed with the new Manage- addition to news and media monitor- human rights. ment Development Programme, aimed ing, Rezidor maintains subscriptions to develop, train and prepare existing or to third party risk analysis and alert Anti-corruption measures newly recruited supervisors to become services. We also encourage our hotels In some countries where Rezidor oper- Heads of Deparment. The new pro- to actively engage in safety and security ates there are high risks related to cor- gramme, in combination to the other related forums on a local level. ruption, therefore a Code of Conduct is colourful palette of people development in place and management and staff are tools, is one of the keys to attracting, Risk Evaluation: Our unique on- trained in Responsible Business. These retaining and promoting people to the line self-audit system assists hotels in issues are also covered in our internal company. evaluating how well they are prepared control procedures. Rezidor takes sub- The Mentor Mentee programme is for risks that they may face by guiding stantial measures to ensure that the also designed to prepare the identified them through the objectives set out in ethical behaviour stated in the Code talent for a future General Manager our Four Cornerstones which make up of Ethics is a core value in all business role within Rezidor. It was launched the foundation of our safety and secu- relationships. in 2000 to ensure that the inhabitant rity program: Guest Safety, Employee The Rezidor Hotel Group has not knowledge within the group will be Safety, Operational Security and Fire had any significant incidents regard- taken care of and passed on to the future Safety. ing corruption or bribes causing legal generation of General Managers. actions during 2008. In July 2008, Rezidor launched Incident Response: Our 1-2-3 philoso- a new suite of Responsible Business phy for incident response gives every- People development training (see 2008 Highlight page 2). one in the group a simple formula that and training can be used for even the most complex Rezidor has for many years successfully Health, work-related problems. focussed on having a positive effect accidents and security 1) Sound the Alarm (if something is on the bottom-line through active Rezidor has a safety and security pro- wrong, report it) people management. We offer a range gramme designed to protect guests, 2) Save Lives (make sure no one is of tools in order to attract and retain employees and owners’ investments injured) talented people by hiring for attitude while maintaining or even enhancing 3) Solve the problem and train them to skills. Through the 5 guest and employee satisfaction. One Step People Development Programme of the foundations of the programme Crisis Management and Communi- ambitious employees can strive to the is Employee Safety. We encourage cation: In addition to our guidelines top with our approach to develop from employees to report dangers or aberra- for organising crisis management sys- within. We offer a range of training tions, take immediate action to prevent tems in hotels, all of our General Man- tools geared at our standards, service injury or damage, and to follow-up and agers are able to receive training in the levels and brand representation to all ensure that dangers are removed and program designed to help them: of our employees, who can grow from abnormalities corrected. • understand the components of a crisis there – step by step – to supervisory At Rezidor we understand that and multi-agency response training and then on to the final top maintaining the high levels of safety • lead, direct and encourage a local cri- executive training. and security that guests, employ- sis management team The foundation for the 5 Step People ees and owners rightfully expect is • establish and maintain effective com- Development Programme is the very only achievable through the everyday munications internally and externally successful Business School @ Rezidor. actions of every employee at every level • capably represent the company in In place since 1996 this is how Rezidor in every hotel in every country. We have an emergency or crisis to protect the has put all training under one central a structured risk management agenda image of the company and brand umbrella. In 2008 a total of almost called TRIC=S (Threat assessment + 1,200 Rezidorians were trained through Risk management + Incident response With regard to health and safety leg- this unique vehicle. The Business School + Crisis Management = Safe, Secure islation, hotels are provided with @ Rezidor has a wide range of courses hotels), with proactive behaviour, an overview and quarterly updates spanning from supervisory leadership gathering and sharing information of applicable regulation through an and management training to a Gen- throughout the company. internet-based legal database. As part eral Manager Certification Programme The lines of communication regard- of this database, hotels must complete and business planning for Heads of ing safety and security issues are kept a legal self-audit containing 80 ques- Department. In 2008, the offer has open and the focus is on prevention. In tions based on local environmental and

22 Rezidor Sustainability Report | 2008 Social Results

employee health and safety legislation. sible breach of the code. Therefore we staying with us. In February 2007, we This audit is currently available for have selected Ethics Point and cre- launched a new redemption possibility Denmark, Belgium, France, Ireland, ated rezidorethics.com to receive these for our loyalty members, making it pos- Germany, Norway, Poland, Russia, reports and ensure that they are swiftly sible for them to redeem Gold Points Scotland, Sweden and the UK. Thus it brought to the attention of the appro- to offset the greenhouse gas emissions covers 69% of all managed and leased priate person or persons in The Rezidor related to their stay in our hotel, as well Rezidor hotels. The self-audit has been Hotel Group. as their travel to and from the property. developed by external environmen- We also strive to communicate the tal lawyers and follows both EU and Policy development social and environmental work we do to national legislation. and lobbying our guests through posters, brochures Rezidor does not make any contri- and digital communication material. Business Ethics butions or give other support, direct In addition, we encourage hotels to The Rezidor Hotel Group is committed or indirect, to political parties or communicate their Responsible Busi- to maintaining a high standard of busi- individual politicians. During 2008 ness efforts on their individual web- ness ethics, honesty and integrity in Rezidor was a member of the Interna- sites and we give a general overview line with its Responsible Business pro- tional Hotels & Restaurant Associa- of our approach and the programme gramme encompassing social, ethical tion and the World Travel & Tourism on our corporate website: responsible and environmental responsibility. To Council who perform policy work for business.rezidor.com. guide our hotel and regional office staff, the international hotel industry on Non-smoking policies have become management and employees alike, behalf of their members. Increasingly a significant issue for the hotel indus- about how we want to operate our busi- these organisations also work with try due to many European countries ness and our way of life, we launched a issues related to Responsible Business. implementing smoking bans in public Code of Ethics in spring of 2008. IH&RA works actively with UNEP to areas, which include hotel lobbies and The Code of Ethics and Business promote the message that environmen- restaurants. Countries that already Conduct contains rules and guidelines tal action makes good business sense have banned smoking include Belgium, for our business conduct and responsi- while WTTC hosts the Tourism for Finland, France, Germany, Iceland, bilities vis-à-vis colleagues, customers, Tomorrow Awards which demonstrate Ireland, Italy, Norway, Portugal, Spain, guests, suppliers, shareholders, author- that business success and responsible Sweden and the UK. In addition, we ities and the world at large. tourism practices can go hand in hand. are increasing the number of non- Rezidor is also a founding member of smoking guest rooms from the current The Code in short: the Prince of Wales Business Leaders 77%. As a consequence of the smoking Forum special initiative for the tourism bans that have come into force across 1. We respect the law 2. We show respect for all persons in industry, the International Tourism Europe in recent years, 34% of hotels all situations Partnership which works to drive the are now completely smoke-free. 3. We think ethically responsible tourism business agenda, We also facilitate the well-being 4. We act fairly 5. We do not discriminate against anyone assisting the industry to make a valu- of our guests by offering exercise and for any reason able contribution to the countries and sport facilities with gyms, swimming 6. We are honest and transparent cultures in which they operate, to their pools and spas. Moreover, we endea- 7. We are loyal to our employer 8. We do not exploit the company’s resources customers, their shareholders and vour to ensure that we provide fresh 9. We think of safety at all times future generations. and wholesome food. We continue to 10. We take care of the Earth offer a wide variety of healthy options Product Responsibility at our restaurants. Our hotels endea- We encourage any employee with con- Even though we do not produce or sell vour to accommodate guests with cerns or questions about the code of a tangible product, our customers and food allergies, and 30% of hotels have ethics and business conduct to discuss guests expect us to manage health, allergy tested guest rooms. Hotels also directly with their supervisor. If the safety and security, environmental increasingly offer organic (62%) and supervisor is involved or will not act, and social issues. We aim to meet these fair trade (56%) products. this can and should be reported to the expectations through our Responsible highest supervisor responsible. Business programme. Fines and incidents Additionally, Rezidor recognises One aim is to make it easy for No significant fines for non-compliance that an employee may wish to anony- our guests to participate in the pro- have been incurred during 2008. mously report serious or sensitive gramme, and to do something good for concerns regarding the code or a pos- the environment or community while

2008 | Rezidor Sustainability Report 23 Summary of Progress

Responsible Responsible Business Responsible Business Commitments and Business Policy objectives indicators targets for 2008 Achievements 2008 1. Increase employee Number of hotels and Launch new suite of train- Living and Leading Re- awareness regarding employees with Respon- ing ‘Living Responsible sponsible Business Train- Responsible Business sible Business training Business’ and ‘Leading ing package Completed Responsible Business’ New Responsible Business Training launched at the Business School in July 2008 24 Master trainers and employees 148 Hotel trainers trained We shall educate and facili- who will train our over tate for our employees to 30,000 employees make a conscious decision by end June 2009 in favour of environmental, ethical and social issues in Availability of user-friendly Launch Responsible New Responsible Busi- their private and work lives. Responsible Business Business Manual for ness Manual launched tools for employees employees in February 2009 Launch new Respon- New Responsible Busi- sible Business sec- ness intranet pages tion on the intranet launched in October 2008 2. Foster a responsible Number of hotels All hotels to comply with All hotels comply with working environment that comply with lo- labour law (working hours, local labour laws cal labour laws freedom of association, equal opportunities and non- discrimination) Number of hotels which All hotels to make informa- 89% of hotels pro-actively have communicated tion on rezidorethics.com make information on the new Code of Eth- available to employees rezidorethics.com avail- ics to employees able to employees

3. Increase customer Number of hotels with 60 hotels to obtain third 65 hotels obtained third awareness regard- third party certification party green certification party certification in 2008 ing the Responsible Number of hotels to 90% of hotels to dis- 94% of hotels display Business programme display RB information play RB information Responsible Busi- and our hotels’ in rooms and lobby in rooms and lobby ness communication achievements material and actions in rooms and lobby Number of hotels pre- 50% of hotels to have 58% of hotels have a Re- customers senting their Respon- a Responsible Busi- sponsible Business page We shall inform and make sible Business actions ness page on their on their hotel website it easy for our guests to on their hotel website hotel website participate in Respon- 4. Provide Responsible Number of measures Put in place more 78% of hotels make sible Business related Business actions that to help guests save measures that en- battery collection box activities at our hotels. are easy for guests energy and water con- courage guests to available for guests to participate in sumption and reduce participate in waste 93% of hotels provide waste generation reduction and sorting refillable amenity dispens- ers in public washrooms 25% of hotels provide waste-sorting facili- ties for guests

24 Rezidor Sustainability Report | 2008 Summary of Progress

Responsible Responsible Business Responsible Business Commitments and Business Policy objectives indicators targets for 2008 Achievements 2008 5. Provide a healthy Percentage of hotel rooms 80% of hotel rooms 77% of hotel rooms environment and of- that are non-smoking to be non-smoking are non-smoking fer healthy, nutritious Percentage of fully 34% of hotels are non- organic and fair trade non-smoking hotels smoking (including guest food and beverages rooms and public spaces) Proportion of hotels Minimum of 50% of 62% of hotels provide or- serving organic and/ hotels serving organic ganic certified food items or fair trade foods or fair trade products 56% of hotels serve fair trade certified products Provision of rooms 77 % of hotels pro- adapted for disabled vide rooms certified adapted for disabled Provision of allergy- 30% of the hotels provide tested rooms allergy-tested rooms

6. Inform all property Number of hotel own- Inform owners of at 87% hotel owners in- owners about the Re- ers informed about least 90% of the hotels formed about programme sponsible Business pro- programme and local about the Responsible and local Responsible gramme to facilitate the Responsible Busi- Business Programme Business Action Plan use of best responsible ness Action Plan and local Responsible business practice when Business Action Plan building and renovating Inform owners of Re- 70% of hotels have property sponsible Business discussed Responsible related investments Business related invest- owners ments with owners We shall work together Develop and agree on Responsible Construc- with property owners Responsible Construc- tion and Renovation to find innovative solu- tion and Renovation Guidelines completed tions that satisfy our Guidelines with Tech- economic, environmental nical Department and social objectives.

7. All hotels to comply Percentage of hotels that Maintain high reporting 100% of managed with the reporting report quarterly and an- level from managed and and leased hotels re- requirements of the nually to corporate office leased hotels (100%) sponded to 2 sets of Responsible Busi- mandatory reports ness programme Increase reporting 31% of franchised hotels level to min. 35% from report their Respon- franchised hotels sible Business data Improve accuracy Data accuracy and share- and punctuality of punctuality improved holders data reported substantially during 2008 We shall provide share- 8. Increase financially Responsible Busi- Increase accuracy of 49% of the hotels report holders and investors with related Responsible ness related costs financial implications that they have made timely, accurate and trans- Business information in Responsible Busi- significant environ- parent information on Re- in corporate reporting ness Status Report mental investments sponsible Business related risks and opportunities. Number of dona- Assess donations to 59% of hotels organised tions to charity charity by hotels cash donations to charity

2008 | Rezidor Sustainability Report 25 Responsible Responsible Business Responsible Business Commitments and Business Policy objectives indicators targets for 2008 Achievements 2008

9. Increase the number of Presence of Respon- Include requirement RezPIN includes the Sup- suppliers that fulfil the sible Business criteria for suppliers to sign the plier Code of Conduct and Responsible Business in the RezPIN system Supplier Code of Ethics requires suppliers to sign criteria for suppliers in the RezPIN system Number of hotels using Improve dialogue with Percentage of hotels ask- suppliers that can provide key suppliers on Respon- ing suppliers if they had policies on environment sible Business criteria policies in place regarding: and human rights - Human rights 71% suppliers - Reduction of environ- mental impacts 75% We shall strive to pur- - Ethics 74% chase products that have - Health and Safety 81% a reduced environmental impact during their life- 10. Increase the number Number of corporate Use recycled paper 100% of Respon- cycle, from suppliers that of products purchased communication items for corporate Respon- sible Business commu- demonstrate environmental that comply with printed on recycled/ sible Business com- nication items printed and social responsibility. set Responsible eco-labelled paper munication material on recycled paper Business criteria for Number of energy Increase the number of 64% of hotels have oc- product group and water saving de- energy and water sav- cupancy sensors/mo- vices in hotels ing devices in hotels tion detectors/timers to control lightning in intermittent use areas 82% of guest rooms have low-energy light bulbs (eg CFL, LED) 72% of rooms have low flush WCs

11. Zero number of inci- Number of hotels re- No legal breaches 0 hotels reported legal dents of non-compli- porting legal breaches to legislation breaches to legislation ance with regard to to local legislation Responsible Business Number of countries related legislative covered in legal database demands and inter- national agreements Percentage of hotels 100% of hotels to perform 97% of hotels per- performing Responsible self-audit where available form legal-self audit authorities Business legal self-audit where available We require our managers to abide by local and inter- national legislation, espe- cially regarding labour laws, Health and Safety, human rights and the environment.

26 Rezidor Sustainability Report | 2008 Summary of Progress

Responsible Responsible Business Responsible Business Commitments and Business Policy objectives indicators targets for 2008 Achievements 2008

12. Have a positive influ- Amount of money Raise min. TEUR TEUR 75 raised for World ence and impact on raised for corporate 60 for World Child- Childhood Foundation the local and interna- and local charities hood Foundation tional community Number of hotels par- 160 hotels to join 162 hotels participated ticipating in Responsible Responsible Busi- in Responsible Busi- Business Action ness Action Month ness Action Month Month in Septem- Explore adherence to Joined the Global Com- community ber each year the Global Compact pact in December 2008 We shall take an active role in the international responsible business com- munity, and contribute to the local communities where we operate.

13. Reduce dependence Energy - kWh/m2 Reduc- 5% reduction in energy Energy use measured on fossil fuels and tion of carbon footprint: consumption per guest as kWh per metre

become more energy CO2 equiv. / guest night night for both Park Inn squared decreased by efficient in all areas of and Radisson BLU 6% for Radisson Blu operation without sac- and 14% for Park Inn rificing the guest ex- Number of hotels with re- perience and comfort newable energy solutions 14. Conserve water Water - litres /guest night 5% reduction in water Water consumption environment whenever possible use per guest night measured as litres per We shall do our utmost to without sacrificing the guest night decreased continuously improve our guest comfort and dis- by 3% for Radisson Blu performance in the areas of charge ”clean” water and 7% for Park Inn energy, water, chemicals and resource consumption, Number of hotels using 80% of hotels having and waste generation in water efficient equipment water efficient shower order to reduce our negative heads and taps impact on the environment.

2008 | Rezidor Sustainability Report 27 GRI STANDARD DISCLOSURES TABLE AR = Rezidor 2008 Annual Report SR = Rezidor 2008 Sustainability Report

INDICATOR ACCORDING TO GLOBAL REPORTING INITIATIVE (G3) PAGE NUMBER Profile 1 STRATEGY AND ANALYSIS 1.1 Statement from the CEO SR 1 2 ORGANISATONAL PROFILE 2.1 Name of the organisation AR 78 2.2 Primary brands, products, and/or services AR 64– 65 2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint AR 85, 102–104 ventures. 2.4 Location of organisation’s headquarters AR 78 2.5 Number of countries where the organisation operates, and names of countries with major operations AR 64, 112 2.6 Nature of ownership and legal form AR 49, 61 2.7 Markets served AR 85 – 87 2.8 Scale of the reporting organisation Number of employees; AR 89 Net sales AR 74 Total capitalisation broken down in terms of debt and equity AR 75 Quantity of products or services provided AR 64 Total assets AR 75 Beneficial ownership (including identity and percentage of ownership of largest shareholders) AR 61 Breakdowns by country/ region of sales/ revenues by countries/ regions that make up 5 percent or more of total AR 86 revenues Breakdowns by country/region of costs by countries/ regions that make up 5 percent or more of total revenues AR 86 Breakdowns by country/ region of Employees AR 89 2.9 Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings, closings, and expansions AR 66 – 67 Changes in the share capital structure and other capital formation, maintenance, and alteration operations AR 97–98 2.10 Awards received in the reporting period SR 3, 17 3 REPORT PARAMETERS Report Profile 3.1 Reporting period SR 4 3.2 Date of most recent previous report SR 5 3.3 Reporting cycle SR 5 3.4 Contact point for questions regarding the report SR 30 Report Scope and Boundary 3.5 Process for defining report content SR 4 3.6 Boundary of the report SR 4, 5 3.7 Specific limitations on the scope or boundary of the report SR 4, 5

28 Rezidor Sustainability Report | 2008 Gri Standard Disclosures Table

INDICATOR ACCORDING TO GLOBAL REPORTING INITIATIVE (G3) PAGE NUMBER 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can AR 79 significantly affect comparability from period to period and/or between organisations 3.10 Explanation of the effect of any re-statements of information provided in earlier reports N/ A 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the SR 4, 5 report 3.12 Table identifying the location of the Standard Disclosures in the report SR 28 –30 4 GOVERNANCE; COMMITMENTS AND ENGAGEMENT Governance 4.1 Governance structure of the organisation, including committees under the highest governance body responsible for AR 49–53, specific tasks, such as setting strategy or organisational oversight. SR 12 4.2 Independence of the Supervisory Board Chairman AR 51 4.3 Number of members of the highest governance body that are independent and/or non-executive members AR 51–52 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body The use of shareholder resolutions or other mechanisms for enabling minority shareholders to express opinions to the AR 49 highest governance body Informing and consulting employees about the working relationships with formal representation bodies such as AR 52, 55 –56 organisation level ‘work councils’, and representation of employees in the highest governance body. Stakeholder Engagement 4.14 List of stakeholder groups engaged by the organisation SR 13 4.15 Basis for identification and selection of stakeholders SR 12 5 PERFORMANCE INDICATORS ECONOMIC Aspect: Economic Performance EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change SR 7–9 EC3 Coverage of the organisation’s defined benefit plan obligations AR 95 –96 EC4 Significant financial assistance received from government SR 15 Aspect: Market Presence EC6 Policy, practices, and proportion of spending on locally-based suppliers SR 15 Aspect: Indirect Economic Impacts Core EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through SR 15 commercial, in kind, or pro bono engagement ENVIRONMENTAL Aspect: Energy EN5 Energy saved due to conservation and efficiency improvements SR 17–18 EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy SR 18 requirements as a result of these initiatives Aspect: Water EN10 Percentage and total volume of water recycled and reused SR 19 Aspect: Biodiversity EN14 Strategies, current actions, and future plans for managing impacts on biodiversity SR 19 Aspect: Emissions, Effluents, and Waste EN16 Total direct and indirect greenhouse gas emissions by weight SR 19 EN23 Total number and volume of significant spills SR 18 Aspect: Compliance EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with SR 19 environmental laws and regulations

2008 | Rezidor Sustainability Report 29 Gri Standard Disclosures Table

INDICATOR ACCORDING TO GLOBAL REPORTING INITIATIVE (G3) PAGE NUMBER LABOUR PRACTICES AND DECENT WORK Aspect: Training and Education L A11 Programmes for skills management and lifelong learning that support the continued employability of employees and SR 22 assist them in managing career endings HUMAN RIGHTS Aspect: Investment and Procurement Practices HR2 Percentage of suppliers and contractors that have undergone screening on human rights SR 21–22 SOCIETY Aspect: Public Policy SO5 Public policy positions and participation in public policy development and lobbying SR 23 SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country SR 23 Aspect: Compliance SO8 Fines/sanctions for non-compliance with laws and regulations SR 23

CONTACT If you have any comments, queries or questions, please contact:

Sarah Rooney Manager, Responsible Business Email: [email protected]

The Rezidor Hotel Group Corporate Office Avenue du Bourget 44 B-1130 Brussels Belgium Tel. +32 2 702 9000 Fax +32 2 702 9300

30 Rezidor Sustainability Report | 2008