GROWING SUSTAINABLY MAKING AN IMPACT

THE INDIAN HOTELS COMPANY LIMITED, Corporate Office: 9th Floor, Express Towers, Nariman Point, Mumbai 400 021 Registered Office: Mandlik House, Mandlik Road, Mumbai 400 001

www.ihcltata.com

CORPORATE SUSTAINABILITY REPORT 2018–19

For any feedback / queries, please contact: Mr. Alok Vijayvergiya (Associate Vice President - Sustainability) Tel.: +91 22 6137 1966 | Email: [email protected] CONTENTS 4 MESSAGE FROM THE MANAGING DIRECTOR & 33 ii. Performance CHIEF EXECUTIVE OFFICER 34 EMBRACING ENVIRONMENTAL STEWARDSHIP 6 MESSAGE FROM THE EXECUTIVE VICE PRESIDENT & 36 i. Material Topics GLOBAL HEAD–HUMAN RESOURCES 36 ii. Management Approach 37 iii. Ac�ons and Targets 9 ABOUT THIS REPORT 38 IHCL sets global benchmark with 9 Scope and Boundaries Earth Check Pla�num Cer�fica�on 9 Changes in Repor�ng 38 Solving the Plas�c Menace 9 External Assurance 38 Death of single-use plas�cs 10 COMPANY OVERVIEW in the Andamans 10 About IHCL 38 Promo�ng Biodiversity 10 Brands, Products and Services 39 Stakeholder Voices from Pashan Garh, 11 Organiza�onal Presence A Taj Safari - Panna Na�onal Park 39 Promo�ng reduc�on in dependence of 12 GEOGRAPHICAL PRESENCE local communi�es on Forests 13 Legal Form At the heart of our growth story lie many small but impac�ul stories and 40 Responsibili�es and Resources 14 Workforce 42 Climate Change, Energy and Emissions ini�a�ves that have helped shape our vision for sustainable development. 17 Collec�ve Bargaining Agreements 42 i. Boundary 17 Supply Chain 42 ii. Methodology 17 Significant Changes to the Organiza�on and O�en going beyond the conven�onal boundaries and call of duty, we at IHCL, 42 iii. Energy Performance Supply Chain 47 Water have strived to bring about a posi�ve change to the economy, society and 17 Sustainability Disclosures 47 i. Water Performance 17 Membership of Associa�ons environment around us. We have always consciously worked towards 49 Circular Economy 49 i. Summary sustainable development, focusing on organic growth, conserva�on of energy, 18 PERFORMANCE HIGHLIGHTS 50 ii. Waste Performance environment and its resources, and also community outreach. 19 AWARDS AND ACHIVEMENTS 52 DEEPENING SOCIAL ENGAGEMENT 20 KEY IMPACTS, RISKS AND OPPORTUNITIES 54 Talent Management and Reten�on The theme of the IHCL 2018-2019 Corporate Sustainability Report tells this story 22 ETHICS AND GOVERNANCE 54 i. Management Approach 54 ii. Policies and Commitments of nurturing, sustaining and empowering; even as we con�nue to raise the 22 Values, Principles, Standards and Norms of Behaviour 55 iii. Ac�ons and Targets standards in luxury and hospitality. 22 Mechanisms for Advice and Concerns 55 iv. Responsibili�es 23 Governance Structure 55 v. Performance 61 Safety and Security From baby steps to giant strides for a brighter future, we march ahead with a 24 STAKEHOLDER ENGAGEMENT 61 i. Management Approach relentless pursuit of excellence, innova�on and sustainability; with the TATA 24 Stakeholder Engagement Approach 61 ii. Policies and Commitments 24 Our Stakeholders 61 iii. Ac�ons and Targets Group’s core values ingrained in everything we do. 26 MATERIALITY 63 iv. Responsibili�es 26 Defining Materiality 63 v. Performance 26 Our Material Topics 64 Community Development 64 i. Management Approach 28 GENERATING ECONOMIC VALUE 64 ii. Policies and Commitments 30 Financial Performance 64 iii. Ac�ons & Targets 30 i. Management Approach 66 iv. Responsibili�es 30 ii. Performance 66 v. Performance 31 Customer Delight 31 i. Management Approach 68 ANNEXURE 1: Hotels Covered in the Report 31 ii. Performance 72 GLOSSARY 32 Growth and Scale 32 i. Management Approach 73 ASSURANCE STATEMENT 32 ii. Performance 75 GRI CONTENT INDEX 32 Brand and Reputa�on 32 i. Management Approach 32 ii. Performance 33 Digitaliza�on 33 i. Management Approach MESSAGE FROM THE MANAGING DIRECTOR & It has been an exci�ng year at The Indian Hotels communi�es on the fringes of society. Our key Company Limited (IHCL) and has progressed well on our programmes go beyond charity and leverage key CHIEF EXECUTIVE OFFICER five year strategy – Aspira�on 2022. We are moving business strengths, value chains, partner networks and swi�ly in our transforma�on journey and are firmly employee volunteering to enable capability commi�ed towards improving the triple bo�om line development and empowerment of beneficiaries. We indicators. The Financial Year FY 2018 - 19 saw good focus on skill building programmes in hospitality and financial performance with strong growth in revenue tourism industry for underprivileged and school and profitability metrics. Our interna�onal business dropout youths, thus catering to livelihood genera�on witnessed a healthy turnaround owing to an for the underprivileged sec�ons of the society. Our encouraging performance of hotels in USA and the UK. ini�a�ves are also aligned towards preserving our own We live in an era of transforma�on. Our world is We have revisited and refreshed our brandscape to heritage proper�es and promo�ng the indigenous changing rapidly with the rise of new technologies, cater to diverse, high growth and relevant market culture of our regions, including its natural, cultural & growing environmental concerns and a renewed, segments. We have designed a mul�-product, culinary heritage. mul�-segment brandscape to provide a unique value collabora�ve understanding of economic and social proposi�on to each customer segment at different Safety & Security is of paramount importance to us and value. At the same �me, we remain deeply rooted in points in their lifecycles. With this reimagined our team is making all conscious efforts to provide the brandscape, we augmented our development pipeline safest possible environment for our guests as well as history, with the great legacy of the 150-year old Tata significantly. Our proac�ve asset management our employees. In order to bring more focus towards Group keeping us anchored to our core values of combined with all-round efforts to improve efficiencies risk mi�ga�on, we have revised The Fire and Life Safety integrity, excellence, unity, responsibility and resulted in significant margin expansion and higher (FLS) audits from a score based annual audit to a value for stakeholders. With our focused customer risk-based bi-annual audit. Our Engineers and Security pioneering spirit. centric-approach, we aspire to deliver world-class colleagues par�cipated in the IHCL Safety Champions experience to our guests. programme aimed at building capability on safety We have stepped up our efforts to operate in a prac�ces at hotels. Puneet Chhatwal responsible manner, and in line with IHCL’s Managing Director & Chief Execu�ve Officer commitment to safeguard the environment, we have Our associates are our most valuable assets and they been the flagbearers of responsible tourism through con�nue to make us proud showing their commitment elimina�on of 2 million plas�c straws across all our to our core values while demonstra�ng good business proper�es. Our renewable energy propor�on has taken sense. We have taken addi�onal strides to promote a leap of 23% from 7% in the past three years. In this employee development and gender equality at the rapidly transforming world, our sustainability goals will workplace by taking steps such as sponsored fer�lity certainly evolve as we grow as an industry and new treatments, extended maternity leave, break shi�s, day needs arise in the society. However, our commitment to care centres across all hotels & Corporate Office. crea�ng shared value for our stakeholders, communi�es, and planet will con�nue to remain the We are confident that this culture of collabora�on, bedrock of our strategy. inclusion and our commitment to create shared value for our stakeholders will help us achieve our Our Corporate Social Responsibility theme is based on Sustainability goals for our business. the nature of tourism and hospitality business which focuses on adding value to the livelihoods and cultures of regions we operate in; especially reaching out to MESSAGE FROM It is my pleasure to present IHCL’s Sustainability Report Sustainability by the Indo German Chamber of THE EXECUTIVE VICE PRESIDENT & for 2018-19. It is our con�nued commitment to share Commerce (2018) and Recogni�on for Project on our sustainability journey with all our stakeholders in a Circular Economy at Tata Innovista 2019. We have taken GLOBAL HEAD—HUMAN RESOURCES transparent manner. significant steps to implement Best Prac�ces for Guest and Associate Safety, the key one being our We are happy to share our progress in several areas. collabora�on with a premier ins�tute NITIE, to enhance We have reported a threefold increase in renewable the skills & leadership capabili�es for Sustainability by energy over the past 3 years, been successful in our training our Chief Engineers on a specific module elimina�on of plas�c straws, developed skills in local developed jointly by IHCL & NITIE. This ini�a�ve is also communi�es, and rolled out ini�a�ves for employee a step towards mi�ga�ng the safety risk at our hotels. well-being. It is our endeavour to con�nuously strive to IHCL con�nues to play a leading role within the achieve increasingly sustainable opera�ons. We have hospitality sector. aligned ourselves with interna�onal standards such as the United Na�ons Global Compact which reflects our We hope our commitment to business and sustainability commitment for a sustainable future. We started our is evident through this Sustainability Report. journey by repor�ng for 60 hotels in 2017-18 and true to our commitment last year, this year we have covered 147 units in this disclosure including Ginger & TajSATS. Through this report, which also serves as our 'Communica�on on Progress' (COP), we con�nue our commitment to the United Na�ons Global Compact. Our support to the SDGs, specifically Goal 8 (decent work and economic growth) and Goal 12 (responsible consump�on and produc�on) places our environmental and social programmes within the larger global context and sustainability agenda.

We have partnered with EarthCheck for benchmarking, repor�ng & sharing our performance based on interna�onal best prac�ces. We are proud to share that 8 of our hotels have achieved an EarthCheck Pla�num cer�fica�on in the year 2018-19, represen�ng 10 con�nuous years of measuring and monitoring our social and environmental impact to ensure sustainable tourism management prac�ces. IHCL has been a proud recipient of numerous awards in this space including the Na�onal Award for Best Environment Sustainability at The World CSR Congress 2018, Award for Outstanding Contribu�on towards Best Sustainable Business Prac�ces by the Indo German Chamber of Commerce (2018), Recogni�on for Supply Chain

P. V. Ramana Murthy Execu�ve Vice President & Global Head-Human Resources ABOUT THIS REPORT

SCOPE AND BOUNDARIES CHANGES IN REPORTING

The 14th Sustainability Report of The Indian Hotels Our priority material topics are consistent with the last Company Limited (IHCL) covers the economic, social and report in 2017-18. This year however, we have environmental aspects of the business. It spans the conducted a formal internal stakeholder engagement period from April 2018 to March 2019, corresponding process and have explored these priority topics in with the Indian Financial Year (FY). IHCL has been greater detail. publishing its Annual Sustainability Report since FY 2001-2002. The current report covers 141 hotels & 6 loca�ons of TajSATS as compared to 60 hotels covered in the This report covers all IHCL hotels including Ginger & 2017-18 report. TajSATS. Details of all en��es are available in Annexure-1 This report has been prepared in accordance with the GRI Standards: Core Op�on. The focus of the report is This report covers 141 of our hotels & 6 loca�ons of on topics that are material both to the business and to TajSATS. It includes hotels owned by The Indian Hotels our stakeholders. Company Limited (IHCL) and its subsidiaries Benares Hotels Limited (BHL), Piem Hotels Limited (Piem), United Hotels Limited (UHL), the joint venture Taj GVK Hotels Limited (GVK), Ginger Hotels and some hotels EXTERNAL ASSURANCE under management contracts. The complete list of hotels covered in this report is provided in Annexure 1. We have sought external assurance for this report, Except where specified, the disclosures in this report which has been carried out by Ernst & Young Associates refer to this set of 141 hotels & 6 loca�ons of TajSATS. LLP; the assurance provider’s statement is presented in The data in this report pertains to all significant regions the final sec�on of this report. External assurance for of opera�on. Data is therefore not segregated this report has been recommended and approved by according to region. the IHCL Sustainability Advisory Commi�ee.

The hotel units are at different levels of data tracking and implementa�on of sustainability prac�ces. This sustainability report has helped us to iden�fy gaps and areas for further improvement in standardizing performance measurement and disclosure prac�ces. For addi�onal clarity, we offer a descrip�on of data coverage where appropriate throughout the report.

There are no restatements of informa�on from previous reports.

8 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 9 COMPANY OVERVIEW ORGANIZATIONAL PRESENCE

ABOUT THE INDIAN HOTELS COMPANY LIMITED

The Indian Hotels Company Limited (IHCL) is among Joy, we are focused on growing sustainably to bring 179 HOTELS Asia’s leading hospitality companies, with 165+ hotels about a posi�ve change to the economy, society and (INCLUDING PIPELINE, in 80 loca�ons globally. Launched in 1903, we offer a environment and create value for each of our 149 HOTELS OPERATIONAL) fusion of warm Indian hospitality and world-class stakeholders. service. Anchored to the pillars of Trust, Awareness and

22000 + ` 7474 Cr. BRANDS, PRODUCTS AND SERVICES ROOMS INCLUDING TOTAL CAPITAL PIPELINE EMPLOYED Our por�olio spans mul�ple segments and customer TajSATS provides air catering services as well as `5,148 Cr. profiles in the hospitality industry in India, North non-airline services. Corporate products include Taj EQUITY America, the UK, South Africa, Zambia, UAE, Malaysia, Wedding Studios, Timeless Weddings, Taj Holidays and Sri Lanka, Maldives, Bhutan and Nepal. Our iconic Taj the Taj Experiences Gi� Card. All these, along with the `1,925 Cr. hotels are the core of our luxury offerings, while the Taj Salon, the Taj Khazana chain of lifestyle bou�ques, DEBT Vivanta hotels dominate our upscale segment. The and our specialty restaurants and bars, come together Ginger brand addresses the midscale and economy in a por�olio that aims to meet the high expecta�ons of segment. We offer adventure and back to nature our luxury guests, business travellers and smart experiences at our Taj Safaris lodges, and a holis�c customers. approach to wellness at the Jiva Spas. 32,670 41,70,000 EMPLOYEES ROOM NIGHTS

Revenues: `4,595 Cr. up 10% y-o-y

10 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 11 GEOGRAPHIC PRESENCE

68

2 42 1 3 1 3 6 1 2 INDIA 2 16 58 55 5 4 65 6 54 7 2 23 31 29 USA Middle East Asia 69 35 26 47 1 - San Francisco 1 - Dubai 1 - Meghavli 30 4 5 59 2 - Boston 2 - Makkah 2 - Kathmandu 78 38 1 3 - New York 3 - Thimpu 63 64 4 - Langkawi 57 5 - Colombo 8 6 - Bentota 75 7 - Maldives 13 34 28 36 40 66 3 24 76 12 7 60 39 70 77 46 41 62 1. Agartala 29. Gurgaon 57. Panna 51 14 2. Agra 30. Guwahati 58. Pantnagar 53 71 3. Ahmedabad 31. Gwalior 59. Patna 50 4. Ajmer 32. Havelock 60. Pench 27 5. Alwar 33. Hyderabad 61. Pondicherry 33 6. Amritsar 34. Indore 62. Pune 81 7. Aurangabad 35. Jaipur 63. Rajasthan 11 80 8. Bandhavgarh 36. Jamshedpur 64. Ranthambore 9. Bengaluru 37. Jhansi 65. Rishikesh 10. Bekal 38. Jodhpur 66. Sanand 71 10 11. Belgaum 39. Junagadh 67. Shimla 1 82 12. Bharuch 40. Kanha 68. Srinagar 49 56 32 18 17 13. Bhopal 41. Karad 69. Surajkund 15 21 14. Bhubaneshwar 42. Katra 70. Surat 22 20 15. Calicut 43. Kolkata 71. Thane Africa UK 16. Chandigarh 44. Kovalam 72. Tirupati 79 15 9 17. Chennai 45. Kumarakom 73. Tirupur 1 - Lusaka 1 - London 45 48 18. Chikmagalur 46. Lonavala 74. Trivandrum 2 - Cape Town 1 19 19. Cochin 47. Lucknow 75. Udaipur 2 44 20. Coimbatore 48. Madurai 76. Vadodara 74 21. Coonoor 49. Mangalore 77. Vapi Map not to scale 22. Coorg 50. Margaon 78. Varanasi 23. Corbett 51. Mumbai 79. Varkala 24. Dwarka 52. Mysore 80. Vijayawada 25. Ernakulam 53. Nashik 81. Vizag 26. Faridabad 54. New Delhi 82. Wayanad LEGAL FORM 27. Goa 55. Noida THE NATURE OF OWNERSHIP AND LEGAL FORM IS DESCRIBED IN PAGES 85-102 OF OUR INTEGRATED REPORT. 28. Gondia 56. Ooty 12 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 13 WORKFORCE As a global company emphasizing on quality of service, Our workforce is composed of permanent employees the diversity and opera�onal skills of our employees (72%) and contractual employees (28%). Contracted are crucial for growth and compe��veness. Our aim is employees perform opera�onal roles in ver�cals such as to acquire the best talent and provide opportuni�es hor�culture, cleaning, security, kitchen stewarding and for growth and learning, with a focus on local laundry, and are sourced through third-party contractors. employment and enhancing the presence of women in Workforce data is compiled from the corporate Human the workforce. Resources Management System (HRMS), which consolidates data across all business units.

IHCL (INDIA + INTERNATIONAL) TOTAL EMPLOYEES BY CONTRACT (PERMANENT VS CONTRACTUAL), REGION & GENDER

INDIA INTERNATIONAL INDIA INTERNATIONAL OPERATIONS OPERATIONS OPERATIONS OPERATIONS 15,963 3,366 6,693 650

13,216 2,747

2,472 894

PERMANENT STAFF THIRD-PARTY CONTRACTUAL STAFF 26,672 7,343

Grand Total: 26,672

The following data pertains to IHCL’s business in its en�rety in the detailed disclosures of this report.

GINGER (45 HOTELS AND ALSO CORPORATE & REGIONAL OFFICES) & TAJSATS (6 CATERING UNITS)

TAJSATS GINGER HOTELS TAJSATS GINGER HOTELS 6,375 3,777 2,874 1,551

3,360 1,965

141 261 THIRD-PARTY CONTRACTUAL STAFF PERMANENT STAFF

Grand Total: 10,152

14 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 15 COLLECTIVE BARGAINING AGREEMENTS SUSTAINABILITY DISCLOSURES

Employee unions and collec�ve bargaining en��es are present in 17 of our hotels. In the hotels where collec�ve bargaining pla�orms exist, 42.3% of our employees are members.

We support the UN Sustainable Development Goals, in SUPPLY CHAIN par�cular Goal 12 (Resource consump�on and op�miza�on) through our environmental As a hospitality business, we are large-scale buyers of a commitments, and Goal 8 (Decent work and economic variety of products. Our procurement processes are growth) through our CSR programme. This is reinforced organized at two levels — central and regional. Our by our voluntary par�cipa�on in the United Na�ons Central Materials Group manages rela�onships with Global Compact (UNGC) since 2005. We also report to large, branded business partners who supply essen�al the CDP every year since 2010. items to mul�ple loca�ons based on our brand standards and through company-wide contracts. Our regional procurement is managed by Area Materials Managers and Hotel Materials Managers, who organize MEMBERSHIP OF ASSOCIATIONS procurement from local suppliers in each business We par�cipate in industry associa�ons relevant to the loca�on. They are supported by the Central Materials hospitality sector and in trade associa�ons, which are: Group as required. 1. Hotel Associa�on of India - HAI Our supply chain partners include major brands, 2. World Travel and Tourism Council India Ini�a�ve - small-scale suppliers of perishable items, and providers WTTCII of entertainment services such as ar�sans and tourist 3. The Confedera�on of Indian Industry - CII guides, and third party contractors. Our larger value chain also includes providers of logis�cs and transport 4. Federa�on of Indian Chambers of Commerce and services, downstream services such as waste Industry - FICCI management, and professional support services such 5. World Tourism Organiza�on - UNWTO as auditors. The procurement of construc�on and 6. The Federa�on of Hotel & Restaurant Associa�ons building materials for new hotels and hotels under of India - FHRAI renova�on is managed jointly by the Corporate Real Estate and Technical Services Team and the Central 7. Indo-German Chamber of Commerce - IGCC Materials Group. 8. Indian Merchant Chambers - IMC In 2018-19, we sourced a total of `1,248 Crores worth of 9. Travel Agents Associa�on of India - TAAI products and services from more than 13,000 suppliers. 10. Travel Agents Federa�on of India - TAFI 11. U.S.-India Business Council - USIBC 12. Interna�onal Conven�on Promo�on Bureau - ICPB SIGNIFICANT CHANGES TO THE ORGANIZATION AND SUPPLY CHAIN 13. Pacific Asia Travel Associa�on - PATA 14. Tourism Sectors Skills Council, Na�onal Skill In 2018-19, we have completed 22 new signings. Development Commi�ee (NSDC), India A descrip�on of our share capital structure and any related changes is available in our Integrated Report. 15. CII - CSR & Affirma�ve Ac�on Comi�ee There have been no significant changes in the 16. Interna�onal Tourism Partnership - ITP structure of the supply chain, or in loca�ons and 17. World Tourisum Forum Lucerne - WTFL rela�onships with suppliers.

16 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 17 AWARDS & ACHIEVEMENTS

GALLUP GREAT WORKPLACE AWARD EARTHCHECK CERTIFICATIONS IHCL received the pres�gious GALLUP Great Workplace IHCL set a global benchmark in hospitality for Award 2019. An eight-�me winner of the award, IHCL environmental sustainability with eight of its hotels is the only Indian hospitality company on the list. being awarded Pla�num Cer�fica�ons and 60 hotels PERFORMANCE HIGHLIGHTS receiving Gold Cer�fica�ons.

INDO-GERMAN CHAMBER OF COMMERCE (IGCC) IHCL was recognized by the IGCC for its Outstanding NATIONAL CSR LEADERSHIP CONGRESS AND AWARDS Contribu�on towards Best Sustainable Business IHCL won the Na�onal Award for Best Environment PLANET Prac�ces by a Large Enterprise & Recognition for Sustainability 2018. Supply Chain Sustainability

ETHICAL BOARDROOM CORPORATE GOVERNANCE THE INSTITUTE OF COMPANY SECRETARIES OF INDIA AWARDS (ICSI) IHCL received top honors at the Ethical Boardroom NATIONAL AWARDS IHCL received a Cer�ficate of Corporate Governance Awards 2018. Recogni�on for Excellence in Corporate Governance. More than 23% Number of proper�es powered Number of EarthCheck* of energy sourced from by renewable energy: 24 cer�fied hotels: 81 FREDDIE AWARDS renewable sources like Pla�num: 8 | Gold: 63 CFI.co CORPORATE GOVERNANCE AWARDS Taj InnerCircle was bestowed with the special 210 Award in the hotel category for the Middle wind and solar Silver: 8 | Bronze: 2 IHCL’s iconic brand Taj was awarded the Best Hospitality Corporate Governance Award in India. East/Asia/Oceania region for Strongest Performing Program off the Radar of Voters.

TELEGRAPH UK TRAVEL AWARDS PEOPLE Taj ranked #2 in the list of the World’s Best Hotel CONDE NAST TRAVELLER US & UK GOLD LIST Groups. Umaid Bhawan Palace, Jodhpur, one of the most awarded hotels in the world, featured on the globally acclaimed Gold List.

CONDÉ NAST TRAVELLER HOT LIST Taj Exo�ca Resort & Spa, Andamans was acknowledged CII NATIONAL AWARDS as one of the Best New Hotel Openings in the World. Taj Krishna, Hyderabad was awarded as the Excellent Energy Efficient Unit.

THE FEDERATION OF HOTELS & RESTAURANT ASSOCIATIONS OF INDIA (FHRAI) TATA INNOVISTA 2019 Taj Lands End, Mumbai was awarded as the Green Hotel Recogni�on for Project on Circular Economy. Trained 300 sustainability 4551 No. of beneficiaries Social Impact Enterprises have of theYear in Sep. 2018. champions internally impacted by Tata Strive & Golden been supported & engaged as Threshold Livelihood Skilling suppliers, benefi�ng over TFEATURED ON WORLD WILDLIFE FUND EARTH HOUR Program 1100+ families including less WORLD WILDLIFE FUND VIDEO priviledged women, ar�sans, Recogni�on for celebra�on of Earth Hour at IHCL. The Umaid Bhawan Palace, Jaipur Switch-off Footage was differently-abled & cancer-affected featured in the Asia-Pacific Earth Hour Video on 30th people March.

18 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 19 KEY IMPACTS, RISKS AND OPPORTUNITIES

IHCL’s industry-specific, company-specific risks and financial risks and opportuni�es are described in our Integrated Report.

ENVIRONMENTAL SOCIAL ECONOMIC

As a business opera�ng in several places of touris�c In each loca�on, the inflow of our guests and Sharing the economic benefits of our business is to display and sell their arts, extending scholarships to and historical importance, as well as in major ci�es, our employees from diverse backgrounds calls for impera�ve for successful and sustainable opera�ons. students, and implemen�ng food security programmes environmental impacts include crea�on of waste, sensi�vity to local cultures and prac�ces. Poten�al We make focused efforts to ensure that local to communi�es are all part of our efforts to share discharge of sewage, energy and water usage, and CO2 impacts could include increased pressure on cultural communi�es share in the benefits of our presence by economic benefits with the community. For more heritage sites, dilu�on of local tradi�ons due to maximizing local employment, providing business emissions from our opera�ons. Due to the nature of informa�on, please refer to pages 28-33 of this report. commercializa�on, and immediate impacts such as opportuni�es for suppliers, and training opportuni�es business, the crea�on and transport of hazardous increased traffic and noise. We aim to minimize these for youth and women. Offering opportuni�es to ar�sans waste, large scale air pollu�on and effluent discharge by implemen�ng cultural and heritage conserva�on are not significant impacts. However, we are aware that programmes designed in collabora�on with local our presence in remote loca�ons opens up these residents’ associa�ons and NGOs, by employing local places to higher tourist foo�all and could have staff, training our employees in culturally-appropriate long-term implica�ons for the quality of the natural behavior, and sensi�zing our guests to local prac�ces environment. For more informa�on on our and customs. For more informa�on on our social environmental opportuni�es, risks and management of opportuni�es, risks and management of these risks, these risks, please refer to pages 34-51 of this report. please refer to pages 52-67 of this report.

20 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 21 GOVERNANCE STRUCTURE ETHICS AND GOVERNANCE At IHCL, governance, ethics and sustainability are the overall responsibility of the Board, with its Commi�ees playing key roles in iden�fying, mi�ga�ng and managing ESG risks and material issues. The Corporate Social Responsibility and Sustainability Commi�ee reviews our sustainability performance, recommends realignments and reviews policies As a Tata Company, Corporate Governance is a way of life at The Indian Hotels Company Limited (IHCL). Our governing sustainability and CSR prac�ces. At the management level, the Sustainability Advisory Commi�ee meets philosophy on Corporate Governance finds its roots in the rich legacy of ethical governance prac�ces, many of which every quarter to mentor the sustainability and CSR teams. Its role includes reviewing performance, addressing major were in place even before they were mandated. As a Company with a strong sense of values and commitment, we opera�onal concerns, ve�ng new ini�a�ves and sugges�ng improvements in implementa�on. The Sustainability and believe that profitability must go hand in hand with a sense of responsibility towards all stakeholders. This is an CSR teams report to the Global Head of Human Resources, and liaise closely with the Engineering, Procurement, HR, integral part of our Company’s business philosophy. The cardinal principles such as independence, accountability, and Learning and Development departments in each hotel. Security, Food Safety, Fire and Life Safety being cri�cal responsibility, transparency, trusteeship and disclosure serve as means for implemen�ng the philosophy of Corporate sustainability related ver�cals within the Company, these teams report directly to the IHCL Board. Governance.

The Corporate Governance philosophy is further strengthened with the adherence to the Tata Business Excellence Model as a means to drive excellence for tracking progress on long term strategic objec�ve as also the Tata Code of Conduct, and the Tata Code for Preven�on of Insider Trading and Code of Corporate Disclosure Prac�ces.

VALUES, PRINCIPLES, STANDARDS MECHANISMS FOR ADVICE AND AND NORMS OF BEHAVIOR CONCERNS

IHCL has adopted the Tata Code of Conduct, which lays Mechanisms for advice and concerns (102-17) down principles for management and employees to Training on these guidelines is part of the annual carry out their responsibili�es in an ethical manner. learning and development calendar of associates at our Adherence to the Code of Conduct is also essen�al for hotels, and is included in interac�ons with partners, our key business partners. All new employees are such as the annual supplier mee�ngs. Complaints and inducted into the Code of Conduct, which is integrated concerns can be raised through a third-party ethics CORPORATE into their employment contracts as well as contracts helpline, which is monitored by the Chief Human BOARD COMMITTEES SOCIAL RESPONSIBILITY AND with suppliers, owners and other partners. Further, all Resources Officer to ensure inves�ga�on and closure. SUSTAINABILITY COMMITTEE senior execu�ves have to annually sign off and adhere The Company has revised the Whistle-Blower policy to to the An�-Bribery and An�-Corrup�on policy. The insert “repor�ng of incidents of leak or suspected leak Responsible for Responsible for Reviews IHCL’s sustainability governance, ethics and iden�fying, mi�ga�ng performance, recommends Preven�on of Sexual Harassment Policy is strictly of Unpublished Price Sensi�ve Informa�on (UPSI)” in sustainability and managing ESG risks realignments and reviews policies enforced at all levels of the organiza�on and reinforced terms of Securi�es and Exchange Board of India and material issues governing the sustainability and through regular trainings. All these policies are placed (Prohibi�on of Insider Trading) Regula�ons, 2015, as CSR prac�ces on the company’s intranet for easy access to all amended from �me to �me and the revised policy was employees globally. These policies are also available on approved by the Audit Commi�ee and the Board. The our website said policy is available on the Company’s website at www.tajhotels.com/en-in/about-taj-group/investors/pol h�ps://www.ihcltata.com/investors/. Employees can icies/ use this mechanism to raise their concerns rela�ng to fraud, malprac�ce or any such ac�vity by approaching the Ethics Counsellor or Chairman of the Audit Commi�ee.

22 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 23 WHY THEY ARE HOW WE DELIVER STAKEHOLDER KEY PRIORITIES HOW WE ENGAGE IMPORTANT VALUE

CUSTOMERS • Our ins�tu�onal and • Service quality • Direct feedback • 41,70,000 room nights STAKEHOLDER ENGAGEMENT retail customers access from guests during during the year • Differen�a�on and our services, and a�er each product relevance cons�tu�ng the primary experience source of revenue for • Safety and privacy • Loyalty programme the Company. • Ethical business • Real �me social • Customer loyalty and prac�ces APPROACH TO ENGAGING OUR means to connect suitably with our hotels or corporate media engagement long-term rela�onships • Environmental STAKEHOLDERS (102-43) office for any queries, concerns or request for details. add to the • Periodic market impact Within our company, roles and responsibili�es are dis�nc�veness of the research As we take strides towards realizing our Aspira�on well-defined and individuals duly empowered to brand. 2022, our ac�ons con�nue to be guided by a relentless respond in a fair, transparent and �mely manner. focus crea�ng shared and sustained value for the SHAREHOLDERS • Shareholders are key • Financial • Investor meets, • 50% dividend proposed stakeholders in our performance and AGM, public and • Market capitaliza�on up Company and all our stakeholders. This will become Company and delivering dividends media 21% over the previous year (102-42) value to them is our announcements even more cri�cal as we grow in scale, become part of • Good governance priority. new communi�es and work with new value chain • Integrated Report The key stakeholder groups of the company are outlined • Transparency partners. For new projects, we follow an inclusive • Support from our and sustainability below, along with details of how we engage and deliver shareholders and • Growth and disclosures process where the relevant stakeholders are consulted investors is essen�al to expansion value to them. Our engagement processes include both • Dedicated investor finance our growth and early on in order to keep them abreast of our objec�ves • Opera�onal and rela�ons formal pla�orms for interac�ons that follow pre-deter- develop the Company and take note of their genuine concerns. As a resource department mined engagement frequency as well as need-based efficiencies responsible corporate, we are sensi�ve to the faith and outreach that occurs from �me to �me. Key priority expecta�ons that our stakeholders place on us. We areas and concerns of stakeholders are assessed OWNERS AND • Hotel owners are our • Business • Annual partner • Revenues shared with endeavour to enhance the posi�ve impacts of our individually and collec�vely, and the Company’s PARTNERS partners in business performance meet asset owners through opera�ons and in license fees and other opera�ons and address any nega�ve externali�es • Health of assets • Ongoing response strategies are carefully developed and sustainability. partnership models communica�on through preven�ve measures or suitable mi�ga�on • Opera�onal and effec�vely communicated. Specific metrics are in place • Alignment of priori�es from business • Emphasis on efficiency resource measures. with owners is cri�cal development and maintenance of to assess responsiveness and sa�sfac�on levels as well efficiencies for efficient opera�ons department infrastructure At IHCL, we ensure an open and accessible environment as a broader range of measures through which we and business where any stakeholder, internal or external, has the create value for the stakeholders. performance.

SUPPLIERS • Our suppliers provide • Quality and • Supplier • ` 7+ crores worth of goods OUR STAKEHOLDERS materials and services availability of goods development and services sourced that influence the and services ini�a�ves through NGOs and quality of our • Resource efficiency • Supplier feedback inclusion efforts customers’ experiences. surveys throughout WHY THEY ARE HOW WE DELIVER • Supplier • 2,600 suppliers engaged in STAKEHOLDER KEY PRIORITIES HOW WE ENGAGE • Supplier rela�onships the year IMPORTANT VALUE development supplier development ensure efficiency, • Annual suppliers’ ini�a�ves quality, reliability and an meet ethical value chain. • 60% suppliers are with EMPLOYEES • Our people are at the • Professional growth • Monthly Town halls, • ` 703.85 Crores of salaries • On-boarding IHCL for four years core of our business and and skill regular employee and benefits & ` 32 lakhs process and their skills dis�nguish development briefings and in Employee Engagement constantly open our brand. internal • Work-life balance Ini�a�ves & Recogni�ons communica�on communica�on • Skilled and mo�vated channels • An enabling work • ` 7.87 Crores invested in associates are essen�al • Annual calendar of environment employees’ learning and to be able to implement skill and knowledge development. LOCAL • A posi�ve rela�onship • Local employment • CSR partnerships • ` 8.54 Crores invested in our growth plans. • Safety trainings with local communi�es • Performance appraisals COMMUNITY • Environmental • Minimiza�on of communi�es through CSR • Employee ensures our social and career development protec�on environmental • 7034 persons skilled and commi�ees, ac�vity license to operate support for 100% of footprint cer�fied through groups, union • Community employees • The development of employability training mee�ngs development • Community welfare communi�es programmes contributes to the • Preserva�on of • 2 heritage sites and 30 health of des�na�ons in culture and • Par�cipa�on in public loca�ons adopted which we operate and heritage neighborhood and maintained the long-term viability associa�ons of our opera�ons. • Annual volunteering calendar

24 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 25 SUSTAINABILITY MATERIAL TOPICS TOPIC DEFINITION MATERIALITY DIMENSION

Environmental Stewardship

DEFINING MATERIALITY (102-46) We stay commi�ed to Climate Change, Energy & Op�mize our energy management to reduce our specific nurturing a culture of Emissions energy consump�on and greenhouse gas emissions. Our Sustainability Priori�es responsibility and care towards the planet. We have We had previously undertaken a structured process to iden�fy the key topics material to our company under the three upped our sustainability Water Effec�ve water management to reduce our water use quo�ent with focused efforts intensity, including steps taken to recycle water. dimensions of economic, environmental and social performance, as presented in our Sustainability Report FY 2017-18. on conserving water, While these priority topics con�nue to guide our strategies and ac�ons, we conducted focused discussions with our reducing carbon emissions, senior management during FY 2018-19 to re-validate our priori�es and be�er align them with a changing external enhancing renewable energy Circular Economy Minimizing waste and maximizing the end-of-life value to use and phasing out of decrease our natural resource footprint. environment. The refreshed list of material topics, reviewed by an independent third party, is presented below. single-use plas�c.

ENVIRONMENTAL SOCIAL VALUE CHAIN Social Responsibility SCALABILITY STEWARDSHIP RESPONSIBILITY TRANSFORMATION With inclusion and business Talent Management & A�rac�ng and retaining individuals with the right knowledge, • Economic Performance • Climate Change, Energy • Talent Management & • Procurement Prac�ces responsibility embedded in Reten�on and skills by providing them rewarding careers and an & Emissions Reten�on our DNA, we con�nue to enriching experience. weave a 'thread of intent' by • Growth & Scale • Water • Employee Health & Safety • Sustainable Supply Chain making a difference in Employee Health & Safety Ensuring health and safety of all employees through risk • Customer Delight • Circular Economy • Customer Health & Safety communi�es where we assessments, effec�ve policies, �mely interven�ons and operate our hotels. proac�ve trainings. • Digitaliza�on • Diversity & Equal Opportunity Customer Health & Safety Offering a healthy and safe experience to our customers by • Brand, Reputa�on & • Social Inclusion & establishing robust infrastructure and well-trained staff at all Communica�ons Development our premises.

Diversity & Equal Upholding diversity and equal opportunity among all our Opportunity employees through well-established policies, ini�a�ves and culture-building. OUR MATERIAL TOPICS Social Inclusion and An inclusive and collabora�ve approach towards helping Development improve the quality of life and giving back to the communi�es SUSTAINABILITY that we serve. MATERIAL TOPICS TOPIC DEFINITION DIMENSION Value Chain Transforma�on Scalability We are striving for many Procurement Prac�ces Suppor�ng the growth and capability development of our We will con�nue to Economic Performance Key economic performance parameters of the Company, business changes associated supplier and vendors, efficient procurement prac�ces, and re-structure, re-engineer and covering the direct economic value generated, retained and with modifying our value emphasis on local and indigenous procurement. re-imagine the Company’s distributed. chain. We want to op�mise por�olio in line with our our infrastructure processes Aspira�on 2022. Growth & Scale Growth in inventory across mul�-product, mul�-segment and systems and promote Supply Chain Sustainability Holis�c improvement in our supply chain that addresses the categories to meet the growing demands of the discerning local procurement to deliver environmental and social impacts and externali�es. traveller, through leveraging our business enablers. compe��ve customer service. Customer Delight Exceeding customer expecta�ons and crea�ng a posi�ve emo�onal connect.

Digitaliza�on Driving digital to strengthen compe��veness, achieve service excellence and make core opera�ons faster, be�er streamlined and more efficient.

Brand, Reputa�on & Reimagining the brand landscape to build on the Communica�ons opportuni�es across categories, protec�ng and enhancing reputa�on through effec�ve communica�ons.

26 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 27 1: GENERATING ECONOMIC VALUE

28 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 29 Re-engineer focusses on expanding margins, embracing 1.1: FINANCIAL PERFORMANCE 1.2: CUSTOMER DELIGHT technology and engaging with our people. We are These products have received encouraging response expanding margins by strengthening a culture of from IHCL’s patrons as reflected in higher conversion MANAGEMENT APPROACH opera�onal excellence. We are re-imagining our service MANAGEMENT APPROACH rate from e-commerce, higher number of transac�ons offerings, brandscape and reach. Our 3M (Manoeuvre, and healthy growth in web revenues. The Company also Strong business performance is a key expecta�on of our Manage and Mul�ply) approach enables us to build the Strong business performance is a key expecta�on of our invested in building a 3600 system, which with process shareholders. It enables us to extend employment and new IHCL. We have performed encouragingly well in the shareholders. It enables us to extend employment and improvements will enable be�er customer engagement. livelihood opportuni�es to communi�es and suppliers, first year and have exceeded some of our targets for the livelihood opportuni�es to communi�es and suppliers, Other improvements were broad-based across Data enable the growth of our employees, and offer our first year. We have achieved 184% increase in PAT enable the growth of our employees, and offer our Management, Virtualiza�on, Gigabit Networks and customers memorable experiences. figures, 22 new signings & 19.9% EBIDTA margin. customers memorable experiences. Technology investments to enhance employee Detailed strategy, results & scorecard is available in our engagement. The Company con�nues to pursue Integrated Report from Page no. 30-37. emerging technologies with a focus on enhancing guest POLICIES AND COMMITMENTS POLICIES AND COMMITMENTS experience and produc�vity. We are commi�ed to providing transparent and �mely The hospitality industry is constantly evolving, with the During the year, we conducted key high-profile events informa�on to all our stakeholders. Our dedicated emergence of new peers and business models. Our FINANCIAL PERFORMANCE to step up engagement with our customers. investor rela�ons department ensures prompt customers seek unique and memorable experiences, responses to queries and concerns from ins�tu�onal 201-1 Direct Economic Value Generated while also expec�ng the local flavors that dis�nguish our brand. Deligh�ng our customers enables us to stay and individual shareholders, analysts, and other and Distributed concerned stakeholders. This is in parallel to periodic relevant and differen�ate ourselves in a dynamic press releases and other public communica�on about market. We offer customized service offerings, ac�ve Economic Value financial performance. Generated: ` 2,870.91 Cr. digital engagement and an excep�onal loyalty programme to create memorable experiences for The financial and statutory data presented is in customers across segments and price-points. We Revenues ` 2,870.91 Cr. Hosted a Black Celebrated 40 'Best Rate accordance with the Companies Act, 2013 (and rules believe in best-in-class customer service and higher Tie Charity Ball years of Guarantee' base of loyal customers. on December 15, The Taj Mahal and 'Book Direct' made thereunder), Indian Accoun�ng Standards, the Economic Value Securi�es and Exchange Board of India (Lis�ng Distributed: ` 2,520.62 Cr. 2018 at The Taj New Delhi in campaigns Mahal Palace August 2018, targeted at Obliga�ons and Disclosure Requirements) Regula�on Mumbai to showcasing loyalty audience 2015 and Secretarial Standards issued by the Ins�tute of Opera�ng Costs ` 1,415.43 Cr. ACTIONS AND TARGETS celebrate its treasured Company Secretaries of India 115th memories since Employee Wages Our esteemed customers have made us what we are, Anniversary 1978 ` More detailed informa�on on our Annual Financial and Benefits 703.85 Cr. and we cherish their long-standing associa�on with us. Report and Dividend Distribu�on Policy is available on We con�nuously refresh and realign our strategies to our website h�ps://www.ihcltata.com/investors/ Payments to Providers meet and exceed their evolving needs and preferences. of Capital (Finance Costs) ` 158.64 Cr. Our customers encompass the en�re spectrum of guests from those seeking best-in-class luxury Payments to Government ` experiences to the millennials focused on niche and ACTIONS AND TARGETS (Direct Taxes including DDT) 176.88 Cr. localized experiences. Eminent personali�es from the world of poli�cs, business, sports and entertainment To make IHCL the most iconic and profitable hospitality Dividend paid out ` 59.47 Cr. company in South Asia, we rolled out a strategy plan have lauded our services and are amongst our loyal called Aspira�on 2022. The strategy ar�culates all the Community patrons. Our brand concepts and service offerings are ` 6.35 Cr. macro and micro focus areas to grow the business, investments (CSR) geared to make their experience an unforge�able one. capture emerging opportuni�es and enhance efficiencies and profitability significantly. Aspira�on Economic Value ` IHCL’s digital pla�orms ensure a seamless customer Retained: 350.285 Cr. 2022 strategy is based on three pillars, Re-Structure, experience every �me they engage with it. During FY Re-engineer & Re-Imagine. In Re-structure as a part of 2018-19, the Company made requisite investments and our plan, we focus on '3S' namely Scale, Simplify and launched mul�ple pla�orms, including: New IHCL Sell. We are increasing the scale and strength of our The informa�on above is according to the defini�ons website for delivering corporate news, engaging with business to capture the opportuni�es presented by a provided by GRI. IHCL’s detailed financial statements are investors and others, New Vivantahotels.com and booming travel and tourism industry in India. available on pages 87-97 of our Integrated Report. SeleQ�onshotels.com in keeping with our reimagined brandscape, New consumer-facing website for superior user experience, An upgraded, user-friendly mobile app for reserva�ons, Table management and booking app for restaurants.

30 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 31 PERFORMANCE the organiza�onal structure and synergizing global With an impressive por�olio of compelling proposi�ons, Our brand value is closely linked to our reputa�on as a shared services, along with reducing overhead we are on a journey to make the most of opportuni�es business that follows the highest ethical standards. In Net Promoter Score is 63 expenses. We also aim to have 15 new signings by 2022. in hospitality in India and other parts of the world. We addi�on to the Tata Code of Conduct, our An�-Bribery are an aspiring enterprise that con�nuously challenges and Corrup�on Policy, the Whistle Blower and Vigilance NPS Scope (No. of Customer Reviews) Our marke�ng strategy will involve selec�on of strategic the status quo to offer curated experiences to patrons Mechanism and the third party ethics helpline guide our 70 loca�ons for developing hotels including central across geographies. This entails re-structuring, associates and management in transparently managing 63 (124454) 63 (144063) business districts, airports, and leisure and luxury re-engineering and re-imagining the Company’s each aspect of our performance. 60 places. We will also invest in expanding our land area por�olio in tune with changing �mes. Our pivotal 50 across geographies and explore strategic five-year programme, Aspira�on 2022 aims to merger-and-acquisi�on opportuni�es. To expand our accomplish this purpose to for�fy our leadership in the 40 reach, we are focused on growing the product por�olio markets in which we operate. 30 while also expanding margins. Our business model includes owned, leased and franchisee structures to 20 help grow the brandscape. PERFORMANCE 10

0 2017- 18 2018-19 PERFORMANCE

ETHICAL CFI.co BOARDROOM CORPORATE 1.3: GROWTH AND SCALE CORPORATE GOVERNANCE AWARDS 100% of ethics 22 10% 25% 100% of TCOC complaints GOVERNANCE AWARDS IHCL’s iconic brand Taj complaints received in new hotel increase in increase in received in 2018-19 were IHCL received top honors was awarded the Best 2018-19 were signings during revenue since EBIDTA since sa�sfactorily solved at the Ethical Boardroom Hospitality Corporate sa�sfactorily resolved MANAGEMENT APPROACH the year 2017-18 2018-19 Corporate Governance Governance Award in Awards 2018. India. Growth and scale implies widening our presence and pursuing business excellence through business intelligence, digitaliza�on and process improvements. It 1.4: BRAND, REPUTATION & involves crea�ng shared value for our shareholders, COMMUNICATION employees, suppliers and local communi�es; economic rewards for the loca�ons in which we operate; and a range of offerings to our guests in every market MANAGEMENT APPROACH segment. We are in the process of aligning brands with • New Vivantahotels.com and SeleQ�onshotels.com in high-growth segments, adop�ng technology to digi�ze As part of the 150 year old Tata Group, our brand and 1.5: DIGITALIZATION our processes, and building our por�olio while legacy is a core asset. It is essen�al for us to curate and keeping with our reimagined brandscape enhancing margins maintain our brand as an emblem of service excellence • New consumer-facing website for superior user among customers, high performance and integrity MANAGEMENT APPROACH experience among shareholders and business partners, • An upgraded, user-friendly mobile app for We are inves�ng in technology and digitaliza�on to POLICIES AND COMMITMENTS sustainability leadership in the industry, and a great reserva�ons improve our processes, and streamline acquisi�ons and place to work for our employees. We have undertaken a • Table management and booking app for restaurants enhance guest experience. We are leveraging data Our approach to growth and scale is built on the drivers range of ini�a�ves to strengthen our brand and the analy�cs to understand the evolving aspira�ons of our of the Aspira�on 2022 strategy: Re-structure, value shared with each stakeholder groups These products have received encouraging response Re-engineer and Re-imagine. While we are a market customers and accordingly refresh and realign our from IHCL’s patrons as reflected in higher conversion leader in luxury and palaces segments, the focus ahead strategies. rate from e-commerce, higher number of transac�ons is to align our brands to dominate high-growth POLICIES AND COMMITMENTS and healthy growth in web revenues. segments. This involves reducing dependency on ownership and expanding across the business. We con�nue to refine our hospitality offerings to POLICIES AND COMMITMENTS elevate the promise of our brands. We have a strong PERFORMANCE (2018-19) IHCL’s digital pla�orms ensure a seamless customer por�olio of iconic and diverse brands which cater to the experience every �me they engage with it. During FY ACTIONS AND TARGETS aspira�ons of customers across segments of luxury, • Social media community of 2.65 million users 2018-19, the Company made requisite investments and upscale, affordable luxury and niche, curated • Over 10% YoY increase in direct online revenue launched mul�ple pla�orms, including: By 2022, we aim to expand EBIDTA margins by 25% and experiences. We are strengthening individual service • Over 50% YoY increase in mobile web revenue • New IHCL website for delivering corporate news, op�mizing costs. The strategy includes restructuring brands in the areas of exclusive business club, food and • 10.7 million unique visitors to the website engaging with investors and others procurements, maximizing energy efficiency, op�mizing beverages, bou�que and spa to offer a wide spectrum of hospitality services in accommoda�ons and beyond.

32 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 33 2: EMBRACING ENVIRONMENTAL STEWARDSHIP

34 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 35 MATERIAL TOPICS applied through environmental and social assessments mentored by the interdisciplinary Sustainability conducted in the start-up and pre-opening phase of all Advisory Commi�ee, comprising 8 senior leaders new hotels, efforts to maximize environmental represen�ng HR, Finance, Real Estate and efficiency during opera�ons, and to minimize emissions Development, Corporate Affairs, Legal, Revenue, and waste produced during the course of business. Procurement and Opera�ons.

As part of our commitment to transparency in ACTIONS AND TARGETS repor�ng environmental performance, we have par�cipated in voluntary repor�ng to the CDP since We have adopted an approach of con�nuous 2007-2008. We have maintained B and C, which is on 2.1: ENERGY 2.2: WATER 2.3: WASTE performance improvement over a rolling baseline for par with the regional scores for the sector. We also the material aspects of waste, water and energy. The par�cipate in the UNGC disclosure each year. objec�ve is to mul�ply incremental improvements in annual performance, by se�ng each year’s The hotels under IHCL are ge�ng stronger in the game performance as the new target to beat. Accordingly, MANAGEMENT APPROACH which emphasizes crea�ng long-term stakeholder of going green. There has been considerable growth in each hotel is given customized annual targets for value. The policy calls for the company to integrate the use of renewable energy, waste treatment and reducing specific water consump�on, energy IHCL as a brand is spread across a range of loca�ons, sustainability considera�ons into all business decisions reduc�on in water consump�on in the hotel. IHCL has consump�on and emissions. These targets range from metropolitan ci�es to remote forests and islands. and key work processes, with the aim of crea�ng value, partnered with EarthCheck, the world’s leading between 2% and 7% improvement in efficiency, and We integrate Sustainability considera�ons from the mi�ga�ng future risks and maximizing opportuni�es. scien�fic benchmarking, cer�fica�on and advisory take into account variables such as size and loca�on of design stage so as to manage the impacts of our We work towards this through specific commitments group for travel and tourism, for the performance the hotel. In addi�on to these individual targets, opera�ons on these loca�ons. We recognize that including a dedicated governance structure to oversee monitoring and verifica�on. For FY 2018-2019, the 80 maximizing the use of renewable energy in our total several of these areas are major tourist a�rac�ons, sustainability, ac�on plans for each material area, and hotels par�cipa�ng in the EarthCheck program, has energy mix is a company-wide priority. which experience heavy foo�alls, traffic, and are transparency in repor�ng and communica�on. The full together used a total of 577.23 TJ from renewable Our sustainability efforts rely on collabora�on and subject to the collec�ve impact of mul�ple resorts and text of the Sustainability Policy is available on our energy sources, 43 hotels have achieved 100% recycling informa�on-sharing across ver�cals. To foster these hotels. Our environmental programme is oriented website www.ihcltata.com of organic waste preven�ng 5648.142 tons of organic towards the wellbeing of people and the environment interac�ons, Green Teams comprising the heads of key waste from reaching the landfill. As of this year, 23% of in these loca�ons, essen�al for crea�ng a sustainable opera�ons departments have been cons�tuted in each the company’s electricity comes from renewable hotel. These teams meet periodically to jointly review common future. Our policy describes a Precau�onary Approach that is energy. 26.42% of of total consump�on was recycled performance and propose ini�a�ves relevant to each applied to all aspects of the business. It specifies that and reused by the hotels through rainwater harves�ng loca�on. Green Team members generally include the sustainability considera�ons will be integrated into all and grey water treatment in onsite waste water hotel General Manager and Heads of Engineering, POLICIES AND COMMITMENTS business decisions and key work processes, and across treatment facili�es. Procurement, Training and HR, or their depu�es. At the the life-cycle of all products and services. This is Our sustainability approach is defined by the IHCL Corporate level, our sustainability programme is Sustainability Policy h�ps://www.tajhotels.com/content/dam/thrp/investor s/IHCL-SUSTAINABILITY-POLICY.pdf

36 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 37 PROMOTING REDUCTION IN DEPENDENCE OF LOCAL COMMUNITIES ON FORESTS

IHCL SETS GLOBAL BENCHMARK WITH EARTH promo�ng green tourism. Over 147 million villagers in India live in or around CHECK PLATINUM CERTIFICATION forests and 275 million villagers depend heavily on Plas�c bo�les have been replaced with glass bo�les in Taj forests for livelihoods. However, post the Indian Forest IHCL has partnered with EarthCheck since 2008 for Samudra, Colombo, Taj Exo�ca Resort & Spa, Maldives Act, the Wildlife Protec�on Act, 1972 and the Project benchmarking its environment & social performance. and Taj Exo�ca Resort & Spa, Andamans. Tiger Ini�a�ve by the Government of India in 1973; very EarthCheck Cer�fica�on is the world’s leading li�le has been done for strategic re-skilling & livelihoods environmental cer�fica�on and benchmarking program At IHCL we believe that the mission to end the plas�c of these communi�es. While there are mainstream for the travel and tourism industry. menace must include: Ending single-use plas�cs, skill-development centers setup by the Government; Promo�ng 100% recycling of plas�cs, Corporate and holis�c programme designed for leveraging natural Since 2008, a total of 78 IHCL hotels have achieved government accountability, Adap�ng to new characteris�cs and strengths of these communi�es has spot different species. Displaying a fond affec�on for EarthCheck Cer�fica�on and generated significant technologies, Promo�ng innova�on to replace plas�cs not yet taken shape. IHCL has collaborated with Last the birds, trained naturalists at the lodges skillfully savings. This year 8 hotels of IHCL have received and Changing human behavior concerning plas�cs Wilderness Founda�on & Panna Forest Department to impart their knowledge during the safari drives and Pla�num Cer�fica�on, 63 hotels Gold Cer�fica�on and 8 pilot an inclusive tourism model; partnering with the through guest engagements & various awareness spread awareness, thus contribu�ng significantly to hotels Silver Cer�fica�on, which has confirmed its sessions in our communi�es. their conserva�on. The contouring of the land has not posi�on as a world leader in responsible tourism and a at all been disturbed during the construc�on of the genuine source of inspira�on to the interna�onal DEATH OF SINGLE USE PLASTICS IN THE lodges. The team has also been conduc�ng a lot of tourism community. ANDAMANS planta�on ac�vi�es with the community, from the start. The naturalists conduct classes in village schools to SOLVING THE PLASTIC MENACE Taj Exo�ca Resort & Spa, Andamans sets an example with create awareness amongst kids regarding the its commitment to conserva�on and sustainable luxury in importance of forests and wildlife. the island. Our commitment to conserva�on and sustainable luxury in the archipelago is at the core of the STAKEHOLDER VOICES FROM TAJ PASHAN GARH resort’s impeccable facili�es and services. Along with own biogas facility, water bo�ling plant, a reservoir for Our existence Our job is not only rainwater harves�ng and par�al solar energy, the resort is because of the jungles. to create awareness about has partnered with the Pollu�on Control Board to keep For us every day is Earth wildlife but it also extends the island plas�c-free while developing a plas�c Day & every hour is Earth towards habitat collec�on center on the mainland. Not a single tree was hour. Our commitment conserva�on. We are felled during the construc�on of the luxury villas. The towards conserva�on pu�ng in my best efforts resort offers a host of fun and environment ac�vi�es for stems from the deep to align our stakeholders guests that engage them in the marine and terrestrial Pardhi (tribal) youth groups near Panna Na�onal Park to rooted culture of Tata set with this bigger mo�ve of The world is currently facing huge crises related to ecology of the island. The property aspires to make the develop community-based tourist trails; preven�ng next by our founder. conserva�on Plas�cs. It’s no secret that plas�c straws and plas�cs whole island plas�c-free. genera�on of Pardhi community members from ge�ng itself have made a huge nega�ve impact to the – Amit Kumar, – Dipu Sasi, lured into global poaching rings. The uniqueness of the environment especially marine life. Each year, a million Lodge Manager, Naturalist, Taj Safaris ‘Walk with the Pardhis’ ini�a�ve lies in the fact that the seabirds and marine animals die from inges�ng plas�cs. Ni� Aayog CEO Mr Amitabh Kant Taj Safaris community’s natural entrepreneurial streak and flair for The possible long-term impacts of �ny pieces of plas�c highlighted the importance scien�fic tracking animals and reading the forests are leveraged to on the marine food chain are raising ques�ons about create an alternate livelihood path linked to the growing planning of islands in India being undertaken how it might ul�mately impact human health and food Since ages my family has been tourism in this region. Along with building on their by Ni� Aayog and responsible tourism by security. The Indian Hotels Company Limited (IHCL) in its living in forests of Madhya Pradesh & exis�ng strengths and enabling alterna�ve livelihoods, endeavour to address the growing plas�c menace, this project also furthers preserva�on and promo�on of Taj Exo�ca Resort & Spa, Andaman. Chha�sgarh. Our prime mo�ve of survival & pledged on the occasion of Earth Hour 2018 to phase natural & cultural heritage and wildlife conserva�on. out single-use plas�cs from all its hotels so as to play a livelihood was cu�ng trees & hun�ng �gers. IHCL promotes this unique experience not just among its significant role towards protec�ng the environment. PROMOTING BIODIVERSITY Me & my community were not aware about guests and the local hotels & lodges fraternity but also the nega�ve impacts of our ac�vi�es. We have with its travel partners and business networks. The Aligning to its commitment, this year, the company Taj Safaris provides guests with the ul�mate interpre�ve now started shi�ing our focus towards naturalists team has not just trained Pardhi boys & girls replaced plas�c straws across all its proper�es with wildlife experience in India based on a Sustainable conserva�on. I see a hope for us in near from the forests but also interested women from the Ecotourism Model. Located in the outskirts of some of neighboring village to hone their tradi�onal cooking paper & bamboo straws. This helped us eliminate 2 future. million plas�c straws from the ecosystem. IHCL also the famous Tiger Reserves, the lodges are sensi�vely skills in a manner that can enable them to par�cipate in launched its first ever “Zero Single Use Plas�c Hotel”, Taj plugged-in to their surroundings. Pashan Garh, A Taj – Bipin, and earn as a part of the larger rural tourism experience Safari - Panna Na�onal Park has a team of naturalists Exo�ca Resort & Spa, Andamans which is located within Pardhi Community being curated around ‘Walk with the Pardhis’ – who create awareness for guests, communi�es & other 46 acres of forest and mangroves in Havelock Island. benefi�ng a total of over 20 families. employees on the prominent features of different This ini�a�ve stands as a responsible commitment species, wildlife calls, conserva�on process and how to towards rejuvena�on of this pris�ne beauty along with

38 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 39 RESPONSIBILITIES AND RESOURCES

Environmental efficiency for water, energy, emissions At the company level, environmental performance and waste is managed by the Chief Engineers and their monitoring and improvement is the responsibility of the teams in each hotel, in collabora�on with Learning and Sustainability Team, which is guided by the Development and Human Resources func�ons. Sustainability Advisory Commi�ee and reports to the Procurement teams at the central and unit levels Global Head of Human Resources. Environmental manage all measures related to sustainable and local performance is guided by the Sustainability Advisory procurement. In hotels that are EarthCheck cer�fied, Commi�ee, and overall governance rests with the Board environmental performance is overseen by Green CSR and Sustainability Commi�ee. Teams comprising the General Manager and the Heads of key Departments.

40 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 41 PERFORMANCE ELECTRICITY BY SOURCE (UNITS TJ) The unit of energy, water and waste intensity used in this 2.1: CLIMATE CHANGE, report is a ‘Guest Night’. This indicates resource use per ENERGY AND EMISSIONS occupant per night of stay in a hotel. The unit comprises overnight guest stays, staff overnight stays, non-resident Electricity Purchased - Biomass or day guests and non-resident restaurant covers. (3rd Party Contract) Electricity from DG sets BOUNDARY It is calculated as follows: 64.79 13.94 As a service sector industry, the most significant segment of our business for energy consump�on is the Electricity Purchased - Hydro Electricity from opera�on of our hotels. Therefore, the boundary of No. of Guest (3rd Party Contract) other renewables energy and emissions performance measurement Nights 49.84 110.14 comprises the onsite ac�vi�es in running hotels, and only energy consump�on within the organiza�on is Electricity Purchased - Wind Electricity Purchased - Grid calculated. Emissions reported are limited to Scope 1 (3rd Party Contract) 1009.68 and Scope 2. We have taken an opera�onal control Total (Non-resident 152.25 approach for accoun�ng GHG emissions. Overnight Staff Nights (Total Day Restaurant Guest Stays Guests/3) Covers/4) METHODOLOGY As the number of rooms in our por�olio varies year on The emission factors for GHG accoun�ng have been year, the base year for all compara�ve disclosures is the sourced from IPCC Guidelines for Na�onal Greenhouse company-wide specific energy and emissions intensity performance of the previous year. ENERGY INTENSITY (302-3) GUEST NIGHTS Gas Inventories, 2006. (IN MJ/GUEST NIGHT)

ENERGY PERFORMANCE - IHCL HOTELS Energy Consump�on per Guest Night No. of Guest Nights 312.17 8264669.29 300.23 ENERGY CONSUMPTION 2016-2017 2017-2018 2018-2019 4834215.05 5295352.63 Fuel Consump�on from Non-Renewable Resources (TJ) 578.86 448.69 979.16 284.5 Fuel Consump�on from Renewable Resources (TJ) 6.49 98.45 253.27

Total Electricity Consump�on (TJ) 866.02 959.23 1347.57

Total Energy Consump�on (TJ) 1451.38 1506.46 2580.01 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 FUEL WISE ENERGY CONSUMPTION (UNITS TJ)

Chaff fuel Firewood 5.36 Charcoal 0.94 64.79 Petrol ENERGY PERFORMANCE - GINGER 36.32 Kerosene 0.00 ENERGY CONSUMPTION 2016-2017 2017-2018 2018-2019 Diesel for DG sets & process CNG 279.42 Fuel Consump�on from Non-Renewable Resources (TJ) 6.09 448.69 979.16 0.00 Fuel Consump�on from Renewable Resources (TJ) 0 0 0

Diesel for vehicle Total Electricity Consump�on (TJ) 58.17 68.09 68.33 PNG 10.98 348.43 Total Energy Consump�on (TJ) 64.26 75.50 75.24 Fuel Oil 53.30

LPG Light diesel oil 179.63 0.00

42 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 43 FUEL WISE ENERGY CONSUMPTION ELECTRICITY BY SOURCE (UNITS TJ) ENERGY FROM VARIOUS SOURCES (IN MJ) – TajSATS

Energy Consump�on from various sources (in MJ) Energy purchased from various sources: Ginger The energy performance data comprises fuel, electricity, hea�ng and cooling. This year we have included Ginger & TajSATS in our repor�ng scope Electricity from DG sets LPG 1.14 Charcoal Petrol 2.71 2370434.07 409716

Diesel 23123300.04 CNG 1829976.91 Diesel for vehicle 18528085.26 Diesel Electricity Purchased Grid 4.19 PNG 68.33 LPG 66952703.79 19592676.95

ENERGY CONSUMPTION (MJ/GUEST NIGHT) GUEST NIGHTS -GINGER Energy Consump�on per Guest Night No. of Guest Nights ELECTRICITY PURCHASED FROM VARIOUS SOURCES (IN MJ) – TajSATS 788531 620000 777424 97.12 620000 620000 Electricity Purchased 95.42 Electricity from 620000 - Wind (3rd Party Contract) other renewables 620000 6430809.06 688499 778896 93.34 620000 620000 620000 620000 620000 Electricity Purchased - Grid 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 62055910.08

TOTAL ENERGY TOTAL ENERGY GUEST MEALS CONSUMPTION – TajSATS CONSUMPTION / MEALS FIGURES-TajSATS ENERGY PERFORMANCE - TajSATS (IN MJ) (IN MJ/GUEST MEAL) NO. OF MEALS (IN MILLION)

350000000 10.00 ENERGY CONSUMPTION 302538298.06 302538298.06 2016-2017 2017-2018 2018-2019 9.00 9.07 35 300000000 8.00 29 30 Fuel Consump�onfrom non-renewable sources(TJ) 88.53 98.91 132.81 250000000 26 204801506.08 7.00 5.91 5.86 25 23 Fuel Consump�on from renewable sources (TJ) 1.56 2.75 6.431 200000000 6.00 5.00 20 Total Electricity Consump�on (TJ) 63.63 68.15 69.27 150000000 4.00 15 Total Energy Consump�on (TJ) 153.72 169.81 208.50 100000000 3.00 10 2.00 50000000 5 1.00 0 0.00 0 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019

44 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 45 Reduc�ons in Energy Consump�on (302-4) ODS 305-6

Resource monitoring has been conducted independently since 2006, with EarthCheck as our strategic partner since 2017-18 2018-19 2008. The tourism sector accounts for up to 1% of global emissions as per the latest ITP report, and is associated with Produc�on of ODS (Tonnes) in CFC-11 equivalent 17.72 0.541 high resource consump�on rates. IHCL strives to reduce energy consump�on rates through improved efficiency and adop�ng new technology or prac�ces. Each of our hotels has implemented a range of energy conserva�on ini�a�ves The gases included in the calcula�on of ODS for this year are R022, R404-A, R134, R134-A, R410, R407, R407-C, R408, R according to the specific requirements - Switching to LED ligh�ng in several loca�ons; Infrastructure upgrades such as 409 and R502 produced by our cooling and refrigera�on systems. We have reduced the consump�on of high ODS installing VFDs on high power motors in condensers, exhaust fans, cooling tower fans and air handling units; Upgrading poten�al refrigerants in 2018-19. the infrastructure of cooling towers; Installing heat pumps for water heaters; And even simple improvements such as improved insula�on of hot water lines, have all contributed to energy conserva�on and efficiency. 2.2: WATER EMISSIONS PERFORMANCE (305-1, 305-2, 305-4, 305-5, 305-6) The concept of Sustainable Hospitality has not been just limited to the age old classroom lessons of switching off IHCL gadgets not in use or controlling water usage. Guests today are equally aware that the con�nuous dipping into the earth’s resources while yielding momentary pleasure, has a definite taxing effect in the long run. Our water efficiency

Scope 1 (t CO2e) Scope 2 (t CO2e) Avoided emission efforts comprise upgrading to water-efficient equipment and having administra�ve controls in place. Through water 224841.29 65225.49 Emission Intensity Emission Intensity due to green recycling, increasing equipment efficiency and rain water harves�ng, we aim to minimize our withdrawals of (tCO e/Guest Nights) 66729.17 (tCO e/Guest Nights) energy (t CO e) 2 2 2 freshwater and preserve sources for communi�es. We completed a water security assessment of hotels in key ci�es to 166287.33 55454.21 156972.56 51241.72 iden�fy water-related risks and strengthen preparedness to manage them. 38294.94 32996 WATER PERFORMANCE IHCL WATER CONSUMPTION (IN KL) 0.00 0.00 0.00 0.03 0.03 0.03 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 In our updated methodology, water withdrawal in 2017-18 includes bo�led water and harvested 10555952.89 rainwater, which were not included in the calcula�ons TajSATS for previous years. Water recycled in 2017-18 refers only to recycled STP water. However in previous years, it Scope 1 (kg CO2e) Scope 2 (kg CO2e) Avoided emission 4737951.18 Emission Intensity Emission Intensity also included harvested rainwater. The apparent due to green 3677646.33 (kgCO e/No. of meals) (kgCO e/No. of meals) 2 2 13097463.16 1538803.02 increase in water withdrawals and decrease in recycled energy (kg CO2e) 12945315.04 1471189.59 water is a consequence of this change in methodology; 4610861.17 12320019 4538434.43 1134055.78 therefore the figures for 2017-18 are not perfectly 4169860.66 comparable with those of previous years. 2016-2017 2017-2018 2018-2019

0.14 0.14 0.18 0.47 0.45 0.57 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 Bo�led Water (KL) Rainwater harvested - Total (KL) 190495.46 54821.89 Ginger Desalinated Water (KL) River / Lake Water (KL) Scope 1 (kg CO2e) Scope 2 (kg CO2e) Avoided emission Emission Intensity Emission Intensity due to green 67085.68 45845 224841.29 (kgCO e/Guest Nights) (kgCO e/Guest Nights) 2 2 energy (t CO2e) 17462996.56 17402527.72 166287.33 154734.24 Borewells / 165270.52 14864713.24 156972.56 134243.08 Ground Water (KL) Municipality Supply (KL) 1862509.39 4299133.85 0.19 0.21 0.20 21.59 22.38 22.15 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 Tankers (KL) 1265400.61 Reduc�ons in GHG Emissions (305-5): Expanding our renewable energy quo�ent has helped us avoid 65189.2 kgCO2e of our total GHG emissions. The energy conserva�on measures men�oned above & usage of alternate fuels like Bio gasoline, Biogas, PNG, CNG has helped us reduce our Scope 1 emissions. We con�nue to focus on this sector by maximizing power purchase agreements for renewable energy and onsite use of renewable fuels such as biogas and biodiesel. Water Withdrawal by Source in KL

46 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 47 WATER REUSED AND RECYCLED (IN KL) WATER CONSUMPTION INTENSITY (303-2) WATER SOURCES SUMMARY 2789173.89 (IN KL/GUEST NIGHT) SIGNIFICANTLY AFFECTED Taj MG Road, Bengaluru collaborated with Mahatma 1.40 Water sources across the company vary according to the Gandhi Ins�tute of Rural Energy and Development 1902977.54 loca�on, local water supply systems and requirements of (MGIRED) and ini�ated this unique Project on Circular 1574354.57 0.89 each unit. In most hotels, municipal water supply largely Economy i.e. Waste to Gold. from surface water bodies, and private water tankers 0.76 supplying groundwater, are the dominant sources. A few Through this project, waste cooking oil is being hotels also withdraw a significant amount of water from converted into biodiesel via transesterifica�on process, onsite bore wells. We take measures to protect onsite and the by-product glycerine is used in soap making. This groundwater sources through rainwater harves�ng and is a classic example wherein problem at one end (waste 2016-2017 2017-2018 2018-2019 2016-2017 2017-2018 2018-2019 recharge. By trea�ng output water in our sewage and in hotel) is converted into a social and environmental effluent treatment plants, we ensure that water opportunity. Every liter of waste cooking oil from hotel discharged from our units does not pollute surface water generates about 0.7 liter of biodiesel and 5 soap bars of GINGER - WATER CONSUMPTION (IN KL) GINGER - WATER WITHDRAWAL BY SOURCE (IN KL) bodies or contaminate groundwater. 20 grams each.

270234 The project has been recognized as Top 4 Social

254830 (303-3) WATER REUSED AND RECYCLED Innova�ons in Tata Innovista 2019, and also appreciated Borewells /Ground by the Government in Interna�onal forums. Given above Municipality Water (KL) Supply (KL) 50461 Previously, the waste cooking oil was given to authorized 230330 181701 vendors and there was no control by the hotel post use 2.3: Circular Economy or recycling, a process which incurred cost. Now under the project, for every liter of waste cooking oil, hotel is Tankers (KL) genera�ng biodiesel which is Rs 45 / liter and is cheaper 22668 The shi� towards a circular economy system has the than conven�onal diesel. Environmentally this avoids 3 2016-2017 2017-2018 2018-2019 poten�al to transform the hospitality industry. Circular kgCO2e GHG emissions per liter as compared to economy for IHCL is ‘restora�ve and regenera�ve by conven�onal diesel use. On the social front, the design’, as opposed to a linear ‘take, make and dispose’ glycerine generated as a by-product from this process is economy. As a bulk buyer of various products, our waste TajSATS - WATER CONSUMPTION (IN KL) TajSATS - WATER WITHDRAWAL BY SOURCE (IN KL) distributed free of cost to the neighbouring community. genera�on is closely �ed to the structure of our supply chain and the availability of alterna�ve materials. With the implementa�on of this project, we have not 553907.04 577834.05 Effec�ve management of organic waste and minimizing only seen social, economic and environmental benefits 30993.88 plas�cs are our focus areas. We have done certain but also a posi�ve culture change among associates and Rainwater harvested Borewells /Ground innova�ons with the waste generated in bulk from our the community. - Total (KL) Water (KL) Hotels like making Biodiesel from Waste Cooking Oil. 5420 50461 Innovation & diffusion of new technologies are We are happy that Taj hotel has come indispensable for Business Sustainability. One such forward to support in this noble cause. Waste innovation project for converting waste oil into bio diesel Tankers (KL) Municipality that can power vehicles has been recognized at Tata oil to biodiesel and also soap making from by- 2016-2017 2017-2018 2018-2019 22668 Supply (KL), Innovista 2019. This project if adopted by more in the product glycerine is an excellent example of 181701 hospitality industry will impact the social ecosystem by circular economy. creating more jobs in the responsible recycling sector. TajSATS - WATER RECYCLED (IN KL) Mr Manoj Kumar Shukla 97960.47 Waste to Gold - Towards Circular Economy Chief Conservator of Forests IFS and Director • Making Biodiesel from Waste Cooking Oil • Producing Usable Soap from By-product Glycerine MGIRED 43983.22 30993.88

2016-2017 2017-2018 2018-2019

48 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 49 (306-2) WASTE BY TYPE AND DISPOSAL METHOD

Hazardous Waste In Tons Non Hazardous Waste In Tons E-waste 22.90 Kitchen Waste 1228.43 Oil/ Sludge containers 698358.42 Hor�culture waste 3208 Fused bulbs / tube 35.11 Waste paper 10242.20 Lube oil waste 2908.13 Bo�les (Glass) 12517.34 Oily rags 1.98 Bo�les (Plas�c) 11858.90 Ba�eries 2.49 Metal scrap 9668.92 Burnt Oil 568.97

The waste disposal methods have been directly confirmed from individual business units. The methods of waste disposal include compos�ng and biogas produc�on from organic waste in several hotels. Dry waste generated in our premises is sent to licensed recyclers for safe handling. All our hazardous waste recyclers are cer�fied by the Pollu�on Control Board of the State in which the hotel is located. Sludge from sewage treatment plants is safely disposed by the agencies contracted for the management of these units.

50 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 51 3: DEEPENING SOCIAL ENGAGEMENT

52 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 53 amount to employees in case their selected reference is a to an open door policy with HR representa�ves in each 3.1: TALENT MANAGEMENT AND RETENTION woman. Our new hospitaliza�on policy offers support to business unit. women employees who are facing hurdles in star�ng a family, by covering medical expenses including various We have implemented various engagement ini�a�ves MANAGEMENT APPROACH Employees. Each hotel has guidelines for benefits to be fer�lity treatments. during the year. Some of them are listed below. extended to staff in each of these categories. In the case Our teams are integral to our business. We have of staff contracted through a third party, we also monitor ACTIONS AND TARGETS embraced a culture of excellence and meritocracy to the contractor’s compliance with statutory norms. nurture our people. We believe in selec�ng the right Our induc�on program for new employees - Taj Swagat, LEADERSHIP DEVELOPMENT talent, training them and ins�lling in them the spirit of Workforce engagement is assessed through the Annual the annual calendar of skill and knowledge training, and The General Manager Development Programme for entrepreneurship. Our talent framework aims to build Employee Engagement Survey, and through periodic a social-media style internal communica�on network Cohort 2 adopted the process of experien�al learning cri�cal capabili�es for success and develop a produc�ve assessment of HR indicators such as grievances, a�ri�on are among the ini�a�ves to enhance employee and was conducted at Nanyang Technological University and engaged pipeline of ready talent to fill cri�cal roles. rates, exit interviews etc. Growth and skill development engagement and performance. Programs such as the in Singapore. We ini�ated the IHCL Sustainability We have taken industry-leading steps to build the is addressed through a comprehensive Learning and Special Thanks and Recogni�on System (STARS) ensure Leadership Development Programmes for our Chief capability of our talent across levels, and to enhance Development System, delivered through experienced that employees who receive the best customer Engineers. This was designed and executed in their overall wellbeing trainers in each hotel. The employee career progression feedback, collaborate across departments and collabora�on with Na�onal Ins�tute of Industrial and succession planning is charted through joint proac�vely suggest workplace improvements are Engineering (NITIE), Mumbai. This is focused on POLICIES AND COMMITMENTS discussions between the employee and their manager. recognized, rewarded and incen�vized to excel further. environment, health, safety and sustainability. Both This data is then reviewed by the Hotel, Func�onal, these programmes con�nue to focus on Ac�on Learning Our core commitment to each employee is providing a Regional and Na�onal Talent Councils within the To strengthen our hiring process, we have introduced Projects, which are aligned to our Company’s goals. safe, enabling and posi�ve work environment. Policies to company for broader ac�on. the technique of Targeted-Selected for hiring senior support employee wellness include providing day care management professionals. This technique provides MINDFULNESS TRAINING centers, elimina�ng break shi�s, and produc�vity-based To improve the par�cipa�on of women in our workforce, managers and decision makers with the informa�on, Con�nuing the senior leadership team’s emphasis on wage se�lements. Rigorous background checks for all we have commi�ed to filling 50% of our available framework, tools, skills and prac�ces required to emo�onal intelligence, we conducted a session on new hires ensure that no children under 18 years of age vacancies with female candidates during campus confidently and effec�vely assess and select the best mindfulness.This session focused on paying a�en�on to are employed anywhere in our opera�ons. talent. recruitment, and recruiters are incen�vized to fill the present moment, non-judgmentally and respond posi�ons with female candidates. This year, we launched appropriately to all involved stakeholders. The workforce at each hotel is composed of Permanent an incen�ve-based referral programme for referring A third party ethics helpline is accessible to all Staff, Fixed Term Contracts (FTC) and Contracted women candidates. It entails a 30%-50% higher referral employees in order to raise any grievances, in addi�on

54 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 55 ONLINE LEARNING RESPONSIBILITIES 401-1 NUMBER AND RATE OF EMPLOYEE TURNOVER

Taj LEAD con�nues to provide func�onal and leadership Organiza�onal responsibility for talent management • Total number and rate of employee turnover during the repor�ng period, by age group, gender and region online learning content. We partnered with American and reten�on lies with the Global Head of Human Hotel & Lodging Educa�onal Ins�tute (AHLEI) to provide Resources, supported by the VP-Human Resources Supervisors and Managers func�onal exper�se through Opera�ons and the VP-Organiza�onal Effec�veness and an online pla�orm. We deployed Hello English - an Development. The la�er also oversees the Learning and Employee Turnover Data 2018-2019 2017-2018 2016-2017 interac�ve English learning app for 550+ frontline Development System. associates. We also ini�ated the pilot of the Tajness These func�ons are enabled by Regional HR Heads, who learning app, which helps bring Tajness values to life. support the HR Managers and Learning and People Group Age Band Development Managers in each hotel. Cer�fied Female Male Female Male Female Male Departmental Trainers in each department of each V CONNECT hotel, who are subject ma�er experts, work closely with Execu�ve <30 years 120 201 120 201 121 241 V Connect is our con�nuous engagement ini�a�ve at the Learning and Development Managers to implement 30-49 years 97 351 97 351 64 279 IHCL. It is a virtual space where employees can voice training and skill upgrada�on programs. >50 years 10 54 10 54 12 71 their opinions anonymously, at any point of �me. The ini�a�ve is deployed in over 90% of our hotels in India. Staff <30 years 149 401 149 401 108 348 The feedback from employees are addressed by 30-49 years 65 270 65 270 55 256 managers within ten days of receiving them. 14500+ >50 years 14 105 14 105 9 106 employees have par�cipated in the V Connect engagement ini�a�ve and we have received 80,000 FTC <30 years 543 1426 543 1426 434 1551 quality verba�ms in 2019. 30-49 years 49 270 49 270 64 326 >50 years 1 12 1 12 1 22 PERFORMANCE Appren�ce / Trainee <30 years 2 6 2 6 8 71 30-49 years 401-1 NUMBER AND RATE OF NEW EMPLOYEE HIRE Total 1050 3096 1050 3096 876 3271 • Total number and rate of new employee hires during the repor�ng period, by age group, gender and region. This data pertains to permanent employees across all hotels covered in this report, and corporate offices. Permanent employees are those employed directly by IHCL, and excludes staff employed by third party contractors deployed to IHCL. Employee Hiring Data 2018-2019 2017-2018 2016-2017 401-2 BENEFITS PROVIDED TO FULL TIME VS TEMPORARY EMPLOYEES The table below displays benefits provided to permanent employees and contractual employees, ranging from life People Group Age Band insurance, flexible working hours, leave and other benefits. Female Male Female Male Female Male

Execu�ve <30 years 74 108 105 176 101 258 PERMANENT EMPLOYEES 30-49 years 51 206 69 228 56 218 >50 years 2 - 10 8 1 7 All employees All employees, All employees All employees All employees Paternity Leave is through the EPS Staff <30 years 153 292 130 269 162 389 available for employees in the category of Scheme 30-49 years 54 149 49 147 55 124 Execu�ve and above >50 years 4 11 9 16 6 14 LIFE MEDICAL DISABILITY AND RETIREMENT/ LEAVE FTC <30 years 815 1996 656 1801 595 2076 INSURANCE COVERAGE INVALIDITY COVER PENSION PLAN 30-49 years 82 430 64 396 61 363 >50 years 1 14 - 6 1 16 Appren�ce / Trainee <30 years 58 77 43 207 27 157 30-49 years - - - 4 - 1 All employees, All employees, All employees, All employees All employees, Total 1294 3293 1125 3258 1065 3623 through the ESIC through the ESIC through the ESIC through the EPS scheme scheme scheme Scheme This data pertains to permanent employees across all hotels covered in this report, and corporate offices. Permanent employees are those employed directly by IHCL, and excludes staff employed by third party contractors deployed to IHCL. CONTRACTUAL EMPLOYEES

56 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 57 401-3 PARENTAL LEAVE TRAINING AND EDUCATION

Employees en�tled Employees that took Employees that returned to work in the Return to 404-2 UPGRADING EMPLOYEE SKILLS To foster leadership and prepare promising candidates to parental leave parental leave repor�ng period a�er parental leave ended work rate for senior roles, the General Manager Development Employee training comprises knowledge-based training Programme offers opportuni�es to General Managers on topics such as health, safety, environmental for specialized training. Our managers also have access awareness, professional conduct, organiza�onal policies to TajLEAD, a learning and development portal that 20% 100% 164 36 164 12 100% 33% and skill-based training intended to strengthen provides world-class training content on a wide range of func�onal abili�es. Learning opportuni�es are extended topics. To address frontline training requirements, a to permanent, fixed-term contract and third-party new programme called Training Enablement & contractual staff alike, according to each hotel’s annual Development (TREND) has been launched at more than To support women employees returning from maternity Name of Proper�es TajSATS Ginger training calendar for each of its departments. 48 hotels, covering topics in the areas of behaviour, leave, and to improve return to work rates, day care knowledge and skills along with other mandatory Number of employees en�tled to parental leave centers have been provided in each unit. Educa�on to upgrade skills consists of func�on-specific trainings delivered by Cer�fied Departmental Trainers in programmes. Males 7 423 each hotel. These persons are func�onal skill experts in Our workforce comprises a significant number of Females 0 128 402-1 LABOUR-MANAGEMENT RELATIONS their fields, who have undergone a Trainer Cer�fica�on colleagues with long service records. To enable them to Number of employees that took parental leave process. They are evaluated and cer�fied upon adjust to life a�er re�rement, Transi�on Assistance in repor�ng period Employees and their representa�ves are given at least 2 achieving a minimum score of 60%. Skill Training and Programmes impar�ng entrepreneurship skills are weeks’ no�ce and where possible 4 weeks’ no�ce Cer�fica�on is also conducted for all new hires. Males 6 - conducted by individual hotels. We aim to scale up this before implemen�ng significant opera�onal changes Training topics include the applica�on of Leading prac�ce across the organiza�on in the near future. Females 0 - that could substan�ally affect them. This no�ce period Quality Assurance (LQA) standards, Guest Engagement Number of employees who returned to work a�er and the provisions for consulta�on and nego�a�on are specified in collec�ve agreements. Training, and Cross Exposure Training in which parental leave ended employees travel to other Taj hotels to acquire key skills 404-3 PERFORMANCE AND CAREER Males 4 - and observe processes, returning to train colleagues in DEVELOPMENT REVIEWS their own unit. Females 0 2 All our employees irrespec�ve of gender and employee category receive annual performance appraisal and Number of employees who returned to work a�er To address our major priority of crea�ng a talent pool parental leave ended who were s�ll employed 12 months across levels, we implement 3 programmes: career development reviews. The results of these a�er their return reviews are taken into account while drawing up the • The Golden Threshold Program, to introduce annual training calendar according to training needs. Males 0 2 entry-level candidates to the industry Females 0 - • The Hotel Opera�ons Training Program, to develop supervisory-level candidates with strong opera�ons skills • The Hotelier Development Program, to create a cadre of poten�al leaders with comprehensive hotelier skills

58 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 59 LHS: 1st table - Remove the subtitle: Diversity of governance bodies (to avoid duplication) and move it closer to the copy above Also the table's 1st column copy: Composition of the Board of Directors - change case as given here & reduce line spacing in between

2nd table - DIVERSITY OF EMPLOYEES - IHCL (follow all caps; include - IHCL)

4th table - Age Band - replace 'Less than' & 'More than' with the respective symbols rather than text, to maintain consistency of usage like in other tables

RHS: Include title above the rst 3 tables: DIVERSITY OF EMPLOYEES - TajSATS & GINGER Replace 'SATS' in all 3 tables with TajSATS

manning numbers required for safe and secure 3.2: SAFETY AND SECURITY opera�ons. Emergency Preparedness Plans supported DIVERSITY AND EQUAL OPPORTUNITY by the Incident Management and Business Con�nuity MANAGEMENT APPROACH Guidelines are defined for each hotel according to its specific requirements; and deployment of these plans is 405-1 DIVERSITY OF GOVERNANCE BODIES DIVERSITY OF EMPLOYEES - TajSATS & GINGER The safety of every person in and around our premises the responsibility of trained Crisis Management and Composi�on of the Board of Directors is of paramount importance. Crea�ng a safe work Gender-wise TajSATS Ginger Recovery Teams teams comprising key managers and environment for our employees and offering a healthy staff. This includes evacua�on and emergency drills, Male 3360 442 and safe experience to our customers is a core business Age group Female Male measures to be taken in case of fire or natural Female 141 148 requirement. Fire and life safety prac�ces, along with a calami�es, and ac�ons to be taken in the case of Composi�on of The >50 2 7 robust security establishment, are essen�al to secure Category-wise TajSATS Ginger Board of Directors security incidents. 30-49 - - the safety of guests, employees and communi�es. We Execu�ve 692 243 regularly conduct safety and security training A rigorous system of third-party audits and internal <30 - - Staff 1501 265 programmes, review our safety performance, and checks are implemented in each of the three safety collaborate with experts to maximize safety and security areas. FTC 1229 82 DIVERSITY OF EMPLOYEES - IHCL in our premises. Our Safety prac�ces are aligned with Appren�ce 79 0 the Tata Group Safety Management System and the Tata • Fire and Life Safety audits are conducted bi-annually and cross-validated though internal assessments at Details Female Male Total Safety Beliefs. Age-wise TajSATS Ginger each hotel. Corporate Office 152 214 366 >50 years 579 9 • Food Safety, Hygiene and Cleanliness audits are Hotels 2273 12902 15175 30-49 years 1894 194 POLICIES AND COMMITMENTS conducted either annually or twice a year according to the requirements of each unit. Interna�onal 894 2747 3641 <30 years 1028 387 Our Safety and Security Policy Total 3319 15863 19182 (h�p://www.tata.com/pdf/Tata-Safety-and-Health-Polic • Security systems undergo con�nuous checks and y.pdf) has been framed based on the Tata Group Safety upgrades through self-checks as well as 405-2 RATIO OF REMUNERATION OF MEN TO Beliefs, and covers Security, Food Safety and Fire & Life recommenda�ons of external experts and law WOMEN BY EMPLOYEE CATEGORY Safety. The Vehicle Safety Policy addresses road and Row Labels Employee Count % enforcement agencies. Hotels are categorized based driving safety, while Contractor Safety Standards guide on their risk and threat profile and security measures Execu�ve 5763 30.0% the opera�ons of third-party service providers. The Tata Category Ra�o of male to female remunera�on are reinforced accordingly. Staff 8046 41.9% Group Safety Guidelines also guide the processes of Execu�ve 1: 0.94 recording and repor�ng workplace incidents. External Workplace Hazards are iden�fied through a FTC 5243 27.3% standardized Hazard Iden�fica�on and Risk Assessment Staff 1: 0.76 standards and compliances incorporated into our Trainees / Appren�ce 130 0.07% processes include alignment with the Na�onal Building process, which also enables employees to flag poten�al FTC 1: 0.88 accident risks. Employees are encouraged to report Grand Total 19182 Code of India, IS 13716, FSSAI, FDA requirements, and industry best prac�ces. Data security and the privacy of every poten�al risk and incident, however minor, as a Our ini�a�ves to con�nue narrowing the gender pay our guests is governed by the Privacy Policy learning tool to prevent future occurrences. Age Band Count % gap include focused efforts to increase the propor�on (h�ps://www.tajhotels.com/en-in/about-taj-group/legal Women’s safety, for employees as well as guests, is a /privacy-policy/). <30 years 7071 37% of women in the workforce, skill upgrada�on, and special focus area. In addi�on to restricted access to promo�ng the representa�on of women in leadership guest floors for the security of all guests, we take 30-49 9694 51% Our commitment to guest safety includes provision of roles. medical facilita�on in each loca�on, excellence of food addi�onal measures for the safety of our single lady >50 years 2417 13% safety standards as a core, non-nego�able aspect of guests. This includes connec�ng phone calls to rooms of Total 19182 opera�ons, and collabora�on with local authori�es to female guests offering rooms close to elevators for easy maximize security. As part of this commitment, training access in case of emergencies, video phone facili�es, on Food Safety and Fire Safety is given to 100% of accompanying female guests travelling alone outside employees, and employees in certain roles undergo the hotel whenever requested, and ensuring that at advanced training in first aid, crisis management, least a minimum number of female staff are available chemical handling and storage, accident inves�ga�on, on duty around the clock to address the needs of lady and safe food and equipment handling. guests. Measures to ensure the safety of female staff include training in self-defense, accompanied pick-ups and drops for women working night shi�s, provisions to ACTIONS AND TARGETS stay over at the hotel if needed, and provision of pepper sprays. Safety and Security measures are built into our hotels Addi�onally, all guest rooms contain informa�on about from the design stage, during which safety and security safety procedures and exit routes, and guests are risk analyses are conducted and mi�ga�on plans drawn invited to voluntarily par�cipate in mock drills up for each hotel. This risk assessment determines the whenever these are conducted. All guests are provided hotel-specific equipment and infrastructure, as well as with a safety orienta�on at the �me of checking in as well as prior to the start of a banque�ng event.

60 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 61 RESPONSIBILITIES SAFETY PERFORMANCE Fire and Life Safety at the unit level is anchored by the IHCL PROPERTIES Security Manager, General Manager and the Hotel Emergency Ac�on Team, and at the local area level by First aid cases (FAC) 4166 the Area Directors and Senior Vice Presidents. They Medical Treatment Cases (MTC) 471 report to the Execu�ve Vice President in each region of our opera�ons (North and South), who in turn Lost-Time Injuries (LTI) 441 communicate performance and procedural ma�ers to Lost Time Injury Frequency Rate 6.95 the Corporate Business Excellence Team, the Safety Fatali�es 3 Advisory Commi�ee, and the IHCL Execu�ve Commi�ee. Million Man-hours worked 60.97 Food Safety is addressed by the hotel Food Safety Average Number of Permanent employees 18258 Management Team, comprising the General Manager, Average Number of Contracted staff 7314 Chefs and the Materials Manager. A team of 22 microbiologists advise our hotels across India on food safety topics and supervise the maintenance of IHCL *excluding Ginger & TajSATS standards. The unit level teams report to the Corporate Safety Advisory Commi�ee. SAFETY PERFORMANCE - GINGER Security in each unit is primarily the responsibility of the First Aid Cases Security Manager and General Manager, who report to the Company’s Head of Safety and Security. The Head of Medical Treatment Cases 15 Safety and Security collaborates closely with the Execu�ve Lost �me Injury (LTI) 5 Vice President in each region, who communicates LTIFR 0.94 performance and other ma�ers to the CHRO. Fatali�es 0 The overall governance of safety and security ma�ers is held directly by the Board, and the Corporate Business Million manhours worked 5.33 Excellence Team also represents IHCL at the Tata Group Average Number of permanent employee 551 Safety Council. Average Number of Contractual Staff 2135.05

PERFORMANCE SAFETY PERFORMANCE - TAJ SATS 403-2 INJURY RATES First Aid Cases Our approach to safety as a cri�cal opera�onal area is Medical Treatment Cases 149 to assure equal treatment and weightage to all workers Lost �me Injury (LTI) 81 in the premises, both employees and contractual staff. LTIFR 9.63 Therefore, the data below includes both employees and contractual staff. Our recording system does not Fatali�es 0 currently segregate data by gender. Million manhours worked 8.41 Accident sta�s�cs are recorded and reported according Average Number of permanent employee 942 to the Tata Group Safety Repor�ng Guidelines. Minor Average Number of Contractual Staff 23412 injuries requiring only first aid where the employee immediately returns to work are recorded as First Aid We have conducted detailed inves�ga�ons into these Cases. Fatali�es are reported separately and are also incidents and have iden�fied steps that would prevent included in the Total Recordable Cases (TRC). Lost �me reoccurrence of injuries in situa�ons such as those is calculated in terms of man hours on scheduled leading to these fatali�es. These preven�ve measures working days. Total Man-hours Worked have been have been implemented at the concerned business calculated using the formula: units and have also been rolled out across the company. Man-hours worked = Total Workforce x 8 (hours per Implementa�on checks on the inves�ga�on day) x 24 (working days per month) x 12 (months a recommenda�ons have also been carried out to ensure year). robustness of the preven�ve ac�ons.

62 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 63 3.3 COMMUNITY DEVELOPMENT POLICIES AND COMMITMENTS business opportuni�es to micro enterprises, ar�sans class X / class XII and are desirous of immediate and social impact organiza�ons. We con�nue to build employment-enabling educa�on. IHCL’s CSR and Sustainability Policy the bridges needed for a more humane and inclusive MANAGEMENT APPROACH In 2018-19, we supported 14 Skill Development Centers society – be it through our strategy for recrui�ng This policy (h�ps://www.tajhotels.com/content/dam/ and Faculty Development Programmes in associa�on IHCL and its partners have historically been contribu�ng workforce from North East and small towns in India; our thrp/investors/CSR-Policy-IHCL.pdf) is the basis for our with Tata Strive in Mumbai, Bangalore, Jaipur and towards the be�erment of underprivileged and socially efforts for driving inclusion and diversity in our community development undertakings, which are also underserved regions like J & K, North East and UP. We disadvantaged communi�es by suppor�ng their supplier-base; se�ng up of the Taj Public Service aligned with the Tata Affirma�ve Ac�on Programme. also offer a 3-Year Bachelors Degree in Voca�onal livelihoods, art and culture as an integral part of the Welfare Trust post 26/11 terror a�acks in Mumbai; The implementa�on of community development Educa�on Programme in partnership with Tata Ins�tute culture seeded by our founder J N Tata. Despite decades extending support for disaster−affected families in Tamil programmes is in accordance with the CSR guidelines of of Social Sciences at 15 of our hotels in Mumbai, Delhi, of state welfare and charitable contribu�ons, social Nadu, Bihar, Ladakh, Sunderbans, U�arakhand, Gujarat the Companies Act 2013 and also goes beyond Bangalore, Kolkata and Goa, with 200 youths inequity and unequal access to organized businesses & Rajasthan; ins�tu�onalizing CSR immersion compliance. undergoing training in various modules. This year, IHCL s�ll con�nues to be a challenge is modern India. programmes for our young management trainees; or has also ini�ated a short bridge programme that The target groups for community development our Volunteers extending �me & knowledge to make a IHCL Vision for Inclusion & Affirma�ve Ac�on: prepares youth for jobs, in associa�on with Head Held programmes have been iden�fied through consulta�ons difference to the lives of the less fortunate around us. High Founda�on – offering basic career awareness, As the opportuni�es for livelihoods expand in the with our NGO partners, partnerships with government Over the few years in between, despite suffering spoken English & so� skills training to underserved growing travel and tourism industry, IHCL con�nues to agencies, and through needs iden�fied by our teams in business losses, our CSR journey has con�nued. All our youth in remote regions, in 6 loca�ons including Mysore build capabili�es and further livelihoods of the each unit who are deeply familiar with local contexts. endeavours to create a posi�ve change in the world tribal school (SVYM), Tumkur, Gulbarga, Bhandara, following target communi�es: The intent of our programmes is to reach out to around us are guided by our commitment and Dimapur, etc. Through these ini�a�ves, we have not underprivileged groups and marginalized belts around investment in con�nuing to be a respected business • Economically Weaker Sec�ons & only been involved in enabling skilling & cer�fica�on for our loca�ons. house with a social purpose. Low Income Group Women & Youth thousands of school dropout youth from under-served Our community development programmes priori�ze This year, IHCL’s corporate responsibility prac�ces and communi�es and regions, but have also offered • Communi�es from Scheduled Caste Goal 8 (Decent work and economic growth) of the programmes were recognized by SKOCH Merit Awards, employment to many who chose to work with our • CCommuni�es from Scheduled Tribes SDGs. ASSOCHAM awards for effec�ve collabora�on with Tata hotels and enabled many others to work elsewhere in Strive. The company was also listed as 50 Most Inclusive the industry. IHCL has also been suppor�ng the Ins�tute • Differently-abled Businesses in India by the Shared Value Ini�a�ve in of Hotel Management, Aurangabad since its incep�on in • Tradi�onal Ar�sans associa�on with Ins�tute for Strategy and 1989, enabling one of the best educa�on in this space Compe��veness, Harvard Business School. in India. IHCL shall work, in a phased manner, towards making its business ecosystem more inclusive by embedding this We have championed the cause of skilling less This furthers our commitment to strengthen gender intent in building a skilled talent pool for industry; hiring privileged youth in the country since more than a diversity and take affirma�ve ac�on for youth from of workforce and procuring business products & decade; long before the incep�on of the CSR mandatory socially backward communi�es. We collaborate with services. IHCL shall also nurture and promote the spend under the Companies Act, 2013 in the country. civil society partners to build skills and enhance income genera�on for tradi�onal ar�sans, less privileged unique culture & heritage of tribal communi�es and As we stand at an inflec�on point of transforma�onal women, cancer affected families, socially backward tradi�onal ar�sans & cra�smen under its CSR growth, we are undertaking several ini�a�ves to build castes / tribes. Many of our hotels support their commitment to preserve and promote natural & talent pools of youth who find working with us neighborhoods by maintaining their peripheral areas, cultural heritage. meaningful & aspira�onal; and not just for us, but these Ac�ons and Targets iden�fied tourism spots & heritage sites. Our talent pools also serve our larger industry. programmes are designed to go beyond charity and Our interven�ons address 3 focus areas: It’s a known fact how Indian youth at the bo�om of the leverage our key business strengths, value chains, • Community Livelihoods through skilling, enterprise pyramid lack �mely guidance and handholding for what partner networks and employee volunteering to enable development, and promo�ng arts and handicra�s they can do post high school to become employable. capability development and empowerment of Our CSR and Affirma�ve Ac�on efforts have been beneficiaries. • Suppor�ng Neighborhoods, through the focused on addressing this gap. Our volunteers and CSR maintenance and beau�fica�on of public spaces & As part of our culture, we have our young managers go teams have built capaci�es of several not-for-profit sites of tourist interest through a 45-day Community Immersion s�nt to organiza�ons and founda�ons (like Pratham, Don nurture the culture of giving back to society, inclusion Boscos, Ambuja Cement Founda�on, Kotak Educa�on • Welfare Ini�a�ves that enable communi�es to and affirma�ve ac�on. This is to facilitate lived Founda�on, etc.) over the last decade to offer short and access medical care, essen�al services and experience for our future business leaders, to sensi�ze prac�cal skilling programmes in hospitality – training & emergency relief in case of disasters them to the development challenges of India and make cer�fying over 25,000 school dropout youth with over a difference to our target communi�es. Over the last decade, our CSR has focused on Building 80% placement ra�o. We help our not-for-profit Livelihoods in the country by skilling less-privileged & partners run such courses in housekeeping, food & As a part of our commitment to driving diversity and school dropout youth and by extending handholding & beverage services, kitchen and bakery trades and social inclusion in our supply chain, we have internally enable industrial exposure for youth who have passed mapped and iden�fied 30+ items from our

64 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 65 purchase-basket that can be co-developed & procured RESPONSIBILITIES from small scale, social purpose endeavours. Over and above our flagship programme that promotes Benarasi Key community development programmes in each hotel silk weaving & training of women in this unique art; are anchored by the HR managers, with the support of many of our hotels also procure several other items the General Manager, Procurement teams and made by tradi�onal ar�sans, small−scale farmers, employee volunteers. Other teams such as engineering, cancer pa�ents & families, women SHGs & women who food produc�on, housekeeping and security may be work from homes, differently-abled and from involved according to the nature of the project. enterprises owned by backward castes and tribes. Responsibility for project implementa�on is shared between hotel General Managers and the corporate Furthering this value chain diversity and inclusion CSR team. The programmes are guided by the IHCL philosophy, our Taj Safaris teams have built capaci�es of Board CSR and Sustainability Commi�ee. the tribal women’s group near Kanha to run a snacks joint and Pardhi (tribal) youth group near Panna Na�onal Park to enable community−based tourism OPERATIONS WITH LOCAL COMMUNITY trails. Similarly, our hotel in Corbe� has co-developed a ENGAGEMENT range of special local grass-based table ware with local women ar�sans. 53 of the 60 business units covered in this report implemented structured community development We recognize that heritage and authen�c cultural programmes and voluntary ac�vi�es with a dedicated experiences create value for our industry. We aim to budget under our CSR focus areas, in addi�on to preserve and promote these sites for future genera�ons employee volunteering. Of the rest, 6 hotels through neighborhood development programmes. We par�cipated in volunteering ac�vi�es while 1 unit was support heritage sites like the Varanasi ghats, the closed for renova�ons during the repor�ng period. Na�onal Railway Museum in Delhi and the Gateway of India precinct in Mumbai. We also enable heritage experiences involving Indian regional culinary heritage 930 and that of tribal communi�es from East India. ar�sans and cultural 7034 performers provided with persons trained exhibi�on spaces and across India livelihood opportuni�es

2 28 heritage areas beneficiaries BENEFICIARIES adopted supported to improve their homestay and tourist trail services 30 tribal community public spaces clusters supported 17+ maintained to preserve tradi�onal cuisine With a similar aim in mind, we maintain public areas such as roads, gardens and bus stops in our vicinity by extending maintenance and repairs. Our na�onal 26 Young Managers undertook 9 CSR presence means that we are among the first to know of immersion programmes natural calami�es, and in these situa�ons, we extend emergency relief as part of the Tata Disaster Response Network and through our employee volunteers.

66 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 67 LIST OF HOTELS En�ty Name Property Name En�ty Name Property Name COVERED IN REPORTING The Indian Hotels Taj Wellington Mews The Indian Hotels The Gateway Hotel - Company Limited Luxury Residences, Mumbai Company Limited Bengaluru

The Indian Hotels Taj Yeshwantpur, Bengaluru Jalan Intercon�nental The Gateway Hotel Company Limited Hotels Pvt. Ltd. EM Bypass, Kolkata

Newlight Hotels & Resorts Ltd. Vivanta, Vadodara Rangwanis Hotels Pvt. Ltd. Pratap Mahal, Ajmer – En�ty Name Property Name En�ty Name Property Name IHCL SeleQ�ons

Rambagh Palace Hotels Rambagh Palace, Jaipur Muthoot Hotels Pvt. Ltd. Taj Green Cove Resorts & PIEM Hotels Ltd. The Gateway Hotel, Leisure Hotels Ltd. Taj Corbe� Resort & Spa & Resorts Ltd. Spa, Kovalam Ambad, Nashik

The Indian Hotels Savoy, Ooty - IHCL The Indian Hotels Taj Hari Mahal Palace, Gujarat JHM Hotels Ltd. The Gateway Hotel, Dhoot Resorts and Spa Pvt. Ltd. The Gateway Resort, Company Limited SeleQ�ons Company Limited Jodhpur Athwalines, Surat Damdama Lake, Gurgaon

Rambagh Palace Hotels SMS Hotel, Jaipur The Indian Hotels Taj Holiday Village Benaras Hotels Ltd. The Gateway Hotel, The Indian Hotels The Taj Mahal Hotel, & Resorts Ltd. Company Limited Resort & Spa, Goa Balaghat Road, Gondia Company Limited New Delhi

Bangalore Airport Taj Bangalore The Indian Hotels Taj Jai Mahal Palace, The Indian Hotels The Gateway Hotel, The Indian Hotels Taj West End, Bangalore Hotel Ltd. Company Limited Jaipur Company Limited Beach Road, Calicut Company Limited

Taj GVK Hotels & Taj Banjara, Taj GVK Hotels & Taj Krishna, Hyderabad Oriental Hotels Ltd. The Gateway Hotel, Marudhar Hotels Pvt. Ltd Umaid Bhawan Palace, Resorts Ltd. Hyderabad Resorts Ltd. Beach Road, Visakhapatnam Jodhpur

Khanna Hotels Pvt. Ltd. Taj Bekal Resort & Spa, Taj Kerala Hotels and Taj Kumarakom Oriental Hotels Ltd. Gateway Coonoor – IHCL United Hotels Ltd. Ambassador, IHCL Kerala Resorts Limited Resort & Spa, Kerala SeleQ�ons SeleQ�ons, Delhi

The Indian Hotels Taj Bengal, Kolkata The Indian Hotels Taj Lake Palace, Udaipur PIEM Hotels Ltd. Tajview Agra – IHCL The Indian Hotels Vivanta - Aurangabad Company Limited Company Limited SeleQ�ons Company Limited

Taj GVK Hotels & Taj Chandigarh The Indian Hotels Taj Lands End, Mumbai Benaras Hotels Ltd. Taj Ganges, Varanasi Taj GVK Hotels & Vivanta Hyderabad, Resorts Ltd. Company Limited Resorts Ltd. Begumpet

HB Estate Developers Ltd. Taj City Centre, PIEM Hotels Ltd. Taj M G Road, Unique Proper�es Pvt. Ltd. The Gateway Hotel, PIEM Hotels Ltd. Blue Diamond, Pune, Gurugram Bengaluru Gir Forest, Junagadh IHCL SeleQ�ons

Taj GVK Hotels & . Taj Club House, Kaveri Retreats and Resorts Ltd. Taj Madikeri Resort and PSC Pacific Vivanta Pune Hinjewadi The Indian Hotels Vivanta New Delhi - Resorts Ltd Chennai Spa, Coorg Company Limited Dwarka

The Indian Hotels Taj Connemara, The Indian Hotels Taj Mahal Palace & Lebara Hotels Pvt. Ltd. The Gateway Hotel - IT PIEM Hotels Ltd. Taj Mahal Lucknow Company Limited Chennai Company Limited Tower, Mumbai Expressway, Chennai

Oriental Hotels Ltd. Taj Fisherman's Cove Oriental Hotels Ltd. Taj Malabar Resort & Spa, Taj Kerala Hotels and Gateway Varkala - IHCL The Indian Hotels Vivanta Guwaha� Resort & Spa, Chennai Cochin Resorts Limited SeleQ�ons Company Limited

Taj GVK Hotels & Resorts Ltd. Taj Deccan, Benaras Hotels Ltd. Taj Nadesar Palace, Taj Karnataka Hotels and The Gateway Hotel, KM Kamat Construc�on & Vivanta Goa Panaji Hyderabad Varanasi Resorts Ltd. Road, Chikmagalur Resorts Pvt. Ltd.

The Indian Hotels Taj Exo�ca Resort & Spa, The Indian Hotels Taj Palace, Delhi GV Estates & Hotels Pvt. Ltd. The Gateway Hotel, PIEM Hotels Ltd. President, IHCL Company Limited Goa Company Limited M G Road, Vijayawada SeleQ�ons, Mumbai

The Indian Hotels Taj Falaknuma Palace, Green Woods Palaces & Taj Santacruz, Mumbai Taj Kerala Hotels and The Gateway Hotel, Rambagh Palace Hotels & Vivanta Sawai Hyderabad Resorts Pvt. Ltd. Resorts Limited Marine Drive, Ernakulam Resorts Ltd. Madhopur Lodge

Oriental Hotels Ltd. Vivanta Fisherman’s PIEM Hotels Ltd. Taj Swarna, Oriental Hotels Ltd. The Gateway Hotel, Old Port Godavari Shilpkala Private Ltd. Vivanta Surajkund, NCR Cove Resort & Spa, Chennai Amritsar Road, Manjarun, Mangalore

The Indian Hotels Taj Fort Aguada Resort & The Indian Hotels Taj Usha Kiran Palace, Oriental Hotels Ltd. The Gateway Hotel, Oriental Hotels Ltd. Vivanta Coimbatore Company Limited Spa, Goa Company Limited Gwalior Pasumalai, Madurai

66 68 IHCLIHCL Sustainability Sustainability Report Report 2018-19 2018-19 IHCL Sustainability Report 2018-19 6769 En�ty Name Property Name En�ty Name Property Name En�ty Name Property Name En�ty Name Property Name

The Indian Hotels Vivanta Bengaluru Indian Hotels Company Limited Vivanta Kathmandu Roots Corpora�on Limited Ginger Hotel Noida Managed Proper�es, Ginger Ginger Hotel Vizag Company Limited Whitefield

Taj Safaris Limited Baghvan Pench, A Taj Safari, Roots Corpora�on Limited Ginger Hotel-Agartala Roots Corpora�on Limited Ginger Hotel Pantnagar Managed Proper�es, Ginger Ginger Hotel Ahmedabad Pench Na�onal Park silver leaf

Taj Safaris Limited Banjaar Tola, A Taj Safari, Roots Corpora�on Limited Ginger Hotel-Ahmedabad Roots Corpora�on Limited Ginger Hotel Pondicherry Managed Proper�es, Ginger Ginger Hotel Ahmedabad Kanha Na�onal Park white leaf

Taj Safaris Limited Mahua Kothi, A Taj Safari, Roots Corpora�on Limited Ginger Hotel Bengaluru Roots Corpora�on Limited Ginger Hotel Pune (Wakad) Managed Proper�es, Ginger Ginger Hotel gurugram Bandhav Garh Na�onal Park Whitefield

Taj Safaris Limited Pashan Garh, A Taj Safari, Roots Corpora�on Limited Ginger Hotel Bengaluru Roots Corpora�on Limited Ginger Hotel Pune (pimpri) Managed Proper�es, Ginger Ginger Hotel Vadodara Panna Na�onal Park (Inner ring road) (RCR)

India (Managed Proper�es) Vivanta Dal View, Roots Corpora�on Limited Ginger Hotel Roots Corpora�on Limited Ginger Hotel Surat Managed Proper�es, Ginger Ginger Hotel Goa Dona Srinagar Bhubaneshwar Paula

Interna�onal Taj Dubai Roots Corpora�on Limited Ginger Hotel Chennai Roots Corpora�on Limited Ginger Hotel Thane Roots Corpora�on Limited Ginger TCS Cochin (Managed Proper�es)

Interna�onal Taj Exo�ca Resort & Spa, Roots Corpora�on Limited Ginger Hotel Chennai IITM Roots Corpora�on Limited Ginger Hotel Trivandrum Roots Corpora�on Limited Ginger TCS Nivant (Pune) (TAL Maldives Resorts Pvt. Ltd) Maldives

Interna�onal Taj Coral Reef Resort & Roots Corpora�on Limited Ginger Hotel Faridabad Roots Corpora�on Limited Ginger Hotel Vadodara Roots Corpora�on Limited Ginger TCS Siruseri (TAL Maldives Resorts Pvt. Ltd) Spa, Maldives

Interna�onal (The Indian Hotels Taj Exo�ca Resort and Spa, Roots Corpora�on Limited Ginger Hotel goa Roots Corpora�on Limited Ginger Hotel Noida The Indian Hotels Vivanta Connemara, Company Limited) Andamans Extension Company Limited Chennai

Interna�onal Taj Pamodzi, Lusaka Roots Corpora�on Limited Ginger Hotel Guwaha� Roots Corpora�on Limited Ginger Hotel Vapi TAJ SATS Air Catering Limited TAJ SATS (Managed Proper�es)

Interna�onal Taj Samudra, Colombo Roots Corpora�on Limited Ginger Hotel Indore Roots Corpora�on Limited Ginger Hotel Mumbai (TAL Lanka Hotels PLC) Telli Gali

Interna�onal Taj Bentota Resort & Spa Roots Corpora�on Limited Ginger Hotel Jaipur Roots Corpora�on Limited Ginger Hotel gom� nagar, (Lanka Island Resorts Ltd.) lucknow

Interna�onal The Gateway Hotel, Roots Corpora�on Limited Ginger Hotel Jamshedpur Roots Corpora�on Limited Ginger Hotel aurangabad (Managed Proper�es) Airport Garden, Colombo

Interna�onal Taj Tashi, Thimpu Roots Corpora�on Limited Ginger Hotel Mangalore Roots Corpora�on Limited Ginger TCS Cochin (Managed Proper�es)

Interna�onal Vivanta Rebak Island, Roots Corpora�on Limited Ginger Hotel Mumbai Roots Corpora�on Limited Ginger TCS Nivant (Pune) (Managed Proper�es) Langkawi (Andheri East)

Interna�onal The Pierre, New York Roots Corpora�on Limited Ginger Hotel Mysore Roots Corpora�on Limited Ginger TCS Siruseri (United Overseas Holding Inc)

Interna�onal Taj Campton Place, Roots Corpora�on Limited Ginger Hotel Nashik Managed Proper�es, Ginger Ginger Hotel Gurugram (United Overseas Holding Inc) San Francisco (Manesar)

Interna�onal Taj Cape Town Roots Corpora�on Limited Ginger Hotel Delhi Managed Proper�es, Ginger Ginger Hotel Katra Jammu (IHMS (SA) Pty Ltd) (Yatri Niwas link)

St. James Court Hotels Ltd St. James Court, Roots Corpora�on Limited Ginger Hotel East Delhi Managed Proper�es, Ginger Ginger Hotel Tirupur A Taj Hotel, London

70 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 71 GLOSSARY ASSURANCE STATEMENT

CDP Carbon Disclosure Project

COP Communica�on on Progress (UNGC report)

CSR Corporate Social Responsibility

ESG Environment Social Governance The Board of directors and Management The Indian • Review of informa�on on sample GRI Standards Hotels Company Limited Mumbai, India disclosures through site visits, covering the following FDA US Food and Drug Associa�on hotels: Ernst & Young Associates LLP (EY) was retained by the • Taj Krishna, Hyderabad Indian Hotels Company Limited (the 'Company') to = FSSAI Food Safety and Standards Authority of India provide independent assurance to its annual • The Taj Mahal Palace and Tower, Mumbai Sustainability Report (the 'Report) for the Financial Year • The Gateway Hotel EM Bypass, Kolkata GHG Green House Gases 2018-19. • Vivanta by Taj Yeshwantpur, Bengaluru

IPCC Intergovernmental Panel for Climate Change INTRODUCTION • Taj Santacruz, Mumbai • Taj Palace, New Delhi The development of the Report is based on the Global kgCO e Kilograms of CO equivalent 2 2 Repor�ng Ini�a�ve (GRI) Standards; its content and • Vivanta By Taj, Guwaha� presenta�on is the sole responsibility of the • Rambagh Palace, Jaipur MJ Mega Joules management of the company. Ey's responsibility, as agreed with the management of the company, is to • Savoy Hotel, Ooty ODS Ozone Deple�ng Substances provide independent assurance on the report content • Vivanta by Taj, Aurangabad as described in the scope of assurance. Our • Taj Madikeri Resort and Spa, Coorg responsibility in performing our assurance ac�vi�es is to SDGs Sustainable Development Goals the management of the Company only and in • PashanGarh, Panna Na�onal Park (Taj Safari) accordance with the terms of reference agreed with the • Taj City Centre, Gurugram TJ Tera Joules (106 MJ) Company. We do not therefore accept or assume any • Taj Malabar Resort & Spa, Kochi responsibility for any other purpose or to any other UNGC United Na�ons Global Compact person or organiza�on. Any dependence that any such • Ginger Hotels, Corporate Office, Mumbai third party may place on the Report is en�rely at its • Taj Bekal Resort & Spa, Kerala own risk. the assurance report should not be taken as a basis for interpre�ng the company's overall • TajSATS, Mumbai performance, except for the aspects men�oned in the scope below.

SCOPE OF ASSURANCE LIMITATIONS OF OUR REVIEW

The scope of assurance covers the following aspects of The assurance scope excludes: the Report: • Opera�ons of the company other than those men�oned in the 'Scope of Assurance'; • Data and informa�on related to the Company's • Aspects of the Report and data/informa�on other sustainability performance for the period 1st April than those men�oned above; 2018 to 31st March 2019; • Data and informa�on outside the defined repor�ng • The Company's internal protocols, processes, and period i.e. 1st April 2018 to 31st March 2019; controls related to the collec�on and colla�on of sustainability performance data;

72 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 73 • The Company's statements that describe expression among data owners and strengthen periodic of opinion, belief, aspira�on, expecta�on, aim or sustainability data collec�on and internal reviews to future inten�on provided by the company; ensure uniform and accurate repor�ng. GRI CONTENT INDEX • Data and informa�on on economic and financial performance of the company. OUR CONCLUSIONS On the basis of our review scope and methodology, ASSURANCE CRITERIA nothing has come to our a�en�on that would cause us not to believe that the Report presents the Company's Page The assurance engagement was planned and performed sustainability performance, in material respect, in line GRI Standard Disclosure Number UNGC Principles in accordance with the Interna�onal Federa�on of with the GRI standards principles and criteria. Accountants' Interna�onal Standard for Assurance GRI 101: FOUNDATION 2016 Engagements Other than Audits or Reviews of Historical OUR ASSURANCE TEAM AND INDEPENDENCE GENERAL DISCLOSURES Financial Informa�on (ISAE 3000). Our GRI 102: 102-1 Name of the organiza�on 10 evidence-gathering procedures were designed to obtain our assurance team, comprising of mul�disciplinary a 'limited' level of assurance (as set out in ISAE 30000, professionals, has been drawn from our climate change General: 102-2 Ac�vi�es, brands, products and services 10 and sustainability network and undertakes similar as well as conformance of sustainability performance Disclosure2016 102-3 Loca�on of Headquarters Back Cover disclosures as per GRI Standards. engagements with a number of significant Indian and interna�onal businesses. As an assurance provider, EY is 102-4 Loca�on of opera�ons Back Cover required to comply with the independence 102-5 Ownership and legal forms 13 WHAT WE DID TO FORM OUR CONCLUSIONS 102-6 Markets Served 12 In order to form our conclusions we undertook the 102-7 Scale of the organiza�on 11 following key steps: For Ernst & Young Associates LLP • Interviews with select key personnel and the core 102-8 Informa�on on Employees and other workers 14 Principle 3: Businesses team responsible for the prepara�on of the Report should uphold the freedom of to understand the Company's sustainability vision, associa�on and the effec�ve mechanism for management of sustainability issues recogni�on of the right to and engagement with key stakeholders; collec�ve bargaining • Assurance visits to the Company's 17 hotels, as CHAITANYA KALIA 102-9 Supply Chain 17 Partner men�oned in the 'scope of Assurance' above;\ 102-10 Significant changes to the organiza�on and 6 Mumbai • Interac�ons with the key personnel at the supply chain Company's sites/proper�es to understand and 102-11 Precau�onary Principle or approach 17 review the current processes in place for capturing 102-12 External Ini�a�ves 17 sustainability performance data; 102-13 Memberships of Associa�ons 17 • Review of relevant documents and systems for gathering, analyzing and aggrega�ng sustainability 102-14 Message from senior membership 4,5,6,7 performance data in the repor�ng period; 102-15 Key Impacts, risks and opportuni�es 20 • Review of selected qualita�ve statements and 102-16 Values, principles, standards, and 22 Principle 2: Human Rights sample case studies in the Report norms of behaviour Business should make sure they are not complicit in human rights abuses. OUR OBSERVATIONS Principle 4: Businesses should uphold the elimina�on of all The Company undertook a materiality iden�fica�on and forms of forced and priori�za�on exercise in the repor�ng period, which compulsory labour. was carried out through discussions with its senior Principle 5: Businesses should management. The Report describes the Company's uphold the effec�ve aboli�on ongoing efforts on various environmental and social of child labour. Principle 10: aspects. Going forward, there is scope to further Businesses should work against enhance understanding of repor�ng requirements corrup�on in all its forms, including extor�on and bribery.

74 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 75 Page Page GRI Standard Disclosure Number UNGC Principles GRI Standard Disclosure Number UNGC Principles GRI 101: FOUNDATION 2016 GRI 201: ECONOMIC PERFORMANCE GENERAL DISCLOSURES MATERIAL TOPICS 102-17 Mechanisms for advice and concerns 22 Principle 4: Businesses should GRI 103: 103-1 Explana�on of the material topic and about ethics uphold the elimina�on of all Management its boundary 26 forms of forced and compulsory labour. Approach 2016 103-2 The management approach and its Principle 5: Businesses should components 30 uphold the effec�ve aboli�on 103-3 Evalua�on of the Management Approach 30 of child labour. Principle 10: GRI 201: Economic 201-1 Direct economic value generated and Businesses should work against corrup�on in all its forms, performance 2016 distributed 30 including extor�on and bribery. GRI 302:ENERGY GRI 103: 103-1 Explana�on of the material topic and 26 Principle 7: Businesses should 102-18 Governance structure 23 Management its boundary support a precau�onary 102-32 Highest governance body’s role in Approach 2016 103-2 The management approach and its 36 approach toenvironmental sustainability repor�ng 24 components challenges Principle 8: 103-3 Evalua�on of the Management Approach 36 Businesses should undertake 102-40 List of stakeholder groups 24 ini�a�ves to promote 102-41 Collec�ve bargaining agreements 17 GRI 302: Energy 302-1 Energy consump�on within the 42 greater environmental 102-42 Iden�fying and selec�ng stakeholders 24 2016 organiza�on responsibility. Principle 9: 102-43 Approach to stakeholder engagement 24 302-3 Energy Intensity 43 Businesses shouldencourage 302-4 Reduc�on of energy consump�on 46 the development and 102-44 Key topics and concerns raised 26 diffusion of environmentally 102-45 En��es included in the consolidated friendly technologies. financial statements 9 GRI 303: WATER 102-46 Defining report content and topic boundary 9,26 GRI 103: 103-1 Explana�on of the material topic and its Principle 7: Businesses 102-47 List of material topics 26 Management boundary 26 should support a Approach 2016 103-2 The management approach and its precau�onary approach to 102-48 Restatements of informa�on 9 components 26 environmental challenges 102-49 Changes in repor�ng 9 103-3 Evalua�on of the Management Approach 36 Principle 8: Businesses 102-50 Repor�ng period 9 Approach should undertake ini�a�ves 102-51 Date of most recent report 9 GRI 303: 303-1 Water withdrawal by source 47 to promote greater Water 2016 environmental responsibility. 102-52 Repor�ng cycle 9 303-2 Water sources significantly affected by Principle 9: Businesses 102-53 Contact point for ques�ons regarding withdrawal of water 48 should encourage the the report Back Cover 303-3 Water recycled and reused 49 development and diffusion of environmentally friendly 102-54 Claims of repor�ng in accordance with the technologies. GRI Standards 9 GRI 305: EMISSIONS 102-55 GRI content index 75 GRI 103: 103-1 Explana�on of the material topic and its 26 Principle 7: Businesses 102-56 External assurance 75 Management boundary should support a Approach 2016 103-2 The management approach and its precau�onary approach to components 36 environmental challenges

76 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 77 Page Page GRI Standard Disclosure Number UNGC Principles GRI Standard Disclosure Number UNGC Principles GRI 201: ECONOMIC PERFORMANCE GRI 201: ECONOMIC PERFORMANCE MATERIAL TOPICS MATERIAL TOPICS 103-3 Evalua�on of the Management Approach 36 Principle 8: Businesses GRI 401: EMPLOYMENT 305-1 Direct (Scope-1) GHG Emissions 46 should undertake ini�a�ves GRI 401: 401-1 New employee hires and employee turnover 56 Principle 6: Businesses 305-2 Energy Indirect (Scope-2)GHG Emissions 46 to promote greater Employment 401-2 Benefits provided to full-�me employees that should uphold the 305-4 GHG Emission Intensity 46 environmental responsibility. 2016 are not provided to temporary or part-�me elimina�on of discrimina�on 305-5 Reduc�on of GHG Emissions 46 Principle 9: Businesses employees 57 in respect of employment 401-3 Parental leave 58 and occupa�on. 305-6 Emissions of ozone-deple�ng substances (ODS) 47 should encourage the development and diffusion of GRI 402: LABOR MANAGEMENT environmentally friendly GRI 103: 103-1 Explana�on of the material topic and its technologies. Management boundary 26 Approach 2016 103-2 The management approach and its NON GRI: CIRCULAR ECONOMY components 54 GRI 103: 103-1 Explana�on of the material topic and its Principle 7: Businesses 103-3 Evalua�on of the Management Approach 54 Management boundary 26 should support a GRI 402: Labor/ 402-1 Minimum no�ce periods regarding Principle 3: Labour Approach 2016 103-2 The management approach and its precau�onary approach to Management opera�onal changes 58 Businesses should uphold the components 36 environmental challenges Rela�ons 2016 freedom of associa�on and the 306-2 Waste by type and disposal method 50 Principle 8: Businesses effec�ve recogni�on of should undertake ini�a�ves to the right to collec�ve promote greater bargaining. environmental responsibility. GRI 403: OCCUPATIONAL HEALTH AND SAFETY Principle 9: Businesses should GRI 103: 103-1 Explana�on of the material topic and 26 encourage the development Management its boundary and diffusion of Approach 2016 103-2The management approach and its components 61 environmentally friendly 103-3 Evalua�on of the Management Approach 61 technologies. GRI 403 403-2 Types of injury and rates of injury, NON GRI: SUSTAINABILITY EFFORTS Occupa�onal occupa�onal diseases, lost days, and Ac�ons and targets 30 Health And absenteeism, and number of work-related fatali�es 63 Responsibili�es & Resources 37 Safety 2016 GRI 401: EMPLOYMENT GRI 404: TRAINING AND EDUCATION GRI 103: 103-1 Explana�on of the material topic and its Principle 4: Businesses Management boundary 26 should uphold the GRI 103: 103-1 Explana�on of the material topic and Approach 2016 103-2 The management approach and its elimina�on of all forms of Management its boundary 26 components 54 forced and compulsory Approach 2016 103-2 The management approach and its components 54 103-3 Evalua�on of the Management Approach 54 labour. 103-3 Evalua�on of the Management Approach 54 Principle 5: Businesses GRI 404: Training 404-2 Programs for upgrading employee skills Principle 6: Businesses should uphold the effec�ve and Educa�on and transi�on assistance programs 59 should uphold the aboli�onof child labour. 404-3 Percentage of employees receiving regular elimina�on of discrimina�on Principle 6: Businesses performance and career development reviews 60 in respect of employment should uphold the and occupa�on elimina�on of GRI 405: DIVERSITY AND EQUAL OPPURTUNITY discrimina�on in respect of employment and GRI 103: 103-1 Explana�on of the material topic and occupa�on. Management its boundary 26 Approach 2016 103-2 The management approach and its components 48 103-3 Evalua�on of the Management Approach 49

78 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 79 Page Page GRI Standard Disclosure Number UNGC Principles GRI Standard Disclosure Number UNGC Principles GRI 201: ECONOMIC PERFORMANCE GRI 201: ECONOMIC PERFORMANCE

MATERIAL TOPICS MATERIAL TOPICS GRI 405: DIVERSITY AND EQUAL OPPURTUNITY NON GRI: DIGITALISATION

GRI 405:Diversity 405-1 Diversity of governance bodies and Principle 6: Businesses GRI 103: 103-1 Explana�on of the material topic and its & Equal employees 60 should uphold the Management boundary 26 Oppurtunity 405-2 Ra�o of basic salary and remunera�on of elimina�on of discrimina�on Approach 2016 103-2 The management approach and its 2016t women to men 60 in respect of employment components 33 and occupa�on 103-3 Evalua�on of the Management Approach 33 GRI 413: LOCAL COMMUNITIES GRI 103: 103-1 Explana�on of the material topic and Management its boundary 26 Approach 2016 103-2 The management approach and its components 64 103-3 Evalua�on of the Management Approach 64 GRI 413: Local 413-1 Opera�ons with local community engagement, Principle 1: Human Rights communi�es impact assessments, and development programs 66 Businesses should support 2016 and respect the protec�on of interna�onally proclaimed human rights NON GRI: CUSTOMER DELIGHT

GRI 103: 103-1 Explana�on of the material topic and Management its boundary 26

Approach 2016 103-2 The management approach and its components 31 103-3 Evalua�on of the Management Approach 31 NON GRI: GROWTH AND SCALE GRI 103: 103-1 Explana�on of the material topic and Principle 1: Human Rights Management its boundary 26 Businesses should support Approach 2016 103-2 The management approach and its and respect the protec�on of components 32 interna�onally proclaimed 103-3 Evalua�on of the Management Approach 32 human rights Principle 10: Businesses should work against corrup�on in all its forms, including extor�on and bribery. NON GRI: BRAND, REPUTATION & COMMUNICATION 103-1 Explana�on of the material topic and its boundary 26 103-2 The management approach and its components 32 103-3 Evalua�on of the Management Approach 33 Principle 10: Businesses should 103-3 Evalua�on of the Management Approach 32

80 IHCL Sustainability Report 2018-19 IHCL Sustainability Report 2018-19 81