Building Sustainability

BANYAN TREE HOLDINGS LIMITED SUSTAINABILITY REPORT 2016 Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 1

Banyan Tree was founded with the core value of driving Contents Introduction 6 Sustainable sustainable development. 2 Tourism As a global hospitality group Our History of Sustainability Development 4 operating in diverse locations, Our Core Values 5 Banyan Tree’s concept of Building a Brand... for Good sustainability seeks to create 6 Sustainable Tourism 4 long term value for multiple Development Our Core stakeholders and destinations. Values The company’s triple bottom Embracing the line of economic, social, Environment and environmental success 8 8 Efficient helps direct sustainable Efficient Operations Operations development by aiming to 10 Projects by Location inspire associates, guests, 12 12 Banyan Tree Labs and and partners to take a wider Banyan Tree Labs Partnerships consideration encompassing and Partnerships a long-term view when making business decisions. 14 Sustainable Sustainable Business Business 14 Gallery, Spa, and MATTER 16 Workplace Diversity

Empowering Additional Scan this QR Code to 17 18 access to the online Seedlings Education People Information version of the Banyan Tree Sustainability Report 2016. Mentorships & Seedlings Café 17 22 Seedlings Mentorships Corporate Governance NOTE ABOUT PRINTING: & Seedlings Café This report has been printed on paper certified to come from sustainably managed forests. If you would like 23 additional copies or to share this report, we encourage you to join the bulk of shareholders who enjoy the soft copy 18 Future Directions report in order to reduce resource consumption from printing and distributing hard copies. The portable document Education format (PDF) soft copy is available for download via Banyan Tree’s website: www.banyantree.com. 20 All rights reserved. Some of the information in this report constitutes “forward-looking statements” that reflect Community Impact Banyan Tree Holdings Limited’s current intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which may be outside Banyan Tree’s control. You are urged to view all forward-looking statements with caution. No information herein should be reproduced without the express written permission of Banyan Tree. All information herein is correct at the time of publication.

Designed & Produced by C2 Design Studio 2 Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 3 INTRODUCTION

2007 Our History • Resource Conservation launched to support efficient operations 2006 across the group of Sustainability • Earth Day appreciation • Greening Communities launched to 2008 events launched across raise awareness for climate change resorts • Banyan Tree Lijiang 2005 • Seedlings Mentorships launched earns EarthCheck Sustainability has • Banyan Tree Holdings to empower young people via Silver Certified status • Phuket Tsunami Recovery Fund debuts trading on the education and mentorship 2009 been a core value (PTRF) Singapore Exchange • Banyan Tree Global • Asian Tsunami Recovery Fund • Banyan Tree publishes Foundation established for Banyan Tree (ATRF) its first ever Sustainability even before the • Banyan Tree becomes a Report founding member of United first hotel opened... Nations Global Compact in Singapore • Ms Claire Chiang begins 4 year term as the inaugural president 2010 for Singapore Compact for • 2011 Condé Nast Traveler World CSR, now known as Global Savers Awards- Overall Winner for Compact Network Singapore Large Hotel Chains • EarthCheck selected as strategic 2004 partner for certifying sustainable • Banyan Tree’s Corporate operations Social Responsibility Committee established

2003 2011 • Banyan Tree Maldives • Three pillar approach to sustainability Marine Lab starts includes Operational efficiency, construction as the first Bang Tao Bay Protecting biodiversity, and resort based research early 2006 Developing local capacity centre in Maldives

2001 • Green Imperative 2012 Fund (GIF) mechanismism • Banyan Tree Lijiang earns EarthCheck launched Gold Certified status, the first in China • GPS Development Services Ltd enters an alliance partnership with EC3 Global 1996 to offer more completely integrated sustainable development services • Banyan Tree Gallery opens first retail outlet in Phuket 2013 • Laguna Lăng Cô earns certification 1994 to EarthCheck’s Precinct Planning and Design Standard, the first in • Banyan Tree Phuket South East Asia opens, launching the brand • Social enterprise eatery Seedlings Café opens in Hoi An, Vietnam …when the company won the 1992 American 2014 Bang Tao Bay Express International 1992 early 1980’s • Build for Good and Stay for Good 2015 frameworks are launched • American Express and Hotel Association International Hotel • Stay for Good framework expands to include • Four future developments earn Meet for Good, Eat for Good, Gift for Good, and certification to the EarthCheck Environmental Award Association Environmental Spa for Good Design Standard Award for remediating “toxic for remediating a • Cleaning initiative commences group wide site” into Laguna Phuket • Seedlings Café Phuket begins • Over 25,800 guests participate in sustainability training of young adults “toxic” tin mine site. themed optional guest activities 4 INTRODUCTION Our Core Values

Mission We want to build globally recognised brands which, by inspiring exceptional experiences among our guests, instilling pride and integrity in our associates and enhancing both the physical and human environment in which we operate, will deliver attractive returns to our shareholders.

Ho KwonPing Claire Chiang Executive Chairman Chairperson Banyan Tree Banyan Tree This involves: Holdings Limited Global Foundation creating an enchantingly memorable experience for guests and customers The sustainability agenda requires leadership through our services and to walk the talk by developing a management products; infrastructure to execute the various strategies providing our associates with in achieving the goals set in creating value for fair and dignified employment which enhances their ability the environment, business, and community. to contribute to the company’s growth and elevates their job It is a collective effort, one step at a time, that prospects with Banyan Tree the Banyan Tree community, including our and beyond; associates, partners, and hotel guests, together enabling long term prosperity for the communities in which contributed in creating a quality environment we operate. This is achieved for all. We have learnt from experts and via our business conduct and operations as well as by implemented many initiatives that taught harnessing our competencies us how to execute better. to address issues facing the community; We are proud that from the very beginning exercising caution with when we started Banyan Tree, the ethos of respect to the environmental “embracing the environment and empowering impacts of our operations, and taking an active role people” has been an inalienable value we in the protection and believed in to define the way we build, operate, remediation of our global engage and inspire. ecosystems; conducting business with As we embark on a transformational change suppliers and vendors in a dignified, fair, and transparent with our two new global partners – AccorHotels manner, while working in and Vanke – our collective impact in achieving partnership to enhance societal benefits and reduce sustainability will create a bigger footprint environmental impacts; across the globe. generating sustained, Thank you for being a part of our journey; it has long-term returns on investment for our been meaningful as it was motivating for all. shareholders Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 5

Building a Brand... for Good

To deliver on our mission, All aspects of our business seek to have we have conceptualised a positive impact on our stakeholders, our values based on a so when guests and clients support us, they are doing Good for the “for Good” framework. communities and ecosystems. This starts with design and construction (Build for Good), runs through a guest’s Spa for Good time at our resorts (Stay for Good along with Meet for Good and Eat for • Showcase for local Good), and extends to Spa and Gallery heritage and outlets across the globe (Spa for Good ingredients and Gift for Good). • Vocational training through Banyan Tree Spa Academy

Gift for Good Stay for Good

• Community craft HOTEL GREEN SUSTAINABILITY SITE- showcase and global OPERATIONS IMPERATIVE THEMED GUEST SPECIFIC storefront Efficient and engaged FUND ACTIVITIES EFFORTS with communities, MECHANISM Passive, Active, Social & • “Retail with a difference” including sustainable Guest & Hotel Engaged Environmental supply chain Matching

ANNUAL CELEBRATIONS GREENING COMMUNITIES TOGETHER FEEDING COMMUNITIES TOGETHER First week in June Mid-October Meet for Good Eat for Good

• Sustainable events venue • Social enterprise • Provide sustainable events eatery • Second-party verified • Provide vocational sustainable training for young adults

In 2016, Banyan Tree launched its BuildforGood effort to engage and monitor the sustainability of hotel supply chains. • Local architecture and Created as a collaboration between materials EarthCheck and Banyan Tree, the tool • Protect/remediate site was built to easily incorporate increased • Third-party certified depth of review as well as allowing second- and third-party review and verification of vendor responses. 6 Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 7 INTRODUCTION Sustainable Tourism Development

Banyan Tree’s core values are embedded into every step 1 2 3 4 of the development process, CONCEPT DESIGN SUSTAINABLE CONSTRUCTION • Create vision for adding • Expert architects oversee BUILDING • Oversee development from initial concept through tourism income to destination design for tourism/ CERTIFICATION from a hospitality • Leverage cultural and hospitality experiences • All new developments to provider’s perspective to ongoing operations that physical beauty of site into • Embed operational efficiency be able to earn certification • Amid myriad adjustments are measured and third party hospitality business defining while also safeguarding to leading international from design to reality, success as environmental, the local ecology and sustainable building standards an expert enables the certified against industry social, and financial empowering local • Third party certification sustainable design communities validates the approach to mindset to be translated to average and best practice levels. deliver sustainable hospitality operations operations Banyan Tree is one of the few, if not the only, vertically integrated hospitality companies capable of taking developments from initial tourism concept through to ongoing sustainable operations year after year. Our teams have established track records of delivering on every step of the development process, not just for individual hotels, but also for precinct level integrated developments and resorts.

7 6 5 OPERATIONAL HOSPITALITY PRE-OPENING BENCHMARKING & OPERATIONS • Prepare and upskill teams CERTIFICATION • Manage and operate hotels, from local labor force • Annually benchmark and resorts, MICE venues, to deliver international certify to leading international recreational facilities, spa outlets, tourism standards sustainable tourism retail galleries, property sales, • Build local capacity and operations standards and vacation clubs enable the most direct • Validate operational outcomes • Core founding value of flow of tourism dollars and management approach sustainability embedded in all into households within against regional expectation aspects of hospitality operations the community Banyan Tree Huangshan China (baseline) and possibility (best practice) 8 Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 9 EMBRACING THE ENVIRONMENT

Eff icient Energy Group (Megajoules per Guest Night) Banyan Industry Best Operations 0 800 Tree Average Practice Through FY2015 441.4 649.3 455.4

FY2016 402.5 479.6 335.7 Continuing an initiative launched in 2007 to conserve natural resources, Banyan Tree % Cumulative 434.3 622.3 436.4 furthered this commitment in 2010 by 2.95 rolling out the EarthCheck Certified program increase from 2015 Individual Resort 2016 Highlight across all resorts. Because EarthCheck is Angsana the leading benchmarking, certification Laguna Phuket 140.3 442.0 309.4 and environmental management program used by the travel and tourism industry, Group it is also the most relevant and rigorous Greenhouse Gas Emissions global framework for monitoring and (Kilograms Carbon Dioxide equivalent per Guest Night) Banyan Industry Best reporting sustainable tourism practices and 0 100 Tree Average Practice achievements. For more details about the Through FY2015 45.1 79.9 55.9 EarthCheck methodology and approach, please visit www.earthcheck.org. FY2016 41.5 57.4 41.0

Cumulative 44.5 76.3 53.5 In 2016, 35 of our sectors had already % achieved EarthCheck Bronze Benchmarked 5.37 Individual Resort 2016 Highlight decrease from 2015 status, 28 had already completed Maison 0 10 certification (either Gold or Silver). Overall Souvannaphoum this means that 27 of the 39 hotels in Hotel by Angsana 0.8 8.2 5.7 which we have management or ownership interest, are already active within EarthCheck Group operational benchmarking and certification. Potable Water (Litres per Guest Night) Banyan Industry Best 0 2,600 Tree Average Practice EarthCheck Certified 2016 Through FY2015 1,593.8 2,493.1 1,745.4 FY2016 1,441.9 1,629.1 1,145.1 Gold Bronze % Cumulative 1,565.9 2,358.8 1,652.4 Certified Benchmarked 17.18 1 7 Individual Resort 2016 Highlight decrease from 2015 Banyan Tree Lijiang Angsana Tengchong • Banyan Tree Hot Springs Village Yangshuo Angsana Tengchong • 572.0 1808.0 1266.0 Angsana Xi’an Lintong Banyan Tree Hot Spring Village Headquarters Banyan Tree Seychelles Singapore Banyan Tree Club (2 offi ce sector buildings) & Spa Seoul Waste Sent to Landfill Group (Litres per Guest Night) Banyan Industry Best 0 8 Tree Average Practice Silver Earthcheck Through FY2015 5.01 5.97 4.22 27 Certified 1 Member FY2016 3.08 4.89 3.40 Banyan Tree Ringha Laguna Lăng Cô Cassia Phuket Banyan Tree (Banyan Tree, Angsana, Cumulative 4.66 5.80 4.09 Vabbinfaru Golf, Admin Offi ce, and % Laguna Services) 13.55 Individual Resort 2016 Highlight Angsana Ihuru Laguna Phuket decrease from 2015 Banyan Tree Ungasan (Banyan Tree, Angsana, Golf, Banyan Tree Laguna Holiday Club, Angsana Mayakoba 1.36 3.50 2.40 Laguna Bintan Villas Resort, LRH Admin (Banyan Tree, Angsana, Offi ce, and Laguna Services and Golf) community) At or better than Best Practice At or better than Industry Average Banyan Tree Banyan Tree Sanya Mayakoba Banyan Tree Bangkok Banyan Tree Samui Scope: Group data includes all hotels listed as EarthCheck Certified (Gold or Silver) and EarthCheck Bronze Benchmarked on page 8, with the Banyan Tree Macau exception of 2016 data for Banyan Tree Ringha, Banyan Tree Macau, and Banyan Tree Seychelles. Masion Souvannaphoum Banyan Tree Cabo Hotel by Angsana Marqués Data Validation: For EarthCheck Bronze Benchmarked sectors, the data has been clarified and validated by EarthCheck; for EarthCheck Certified Angsana Velavaru sectors (Silver or Gold), the data has been clarified and validated by EarthCheck and also verified by third-party auditors. 10 EMBRACING THE ENVIRONMENT Projects by Location

Safeguarding the environment is central to Banyan Tree’s goal of sharing the original beauty of any of our locations with our guests. Numerous site and region specific initiatives seek to support and instil environmental awareness among our associates, our guests, and the local communities supporting our resorts.

Turtle and Stingray Guided Walks Tree Planting Awareness and Tours

Where Where Where Bintan, Phuket, Koh Samui, Bintan, Vabbinfaru, Ihuru, Velavaru, Bintan, Koh Samui, Vabbinfaru, Ihuru, Huangshan, Xi’an, Yangshuo, Phuket, Mayakoba Mayakoba, Cabo Marqués Tengchong, Chongqing, Hangzhou, Objective Objective Fuxian Lake, Luang Prabang, Bangkok Promote oceanic conservation and Promote conservation and allow Objective awareness about turtle and stingray guests to learn more about the local Raise awareness about climate lifecycles. ecosystem in a more active manner. change by planting trees. Results Results Results Over 5,348 guests took part in Over 8,040 guests took part in While the group wide Greening Turtle feeding (Bintan and Maldives) bird watching (Bintan, Koh Samui, Communities initiative was placed and Turtle measuring & cleaning Cabo Marqués), Citizen Science on hiatus for 2016 to review sessions (Maldives) while some snorkelling surveys (Vabbinfaru, monitoring of the program, many 13,714 people took part in Stingray Ihuru), and land based guided hikes, resorts conducted their own tree feedings (Maldives). A further 2,282 walks, evening strolls, and sessions plantings with 3,330 community guests, associates, and community (Bintan, Koh Samui, Mayakoba). members, associates and guests members joined to release over 320 planting 25,391 trees. turtles in Bintan, Maldives, Phuket, and Mexico. All sessions included pre-activity briefings. Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 11

Guided Snorkeling Community Shark and Reef Care Clean Ups Conservation

Where Where Where Vabbinfaru, Ihuru, Velavaru, Bintan, Phuket, Bangkok, Koh Vabinfaru, Ihuru, Velavaru Koh Samui Samui, Luang Prabang, Lăng Cô, Macau, Ringha, Lijiang, Fuxian Lake, Objective Objective Hangzhou, Sanya, Tengchong, Monitor shark populations in Promote oceanic conservation, Chongqing, Yangshuo, Shanghai, Maldives to support healthy especially the importance of coral Xi’an, Vabbinfaru, Ihuru, Velavaru, oceans as sharks are vital to ocean reefs in ocean habitats. Mauritius, Mayakoba, Cabo Marqués ecosystems. Results Objective Results Some 626 people took part in Help clean communities by Banyan Tree Maldives Marine guided snorkelling sessions in removing trash. Lab recorded historical shark Maldives and Koh Samui, with 190 distributions through interviews of guests, associates, and community Results 34 former shark fishers and tracked members transplanting 6,545 pieces Over 51,380kg of trash was picked up current shark distributions through of coral broken off by natural tidal from riverbeds, beaches and other underwater video surveillance and action and which otherwise would locations in host destinations by over guests’ citizen science observations have died. Another 419 guests and 4,670 associates, community members during recreational snorkelling associates took part in reef cleaning and guests. Angsana Tengchong Hot and diving excursions, with guest efforts on Vabbinfaru and Ihuru. Springs Village accounted for over half observations contributing 436 of that total with weekly river clean sightings. ups and twice monthly road clean ups.

Earth Hour Free and Earth Day Resort Conservation Celebrations Gardens Presentations

Where Where Where Bintan, Phuket, Hangzhou, Xi’an, Lăng Cô, Lijiang, Tengchong, Bintan, Vabbinfaru, Ihuru, Velavaru Lijiang, Vabbinfaru, Ihuru, Koh Samui Huangshan Objective Objective Objective Promote conservation and build Raise awareness for climate change Raise awareness about sustainable awareness about the local ecosystem via global celebrations. food sources and local ingredients. of the destination. Results Results Results 551 guests, associates and community Some 425 guests and associates Over 740 guests joined free briefings members took part in activities toured, tended or otherwise took on conservation about Bintan commemorating Earth Hour and part in on-property organic gardens, Indonesia as well as the Indian Earth Day, with Maldives adding often also including follow up Ocean and Maldives. World Biodiversity Day and World culinary demonstrations or classes Environment Day celebrations as well. for guests. 12 EMBRACING THE ENVIRONMENT Banyan Tree Labs and Partnerships

With a dual mission to support fi eld research and increase awareness for ecosystems supporting tourism businesses, Banyan Tree Labs seek to not only unlock deeper knowledge of ecosystems, but to help visiting guests better understand and appreciate the host destination.

Launched in 2003 on Banyan Tree Vabbinfaru to provide visiting “… some of the best looking scientists with basic marine research facilities and support, the and most successful [reef] Banyan Tree Maldives Marine Lab became the first resort based research facility in the Maldives. In 2006, the Lab opened another restoration I’ve ever seen branch on Angsana Velavaru, and in 2007 a sibling facility, the anywhere in the world…” Banyan Tree Bintan Conservation Lab, opened to support both Professor Alasdair Edwards marine and terrestrial research in a coastal hillside forest in Professor of Coral Reef Ecology, Indonesia’s Riau Archipelago. Newcastle University School of Biology

CrownCrown of ThoThornsrns CoralCoral TurtleTurtle StarfishStarfish ((COTS)COTS) NurseriesNurseries ConservationConservation

InIn 22016,016, the BanyanBanyan Tree SinceSince 2001,2001, ththee LabLab SinceSince 2001,2001, 225 turtles MMaldivesaldives MMarinearine Lab hahass plantedplanted 23 coral hhaveave “graduated”“graduated” fromfrom reremovedmoved 1,8001,800 COTSCOTS ggardens,ardens, anandd restorerestoredd BBanyananyan TreeTree’s’s Turtle Head ffromrom ooverver 3232kmkm ooff rereefef some 961m961m2 ofof reef,reef, SStart,tart, aann iincreasencrease on natural wiwwithth 445252 vvolunteerolunteer gguestsuests pplantinglanting somesome ssurvivalurvival ooff 23,823,800%.00%. On anandnd asassociates,sociates, brbringinginging 1515,854,854 ccoralsorals averaaveragege each turtle remainsremains ththee totaltotal to 7,7537,753 COTSCOTS iinn the proprogrammegramme forfor 14.14.44 rerremovedmoveed sincesince 20012001 mmonths,onths, and isis released aatt an averaaveragege ssizeize ooff 34.3cm ((carapacecarapace lenlength)gth) anandd weweightight ooff 5.8 kgkg aaftft erer weweighingighing jjustust 220g0g upon hatchhatchinging Banyan Tree Holdings Limited Sustainability Report 2016 13

CoralCoral Reefs

Among tthehe most proproductiveductive anandd REEFREEEF MMONITORINGONITORING facilitatesfacilitates more raprapidid reereeff rerecovery.covery. biologicallybiologically diversediverse ecosystems, In 2015, BanBanyanyan Tree Maldives MaMarinerine CoralCoral nunurseriesrseries set up bbyy tthehe LaLabb in coral reefsreefs supporsupportt the LabLab initiatedinitiated aann annualannual assessmentassessment 20152015 can now rear nearlynearly 1,000 coralscorals livelihoods ofof 275 million ppeopleeople ofof 10 reereefsfs in North Male Atoll, adding toto supportsupport low costcost reefreef recrecoveryovery by worldwide.worldwide. However, ggloballylobally 8 moremore reefsreefs ffromrom South Nilhande coralcoral trantransplantation.splantation. and increasinglincreasinglyy widespread AtollAtoll in 2012016.6. Two yyearsears in, tthehe survesurveysys and severe natural and human have revealed severesevere coral bleaching REEFREEEF PRPROTECTIONOTECTION impactsimpacts threaten coral reereefs,fs, in 2016, with coral momortalityrtality up to Voracious coral prpredators,edators, Crown ooff makingmaking conservation eeffortsfforts even 87%87% on some reereefs.fs. ThornsThorns StarfishStarfish ((COTS)COTS) and ooutbreaksutbreaks more critical. BanyanBanyan Tree Marine of them are one ofof the mamajorjor thrthreatseats Labs targettarget coral reefreef protection REEFREEF RESTORATION toto reereefsfs in the Indo-PaciIndo-Pacific.fic. RaRapidpid byby ReeReeff Monitoring, ReeReeff Despite the coral bleaching in 2016, reaction to such outbreaks aarere vitvital,al, Restoration,Restoration, and ReeReeff Protection. the Lab’sLab’s coralcoral reereeff restrestorationoration thusthus the importance ofof the LLab’sab’s effortsefforts since 2001 have proven that citizencitizen science eeffortsfforts to monmonitoritor transplanting ffragmentsragments ooff coral COTSCOTS sisightingsghtings while gguestsuests snorsnorkelkel andand dive in the area. TurtleTurtle ConservationConservation

Classified as endanendangeredgered since visits which amountedamounted ttoo 42 ststudentsudents 1986,1986, Green sea turtles use the learninglearning about sea turtles in 2016. Maldives for breedinbreedingg and nestinnesting.g. TUTURTLERTLE HEADHEADSTARTSTART AWARENEAWARENESSSS With onlyonly 1 in 600 hatched Green BanyanBanyan Tree Maldives Marine Lab sea turtles survivinsurvivingg in the wild, created,created, pupublished,blished, anandd ddistributesistributes a increasing survival rates of juvenile Green seseaa tturtleurtle booklbookletet in DDhivehihivehi turtlesturtles bbyy just a smasmallll amount may (Maldivian lanlanguage)guage) sharinsharingg the have a sisignificantgnificant impact on adult life cycle and plight of turtles in populations. Banyan Tree Maldives the Maldives. This complimentary Marine Lab takes a small proportion publication has been disseminated (10%)(10%) of hatchlings to join a Turtle to 26 islands in 26 atolls, and Headstart proprogramgram to increase compliments the Lab’s reregulargular school survival in the vulnerable first year oror twtwoo ooff lifelife..

CollaborationsCollaborations

Since foundinfounding,g, the Maldives Nations DeveDevelopmentlopment ProProgramgram satellite tracking of turtles hatched MarineMarine LLabsabs andand BintanBintan (UNDP);(UNDP); International Union for in Maldives (2001-2004); coral Conservation Lab have enengagedgaged Conservation of Nature (IUCN)(IUCN);; spawning in Maldives with with,with, hostedhosted,, and otheotherwiserwise United Nations EducationalEducational,, Scientific Prof Peter Harrison (2004-2008); supportedsupported ppeerseers across and Cultural OrOrganizationganization (UNESC(UNESCO);O); Dr Graeme Gillespie to describe the traditional industrindustryy boundaries Wildlife Conservation SocietSocietyy (W(WCS);CS); herpetofauna of Bintan (2007); to unlock ssynergies,ynergies, explore fresh 15 Universities from 11 councountries;tries; Prof Daphne Fautin to discover opportunities, and nurture mobilitmobilityy as well as leadileadingng eexpertsxperts in their 9 species of anemone new to ofof infinformationormation aandnd rresources.esources. respectiverespective ffieldsields such as Prof WWolfolf Maldives (2009); and Dr Kyle HibburtzHibburtz aandnd Dr TTomasomas GGoreauoreau Morgan and Dr Paul Kench for PartnersPartners havehave inclincludeduded nnon-on- for electrified reef regenerationregeneration parrotfish’s role in creating coral governmentgovernment organizationsorganizations like United (1996-2001);(1996-2001); Dr Nicholas PilchPilcherer for islands in Maldives (2010-2011). 14 SUSTAINABLE BUSINESS Gallery, Spa, and MATTER

The company’s three retail and wellness segments actively leverage their business conduct to not only provide valued products and services for guests and customers, but also to create value for communities of suppliers while safeguarding the latent value of the global ecosystem. Providing global touch points for guests of Cassia, Angsana, and Banyan Tree branded hotels, Gallery, Spa, and MATTER seek to retain meaningful connections with guests even after they’ve departed the resort, extending the lifestyle values of the Group’s brands into guests’ daily lives and homes.

76 outlets in Community 24 countries Collaborations

One of the largest 56 ongoing with Banyan Tree Gallery retail chains 127 since founding in hospitality The Group’s socially responsible retail arm, Banyan Tree Gallery is based on the concept of “retailing with a difference”, supporting village-based craft with over thirty active communities in Asia through its sourcing strategy for its in-property boutiques. Women Voice for Ethnic Since the first Banyan Tree Gallery opened in Empowerment Crafts and Culture Phuket Thailand in 1996, the retail arm has continually sought to reflect the beauty of the destination’s culture while promoting and Commissioned over Helps conserve the providing incomes for traditional and “vanishing” 100 products from culture and heritage crafts. Gallery also provides design expertise, women communities of destinations while procurement, and logistical services for impacting 29 women sustaining livelihoods and amenities at the Group’s resorts, hotels, and spas while also developing proprietary spa communities across skills of artisans through products for retail and for use in spa operations. 7 countries gainful employment Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 15

Banyan Tree Spa To commemorate the 20th As the first luxury oriental spa in Asia, Banyan Tree anniversary of Banyan Tree Spa combines an exotic blend of ancient health and Gallery, we produced a book titled beauty practices and reintroduces them through “Th e Pride of Craft ”, paying wellness therapies and natural home spa products. homage to the artisan communities who have contributed their work The leading Asian spa operator and pioneer of the over the years. Th e content is now tropical garden spa, Banyan Tree Spa first opened in 1994 in Phuket, Thailand offering time-honoured Asian featured in each of our rooms via healing therapies and beauty remedies through its the resort TV channel, conveying award-winning wellness therapies and spa products. the importance of supporting community craft producers. Unique Sense of Place

A traditional therapeutic and soothing remedy, the Cajuput Oil used in Lăng Cô Vietnam Spa outlets is produced in the Sustainable nearby communes of Loc Th uy and Loc Tien. Artisan Purchasing oil directly from producers more Employment directly connects local businesses to benefi ts of international tourism while also introducing Works with 977 artisans resort guests to the benefi ts of Cajuput Oil. across 7 communities and 5 heritage fabric techniques Nature Based Wellness Made up of over 95% natural and over MATTER 80% fully biodegradable ingredients, each collection of retail spa products embodies Gallery’s in-house brand that over 100 hours of research, development, collaborates with artisans and designers and testing. to reinterpret heritage prints, techniques and styles, producing modern apparel Empowering Employment and textile products that appeal to the next generation of conscious consumers. With the vision of developing its own signature techniques, treatments, and training philosophy, Founded in 2014, MATTER began with Banyan Tree Spa Academy was launched in the intention to make where and why May 2001. Accredited by Th ailand’s Ministry something is made, and by whom, matter. Acquired by Banyan Tree in 2016, MATTER of Education and Ministry of Public Health, retains its threefold mission to foster the Spa Academy has been instrumental in designer-artisan collaborations, inspire Banyan Tree Spa entering the Travel Trade consumers to value provenance and Gazette’s Hall of Fame for winning the award process, and pioneer industry change and for Best Spa Operator annually since 2004. sustainability for rural textile communities. 16 SUSTAINABLE BUSINESS Workplace Diversity

Central to any sustainable business and empowerment effort is how a company treats its own community of internal stakeholders: associates/employees. Empowering associates via a sustainable workplace is the first step to engaging external communities.

From Left to Right: Tanwa “Mrs and Mrs (3rd generation), Nim Banyan Tree” (2nd generation), Bew (3rd generation), Banyan Tree is proud to play a and Prasit role in not only guests enjoying (1st generation). the romance of travel, but also helping serve as a catalyst for associates finding love and romance, becoming couples and starting on the journey of partnership with a significant other. Three Generations In Thailand alone, 49 people enabled by Laguna Phuket found their “other half” while both were under the Twenty-seven years ago, a overall self-reliant. Enjoying being employment of Banyan young man from Pasak town in close to her Dad, Nim cherishes the Tree. Many researchers have Phuket joined Laguna Services memories of her Dad dropping her found that having a spouse, Company (LSC) as a Heavy off and picking her up every day, partner, or romantic interest Machinery Mechanic. Prasit the absolute joy of riding on her at work can increase associate was his name and he Dad’s motorbike to and from school satisfaction and retention while supervised all the truck and in Laguna Phuket. also enhancing motivation, tractor logistics at the Laguna excitement, and even dealing Phuket construction site before Fast forward to today, Nim is with stress. any hotels existed. Over his a mother of two – 10-year old years of work, he witnessed Bew, and a 5-year old Tanwa. firsthand the creation of Bew finished her early formative a tourism hub from an old learning years at LPK and is now abandoned tin mine. enrolled in Thepkrasatri primary school. She often helps her Not only the place where he younger brother Tanwa with his could build his career, Laguna LPK homework. In his third and Phuket was where Prasit felt he final year at LPK, Tanwa is now in could build a family, starting a builder-creator phase, playing a few years after joining the with jigsaw puzzles and building company. Recognising education blocks, with thoughts of becoming as fundamental for prosperity as a heavy machinery mechanic like well as success and happiness, his Grandfather. he enrolled his daughter, Nim, Mr and Mrs Banyan Tree: to study at Laguna Phuket From Prasit to Nim and on to Bew Mr Sakariya Jangwang (Steward, Banyan Tree Phuket) and Kindergarten (LPK). The three year and Tanwa, the three generations of Mrs Arisa Jangwang (Customer Service course at LPK guided Nim to be the family have been empowered Representative, Laguna Golf Phuket), 3 children and 17 years married. free-spirited, yet grounded, and by Laguna Phuket. Building Sustainability 17 EMPOWERING PEOPLE Seedlings Mentorships

Launched in 2007 to nurture young people at risk of societal exclusion, Seedlings Mentorships is a two-phased programme aiming to provide young people with the motivation and means to complete their education in order to transcend the poverty cycle.

Structured topics help guide mentor-mentee interactions to reinforce communal values along four key areas:

1. Mentorship Social Enviromental Academic Health Heritage, culture, Natural Interests & Sports Young people between arts & crafts conservation Language Nutrition the age of 12 and activities training and basic and healthy 18 are mentored by computer skills lifestyle volunteering associates who’ve undergone In 2011 and 2012, a third phase of “Internship” was de-emphasised and removed mentor training. to reinforce the overall message of the power of an education, including a tertiary education. Since then, mentees completing their secondary education have been encouraged to attend university under scholarship from Banyan Tree.

Over

2. Scholarships 87 8 662 Banyan Tree provides young programme work days financial support for people under graduates now in provided for young people who face scholarship and university under associates in challenges in affording to mentorship Banyan Tree 2016 to serve as continue their education. in 2016 scholarships volunteer mentors for young people

1. Selection Seedlings Cafe Young adults at risk of societal exclusion are A social enterprise eatery reviewed for opportunities to enter the F&B industry. aiming to empower young adults via vocational training, 2. Training F&B training is provided Seedlings Café leverages by hotel F&B departments Banyan Tree’s Food & Beverage while Training teams expertise to create a lasting provide basic life skills training. 4. Jobs positive impact upon host Graduates spend 9 months communities by providing 3. F&B Internship working at Seedlings Café at hotel before permanent job vocational training and work Training includes placement at local F&B outlets, experience for young adults internships within hotel including outlets beyond the at risk of societal exclusion. F&B outlets. hotel’s operations. 18 EMPOWERING PEOPLE Education

Education is the key long term enabler for an individual’s societal contribution, career and earning potentials, and overall empowerment. To support education at the primary, secondary, and tertiary levels, Banyan Tree has implemented various site and region specific efforts.

Laguna Phuket and 27 associates volunteering as Results helpers for classes, including reading 20 guests and 16 associates helped Kindergarten to the children during story time. provide clean water for a local Total enrolment since 2001: 3,214 school Vietnam; 14 guests and Established as a Child Care students (with 814 having graduated 6 associates donated benches and Centre in 1992 before formally from the three year programme). stationary to Wenhai Primary in converting to a kindergarten China;14 associates donated school under the guidance of Thailand’s supplies to a hearing impaired Ministry of Education in 2008, school in Hangzhou, China; Laguna Phuket Kindergarten is School 3 guests and 20 associates provided widely acknowledged as one of Donations snacks for 100 students and their the best in Thailand. parents at a special education Engage with local schools to school in Chongqing, China; 73 Where provide support when possible, guests and 70 associates combined Phuket some opportunities allow guests to support a local autism school by to be a part of the support. Objective helping the school move, support a young student facing especially Provide early childhood education Where difficult situation, and celebrate supporting emotional and Lăng Cô, Lijiang, Hangzhou, the year-end holidays together in intellectual habits and skills for Chongqing, Tengchong, Tengchong, China; 13 community independent life-long learning. Cabo Marqués, Bintan members and 10 associates Results Objective combined to prepare and paint Enrolment of 173 children aged Provide needed supplies, infrastructure, a local kindergarten in Acapulco; between ages three and six, with or learning equipment to schools to and Bintan provided training for 7 12 certified teachers, and 11 guests enhance school children’s education. kindergarten teachers. Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 19

Laguna Phuket Community Scholarship Children’s Day Learning Centre

Direct assistance to enable Special recreational sessions to Free English language training young people to continue their observe Children’s Day. centre converted to support wider educations. communal learning. Where Where Koh Samui, Ringha, Lijiang, Where Phuket and Bintan Cabo Marqués Laguna Phuket, established in 2007 and expanded in 2014 Objective Objective Provide educations for promising To benefit and promote the welfare Objective students who face difficulties in of children, especially via education. Provide long term vocational and affording costs of school. life skills training and community Results enrichment for those impacted by the Results Some 62 associates spent 2004 Indian Ocean tsunamis. Bintan provided 4 university Children’s Day in Thailand, China, scholarships for 4 Seedlings and Mexico playing games, sharing Results Mentorships young people while meals, and donating school 8,250 learners have participated the Laguna Phuket Scholarship materials to 453 school children. in programs ranging from English Program provided 16 students language to Chinese culture, and from with scholarships of 89,500 Baht. performance arts to general life skills.

Fully Booked! Summer Camp Children’s Mobile and More Safety Learning Centre

Educational and recreational Train and educate school children A mobile classroom and library activities for school children. in relevant safety matters. bringing learning and books to communities and schools around Where Where Phuket. Lăng Cô and Xi’an Lăng Cô and Mayakoba Where Objective Objective Laguna Phuket since April 2014 Provide fun and educational Help increase water safety for opportunities and activities for children (Vietnam) and help Objective children during school holidays. prevent child abuse and trafficking Re-introduce reading, a basis of self- (Mexico) by raising awareness in the empowerment, to local community Results community. members who may lack adequate 3 associates and the 76 guests access to books. delivered two sessions of the “English Results is Fun” summer camp concept to 6 associates and 14 guests taught Results 210 local children in Vietnam, while first aid and swimming techniques Over 1,100 students and 50 teachers a summer camp play put on for 20 to 29 local children Lăng Cô’s annual in the Phuket and Pang-Nga areas children from the Shaanxi’ Aiding Swimming for Safety in Vietnam, and benefitted from the weekly visits Centre led to Angsana Xi’an Lintong 50 young people attended a “My Body including sessions on Sufficiency helping fund a heater for the center is My Treasure” talk aiming to prevent Economy Learning and English later in the year. child abuse and trafficking the year. language, with 11 guests serving as volunteer assistants. 20 EMPOWERING PEOPLE Community Impact

Enabling long term societal prosperity for communities is central to Banyan Tree’s ability to create value for stakeholders. Our resorts have implemented numerous site and region specific initiatives addressing community empowerment issues identified by host communities.

linens and towels to the Exceptional Feeding In Kind Children’s Association, furniture to Communities Donations local churches and small businesses, Together meals to the Firefighters Academy, Where and refrigerators, sportswear, and Bintan, Koh Samui, Mayakoba sports equipment to local schools Where (Mayakoba). Bintan, Phuket, Bangkok, Koh Samui, Objective Luang Prabang, Lăng Cô, Macau, Support local communities via Ringha, Lijiang, Sanya, Tengchong, donation of goods and materials Blood Chongqing, Xi’an, Huangshan, identified as needed by host Donations Maldives, Seychelles, Mayakoba, destinations. Cabo Marqués Results Where Objective Soap for Hope, Bintan- since starting Phuket, Koh Samui, Lăng Cô, Support and engage with in October 2016, 27 guests and Mayakoba communities by providing meals 10 associates sanitized and pressed as either community celebrations Objective over 7kg of left over guest room Support community health and or to underserved segments of the soaps to create 46 bars of recycled community. blood banks by organizing blood soap that was given to 4 local junior donation drives. Results and senior high schools in Bintan. Over 10,117 meals were provided Results to community members ranging Other in kind donations- 88 guests, 965 associates and community from rural schools to special needs associates, and community members members donated over 756 units schools and seniors. joined forces to collect and donate (about 340,000ml) of blood to local shoes and other clothes to underserved blood banks in Thailand, Vietnam, young people (Koh Samui), as well as and Mexico. Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 21

Seniors Support Volunteers to provide clean drinking water to schools (Lăng Cô), support local Where Where child care centres with Kimchi Lăng Cô, Chongqing, Xi’an, Phuket Mayakoba making excursions and cleaning trips (Seoul), raise over 46,000RMB Objective Objective (just under US$7,000) for a local Support marginalized senior citizens Empower the community by Children’s Welfare Institute (Xi’an), within host communities. supporting those who personally and share meals and activities volunteered in service to their with orphanage visits (Mauritius and Results communities. even Juizhaiguo before it opened). 327 people supported senior citizens in need by monthly visits to seniors Results homes (Lăng Cô), donating meal and Hosted some 200 community winter slippers (Chongqing), gifts members for the Playa del Carmen and home repairs (Xi’an), or sharing Ceremony recognising those Vocational meals (Phuket). volunteers who have given their time Training in service for the larger community. Where Vabbinfaru, Velavaru, Xi’an Health Children Objective Where Provide young adults with vocational Lăng Cô, Koh Samui, Hangzhou, Where training and work experience. Xi’an, Macau, Mayakoba, Cabo Lăng Cô, Seoul, Xi’an, Mauritius, Results Marqués Jiuzhaigou Provided 17 young adults with Objective Objective internships in various departments Enhance health care opportunities Provide support to children of host to give valuable workplace for vulnerable segments of communities as they develop into experience and training, including 1 communities. future leaders. converting to full time employment (Maldives) and some 100 associates Results Results providing undergraduates with Some 5,921 guests, associates, and Over 180 guests, associates, and internship training during university community members supported community members collaborated summer and winter breaks (Xi’an). with efforts including art exhibition for young disabled artists (Lăng Cô); ongoing aluminum collection and monthly donations to the Prosthesis Foundation (Koh Samui); exhibitions of art from deaf-mute children (Hangzhou); fund raising for injured children and school expenses for children of injured community members (Xi’an); promoting good health and hygiene via United Nations International Yoga Day and Global Handwashing Day (Macau); pool parties for children with cancer and donations to homes for children with autism (Mayakoba); and fund raising for the Children’s Rehabilitation Centers (Centro de Infantil Rehabilitacion) as well as for children with disabilities (Cabo Marqués). 22 ADDITIONAL INFORMATION Corporate Governance

In 2001, Banyan Tree set up the Green Imperative Fund (GIF) as a mechanism to provide critical fi nancial support to worthy environmental action and community based projects where Banyan Tree has a presence.

At Banyan Tree branded properties, amounting to 20% of their previous to Banyan Tree, with a maximum guests are invited to support these year’s GIF mechanism collection and of 20% of the expense used for efforts via a small contribution of contribution. This fund can be spent administrative purposes. A small US$2 per room night, under an at the complete discretion of the portion can also be used for “opt-out” arrangement. At Angsana property’s General Manager and research and development as long and Cassia properties, the amount is CSR Champion with the following as the results of such research are US$1 per room per night. Hotels then 3 prohibitions: shared unreservedly and publicly. match these guest contributions, • purchasing turndown gifts for dollar for dollar. To further link guests, Banyan Tree Global Foundation the performance of the resorts • paying service charge to associates, oversees the finances and allocation with support for social and/or • paying wages. of these funds under its Singapore environmental efforts, each property based Board of Directors: seeks to maintain a contribution of Projects eligible for funding are those Chairperson Ms Claire Chiang, at least 1% of its profit. which create value for communities Co-Chairperson Mr Des Pugson, or environmental issues around and Chief Financial Officer Mr Eddy Each year, every resort is allocated the group’s properties whereby See, and managed by Coordinating their Autonomous CSR budget the primary beneficiary is external Director Mr Michael Kwee.

The contributions and disbursements in relation to all the funds tabled on the below are accounted for under Banyan Tree Global Foundation Limited, a company incorporated in 2009 as part of the ongoing effort to formalise Banyan Tree’s sustainability efforts and structure. This entity is audited by Ernst & Young LLP, Singapore.

Cumulative 2001 to 2015 FY 2016 2001 to 2016 US$ US$ US$

Contributions Hotel guests 3,883,386 294,272 4,177,658 Hotel and resorts 4,453,668 395,089 4,848,757 Others including employees 1,323,983 – 1,323,983 Total contributions 9,661,037 689,361 10,350,398

Other income Bank interest 78,638 6,826 85,464

Disbursements Project related 4,519,632 272,823 4,792,455 General and administration 1,339,861 180,701 1,520,562 ** Total disbursements 5,859,493 453,524 6,313,017

Income tax Income tax expense 377 (53) 324 Surplus 3,879,805 242,716 4,122,521

** Total cumulative general and administrative expenses is 14.69% of total cumulative contributions. Banyan Tree Holdings Limited Sustainability Report 2016 Building Sustainability 23

Future Directions

Banyan Tree’s approach to sustainability is built on the internally focused pillar of Increasing Operational Effi ciency, and the two externally focused pillars of Protecting Biodiversity and Developing Local Capacity.

We remain committed to sustainability as a continual journey of improvements and progress towards creating value for multiple groups of stakeholders in order to Embrace the Environment and Empower People.

Internal Focus, External Focus, External Focus, Operations: Environment: Community:

We remain committed to efficient As have we firmly established our We remain committed to developing operations benchmarked against citizen science approach in Maldives, capacity building programs in our industry and certified to relevant we will seek to expand these community learning facilities and leading tourism standards. We will efforts to other resorts to support through vocational training in our continue expanding the number of data capture from optional guest social enterprises. We shall focus vendor-partners taking part in our recreational activities. Since we on children and disadvantaged Sustainable Supply Chain approach expect 2017 to continue providing segments in the community by while also seeking to better measure data for the Maldives Marine Lab’s addressing their basic material upstream impacts of our retail shark census effort, we are cautiously sustenance needs. The end goal is brands, Banyan Tree Gallery and optimistic about achieving a resourcing a host community that its MATTER label. Under our Meet sample size large enough to is better able to navigate future for Good platform, we will refresh share with relevant bodies to help uncertainties and thrive towards a our push for verified sustainable influence research as well as further better future. event venues. With the upcoming conservation efforts. Singapore Exchange guidelines for sustainability reporting, we will also focus on the additional steps to reflect the spirit of the guidance. RESOURCE CONSERVATION CLEANING EarthCheck benchmarking & certification Organise and conduct on energy, water, and waste at least 4 community clean ups a year

SUSTAINABILITY THEMED GUEST ACTIVITIES

Offer at least 5 optional sustainability themed guest activities

GREENING COMMUNITIES

Raise awareness for climate change by planting 2,000 Since our inception, we have sought trees per year to be agents of social and economic development in areas where we have a presence. We strongly believe that our SEEDLINGS actions and inactions significantly impact MENTORSHIPS our progeny, and that good businesses are 3 young people every 2 years also businesses that do good.

SOCIAL ENTERPRISES

Vocational training for young adults

GROWING CAPABILITIES

Support tertiary students by providing skills enrichment and ethics reinforcement opportunities In line with Banyan Tree’s continuing efforts to promote environmental sustainability, this report is a Forest Stewardship Council™ (FSC™) certified print job.

ABOUT THE FOREST STEWARDSHIP COUNCIL: The Forest Stewardship Council (FSC) is an independent, non-governmental, not-for-profit organisation established to promote the responsible management of the world’s forests. For more information, please visit: www.fsc.org.

This is an FSC-certified publication.

BANYAN TREE HOLDINGS LIMITED Reg No.: 200003108H 211 Upper Bukit Timah Road Singapore 588182 Tel : +65 6849 5888 Fax : +65 6462 0186 www.banyantree.com