Corporate Responsibility and Sustainability Report 2015

2015 Performance Highlights The Hongkong and Shanghai Hotels, Limited 10 tonnes 13,000 of partially-used soap bars hours devoted by our and bathroom amenities employees in serving the 42% of waste were donated to benefit community was recycled those in need 92% of the wood used in the renovation of The Peninsula 24% The Peninsula Chicago is Chicago is certified to in lost days due set to be the first hotel in the be from sustainably to work injuries managed forests. Group to have 100% LED The Hongkong and Shanghai Hotels, Limited lighting in the guestrooms. Corporate Responsibility and Sustainability Report 2015 80% 27% Report Responsibility and Sustainability Corporate paper purchases in CO2 emission Our water saving initiatives from certified per floor area* have conserved 9,422 m3 sustainable sources of water, enough to fill over 47,000 bathtubs.** 35,800 GJ of energy and HK$7.8 million of energy spend was 800 9% avoided as a result seafood items on our in absolute carbon www.hshgroup.com of our energy saving menu have undergone a emissions* despite efforts in 2015. sustainability evaluation continued business growth 2015 * Percentage of reduction when compared to the baseline of 2006-2008 average. A Vision for Sustainable Luxury ** Based on China Water Risk (www.chinawaterrisk.org), an average bathtub holds 200 litres of water. 00a_E_HKSH009_CRS_Cov&Gate_AW.indd 2 16年3月24日下午8:58 2015 Performance Highlights The Hongkong and Shanghai Hotels, Limited 10 tonnes 13,000 of partially-used soap bars hours devoted by our and bathroom amenities employees in serving the 42% of waste were donated to benefit community was recycled those in need 92% of the wood used in the renovation of The Peninsula 24% The Peninsula Chicago is Chicago is certified to in lost days due set to be the first hotel in the be from sustainably to work injuries managed forests. Group to have 100% LED The Hongkong and Shanghai Hotels, Limited lighting in the guestrooms. Corporate Responsibility and Sustainability Report 2015 80% 27% Report Responsibility and Sustainability Corporate paper purchases in CO2 emission Our water saving initiatives from certified per floor area* have conserved 9,422 m3 sustainable sources of water, enough to fill over 47,000 bathtubs.** 35,800 GJ of energy and HK$7.8 million of energy spend was 800 9% avoided as a result seafood items on our in absolute carbon www.hshgroup.com of our energy saving menu have undergone a emissions* despite efforts in 2015. sustainability evaluation continued business growth 2015 * Percentage of reduction when compared to the baseline of 2006-2008 average. A Vision for Sustainable Luxury ** Based on China Water Risk (www.chinawaterrisk.org), an average bathtub holds 200 litres of water. 00a_E_HKSH009_CRS_Cov&Gate_AW.indd 2 16年3月24日下午8:58 The Hongkong and Shanghai Hotels, Limited Corporate Responsibility and Sustainability Report 2015 About This Report Sustainable Luxury Vision 2020 HSH aspires to deliver the highest standard of luxury in a sustainable way and continue to grow responsibly and sustainably. This report covers specific environmental and social issues that contribute to the Pillars 2020 Ambitions sustainable development of The Hongkong and Shanghai Hotels, Limited (HSH) and are of Terms • Build a robust succession planning framework for senior leadership • Establish a robust sustainability management system to support interest to our stakeholders. In the report, we share the progress and challenges we faced the management, planning and disclosure requirements on Injury rate Represents the number of injuries per 100 equivalent employees per year. It is calculated • Introduce “Leaders for Good” Training Programme for management The Hongkong and Shanghai Hotels, Limited sustainability issues as well as progress towards 2020 goals Corporate Responsibility and Sustainability Report 2015 in delivering the HSH Sustainable Luxury Vision 2020. based on: • Establish a strong framework to track and manage financial, • Meet international and local sustainability disclosure requirements In line with our commitment to transparency and accountability, we report not only our Total injuries operational and environmental, social and governance risks X 200,000* relevant to HSH achievements, but also areas where we need to improve. We welcome feedback from Total hours worked Governance & • Engage stakeholders on wider sustainability issues through a process that is meaningful and helps to advance the Group’s readers and contact details can be found on page 95 of this report. * The factor 200,000 is the annual hours worked by 100 employees, based on 40 hours per Management sustainability commitments A Vision for Sustainable Luxury week for 50 weeks a year. Lost day rate Represents the number of lost days per 100 equivalent employees per year. It is calculated • Expand our customer base, particularly the 30s-50s age groups, • Engage our customers in preserving our heritage for future based on: and nurture their loyalty through our authentic service culture and generations Total lost days the use of innovative technology • Provide Green Meeting options to corporate clients 1 KPMG was commissioned to conduct assurance of this X 200,000* • Attract family travellers by providing facilities and services that cater Reporting Scope Total hours worked • Continue to create memorable guest experiences through report in accordance with the International Standard on for their needs impeccable service, applying the right technology, leveraging This report focuses on the Company’s businesses in the Assurance Engagements 3000 (ISAE 3000) and ISAE 3410 * The factor 200,000 is the annual hours worked by 100 employees, based on 40 hours per Guest • Attract senior travellers by providing facilities and services that cater on the resources of the cities we operate in, and creating an hotels division and commercial properties division, as well week for 50 weeks a year. for their needs environment that supports our guests’ lifestyle choices, such as Assurance Engagements on Greenhouse Gas Statements, Experience as Thai Country Club, Quail Lodge & Golf Club and Tai healthier and more sustainable lifestyles and to provide an independent limited assurance opinion on OHSAS 18001 Occupational Health & Safety Assessment Series 18001 is an internationally recognised Pan Laundry in the clubs and services division where HSH whether the reported information complies with GRI G4 and occupational health and safety management standard. has operational control. This covers 94%2 of the Group’s the ESG Guide as detailed on pages 84 to 91. The report Ozone-depleting substance (ODS) Any substance with an ozone depletion potential (ODP) greater than 0 that can deplete the • Strengthen executive and leadership development • Minimise occupational health and safety incidents by improving the processes and system to support the management, planning business portfolio. HSH employees working for Peninsula stratospheric ozone layer. Most ozone-depleting substances are controlled under the Montreal • Attract new talent and retain quality employees from KPMG is set out on pages 92 to 93. and disclosure requirements on health and safety Merchandising Limited and Peninsula Clubs & Consultancy Protocol and its amendments, and include CFCs, HCFCs, halons, and methyl bromide. • Implement the competency framework across the Group • Achieve OHSAS 18001 for all operations Services (PCCS) are included in the workforce statistics. CFC-11 is a measure used to compare various substances based on their relative ozone • Introduce “Ambassadors for Good” Training Programme Materiality and depletion potential. • Establish a global talent management system to support talent However, facilities managed by PCCS or Peninsula Employees • Empower operations’ CRS champions through training management, planning and disclosure needs 3 Boutiques operating outside Peninsula hotels are not Defining Report Content Safety management systems Management system designed to manage health and safety, environmental and general risk of • Target zero work fatality or incident resulting in permanent disability included in the environmental data as HSH does not own The report content covers the calendar year 2015. In line a company’s operations these facilities nor has sole control of their policies. There is with G4’s materiality principles, report content is determined Sustainable building Also known as “Green Building”. A building which is environmentally responsible and resource- Using the 2006-08 average as baseline: • Achieve excellent rating in IAQ assessment for all operations no change to this year’s reporting scope when compared to efficient throughout its life-cycle by the most significant and relevant sustainability issues • Achieve 10% absolute carbon emission reduction • Provide self-bottled water for guestrooms and meetings to previous year. identified by the Company’s Group Corporate Responsibility Sustainable Development Sustainable Development is development that meets the needs of the present without • Achieve 30% carbon intensity reduction reduce plastic waste Committee and through a materiality process involving compromising the ability of future generations to meet their own needs. Source: ‘Our Common • Achieve 25% energy intensity reduction • Achieve HACCP certification for all hotel operations • Achieve 25% water intensity reduction both external and internal stakeholders. Details of HSH Future’, 1987, World Commission on Environment and Development. • Operations located

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