Modern Slavery Statement 2020
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MARRIOTT INTERNATIONAL MODERN SLAVERY STATEMENT .,\\arr1ott INTERNATIONAL Associates at the Kochi Marriott Hotel raise their hands to help Marriott fight human trafficking. INTRODUCTION Founded by J. Willard and Alice S. Marriott and guided Even as the travel industry was impacted in extraordinary prevent child sexual exploitation and integrate child by family leadership since 1927, our founding principles ways by the COVID-19 pandemic, Marriott found protection practices into all aspects of our business; remain embedded in the Company’s culture and in opportunities to affirm our commitment to human rights • Initiated development of an updated version of everything we do today. As we change, grow, and and advance our anti-trafficking efforts. For example, our human trafficking awareness training to provide confront unprecedented challenges, the beliefs that are we quickly realized that limitations on guest interaction additional context around the potential indicators of most important to us stay the same – putting people made it harder to recognize potential indicators of human human trafficking; and first, pursuing excellence, embracing change, acting trafficking, and we sought creative solutions to adapt with integrity, and serving our world. While all the values to these new norms. We began updating our training • Encouraged loyalty members to donate points to resonate with us, serving our world is a particularly to reflect this higher-tech and lower-touch operating advance human rights and combat human trafficking, powerful representation of who we are and how we do environment, and we amplified our efforts within the which resulted in more than 120 million points donated business. Simply defined, serving our world represents industry to help other hotels access resources to in support of our nonprofit partners and programs. the efforts we undertake to support the communities combat human trafficking. Marriott’s key global actions where we live and work. This service takes many forms; implemented in 2020 include: Marriott International is publishing these highlights in sometimes it is obvious, like organizing a beach cleanup accordance with our human rights and social impact or a blood drive, and sometimes it occurs behind the • Developed an easy-to-activate framework for hotels goals and in compliance with the United Kingdom scenes as we take care of the most vulnerable members in the vicinity of major events, like the Super Bowl Modern Slavery Act 2015. It details the steps taken of society. and World Cup, that reinforces the human trafficking by Marriott Hotels Limited, Marriott European Hotel awareness training and provides guests with access Operating Company Limited, Marriott Hotels International Marriott became one of the first hospitality companies to information on potential indicators; Limited, Sheraton Hotels (England) Limited, Sheraton to address human trafficking, recognizing that hotels • Donated our human trafficking awareness training Hotels (U.K.) Limited, GH Hotel Operating Company can be unwilling venues for this horrific crime. In 2016, to ECPAT-USA, making it available for free to all Limited, Elegant Hotels Group Limited, and their ultimate we introduced a human trafficking training program that members of the hospitality industry and resulting parent company, Marriott International, Inc., to aid in the educates and empowers associates to report suspicious in nearly 400,000 employees at other hotels prevention of human trafficking during the fiscal year situations. The training has helped identify instances of becoming trained on how to recognize and respond ending 31 December 2020. For the purposes of this human trafficking, protect associates and guests, and to human trafficking; statement, the companies carrying on business within the support victims and survivors. At year-end 2020, nearly United Kingdom, including the entities mentioned above, • Recognized as a Top Member of The Code (The Code 825,000 associates had completed the training, creating are collectively referred to as “Marriott,” “we,” “us,” or the of Conduct for the Protection of Children from Sexual a global workforce that stands ready to recognize and “Company.” respond to human trafficking and live up to our core Exploitation in Travel and Tourism) for our work to company values. Associates at the Budapest Marriott Hotel learn about human trafficking in recognition of World Day Against Trafficking in Persons. MARRIOTT INTERNATIONAL MODERN SLAVERY STATEMENT 2 ORGANIZATIONAL STRUCTURE, BUSINESS, AND SUPPLY CHAINS Business Model For more information on our pandemic response efforts, see our Serve 360 Report. Marriott International is a leading global hospitality company with a portfolio of 30 brands comprising more than 7,600 properties in 133 countries and territories, Supply Chain supported by more than 560,000 associates at managed and franchised hotels. Marriott is committed to responsible business practices and operations, including engaging with vendors and suppliers that are dedicated to similar principles and With a focus on management, franchising, and licensing, Marriott owns very few of holding their own suppliers and subcontractors to the same standards. We strive to our lodging properties. Under various agreements, we use our systems, services, and work with companies that share our values and maintain a supply chain of businesses marks in connection with the operation of hotels globally. Most properties are managed, that respect human rights and follow all applicable laws as well as the spirit and intent franchised, and licensed. of our principles. • Managed – At managed properties, Marriott is responsible for: hiring, training, Marriott maintains a large global supply chain comprised of numerous procurement and supervising the associates needed to operate the facilities; purchasing categories including: furniture, fixtures, and equipment (FF&E); operating supplies and supplies; providing centralized reservation services and advertising, marketing, equipment (OS&E); food and beverage (F&B); hotel amenities; and corporate services. and promotional services; and supplying accounting and data processing services. Marriott uses a hybrid procurement structure to make goods and services available While the terms of management agreements vary, owners are generally required at the best combination of price, quality, and service and work with diverse and local to reimburse Marriott for operations costs and pay a management fee based on vendors when possible. Some procurement occurs at the local hotel level, where hotels, revenues and profits. At year-end 2020, Marriott had 2,149 managed properties with whether franchised or managed, are responsible for their own independent supply 585,132 rooms. chains. Other procurement is managed by Marriott’s central procurement groups. • Franchised and Licensed – Marriott has franchising and licensing arrangements Marriott’s central procurement structure include distinct groups that focus on operations, that permit hotel owners and operators to use many of our lodging brand names global design, information technology, and human resources. The groups proactively and systems and help them succeed in their business. Marriott generally receives collaborate with suppliers in three channels of our supply chain – FF&E, OS&E, and F&B an initial application fee and continuing royalty fees for the right to use our lodging – as part of our overall sustainability and human rights strategy. These contracts are brand names and systems, and owners make independent decisions regarding reviewed on average every three years, and expectations, including those around human their hotel operations, including employment, procurement, and other systems and rights, are reinforced during the review process. services. At year-end 2020, Marriott had 5,493 franchised and licensed properties with 837,912 rooms. Marriott’s Global Procurement Supplier Conduct Guidelines, intended to promote the For a more detailed description of our business, see our Annual Report. highest standards for human rights throughout our supply chain, are attached to all newly negotiated contracts administered by the central procurement groups. For more The COVID-19 pandemic has had an unprecedented impact on the travel industry and information on our Supplier Guidelines, see page 4. In 2020, we attached the Supplier our Company. As the virus and efforts to contain it spread around the world, we saw Guidelines to 91 new contracts negotiated by Marriott’s central procurement groups. sudden, sharp declines in hotel occupancy, and we made significant changes to our business to mitigate the negative financial and operational impacts. As a result, many As part of the Company’s efforts to promote responsible sourcing, all associates with of our previously planned human rights and anti-trafficking initiatives were slowed, procurement purchasing responsibilities are required to complete a procurement training, reshaped, or postponed. However, we also saw an increased demand for community- which includes information on Marriott’s human rights and anti-trafficking policies. At year- supporting services amid the global crisis and introduced many new programs to help end 2020, more than 5,000 associates worldwide had completed the procurement training. meet local needs. For more information on our progress towards our responsible sourcing goals, see page 9. MARRIOTT INTERNATIONAL MODERN SLAVERY STATEMENT 3 POLICIES At Marriott, we know that how we