Inspire. Innovate.
Rotana Corporate Sustainability Report 2017
rotana.com Rotana Corporate Sustainability Report 2017
2 Table of Contents
ABOUT THIS REPORT 4 MESSAGE FROM OUR ACTING CEO 6 OUR COMPANY 8 Profile Growth and Expansion Vision and Values Memberships and Awards RISK, GOVERNANCE and COMPLIANCE MANAGEMENT 16 Board Operation Business Integrity Risk, Governance and Compliance SUSTAINBILITY STRATEGY 26 Vision and Goal Approach Stakeholders Engagement Materiality Assessment GUESTS EXPERIENCE 34 Satisfaction Innovation and Technology Education and Inspiration Health, Safety and Security COLLEAGUES 44 Engagement Diversity and Equal Opportunities Development and Growth Wellbeing, Health and Safety ENVIRONMENT 58 Energy Water Waste COMMUNITIES 66 Community Outreach Nationalisation SUPPLY CHAIN 78 Responsible Supply Chain Local Supply APPENDIX A: GRI STANDARD CONTENT INDEX 84
3 Rotana Corporate Sustainability Report 2017
About This Report
4 otana Hotel Management Corporation PJSC is pleased to present its third Sustainability Report which features quantitative data for the 2016 and 2017 calendar years as well as additional data from previous years where this data provides useful comparisons, related information on material issues Ror notable information. Our sustainability reports are issued every 2 years.
Reporting scope The reporting scope is global, unless otherwise noted for situations or circumstances where reporting data are collected and available only for a certain geography, business or issue. The report covers all Rotana hotels, four brands in the Middle East, Africa and Turkey excluding the Residences by Rotana brand. This includes 56 hotels which were in operation on 31st December 2017 and their material economic, environmental and social impacts. For new hotels that were opened in 2017, or hotels that discontinued operations during the year (4 hotels in Dubai, United Arab Emirates) data is only reported for the months they were in operation.
Reporting standards While our Corporate Sustainability Report has not been independently reviewed by auditors or any other third party, we declare that this report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. The GRI Standard disclosures table can be found at the end of the report, in Appendix A.
Defining report content Our reporting goal is to provide a detailed and balanced account of our sustainability performance, with a focus on the most significant issues (“material topics”) based on input from external and internal stakeholders. These topics have been determined through a materiality assessment (the results of which are discussed on pages 31 and 32) and shape the content of this report. In 2016, we conducted a comprehensive update of the company’s list of material issues and have aligned it with the UN sustainable development goals, SDGs, to ensure that future reporting continues to best capture the nature and impact of our businesses, as well as fully support global issues goals. The process was guided by the group’s Corporate Sustainability Committee. Performance data is accompanied by a brief description of our policies and management systems, as well as our activities and their impact on today’s business. This report serves multiple communication functions. It enhances our internal efforts towards transparency and disclosure and supports communication with many of our external stakeholders seeking to understand the way in which Rotana addresses environmental, social, economic and governance matters. The report also serves as our internal tool for communicating our annual progress. While the report development was overseen by the company’s Corporate Sustainability Committee and with the Abu Dhabi Sustainability Group Advisory, this third report was not subject to an external assurance audit.
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Message From Acting CEO
t Rotana, we are going through a phase of exciting growth and development. Today, we are one of the largest hospitality groups in the region with a portfolio of 66 hotels across the Middle East, Africa and Turkey. AWhile our ongoing expansion is a strong motivation for us at all levels, we do understand there is a long road ahead of us, with many challenges along the way that we need to overcome in our journey towards fully reaching our goals, and setting new ones. Our strategy for achieving the sustainability commitment and goals is detailed in the “Sustainability Strategy“ of this report.
The hospitality business like every other business must continuously think one step ahead of environmental, geopolitical, social and technological disruptions to achieve sustainable growth. These include the energy price shock, rise in electricity and water tariffs, unpredictable and extreme weather events. Among geopolitical trends, we have weathered global political change, wars and terrorism. Even technology keeps throwing challenges our way through data fraud and cyber-attacks.
Disruption is a key enabler of growth that drives us to rise above every challenge. At Rotana, we leverage the power of disruption to constantly renew our commitment to our stakeholders as well as the communities in which we operate: from inculcating a more environmentally-friendly approach that involves our guests, colleagues, and to an extent, even our suppliers, to consistently standing by our high standards of professionalism and excellence in both new and existing markets. Challenges come and go, but at Rotana, we have remained firmly dedicated to achieving our business goals without losing sight of our key responsibilities, to ensure the health and prosperity of the communities in which we do business.
Another key reason why sustainability has taken centre stage in Rotana’s day to day operations is the impact of macroeconomics and political trends, especially in light of a challenging global environment, which in the recent times, has witnessed slow and sluggish growth. Geo- political risks, previously confined to few countries is now more widespread resulting in hotel chains exploring newer markets and thereby intensifying competition. Given the current rhythm of change, sustainability has never been more vital to us.
This is why, for this year, our report theme is “Inspire and Innovate“. It’s a theme that encourages us to innovate and that’s why we have launched a new award “Business Innovation award“. Inspiring all our stakeholders remains a key factor to achieving sustainable business.
As we reiterate in this report, sound sustainability goals and their execution will remain our top priorities.
Guy Hutchinson Acting Chief Executive Officer
6 Message From Head of Sustainability
he United Nations has proclaimed 2017 the ‘International Year of Sustainable Tourism for Development’. Under the aegis of the United Nations World Tourism Organisation (UNWTO) the declared aim is to strengthen awareness of tourism activities that contribute to sustainable Tdevelopment. Sustainability is one such priority that we uniformly embrace at Rotana across all of our teams and offices. And it is with great pride, I share with you our 3rd Corporate Sustainability Report, which will take you through the various initiatives Rotana has undertaken to advance environmental sustainability, in accordance with the UN Sustainable Development Goals.
Our aim is to facilitate a balanced development of economies, societies and environments through more meaningful business engagement and value creation, with a sharp focus on our communities’ health and wellbeing.
The report provides key insights into Rotana’s key achievements, targets and even some shortfalls. With workplace diversity and equal opportunities being among our most integral values, Rotana proudly employs 11,163 colleagues from 106 nationalities of which 17.8% are females. Our contribution to the community in the last year increased by 4% though employee-volunteering activities, fund raising and cash contributions.
Among other achievements, 80% of hotels in the portfolio are HACCP-certified with a total of 44 hotels accessed for health and safety risks. Further, feedback from our guests has been positive too, achieving a 66.4% on our guest satisfaction survey. As part of our responsibility towards the environment, we are proud to have reduced our energy and water consumption by 7.74% and 21.25% per guest respectively over the reporting period, while in 2016 and 2017, we converted 190, 000 litres of our kitchen used frying oil to biodiesel.
Similarly, in the areas of ‘Governance and Compliance’, Rotana achieved 100% success in the training of all our colleagues to ensure they adhere to our codes of ethics, integrity and anti-corruption.
We remain firmly committed to making sure our fundamental values never change. We understand that only a strong sense of commitment, passion and hard work will allow us to turn challenges into opportunities as part of our efforts to achieve our sustainability goals well into the future. In fact, there are certain targets we have already set for ourselves to achieve by 2020. They range from our vision to operate 100 hotels, right down to meeting environmental goals such as reducing energy consumption by 10% (kwh/guest) and water consumption by 25% (litre/guest) from 2012 baselines.
We will continue to see the future through the lens of sustainability, as we reiterate our role as a change-maker enabling a real difference in the lives of our partners, colleagues and guests.
Christiane A. Zeidan Corporate Director of Environment, Health and Safety Head of Sustainability
For more information about this report, please contact Christiane Zeidan on [email protected]
7 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Profile
Growth and Expansion
Vision and Values
Memberships and Awards
Our Company
8 Profile
Rotana Hotel Management Corporation, a private joint stock company whose head office is based in Abu Dhabi, UAE is today one of the leading hotel management companies in the Middle East, Africa and Turkey. Rotana’s unique brand of hospitality is defined by the blend of warm Arabian culture and strict international standards and expertise. Currently the group operates 67 hotels and another 46 properties are planned to open by 2020. With these new projects in the pipeline, Rotana will be present in 22 countries reaffirming the company’s goal to have a Rotana managed property in all the major cities throughout the Middle East, Africa, Eastern Europe and Turkey.
2017: 56 Operating Hotels and Brands
23 8 7,110 Keys 2,213 Keys
17 2 3,183 Keys 450 Keys
6 2,060 Keys
Under Operation Brands Operating properties 56 Total number of rooms 15,016 Number of cities 22 Number of countries 13 Rotana Rewards Members Total number of members 266,452 rotana.com 12 months rolling 22 Million Number of rotana.com visitors 6 Million Number of webpage views 17 Million Human Resources Number of nationalities 104 Number of colleagues 11,163 Number of Duroob programme colleagues 462 Food & Beverage Operations Number of outlets 236 Number of meeting rooms 334
3.89 6.34 11.2 Million room Million guest Million food covers nights sold nights
9 Rotana Corporate Sustainability Report 2017
Our five main brands: Rotana Hotels and Resorts, Centro Hotels by Rotana, Rayhaan Hotels and Resorts by Rotana, Arjaan Hotel Apartments by Rotana, and The Residences by Rotana, each offer the same impeccable and excellent quality of service. Rotana provides services for different targeted tourism sectors customers and stakeholders, whether they are leisure, business travellers, international exhibitors and conferences, events, festival participants or our local community. Rotana provides hotel accommodation, leisure, conference, training venues, food and beverage, entertainment, leisure, cultural, health, spa and sport products and services. To access our hotels and resorts directory visit rotana.com
Financial Financial Highlights Highlights FY 2016 (US$ million) FY 2017 (US$ million)
Revenue Revenue 792 730
Employee Wages Employee Wages and Benefits and Benefits 222 202
Payments Payments to Suppliers to Suppliers 237 283
Payments to Payments to Governments Governments /Taxes /Taxes 47.52 66.3
Economic Economic Value Retained Value Retained 192.4 178
10 Growth and Expansion
Since its inception, Rotana has grown to become the largest In total... 104 hotels 27,167 keys hospitality management group in the region, a brand not only widely recognised but very much admired. Rotana’s impressive growth within the region has been supported 34 22 by a team of dedicated professionals who have exceptional 10,972 Keys 5,095 Keys international experience and a fundamental understanding of the cultures and communities of the Middle East, Africa and Turkey. The expansion in the number of properties under 17 3 Rotana management is driven by our philosophy and consistent 5,054 Keys 873 Keys approach in ‘getting it right’ the first time, every time! Indeed, the company’s vision and strategy is to settle for nothing less than to have a property located in every country within our 27 wider region. 4,883 Keys Our plan for growth has set sail with Rotana now managing an ambitious expansion that will see our portfolio of operational properties increase to 104 by 2022. During the expansion of our hotels within other geographic Growth and Expansion* locations, there have not been any significant changes to the organisation’s structure, ownership, capital share structure, or supply chain with the exception of the additional properties we have opened in various countries. 48 12,162 Rotana was ranked 3rd in the UAE 2016 Ranking of Properties under Total number of YouGov›s BrandIndex, 3 levels higher than our ranking development additional rooms in 2015. YouGov’s BrandIndex is a daily measure of brand perception among the public, tracking many brands across multiple sectors simultaneously and across the world by interviewing over 2.5 million customers a year to track brand perception nationally and internationally. 14 26 Number Number of countries of cities
Our management team growth Rotana Annual Conference, 2016
15 33 In UAE International 29% 71%
*Figures are based on the 2017 expansion plan In 2016 and 2017, 4 Rotana hotels were deflagged in Dubai, the United Arab Emirates consequent to a mutual agreement between the owners of the 4 hotels and the company. The hotels are: Al Bustan Rotana, Al Murooj Rotana, Al Ghurair Rayhaan and Arjaan by Rotana.
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MOROCCO EGYPT LEBANON BOSNIA TURKEY SYRIA IRAQ JORDAN IRAN KINGDOM OF BAHRAIN 2 2 2 1 4 1 5 3 4 PROPERTIES PROPERTIES PROPERTIES PROPERTY PROPERTIES PROPERTY PROPERTIES PROPERTIES PROPERTIES under development in operation and in operation under development in operation under development in operation and in operation and under development 3 PROPERTIES under development under development under development in operation
UNITED ARAB INDIA EMIRATES
48 PROPERTY1 PROPERTIES under development NIGERIA in operation and under development OMAN 1 KENYA PROPERTY under development QATAR 12 PROPERTIES 2 in operation and PROPERTIES under development under development KINGDOM OF 6 SAUDI ARABIA PROPERTIES DR CONGO in operation and under development
SUDAN 10 PROPERTIES 1 in operation and PROPERTY in operation 1 under development PROPERTY ANGOLA in operation 1 ZAMBIA TANZANIA PROPERTY under development 1 1 PROPERTY PROPERTY under development under developmenta 2022 GLOBAL EXPANSION
12 Vision and Values
Our Vision To be the leading hospitality management company recognised for its unique blend of world-class standards and genuine hospitality and for the truly treasured experiences provided to our guests, colleagues and owners. In today’s busy world, with its many pressures, time is our most precious commodity. How and with whom we choose to spend it is perhaps one of the most important decisions we make in our lives. At Rotana, we have chosen to embrace this philosophy by challenging ourselves to ensure that all time spent with us is “Treasured Time”. We pledge to understand and meet the individual needs of all who we deal with. In doing so, we strive to continually build long-term relationships with our stakeholders including our owners, our colleagues and, of course, our guests. Treasured Time is Rotana today.
for a lifetime. It is a friendship based upon loyalty, one which Our Values: Rotana LIFE will continue to surprise; a relationship with integrity. In order If one were to look back through Rotana’s history in order to to ensure our brand is delivered with consistency and integrity distill (or understand) the essence (or reasons for) of Rotana’s we have identified a set of values that clearly represent our success, one will find it is based upon enduring partnerships. character. Our team strives to live these values every day. We At the core of these relationships lie genuine friendships which call this, “The Rotana Life”. The word, LIFE provides us with the have been built solidly over time. acronym with which to remember our values. Each of the four letters in the word, LIFE, are triggers or short cuts to a value that It is these bonds that best describe who Rotana is. All those who together make up The Rotana Life. know Rotana, know that they have a friendship that will last
We are committed to creating and nurturing lifelong relationships with our owners and partners, colleagues and guests. We are focussed on delivering moments that will be remembered for years to come.
We acknowledge that each one of our owners and partners, colleagues and guests is different. We respond accordingly by striving to create new ways to meet their individual needs.
We share a passion to serve and provide an experience that is genuine and above all friendly. We always have time for our owners and partners, colleagues and guests, as we would do for a friend.
We always treat our owners and partners, colleagues and guests with the utmost respect. We act with integrity everyday, in each moment, in every way.
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Membership and Awards
Recognition of the Rotana’s efforts to be more sustainable provides moral reward and satisfaction that drives us to continue to realise our long-term sustainability programmes and initiatives. In 2016, Rotana received the following awards in recognition of its achievements:
Our membership at the Abu Dhabi Sustainability Group continues to be effective for the 6th year cycle in aiding Rotana to progress on its sustainability programme by acquiring more knowledge to successfully implement the sustainability management programme. We believe that in sustainable development, businesses, Sustainability Manager of Year - public authorities and social society shall work in 2016 was awarded by Abu Dhabi partnership in order to reconcile the three fundamental Sustainability to Rotana Corporate EHS constituents of development: economy, ecology and Director: Annual Sustainable Business social equity. Leadership Awards.
“World’s Leading Business Hotel Brand” at the “World Travel Awards
14 Rotana received 22 awards in 2017 and 15 awards in 2016 at the World Travel Awards.
Rotana’s Training Centre has received the “International Training Centre of Excellence” award plaque from Highfield UK Chairman in recognition of the group’s efforts towards health and safety continuous training.
15 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Board Operation
Business Integrity
Risk Governance and Compliance
Risk, Governance and Compliance Management
16 Board Operation
Rotana’s legacy is founded on our longstanding commitment to being a responsible and sustainable business with a culture of integrity, transparency and accountability embedded in every aspect of our company. This is why it is crucial that our governance process is robust and provides the basis for sustainable growth. We aim, at all times, to meet or exceed compliance across environmental, social, or governance aspects that relate to our operations and activities. Through our governance approach, we seek to strengthen confidence in our brand and maintain the trust of our stakeholders and shareholders, balancing their interests and understanding their concerns through regular engagement. Our governance framework and principles are built on strong foundations of transparency, disclosure, fairness, monitoring and review with a focus on dialogue between management, colleagues, suppliers, guests and society at large.
ORGANISATIONAL STRUCTURE Across the MENA region, Rotana’s increased focus on corporate governance provides our Board with an opportunity to step up their game in progressing Rotana as powerful example of strong corporate governance, compliance and integrity. The Board sets the tone from the top and is responsible for the overall conduct of our business. We combine both a top-down and bottom-up approach to ensure maximum engagement in operations and the greatest impact for the group as a whole. We operate according to a decentralised organisational structure, with General Managers in each hotel and Area Vice Presidents in different regions. The General Manager of each hotel reports directly to the relevant Area Vice President and the company Chief Operating Officer (COO). The authority for managing sustainability responsibilities is delegated from the top to the middle management and operational colleagues through the following positions and reporting structure: The COO of Rotana chairs the Corporate Sustainability Committee, which includes the most senior members of all departments at Rotana. The COO is responsible for reporting directly to the CEO, Chairman and Board on Rotana’s sustainability strategy and performance. Rotana also has a Corporate Director for EHS in charge of Sustainability, who is supported by an Environment, Health and Safety (EHS)/ Sustainability Manager or Officer in every hotel, and is tasked with the responsibility to incorporate sustainability management into relevant Rotana hotels. The Corporate Director for EHS reports directly to the COO on all sustainability related matters. The hotel EHS/Sustainability Managers report directly to the hotel General Manager and indirectly to the Corporate Director of EHS. An Environment, Health and Safety/Sustainability Committee is established in each Rotana hotel. Senior Managers from all departments are represented on the EHS/Sustainability Committee. Other sub-committees, such as Earth champions and Colleague Welfare Committees ensure that broader participation is facilitated between middle management and operational colleagues.
17 Rotana Corporate Sustainability Report 2017
Organisational Structure
Shareholders
Board of Directors Board and its Committee Board
Audit Committee
President & Internal Chief Operating Auditors Officer
Chief Chief Operating Officer Financial Officer Executive Team and its Committee Team Executive
Sustainability Committee Ethics Committee
Corporate Area Vice Corporate Director of EHS Presidents Vice Presidents /Sustainability Corporate Departments Corporate
Hotels General Managers
Hotels EHS Hotels EHS/Sustainability Manager/Officer Department Heads
Hotels Operation Hotels Committee
CORPORATE GOVERNANCE General Assembly: The general assembly is the highest ranking Good corporate governance establishes and maintains a legal governance BOD in Rotana. It elects the members of the board and ethical environment, which in turn promotes and preserves of directors. Initially, the Rotana founders have appointed the the interests of all our stakeholders. Rotana complies with the first board of directors for a period of three years. The assembly legal requirements as defined by the UAE Federal Commercial is responsible for making decisions on important corporate Companies Law No. (2) of 2015) and other legal institutions issues. regarding corporate governance. We are also subject to the Board of Directors (BOD): The board provides close oversight Ministerial Resolution No. 518 of 2009 concerning Governance and direction of investment, financial risks, governance, Rules and Corporate Discipline Standards. remuneration, government relations, health and safety, environmental and social considerations and matters. The
18 directors constructively challenge and help develop proposals on environmental and social sustainability aspects. Related strategy and policies, and review the performance of Rotana’s resolutions are made accordingly. Invitees joining the Board management in meeting agreed goals and objectives, as well as meeting include: the Chief Executive Officer, the Chief monitoring performance reports. Financial Officer, the Corporate Director of Internal Audit and the Director of Legal Affairs acting as board secretary. Our Board of Directors (BOD) comprises 5 members: - The Chief Executive Officer is responsible for the • One executive member company’s operational management. • Four non–executive members including the Chairman - In terms of performance with respect to governance, • 2 of the directors including the Chairman are UAE nationals. the Board carries out self-assessments or assessments through the General Assembly. Financial evaluation is • All our board members are non-independent carried out annually by independent third-party financial - Members are elected by the General Assembly every auditors. Currently, there are no specific criteria related to three years by cumulative voting. Each BOD member sustainability included in the CEO and board’s performance can be reappointed. Currently, there are no diversity or evaluation. independency factors considered for their nomination other - Wages and other compensations of BOD members are than competence and qualification in pursuance of UAE defined according to the General Shareholders Assembly law. decisions. - The members possess experience in a range of fields varying - The BODs do not have competing business with the from finance, economics, business administration, and hotel company and do not benefit from any dealings with the management to investment, real estate and engineering. The company. Conflicts of interest, including minimum cross- skill and knowledge of the board members has proved to be board membership, cross-shareholding with suppliers and of immense value to the achievement of Rotana’s corporate contractors are disclosed to the board. Failure to comply objectives and performance. with the conflict of interest requirements can lead to legal - The BOD members meet regularly and at least once action against the non-complying BOD. every quarter to discuss the company’s performance For more information about our BOD: reports covering Rotana’s various areas of financial and rotana.com/aboutrotana/boardofdirectors
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COMMITTEES Whenever needed, the Committees are empowered to retain the Four Corporate Committees provide oversight of Rotana’s consulting resources and expertise deemed necessary to perform operation and sustainability. These Committees are executive, their responsibilities such as retention policy and programme, ethics, sustainability and audit. restructuring of the organisation, compensation alignment and others. Specialised consultants are carefully selected to ensure All committees act in accordance with a formal charter approved we receive proper and independent expert advice. by the Board of Directors.
1: Executive Committee 2: Ethics Committee The Executive Committee comprises three directors The Corporate Ethics Committee’s comprises the Chief appointed by the board and exercises all the powers of Operating Officer, Chief Financial Officer and Corporate the Board of Directors (BOD) in the management of the Vice President – Human Resources. business and affairs of the company. It looks after the rights and interests of Department It acts as the remuneration and compensation committee Heads and colleagues reporting directly to the General and directly involves the BOD’s members. The executive Managers of properties concerned and the company ethics committee engage directly with different stakeholders framework in general. including owners, guests, colleagues and regulatory bodies. The hotel Ethics Committee’s comprises the General The members meet frequently and as required in order Manager, Head of Finance and Head of Human Resources. to ensure the response and implementation of matters Members are elected as ‘contra part’ based on 1 – 3 (male/ delegated to the committee by the BOD in accordance female ratio, nationality mix, etc.) with the company’s authority matrix. It looks into complaints on unethical practices, primarily 3: Corporate Sustainability Committee dedicated to the rights and interest of all our colleagues. The Corporate Sustainability Committee comprises 8 Corporate Vice Presidents, the Corporate EHS Director and 4: Audit Committee the Chief Operating Officer. The Audit Committee assists the BOD in fulfilling its corporate governance and oversees responsibilities in It oversees the sustainability programmes, including: relation to the company’s financial reporting, internal • Providing key decisions on sustainable initiatives/ control system, risk management system and internal and programmes external audit functions. • Circulating information, programmes and policies to all It also provides advice and recommendations to the Board hotels within the scope of its terms of charter. It is responsible for • Ensuring a high level of supervision of the hotels’ oversight of the financial reporting process, selection of relevant department’s sustainability direction and the independent auditor, and receipt of audit results both performance and taking action to address them internal and external. • Evaluating the progress made and the challenges faced The Audit Committee meets twice a year and receives during implementation regular updates from the internal and external third part • Reviewing and approving sustainability goals, policies auditors. and procedures Critical concerns are communicated by the Corporate Vice • Setting methodologies for consulting with stakeholders President to the Executive Committee which then takes it on economic, environmental and social issues through to the BOD. surveys, questionnaire, meetings, roundtables and workshops The members meet every 6 months.
20 AUDIT AND CONTROL • Evaluating the control objectives of the main processes Financial Audits: two accounting principles, transparency and • Evaluating the risks surrounding each process control, inform everything we do and ensure an up-to-the- • Evaluating the existing controls in each process minute understanding of where our hotels stand financially – as • Identifying the main gaps and deficiencies in the control well as a clear understanding of how improved cost efficiencies system will affect our future performance. • Recommending and proposing solutions, controls and systems to address the gaps and manage risks Rotana’s systems provide feedback to property owners on every aspect of their property, be it occupancy trends, colleague Audit findings for each category criteria are assessed as low, productivity or cost efficiency. medium and high risk, hence enabling our hotels to priorities and act on the recommendations to strengthen the business and Financial planning is underpinned by practical policies, state-of- support processes. A review of the status of implementation of the-art information systems and a two-tier independent audit recommendations made is carried out annually and incorporated process that ensures management and operational performance in the report presented to management. is continuously reviewed and evaluated. Our operations manuals and authorisation systems are geared Grant Thornton performs an annual audit of the core business towards maintaining control over every operating cost. for all Rotana hotels and supports processes to highlight gaps in internal controls and also reviews the business and supports Combined, these tools give owners and managers the means processes to identify improvement opportunities. A risk-based to maximise revenue growth, ensure profitability, and deliver approach is taken by: strictly controlled expenditure.
Business Integrity
RESPONSIBLE BUSINESS CODE OF BUSINESS CONDUCT AND ETHICS To earn and retain the trust of our owners, guests and other We lay out our commitment to high ethical standards in our stakeholders, we manage our operations responsibly and ‘Code of Business Conduct and Ethics’ (CBCE). conduct our business in an ethical and transparent way, ensuring Our CBCE is based on our values and details the principles we comply with applicable legislation, guest requirements and and expectations for how we operate at Rotana. It applies stakeholder expectations. to all colleagues and members of the Board. We expect and The BOD is responsible for the overall strategic direction of the encourage our contractors and their employees to act in a company and risk management and is supported in the day-to- way that is consistent with our code and we take appropriate day operation by four committees: ethics, executive, audit and remedial actions where we believe that they have not met our sustainability. expectations, or their contractual obligations. An official detailed authority matrix is established and approved The code is available on the company intranet and has been by the BOD specifying the authorities of the Executive communicated to all colleagues. It is also incorporated in all Committee and board members in relation to specific tasks employment contracts. All colleagues have to sign the statement involving financial, social, legal, procurement and business to commit and accept the company’s code of conduct, certifying development. This authority matrix represents the key tool for that they have understood the code, will abide by their stated addressing and preventing any potential risks related to fraud and responsibilities under the code and report any breaches of which conflict of interest. they are aware. Shareholders are initially and continuously involved in setting the The code is available in 3 languages: English, Urdu and Tagalog, company’s values, mission, and strategy. targeting the greater portion of colleague nationalities. An investment strategy is established taking into consideration It is a compulsory requirement for all new colleagues to undergo different types of business risks including, but not limited to training on the CBCE training module as part of the Rotana LIFE market, products, political, owner profile, partners, level of orientation programme. The training module addresses in detail investment and the strategy is approved by the BOD. The BOD the intent of the CBCE including: regularly addresses all key treasuries related decisions, and • Compliance with laws, rules and regulations assesses and approves its utilisation. • Conflict of interest
21 Rotana Corporate Sustainability Report 2017
• Confidentiality 2015 2016 2017 • Use and protection of company assets • Entertainment and gifts Colleagues (including 100% 100% 100% governance BOD members and • Dealing with government colleagues or officials employees) who have received • Dealing with media and online communities communication and been trained • Corporate opportunities on the Code of Business Conduct • Protection of company records and Ethics, part of Rotana LIFE orientation • Bribery and corruption • Competitive practices Colleagues (including governance 12,754 12,847 11,163 BOD members and employees) • Political activities and contributions who have signed the Code of • Safety, health and environment Business Conduct and Ethics • Grooming standards Number of languages available of 3 3 3 • Discipline the translated Code of Business • Discrimination and harassment Conduct and Ethics • Use of electronic system • Information system/software • Employment of relatives also undergo the same CBCE training module on confidentiality and customer data privacy. In 2016 and 2017, all new joiners have been trained on the code, and have signed the respective acknowledgement, bringing the Across our group’s workforce of over 11,163 colleagues, all percentage of our colleagues who have been inducted on the complaints or reports of discrimination, corruption, anti- code content and acknowledged their commitment to operate competitive behaviour, anti-trust or monopoly practices shall be ethically to 100%, a total of 11,687 colleagues. logged and duly investigated and dealt with in accordance with the company’s policy. There were no reported breaches and/ The Rotana LIFE orientation programme covers specifically or legal cases with regards to anti-corruption practices or anti- anti-corruption, bribery and discrimination, which are important competitive behaviour. Annual confidential Code of Business aspects of human rights issues pertaining to our area of Conduct and Ethics disclosure acknowledgements are issued operation. on a yearly basis and signed by Corporate Officers, General All colleagues who handle customer information are required to Managers, Resident Managers and Executive Assistant Managers.
Colleagues trained and signed the CBCE by country
665 363 294 154 215 546 735 703 338 0 113 117 778 6137 9000 8000 7000 6000 5000 4000 3000 2000 1000 0
KSA Syria UAE Egypt Oman Qatar Sudan Bahrain Kuwait Turkey Jordan Lebanon DR of Congo Iraq (Kurdistan
2012 2013 2014 2015 2016 2017
22 Across our group’s workforce of over 11,163 colleagues, all concerns related to the people section included: colleagues complaints or reports of discrimination, corruption, anti- career development, equal opportunity, benefits, and adoption competitive behaviour, anti-trust or monopoly practices shall be of technology in our operations. logged and duly investigated and dealt with in accordance with the company’s policy. There were no reported breaches and/ RISK MANAGEMENT AND COMPLIANCE or legal cases with regards to anti-corruption practices or anti- We proactively identify, mitigate and manage principal business competitive behaviour. Annual Confidential Code of Business risks through an effective risk management framework which Conduct and Ethics disclosure acknowledgements are issued includes key policies. We look at strategic, operational and on a yearly basis and signed by Corporate Officers, General compliance risks across the group. For example, external market Managers, Resident Managers and Executive Assistant Managers, conditions can impact our financial performance. We actively Head of Finance, Head of Materials and Director of Sales and manage this risk through Rotana’s diversified portfolio, our Marketing to disclose compliance with code content and any financial framework, and regular reviews of market conditions, unethical incidents. cost efficiency, and our planning and investment processes. The diverse locations of our operations around the world exposes us to an ever changing political climate which has Good Practice, refusing gifts and donations: a direct impact on our operating environment. We seek to In our positions, we fairly often come across people manage this risk through maintaining positive relationships with whether guests, owners or suppliers wanting to thank governments and stakeholders. In addition, we closely monitor us by offering gifts for a job well done and successful events and implement mitigation plans where appropriate. achievements. Since its inception, our company has Changes in laws and public policies relating to climate change, always maintained a very high level of integrity and such as oil pricing, could impact our costs and revenue ethics especially in this regard and in order for Rotana to generation. We are working to help make sure our business is maintain this reputation, things continue to shine brightly sustainable – commercially, environmentally and in a lower for as a strong ethical company. carbon future. We have had several occurrences recently that have Identifying and managing risks: For 2016 and 2017, the main demonstrated our commitment to ethical behavior. risks identified included financial resilience, geopolitical risk, The following highlights some very positive examples security, terrorism, ethical misconduct, legal and regulatory of this commitment: the Corporate Vice President – non-compliance, cybercrime attacks (guests and hotels network) Projects and the General Manager of The Boulevard and major safety, health, privacy and confidentiality incidents Arjaan by Rotana, were offered very expensive gifts associated with our guests/colleagues. which they brought to head office’s attention and these A Rotana Risk Register is currently under development. It gifts were turned down politely and professionally by assesses the most principal strategic and operational risks our colleagues explaining that the services they have affecting the company and its business continuity. We are performed were their duty. working on increasing the incorporation of sustainability risks in the company’s Risk Register. As part of the group environmental health and safety SPEAKING UP management system, all hotels have to conduct an We want our colleagues, contractors and suppliers to feel Environmental Impact Assessment of their operation and comfortable to speak up whenever they have issues related to activities and address necessary control measures and these are our code, or see something that they feel is potentially unsafe, considered before deciding whether to proceed with an activity, unethical or harmful. amend it or stop it. Colleagues are encouraged to discuss their questions or concerns with their managers or with their hotel Ethics Political & Stakeholder Committee. To complement that, we have implemented an economical confidence online system CHAT (Candid Honest Actual Talk) where Rotana impacts Food poisoning Regulations colleagues can engage in a live chat with the Chief Executive General theft & & compliance other crime Officer and Chief Operating Officer. Complacency & inefficient Loss of competitive business continuity advantages after & security planning In addition to communicating Rotana’s strategic direction and a security incident to protect the investment updates, Rotana CHAT offers the opportunity to establish Internal theft Armed Length of Lack of security a productive and transparent dialogue with the company’s robbery audit cycles awareness (physical) executives: updating colleagues on priority business issues and Public violence encouraging them to express their concerns and expectations. Identity Credit card fraud Terrorism theft With the company’s ambitious growth, expanding geographical & shootings Cyber crime Lack of cyber attacks crime awareness presence and the increased communication expectations of the Language Black (guest network) digital age, the CHAT is indeed an essential tool to ensure that barrier outs Cyber crime attacks our brand’s culture and stories are aligned across the company (hotel network) with emphasised dialogue and engagement. The CHATs that were held in previous years, have resulted in Global impacts Technology more than 50 various questions or enquiries. The most common
23 Rotana Corporate Sustainability Report 2017
LOBBYING AND POLITICAL DONATIONS We prohibit the use of Rotana funds or resources to support any political candidate or party. We recognise the rights of our colleagues to participate in the political process. Their rights to do so are governed by the applicable laws in the countries in which we operate. All of Rotana‘s contributions to local communities are reviewed for compliance and are reported in accordance with our online CSR reporting system. The way in which we interact with governments depends on the legal and regulatory framework in each country. We engage across a range of issues that are relevant to our business, from regulatory compliance, to understanding our tax liabilities, to collaborating on community initiatives. As a result of the practices we follow at Rotana, during 2016 and 2017, no financial or non-financial contribution to politicians, public officials and political parties took place, nor did we receive any financial or political assistance from any political parties or governments, and there is no government stake in shareholding. It must be also noted that during 2016 and 2017, there were: • No public policy positions and participations in public policy development and lobbying • No legal actions or pending legal actions related to corruption and fines or other monetary sanctions imposed by the respective authorities • No legal actions for anti-competitive behaviour, anti-trust and monopoly behaviour against Rotana were claimed
Complying with regulations With operations in more than 19 countries, Rotana is subject to diverse and complex environmental and social laws and regulations. • A detailed Environment, Health and Safety Legal Register is developed specifically for every property and country covering various applicable laws, issuing authority, relevant regulatory clauses and compliance verification. We apply operational transparency, governance requirements and International Standards on environment (ISO 14001) and sustainability reporting, a policy and an online reporting platform health and safety (BS OSHAS 18001) and accordingly maintain were created for all hotels for the purpose of providing a a comprehensive system of control including documented consolidated mean of reporting on the hotels’ non-compliances policies and procedures regarding compliance with EHS / breaches with all applicable country laws and/or regulations, requirements, professional standards and applicable legal and including: regulatory requirements. - Legislative • As for social and financial compliance, we apply international - Contractual standards of human resource systems and follow relevant - Permits, licences and other forms of authorisation labour law requirements in the country of operation. For - Relevant labors, social, financial, tourism, environmental, financial systems of work, we comply with the “Unified safety, taxation laws and any other codes and compulsory System of Account for Lodging Industry”. requirements in the country of operation We manage applicable legal and regulatory health, safety, As a result of the practices we follow at Rotana, during 2016 and security, environmental and social requirements through the 2017 there were: following management systems and policies: • No fines or non-monetary sanctions for non-compliance with - Environment, health and safety management system environmental laws, violations of rights for indigenous people, - Emergency management manual incidents of discrimination, incidents of non-compliance with - Code of Conduct regulations and voluntary marketing codes, or any other laws - Country’s relevant labour law non-discrimination policy and regulations. - Workplace violence policy - EHS policy Managing environmental and social impacts - Sustainability policy Various management systems are implemented in our group to help our businesses to understand and minimise environmental Due to the increasing number of regulations, the need for and social impacts. We apply internal practices and policies
24 and external standards, such as the ISO 14001 environmental resettlement, community health and safety, and the livelihoods management standard, OHSAS 18001, Occupational Health of local communities, including indigenous peoples. and Safety assessment series, to achieve demonstrably sound The findings of review help us to design and then carry out environmental and occupational health and safety performance detailed impact assessments, identify mitigation measures and at different times over the life of an operation, including to: implement these in project design, construction and operations. - Identify and assess potential impacts in the planning stages More focus is currently placed on our projects in African countries - Monitor and mitigate impacts throughout operations to tackle material and social issues affecting our operations.
• During Project planning • During Hotel Operation We have specific requirements and recommendations governing Our hotels can have a lifespan of several decades and our how we identify and manage potential impacts of projects that operations work to manage environmental and social impacts carry particular environmental and social risks. throughout. We carry out a screening process to identify the potential Every year, our hotels review their environmental and social impacts that these projects could have during construction and performance and set improvement objectives. These can over their lifetime, such as impacts on sensitive or protected include measures for reducing water, energy, greenhouse gas areas and species. For example, we conducted baseline and air emissions, and waste to social activities, contributions, assessments on a project in Abu Dhabi’s Saadiyat Island, commuting engagement, volunteering hours, colleague’s affecting marine wildlife mainly turtle species. In collaboration welfare and many others. We prioritise our efforts according with the environment agency, we ensured the area and turtles to local environmental sensitivities and their impact on nearby are protected during the project construction and cessation of communities. construction activities during the turtle nesting period. Details of our hotels achievements and performance progress are We undertake preliminary reviews and consider social provided in corresponding sections of the report. aspects, including prevalence of corruption and bribery in the host country, local employment, security and human rights,
25 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Vision and Goals
Approach
Stakeholders Engagement
Materiality Assessment
Sustainability Strategy
26 Vision and Goals
SUSTAINABILITY VISION “To be a hotel industry leader in the implementation of sustainable business practices that minimise harm and maximise benefit to our stakeholders and to the environment”. In order to achieve our sustainability vision, Rotana has identified key strategic sustainability goals that align with our core corporate values of LIFE: Long term, Innovative, Friendly and Ethical. We will use these guiding principles and objectives to manage our businesses in a way that sustains people, the planet, and profit. Our sustainability vision is supported by our Board and Senior Management, who have committed to leading Rotana towards the realisation of this vision.
IDENTIFYING OPPORTUNITIES TO ADVANCE THE UNSUSTAINABLE DEVELOPMENT GOALS. At Rotana, the sustainability goals that we’ve set are framed around global challenges. This is apparent when one considers how well our goals align with the goals that the United Nations (UN) released in their 2030 Agenda for Sustainable Development in 2015. The UN created 17 Sustainable Development Goals (SDGs) designed to build upon the historic work of the Millennium Development Goals, and stimulate important action in three dimensions of sustainable development: economic, social, and environmental. These goals apply from now until 2030 and provide a framework for governments and businesses around the world to stimulate actions in areas of critical importance for humanity and the planet. As a global hospitality chain in the region, we pursue opportunities to advance SDGs that are relevant to our operations. In 2016, we focused our efforts on 13 goals which we identified as priorities where we believe we can make the most positive contribution.
More details on how Rotana is progressing towards achieving its goals, in accordance with, and in support of, the 2030 SDGs, are provided in relevant sections of this report and on rotanaearth.com.
27 Rotana Corporate Sustainability Report 2017
Sustainability Development Rotana Earth Focus Area
Economic Promote sustained, inclusive and sustainable economic growth, full and productive Development Nationalising employment and decent work for all. and Investment
Ensure inclusive and equitable quality education and promote lifelong learning Ethics and opportunities for all. Governance Compliance
End hunger, achieve food security and improved nutrition and promote sustainable agriculture. Guest Community Satisfaction Engagement and Inspiration Reduce inequality within and among communities.
Colleagues Security, Workplace and Health End poverty in all its forms everywhere. Development and Safety
Ensure healthy lives and promote Energy Water wellbeing for all at all ages. Conservation Consumption
Achieve gender equality and empower all women and girls. Material Waste Consumption Management
Take urgent action to combat climate change and its impacts.
Ensure sustainable consumption and production patterns.
Protect, restore and promote sustainable use of terrestrial ecosystems.
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Ensure availability and sustainable management of water and sanitation for all.
28 NO NO GOOD QUALITY 1POVERTY 2 HUNGER 3 HEALTH 4 EDUCATION
GENDER CLEAN WATER GOOD JOBS REDUCED 5 EQUALITY 6 AND SANITATION 7 AND ECONOMIC 8 INEQUALITIES GROWTH
CLIMATE LIFE LIFE RESPONSIBLE 9 ACTION 10 BELOW WATER 11ON LAND 12 CONSUMPTION
OUR COMMITMENTS • We will optimise our consumption of materials and reduce waste To our management and governance to landfill by reusing and recycling natural resources and materials • We will maximise financial returns to our shareholders by To our colleagues optimising our operational efficiency and reducing risks and • We will instil a culture of sustainability through education and liabilities through more sustainable business planning promotion of our sustainability values and principles amongst • We will consult with and engage our stakeholders and our colleagues community on our sustainability initiatives • We will protect the health and safety of our colleagues by • We will instil a culture of sustainability through education and adhering to international principles that respect human rights promotion of sustainability values and principles among our • We will ensure colleague satisfaction and wellbeing at work colleagues, guests and community • We will comply with relevant laws and regulations and To our community ensure that our business is conducted in accordance with • We will instil a culture of sustainability through education and the standards outlined in our Code of Business Conduct and promotion of our sustainability values and principles amongst Ethics our community To our guests • We will contribute to the society we work and live in by supporting local community needs and promoting sustainability • We will ensure guest satisfaction and provide value for money and the cultural values of our society through the realisation of sustainable business practices and operational efficiency • We will contribute to local and national economic development through local employment and the promotion and growth of • We will protect the health, safety, privacy and security of our sustainable tourism guests by adhering to international principles that call To our suppliers To our environment • We will address sustainability issues in our supply chains, with • We will manage our operations in a manner that protects the goal of minimising the negative environmental and social our valuable natural resources and prevents pollution of the impacts of our procurement decisions whilst meeting our environment, in compliance with applicable environmental laws financial and quality requirements • We will minimise our impact on climate change and reduce • We will make preference to source locally and from sustainable our consumption of energy and water by optimising sources in order to support our local communities and operational efficiency, procuring materials locally and adopting environment clean technologies
29 Rotana Corporate Sustainability Report 2017
Approach
In 2012, we developed a sustainability strategy that coordinates one of our colleagues so that it becomes an integral part of our our efforts across our company, known as Rotana Earth. This business. This also provides a framework for us to manage and strategy has helped to address our social and environmental monitor our performance, mitigating, as much as possible, the impacts, and leverage opportunities for continued sustainable environmental or social risks that we pose. growth. We engaged our internal and external stakeholders, While we have continued to see good progress in achieving most benchmarked ourselves against industry best practice, and of our sustainability goals, we have also encountered challenges in assessed broader trends to identify the focus areas which are the implementation of some of our commitments. We will aim to integral to the company’s strategy and core to our business. reassess our performance, management approaches and targets Rotana Earth’s strategic sustainability goals commit us to as necessary to achieve our goals. demonstrating leadership in the three bottom lines of economy, society and environment to be applied in our key sustainability areas: our environment, our colleagues, our guests, our suppliers INTEGRATION IN THE VALUE CHAIN and our communities, together with our over-arching governance Rotana has chosen to use our sustainability strategy as the main framework. pillar of our business. It spans the entire value chain in order to By focusing on the Rotana Earth pillars we hope to further meet the expectations of our stakeholders as it helps us to find integrate and raise awareness of sustainability throughout our new ways to cooperate with our suppliers, owners, and to relate operations, making sustainability personally relevant to each to our guests, colleagues and community in general.
Sustainability-value chain
Sustainability Engaging Engaging vision Marketing colleagues and educating Inspiration, Meet guest commitment and responsible in sustainability diverse innovation expectations to mission communication programmes stakeholders statement
Colleagues engagement, Satisfied Colleagues retention satisfaction, productivity community and talent attraction and innovation Local economic prosperity Effective managers, Sustainable External Operational cost saving Satisfied and rewards systems, company market forces and efficiencies loyal guest workplace culture profit Revenue/growth /market share Company goals, Quality products strategies, systems, and services Growth structure and governance and expansion
Brand/image/reputation
Radically Invest Seek carbon Responsible Reduce increase natural emission supply carbon productivity capital reduction chain footprint
30 Our Stakeholders
Our approach to responsible business is fostered by our desire stakeholder engagement into different sections to demonstrate to understand the concerns and expectations of our key how we are incorporating stakeholder engagement in the stakeholders. Throughout our supply chain operations, we implementation of our sustainability strategy. maintain constructive dialogue with our stakeholders across a spectrum of topics to improve decision making and the STAKEHOLDER ENGAGEMENT STRATEGY accountability of our partnerships. Our stakeholder engagement strategy continues to evolve. We The stakeholder engagement process involved identifying all are continually looking to our stakeholders to help us increase the stakeholders who are interested in, affected by, or have our understanding of their needs, broaden our awareness, potential to be affected by the impacts of our activities, or those seek their feedback and evaluate possible collaborations and who have an ability to influence us. Based on the impacts and partnerships. level of influence, we identified and prioritised our stakeholders We believe stakeholder engagement should be based on candid as our colleagues, guests, owners, suppliers, environmental and authentic dialog, grounded in the company’s values and organisations, and communities (including governmental bodies). should contribute to the evolution of our strategic priorities and We engaged with these prioritised stakeholders to understand goals. Levels of engagement with stakeholders vary greatly by their concerns and receive their feedback on our performance. geography, type and function. On this basis, the feedback reports were prepared and strategic We engaged with many internal and external stakeholders goals and objectives were derived. through various means including: colleagues engagement survey, guests satisfaction survey, General Managers sustainability questionnaire that was conducted during the annual General STAKEHOLDER EXPECTATIONS Managers conference, suppliers satisfaction survey that included Different stakeholders have different expectations, which may more than 120 suppliers, and various individual meetings with be contradictory to each other. Rotana aims to balance differing stakeholder groups. The various engagement means, enabled us expectations, while at the same time allowing all stakeholder to revise, amend and set our sustainability goals and KPIs. groups to feel that their needs are being met. Our materiality assessment demonstrates that our goals remain We involve our stakeholders in strategic decision making aligned with our stakeholder expectations - see the ‘Materiality’ and setting of guidelines that clearly indicate management section for more information. Our goals are aligned with key responsibility. We also proactively share information on our global challenges, as well as the United Nations 2030 Sustainable progress towards achieving or complying with these on a Development Goals. regular basis. In this report, we have weaved our discussions of
31 Rotana Corporate Sustainability Report 2017
Listening to our stakeholders
Colleagues Guests Suppliers • Career growth and development • Satisfaction/high quality products and • Ethical and transparent purchasing • Learning opportunities good services • Procurement practices • Wages and benefits competitiveness • Reasonable pricing and transparency • Economic performance • Social welfare • Clear billing practices • Health and safety • Job security • Environmentally friendly products • Equal treatment • Energy conservation tips • Open interaction • Responsibility • Recognition of performance • Long term relationship • Healthy and safe workplace • Positive impact on the community • Positive impact on the community • Health and safety • Security and Privacy
• Promoting colleagues’ wellbeing • RGSS – Rotana Guests Satisfaction • Suppliers negotiation meetings through safe working conditions and Survey • Contract renewal meetings motivating atmospheres • Social Media • Respecting purchasing agreement • Conducting annual performance • Guests comment cards terms reviews and setting personal • Meet the team gathering Guests- • Evaluating our suppliers’ performance development plans for colleagues department heads and awarding agreements accordingly • Setting a performance based bonus • Strategic level meetings with guest and reward (Rotana bonus scheme) contacts, travel networks • Respecting the culture and values of • Sustainability related brochures colleagues and supporting equality • Sustainability related guest activities • Participating in wage surveys • Developing new product and service • Implementing environment, health packages and rates and safety management systems • Offering good price/quality ratio • Promoting colleagues’ participation in • Implement guests distinction communities contribution activities programmes • Developing guest environmental programmes • Implementing EHS systems • Implementing emergency and security management plan
Communities Owners Environment • Local employment and career • High yield share • Protection and preservation of natural development opportunities • Risk management resources • Contribution • Consideration of the economic, social • Mitigation of environmental impact • Energy and climate change and environmental impacts of our • Compliance with laws operations • Dialogue and transparency • Business continuity • Reporting • Payment of taxes
• Rotana “Duroob” nationalisation • Representation in Board of Directors • Implementation of ISO 14001 programme • Monthly meetings with business • Performance monitoring reports • Media relations events and meetings owners • Implementing environmental • Joint NGO partnership activities • Annual audit reports management system and impact • Contributing to the local communities • Supplier forums and meetings assessment where we operate • Continuously monitoring and • Participating in society activities improving performance in the areas of (campaigns, charities, education) energy, water, chemicals and resource consumption, and waste generation.
32 Materiality Assessment
We look at sustainability in terms of shared global needs and OUR MATERIAL TOPICS the future of our business. Knowing what is important to The focus of our sustainability strategy and this report is on 20 Rotana and our stakeholders is essential for enabling us to material sustainability topics facing our business. We reviewed focus our resources on those areas that will have the most our material topics in 2016 using input from internal and external significant sustainability impact. Health and safety, ethics and stakeholders, including: our guest satisfaction survey, our annual integrity, environmental impact, and compliance are examples supplier satisfaction survey, our annual colleague satisfaction of topics that are relevant to both our business direction and survey, and research of our peers and the hospitality sector our sustainability efforts. As the population grows, particularly more broadly. Our CSC committee developed surveys to obtain in emerging economies, challenges like energy availability feedback from Rotana’s General Managers and Corporate Vice and security, raw material scarcity, human health and safety, Presidents on the relative importance of different sustainability education, and employment also grow. topics. For this reason, our materiality assessment is a vital component We have shared the findings of our materiality analysis on of our sustainability strategy and reporting. By understanding the matrix below, which reflects our understanding of the the critical issues from both internal and external stakeholder significance of each topic in terms of stakeholder interest and perspectives, we can strengthen our ability to develop and action potential business impact. corporate strategy, goals, targets, programmes and initiatives to advance sustainability globally. The materiality matrix shows the relative priority of the 12 high and 8 medium impact financial and non-financial topics that Data provided in our sustainability report includes information were identified as being of concern or priority for our internal on issues that were found through our materiality assessment and external stakeholders. The topics relate to six focus areas – to have the highest potential to impact on our business success our colleagues, our governance, our guests, our communities, and that are of great importance to our internal and external our environment and our suppliers. In 2017, there were no stakeholders. Because we are a diversified company, several significant changes in material topics and boundaries from other environmentally-related topics and performance indicators previous years. relevant to various sectors of the company are also included in the report.
Sustainability Materiality Matrix
• Water • Energy • Economic Performance • Health, Safety and Security • Ethics and Integrity • Local Employment • Guest Engagement
• Diversity and Equal • Waste and Materials Opportunity • Local Supplies • Sustainable Sourcing • Effluent and Waste
• Responsible Transport • Learning and • Biodiversity Development Importance to Stakeholders Importance to • Materials Low • Green Building Design Consumption Medium • Responsible • Education Communication and Awareness High
Impact on Business Success
33 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Satisfaction
Innovation and Technology
Education and Inspiration
Health, Safety and Security
Guests Experience
34 Our Guests
We are dedicated to provide a bespoke, warm and genuine service that enhance our guest experiences in the countries where we operate. Our aim is to constantly refine and modernise our luxury offerings to align with evolving guest expectations. To gain a deeper understanding of the expectations of our guests, we gather feedback through our interactions, surveys, social media, online reviews, and mystery-shopper reviews of our service. These channels provide insight into how well we meet our guest needs and how to improve on our service offerings and standards. In doing so, we strive to continually build long-term relationships with our guests and ensure we exceed their expectations. To bring attention to the delicate and finite natural environments that surround us, we have also engaged our guests in nature- inspired activities to conserve environmental resources. By raising awareness amongst our guests, we help to support the preservation of natural resources and achievement of long-term sustainable tourism in the countries we operate.
OUR COMMITMENT • We will ensure guest satisfaction and provide value for money through the realisation of sustainable business and operational efficiency • We will protect the health, safety, privacy and security of our guests by adhering to international principles that respect human rights OUR FOCUS AND KEY ACHIEVEMENTS Satisfaction • 166,158 guests have responded to our guest satisfaction survey in 2016 and 2017. We achieved an average of 19% response rate in 2016 • We achieved an 86.7% satisfaction rating in our guest satisfaction survey. A new improved guest satisfaction survey was introduced in 2017 called ”Revinate” • Our hotels have achieved a 79% score on LRA quality audits Innovation and Technology • Rotana mobile app was developed in 2016, increasing the mobile bookings by 20% • 74% of our guest rooms are equipped with a guest room management system to control the lighting and 54% to control lighting and air conditioning Education and Inspiration • 282 guest sustainability education activities since 2014 • Our guests participated in 24% of the hotels’ community engagement and sustainability activities • We achieved a score of 82.8% by our guests on our environment friendliness practices • Overall group score on sustainability audits in 2017 was 87.24%
35 Rotana Corporate Sustainability Report 2017
Health, Safety and Security Rotana guest satisfaction survey highlights* • Our guest health and safety incident rate has been reduced • For the RGSS, Rotana achieved a score of 86.7% for 92,894 by 31.5% since 2013 survey responses • 80% of total operating hotels are HACCP certified • The number of survey responses increased by 27.7% from 2015 • 71 health and safety third party audits were successfully • The survey response rate was 19.7% in 2016, with an increase passed in 2016 and 2017 of 5.6% from 2014 • 74% of operating hotels have completed their department • 74.1% of our guests would not hesitate to recommend our areas and activities health and safety risk assessments. These hotels for a stay risk assessments cover all colleague and guest activities and • 94.4% score achieved on the Rotana dining satisfaction surveys areas (RDSS) • Our hotels have achieved an average of 85.42% on the • 95.7% score achieved on the Rotana events satisfaction surveys annual fire safety audits (RDSS) • A total of 265 food control regulatory inspections were • Our colleagues achieved 86.6% score by our guests on their completed with average hotel scores achieving 90.8%. can-do attitude, knowledge and responsiveness. • To-date, 6 hotels in UAE are OHSAS 18001 certified * 2016 Survey Results. In 2017 a new survey, Revinate, was (HandS management system standards) implemented.
HOTELS QUALITY AUDITS SCORE Our hotels undergo quality audits to measure our performance against Rotana’s set standards. The detailed audits provide us with tools to assist through each part of the quality assurance process: communicate, train, audit, analyse and act. The quality audits include sustainability criteria to evaluate the hotels sustainability practices.
Hotels Quality Audits Score (LRA): 79.08% Overall group Score on sustainability audits: 87.24% Guest Satisfaction GUESTS LOYALTY Rotana was the first regional hotel company to launch a loyalty programme for dining and staying in 1999 and reached more than In a world where feedback from guests drives business decisions, 266,452 members at the end of 2017 with member renewal ratios our most important measure of success is our guests and increasing to 58%. their satisfaction. Our guest feedback is essential to providing The programme is one of the most regionally relevant loyalty insights into how we can continuously improve and make smart programmes in the Middle East and Africa, ensuring that every investment decisions that ameliorate the guest experience, Rotana hotel is busy. For 6 consecutive years (2011-2016), Rotana produce higher profits and can be used as an input into training has won the Best Loyalty Programme for its Rotana Rewards programmes to address service shortfalls. programme during the Business Traveller Middle East Awards.
Guests Engagement Activities Rotana Rewards Active Members
350 300 250 325
200 266,452 245 231 150 225
100 135710 123 96356 35 72363
50 59878 65 36950 59 23903 0 19210 2014 2015 2016 2017 2010 2017201620152014201320122011 Total implemented Guests engaging activities activities from total activities Number of active members
36 Rotana Rewards 2017 Members by Programme 266,452 members 58% renewal ratio
EDUCATION AND INSPIRATION We know that by engaging and educating our guest we can achieve better results. In 2016 and 2017, we implemented more than 100 activities and campaigns aiming to raise our guest’s awareness towards environmental and health issues including: 2010 2017201620152014201320122011 • Waste recycling • Energy conversations Exclusive Select Classic Members Members Members • Blood donations • Breast cancer • Children cancer • Heart diseases Exclusive Members Renewal Ratio % • No tobacco awareness • Women’s rights • Universal children day • Diabetes 58 We have achieved a score of 82.8% by our guests
60 on our environment friendly practices. 58 54 48 40
2012 2013 2014 2015 2016 2017 Communicating our achievements and engaging with Renewal Ratio our guests on various sustainability activities.
For 6 consecutive years (2011-2016), Rotana won the Best Hotel Loyalty Programme Award in the Middle East Business Traveller Awards.
ADDRESSING GUEST SUSTAINABILITY EXPECTATIONS We know many of our customers have strong sustainability and corporate responsibility expectations from us. Rotana always wants to be the hospitality chain of choice for our guests. As demonstrated in this report, we set our sights on world-class performance in sustainability and corporate responsibility, and we believe we will meet some of our guest’s requirements in these areas, but we also know that we have to drive real sustainability improvements where they are needed.
37 Rotana Corporate Sustainability Report 2017
SUSTAINABLE MEETINGS UAE FLAG DAY CELEBRATION In 2017, we introduced the sustainable meeting options to help AT TOWERS ROTANA our guests make their meetings and events more sustainable and reduce negative environmental and social impacts by providing: waste separation, paper recycling, plastic bottle elimination, sustainable food menu, energy – efficient appliances, sustainable transportation and participation in socially conscious activities.
Implementing sustainable business practices helps us give nature a VIP treatment.
Our leading 4-star hotel, Towers Rotana, Dubai celebrated the 2016 UAE Flag Day with the pastry students from ‘Smiles N’ Stuff’ of Al Noor Training Centre for Children with Special Needs. The half-day training session on how to decorate a blueberry custard filled vanilla cake was conducted by Pastry Chef, Tharindu Ranatunga to 6 students with the objective of decorating the best UAE Flag Day inspired cake.
ENGAGING OUR GUESTS IN PRESERVING CULTURE AND LOCAL HERITAGE FOR THE FUTURE CULTURAL CONNECTION, LOCAL FOOD. Our history and heritage are intricately linked to the cities where we operate. Several sustainability initiatives were implemented in our hotels inviting guests to participate and to discover what makes each of our home cities special.
EMIRATI WOMEN’S DAY AT KHALIDIYA PALACE RAYHAAN BY ROTANA
Being a leading Emirati company in the hospitality industry, each of the group’s hotels reflects local culture by providing our guests with a warm welcome in their lobby with Arabic coffee and dates and offering local dishes in all their buffets. This will help connect our international guests to the Arabian culture, and explain more of the local cultural history.
In the occasion of the Emirati Woman’s Day celebration, Khalidiya Palace Rayhaan by Rotana, Abu Dhabi hosted a workshop “Empower and Inspire Emirati Women” in collaboration with Mrs. Azza Al Qubaisi.
38 Health, Safety and Security
Ensuring the health, safety and security of our guests is of prime importance to us. Many nations across the globe, including some in our operating regions, deal with issues such as terrorism and/or social unrest, and we aim to maintain effective systems and policies to safeguard our guests. Therefore, we have employed health and safety, security, food safety and emergency management systems in line with local and international guidelines and standards. These systems are designed at corporate and hotel level to ensure safe areas. To list some of our actions: • 70% of our operating hotels have a monthly meeting to review performance and implement improvements where necessary • 76% of our hotels have completed their health and safety risk assessments for all guest areas and hotel activities • Rotana’s environment, health and safety management system is implemented in 78% of our hotels • At present, 80% of our operating hotels are certified under Hazard Analysis and Critical Control Points (HACCP) for food safety management system implementation and the focus is to ensure all our hotels will be certified • During 2016 and 2017, a total of 63 third-party audits were conducted in Rotana properties by third-party auditing company, Bureau VERITAS, to verify compliance against the HACCP, resulting in reduction of total number of observations Introducing a healthy menu in all from 124 in 2016 to 52 in 2017 Centro hotels buffet restaurants. • To-date, 6 hotels have successfully achieved the OHSAS 18001:2007 certification Our guest health and safety incident rate was reduced by 31.5% since 2013.
HACCP Certified Hotels Food Safety Compliance
100 88 164 80 85 81 80 80 75
60 101 91.1 40 90.6
20
0 2016 2015 2012 2013 2014 2015 2016 2017 Number of Food Control Year Average % of certified hotels Regulatory Inspection Score Achieved
39 Rotana Corporate Sustainability Report 2017
• To standardise procedure for handling any security concerns, FIRE SAFETY AND EMERGENCY we have issued the Rotana Crisis Management Protocol that includes response procedures for 22 types of emergencies Our hotels are annually audited by our corporate engineering including security issues. The manual was rolled out in 2015 team to ensure performance and practices are in line with across our operations. The group will have enhanced resilience Rotana’s fire safety standards developed in accordance with the and an improved response in a crisis by adopting the response USA National Fire Protection Associations. procedures. An emergency control organisational process is As part of its Emergency, Health and Safety Management System established in every property and all colleagues are trained on (EHSMS) programmes, Rotana requires its nominated contracted the emergency response procedures. companies to have an EHSMS which must then be approved and • In 2017, 91% of our hotel food handlers were trained on the monitored by our hotels. basic level of food safety and 87% in 2016, in addition to The deployment of EHSMS and action plans has helped us to the intermediate and advanced food safety programme and improve guest perception of safety practices at our hotels. HACCP training for supervisory and managerial level • 79% of our colleagues were trained through health and safety training courses In 2016, 39 fire safety audits were completed in our • A healthy food corner was introduced in all our Centro brands hotels achieving an average audit score of 84.4%. hotels buffet
PRIVACY AND DATA PROTECTION Our robust security measures and privacy management programmes help us give our guests and colleagues the confidence that we are safeguarding their personal data and respecting their privacy. The way we handle privacy and security is a vital part of our responsibility to our guests and essential to the success of our business and it strengthens our reputation in this area. Our hotel guests trust us with their personal information and their privacy. Protecting that information and respecting their privacy is fundamental to maintaining that trust. Our privacy and security programmes govern how we collect, use and manage this guest information from ensuring the confidentiality of their personal profile to protecting and securing their information before, during and after they stay in any Rotana hotel. To ensure this is executed well, we use technology to make it Al Ain Rotana, Atrium outlet was easier and more secure and we check and monitor compliance awarded by the Abu Dhabi food during the annual IT audits as well as front office audits. control authority in category “A” in terms of HACCP and regulatory food As a result of our practices, no substantiated complaints from compliance for Abu Dhabi. outside parties or regulatory bodies concerning breaches of customer privacy and loss of customer data were reported in the last 2 years. SAFEGUARDING GUEST SECURITY Our hotels have invested in various security measures like luggage screening, metal detectors, x-ray machines, regular training of security personnel and organising awareness campaigns for guests. At the corporate level, we have established a security policy committee that has reviewed and rationalised the company security policies, processes, implementation of security procedures and preparedness of hotels for security risks.
SOCIO-POLITICAL AND ECOLOGICAL DRIVERS Political instability, conflict between nations, threat of terrorist activities, occurrence of infectious diseases, extreme weather conditions, and other socio-political and ecological threats directly affect the level of travel and business activity. While we have minimal control over these risks, we diligently monitor national and international trends and make decisions or adapt our operations accordingly.
40 Innovation and Technology
CO-INNOVATION WITH SUPPLIERS EXPLORING THE VERY LATEST TRENDS In 2017, we consumed in our hotels 8,490,300 plastic water In today’s ever connected world, our challenge is to continue bottles of 500 ml capacity, and 1,034,448 of the 1.5 litres bottles. to adopt increasingly high-tech and innovative services and In line with our initiaves to reduce plastic consumption in our advanced in-room technologies. Insights into innovation requires hotels, our Corporate Director of EHS put forward an idea to a close focus on both global and local trends. The way we look at develop a prototype machine for hotel guest rooms producing it, with new generation needs and guests expectations come new drinkable water from air, an initiative to support the reduction of opportunities to deliver value to our guests. thousands of plastic water bottles used in guest rooms. At Rotana, we are constantly seeking innovation and development We have approached a Canadian company with the drinkable air in all departments. This requires keeping the hotel owners aware idea to seek their support in developing an in-room water making of the continuous need for resource efficiency and innovations prototype unit that can produce about 4 litres of water a day. on all levels in order to ensure guest expectations are exceeded. In the past two years, we have placed a lot of emphasis on The company had a similar vision of sustainability in eliminating technology and have implemented several guest focused all plastic within the various sectors. technology initiatives including an upgrade of the Rotana mobile The unit is self-contained and uses the water in the air, wastes no app and launching several new apps for guests and colleagues. oil and has no plastic to disintegrate. It produces 7 litres a day in a typical hotel room environment with 50% humidity level and 22 celsius. There is no labour required to get the water to the room and no waste to haul away. The model will be placed on trial in guest rooms to assess guest feedback and perception on the use of such technology, the initiative will help the hospitality sector to tremendously reduce plastic water bottles in its industry.
Drinkable Air Rotana Guest Rooms Prototype Unit
• Uses moisture in the air to make drinking water • The patented EnviroGuard Ozone System purifies the water which keeps it pure and fresh tasting by enriching it with oxygen • Minimal maintenance • Water is enriched with minerals • A viable solution to meet drinking water needs on a large scale • Does not rely on or deplete already stressed fresh water resources • Environmentally friendly and cost effective • No toxic waste from non-biodegradable plastic bottles • Drinking water is chemical free and clear of all bacteria, viruses and contaminants
41 Rotana Corporate Sustainability Report 2017
THE DIGITAL TRANSFORMATION MOBILE COMMUNICATION AND AUTOMATION Digital transformation is helping our hotels to become more agile, With the mobile and smartphones’ evolution, we have decided customer centric, efficient and innovative. not to focus on specific products or solutions but to keep our guests digitally engaged and connected with us. Our stragety is to enhance our capabilities of fully leveraging the possibilities and opportunities of new technologies and their Hence, we have deployed a mobile platform that integrates with impact faster, better and in more innovative ways in the future. hotels’ key application in order to extend the value added services to our guest via the various available smart devices. A variety of End-to-end customer experience optimization, operational guest and colleague apps were introduced to improve our hotels’ flexibility and innovation, are key drivers of digital transformation. efficiency and enhance our guest experiences. These solutions will help in automating our customers’ digital journey. 101010010
42 ONLINE CHECK-IN SOCIAL MEDIA Rotana has embraced the smart technology service model even Our social media presence continues to grow on several platforms further by introducing an online check-in service, allowing our such as Facebook, Instagram, and is an important aspect of our guests the option to speed up their check-in experience at the communications that keeps our stakeholders informed of our hotel by completing their online check-in using either rotana.com, programmes, events, and highlights throughout the year. Rotana app or an HTML link.
TABLET DELIVERED SERVICES 2016 2017 With the plethora of tablet options now available on the market and the various applications that can be developed using them, 2,473,280 3,047,594 Rotana, has re-evaluated certain processes that could improve our Video Views Video Views guest satisfaction with the use of tablets: 2,377,654 3,103,037 • Tablet check-in and check-out: 85% of guest surveys found Likes Likes the tablet check-in a better check-in experience to a typical hotel paper-based registration check-in 125,990 174,816 • Guest surveys: guests complete a quick satisfaction survey Followers Followers on the tablet presented to diners and event organisers. Greater response rates and more detailed satisfaction intelligence has allowed the company to improve the guest experience 136,154 146,815 Followers Followers • E-menus: tablets that include menu items and wine selections are presented to guests in the restaurants to improve their 10,303 9,928 dining experience and provide a more accurate understanding Likes Likes of their selection
43 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Engagement
Diversity and Equal Opportunities
Development and Growth
Wellbeing, Health and Safety
Colleagues
44 Colleagues
Following a turbulent and challenging period in the global and regional economy, a significant component of Rotana’s management and HR activities in 2017 were focused on our ability to alleviate the impact on the payroll. This created a challenging environment in which to uphold our commitment to keeping our workforce motivated and engaged. Recruiting and employing decisions play a critical role in ensuring that we put the right people in the right roles and places. We value diversity at every level of our organisation and respect the rights of all our colleagues. The top drivers in talent attraction and retention include a sense of ownership, training opportunities and career advancement. Beyond this we have embedded the well-being of our people in our day-to-day activities to ensure safe workplaces and a culture of good health. We enable our colleagues to volunteer and give back to the community through our contribution programmes. Our equal opportunities’ policy applies to every colleague in the company and commits us to eliminating discrimination, harassment and victimization in the workplace. We support freedom of association and collective bargaining for our colleagues and diligently comply with local labour laws and regulations in the countries in which we conduct business. Forced or compulsory labour of any kind is not tolerated by Rotana, nor do we exploit child labour in any of our operations.
OUR COMMITMENT • We will instil a culture of sustainability through education and promotion of sustainability values and principles amongst our colleagues • We will protect the health and safety of our colleagues by adhering to international principles that respect human rights • We will ensure colleague satisfaction and wellbeing at work OUR FOCUS AND KEY ACHIEVEMENTS Engagement • We increased our colleagues’ satisfaction survey score by 3% in 2017 vs 2016 • We have reduced our colleagues’ turnover to 29.6% in 2017 from 36.6% in 2013 • 89.7% of our colleagues have participated in the Rotana Engaged to Life (ETL) satisfaction survey in 2017 • Our female colleagues’ turnover has unfortunately increased from 35.7% in 2016 to 43.59% in 2017 Development and Growth • In 2016 and 2017, we provided 531,127 hours of training to our colleagues • We have invested around USD 3M on training • Average hours of training per colleague are 29 hours in 2016 and 19 hours in 2017 • 100% of our eligible colleagues have received their annual performance reviews
45 Rotana Corporate Sustainability Report 2017
• We have promoted 2,293 colleagues in 2016 and 2017 Workplace Health, Safety • 1,465 positions were filled internally by colleagues taking the • Total of 44 hotels were assessed for health and safety risks. opportunity of inter company transfer in 2016 and 2017 81% of our colleagues are trained on the company’s health • In 2016 and 2017, we accepted 401 interns for development and safety awareness course as of end of 2017 from the communities where we operate • In 2016 and 2017, we have implemented 1,734 colleagues’ Diversity and Equal Opportunities welfare activities, 24% of the activities are focused on health and safety topics • We employ 11,163 colleagues from 106 nationalities • 61% of our hotels have an onsite gym in the colleagues’ • Gender diversity: the overall gender split of our colleagues is accommodation 17.78% female and 82.2% male • 27 hotels introduced a healthy menu in the colleagues’ dining • Age diversity: the age profile of our colleagues remains area relatively young: 50% younger than 30 years, 3% older than 50 years • 26% of our hotels have a designated relaxation room/lounge for colleagues • The percentage of female in management level is 19.42% (grade 1-3) and 4 female general managers • 67 female colleagues received their maternity leave in the last 2 years and were still employed 12 months after returning • The entry level wage of our employees is higher than the to work minimum wage in all countries where we operate • We employ 100% of our colleagues with full time employment contract • Number of registered users on Rotana careers site has increased from 678,000 in 2016 to 804,386 as of end of 2017 • We employed 1,915 new colleagues across our new hotels openings in 2016 and 2017
Engagement
COLLEAGUES SATISFACTION and a satisfaction survey to give our colleagues the opportunity to give constructive and honest feedback to enhance their In 2013, Rotana entered into an agreement with Aon Hewitt to engagement. Our colleagues’ satisfaction survey score has conduct ETL “Engaged to Life’ for the company’s new colleagues increased by 3% in 2017 vs 2016 with an 89.7% participation ratio.
The 2016 survey results action plans for employee engagement were focused on the following areas:
In 2017 survey results, 80% of our colleagues would not hesitate to recommend Rotana to a friend, 2% higher than 2016 results
Human Quality Department Direct Total Sustain Resource Improve of Life Head Manager Rewards Practices
46 Loyal and dedicated colleagues have worked across Rotana 100 hotels for decades... Rotana rewards this work and commitment from colleagues with training and development opportunities, career progression and continued support has helped us to 80 88 88 89.7 84 continue attraction and retain committed and loyal colleagues. 80 The average tenure for a General Manager in the company is 7.6 69 67
60 66 66
64 years and average for all other colleagues is 3.6 years. Rotana recognises that it still needs to improve the retention of young 40 colleagues which have a turnover of 37.8% for the under 30 age group, an increase of 3.1% in comparison to the previous year. 20 We consider this turnover rate to be too high and recognise that more needs to be done to retain our valuable colleagues and are committed to continue working on this issue. 0 2013 2014 2015 2016 2017
Surveyed colleagues Satisfaction ETL Score The average tenure for a General Manager in the company is 7.6 years and average for all colleagues RETAINING OUR COLLEAGUES is 3.6 years. With the various engagement programmes and human resources policies and initiatives, we were able to reduce colleague turnover from 36.6% in 2013 to 29.6% in 2017. However we Turnover Rate by Age (%) recognise that we need to continue to improve our programmes to retain more of our female colleagues and further reduce the 40 overall turnover rate.
Colleagues Turnover 20 50
40
43.59 0 30 2015 2016 2017 35.7 35.6 32 34.9
31.3 Group Group Group Group 29.7 29.6
20 27.5
26.3 (18-30) (31-40) (41-50) (51-60+) 10
0 2013 2014 2015 2016 2017 Turnover Rate by Country
Total turnover rate % Female turnover rate % Jordan DR of Congo Turkey Syria Turnover Rate by Level (%) Sudan 40 Saudi Arabia Qatar 30
32.0 Oman 30.0 28.7 29.0 28.2 20 27.6 Lebanon 24.6
22.4 Kuwait 10 20.2 Iraq 0 Egypt Bahrain Senior Middle Line Management Management Colleagues 0 20 40 60 80 100
2015 2016 2017 2015 2016 2017
47 Rotana Corporate Sustainability Report 2017
WHY ROTANA
Our Chairman and Vice Chairman presenting “If you are looking for real success then you are in the right a 20 year Long Service Award to Saban Raiz place at Rotana where you can create your new biography. (former General Manager of Majestic Arjaan by Choose a job you love, choose Rotana.” Rotana, Bahrain) at the General Manager Annual Conference in 2016. Sajid Sharif Yaseen Al Qawasmeh (Jordanian) Human Resources Manager Nour Arjaan by Rotana LONG SERVICE AWARDS We reward the loyalty of our colleagues by providing long representation of their own choice. As of 2016, most of our service awards to honour their many years of service to the workforce was not covered by specific collective bargaining company and as well as encourage their ongoing loyalty towards agreements. However, according to more recent information Rotana for completing 5, 10, 15 or 20 years as well as boost supplied by each hotel, in 2016 and 2017 approximately 7.5% of morale. permanent colleagues in Egypt, Sudan and Democratic Republic of the Congo have subsequently participated in some form of INTERNAL MOBILITY collective bargaining agreement between workers and hotel Personal development plans and practical actions are key management. to help realise each colleague’s potential. Rotana is building greater visibility around the different career paths available to our colleagues across our global network of hotels. The inter WHY ROTANA company transfer (ICT) policy makes the internal mobility afforded to our colleagues available for external transfers as well. We seek to reward our colleagues and give them a sense of ownership, and therefore we encourage inter-company transfers at all levels. Rotana abides by local minimum notice requirements for informing colleagues when there are significant changes in our operations and at minimum 3 months of effective change date. We honestly engage with our colleagues to explore and agree on alternative employment options, when a property is reflagged such as arranging for inter-company transfers or facilitating transfers to hotels in other countries. We also offer severance packages by implementing the hardship allowance policy in specific high-risk countries like Sudan. The Rotana Code of Conduct and Ethics embraces our colleagues’ right to exercise freedom of association and to have “I can’t imagine anything more worthwhile than doing what I love most. And Rotana pays me for it.” In 2016 and 2017, 1,465 colleagues took the opportunity to transfer to a sister hotel or moved to Lea Sulit (Filipino) other countries for openings, new job functions or Guest relation agent increased job scope. Beach Rotana
48 CONSTRUCTIVE DIALOGUE each hotel engages all colleagues on different matters and seeks their feedback or concerns during round table lunches or Mutual respect and loyalty are key attributes of interpersonal breakfasts. The different type of meetings and gatherings are communication that enhance performance and productivity held to keep colleagues updated on priority business issues, in the Rotana workplace. One of the mechanisms that Rotana celebrate achievements, recognise guest champions, distribute adopts to achieve this is colleague performance appraisals. A awards, and encourage colleagues to express their concerns and discussion between managers and colleagues takes place to expectations. review achievements, provide feedback against key performance objectives, and to set the framework for continuous To complement these initiatives, the online system CHAT improvement. (Candid Honest Actual Talk) was established to facilitate a structured communication of colleagues with the company’s Our hotels use different means to ensure that colleagues are Chief Executive Officer and Chief Operating Officer. The CHAT informed, kept updated and their opinion heard at all time. has proved to be an essential and valuable tool that ensures These include notice boards, weekly meetings, monthly team more emphasis is placed on regular dialogue and engagement. gatherings and ad hoc meetings. The senior management of
Diversity and Equal Opportunities
BUILDING A BALANCED TEAM It is a strategic decision for our business to provide a workplace environment that embraces different cultures, ethnicities, Rotana is committed to attracting and retaining a diverse and genders and backgrounds. Permanent colleagues represented balanced team by providing an inclusive, non-discriminatory 100% of our workforce. workplace which provides opportunities for continuing development for all colleagues as well as fair consideration of all applicants regardless of their gender, age, nationality, religion or We employ 11,903 colleagues from 106 any disability. nationalities. The total permanent headcount in our hotels at the end of 2017 was 11,163 colleagues representing 106 nationalities. The overall We employ 100% of our colleagues gender split of our colleagues is 82.2% male and 17.7% female. with full time employment contract. The age profile also remains relatively young (50% younger than 30 years, 47% between 30 and 50 years, 3% older than 50 years). The proportion for senior managers (General Managers, The overall gender split of our department heads) is 4.8%. colleagues is 17.7% female and 82.3% male. Rotana adheres to all local laws relating to labour rights across 19.42% of our managers are women. all countries in which it operates and we take significant steps to ensure that there are no violations of worker rights, including The entry level wage of our colleagues forced or compulsory labour, including among contractors. is higher than the minimum wage in all countries where we operate with no DIVERSITY AND EQUAL OPPORTUNITY age, gender, nationality differences. Annual audits are done by corporate A culture of diversity and equal opportunities is one of our greatest Human Resources to ensure compliance strengths and allows us to operate cohesively across the regions with the Rotana salary scale. in which we have a presence. We have clear policies on equal opportunity to enhance diversity and promote inclusiveness: • All colleagues and job applicants are treated equally regardless Our colleagues’ managers are responsible for ensuring that of their race, colour, religion, nationality, ethnic origin, or the equal opportunities policy and other labour principles are gender adhered to within their departments. In our offices, colleagues receive mandatory training on workplace conduct and business • All properties recruit, develop, promote and reward individuals ethics as part of their orientation onboarding programme. on the basis of their experience, abilities, and qualifications and We encourage and promote procedures for reporting any in accordance with our business needs unwelcome attitudes in the workplace.
49 Rotana Corporate Sustainability Report 2017
20.5 WHY ROTANA 20
19.5 19.9 20.0 19.7
19 19.4 19.4 19.1
18.5 19.0
18 18.6
17.5 18.1 17.8 17.7 17.7 17 17.3 17.3 16.5
16 “Rotana has a strong culture of long term, friendly 15.5 relationships with guests and colleagues alike. I am proud to work here since I feel recognised in my work, and my 2011 2012 2013 2014 2015 2016 2017 career is nurtured and enhanced through many activities and training offered within the company. Working with Rotana is Total Female Female - Management Level truly a Treasured Time.” Colleagues (Grade 3 & above) Leila Arabieh (Lebanese) Sales Executive Area Sales Office
A Rotana grievance procedure is available to any colleague who believes that he or she may have been unfairly discriminated As a result of the Rotana HR policies and the auditing practices, against. during the last two years there were no violations of rights for indigenous people in the countries of operation. As part of the routine Human Resources audit of hotels, the corporate office monitors the implementation of this non- We do not participate in forced and compulsory labour or child discrimination and grievance policies, and that compensation, labour of any kind. Our policy on age of employment is in strict benefits, promotions, transfer opportunities, training and other accordance with local laws and regulations in every country of benefits are administered without discrimination. The number operation. Our responsible purchasing code enforces these same of incidents of discrimination during the reporting period were principles on our suppliers too (more details are provided in the minimal with a 100% of these discrimination incidents resolved suppliers section of this report) with corrective and preventative actions taken and grievance mechanism implemented as per our equal opportunities policy.
Total Number of Full Times Colleagues #
15,000 12,847 12,754 10,000 11,163 11,031 11,083 10,439 9,775 10,206
5,000
805,386 applicants: our Rotana careers website alone attracts talents from more than 106 nationalities. Number of registered 0 users on Rotana careers site has increased from 678,000 in 2010 2011 2012 2013 2014 2015 2016 2017 2016 to 804,386 as of end of 2017.
50 BENEFITS AND COMPENSATION EMPLOYMENT OF COLLEAGUES WITH SPECIAL Rotana offers its permanent colleagues a competitive NEEDS compensation and benefits package in all its regions of In 2016, our Abu Dhabi hotels launched a new employment operation. Performance based incentives underpin our Medical Special Needs questionnaire to be completed when compensation strategy, which we believe, enhances the culture employing new colleagues in compliance with the occupational of partnership and teamwork across the company. Under our health and safety requirement. It screens individuals to assess compensation framework, a proportion of colleagues’ annual any special needs required to enable the employee to fulfill their bonuses are deferred, and subject to key performance objectives stated roles and responsibilities and the following considerations and an evaluation of competency. This creates a sense of are made to support those needs: ownership and accountability that is central to our corporate • Reasonable adjustments are made in the colleague’s culture. department and facilities to provide the person with access to all normal areas in the hotel; The total paid in colleagues’ salary, benefits • Reasonable adjustments are made in the colleague’s workplace and rewards in 2016 and 2017 was and their responsibilities to ensure reduction and prevention USD 424.5 Million. of occupational incidents; • The Human Resources leader ensures that a Personal We also offer a benefits’ programme that includes medical, Emergency Evacuation Plan (PEEP) is developed for each health and disability cover, end of service plans, parental person who is identified as having special needs. The leave, food and beverage discounts and stay-over discounts for colleague is allocated a designated “buddy “who will provide colleagues and for friends and relatives of colleagues. The end of him/her with any necessary assistance during an emergency service payments are paid as per the applicable country’s labour evacuation. law and are accrued pro-rata forming part of Rotana’s operating cost. Cash and receivables normally cover such accrual commitments. Overtime hours are duly compensated. Rotana has a policy that requires our colleague’s passports to be secured with Human Resources to prevent loss of personal documents. In the last 2 years, 67 of our colleagues received their maternity leave as per the applicable labour law and returned to work soon after their leave. The Rotana Balance Score Card (RBS) policy fairly recognises and rewards eligible colleagues for their contribution and good performance. To encourage colleagues to be involved and to participate in the success and growth of the company, a Performance Management policy has been established to reinforce the Work experience for Al Noor Training Centre for Children company’s belief that good performance of our colleagues with Special Needs students. directly reflects on our growth, and colleagues who contribute For four months, 8 Al Noor special needs students between 18 with good performance deserve recognition, merit and to 23 years old have been undergoing a training programme at reward. Thus, further motivating them to continue to be Centro Barsha in the departments of housekeeping, laundry, highly productive. Men and women are treated equally in this administration and kitchen. The work experience is aimed at performance based remuneration framework. providing hands-on education and emotional support in a real To ensure Rotana’s compensation package retains its competitive work environment. edge, Rotana participates in an annual compensation and benefits survey and has signed an agreement with Aon Hewitt, a 3rd party company which conducts salary surveys.
In the last 2 years, 67 of our colleagues received their maternity leave as per the applicable labour law and returned to work soon after their leave.
51 Rotana Corporate Sustainability Report 2017
Development and Growth
COLLEAGUES SATISFACTION markets, we remain committed to the growth of our people and have not compromised on our training and development initiatives, Rotana developed a series of new competency and values-driven spending close to USD 3.1 million in the last 2 years. development programmes in support of our business development plan to enrich our learning and development resources and portfolio. These initiatives were introduced or updated in 2017 and include: • On-Stage: the 2-day ‘On-Stage’ has been tailored in line with Rotana’s competencies “Influencing Outcomes” and “Building Relationships”. The learning techniques and exercises are based on theatre and drama classes. ‘On-Stage’ helps our managers prepare for that moment so that when it is showtime, they will own the stage. • Tech Ken: an introductory 2-hour workshop that aims at equipping our colleagues with the appropriate knowledge and information to answer all guests’ questions related to IT, as well as introducing them to the social media platforms, tips and appropriate online manners (Netiquette). Rotana Training Centre has received the “International Training • Engagement Workout: is a comprehensive 1-day course Centre of Excellence” award plaque from Highfield UK that helps leaders present and action the engagement Chairman Mr. Richard Sprenger, in recognition of the group initiative “Engaged to LIFE”. It prepares them to understand efforts towards health and safety continuous training as well as engagement, contemplate their own engagement levels as well the very good rating that our Environmental Health and Safety as that of their teams. They will be able to develop strategies (EHS) tutors received on the Competency Assessment and to move the engagement needle upwards. Grading completed by Highfield assessors. Rotana’s Highfield • Coach: it is a 1-day training programme for managers. It covers journey: the essentials of coaching and, most importantly, the right way • Approximately 6,000 colleagues trained by our EHS team of conducting a coaching session where coaches discover • 24 approved tutors from the EHS team answers for themselves. • 460+ training sessions held so far as detailed below Despite challenging economic circumstances in some of our
Unit 2014 2015 2016 2017 Total training hours Hours 347,258 349,379 377,379 153,748 Average hours of training per colleague Hours 31.48 27.39 29.37 19 Total training cost USD 2,769,775 2,733,741 2,614,833 489,533 Average cost of training per colleague USD 31.48 27.39 29.37 51
RECOGNITIONS AND AWARDS PERFORMANCE MANAGEMENT REVIEWS To demonstrate Rotana’s commitment to career development, The Rotana Performance Review policy enables us to communicate our promotion and inter-company transfer policies reward high performance expectations to colleagues at the start of the year, performing colleagues by promoting them or transferring them thereby, ensuring that day-to-day actions taken throughout the to other Rotana properties, thereby, retaining valuable learnt year, contribute to the achievement of our business strategy. knowledge and skills within our company. In the process, we This policy also provides a formal process to accurately motivate and encourage colleagues to participate in their own evaluate performance as a basis for sound business decisions self-development and strengthen Rotana’s image as a reputable and in remuneration management, succession planning and talent preferred employer. management. The first stage of the Performance Management Reviews involves Performance Planning where line managers Colleague Growth and Development and colleagues meet at the start of the year to discuss job responsibilities, agree on performance goals for the year ahead, 2014 2015 2016 2017 and plan the personal development needs to support effective Number of promotions 1,115 1,093 1,120 1,173 performance. All 100% of our eligible colleagues (completing six months) received an annual performance review in the year of Number of inter-company 561 506 553 912 2016 and 2017 and it included their career development plan for transfers the coming year.
52 The Rotana Guest Service Champion awards recognises the behaviour and effort of a colleague who goes the extra mile to WHY ROTANA create a ‘Treasured Time’ experience and promotes Rotana as a guest caring brand. Guests Service Champions are invited to the Annual General Managers Gala dinner to participate and receive their awards.
“Rotana is my life; I believe in Rotana because they always take care of us. With its intensive development, Rotana gives us more opportunities to grow within the company.”
Apu Gomes (Bangladeshi) Chef de Partie Towers Rotana Rotana’s Guest Service Champions receiving their awards during the Annual General Managers Gala dinner in 2016 COLLEAGUE RECOGNITION AND ENGAGEMENT WEEK (CREW) LIFE CARDS At Rotana, colleague recognition and engagement activities are carried out throughout the year. The company has set formal These are a formal acknowledgement of a person’s behaviour, recognition schemes that are implemented across all our brands: effort or business results that support Rotana or the property’s LIFE cards, Colleague of the Month, and Guest Service Champions. goals and values and an acknowledgement of where a colleague Properties perform random acts of appreciation as well during has clearly performed beyond expectations. Communicating and the year like celebrating colleagues’ birthdays, inviting them to celebrating the employee’s performance encourages the colleague departmental outings and to participate in various Rotana Earth and others to continue or copy that behaviour. initiatives. In addition to these formal and informal schemes, CREW is scheduled annually to celebrate Rotana colleagues during a 5-day Guest Service Champion Story activity-packed week that aims at creating a positive energy and happier-than-usual mood in all properties. It is the opportunity to say ‘Thank you’. CREW is all about showing our management’s gratitude to colleagues with an appreciation of everything they have done.
Colleague Recognition and Engagment Week
During 2016 and 2017, 2,730 LIFE CARDS were issued to our colleagues to acknowledge their efforts, behaviour or business results.
53 Rotana Corporate Sustainability Report 2017
ROTANA EARTH AWARD In 2013, Rotana introduced the Rotana Earth award to recognise our hotels’ efforts for achieving exceptional sustainability results such as: • Community’s contribution and engagement activities; • Colleague’s engagement in sustainability aspects and implementation of initiatives to promote sustainability and increase colleague’s awareness; • Guests involvement in hotel activities and initiatives encouraging environmental, social and economic sustainability; • Environment; Implementation of exemplary practices and measurable efforts to manage negative environmental impacts across the operation in the areas of energy, waste and water; • Supply chain initiatives promoting responsible and local supplies and enhancing local economic development in the country of operation; Al Ain Rotana, UAE winner of Rotana Earth award, 2016. The Cove Rotana Resort, UAE winner of Rotana Earth award, 2017.
Wellbeing, Health and Safety
Rotana is committed to achieving zero harm across its operations. Our health and safety policy and guidelines are implemented to ensure the necessary focus on safety systems at work, response to incidents and risk assessments.
A colleague receiving his best environment, health and safety practice award for exceptional implementation practice in his department at Amman Rotana, Jordan.
In 2016, we launched a group-level mandatory EHS awareness course to educate colleagues on our procedures and protocols Abu Dhabi General Managers participating with their to safeguard guests and reduce workplace injury. At the end of hotel colleagues in the Walk for Life- Diabetes awareness 2017, 81% of Rotana colleagues across the group had completed marathon. the training. For 2018, we aim to increase the safety training by a minimum of 5% with annual attendance of more than 85%. In 2016 and 2017, we have implemented 1,734 Since the launch of our EHS management system, we continue colleagues’ welfare activities in our hotels. to build onto our regional policies to monitor and streamline 24% of activities focused on health and wellbeing reporting, which exceeds legal health and safety requirements topics. applicable in the countries in which we operate.
54 • 80% of total operating hotels are HACCP certified; • 104 EHS third party audits were successfully conducted and passed in 2016 and 2017; • 74% of our operating hotels have completed their department areas and activities health and safety risk assessments; • 77% of hotels have established an EHS committee; • Our hotels have achieved an average of 85.42% on the annual fire safety audits; • In the last 2 years we had 265 food control regulatory inspections. Hotels average scores achieved 90; • To date, 6 hotels in the UAE are OHSAS 18001 certified (H and S management system standards); • 81% of our colleagues are trained on the Rotana EHS awareness course; • 89% of food handlers are trained on the basic food safety Colleagues receiving their training certificates on the basic course; food safety course at Amman Rotana, Jordan. The overall incident rate for 2016 was 4.53% although the majority of these were minor workplace injuries such as cuts or bruises. For 2017, we were able to further reduce colleague In 2017, 77% of hotels had established an EHS injuries by 26%, and our group incident rate dropped from committee and 74% of operating hotels had 4.53% to 3.4%. completed their department areas and activities health and safety risk assessments. Our lost work day rate was 16.09 for 2016. There were zero fatalities related to workplace incidents or occupational health. DRIVER SAFETY Rotana has implemented a specialised Driver Fatigue policy and Rate 2016 2017 support training programme designed to ensure drivers’ safety. Incident Rate (%)* 4.53 3.4 The training programme includes guidelines to help operators manage driving related fatigue, identify the safest routes, avoid Lost Work Day Rate 16.09 15.4 road rage, and take extra care when driving in high ambient *incidents rates= per 200, 000 hours worked, for 100 colleagues, temperatures. the number of colleagues have been involved in a recordable health and safety injury or occupational illness (serious injuries case + serious SAFETY IN HEAT occupational illness cases first aid case + restricted workday case + medical treatment case.) Rotana has launched the Safety in Heat programme to raise awareness on the procedures that must be implemented under the Heat Stress Management programme by our colleagues and ENVIRONMENT, HEALTH AND SAFETY COMMITTEES supervisors in the hot summer season in order to protect them Rotana seeks colleague participation at all levels to ensure from the heat. The shift schedules are rotated and colleagues involvement and ownership of safety and health programmes working outdoors are provided with a water cooler, ice box with and systems. EHS committees which typically comprise of water and liquid isotonic drink. management department heads, are key to us achieving effective, proactive solutions to health and safety issues, as well as substantive results. Emphasis is placed on adding colleague’s representation from all grades on the committee to ensure a cooperative effort to achieving EHS goals. Through these collaborative efforts, all colleagues have the opportunity to be involved in risk assessment activities, to develop action plans, and to assign responsibilities for completing safety and health-related goals and objectives. In 2017, 77% of hotels had established an EHS committee and 74% of operating hotels had completed their department areas and activities of health and safety risk assessments.
55 Rotana Corporate Sustainability Report 2017
Centro Capital Centre participates in “Working Safely in Downtown Rotana, Manama: to spread awareness on the Heat” Campaign healthy living among its employees, the hotel, hosted a Health Awareness Day at the hotel, in cooperation with the Bahrain Centro Capital Centre participated in Health Authority - Abu Specialist Hospital (BSH). Over 90 employees received Dhabi’s annual “Working Safely in the Heat” campaign by complimentary medical screening that included blood sugar distributing 1,000 bottles of water and 200 packs of juices, tests, blood pressure, height and weight amongs others; all along with awareness materials related to the campaign. participants also received discounted vouchers for follow up The initiative was aimed at strengthening awareness and check-ups at BSH. encouraging workers to stay well-hydrated to reduce the risk of heat exhaustion, heat stroke and other hazards
EMERGENCY MANAGEMENT REVIEW Summer Safety in Heat - colleague and guest awareness campaign in Rotana hotels The Rotana Emergency Management Planning committee at the corporate office has reviewed the emergency procedures and added the following 3 new procedures on the existing 21 response procedures to ensure all types of crises are covered and colleagues are trained on the effective response. Training and mandatory annual drills are implemented. • Civil Disturbance and Community Local Crisis; • Evacuation of Guests and Colleagues with Special Needs; • Dealing with Adverse Weather Conditions;
Office Ergonomics A campaign was initiated across all Rotana hotels on office ergonomics and spinal care awareness. A target was set to all hotels to complete the ergonomic assessment for all office colleagues.
• 61% of our hotels have an onsite gym in the colleague’s accommodation. • 27 hotels introduced a healthy menu in the colleagues’ dining area. • 27% of our hotels have a designated relaxation room/ lounge for colleagues. • 24% of our colleague’s welfare activities focused on health and safety topics, 209 out of 858 activities implemented in 2017.
56 VIOLENCE IN THE WORKPLACE Jumeira Rotana and Villa Rotana, UAE celebrated Pink Day Rotana’s policy on work place violence prevention was issued in collaboration with Belhoul European Hospital and Belhoul in 2017. Among its main objectives is for hotels to conduct a Speciality Hospital. The specialist from the hospital spoke violence risk assessment of all departmental activities, and to during the session to educate attendees about breast cancer report and investigate incidents of workplace violence. and how to detect it at an early stage. In addition a breast cancer survivor attended to share her inspiring story. WORKING IN INTERNATIONAL LOCATIONS With Rotana’s fast expansion in different regions, our colleagues travel regularly to assist in openings, to work there or to conduct hotel audits. All of our colleagues are medically covered for minor injuries, medical issue and for medical evacuation and repatriation in case of a medical emergency. As for safety and security emergencies, the Human Resources leaders are responsible for ensuring that a colleague travelling outside his base country for inter-property assistance, transfer or a business trip, is inducted on the specific requirements of the countries intended to be visited, including: • Potential security risks: violence, theft, robbery, threats to personal safety, civil unrest, terrorism, kidnap, carrying valuable items, and emergency extraction; • Health: health and diseases prevention, vaccinations, carrying CONTRACTOR HEALTH AND SAFETY medically prescribed drugs through customs; Rotana’s commitment to the protection of occupational health • Possible natural disasters and emergencies; and safety goes beyond our colleagues, to all our visitors, • Medical Emergencies: first aid, medical response and medical vendors, and contract workers. All Rotana hotels in all locations insurance information; are required to be held responsible for complying with the same safety and health requirements as our colleagues, beginning • Socio-cultural and work environment and legal requirements, with a pre-qualification process before granting contracts including but not limited to: climate, minimum dress for work, and gathering information on satisfactory training requirements, driving requirements, local transportation, food and qualifications. For a non-Rotana colleague (contractor) varieties and availability of halal food, alcohol, tobacco and conducting work in our hotels, before actual work begins, formal others. safety inductions are conducted to address potential hazards An International Travel Risk checklist is used and signed and controls related to their work. The EHS manager in charge in by the travelling colleague for each country’s risk control each hotel monitors safety performance throughout the contract recommendation. term and conducts safety reviews to ensure proper behaviour, training, and inspections. SAFETY OF COLLEAGUES WITH SPECIAL NEEDS Any contractor incidents are also reported in the Rotana online All new colleagues are required to complete the employment Global Incident Reporting system including any injuries and near Medical Special Needs questionnaire to identify any specific misses. needs of the person to be employed. Based on the screening information, reasonable adjustments are made in the colleague’s workplace and responsibilities to ensure the prevention and reduction of occupational incidents.
57 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Energy
Water
Waste
Our Environment
58 Our Environment
We understand the fundamental importance of managing our impact on the environment as our business relies on natural resources mainly energy and water. We seek to operate responsibly to minimise our environmental footprint across our hotels.
OUR COMMITMENT • We will manage our operations in a manner that protects our valuable natural resources and prevents pollution of the environment, in compliance with environmental laws; • We will minimise our impact on climate change and reduce our consumption of energy and water by optimising operational efficiency, procuring locally and adopting clean technologies; • We will optimise material consumption and reduce waste to landfill by reusing and recycling natural resources and materials; 2020 GOALS SCORECARD Rotana 2020 Progress towards Goal achieving our goals Reduce global energy use (kwH/guest) q 10%
Reduce global water use (cbm/guest) q 25%
Reduce global general waste (kg/guest) q 25%
Increase global recyclable waste (kg/guest) p 20% Increase ISO 14001 certified hotels p 40%
59 Rotana Corporate Sustainability Report 2017
Our Actions
ENVIRONMENTAL MANAGEMENT ENVIRONMENTAL INVESTMENTS The implementation of our Environment Management System For the moment, we do not specify a budget for capital projects (EMS), as part of our EHS management system continues to related to protecting the environment. increase throughout our hotels and has translated into reduced However our hotels do allocate expenditure for environmental costs through operating efficiency, improved environmental purposes at new and existing hotels which are being constructed compliance, reduced monitoring costs, reduced energy and or renovated including: waste disposal costs, and increased colleague participation in • Energy efficient lighting our environmental programmes. • Waste water treatment plant improvements EHS is also enhancing our sustainability image, which in turn has • Building management system strong financial benefits for our business. • Water savers Our approach calls for each hotel to establish, implement, and • Energy audits maintain documented environmental objectives and targets. • Chillers changing When establishing an EMS plan, each hotel must address financial, technological, operational, and business considerations. • Energy efficient equipment The objectives and targets should be measurable and consistent • Waste composting /digesters machines with our environmental policy, including our commitments to • Solar panels installation prevent pollution and be compliant with applicable regulations and other requirements to which we subscribe. Rotana’s multifaceted strategy for implementing environmental 71% of the management systems and global auditing of environmental practices for our operations is key to understanding any lighting in our potential gaps and addressing these quickly. As part of the hotels are highly EHS management system, hotels are required to develop management programmes detailing actions required by each efficient. department to achieve the hotels’ set targets.
77% of our operating hotels have ENVIRONMENTAL SITE ASSESSMENT implemented the Environment, Health and Safety Rotana has developed a checklist for environmental site management system. assessments of new hotel locations with the goal of identifying potential environmental impact. As a result of the assessments, APPLYING ISO 14001 we identify areas with high-value biodiversity and wetland areas such as beaches, creeks and potential wetlands that are ISO 14001 is an international standard that provides an on or near the location. As much as possible, we try to offset organisation with a set of standardised requirements for the damage caused to local fauna and flora by planting trees, environmental management systems. In 2015, Rotana worked participating in animal conservation programmes. on developing and implementing the ISO 14001 system. As of the end of 2017, 19 hotels successfully completed certification to the ISO 14001: 2005 standard and 1 hotel to the new version of the standard 14005: 2015. Additional locations will undergo the certification audit over the next two years. We are targeting to have 50% of our hotels ISO certified by the end of 2020. Hotels that are currently certified account for approximately 37% of Rotana’s total operating hotels.
20 of our UAE hotels are ISO 14001 certified on the management
system, accounting The turtle conservation programme, at Saadiyat Rotana for approximately Resort and Villas Abu Dhabi: ensures the critically 37% of Rotana’s total endangered hawksbill sea turtles continue to nest on the destination’s beachfront by locating conserving the the operating hotels. season’s nests.
60 ENVIRONMENTAL INCIDENT MANAGEMENT • Aligns the company energy and water targets with tariff increases and changes. Since 2016, all Rotana locations are globally required to internally report on environmental incidents, and regulatory authority In 2015, utility expenses as a percentage of room revenue notices and fines through an online incident reporting system. represented an increase of 3% as compared to 2014, and will This includes: approach an average of 5.1% percent of total hotel revenue. We • Exceedances: emissions or other environmental parameters estimate that this percentage will continue to increase by 11% in above permitted or allowable regulatory levels. our GCC hotels raising average utility expenses as a percentage of room revenue to 5.6% by 2020. The estimate is influenced • Significant spills: spills that are above a designated risk-level by and will vary according to fluctuating business volume, based on an internally set company set volume parameters occupancy, average room rate and increased energy and water and thresholds. Only 1 minor chemical spill was reported in tariffs in each GCC country. one of our hotels in the UAE and was dealt with effectively. • Although the utility tariffs in various countries have increased, • Regulatory warnings: received by Rotana hotel for alleged we have achieved in 2017 a 4.5% reduction in energy cost per deviations from an environmental regulatory or permitting occupied room from 2016, a drop from USD 14.2 to USD 13.7; requirement. • We were also able to maintain the percentage of total utility • Fines: compensation paid by Rotana hotel to address and costs from total revenue at 7%, despite the higher utility administer fines or penalties imposed by an environmental tariffs; regulatory agency. Our online incident reporting has led to continuous Unit 2015 2016 2017 improvements including increased awareness of responsibilities and more consistent reporting throughout Rotana’s global Cost of utilities per occupied USD 14.18 14.34 13.72 operations. room Cost of utilities per available USD 10.32 10.05 9.59 FINANCIAL IMPLICATIONS AND RISKS DUE TO room CLIMATE CHANGE Cost of utilities of total revenue % 6.38 7.01 7.2 The global economy and Gulf Cooperation Council (GCC) region specifically have entered a new era: issues such as oil price, the over-consumption of finite natural resources, climate ENERGY AND EMISSIONS change, taxation, population growth and the associated increase in demand for water and energy are creating new challenges and The landmark Paris Climate Change Agreement was ratified in opportunities for both the private and public sector in the GCC. 2016 and leading countries have set out to implement their self- imposed national climate targets. Government leadership in the Oil revenues have decreased and the issue of water scarcity has countries where we operate have set new targets, increased or featured as a priority on the political agenda of GCC countries doubled utility tariffs. forcing them to embark on energy price reform in recent years, limit growth in energy consumption and support fiscal Since 2012, we have initiated close monitoring of our energy adjustments that are necessary in the current lower oil price consumption in our operations in order to better manage environment. Several countries have raised their energy and energy efficiency performance in our day-to-day operations. We water tariffs to double. make every effort to improve resource management across our operations by investing in new technologies, energy efficient It is essential for us to understand how the above listed ‘macro equipment, and the use of renewable energy. sustainability trends’ are already impacting our GCC business and how it will affect our organisation’s growth and revenue in We have set intensity reduction targets across our operations of the short, medium and long term. 10% by 2020, with 2012 being the baseline year. The targets are aggregated at the group level. Using a business impact matrix, we were able to assess and quantify the financial impact of our 2 main environmental risks, Energy 2016 2017 energy and water, which have a direct influence on our profit. To Consumption (KWH) complete our analysis in the absence of clear figures for energy and water price forecasts till 2020 in the GCC region, we used Fuel 4,454,759 4,057,297 a number of information sources from GCC and international organisations to help estimate future trend forecasts. Electricity 335,743,402 341,297,131 This work on forecasting key risks and implication on costs Heat 7,319,652 8,443,665 provided us with useful insight into the impact of water and Gas 224,833,376 252,525,228 energy over the next 5 years. It enables us to better manage our operations in several ways: Cooling 180,043,228 176,886,545 • Enables future planning decisions to be evidence based; Total energy 793,222,292 820,394,988 • Provides operational efficiency and significant costs savings consumption through investment in sustainability projects; • Evaluates and tracks sustainability implications over time;
61 Rotana Corporate Sustainability Report 2017
CONSERVATION EFFORTS AROUND OUR HOTELS Energy intensity A dedicated team in every property including the engineering kwh/guest by 8.5% leader, the EHS officer and managers are responsible for from 2013 baseline developing and implementing management programmes to achieve reduction targets annually, including actions like: q installation of LED lights, room management systems for lighting and air conditioning, system/heat pump and chiller upgrades/ optimisation. We continue to explore ways to achieve further reductions, such as sharing best practice with engineering teams Energy Intensity across our 2016 2017 company-wide to encourage achievement of energy saving operations (based on the goals. above energy sources) (kwh/guest)* • Guest room management system is installed in 74% of our hotels and controls the rooms lighting. Energy intensity 111 106 • 55% of our hotels have the guest rooms management system kwh/guest controlling both lighting and air conditioning in the rooms. Energy intensity 178 173 kwh/occupied room
*For energy and water calculation for 2016 and 2017, it excluded the hotels that opened on the same year of reporting as they did not complete a full year of Saadiyat Rotana Resort operation (7 hotels excluded in 2016 and 3 hotels in 2017) and Villas, Abu Dhabi: is an Estidama sustainability pearl 2 rated hotel. 300 OUR CARBON FOOTPRINT solar panels are installed to In 2016 and 2017, our operations generated a total of 394,942 heat the hotel water. A grey and 398,143 tonnes of direct CO2e respectively. Direct group water recycling project is carbon intensity was 110 kg of CO2e per occupied room, a 5% under implementation and reduction from 2016, which was 120 kg of CO2e per occupied 2 charging stations for Tesla room. Indirect carbon emissions and intensity have not been electric cars are installed. measured.
62 Water
Water is an essential commodity that has valuable application Rotana’s total water usage includes room guest use, cooling, pools, throughout our business, and we take care to use this resource recreation areas, kitchen cooking, cleaning and other miscellaneous efficiently. As a majority of our hotels are located in the Middle uses. Our water resources include municipality water and wells. East and Africa which are areas that are water-stressed or Water usage data is tracked and reported monthly through the water-scarce operating regions, we recognise that reducing monthly engineering report on sustainability data. We continue to water consumption in our operations is an important element improve our data accuracy through monitoring and measurement. of optimizing our environmental stewardship while trying to influence and inspire our stakeholders on the importance of Only 4 hotels treat their waste water using grey water recycling better water management. systems and on-site sewage treatment plants. To standardise our approach across our operations, we are working on publishing a bespoke water management guide, As a result of our improved to spur solutions and approaches to water use reduction. We water efficiency practices, the incorporated water management criteria that is part of the annual water intensity (litres/guest) has audit undertaken by the corporate director of engineering. decreased to 21.3% between 2013 All hotels are required to manage their water resources through and 2017. Our 2020 target is to understanding the balance of water use, compliance with achieve a 25% reduction on the regulatory requirements, effluent water discharge quality, 2013 baseline. conservation practices, and reporting usage. 2017 was another year of significant progress for Rotana’s water footprint. Much of this progress was attributed to consistent reduction initiatives. Water conservation efforts have Water Intensity (cbm/guest night) been achieved through water efficient product substitution, 1 improvements to our buildings, leak detection and reporting, addition of water savers on tap and shower heads, substitution of 1 laundry chemicals with low water consuming chemicals. 1 0.61 0.56 0.54 0.51
0 0.50 72% of taps are fitted with water savers. 57% showerheads use low flow features. 0
0
In conjunction with our efforts towards sustainability, we 0 have adopted in our laundry operation a high performance, sustainable approach, low temperature laundry chemical 0 by Ecolab, Aquanomics used in all UAE hotels. We have 2013 2014 2015 2016 2017 successfully tested the programme in 2016, and while the quality of our linen has remained stable, soft and white, we achieved the following saving Total Volume of Water Used (cbm) Trial Result – Overall Summary During the Laundry Trails at 3 Rotana properties, 3,500,000 the actuall average saving were as follws: 3,000,000
2,500,000 3,136,425 Water Energy Time 2,000,000 3,179,040 37% 23% 23% 2,577,557 2,603,949 1,500,000 2,588,605 2,440,775 2,330,023 1,000,000
And as we continue to grow globally, thoughtful consideration is 500,000 placed on the type of operations, hotels water treatment systems and availability of water sources. A company-wide focus on reuse 0 and internal recycling is placed for new hotels to further boost our 2011 2012 2013 2014 2015 2016 2017 reduction.
63 Rotana Corporate Sustainability Report 2017
Waste
Population growth has resulted in an increase in the amount 2016 2017 of waste generated, and with landfill space diminishing, the incentives for better waste management solutions have Total general waste tonnes 9,707 10,978 increased. This is a challenge faced by many of our markets, generated as inadequate waste management practices can be a concern Total waste recycled tonnes 790 1,032 to the environment and health of the community. Our hotels also proactively manage increasing regulation imposed by local Waste intensity kg/guest 1.83 1.87 governments in response to these waste issues. night The nature of our operations produces waste that needs to be effectively managed. It is important that we reduce and We are fundamentally committed to improving our efforts, but manage the waste that we produce, encouraging the concepts are often constrained by a lack of public awareness, country-wide of avoiding, reducing and recycling throughout the hotel infrastructure for reducing waste and the lack of recycling facilities operations. at some of our locations. We will continue to investigate our waste issues and understand how we can implement effective solutions. In 2014, we developed 4 waste management programmes to Moving forward, we know that lot of effort has already been better monitor and manage our waste. These include a waste invested: management programme, hazardous waste management programme, food waste management programme, and green • To increase the recyclables waste segregation from different office programme. The programmes are rolled out at all Rotana departmental operations in our hotels. properties. • To improve our waste monitoring methodologies to be more consistent and to ensure that data is robust and comparable The progress outside the UAE is slower owing to the lack across the hotels. of recyclables collection companies in certain countries of operation nevertheless continuous efforts are taken to reduce • To consider procurement decisions on waste product life- general waste generation. cycle including packaging parameters of new products. In 2016, our operations generated a total of 10,839 tonnes of general waste, with waste intensity decreasing by 18% from CHOOSE TO REUSE 2012. Annually our hotels As we progress towards the integration of sustainability generate many tonnes throughout our operations, we now have a better understanding of discarded linen of the context and challenges that we face. Our initial ambition and bed sheets. In was to reduce waste intensity (kg/guest) by 25%, with our waste 2016, a programme metrics showing dry waste, decreasing to around 18% from was developed in 2012 but recyclable waste intensity (kg/guest night) increasing collaboration with to 7% only from the 2013 baseline and 10% for total tonnes of Ecolab, our chemical segregated recyclables. As of end of 2016, we have achieved the provider: “Choose to following results: Reuse” aims to collect discarded linen from our operations in the UAE and donate it to Dar el Ber Society benefiting refugees and people in need. The collection is also sustainable as the Ecolab territory manager collects the linen while performing their regular servicing in order to minimise the carbon footprint. • We reduced our general The first collection was 125 kgs of linen collected from UAE waste disposal to landfill hotels and donated to the charitable organisation. (kg/guest) by 19.5% (vs. 2012 baseline). A drop from 2.35 kg/guest to 1.87 kgs.
• We increased our waste recycling and segregation (kg/guest) by 7.10% (vs. 2013 baseline).
64 FOOD WASTE Beach Rotana, Abu Dhabi saved USD 30,000 by cutting Food security and food waste is an especially important issue food waste by 40% in just a little over a year since the in the Middle East. Globally, 30–50% (or 1.2–2 billion tonnes) of implementation of Winnow smart scales. The technology all food produced is lost before reaching a human stomach. Food helped the team manage, measure and reduce food waste. waste is the most significant component of hospitality waste and This result is a demonstration that with the right tools, we recognise our role to reduce food waste in our hotels, much of commercial kitchens can effectively reduce their waste. which is preventable by better portioning, managing, storage and/ or preparation. To reduce and ensure the proper handling of food • Bech Rotana & Winnow have been working together to waste, we have initiated a number of measures: reduce food waste since November 2017 • Food waste costs your site AED 275,236/year* • Putting up cards on tables or signs next to buffet stations with inspirational quotes to encourage guests not to over-fill their AED 105K plates at the buffet or leave behind food waste on their plates. 40% food waste annualised reduction • Having an efficient RSVP system in place for meal reservations saving at the restaurants serving buffets. High team Donating unserved leftover food from the buffet to charity 10t of waste/42t engagment with programmes like UAE’s Red Crescent “Hifth al Ne’mah” of CO2e saved annually average (or) 24,250 of meals and Saudi Arabia’s “Itaam “programmes at the end of meal categorisation saved annaually service. rate of >[95]% • Providing less food variety during the buffet meal or coffee breaks (such as in conferences, events, etc.). The Cove • Increasing the period of time between coffee breaks and meal Rotana times for full day events (e.g., conferences, workshops, etc.) Resort has which include coffee breaks and lunch buffets. strengthened • Offering guests a take-away option, where they can put the its leftovers from their plates to take home with them. In cases of commitment event buffets (e.g., weddings, etc) guests can also be offered the to the takeaway option and be allowed to take food at the end of the environment event. by acquiring • We have also installed food composting and food digesting a machine to machines in 3 hotels. decompose waste food. 7 of our hotels in Saudi Arabia, Jordan, Sudan, It has a capacity of 270 kg of daily food waste input, treating Iraq, Oman and Lebanon, have partnered with around 95 tonnes of food waste/year, 390 tonnes diverted various organisations and food banks to donate the from the landfill every year. The output is grey water that is excess food prepared in our hotels to charitable environmentally safe and that goes down the drain. organisations and labour camps. The Cove Rotana Resort has reached a major environmental Rosh Rayhaan by Rotana, milestone by adopting a new recycling programme and KSA General Manager initiatives to improve the waste diversion rate and engage signed an agreement with more hotel guests. Colour coded trash bins are distributed all the “Itaam” Saudi food bank over the resort for guest awareness. Food and organic waste CEO. Itaam is a year-round is decomposed using the automatic composting machine. In charitable organisations addition, the hotel appoints a “Captain Green” – a colleague that collects quality meals who is in charge of segregating recyclables wastes. As a result with the help of regular of various practices, in 2016 the hotel recycled: employees and volunteers • 11.5 tonnes of cans and delivers them to • 13.7 tonnes of plastic beneficiaries recommended • 21.5 tonnes of cartons by charitable organisations. • 26 tonnes glass bottles • Food waste composted 99 tonnes
65 Rotana Corporate Sustainability Report 2017
IN THIS SECTION
Community Outreach
Nationalisation
Communities
66 Our Communities
The communities in which we operate provide the resources, infrastructure and markets that support our businesses. It is our responsibility and to our mutual benefit to contribute to and seek to enhance these. Our various social responsibility and community engagement programmes have made meaningful contributions to the communities in the countries where we operate. Till the end of 2017, 1,352 activities were implemented in our hotels and 78,531 volunteering hours were contributed by our colleagues by engaging more with our communities and responding to their needs in a strategic, relevant and focused way. Our total contribution to local communities reached USD 2 million.
OUR COMMITMENT • We will instil a culture of sustainability through education and promotion of sustainability values and principles within our local community. • We will contribute to the society we work and live in by supporting local community needs and promoting sustainability and the cultural values of our society. • We will contribute to local and national economic development through local employment and the promotion and growth of sustainable tourism. OUR FOCUS AND KEY ACHIEVEMENTS Community Outreach Our colleagues have contributed with 78,531 volunteering hours to the community till the end of 2017.
To date, our colleagues have participated in 1,352 community engagement activities since 2012.
2,740 colleagues have donated 812 litres of blood during 74 blood donations campaigns;
64.4% of our activities have supported health and well being causes, 20.4% environmental causes and 7% supporting human rights issues.
In the last 2 years, 274 organisations have benefited from our contributions, 202 of those in the UAE.
In 2016, we increased the total value of our contributions in the form of cash, in kind, colleagues volunteering and fund raising by 4% vs 2015.
67 Rotana Corporate Sustainability Report 2017
Supporting local communities $792M Economic Value generated Workforce development: 1,915 new job op- portunities created in new openings during the Suppliers We source goods and services from more than 5,000 reporting year. companies globally.
Colleagues Local employment: 80% of our colleagues in We provide direct employment to around 12,800 people non-GCC countries are recruited from the local across the region. country’s workforce. 547 (5% of total workforce) are senior managers (General Managers and Capital Providers We pay finance costs to our owners and aim to achieve grade 1 department head positions). long-term growth and value for our shareholders. $600M 42% of products governed by corporate agree- ments or corporate price understanding are Governments We contribute to economies around the world through the manufactured or packaged locally in the UAE. taxes and government fees we pay.
Communities USD 520 million was paid during 2016 and 2017 We support efforts to increase local incomes and improve to our suppliers and contactors in the countries standards of living. where we operate, contributing to boosting $192 M Economic Value retained their country’s local economy.
Community Outreach
Our hotels partner with governments, national and local organisations in the country of operation to improving health, Our total contribution on community youth and child education and development, support of poverty programmes in the last 2 years was and people in need, projects in developing countries, promoting USD 0.5 million (2016 USD 368,000, health care, supporting children with certain sicknesses, people 2017 USD 185,000) as a result with certain disabilities and their reintegration in the society, as of colleague volunteering hours, well as international aid and development including disaster relief. fundraising, in-kind donations and cash contributions.
Over the last two years, Rotana’s community initiatives have Total Activities expanded even more to touch the lives of hundreds of people 1,600 through year- round community engagement programmes, 1,400 1,352 fundraising initiatives and other activities. We reach out to the 1,200 communities in which we work and live, helping numerous healthcare, educational, environmental and charitable efforts to 1,000 enrich our lives and the lives of others. We have a vision to work 800 for the greater good outside of our daily activities - it is in our 600 culture to contribute and give back to society. 400 325 195 165 231 225 211 200 In 2016 and 2017, our colleagues across 0 all operations contributed 23,501 2012 2013 2014 2015 2016 2017 Total volunteering hours of community service. The percentage of participating Total CSR Activities reported colleagues in 2017 was 27.1%.
68 Unit 2014 2015 2016 2017 Total activities reported # 273 231 225 211 In kind contribution value USD 157,269 151,951 52,343 80,018 Cash contributions USD 149,715 96,631 216,163 93,085 Total monetary contributions USD 312,448 259,073 269,099 13,127 Colleagues volunteering hours Hours 29,813 13,240 10,374 91,894 Colleagues volunteering hours value USD 215,061 95,990 98,553 184,979 Total contribution USD 527,510 355,063 367,652 50 Total activities/campaigns involving guests # 123 65 35 1.1 Average volunteering hours per colleague Hours 2.7 1.05 0.8 1.1
Our colleagues lead many community initiatives, identifying where economic and cultural development of our communities. We have help is most needed. We volunteer and aim to inspire. adopted the following three focus categories as key areas for our global social contribution and will align our corporate and hotels This includes community volunteering schemes such as related activities accordingly: fundraising, providing education and development services, as well as participating in charity runs and challenges. 1. Quality education 2. Good health and wellbeing 3. Climate action More than 436 community activities were Consequently, starting from 2018, Rotana will implement 3 key implemented in our hotels in the last 2 years, corporate programmes tailored to the above selected social benefiting 274 organisations. contribution areas. In parallel, all operating hotels will support these programmes by setting their activities plan around them, while According to the United Nations Development Programme (UNDP) locally designing and customising programmes and activities to survey, the top-five global social issues included education, health address other local community pending issues and needs in the and well-being, responsible government, employment, clean water countries where we operate. and sanitation issues. This calls on international organisations and Corporate partnerships, KPIs setting, close monitoring and governments alike to address these issues. reporting on performed activities will underpin the implementation Under these circumstances, we at Rotana will fulfil our of these 3 programmes. responsibility by focusing on and investing in the categories with high global urgency, applicability and relevance to our business and values. 2,740 colleagues have As a result of conducting an analysis of Rotana’s core activities and donated 812 litres of blood global social issues, we recognise the need to collectively focus our during 74 blood donation corporate and hotels contribution programmes to 3 of the United campaigns in the last 4 years. Nations Sustainable Development Goals to support the social,
Ensure healty lives and promote wellbeing for all at all ages
Ensure inclusive and equitable quality education and promote lifelong learning opportunites for all
Take urgent action to combat climate change and its impacts
69 Rotana Corporate Sustainability Report 2017
Gefinor Rotana, Lebnaon has participated in the national Total Hotels Contribution (USD) youth service week done at a school in Lebanon and the EHS manager delivered a food safety session to the students. 3,000,000 1,982,649 2,000,000
1,000,000 527,510 367,652 355,063 297,445 250,000 184,979
0
2012 2013 2014 2015 2016 2017 Total
Supported Causes (#)
80% 64.4 60% 60.17 50
40% 31.20 30.3 20.4 20% 18.75 7.1 3.89 0% 78,531 volunteering hours to the Health & Environmental Human community Wellbeing (%) (%) Rights (%) 1,352 community’s engaging activities 2014 2015 2016
Colleagues Volunteering Hours Benefiting Organisations (#)
100,000 250 78,531 200 289
150
50,000 150 29,813 100 81 11,977 13,240 13,127 50 78 67
10,374 63 58 47 45 0 0 2013 2014 2015 2016 2017 Total UAE Total Organisations Organisations
Volunteering hours 2014 2015 2016 2017 Total
70 360 colleagues donated 127.45 litres of blood The following is just a glance on some of our activities. To know more, please check rotanaearth.com
28 hotels participated in the earth hour campaign
WORLD CANCER DAY On this year’s occasion of World Cancer Day, Raouché Arjaan by Rotana hosted a fun day for the children of the Children’s Cancer Centre Beirut. The children were thrilled in painting on bottles, making flowers and bracelets and participating in the animation when Jerry the mouse came along and took a picture with each and every child.
EARTH HOUR On the 19th of March 2016, Rotana celebrated EARTH HOUR. Several Rotana hotels in the region dimmed down lights or switched off non-essential lights for one hour to help raise awareness on climate change. Hotel guests were also invited to participate in this initiative by switching off lights in their rooms.
WALK FOR LIFE WITH ROTANA Rotana hotels in Abu Dhabi and Al Ain successfully hosted the Walk for LIFE 2015 in collaboration with Sheikh Khalifa Medical City (SKMC), to raise awareness about diabetes and walk together “towards a healthy lifestyle”. Colleagues from Abu Dhabi and Al Ain Rotana along with Sheikh Khalifa Medical City’s staff walked hand in hand from Khalidiya Palace Rayhaan by Rotana to the Heritage Village (UAE flag) and back. The 350 enthusiastic participants were happy to share this experience and support a great cause. Afterwards, participants and guests did the blood sugar testing and spoke, on the spot, with medical experts on different ways to treat and prevent diabetes.
71 Rotana Corporate Sustainability Report 2017
BLOOD DONATION DRIVE JUMEIRA ROTANA AND VILLA ROTANA Jumeira Rotana and Villa Rotana in collaboration with Dubai Blood Donation Centre organised a blood donation drive under the slogan of “Save Life, Give Blood” as part of reassuring their commitment towards the community. The campaign raised awareness and resulted in gathering more than 30 colleagues who had the courage to be a blood donor from different departments from the two hotels.
ZAKAT PROJECT BY PARK ROTANA Park Rotana Abu Dhabi launched the project Zakat this Ramadan, aimed at extending help to workers in two of the Abu Dhabi labour camps. The drive called for hotel colleagues to donate basic food items like rice, lentils, oil, canned food and biscuits; as well as other living essentials such as toiletries, linen, kitchen items, shoes and clothes.
WORLD OCEANS DAY Jumeira Rotana and Villa Rotana, in partnership with Dubai Municipality, Emirates Marine Environmental Group (EMEG) and in collaboration with the Filipino Scuba Divers Club, did an underwater clean-up at the Jebel Ali Marine Sanctuary. This initiative was done to protect and preserve one of the world’s most valuable resources on the World Ocean’s Day 2016.
BATTLE OF THE BOTTLES Khalidiya Palace Rayhaan by Rotana organised the “Battle of the Bottles” boat race. This event was organised to mark the Earth Day - a unique and worldwide event in which environmental protection and awareness of climate change is highlighted to citizens around the world. All Rotana hotels in Abu Dhabi and Al Ain participated with their own innovative recycled boats and made a splash by the beach side of the Arabian Gulf during the boat race. A Maori Haka Dance competition and the Mr. Neptune and Ms. Mermaid pageant was also held, and they scored points for design, innovation and use of recycled materials in their costumes.
72 WORLD ENVIRONMENT DAY CELEBRATIONS AT PARK ROTANA Park Rotana Abu Dhabi in association with Brighton College Abu Dhabi organised a Children’s Art Fair for the second year running, as part of the World Environment Day celebrations. The exhibition was held at the hotel whereby Pre-Prep students showcased twelve wonderfully ingenious pieces of art all made from recyclable items. Under the umbrella theme “Join the race to make the world a better place,” the different items represented a myriad of themes such as, “First line sea defenders”, “Floating Island”, “Polar decline, race against time” and “The Domino Effect”. All the pieces aimed to raise awareness on the importance of issues including waste management, environmental conservation, marine protection and climate change.
COLLABORATING WITH GOVERNMENTS AUTHORITIES
WORLD WATER DAY Centro Capital Centre, Abu Dhabi in collaboration with Abu Dhabi Distribution Company (ADDC), Agthia Group and Abu Dhabi Refreshments Company (Pepsi) celebrated World Water Day 2016, by giving an awareness session about water conservation, water and energy and sustainability. Afterwards, the Colleagues Welfare Committee of Centro Capital Centre distributed 2,000 Al Ain water bottles to municipality and construction workers.
ROTANA SUPPORTS THE ENVIRONMENT AGENCY ABU DHABI Rotana proudly supports The Environment Agency - Abu Dhabi (EAD) in their campaign #MyGreenResolution. EAD is committed to protecting and enhancing air quality, groundwater as well as the biodiversity of our desert and marine ecosystem. The #MyGreenResolution campaign consists of triggering staff, thinkers, scientists, students at universities and schools, as well as the broader public to post their environmentally-sound New Year’s resolutions on EAD’s social media channels.
WORLD CHILDREN’S DAY In celebration of World Children’s Day, Jumeira Rotana and Villa Rotana hosted a fun day with a group of children and women from the Dubai Foundation for Women and Children (DFWAC). In collaboration with DFWAC representatives, the 3 hour event was filled with fun activities and exciting games, followed by a sumptuous feast of freshly prepared food and gift-giving.
WALK FOR LIFE WITH ROTANA In 2016 Khalidiya Palace Rayhaan by Rotana, Beach Rotana and Park Rotana in collaboration with Sheikh Khalifa Medical City (SKMC) organised the ‘Walk for LIFE with Rotana’. This special diabetes prevention event was held to raise the public awareness about diabetes and deliver a message of wellness and health.
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DUBAI AUTISM CENTRE DAY Villa Rotana joined hands by organising and hosting a fun day for the children of the Dubai Autism Centre. A total of around 30 children were treated to an exciting and fun-filled day at Villa Rotana. The event featured fun games for the students with prizes, face painting, a magic show and other games, and was followed by a special lunch buffet.
HELPING NEPAL Villa Rotana took a step forward and initiated an internal fund raising campaign that benefited all 17 Nepalese colleagues from the 3 hotels and also conducted a clothes donation campaign in partnership with Emirates Red Crescent. The campaign had participation from all colleagues at the 3 hotels which generated an amount of AED 5,000 and 21 boxes of new, used clothes and linens from the hotels.
MAKE A DIFFERENCE DAY Beach Rotana Abu Dhabi in collaboration with EWS-WWF created an ‘edutaining’ journey through time for kids. The event was designed as a time travel adventure through Abu Dhabi’s past, present and future, and the little explorers were entertained in 3 different areas with several activities; all connected to the history, culture and future of our home, Abu Dhabi. With the AED 100,000 collected, the Beach Rotana supported EWS – WWF’s “Gulf Green Turtle Conservation Initiative” and adopt a turtle to further ensure the protection of marine species and critical habitats in the UAE.
AUTISM SPEAKS AT PARK ROTANA ABU DHABI In efforts to shed the light on autism and spread more awareness on this disorder that develops in the children’s ROTANA CELEBRATES EARTH DAY early years, Park Rotana Abu Dhabi hosted students from Earth Day was first celebrated on the 22nd of April 1970. the ‘Special Care Centre’ for a fun morning of games and The event was created to make people aware of the magic. The children participated in a host of special activities importance of protecting our environment. Rotana hotels such as face painting, balloon bending and a puzzle fixing celebrated Earth Day this year by organising the following session where they put together the alphabets forming the activities including: clean up campaigns to support, protect, word, ‘Park Rotana’ with the assistance of the team at the and nurture the environment, workshops highlighting the hotel and their teachers. The significance of the puzzle in the significance of Earth Day and to increase awareness about world of autism has become multi-faceted as it represents environmental protection, selected Rotana hotels offered the mystery and complexity of this disorder. Following these green Earth Day menus, drinks and cookies by using as well activities, the kids enjoyed a live magic show where they special organic products, planting activities, and Khalidiya were enthralled by the magician who had many tricks up his Palace Rayhaan by Rotana in Abu Dhabi hosted again “The sleeve. Battle of the Bottles”.
74 COMMUNITY INVESTMENT Number of Internships We seek to make meaningful community investments that meet local needs and align with our business activities. 1,500 We aim to deliver sustainable socio-economic development in the country. The focus of our social investment programme includes building local capability in education and hotel management. Since we launched the internship programmes, we have worked with various universities to take students on internship aimed at getting more young people interested in 1,000 1,177 careers in the hospitality sector.
In 2016 and 2017 we had 401 interns in our hotels.
500 238 232 224 169 158 0 156
2012 2013 2014 2015 2016 2017 Total
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Supporting Local Communities
As the leading hotel management company in the Middle East the private sector and offering them increased opportunities and Africa, we strongly believe that by doing more to nurture in the hotel industry. It also supports the initiatives undertaken local talent and nationalisation within the hospitality industry, by the respective governments towards implementing their we will grow from strength to strength. Our Gulf Cooperation nationalisation programme. By offering a healthy work Council nationalisation programme ‘Duroob’ gives us the environment, best practice training and extensive colleague drive to recruit nationals and to contribute to the community development, we support each GCC national’s successful career in which we operate, by developing them, integrating them in for the future and promise to make it a rewarding one.
Duroob
Unit 2012 2013 2014 2015 2016 2017 Number of Duroob programme participants # 147 212 315 432 394 423 Percentage of senior nationals who are managers % 2 2 2 2 2.5 2.1
84.3% of our colleagues in non-GCC We employed 1,915 new colleagues countries are recruited from the local across our new hotels openings in country’s workforce 2016 and 2017.
76 It is common practice for Rotana hotels to give preference for local employment in each country of operation: WHY ROTANA • The majority of our colleagues in all our non-GCC hotels are nationals. • As for countries outside the GCC, we also support local economies by creating employment and stimulating economic activity. New jobs are created in various countries for the locals to further boost their life quality. The number of Egyptians working in our hotels in Egypt in 2017 constituted around 96% of total colleagues, in Iraq, the Iraqis employed at Rotana hotels increased from 28% to the percentage of 45% in 2016.
“Rotana takes pride in the local customs and traditions, making it a leading hospitality brand within the GCC region. My colleagues respect and treat me with dignity, creating a more comfortable and secure workplace.”
Khalid Al Balushi (Omani) Government Relations Officer Al Maha Arjaan by Rotana
Local Employement
120%
100%
80%
60%
40%
20%
0% Egyptians, Iraqis, Lebanese, Sudanese, Syrians, Non-GCC Working Working Working Working Working Countries in Egypt in Erbil in Lebanon in Sudan in Syria Local Employees
2013 2014 2015 2016 2017
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IN THIS SECTION
Responsible Supply Chain
Local Supply
Supply Chain
78 Supply Chain
Since Rotana is a hospitality service industry operator, our supply chain is comprised primarily of tens of thousands of suppliers of products and services required to serve our guests across our many properties. We maintain a complex inflow of diverse goods and services ranging from furniture and fittings, food and beverages, equipment, transportation, IT, communications and other technology support systems. Our supply base is local to the country of operation and in few cases, directly imported. A thorough understanding of our supply chain enables us to create value for suppliers and our community at large. Wherever we source products, we believe the workers that have produced them, the communities living near the sourcing locations and the environment around it should not be negatively impacted. We want to ensure that there is no link between our business activities and adverse environmental and social impacts through our business relationships. We take a holistic approach to managing these supply chain risks. This includes the development and implementation of the Rotana Code of Responsible Purchasing and continuous monitoring to evaluate compliance and manage foreseeable risks and social impact from our supply chains.
OUR COMMITMENT • We will address sustainability issues in our supply chains, with the goal of minimising the negative environmental and social impacts of our procurement decisions whilst meeting our financial and quality requirements; • We will assign preference to locally sourced products and from sustainable sources in order to support local communities and environment. OUR FOCUS AND KEY ACHIEVEMENTS Responsible Supply Chain In 2017, we issued the Rotana Code of Respon- sible Purchasing. It details Rotana’s expectations regarding the minimum responsible, environ- mental and sustainable business conduct of our supply chain partners. 61 corporate agreements were signed with 56 companies resulting in an annual saving of USD 2.36 million, an increase of 15% in 2016 vs 2015 (USD 2.02 million in 2015).
26% of all food and beverage, linen and general procurements are governed by corporate agree- ments, an increase of 2% year on year (2014: 22%, 2015 : 24%, 2016 : 26%).
We have launched a Supplier Satisfaction Survey to assess Rotana’s collaboration, responsiveness and relation as experienced and perceived by our suppliers. The survey will help us to ensure a sustainable partnership with our suppliers.
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A seafood survey is sent to all hotels to identify Local Supply and gradually substitute/ remove 8 critically endangered seafood species from our FandB 42% of products governed by corporate offerings (in 2016 around 5.5 tonnes were agreements or corporate price understanding purchased). Shark fin is not used in any FandB are manufactured or packaged locally in the recipe group-wide. UAE (i.e. bottled water, mattresses and linens, dairy products…) The remainder of the 58% of 637 on-site audits of FandB suppliers have been suppliers provide us with varieties of food and conducted in UAE, Bahrain, Qatar, KSA, Leba- beverage items form from Europe, Australia and non and Oman for compliance with quality and the Middle East. safety standards. 31 suppliers were rejected and removed from our approved suppliers list for USD 520 million was paid in 2016 and 2017 to non-compliance with our requirements. our suppliers and contactors in the countries where we operate, contributing to boost their countries’ local economy. This includes the significant locations in which we operate such as the GCC region.
Responsible Supply Chain
Given the nature of our business and our desire to maintain The Lavazza coffee we use is Rainforest Alliance high standards, a significant portion of our impact lies in the Certified™; grown and harvested on farms, products that we purchase. Where possible, we aim to procure forests, and businesses that meet rigorous from local and sustainable sources so that we are empowering environmental and social standards. local communities, preserving ecological diversity within the natural environment, and reducing our indirect carbon and Dilmah Tea we purchase is sourced from water footprints. To achieve these aims, we developed and certified sustainable sources. issued a Code of Responsible Procurement detailing Rotana’s expectations regarding the minimum responsible and sustainable business conduct of supply chain partners. This helps to mitigate 100% of A4 papers used in our UAE hotels are supply chain risks within our sphere of influence. The code totally made from recycled materials (81% of is integrated within our purchasing policy and elements of group A4 consumption). Certified sustainable this code are included as part of our purchasing Request for papers will be gradually used in all hotels outside Proposals (RFPs) and in procurement contracts in all operations the UAE. across the hotels. Ecolab cleaning products used in our operations Rotana also acts to support the wellbeing of supplier are manufactured sustainably and many communities through ethically sourced products. We have products are eco labelled and biodegradable. signed a corporate agreement with Lavazza coffee, Rainforest Alliance Certified™; grown and harvested on farms, forests, 95% of rooms mini bar items packaging can be and businesses that meet rigorous environmental and social recycled (glass jars, cans, plastic...). standards. While it was an initial challenge to procure Fairtrade certified tea due to a general lack of certified products in the market, we hope to launch these lines of teas in 2018. We have introduced Several general items used in large quantities in our hotels were the Dilmah Tea sourced from certified sustainable sources. We replaced with eco-friendly items, made of recycled materials refer to certified as those receiving certification from recognised and biodegradable plastic (Centro brand packaging, Rotana bags, standards such as Rainforest Alliance certified and other laundry plastic covers, and Rotana gift paper wrapping). certifications accepted by local counterparts.
80 Biodegradable Rotana brown 100% recycled kraft paper shopping bags and plastic garbage 100% recyclable rotana brown wrapping paper. and dust bin bags and Biodegradable plastic laundry cover.
Carton packaging substitution with oxy biodegradable shrink wrap of corporate supplier water bottles to reduce the cardboard waste.
Our Centro brand c.deli packaging were substituted with eco-friendly packaging brand Colpac, advocating the use of environmentally friendly packaging materials, and sending 100% of their board waste to be recycled.
11 of our hotels have a garden to grow some of their own herbs and vegetables to be used in food preparation.
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MATERIALS CONSUMPTION USED FRYING OIL The hospitality business involves usage of perishable products In 2015, a corporate agreement with Lootah Biofuels was signed like grocery, meat, fish, poultry, vegetables, fruits, milk and for the collection of used frying oil from all our hotel properties milk products, which make up a large extent of materials used. in the UAE. The company produces biodiesel from used cooking More than 70% of the total material consumption is attributed oil in the most efficient and sustainable way to deliver economic to these perishable products. Such products have a low-shelf value and environmental benefit. All our restaurants in the UAE life and hence have to be stored at optimum levels in order to and outside the UAE (wherever oil recycling companies are reduce wastage. In our hotels we consume a significant amount available) have participated in the used cooking oil recycling of paper, printer cartridges, check-out folios, guest folios, programme by providing it to local vendors, hence diverting beside rooms’ amenities, key cards, laundry bags, slippers, waste cooking oil from landfill and preventing harmful liquid housekeeping products, and laundry and stewarding products waste from contaminating local groundwater supplies. that involve usage of solid and liquid chemicals. We realise the potential environmental impacts of our material footprint and have deployed initiatives to measure, monitor and optimise consumption. Forestry that is managed poorly 100% of A4 paper used in UAE hotels are totally made from has catastrophic environmental and socio-economic impacts. recycled materials (81% of group A4 consumption). Certified Uncontrolled deforestation in the paper and timber industry sustainable paper will be gradually used in all our hotels supply chain is a significant global issue. To reduce our use of outside UAE. paper and paper products, we currently have forms placed on our portal to be completed online to avoid printing and we are continuously focusing on identifying administrative and control processes to redesign and enhance our efficiency with the development of technology e-procedures implementation to significantly reduce paper use. We have started to measure the paper we utilise for printing, copying, offices, collateral we buy and to review how we can ensure that our operational needs are not met at the expense of exploiting the world’s finite and high-conservation value forest resources. In line with our Green Office Programme, all of our UAE hotels have shifted to A4 office paper made from post-consumer recycled materials.
Canon Smart printing solution In 2016, Rotana has received the Canon CSR award for adopting the smart printing solution in all our UAE hotels.
In 2016 and 2017, we converted 190,000 litres of our kitchen used frying oil to biodiesel
Glass jars Our guest room mini bar items are placed in glass jars. Annually, over 200,000 glass jars (approx. Up until the end of 2017, 637 on-site audits of FandB 2,000 kg of glass) are delivered to suppliers had been conducted in the UAE, Bahrain, our hotels. In 2016, the contract Qatar, KSA, Lebanon and Oman for compliance was renewed by adding mandatory re-collection of empty glass jars against Rotana’s quality and safety standards. 31 from UAE hotels for reuse by the suppliers were rejected and removed from our supplier. We are expecting to reuse approved suppliers list for noncompliance with our 70% of the glass jars. requirements.
82 SUPPLIERS SATISFACTION SURVEY implemented in 2008. The pre-qualification and physical In order to further improve our partnerships with our suppliers assessment of the suppliers is carried out in line with the and develop our internal and external processes in the supply guidelines provided by the local Food Control Authority. chain network, we have developed and launched a satisfaction Rotana’s preference is to have HACCP/food safety certified survey to measure our suppliers’ satisfaction level in doing suppliers or suppliers approved based on their internal quality business with and communicating with Rotana. The results of assurance programme. We have a programme to visit and the survey will help us to improve our procurement department audit all our food and beverage (F&B) suppliers to assess their operations, such as by speeding up purchase order issuance and environmental sustainability against a set of criteria, the results delivering the results of acceptance inspections. Survey results of which would be considered when making decisions on will be shared in our subsequent Sustainability Report. preferred suppliers to be used. Following the launch of the Rotana Responsible Procurement SUPPLIER ASSESSMENT Code in 2017, Rotana will start surveying its major suppliers In order to ensure the highest safety and quality of food and via a self-assessment questionnaire which assesses their beverage products, a supplier qualification programme was environmental, labour, social and human rights practices as well as their compliance with the code.
Unit 2011 2012 2013 2014 2015 2016 2017 Number of F&B suppliers audits # 22 40 73 74 66 120 104 Average achieved audit score % 74 71 72 70 71 72 75 Number of rejected F&B suppliers (scored < 60%) % 0 2 2 10 6 6 6
Local supply
We contribute to the growth of local businesses in the regions • 42% of products governed by corporate agreements or where we operate. Over the past few years, we have become corporate price understanding are manufactured or packaged more aware of the environmental and social impact of the locally in the UAE. products that we select and use from our suppliers. We are also • USD 520 million was paid in the last 2 years to our suppliers more conscious about making a commitment to developing and contactors in the countries where we operate, local markets in the countries in which we operate, through contributing to boosting that country’s local economy. collaboration with local suppliers and contractors and through the purchase of locally produced supplies. Among the supplies where we have shifted to locally produced products are dairy products, fruits and vegetables, fish, eggs, and We support local businesses and we mainly deal with locally collateral printing services, rooms’ amenities, mattresses, and registered suppliers in the base country. However, due to bottled water. These changes have mostly occurred in the GCC circumstantial exceptions, approximately 10% of our suppliers countries in which we operate. do not have a local presence and therefore goods are imported directly.
Unit 2012 2013 2014 2015 2016 2017 Payments to locally registered suppliers/ USD/ 183.4 198 206 218 237 283.12 contractors Million
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Appendix A: Sustainability Reporting GRI Standards Content Index
In developing this report, we followed the Standard Disclosures from the GRI Standards, Core Option (launched in November 2016). Details of the GRI Standards can be found at www.globalreporting.org/standards. 7th sense sustainability was commissioned to conduct a verification of this report and to provide an independent opinion on whether the reported information complies with the Standard Disclosures of the GRI Standards.
GRI Standard Page Number, Direct Answer, Cross-Reference (Hyperlinks) GRI 102: GENERAL DISCLOSURES 1. Organisational profile Disclosure 102-1 Name of the organisation Rotana Hotel Management Corporation PJSC Disclosure 102-2 Activities, brands, products, and services Page 10, 11 . Our company, portfolio & expansion Disclosure 102-3 Location of headquarters Page 9. Our company, portfolio & expansion Disclosure 102-4 Location of operations Page 12. Our company, portfolio & expansion Disclosure 102-5 Ownership and legal form Page 9. Our company, portfolio & expansion Disclosure 102-6 Markets served Page 12. Our company, portfolio & expansion Disclosure 102-7 Scale of the organisation Page 9. Our company, portfolio & expansion Disclosure 102-8 Information on employees and other workers Page 47. Colleagues Disclosure 102-9 Supply chain Page 79, 80. Our Supply Chain “There were no significant changes during the reporting period” Disclosure 102-10 Significant changes to the organisation and its Page 23. Risk Governance & Compliance supply chain Page 14, 15. Memberships and Awards Disclosure 102-11 Precautionary Principle or approach Page 14, 15. Memberships and Awards Disclosure 102-12 External initiatives Disclosure 102-13 Membership of associations 2. Strategy Disclosure 102-14 Statement from senior decision-maker Page 6. Message from Acting CEO Disclosure 102-15 Key impacts, risks, and opportunities Page 23. Risk Governance & Compliance 3. Ethics and integrity Disclosure 102-16 Values, principles, standards, and norms of Page 13. Our vision and values behaviour Disclosure 102-17 Mechanisms for advice and concerns about Page 21, 22. Business Integrity, Governance, compliance & risk ethics management 4. Governance Disclosure 102-18 Governance structure Page 18, 19, 20. Governance, compliance & risk management Disclosure 102-19 Delegating authority Page 17, 18. Governance, compliance & risk management Disclosure 102-20 Executive-level responsibility for economic, environmental, and social topics Disclosure 102-21 Consulting stakeholders on economic, environmental, and social topics Disclosure 102-22 Composition of the highest governance BOD Page17, 20. Governance, compliance & risk management and its committees Disclosure 102-23 Chair of the highest governance BOD Page 17. Governance, compliance & risk management Disclosure 102-24 Nominating and selecting the highest Page 19 Governance, compliance & risk management governance BOD Disclosure 102-25 Conflicts of interest Page 19. Governance, compliance & risk management
84 Disclosure 102-26 Role of highest governance BOD in setting Page 21. Governance, compliance & risk management purpose, values, and strategy. Disclosure 102-27 Collective knowledge of highest governance BOD Disclosure 102-28 Evaluating the highest governance BOD’s Page 17, 19. Governance, compliance & risk management performance Disclosure 102-29 Identifying and managing economic, environmental, and social impacts Disclosure 102-30 Effectiveness of risk management processes Disclosure 102-31 Review of economic, environmental, and social Page 19. Governance, compliance & risk management topics Disclosure 102-32 Highest governance BOD’s role in sustainability reporting Disclosure 102-33 Communicating critical concerns Page 20. Governance, compliance & risk management Disclosure 102-34 Nature and total number of critical concerns Disclosure 102-35 Remuneration policies Disclosure 102-36 Process for determining remuneration Page 20. Governance, compliance & risk management Disclosure 102-37 Stakeholders’ involvement in remuneration Disclosure 102-38 Annual total compensation ratio Disclosure 102-39 Percentage increase in annual total compensation ratio 5. Stakeholder engagement Disclosure 102-40 List of stakeholder groups Page 31, 32. Sustainability Strategy, Stakeholders Disclosure 102-41 Collective bargaining agreements Disclosure 102-42 Identifying and selecting stakeholders Page 31, 32. Sustainability Strategy, Stakeholders Disclosure 102-43 Approach to stakeholder engagement Page 31. Sustainability Strategy, Stakeholders Disclosure 102-44 Key topics and concerns raised Page 33. Materilaity Assessment 6. Reporting practice Disclosure 102-45 Entities included in the consolidated financial Page 5, About this report statements Disclosure 102-46 Defining report content and topic Boundaries Page 5, About this report Disclosure 102-47 List of material topics Page 32, Materilaity Assessment Disclosure 102-48 Restatements of information Page 32, Materilaity Assessment Disclosure 102-49 Changes in reporting Page 5, About this report Disclosure 102-50 Reporting period Page 5, About this report Disclosure 102-51 Date of most recent report 2013-2014 Corporate Sustainbility Report Disclosure 102-52 Reporting cycle Page 5, About this report Disclosure 102-53 Contact point for questions regarding the report Last Page of the report Disclosure 102-54 Claims of reporting in accordance with the GRI GRI content index Standards Disclosure 102-55 GRI content index This table Disclosure 102-56 External assurance Rotana does not seek external assurance for its sustainability report. GRI 103: Management Approach Disclosure 103-1 Explanation of the material topic and its boundary Disclosure 103-2 The management approach and its components Disclosure 103-3 Evaluation of the management approach GRI 201: Economic Performance Disclosure 201-1 Direct economic value generated and distributed Page 10. Company, Financilal Highlights Disclosure 201-2 Financial implications and other risks and Page 61. Our Environment. Our Actions opportunities due to climate change Disclosure 201-3 Defined benefit plan obligations and other Page 10, 51. Colleagues, Benefits & compensation retirement plans «No financial assistance is given by the government« Disclosure 201-4 Financial assistance received from government GRI 203: Indirect Economic Impacts Disclosure 203-1 Infrastructure investments and services supported Disclosure 203-2 Significant indirect economic impacts
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GRI 204: Procurement Practices 5 Disclosure 204-1 Proportion of spending on local suppliers Page 83. Supply Chain, Local Suppliers GRI 205: Anti-corruption Disclosure 205-1 Operations assessed for risks related to corruption Disclosure 205-2 Communication and training about anti- Page 21, 22. Risk Governance & compliance, Business Integrity, corruption policies and procedures Code of Business Conduct & Ethics Disclosure 205-3 Confirmed incidents of corruption and actions Page 22, 23. Risk Governance & compliance, Lobbying and political taken donations GRI 206: Anti-competitive Behaviour Disclosure 206-1 Legal actions for anti-competitive behavior, anti- Page 22, 23. Risk Governance & compliance, Lobbying and political trust, and monopoly practices donations GRI 301: Materials Disclosure 301-1 Materials used by weight or volume Page 82, 83. Environment, Materials Disclosure 301-2 Recycled input materials used Page 82, 83. Environment, Materials Disclosure 301-3 Reclaimed products and their packaging materials GRI 302: Energy Disclosure 302-1 Energy consumption within the organisation Page 60, 61, 62. Environment, Energy & Emissions Disclosure 302-2 Energy consumption outside of the organisation Disclosure 302-3 Energy intensity Page 62. Environment, Energy & Emissions Disclosure 302-4 Reduction of energy consumption Page 61, 62. Environment, Energy & Emissions Disclosure 302-5 Reductions in energy requirements of products and services GRI 303: Water Disclosure 303-1 Water withdrawal by source Page 63. Environment, Water Disclosure 303-2 Water sources significantly affected by Page 63. Environment, Water withdrawal of water Disclosure 303-3 Water recycled and reused Page 63. Environment, Water GRI 304: Biodiversity Disclosure 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Disclosure 304-2 Significant impacts of activities, products, and services on biodiversity Disclosure 304-3 Habitats protected or restored Disclosure 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations GRI 305: Emissions Disclosure 305-1 Direct (Scope 1) GHG emissions Page 62. Environment, Energy & Emissions Disclosure 305-2 Energy indirect (Scope 2) GHG emissions Disclosure 305-3 Other indirect (Scope 3) GHG emissions Disclosure 305-4 GHG emissions intensity Page 62. Environment, Energy & Emissions Disclosure 305-5 Reduction of GHG emissions Disclosure 305-6 Emissions of ozone-depleting substances (ODS) Disclosure 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions GRI 306: Effluents and Waste Disclosure 306-1 Water discharge by quality and destination Disclosure 306-2 Waste by type and disposal method Disclosure 306-3 Significant spills Disclosure 306-4 Transport of hazardous waste Disclosure 306-5 Water bodies affected by water discharges and/ Page 63. Environment, Water or runoff
86 GRI 307: Environmental Compliance Disclosure 307-1 Non-compliance with environmental laws and regulations GRI 308: Supplier Environmental Assessment Disclosure 308-1 New suppliers that were screened using Page 83. Our supply chain, suppliers assessment environmental criteria Disclosure 308-2 Negative environmental impacts in the supply chain and actions taken GRI 401: Employment Disclosure 401-1 New employee hires and employee turnover Page 46. Colleagues, Engagement, Retaining our colleagues Disclosure 401-2 Benefits provided to full-time employees that are Page 51. Colleagues, Benefits & compensation not provided to temporary or part-time employees Disclosure 401-3 Parental leave Page 51. Colleagues, Benefits & compensation GRI 402: Labour/Management Relations Disclosure 402-1 Minimum notice periods regarding operational Page 46. Colleagues, Engagement, Intrenal Mobility changes GRI 403: Occupational Health and Safety Disclosure 403-1 Workers representation in formal joint Page 54, 55. Collegues, Wellbeing, Health & Safety, EHS committee management–worker health and safety committees Disclosure 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Disclosure 403-3 Workers with high incidence or high risk of diseases related to their occupation Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions GRI 404: Training and Education Disclosure 404-1 Average hours of training per year per employee Page 52, 53. Colleagues, Developmnet & growth Disclosure 404-2 Programmes for upgrading employee skills and Page 52, 53. Colleagues, Developmnet & growth transitionassistance programmes Disclosure 404-3 Percentage of employees receiving regular Page 52, 53. Colleagues, Developmnet & growth performance and career development reviews GRI 405: Diversity and Equal Opportunity Disclosure 405-1 Diversity of governance bodies and employees Page 17, 49 . Governance BOD, Colleagues, Diversity and equal Disclosure 405-2 Ratio of basic salary and remuneration of women opportunity to men Page 49, 50. Colleagues, Diversity and equal opportunity GRI 406: Non-discrimination Disclosure 406-1 Incidents of discrimination and corrective actions Page 49, 50. Colleagues, Diversity and equal opportunity taken GRI 407: Freedom of Association and Collective Bargaining Disclosure 407-1 Operations and suppliers in which the right to Page 46, 47. Colleagues, engagement freedom of association and collective bargaining may be at risk GRI 408: Child Labour Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor GRI 409: Forced or Compulsory Labor Disclosure 409-1 Operations and suppliers at significant risk for Page 49, 50. Colleagues, Diversity and equal opportunity incidents offorced or compulsory labor
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GRI 410: Security Practices Disclosure 410-1 Security personnel trained in human rights policies or procedures GRI 411: Rights of Indigenous Peoples Disclosure 411-1 Incidents of violations involving rights of indigenous peoples GRI 412: Human Rights Assessment Disclosure 412-1 Operations that have been subject to human rights reviews or impact assessments Disclosure 412-2 Employee training on human rights policies or procedures Disclosure 412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening GRI 413: Local Communities Disclosure 413-1 Operations with local community engagement, Page 68, 68, 70. Our communities, community outreach impact assessments, and development programmes Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities GRI 303: Water Disclosure 303-1 Water withdrawal by source Page 63. Environment, Water Disclosure 303-2 Water sources significantly affected by Page 63. Environment, Water withdrawal of water Disclosure 303-3 Water recycled and reused Page 63. Environment, Water GRI 414: Supplier Social Assessment Disclosure 414-1 New suppliers that were screened using social Page 83. Our supply chain, suppliers assessment criteria Disclosure 414-2 Negative social impacts in the supply chain and actions taken GRI 415: Public Policy Disclosure 415-1 Political contributions Page 24, 25. Risk Governance & compliance, lobbying and political donations GRI 416: Customer Health and Safety Disclosure 416-1 Assessment of the health and safety impacts of Page 39, 40. Our Guests, Health, Safety & Security product and service categories Disclosure 416-2 Incidents of non-compliance concerning the Page 39, 40. Our Guests, Health, Safety & Security health &safety impacts of products and services GRI 417: Marketing and Labeling Disclosure 417-1 Requirements for product and service information and labeling Disclosure 417-2 Incidents of non-compliance concerning product and service information and labeling Disclosure 417-3 Incidents of non-compliance concerning marketing communications GRI 418: Customer Privacy Disclosure 418-1 Substantiated complaints concerning breaches of Page 40. Our Guests, Health, Safety & Security, Privacy and data customer privacy and losses of customer data protection GRI 419: Socioeconomic Compliance Disclosure 419-1 Non-compliance with laws and regulations in the Page 24. Governance & managmeent , Risk Givernnace & social and economic area compliance, Complying with regulations
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Rotana Corporate Sustainability Report 2017
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