HILTON 2020 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT
CONRAD MALDIVES RANGALI ISLAND EXECUTIVE STATEMENT OUR BUSINESS ENVIRONMENTAL IMPACT SOCIAL IMPACT GOVERNANCE APPENDIX
ABOUT TRAVEL WITH PURPOSE 3 SOCIAL IMPACT 28 Team Member support 29 EXECUTIVE STATEMENT 4 About this report Diversity and inclusion 31 OUR BUSINESS 5 Inclusive growth 33 This report contains information about Hilton’s About Hilton 6 Human rights 35 Environmental, Social and Governance (ESG) Our material issues 8 Community support 37 performance. Our report has been prepared in Stakeholder engagement 9 Disaster relief 40 accordance with the Global Reporting Initiative (GRI) Driving change 11 GOVERNANCE 41 Standards and integrates the recommendations of the Preserving destinations 12 Board composition 42 Sustainability Accounting Standards Board (SASB) and Sustainability innovation 13 and independence the Taskforce on Climate-related Financial Disclosures 2020 highlights 14 ESG oversight 43 (TCFD). In addition to the information found in this 2030 Goal tracking 16 Ethical business 44 report and on our website, we externally report on our Risk management 45 Travel with Purpose strategy, programs and progress ENVIRONMENTAL IMPACT 19 Public policy and advocacy 47 Energy & carbon 20 towards our 2030 Goals in Hilton’s Form 10-K, Annual Water 22 APPENDIX 48 Report and Proxy Statement. We obtain third party Waste 24 Performance tables 49 assurance over selected data disclosed in this report, Responsible sourcing 26 SASB table 53 as indicated in our 2020 Assurance Statement. All GRI index 54 financial figures indicated in this report are in U.S. Assurance statement 68 dollars, unless otherwise noted.
CONRAD HANGZHOU TONGLU EXECUTIVE STATEMENT OUR BUSINESS ENVIRONMENTAL IMPACT SOCIAL IMPACT GOVERNANCE APPENDIX
HILTON SEDONA RESORT AT BELL ROCK
About Travel with Purpose About the Hilton Effect Foundation At Hilton, we know the success of our business is Through Travel with Purpose, we seek to create positive Launched in 2019, the Hilton Effect Foundation is our linked to our ability to operate and grow sustainably. environmental and social impact across our operations, primary global philanthropic arm, supporting efforts As one of the world’s largest hotel companies, we supply chain and communities. We pursue best-in-class to create a better world to travel. The Foundation is a recognize that we have a critical responsibility to operational excellence, engage our guests, owners and nonprofit established in the U.S. and is registered as protect our communities and our planet, so the Team Members, and use our innovation and influence a 501(c)(3) charitable organization. destinations where we operate can remain vibrant to make meaningful differences in the destinations and The Foundation awards grants to projects and and resilient for generations of travelers to come. communities in which we operate. We use LightStay, partners that will make a lasting positive impact on Travel with Purpose is Hilton’s Environmental, our award-winning ESG management system to track, travel destinations around the world. Hilton Effect Social and Governance (ESG) strategy to drive analyze and report our environmental and social Grants are awarded annually to nonprofits that help responsible travel and tourism globally. We have impact at each of our hotels, and our progress towards us advance our Travel with Purpose 2030 Goals. The committed to double our investment in social impact our 2030 Goals. Hilton Effect Foundation also invests in short-term and cut our environmental impact in half by 2030. relief and long-term resiliency efforts to support Our overarching Travel with Purpose 2030 Goals communities and constituencies impacted by are underpinned by targets which closely align with natural disasters and hardship. As part of its strategic the global Sustainable Development Goals (“SDGs”) commitment, the Foundation also supports signature adopted by the United Nations in 2015. multi-year partnerships with the International Youth Foundation and World Wildlife Fund.
PLEASE NOTE The images in this report may not reflect COVID-19 related requirements such as face coverings and social distancing
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Through it all, our Team Members were the From the outset of the heart of these efforts, spreading hospitality to COVID-19 pandemic, we knew our guests in communities across the globe, and offering gestures of hope that were all the more that staying true to Hilton’s meaningful in such a turbulent year. Thanks to founding vision – to fill the their grit, hard work and resilience, we continued to make a difference, and we were humbled to receive earth with the light and recognition for our efforts, including being: warmth of hospitality – would • Named the 2020 Global Industry Leader on the Dow Jones Sustainability Indices for the second be critical to sustaining our consecutive year; business and the people and • Recognized as the #1 Best Company to Work For in communities we serve. the U.S. and the #3 World’s Best Workplace by Great Place to Work Institute and Fortune Magazine; and, Throughout a year filled with uncertainty and upheaval, • The only global hotel brand named to the 100 Best I’ve been so inspired by our Team Members who rose Corporate Citizens of 2020 list. to the challenge, proving that our hospitality is an “More than ever, the global unstoppable force for good all around the world. More than ever, the global community is relying on community is relying on the Despite the pandemic’s unprecedented impact the private sector to lead the way in building resilience on the global hospitality industry, Hilton remained and inclusive growth in a complex world. Knowing that private sector to lead the fully committed to our Travel with Purpose 2030 Hilton has a unique role to play in making that growth Goals, and our teams worked tirelessly to be part of a reality, we refreshed our materiality assessment in way in building resilience the solution to this global crisis. With the support of 2020 to ensure that our Travel with Purpose goals are and inclusive growth in a our Owners, Team Members and partners around closely aligned with the most critical environmental, the world, we focused on helping those on the front social and governance (ESG) issues, focusing our complex world.” lines of the pandemic – from making one million efforts where we can have the greatest impact. room nights available to medical professionals, to In a year like no other, Hilton never wavered in supporting relief organizations with emergency its commitment to our people and the planet we all funding, to donating food and other essential supplies call home. As we look ahead, we will continue to lean to our local communities. We activated our Team into the legacy we have created, allowing us to have Member Assistance Fund to offer direct support to an even more profound and positive impact on the those in need, and distributed more than a million communities where we live, work and travel. I’m proud dollars from the Hilton Effect Foundation, providing of all we have accomplished in 2020 and know that recovery funding to severely impacted communities together, our Hilton family will continue leading the and constituencies. In the face of social unrest around way in sustainable travel for years to come. the world - particularly in the United States - we strengthened our commitments to diverse leadership in our hotels and corporate offices, as well as our partnerships with racial justice organizations fighting Christopher J. Nassetta for a more just and equitable society. President and Chief Executive Officer
April 9, 2021
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Hilton is one of the largest hospitality companies in the world. For more than 100 years, we have been an innovator in the industry, driven by the vision of our founder Conrad Hilton “to fill the earth with the light and warmth of hospitality.”
BAKER'S CAY RESORT KEY LARGO, CURIO COLLECTION BY HILTON
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
About Hilton OUR BRANDS Luxury and Lifestyle
Founded in 1919, Hilton is a leading global Our Team Members hospitality company with a portfolio of 18 Hilton defines Team Members as employees at Hilton corporate offices world-class brands. and owned and managed properties, and employees of franchisees who work Our business model on-property at independently owned and operated franchise properties Full Service We organize our operations into two in the Hilton portfolio. Our Team 18 distinct and separately managed Members are our greatest asset and brands operating segments: we are committed to fostering a culture 1. Management and franchise of hotel of inclusivity and empowering all Team 119 brands on behalf of third-party hotel Members to reach their full potential. countries & territories owners 2. Our ownership segment, comprising Hilton Supply Management hotels that are owned or leased by 6,478 Hilton or our affiliates Hilton Supply Management (HSM) is properties the global procurement and supply A more detailed description of our chain arm of Hilton. HSM develops Focused Service business model can be found in our and negotiates product and service 363,605 public filings. supply programs with suppliers around Team Members (Global), including the world to make available goods and 230,960 in the U.S. services at the best combination of OPERATING HOTELS price, quality and service. HSM services over 11,000 properties, including 4,500 61 (1%) 1,019,287 Owned/Leased/ non-Hilton branded hotels. Coordinating rooms Joint Venture by with over 80,000 Tier 1 suppliers globally, Hilton 6,478 including more than 1,200 unique Total 715 (11%) Managed by Hilton corporate and property contracted suppliers, HSM sources over 500,000 5,646 (87%) Timeshare Franchised products for hotels around the world.
56 (1%) Timeshare
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
2020 Global workforce (Corporate offices, owned and managed hotels)
Gender1 Management level Board diversity2
43% 81% Women Non-Management
57% 19% % % % Men Management 93 11 44 Full time employees Ethnic diversity3 Gender diversity1
2020 U.S. workforce (Corporate offices, owned and managed hotels)
Gender1 Management level Generation Ethnic diversity3
52% 86% 1% White 28% Women Non-Management Silent Hispanic/ 32% 48% 14% 27% Latinx Men Management Baby Boomer Black/ 20% African American 37% Gen X Asian 15% 35% Two or More Races 3% % Millennials Native Hawaiian/ 72 1% <1% Other Pacific Islander Ethnically diverse 4 Gen Z American Indian/ 19% Hotel leadership <1% Alaska Native 17% Corporate leadership5
1 Data is based on self-identified gender. Hilton recognizes and supports Team Members who identify as non-binary. 4 General Managers and Hotel Managers at U.S. managed hotels. 2 Reflects the gender and ethnic diversity of our non-management directors. 5 Senior Directors and above at U.S. corporate offices. 3 Using race/ethnicity categories defined by the Equal Employment Opportunity Commission.
SELECTED ESG RECOGNITION AND AWARDS
Global Industry Received Gold Named the #1 Best Company Named the #1 Ranked #2 in the 100% rating on The only global hotel Leader, Dow Jones Class distinction in to Work For in the U.S. and the Great Place to DiversityInc’s Top the Human Rights brand named to Sustainability Indices S&P’s Sustainability #3 World’s Best Workplace by work for Women in 50 Companies for Campaign’s 100 Best Corporate Yearbook Great Place to Work Institute the U.S. by GPTW Diversity Corporate Equality Citizens List (GPTW) and Fortune Magazine and Fortune Index for seven years in a row
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Assessing our material issues
Team Corporate Owners & Sustainability Leadership Investors Suppliers NGOs ENVIRONMENTAL ASPECTS Members Customers Developers & Travel SMEs Community We periodically assess our material issues to ensure we Disaster preparedness & response are aligning our programs 200+ Biodiversity & destination stewardship Material ESG with the issues that matter issues considered most to our business and Climate action our stakeholders. Energy conservation In 2020, we worked with a third party Waste management & circular economy to conduct a thorough ESG materiality assessment, leveraging guidance Water stewardship from the GRI, SASB and the World Economic Forum. Through our Responsible sourcing of goods & services assessment, we identified more than SOCIAL ASPECTS 200 potentially material aspects which were consolidated into 17 most material Community engagement & empowerment focus areas. We then conducted Economic impact on communities interviews and surveys to capture feedback from nearly 1,500 internal Employee development & wellbeing and external stakeholders, including Diversity, equity & inclusion guests. This table demonstrates our stakeholders' perspectives on the Employee & guest health, safety & security relative importance of each of these 17 aspects. In addition to this summary, Human rights Imperative further detail can be found in our full Extremely Engagement with suppliers Materiality Assessment Report. important We use the results of our Healthy, safe & sustainable food Very important materiality assessments to ensure Important that our Travel with Purpose strategy GOVERNANCE ASPECTS Identified as remains aligned with our most material Ethical business practices & reg. compliance growing in issues, inform management of ESG importance Policy engagement & advocacy over the next risks, and drive long-term value for our 3–5 years business and our stakeholders.
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Engaging with our key stakeholders
We view our company as a local business that operates at a global scale. As we seek to redefine sustainable travel, we regularly consult with our stakeholders on their advice, feedback and priorities to inform our programs and refine our focus on the most material issues.
We engage with our internal stakeholders through multiple mechanisms. Hilton leadership Team Members BOARD OF DIRECTORS TRAVEL WITH PURPOSE CHAMPIONS Our Nominating & Environmental, Our network of more than 1,250 Hilton Social and Governance (ESG) leaders shape our Travel with Purpose Committee oversees our ESG strategy, programs and guide initiatives at our and the Board receives annual updates hotels and offices around the world. on progress towards our 2030 Goals. TEAM MEMBERS CEO AND EXECUTIVE COMMITTEE Feedback is continually captured Our executives review progress towards through our Corporate Responsibility our 2030 Goals alongside other key Inbox and Hilton Team Member Hotline, business priorities during Quarterly and all Team Members globally were Business Reviews. This process invited to participate in our 2020 was paused during 2020 due to the materiality assessment survey. pandemic but will restart in 2021.
CORPORATE VPS AND MANAGED HOTEL GENERAL MANAGERS Hilton leaders receive quarterly updates on Travel with Purpose performance, CANOPY BY HILTON CANCUN LA ISLA including progress towards 2030 Goals, as part of ongoing business updates.
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
We see increased interest and engagement INDUSTRY COLLABORATION of our external stakeholders in our ESG programs. Through our industry associations, including the Sustainable Hospitality Alliance (SHA), American Hotel & INVESTORS CLIENTS COMMUNITY MEMBERS Lodging Association (AHLA), US Travel Association and World Travel & Tourism We regularly meet with our investors We engage with our corporate clients We engage with our communities to Council (WTTC), we contribute to the to discuss our ESG programs and to solicit their feedback on our Travel understand the issues that are of biggest co-creation of industry commitments progress towards our 2030 Goals, and with Purpose programs and do our importance to them, and to ensure our related to human rights, carbon, we provide material, decision-useful best to align our efforts with their programs are addressing their needs. water, food waste and other critical topics. Among other initiatives, we ESG information in our Form 10-K, Proxy own sustainability objectives, such as INDUSTRY worked with our peers to develop Statement, Annual Report, and in ESG reducing the environmental footprint of the Sustainable Hospitality Alliance’s We collaborate with our peers in the questionnaires and ratings indices. business travel. Principles on Forced Labor, the Hotel travel and tourism industry to advance Carbon Measurement Initiative (HCMI) and the Hotel Water Measurement OWNERS & DEVELOPERS SUPPLIERS collective action on environmental We continually consult with our owners and social issues, including driving Initiative (HWMI) methodologies to We work with our suppliers to help us consistently measure and report on on our Travel with Purpose programs achieve success in our ESG programs, policy agendas that contribute to carbon and water in hotels. through our Owner Advisory Councils, including identifying innovative systems change. In addition to this work with and we collaborate closely with our SHA, we are also currently working solutions through our strategic POLICYMAKERS owners and developers to pilot new with the lodging industry and WWF sourcing initiatives, fostering a diverse Our Government Affairs team engages to develop a consistent methodology sustainability initiatives and achieve our supply chain through our Supplier with policymakers on key ESG-related for the measurement of waste. We mutual sustainability goals. Diversity Program, and implementing also participate in the Cornell Hotel issues. Sustainability Benchmark (CHSB) GUESTS human rights audits and assessments. Index, a free tool which benchmarks carbon and water consumption across We monitor and address guest feedback NGOS AND hotel brands. and questions related to our Corporate INTERNATIONAL ORGANIZATIONS Responsibility programs, and we take Hilton and the Hilton Effect Foundation guest expectations into account as we partner with leading NGOs and refine our efforts. international organizations in support of our ESG initiatives, including World Wildlife Fund (WWF) and the International Youth Foundation (IYF).
Rooftop solar panels provide 115 MWh of electricity per year for the Hampton Inn & Suites Roseburg, Oregon
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Driving change across our value chain
Hilton is committed to driving positive change in every aspect of our business. Through our Travel with Purpose 2030 Goals, we are taking steps to integrate social and environmental stewardship throughout our value chain every day. Below are some examples of how Hilton is creating positive change across our global operations, communities and supply FLOWERS chain. To learn more about Hilton’s 2030 Goals and how we are directly contributing to achievement of the UN’s Sustainable Development Goals (SDGs), please click the link below.
OUR SUPPLY CHAIN OUR OPERATIONS OUR COMMUNITIES We partner with our suppliers to protect We engage our Team Members, owners and We invest in our communities to generate human rights, ensure responsible sourcing and business partners to advance our positive inclusive economic opportunities for all, drive collective action across our business. impact and preserve resources in our hotels and to protect the environment for future around the world. generations to come. 2030 GOALS
LEARN MORE • Supporting local businesses by doubling our • Preserving resources by reducing carbon • Creating opportunities and sustainable About our sourcing spend from local, small- and medium- emissions, water and waste solutions for all, including women, youth, sized enterprises and minority-owned suppliers minorities, Veterans, and persons with • Embedding human rights due diligence 2030 Goals disabilities • Protecting human rights by partnering across our global operations with suppliers to eradicate forced labor • Bringing Travel with Purpose to life in our • Adopting global best practice standards for and trafficking communities through skills-based Team sustainability management Member volunteering • Sustainably sourcing meat and poultry, • Engaging and training our Team Members on seafood and cotton across managed • Preserving local cultural and natural heritage, environmental and social issues, to drive operations and engaging guests in our destination change in our hotels and beyond stewardship efforts • Encouraging our suppliers to set their own environmental and social goals • Advancing resiliency by investing in disaster response and relief efforts
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Preserving destinations SPOTLIGHT
Hilton recognizes that we have a responsibility to conserve the environment and protect the communities in which we operate, in order to preserve destinations for future generations of travelers.
HILTON SEYCHELLES NORTHOLME Addressing biodiversity Aligning with globally- Identifying hot spots RESORT & SPA and climate change risk recognized standards We map 100% of our hotels and Protecting paradise We are taking steps to assess our We have aligned our LightStay pipeline countries against a series biodiversity risk as well as our exposure management system with the of 26 risk indicators, from modern in the Seychelles to physical climate risks, in accordance criteria of the UN-founded Global slavery to deforestation. We work In order to preserve the incredible with guidance from the Sustainability Sustainable Tourism Council (GSTC), with WWF to identify key destinations local environment, two Hilton Accounting Standards Board (SASB) the most respected seal of approval that might be experiencing higher hotels in the Seychelles have and the Taskforce for Climate-related for sustainable travel and tourism social and environmental stress, to implemented a holistic approach Financial Disclosures (TCFD). We practices. This represents a significant help us prioritize our destination to destination stewardship. Hilton have mapped all of our hotels against step towards our goal of adopting stewardship efforts. Seychelles Labriz Resort & Spa the World Database of Protected a global standard for responsible sources 80% of its vegetables Areas and the International Union travel and tourism. While our efforts from sustainable local farmers, for Conservation of Nature’s Red List to further our GSTC certification and Hilton Seychelles Northolme of Threatened Species, and against process were put on pause this year has partnered with the Marine Verisk-Maplecroft’s Climate Change due to the pandemic’s impacts on Conservation Society to help OUR EFFORTS CONTRIBUTE TO Vulnerability Index. We have also our business, we continue to identify THE FOLLOWING SUSTAINABLE preserve the local coral reefs. mapped our U.S. hotels against 100- opportunities to achieve GSTC DEVELOPMENT GOALS: Both properties have extensive year flood zone areas, as designated certification for our hotels to ensure waste reduction programs, by the U.S. Federal Emergency the sustainability of our operations. including a local bottling plant Management Agency. We are that has eliminated the need for working to develop mitigation plans single-use water bottles. Through for existing properties as well as for their holistic approach and shared new developments in high-risk areas, initiatives, these two properties leveraging our established human are demonstrating best practice rights due diligence processes. in destination stewardship. 11.4 12.b
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
DRIVING INNOVATION Leveraging innovation THROUGH PARTNERSHIPS
When it comes to sustainable travel, and technology Travel Labs Asia is already making waves. Launched by the Asian Development Bank in partnership with the Pacific Asia Travel Association and open innovation platform Plug and Play, Travel Labs Asia is the region’s first corporate innovation program dedicated to sustainability Innovation is embedded Managing our footprint • Machine-learning: in travel. As a corporate member, in Hilton’s DNA, and we through LightStay Analyzes and predicts utility Hilton has access to sustainability- consumption and costs through focused technology solutions, and are driving sustainability the opportunity to articulate our Since 2009, Hilton has used our Artificial Intelligence algorithms and innovation at our hotels LightStay management system to technology needs and develop pilot data-driven models, and alerts hotel proposals with solution providers. around the world. measure and manage the impact of our teams to significant consumption Through this partnership we aim global portfolio. Originally designed to variances in real time to work with innovative suppliers that can provide triple bottom line We know that achieving our 2030 Goals track environmental data, LightStay • Risk mitigation: solutions to our most pressing will require more than just best-in-class has evolved to measure, manage and Maps all hotels against external risk sustainability needs. operational training, which is why we report all of Hilton’s environmental and indices including disaster, climate, are focused on continuous innovation social performance metrics. As a global water, and human rights risks, to inform and investing in leading technology brand standard, all of Hilton’s 6,478 local strategy and priorities solutions that drive economic and managed and franchised hotels are PUTTING OUR SUPPLIERS environmental benefits for our hotels. required to use LightStay to track their • Engagement tools: TO THE TEST This year we continued to enhance our environmental and social performance Engages our hotel teams via against prior years and against peers. recognition, guidance, trainings and For our EMEA Engineering Operations award-winning LightStay platform to team, evaluating new technology drive value for our hotel owners around LightStay’s features include: customized reports, including reports involves TV-worthy competition. Each the world. We also engage in strategic that can be shared with sales clients year, Hilton suppliers submit proposals • Environmental impact tracking: for innovative technology solutions partnerships and innovation challenges • Client reporting: Tracks energy, carbon, water and waste that have the potential to save that enable us to identify, test and Enables us to accurately measure consumption, sourcing practices and money and reduce the environmental implement technologies that will our clients’ Scope 3 emissions from footprint of our hotels. A group of improvement projects, and provides contribute to further reductions. transient or group business hotel Engineering champions reviews peer performance benchmarking the submissions, and top candidates • Third-party verified: are invited to present to our experts • Social impact tracking: Externally verified to ensure the in a Dragon’s Den/Shark Tank style Measures the impact of volunteer and face-to-face competition. A closely accuracy and completeness of our data donation events and local partnerships monitored field trial is arranged with the winners. If the technology meets • GSTC-Recognized: • Best practice sharing: our qualifications, the product becomes Meets the stringent criteria of the Tracks operational, design and “Tech Den approved,” allowing our hotel GSTC leaders to implement the technology construction sustainability practices, with confidence. and enables hotels to share best practices within our portfolio
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
2020 highlights
Our response to COVID-19 PANDEMIC RESPONSE Throughout the year, Hilton took Partnered with American Express Provided meals to medical first Partnered with Meals On Wheels Named to PEOPLE action to support our Team Members and hotel owners to donate up to responders and community members to deploy skills-based virtual Magazine's 50 and community members impacted one million hotel room nights for in need through partnerships with volunteering Companies that by the pandemic. Through Hilton's U.S. frontline medical professionals groups such as World Central Kitchen Care list and Open Kitchens UK corporate efforts and the Hilton Effect leading the fight against COVID-19 Foundation, we awarded more than $1 million dollars in COVID-19 community Enabled Hilton Honors members to Supported global organizations Recognized by Newsweek as one response–a significant achievement respond to the global pandemic by with COVID-19 emergency response of the Top 50 U.S. Businesses that considering the severe impact the donating their Points directly to our grants, including World Central “Stood Out During the Pandemic” partners Kitchen, ResponseNet, Project for our commitment to housing and pandemic had on our industry. HOPE, Direct Relief, Clean the World, providing meals to frontline medical and Consorzio Farsi Prossimo professionals
Awarded 23 Hilton Effect Grants to organizations driving inclusive pandemic recovery and community resiliency
Ecamir Harvest Russia Against Hunger MBMHMC Springboard WA, USA IL, USA United Kingdom Food Forward Musubie BCAGlobal USA Lligam CA, USA International Japan NEEF USA Spain Rescue Committee SCA, USA Jordan The Nature Conservancy Love Beyond Walls China USA Planet Water Foundation Scholars of Sustenance India ACE Charity Thailand Nigeria Eco-Soap Bank Africa Emmanuel Foundation The Nature Indonesia Conservancy Habitat for Peru Humanity Water.org Fiji Brazil WESSA KARI Foundation South Africa Australia
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Progress towards ENVIRONMENTAL IMPACT SOCIAL IMPACT RECOGNITION our 2030 Goals Trained our hotels to adopt techniques Provided more than $600,000 to Team Named 2020 Global Industry Leader on the We remain fully committed to our to conserve resources in times of low Members in disaster relief and hardship Dow Jones Sustainability Indices for the Travel with Purpose 2030 Goals to occupancy support through the Hilton Team Member second consecutive year double our investment in social impact Assistance Fund and cut our environmental footprint in half. Despite the challenges in 2020, Continued to cut resource consumption in Hilton realized many achievements. our hotels in line with our goal to halve our Additional 2020 highlights can be environmental footprint found in our end of year press release.
Rolled out our Developed and implemented our Disaster Named the #1 Best Company to Work For in Hilton EventReady Response Playbook to swiftly deploy the U.S. and the #3 World’s Best Workplace program, creating support for our Team Members and by Great Place to Work Institute (GPTW) and environmental communities struck by natural disaster in Fortune Magazine sustainability and any location social responsibility standards for all Hilton meetings and Joined with Tent Partnership for Refugees events and Human Rights Campaign to pledge to mentor LGBTQ refugees and asylum seekers
Contributed to the re-launch of the Awarded grants to nonprofits that are at Ranked #2 on the Sustainable Hospitality Alliance, harnessing the front lines of the fight for racial justice, 2020 DiveristyInc the collective action of the hotel industry to including the NAACP and National Urban Top 50 Companies drive positive impact at scale League for Diversity List
Partnered with Travel Labs Asia to access and review sustainability innovations and solutions for our hotels.
Began sourcing 100% Launched our Courageous Conversations The only global hotel brand named to the 100 renewable electricity Series to engage Team Members in Best Corporate Citizens of 2020 list at the majority of our necessary conversations on racial justice managed hotels in and promoting equity in the workplace the U.K.
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Our 2030 Goals align with the UN’s Sustainable Development Goals and LEGEND 2030 Goal tracking targets. The corresponding SDG for each of Hilton's 2030 Goals is included below.
Making On track Complete progress
Overarching impact
HILTON'S 2030 GOALS SDGs PROGRESS TO DATE
DESTINATION STEWARDSHIP Adopt a global standard for responsible travel and tourism, Achieved Global Sustainable Tourism Council (GSTC)-Recognized Standard status for complementing our existing environmental certifications LightStay Engage guests in supporting responsible travel in destination Mapped 100% of hotels against key social and environmental risks hot spots 11.4 12.b On track Continued to advance collaboration with groups including WWF, WTTC and GSTC to advance sustainable destination management
TEAM MEMBER SUPPORT AND ENGAGEMENT Support our Team Members affected by disasters Distributed more than $500,000 to Team Members directly impacted by COVID-19 Achieve Hilton’s Diversity & Inclusion targets (learn more) Contributed to the development of WTTC’s New Guidelines for Inclusion & Diversity Train employees at Hilton managed hotels on relevant Launched our Courageous Conversations Series to engage Team Members in 5.1, 10.2, On track environmental and social issues necessary conversations on racial justice and promoting equity in the workplace 5.5 10.3 Awarded grants to nonprofits that are at the front lines of the fight for racial justice, including the NAACP and National Urban League 91% of managed hotels globally have trained all Team Members in Diversity & Inclusion and Unconscious Bias, including 100% of managed hotels in the U.S. 100% of hotel General Managers and Engineers required to be trained in using LightStay system
SUPPLIER ENGAGEMENT Encourage suppliers to set goals and validate through Partnered with EcoVadis to track and validate supplier sustainability performance auditing and incentive program All suppliers are encouraged to observe and abide by Hilton's Responsible Sourcing Policy, Create framework for collaboration program with top-tier which is included in all property contracts suppliers Making 12.2, Where relevant, routinely incorporate sustainability criteria into our sourcing exercises, progress Increase data visibility by incorporating social and 12.6 catalogs and purchasing data environmental criteria into supplier registration and inquiry processes
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Cutting our environmental footprint in half
HILTON'S 2030 GOALS SDGs PROGRESS TO DATE
ENERGY AND CARBON Science-based targets: Reduce Scope 1 and 2 carbon 56% reduction in carbon emissions intensity (managed hotels)* intensity from managed hotels by 61%, and work with 47% reduction in carbon emissions intensity (all hotels)* franchisees to reduce Scope 3 carbon intensity from 2 franchised hotels by 52% (MT CO2e/m , 2008 baseline) Began sourcing 100% renewable electricity at the majority of our managed hotels in the On track 7.2, 12.2 13.1, U.K., and added renewable energy option for U.S. managed hotels Create and partner with cross-industry networks to 7.3, 13.3 support a low-carbon future 7.a 100% of hotels mapped against climate risks Continued to advance collaboration across industry networks
WATER
Reduce water use in our managed operations by 50% 47% reduction in water intensity (managed hotels)* (liters/m², 2008 baseline) 49% reduction in water intensity (all hotels)* Activate 20 context-based water projects in our communities 3 context-based water pilots initiated and watersheds of top water risk 6.3, 12.2 Making Mapped 100% of hotels against WRI and WWF water risk indices; 37% of managed hotels progress 6.4, 6.6, identified to be in areas of high or very high water stress 6.b Investing in community water stewardship efforts through the Hilton Effect Foundation
WASTE Reduce waste in our managed operations by 50% (MT/m², 2008 73% reduction in landfilled waste intensity (managed hotels)* baseline) 62% reduction in landfilled waste intensity (all hotels)* Reduce food waste sent to landfill by 50% in our managed 88% of portfolio participating in soap recycling, including 100% of North America hotels operations (MT/m², 2017 baseline) On track 3.3 12.3, 14.1 Food waste reduction program established Send zero soap to landfill by recycling all used guest soap bars, 12.5 where available Collaborating with WWF and the hotel industry to develop a standardized waste measurement methodology Launched Hilton EventReady program globally, creating waste reduction standards for all Hilton meetings and events
RESPONSIBLE SOURCING Sustainably source (e.g. certified) all meat and poultry, produce, Partnering with our suppliers to improve access to certified sustainable products seafood and cotton at managed hotels (where available) 58 hotels in 7 countries have achieved Marine Stewardship Council (MSC) and/or Aquaculture Stewardship Council (ASC) Chain of Custody certification for sustainable seafood Making 12.2, 14.4, progress 12.5, 14.b Cage-free eggs represent 86% of our egg volume in the U.S. and 66% in the U.K. and nine 12.6 European countries, for our Luxury and Full Service managed hotels
* Significant improvements in environmental measures during 2020 are primarily attributable to the reduction in system-wide occupancy as a result of the COVID-19 pandemic.
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ABOUT OUR MATERIAL STAKEHOLDER DRIVING PRESERVING SUSTAINABILITY 2020 2030 GOAL HILTON ISSUES ENGAGEMENT CHANGE DESTINATIONS INNOVATION HIGHLIGHTS TRACKING
Doubling our investment in social impact
HILTON'S 2030 GOALS SDGs PROGRESS TO DATE
INCLUSIVE GROWTH Double our investment in programs that contribute to Positively impacted nearly 11,500 refugees since 2015 sustainable solutions and economic opportunity for all (2017 Sourced from 2,700 women-, minority-, veteran-, disabled- and LGBTQ-owned businesses in baseline) 2020 Double our sourcing spend from local, small and medium-sized 1.1, 4.4, 8.b, On track 50% of brands have at least one brand standard requiring local sourcing enterprises and minority-owned suppliers for managed hotels 1.2 4.5 8.5, and corporate offices (2017 baseline) 8.6 Joined with Tent Partnership for Refugees and Human Rights Campaign to pledge to mentor LGBTQ refugees and asylum seekers Double our investment in youth opportunity programs in countries with lowest youth wellbeing (2017 baseline) Continued to partner with organizations expanding opportunities for youth, including International Youth Foundation, Jobs for America's Graduates, and Springboard
HUMAN RIGHTS Embed human rights due diligence across our global operations 124,796 Team Members completed our anti-human trafficking training, including 71% of hotel and in our supply chain, and partner with suppliers to address any leaders form of forced labor or trafficking Achieved 91% compliance with training in Risks of Modern Slavery in Labor Sourcing across Create and partner with cross-industry networks to advance 8.7, Europe, Middle East and Africa (EMEA) hotels On track international human rights 8.8 100% of hotels mapped against human rights risks, and 100+ country-level human rights briefs and mitigation plans developed Active collaboration with industry organizations and partners including It's a Penalty and ECPAT-USA
COMMUNITY SUPPORT AND DISASTER RESPONSE Contribute 10 million volunteer hours Awarded over $1M in COVID-relief grants through the Hilton Effect Foundation, prioritizing organizations supporting marginalized communities Participate in food donation programs, where allowed by law (managed hotels) Partnered with American Express to donate up to one million free room nights to frontline medical professionals On track Double our monetary response, empowerment efforts and 1.1, 11.5 12.3 investment in resiliency against natural disasters (2017 baseline) 1.5 Donated $350,000 through the Hilton Effect Foundation to community organizations supporting natural disaster relief Double Action Grants for hotel-led social and environmental impact projects in our communities Developed and implemented Disaster Response Playbook Promote environmental awareness and open our LightStay 1,612,920 hours volunteered since 2017, including 184,425 hours in 2020 technology in school educational programs All managed hotels in North America are required to have food donation programs in place
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
Hilton operates in some of the most beautiful destinations around the world, and we recognize our critical responsibility to protect our planet so that it remains healthy and vibrant for future generations. In spite of 2020's challenges, we remain fully committed to halving our environmental impact throughout our value chain.
HILTON ASHEVILLE BILTMORE PARK
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
LEARN MORE Progress towards Fighting climate change our 2030 Goals
Our primary source of emissions is from We recognize that the reductions We are committed to leading the hospitality the operation of our hotels. In 2020, we achieved as a result of the pandemic industry toward a zero-carbon economy and experienced a significant decrease in are neither representative nor utility consumption across our global sustainable. As travel returns and reducing our greenhouse gas emissions in portfolio, primarily as a result of reduced our hotels reopen for business, we line with climate science. occupancy and complete or partial will continue our relentless focus on temporary suspensions of properties. To energy efficiency to reduce utility reduce energy and carbon emissions in costs and greenhouse gas emissions times of reduced occupancy, our hotels from our hotels around the world. were encouraged to adopt operational best practices, such as partial building Hilton was named shut downs, variable plant load the 2020 DJSI Global Industry Leader for the operation and implementation of second consecutive year enhanced building controls.
2 2 Carbon reduction (MT CO2e/m ) Energy reduction (KWh/m )
2030 Goal -0% -0% OUR SCIENCE-BASED TARGETS % -5% -7% -8% -7% -10% We recognize climate change to be -61 -12% -10% -10% -5% -14% -14% a critical threat to our planet, our -7% -15% -7% -9% -17% -18% -17% communities and our business, and -20% -10% -19% -21% -12% -21% -22% we’ve made combatting it a top -20% -23% -20% -14% -16% -24% -18% business priority. -19% -20% -29% -30% -20% -22% -32% -22% -30% -24% -25% -30% -24% By 2030, we commit to: -27% -26% -42% • Reduce Scope 1 and 2 carbon intensity -32% from Hilton-managed hotels by 61% -40% -34% -47% -40% • Work with our Franchisees to reduce -36% Scope 3 carbon intensity from -50% -50% Franchisees by 52% -47% • Encourage suppliers to set goals -60% Managed Hotels around reducing their environmental -56% -60% All Hotels and social impact -70% -70% 08 09 10 11 12 13 14 15 16 17 18 19 20 08 09 10 11 12 13 14 15 16 17 18 19 20
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
Increasing our use SPOTLIGHT of renewable energy % In alignment with our science-based 100 targets, in 2020 we took several steps of properties certified to increase our sourcing of renewable to ISO 14001 (Environmental Management) energy at our hotels around the world. and ISO 50001 (Energy Management), the largest certified portfolio in the world The majority of our managed hotels in the U.K., as well as our Watford and
Glasgow corporate offices, began procuring 100 percent renewable 1,300 hotels electricity in 2020. Also starting in offering Electric Vehicle (EV) charging 2020, all of our managed hotels in stations for guests the U.S. are encouraged to procure at least a portion of their electricity % from renewable sources through 100 our energy procurement services of Hilton's corporate Scope 3 emissions contract. We recognize that increasing from air travel and rental cars offset access to affordable renewable energy will require governments HILTON GARDEN INN FAROE ISLANDS to take swift action to implement Promoting ambitious emissions reduction plans. low-carbon diets Discovering the Faroe Islands That is why in 2020 we joined more In 2019, Hilton became the world’s through a sustainable lens than 200 businesses and investors in first hotel company to sign the calling on EU leaders to raise EU 2030 World Resource Institute’s Cool When guests visit the new Hilton water taps and motion-activated GHG emissions targets and endorse Food Pledge, committing to reduce Garden Inn (HGI) in the remote Faroe LED lighting further prevent energy the ambitious goals set out in the food-related emissions. To achieve Islands, it feels almost otherworldly. waste. The hotel is powered by European Green Deal. this we are taking steps to promote But what’s behind the scenes is just renewable energy from a local plant-based menu items, including in as impressive: the entire property power plant that captures leftover meetings and events. was built with sustainability at its energy from a range of industries, core. The hotel’s commitment to including turning waste from the sustainability starts from the top: Islands’ thriving salmon fishing the roof is covered in grass, allowing industry. To help guests go green OUR EFFORTS CONTRIBUTE TO for ultra-efficient insulation and a beyond the four walls of the hotel, THE FOLLOWING SUSTAINABLE building that seamlessly blends into the HGI Faroe Islands will be one DEVELOPMENT GOALS: the local environment. Inside, ultra- of the first hotels on the island efficient heating systems, including to offer electric vehicle charging under floor heating, help keep stations. The result is a property with guests warm and take into account a minimal environmental footprint occupancy levels to avoid heating that embraces the archipelago’s own unused spaces. Motion sensors on sustainable tourism strategy. Once completed, Hotel Marcel, Tapestry Collection by Hilton will be one of the first net-zero energy 7.2, 7.3, 7.a 12.2 13.1, 13.3 hotels in the U.S. LEARN MORE
HILTON 2020 ESG REPORT 21 EXECUTIVE STATEMENT OUR BUSINESS ENVIRONMENTAL IMPACT SOCIAL IMPACT GOVERNANCE APPENDIX
ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
LEARN MORE Progress towards Embedding water stewardship our 2030 Goals throughout our global operations
We are focused on driving holistic water SPOTLIGHT stewardship across our value chain.
We are committed to working with our other environmental objectives. our hotels, our suppliers and our While 2020’s significant reduction community partners to improve in global occupancy resulted in a water availability and quality in all corresponding drop in our water of our locations around the world. consumption, we recognize that we Prior to 2020, we were behind target have work to do to ensure we will be to hit our 2030 Goal to cut water on track to hit our 2030 Goals when consumption in our managed hotels occupancy levels return to normal. by 50% per square meter. Our water We are committed to implementing reduction targets have proven to be best-in-class solutions to ensure we more challenging to achieve than can hit our targets. ROME CAVALIERI, A WALDORF ASTORIA HOTEL
2 Water reduction (liters/m ) Conserving water while maintaining the luxury experience 2030 Goal % The team at Rome Cavalieri, A low-flow dispensers on all taps -2% -2% -0% -4% Waldorf Astoria Hotel is dedicated and showerheads, the hotel’s -6% -50 -11% to providing guests with exceptional Engineering team reduced water -10% -4% -5% -13% -7% -15% experiences that are both luxurious consumption by 20% over three -17% -18% -10% -20% -20% -13% -14% -22% and sustainable. By optimizing years. The hotel’s commitment to -17% -18% -20% the hotel’s irrigation schedule and sustainability extends well beyond -22% -30% -23% swimming pool water consumption, water stewardship, and as a result of -47% -40% redeveloping the property’s its holistic sustainability practices, evaporative tower system, training the property was the first hotel in Managed Hotels -50% housekeeping and kitchen teams to Rome to achieve the prestigious All Hotels -49% reduce water waste, and installing Green Key certification. -60% 08 09 10 11 12 13 14 15 16 17 18 19 20
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
Operational water efficiency Understanding and Our brand standards require water addressing water risk fixtures to meet local requirements for An effective water stewardship program water efficiency and conservation, and must fully incorporate the contextual we continually train our Team Members nature of water availability and quality. to take steps to save water. Many of To understand our global water risk, we our hotels in water stressed regions continually map all of our hotels against also use guest-facing messaging to WWF’s Water Risk Filter and the WRI encourage our guests to join us in Aqueduct Water Risk Atlas. We use this conserving water. The reduction in mapping to analyze current and future occupancy due to COVID-19 enabled water risks across our portfolio, and we us to better understand where and have incorporated the results of this how our hotels around the world are analysis into LightStay so that our hotels using water when our guest rooms and teams can understand and address Through our partnership with the Student Conservation Association, the Hilton Effect Foundation is kitchens are closed. Through studying supporting conservation and educational efforts that contribute to protecting watersheds across the U.S. water risks specific to their geolocation. this year’s consumption patterns, we have determined that we need to focus on further reducing water use in SPOTLIGHT landscaping and building operations, % and in particular we are seeking 100 Supporting water stewardship opportunities to drive water efficiency of hotels mapped in South Africa and recycling in our HVAC systems and against WWF’s Water Risk Filter and WRI’s legionella control measures. Aqueduct Water Risk Atlas
We invest in water stewardship found in few other places, and % projects in our communities through this project, unemployed Contributing to 37 experiencing elevated water risk. In community members have acquired collective action of managed hotels identified 2020, the Hilton Effect Foundation course-oriented training, equipping We are committed to collective action to be in areas of high or very high water stress partnered with World Wildlife them with skills and experience to around water stewardship, and we are Fund and the Wolseley Water be able to find employment in an proud to be members of the following Users Association to support the area where employment is mostly collaborative efforts: clearing of water-intensive invasive seasonal due to the nature of the species in the Western Cape of fruit and wine industries. In addition • Signatory to the CEO Water Mandate’s UN Water Action Platform to further OUR EFFORTS CONTRIBUTE TO South Africa. The Hilton Effect to supporting the local community THE FOLLOWING SUSTAINABLE Foundation’s funding functioned through employment, this project our commitment to fighting the global DEVELOPMENT GOALS: as a seed for additional co-funding, also contributes to raising awareness water crisis enabling the project to clear a larger among farmers and students about • Members of the California Water area than originally planned. This the benefits of planting trees and Action Collaborative and Ceres project has unique conservation restoring the ecosystem. Connect the Dots Campaign value as it aims to reintroduce indigenous tree species that are 6.2, 6.4, 6.6, 6.b 12.2
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
LEARN MORE Progress towards Preventing waste and driving our 2030 Goals towards a circular economy
Through a partnership We are focused on reducing waste and with Open Kitchens UK, the team at the Hilton employing a circular model across our London Metropole provided 30,000 free nu- value chain. tritious meals to people in need across London. The meals were prepared Our waste reduction strategy seeks to energy or water, and the amount of using surplus produce decrease the overall amount of waste waste produced by our hotels decreased that otherwise would have gone to waste. produced in our hotels, while taking dramatically in 2020 due to the impacts LEARN MORE steps to divert remaining waste from of the pandemic. As we look to the landfill through donation, recycling, future, we are working with our partners, composting, energy from waste inciner- including our waste haulers, suppliers ation and other opportunities. Waste is and donation partners, to find innova- more closely linked to occupancy than tive ways to continue to reduce waste. Fighting food waste The pandemic resulted in disruptions techniques for reducing food waste Landfilled waste reduction (MT/m2) to food supply and a significant in every step of the Food & Beverage increase in global food insecurity, process: from purchasing and menu making fighting food waste both a planning to donation of excess edible 2030 Goal business and moral imperative. We are items and disposal of remaining % -0% committed to cutting our food waste inedible food. In 2020, we continued to -6% -50 by 50% by 2030, in alignment with improve our measurement capabilities -10% -13% -7% -15% -19% SDG 12.3. To achieve this ambitious around food waste, including -20% -13% -24% -25% -18% target, we are focused on driving a partnering with WWF and our industry -21% -28% -30% -31% -31% -32% -25% -35% true culture shift in our hotels. We peers to develop a standardized waste -28% -40% -32% have deployed our comprehensive measurement methodology for the -35% -37% -41% food waste reduction program to our hotel industry. Once finalized, this -50% -44% -62% hotels in the Americas, and we have methodology will enable hotels around -60% piloted our food waste program in our the world to better quantify food Managed Hotels -70% Asia Pacific and EMEA regions. Our waste, in order to measure and report All Hotels -80% -73% program, which leverages the Hotel progress against reduction targets. 08 09 10 11 12 13 14 15 16 17 18 19 20 Kitchen toolkit, guides hotels through
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
Addressing Saving lives SPOTLIGHT single-use plastics by recycling soap % We take the global issue of plastic 34 We are proud to have been the first pollution seriously as a threat to the of waste diverted from landfill hotel brand to make soap recycling communities, environments and (managed hotels only) a brand standard, and the first to set destinations in which we operate. We the commitment to send zero soap to also recognize that waste reduction landfill. We operate the largest soap is a critical focus for our guests. 1,400+ recycling program in the hotel industry, In 2020, we remained focused on hotels globally with over 88% of our portfolio partici- reducing unnecessary single-use items have implemented composting programs pating in soap recycling – including all CANOPY BY HILTON in our hotels, including integrating hotels in the U.S. and Canada. Used soap AUSTIN DOWNTOWN comprehensive waste reduction % from our guest rooms is collected by guidance into our Hilton EventReady 100 our housekeeping teams and sent to Solving for of our hotels in North America with CleanStay meeting and event participate in soap recycling our soap recycling partners, including sustainable hydration offering. We continue to evaluate Clean the World, Soap Aid, Soap Cycling Hilton is focused on reducing our opportunities to reduce unnecessary and Sundara, who sanitize the soap and consumption of single-use water single-use items. All of our hotels were turn it into new bars for donation. As bottles by solving for sustainable required to remove plastic straws, stir of the end of 2020, we have recycled hydration for all guests. Many of sticks and cocktail picks in 2019, and we our soap into more than 16 million new our hotels around the world have remain committed to continuing our bars that have been donated to those in implemented sustainable hydration transition from individual bath toiletries need, diverting over 2.5 million pounds solutions such as reusable drinking to full-size dispensers across our from landfill. The COVID-19 pandemic vessels, refill stations and closed- portfolio. The pandemic necessitated a resulted in this program becoming more loop bottling systems. We have delay in our deadline for implementing important in 2020 than ever before, and also removed plastic water bottles full-size bath dispensers. We are now we are proud that our hotels around the from all meetings and events at aiming to achieve full roll out by mid- world have continued to recycle soap– managed hotels in Asia Pacific and 2023, although many of our hotels and keeping waste from landfill and helping EMEA regions. brands are either already using full-size those who need it most. All of our hotels are required dispensers or planning to make this to offer filtered water stations upgrade well ahead of this deadline. where water is potable, but we identified that implementation was inconsistent across some of OUR EFFORTS CONTRIBUTE TO our brands and regions. To solve THE FOLLOWING SUSTAINABLE for this, in 2020 we convened DEVELOPMENT GOALS: a cross-departmental working group focused on standardizing our hydration requirements and holistically addressing Through Hilton's partnership with Clean the World sustainable hydration across our and other organizations, our soap has been recycled into more than 16 million new bars that have been global portfolio. donated to those in need around the world. 3.3 12.3, 12.5 14.1
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LEARN MORE Progress towards Amplifying our global impact our 2030 Goals through responsible sourcing
With global operations spanning 119 countries SPOTLIGHT and territories, we recognize the immense Inspiring a sea change economic, environmental and social impact through sustainable seafood we have through our supply chain. Diners experiencing the Asian and We are focused on integrating leading Engaging with European flavors on the menu at environmental and social considerations Hilton Singapore are finding another our supply chain reason to savor it all: incredibly into our sourcing practices. This includes fresh seafood that’s sustainably increasing our sourcing of certified To achieve our responsible sourcing caught and farmed. In 2015, Hilton sustainable products, identifying and goals, we engage closely with our Singapore became the first hotel in implementing services and technologies suppliers and encourage our business Asia to achieve Marine Stewardship that contribute to our Travel with partners to adopt their own sustainable Council (MSC) and Aquaculture practices, including setting science- Purpose objectives, and working Stewardship Council (ASC) Chain based carbon reduction targets with our suppliers to improve their of Custody certifications, meaning and conducting human rights due environmental and social practices in that seafood dishes identified line with our own expectations. diligence. All suppliers are encouraged with the respective ecolabels have to observe and abide by Hilton's been prepared with sustainable MSC-certified Rockling Fish dish at Opus Bar & Grill located at Hilton Singapore Responsible Sourcing Policy, which is seafood sources. Prior to Hilton included in all property contracts. In Singapore’s Chain of Custody 2020, we entered into a partnership certifications, consumers in and set a precedent for businesses with EcoVadis to assess our suppliers’ Singapore only had the option of beyond hospitality. In addition to sustainability risk and performance. purchasing MSC-and ASC-certified its sustainable seafood efforts, seafood produce and products at the hotel is also in the process of select supermarkets and seafood reviewing its menu to procure more purveyors in the country. Today, the locally farmed items, to support hotel’s MSC and ASC certifications local businesses and reduce the have helped raise awareness about carbon footprint of ingredients. sustainable seafood in the region
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ENERGY WATER WASTE RESPONSIBLE AND CARBON SOURCING
Our commitment to Protecting sustainable seafood animal welfare In partnership with WWF, Hilton is Hilton strives to work towards the legal, committed to responsibly sourcing ethical, humane treatment of animals all seafood globally by 2022. This across our value chain. Our approach includes banning the procurement to animal welfare is informed by the of endangered species, sourcing at “Five Freedoms” of care and codified in least 25% of our seafood globally from our Animal Welfare Statement. We are fisheries and farms certified by the most signatories to the World Travel & Tourism credible sustainability standards, the Council’s Declaration on Illegal Trade in Marine Stewardship Council (MSC) and Wildlife, committing to not knowingly the Aquaculture Stewardship Council purchase, utilize or facilitate the sale of (ASC), and ensuring the remaining illegally harvested wildlife products. portion of our seafood is working We have also committed to towards certification, sustainable source 100% of our shell, liquid and egg improvement or are on WWF green lists. products across our global portfolio from cage-free sources by the end of 2025. To support this goal, we have distributed our Cage-Free Egg Policy to all of our hotels, in 18 native languages. In 58 2020, in spite of significant challenges to hotels in our business, we maintained our positive trajectory towards our 2025 cage- free egg ambition. We also improved THE HILTON SEYCHELLES LABRIZ RESORT & SPA 7 the transparency and accuracy of our countries reporting by sharing our percentage of achieved MSC and/or cage-free eggs by volume instead of and inconsistent legal limits on how long ASC Chain of Custody certification by dollar spend. In the U.S., our largest sows are held in gestation crates. We market, 86% of our egg volume (82% continue to work with our pork suppliers shell, 88% liquid) was from cage-free to transition towards group-housed pork % sources at our Full Service and Luxury and gestation crate-free pork in these 86 branded hotels. For the U.K. and nine countries, and in additional markets as U.S. OUR EFFORTS CONTRIBUTE TO countries in Europe, this figure is 66% supply becomes available. THE FOLLOWING SUSTAINABLE % (61% shell, 78% liquid). By spend, cage-free Across our entire supply chain, we DEVELOPMENT GOALS: 66 eggs represent 89% of our egg spend in are dedicated to transparently sharing U.K. & Europe* the U.S. and 75% in the U.K. and Europe. our progress towards our animal welfare eggs from cage-free sources by volume for We continue to work towards our commitments as we work with our Hilton-managed Full Service and Luxury hotels goal of sourcing gestation crate-free hotels and suppliers. We also continue to pork for our Luxury and Full Service obtain guidance from NGOs and other hotels in the U.S. and Europe, but we face external experts as we work towards our 12.2, 12.5, 12.6 14.4, 14.b * Data available for Austria, Belgium, France, Germany, Italy, Netherlands, Poland, Spain, Portugal, Turkey limited availability in our supply chain commitments.
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TEAM MEMBER DIVERSITY AND INCLUSIVE HUMAN COMMUNITY DISASTER SUPPORT INCLUSION GROWTH RIGHTS SUPPORT RELIEF
The importance of engaging our local communities, supporting our Team Members, and promoting a culture of equity took on new meaning and new urgency in 2020. We took action to support our Team Members and our communities during this unprecedented year.
NICK LI, MANAGER OF SAFETY AND SECURITY AT HILTON CHENGDU, CHINA LEADS LOCAL VOLUNTEERING EFFORTS
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TEAM MEMBER DIVERSITY AND INCLUSIVE HUMAN COMMUNITY DISASTER SUPPORT INCLUSION GROWTH RIGHTS SUPPORT RELIEF
Supporting our Team Members in challenging times
Our industry faced unprecedented “Never did we think TO SUPPORT OUR FURLOUGHED challenges throughout most of 2020. TEAM MEMBERS, WE: our recruitment
• Continued to provide Hilton-sponsored As Hilton shifted into crisis response mode, healthcare coverage and a portion of pay team would be we made a commitment to do everything we • Offered tailored learning and placing Hilton development curricula from eCornell could to put our Team Members first. and other leading institutions Team Members • Maintained other Hilton benefits including access to our Team Member elsewhere…[but] we Assistance Fund, short-term disability, knew that this was Supporting our We prioritized supporting all our Team parental leave, life insurance, student loan refinancing, and Hilton University Team Members through Members during this difficult year, a moment where we the COVID-19 crisis including those who were personally impacted by COVID-19, as well as had to be even more In Hilton’s 101-year history, there has those who were furloughed, part of a committed to our never been an event more devastating workforce reduction, or who continued to the hospitality industry than the working through the crisis. We took We also created the Hilton Workforce values.” COVID-19 crisis. When the pandemic steps to ensure the health and safety Resource Center, a custom site used slowed travel to a standstill, we took of our teams, improve access to online to connect Hilton Team Members swift action to protect the core of our training materials, offer flexible working to temporary and permanent job business. In April, we made the difficult hours, reduce executive salaries to save opportunities at organizations decision to temporarily furlough a jobs, provide resources for financial experiencing COVID-19 hiring surges. significant percentage of our hotel and mental wellbeing and expand More than 150 organizations posted and corporate Team Members across our outplacement services. We also over one million jobs on the portal. This all levels. We also temporarily reduced activated our Team Member Assistance unprecedented demand is a testament salaries for corporate employees and Fund to financially support our Team to the power of our service culture LAURA FUENTES Executive Committee members, and Members and their families who were and the value of our Team Members’ Executive Vice President and Chief Human Resources Officer eliminated our CEO’s salary from April directly impacted by the virus. hospitality skills. 2020 through year-end.
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Our approach Expansion of our Team Protecting physical and Supporting learning and to pandemic-related cuts Member Assistance Fund mental health development 2020 tested our company’s resilience No one should face a disaster alone. When the virus struck, we acted All of our Team Members deserve a in ways we never could have predicted. Since 2016, we have partnered with immediately to ensure the safety and development path that enables them Despite our best efforts, the financial Global Impact to implement our Team wellbeing of our Team Members around to thrive, even during the most difficult impacts of the pandemic forced us to Member Assistance Fund (TMAF), the world by implementing our Hilton of times. Through Hilton University, reduce our global corporate workforce which provides monetary support to CleanStay health and safety protocols, our Team Members around the world by 30 percent. The decision to separate our managed and franchised hotel and creating social distancing guidelines can access over 25,000 courses and these Team Members was heart- corporate Team Members impacted by and signage, and providing PPE. We also pursue job certifications across a wrenching. We sought to maintain disaster and hardship. In 2020, we: provided job stability for those who were number of areas. We believe everyone transparency and provide support • Distributed nearly $500,000 to diagnosed or needed to quarantine. at Hilton is a leader, which is why all throughout this process, including more than 130 Team Members and In addition to physical health Team Members also have access to the providing severance pay, access to their families to help cover medical and safety, we took steps to protect Lead@Hilton leadership development Hilton’s outplacement service, and expenses, groceries, and child or elder our Team Members’ mental health platform, which includes content from extended access to Go Hilton travel care for those who contracted the by offering mental health resources, best-in-class partners like eCornell and discounts and Hilton Honors status. We COVID-19 virus. maintaining consistent, open Harvard. In 2020, Hilton Team Members hope our former Team Members will be communication from our leaders, and completed an average of nearly 40 able to return to the Hilton family, and all • Activated the TMAF for Team operating with transparency during hours of training per person. We of our alumni will receive an expedited Members to make monetary and this challenging time. also support our employees seeking recruitment process when we are able Hilton Honors Points donations education outside of Hilton, providing to rebuild our workforce. to support their Hilton colleagues assistance to Team Members earning directly impacted by COVID-19. their GED, completing a college degree • Supported Team Members who faced or pursuing a graduate certificate. other disasters and personal hardships throughout the year, including those impacted by the Beirut Port Explosion, Malaysia flooding, U.S. West Coast wildfires, and the multiple severe hurricanes that struck countries along the Atlantic Ocean.
1m $500k $26m 40+ job opportunities distributed to accessed by hours of learning posted on the Hilton Team Members Team Members undertaken Workforce Resource to support expenses without penalty on average per Team Center related to contracting though the 401K Member in 2020 the virus Cares Act HILTON BALTIMORE BWI AIRPORT
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TEAM MEMBER DIVERSITY AND INCLUSIVE HUMAN COMMUNITY DISASTER SUPPORT INCLUSION GROWTH RIGHTS SUPPORT RELIEF
LEARN MORE Our Diversity & SPOTLIGHT Building a diverse and Inclusion programs inclusive workplace