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2013SUSTAINABILITYREPORT MandarinOrientalHotelGroupCorporateOfce281GloucesterRoadCausewayBayHongKongmandarinoriental.com DelightingourGuests13EmployerofChoice14ColleagueDevelopment16SourcingResponsibly19HealthandWellness22SafeSoundSustainable24DeliveringExcellence11Introduction2AboutMandarinOrientalHotelGroup3MessagefromtheCEO4AboutthisReport5ActingwithResponsibility6CommitmentsandPractices9CulturalHeritage46CommunityProgrammes48TableofContentsFutureDirections54APPENDICESSustainabilityAwardsandCertifications55GRIIndex56PerformanceData58Endnotes63ReducingEnergyConsumption32ReducingEmissions36ReducingWaste39ReducingWaterConsumption42AdvancingSustainability29ChampioningCommunity45 2MandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalGuangzhouMandarinOrientalBangkokTheLandmarkMandarinOrientalHongKongMandarinOrientalHongKongTheExcelsiorHongKongMandarinOrientalJakartaMandarinOrientalKualaLumpurMandarinOrientalMacauMandarinOrientalManilaMandarinOrientalSanyaMandarinOrientalPudongShanghaiMandarinOrientalSingaporeMandarinOrientalTokyoMandarinOrientalAtlantaMandarinOrientalBostonMandarinOrientalLasVegasMandarinOrientalMiamiMandarinOrientalNewYorkMandarinOrientalSanFranciscoMandarinOrientalWashingtonD.C.MandarinOrientalBarcelonaMandarinOrientalGenevaMandarinOrientalHydeParkLondonMandarinOrientalMunichMandarinOrientalParisMandarinOrientalPragueTheGroupnowoperatesorhasunderdevelopment44hotelsin25countries20inAsia10inTheAmericas14inEuropeMiddleEastandNorthAfrica 3MandarinOrientalHotelGroupSustainabilityReport2013INTRODUCTIONAboutMandarinOrientalHotelGroupMandarinOrientalHotelGroupisaninternationalhotelinvestmentandmanagementgroupwithluxuryhotelsresortsandresidencesinsought-afterdestinationsaroundtheworld.Havinggrownfromawell-respectedAsianhotelcompanyintoaglobalbrandtheGroupnowoperatesorhasunderdevelopment44hotelsrepresentingcloseto11000roomsin25countrieswith20hotelsinAsia10inTheAmericasand14inEuropeMiddleEastandNorthAfrica.InadditiontheGroupoperatesorhasunderdevelopment13ResidencesatMandarinOrientalconnectedtoitsproperties.TheGrouphasequityinterestsinanumberofitspropertiesandnetassetstotallingapproximatelyUS3.1billionasof31stDecember2013.MandarinOrientalsaimistoberecognisedwidelyasthebestgloballuxuryhotelgroupproviding21stcenturyluxurywithorientalcharmineachofitshotels.ThiswillbeachievedbyinvestingintheGroupsexceptionalfacilitiesanditspeoplewhilemaximisingprofitabilityandlong-termshareholdervalue.ThestrategyoftheGroupistoopenthehotelscurrentlyunderdevelopmentwhilecontinuingtoseekfurtherselectiveopportunitiesforexpansionaroundtheworld.FormoreinformationaboutthedirecteconomicvaluegeneratedanddistributedbyMandarinOrientalHotelGroupincludingrevenuesoperatingcostsemployeecompensationandpaymentstoprovidersofcapitalandgovernmentspleaserefertotheAppendixp.58ofthisreport.TheparentcompanyMandarinOrientalInternationalLimitedisincorporatedinBermudaandhasitsprimarylistingontheLondonStockExchangewithsecondarylistingsinBermudaandSingapore.MandarinOrientalHotelGroupInternationalLimitedwhichoperatesfromHongKongmanagestheactivitiesoftheGroupshotels.JardineMathesonGroupistheparentcompanyofMandarinOrientalandownsamajorityoftheequityshares.FormoreinformationaboutMandarinOrientalscorporatestructuregovernanceorforourfullfinancialdisclosurepleaserefertotheGroupsAnnualFinancialReportavailableonourwebsiteatmandarinoriental.com. 4MandarinOrientalHotelGroupSustainabilityReport2013DoingMoreforaSustainableFutureAtMandarinOrientalweunderstandthatourlong-termsuccessdependsonthehealthandprosperityofthecommunitiesinwhichwedobusiness.Wereproudtoembraceourcorporateresponsibilitieswiththesamededicationandenthusiasticservicethathavedistinguishedourcompanyforthepastvedecades.InthisourthirdannualSustainabilityReportwehighlighttheGroupscollectiveinitiativestoadvanceenvironmentalsustainabilityandtostrengthenthecommunitiesinwhichweoperate.WiththeguidanceoftheGroupsCorporateResponsibilityCommitteeandthecommitmentofhotelcolleaguesworldwidewemademeaningfulprogressonoursustainabilityprioritiesincludingthesenotableaccomplishmentsWeincreasedenergyefciencyby13.4andreducedgreenhousegasemissionsintensityby17.8overtheperiod20072013.OurconservationgainswereattainedevenastheGroupexpandedoperationsworldwide.WerealisedUS28.8millionincostsavingsfrom2007to2013byimplementingstrategicenergyefciencyinitiatives.Welaunchedadedicatedsustainabilitytrainingprogrammein2013toencouragegreaterawarenessandengagementamongstourcolleagueswhoremainourmostvaluableresource.Wesupportedmanyworthycausesinourcommunitieswithaspecialfocusonculturalheritagepreservationandcharitableprogrammestoassistthoseinneed.Wewillcontinuetomakeprogresstowardsourgoalsandinsodoingwearecommittedtoaddressingoursustainabilitychallenges.Ourwastereductionprogrammeisinearlystagesbutwearereadytotakeonthechallengeofimprovingourwastemanagementprocessesinordertomeetourgoals.Thishighlightstheimportanceofsettinggoalsinordertoachieveourlong-termobjectives.In2013theGroupestablishednewshort-termenvironmentalgoalswhicharedetailedwithinthisreportandeveryMandarinOrientalhotelreceivedindividualgoalstohelpdrivetheirperformance.WhilstmoreworkliesaheadImcondentthatwewillcontinuetomakegoodprogressonourjourneytowardsamoresustainablefuture.EdouardEttedguiGroupChiefExecutiveWiththeguidanceoftheGroupsCorporateResponsibilityCommitteeandthecommitmentofhotelcolleaguesworldwidewearemakingmeaningfulprogressonoursustainabilitypriorities. 5INTRODUCTIONMandarinOrientalHotelGroupSustainabilityReport2013AboutThisReportThisistheGroupsthirdannualsustainabilityreport.InformationpresentedinthisreportisconsistentwithGlobalReportingInitiativeGRIsustainabilityreportingframework3.1self-reportedtoLevelC.Inprioryearsthereporthasbeenassuredbyathirdpartyandweintendtoseekassuranceforfuturepublications.AGRIIndexisincludedattheendofthisreport.ScopeandBoundariesThissustainabilityreportpresentsinformationfromtheGroups27hotelsthatoperatedthroughout2013.Unlessotherwisespecifiedthereportexcludestwohotelswhichopenedin2013MandarinOrientalPudongShanghaiandMandarinOrientalGuangzhou.OnehotelinChiangMaiThailandalsolefttheGroupin2013.Nootherstructurechangesoccurredinthereportingperiod.Hotelsunderdevelopmentandresidencesarenotincludedinthisreport.MandarinOrientalHotelGroupselected2007asthebaseyearfortheenvironmentaldatainthisreportand2008asthebaseyearforoccupationalhealthandsafetydata.Asstructurechangesoccurhistoricalandbaseyeardataareadjusted.Economicinformationispresentedforthepastthreeyears.AllcalculationsarecompletedinaccordancewithindustrypracticesorasrecommendedbytheGRIandareexplainedwithineachsection.Therearenorestatementsofhistoricaldatainthisreportotherthantoaccommodatethechangeintheorganisationalstructurenotedabove.MaterialityTheGroupbelievesthattheGRIaspectsincludedinthisreportarematerialtoourbusiness.Aformalprocesswillbeundertakenin2014todetermineifadditionalGRIaspectsarematerialandshouldbeincludedinfuturereporting.OurCorporateResponsibilityPolicyMandarinOrientaliscommittedtocontributingtothecommunitiesinwhichweoperateandresponsiblymanagingourenvironmentalimpactsandsocialcommitments. 6MandarinOrientalHotelGroupSustainabilityReport2013ActingwithResponsibilityThefoundationforMandarinOrientalsresponsiblebusinesspracticesliesinourGuidingPrinciplesourCodeofConductandinourgovernanceprocess.GuidingPrinciplesMandarinOrientalsmissionistocompletelydelightandsatisfyourguestsandourmissionissupportedbyourlong-standingGuidingPrinciplesthatdescribethevaluesofourcompanyandourcolleagues.OurGuidingPrinciplesunderpineverythingthatwedoonadailybasisensuringthatweoperatetothehighestpossiblestandards.ResponsibilityisakeytenetofMandarinOrientalsGuidingPrinciplesWewillactivelyparticipateintheimprovementoftheenvironmentjustaswewillberesponsiblemembersofourcommunitiesandindustryorganisations.ResponsibleOperatingPracticesOurethicalstandardsareclearlysetoutinthecompanysCodeofConductasetofguidelinestowhicheverycolleaguemustadhere.OurCodeofConductrequiresthatwecomplywithalllawsofgeneralapplicationallrulesandregulationsthatareindustryspecificandproperstandardsofbusinessconduct.Thecodeprohibitsthegivingorreceivingofillicitpaymentsandrequiresallcolleaguestobetreatedfairlyimpartiallyandwithrespect.ItalsorequiresthatallmanagersmustbefullyawareoftheirobligationsundertheCodeofConductandmustestablishprocedurestoensurecomplianceatalllevelswithintheirorganisations.TheGrouphasinplaceproceduresbywhichcolleaguescanraiseinconfidencemattersofseriousconcerninareassuchasfinancialreportingorcompliance.MandarinOrientalhasGroup-widehiringandemploymentguidelinesaswellasstrictanti-harassmentandanti-discriminationpolicies.Everycolleaguereceivestrainingonouremploymentpoliciesuponhire.GovernanceforSustainabilityTheGroupCorporateResponsibilityCommitteeGCRCisresponsibleforMandarinOrientalsoverallAllhotelsdisplayaframedposteravailableineightlanguagesoftheGroupscorporateresponsbilitypolicyandcommitmentsinemployeeareastopromoteoursustainabilityvisionandvalues. 7INTRODUCTIONMandarinOrientalHotelGroupSustainabilityReport2013sustainabilitystrategyincludingthesettingofmeasurablegoalsprogrammedevelopmentandpromotingandsolicitingfeedbackonCorporateResponsibilityinitiatives.TheGCRCisdirectedbyoursustainabilityExecutiveChampionTerryStinsonGroupDevelopmentDirectorandPresidentoftheAmericasandanexecutive-levelmemberofthemanagementboard.InadditioneveryMandarinOrientalpropertyalsohasitsownHotelCorporateResponsibilityCommitteeHCRCledbyadesignatedChampion.EachHCRCisresponsibleforimplementingGroupandlocalsustainabilityinitiativeswiththesupportofourcolleagues.ThehotelChampionsareresponsibleforraisingissuesidentifiedatthehotelstotheirGeneralManagersandtotheGCRCwhichinturnraisesissuestotheExecutiveChampionandtheBoardofDirectorsifnecessary.In2013theGCRCheldtwomeetingsanditsrepresentativeconductedregionalconferencecallswithhotelChampionstwiceduringtheyear.TheseconferencecallswerecreatedtoshareinformationrelatedtosustainabilityinitiativesguidelineschallengesandactivitiesunderwaythroughouttheGroup.HotelChampionscontinuethesustainabilitydialoguewithpeersbycommunicatinginternallyanddrivinggreatercolleagueengagement.StakeholderEngagementWerecognisetheimportanceofengagingourstakeholderstounderstandtheirviewpointssowecanbetteralignourbusinesswiththeirgoals.ToadvancedialoguewithourstakeholdersMandarinOrientalsharesboththesuccessesandchallengesofoursustainabilityprogramme.SustainabilityGovernanceOrganisationGroupCorporateResponsibilityCommitteewithExecutiveChampionHotelCorporateResponsibilityChampionsHotelCorporateResponsibilityCommitteesColleaguesOurstakeholderengagementprocesshasevolvedoverourlonghistoryratherthanasaresultofaformaldefinedprocess.WehaveidentifiedthefollowinglistofstakeholdergroupstodateGuestsColleaguesHotelownersanddevelopersLocalcommunitiesinwhichweoperateShareholdersVendorssuppliersandcontractorsIndustrypeersandtradeassociationsJournalistsandmediarepresentativesNon-governmentorganisationsNGOsandoutsideadvisorsWeengageourstakeholdersthroughvariousavenuesofcommunicationincludingourcolleagueengagementandguestsatisfactionandloyaltysurveysinvestormeetingsandthepublicationofourannualnancialandsustainabilityreports.Wewillcontinuetouseexistingprocessesforfeedbackandreneourstakeholderengagementstrategyasweprogressonoursustainabilityjourney. 8MandarinOrientalHotelGroupSustainabilityReport2013OurGuidingPrinciplesWewillstrivetounderstandourclientandguestneedsbylisteningtotheirrequirementsandrespondinginacompetentaccurateandtimelyfashion.Wewilldesignanddeliverourservicesandproductstoaddresstheirneeds.Infactwearecommittedtoexceedingtheirexpectationsbysurprisingthemwithourabilitytoanticipateandfullltheirwishes.Wewillemphasisethesharingofresponsibilityaccountabilityandrecognitionthroughaclimateofteamwork.ByworkingtogetherascolleaguesandbytreatingeachotherwithmutualrespectandtrustwewillallcontributetotheGroupsoverallsuccessmoreproductivelythanifweworkedalone.WearecommittedtoeveryoneatMandarinOrientalbyprovidingacaringmotivatingandrewardingenvironment.Asanindustryleaderwearecommittedtobringingoutthebestinourpeoplethrougheffectivetrainingandmeaningfulcareerandpersonaldevelopmentandbyencouragingindividualityandinitiative.Wewillbeaninnovativeleaderinthehotelindustryandwillcontinuallyimproveproductsandservices.Wewillseekfromoursuppliersthehighestqualityproductsandservicesatthebestvalue.Wearecommittedtobeingagrowingcompany.Oursuccesswillresultininvestmentreturnswhichareconsistentlyamongthebestinthehotelindustry.Wewillmaintainintegrityfairnessandhonestyinbothourinternalandexternalrelationshipsandwillconsistentlyliveuptoourcommitments.Wewillactivelyparticipateintheimprovementoftheenvironmentjustaswewillberesponsiblemembersofourcommunitiesandindustryorganisations.DeliveringshareholdervaluePlayingbytherulesActingwithresponsibilityBeingthebestPromotingaclimateofenthusiasmWorkingtogetherascolleaguesDelightingourguests 9INTRODUCTIONMandarinOrientalHotelGroupSustainabilityReport2013CommitmentsandPracticesAsstatedinourcorporateresponsibilitypolicyMandarinOrientaliscommittedtocontributingtothecommunitiesinwhichweoperateandresponsiblymanagingourenvironmentalimpactsandsocialcommitments.CommitmentsCorporateResponsibilityPracticesDeliveringExcellenceOperateinanenvironmentallyandsociallyresponsiblewayThroughtrainingandeducationweareempoweringourcolleaguestomakedecisionsthatareenvironmentallyandsociallyresponsible.Managementresponsibilityisassignedandresourcesareallocatedtoimplementandreviewperformanceofcorporateresponsibilitypolicycommitmentsandobjectives.EngageandinspireothersinDoingMoreforaSustainableFutureStakeholdersareconsultedandtheirfeedbackissolicitedtocontinuouslyimproveourperformance.TheGroupandourhotelspartnerwithmembersoftheirlocalcommunitiesthehotelandtourismsectorgovernmentandnon-governmentorganisationstoachievebroadersustainabilitygoals.AdvancingSustainabilityPubliclyreportourimpactontheenvironmentTheGroupwilleffectivelymeasureandmonitortheenvironmentalfootprintofallouroperationstopubliclyreportonourprogress.MeetorexceedallapplicableenvironmentalstandardsTheGroupisincorporatingenvironmentalmanagementsystemsandbestpracticesintoourhoteloperationstocontinuouslyimproveperformance.MinimiseourconsumptionofresourcesincludingenergywaterandmaterialsOurpropertieswillemploysustainablebuildingprinciplesthroughoutthelifecycleofthebuildingsitingdesigndevelopmentmaintenanceandrefurbishmentwhereverpracticable.ReduceourgreenhousegasemissionswasteandpollutionTheGroupwilldevelopsustainablesupplychainmanagementguidelinestoensurethatenvironmentalcriteriaaretakenintoaccountinallpurchasingdecisions.Innovationandtechnologyareusedtograduallyreduceourdependenceonfossilfuelsandimproveresourceefficiencyinallareasofouroperation.ChampioningCommunityPositivelyimpactourlocalcommunitiesandcelebrateourculturalheritageAllcolleaguesareencouragedtoparticipateinprojectsthatcontributetothewell-beingofthecommunitiesinwhichtheyoperateprojectsthathelpthoseinneedpreserveculturalheritageconservenaturalresourcesandrestorehabitats. 10MandarinOrientalHotelGroupSustainabilityReport2013 MandarinOrientalsmissionistocompletelydelightandsatisfyourguests.Wearecommittedtomakingadifferenceeverydaycontinuallygettingbettertokeepusthebest.DeliveringExcellence 12MandarinOrientalHotelGroupSustainabilityReport2013DELIVERINGEXCELLENCEMandarinOrientalsreputationforprovidinglegendaryserviceisthehallmarkofourbrand.OurapproachestoguestsatisfactionemploymentcolleaguedevelopmenthealthandwellnessresponsiblesourcingandsafetyplayanimportantroleinfulllingourmissionanddistinguishingtheMandarinOrientalbrand. 13DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013DelightingourGuestsMandarinOrientalslegendaryserviceunderpinseverythingthatwedoandtheGroupiscommittedtoexceedingguestsexpectationsonadailybasis.Wefocusonprovidingpersonalisedservicetoeveryguesteverydayandonthesincerityofthepeoplewhodeliverit.Weencouragecolleaguestoknowourgueststoanticipatewhattheywantinordertosurpriseanddelightthem.TohelpourcolleaguesontheirmissiontheGrouphascreatedtheLegendaryQualityExperiencesover200companyguidelineswhichfocusonexperiencesratherthanbasicluxurystandards.AllhotelsreceivethreeannualauditsforqualityassuranceandtheresultsaresharedacrosstheGroup.MandarinOrientalmaintainsvariousqualitymeasurementprocessestomonitorandimproveperformanceincludingtheinternationalbenchmarkingstandardsestablishedbyLeadingQualityAssurance.WearealsomeasuredagainstotherinternationalstandardsincludingtheAmericanAutomobileAssociationAAAtheForbesTravelGuideandtheMichelinGuide.In2013eightMandarinOrientalhotelsachievedtheForbesFive-Starstatusandnineofourrestaurantswerehonouredwithatotalof13Michelinstarsmorethananyotherhotelgroupintheworld.GuestSatisfactionFeedbackfromourguestsisvitaltooursuccess.Weconductacustomersatisfactionandloyaltysurveywiththehelpofathird-partyorganisationthatsendsanonlinequestionnairefollowingaguestsstay.TheGroupreceivesover35000guestsatisfactionsurveysannuallywhicharemeasuredandanalysedtohelpensureconstantimprovement.MandarinOrientalsoverallsatisfactionratingsindicateaconsistentlyhighlevelofguestsatisfactionandloyaltytothebrandvaryinglessthanthreepercentagepointssince2009.In2013weachievedanoverallsatisfactionrateof87consistentwithlastyearsperformance.GuestSatisfactionandLoyaltySurveyResults020406080100908888878720092010201120122013 14MandarinOrientalHotelGroupSustainabilityReport2013EmployerofChoiceThecolleaguesatMandarinOrientalaretheGroupsmostprizedassetastheybringaqualityandcommitmenttotheirworkthatisexceptionalintheworldofluxuryhospitality.ToattractandretainthenesthospitalityprofessionalsMandarinOrientalprovidesamotivatingandrewardingenvironmentinwhichourcolleaguescanthrive.AsapolicyMandarinOrientalcolleaguesaretobetreatedwithrespectcourtesyanddignityandtheyaretoworkincleanpleasantandsafeenvironments.Wearecommittedtoprovidingeffectivetrainingandmeaningfulcareerdevelopment.Wealsomaintainanopen-doorpolicycreatinganatmosphereofharmonyandpromotingacultureoffairnessforallcolleagues.OurcolleaguebrandpromiseisthateachcolleaguewillbepersonallyvaluedandthisissupportedbyourcolleaguebrandbeliefsofRespectHarmonyPassionandGrowth.OurWorkforceAsofDecember2013MandarinOrientaldirectlyemployed12095colleaguesinitsoperatinghotelsandcorporateoffices.Full-timecolleaguescomprised91ofthetotalworkforcewhilst3wereemployedparttime.Theremaining6wereemployedonacasualnon-contractbasis.Themajorityoftheworkforceconsistedofline-staffrepresenting76ofthepositionsincludingcasualcolleagues.Managersandexecutivesmadeuptheremainderoftheworkforceat22and2respectively.WemeasureemployeesatisfactioneachyearwithourColleagueEngagementSurveyavoluntaryandanonymousonlinequestionnairethatisissuedtotheentirehotelworkforce.Responsetooursurveyin2013was96andrevealedan86favourableexcellentoraboveaveragerating.Since2010thepercentageofcolleaguesratingMandarinOrientalHotelGroupasfavourablehasincreasedbyonepercentagepointyearoveryear.NewHiresandTurnoverMandarinOrientalexperiencedaglobalturnoverrateof28.2in2013whichisbelowthecurrentindustryaverageof29.31.GeographicallytheAmericasexperiencedthelowestturnoverrateat22.2followedbyAsiaandEuropewith27.4and42.5respectively.Colleaguesovertheageof50werethemoststableagegroupwithaturnoverrateof13.6followedbycolleaguesbetween3050yearsold23.1andcolleagues30yearsoldandyounger40.9.Regardingemploymenttypecolleaguesworkingincorporateandexecutivepositionsarethemoststablewithaturnoverrateof13.3. 15DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013In2013267colleaguesutilisedparentalleaveincluding112menand155women.Ofthesecolleagues231returnedincludingallmen100and119women76.8.Thisrepresentsan87returnrateoverall.DiversityandEqualOpportunityattheCoreofourCompanyAsaglobalemployerofchoiceMandarinOrientalvaluesdiversityandpromotesopportunitiesforallcolleaguesindependentofraceethnicitynationalityandgender.Reflectingthelocationofourhotelsaroundtheworldthemajorityofourcolleagues60.7arebasedinAsia.Duetothenatureofourbusinessmostofourcolleagues74arelocaltotheoperationincludingmanagersandexecutives75.Localisdefinedasresidingnearahotelslocationforsixmonthspriortoemployment.Managersaredefinedascolleaguesdirectingadepartmentorgroupofcolleagues.CorporateleadershipincludingtheoperatingcommitteeandMandarinOrientalHotelGroupsboardofdirectorsiscomprisedofmoremen63andEuropeannationals90thanthecompanyasawhole.Seniorleadershipandtheindividualhotelsaremoreethnicallydiversethancorporateleadershipandarerepresentativeofthelocalpopulation.Womenmakeup46ofourtotalworkforceandthegenderbalanceacrosscolleaguecategoriesisgenerallyequal.Thenumberoffemalemanagersincreased11between2012and2013andrepresentsthefastestgrowingcolleaguecategory.Weareproudtobeadiversecompanywithaglobalfootprint.In2013atotalof133nationalitieswererepresentedinourworkforceofover12000colleagues.ChineseandU.S.citizenscomprised35ofourtotalworkforce.MandarinOrientalHydeParkLondonhasthemostdiverseworkforceintheGroupwithcitizensfrom60countriesrepresented.ComprehensiveBenefitsAsanindustryleaderMandarinOrientalofferscompetitivebenefitsthatareinlinewithourcommitmenttoprovideamotivatingandrewardingenvironmentforallcolleagues.Benefitstofull-timecolleaguesalthoughvaryingbylocationtypicallyconsistoflifeinsurancehealthcaredisabilityparentalleaveandretirement.Part-timeandcasualcolleaguesreceivebenefitsasrequiredbylocallabourlawsandconditionsandaregenerallypro-ratedbasedonthenumberofhoursworked. 16MandarinOrientalHotelGroupSustainabilityReport2013ColleagueDevelopmentWearepassionateaboutthegrowthofourcolleaguesateveryleveloftheorganisationinourhotelscorporateofficesandaroundtheglobe.Ourcolleaguesaspiretobethebestandwesupportthemallthewaybyprovidingrewardingandmemorablelearningexperiencesaswellaseffectivecareerdevelopmentopportunities.UponcommencementwiththeGroupnewcolleaguesfollowourextensiveMOveInorientationprocesswhichintroducesthemtoouruniquecompanycultureandourorientalheritage.ArangeofLearningandDevelopmentprogrammesareprovidedtoaddressthecompetencyrequirementsateachlevelofourorganisationaswellasindividuallearningneeds.PerformanceandsuccessionmanagementiscriticaltosupportthegrowthplansofourGroupaswellastosatisfythecareeraspirationsofourcolleagues.AnnualperformanceandsuccessionplanningreviewsarecompletedatalllevelsoftheorganisationandarereviewedbytheGroupsseniormanagementteam.Regularfeedbackprocessesensurethatcolleaguesareawareoftheirpotentialcareerprogress.TrainingforExcellenceLeadershipandpersonaldevelopmentcoursesatMandarinOrientalareconductedthroughtheGroupsLearningFrameworkaroadmapforcolleaguedevelopmentbasedontheircurrentandfuturecareergoals.Ourcolleaguesparticipateinvarioustraininganddevelopmentprogrammesasoutlinedbelowtohelpachievetheirgoals.OurPerformanceTrainingTrainingforcompetencyratherthanhoursoftrainingisourwaytoensuresuccess.Whilemuchofourtrainingisnotformallyrecordedwemeasureverycarefullywhethereachcolleagueisabletoperformthetasksofhisorherjobtotherequiredstandard.Ourtrainingispersonalisedratherthanaone-ts-allapproachandfocusesontheskillsandabilitiesneededtoperformeachposition.In2013MandarinOrientalHotelGroupconducted211LeadershipTrainingsessionsincludingTrain-the-TrainerMOveUpandMOveForwardprogrammes.Atotalof71ofMandarinOrientalscolleaguesreceivedperformanceandcareerdevelopmentreviewsduringtheyearwithabreakdownof73formalecolleaguesand68forfemalecolleagues.TrainingProgrammesMOveInAnextensiveorientationduringthefirst90daysofemploymentMOveUpAsix-monthcoursefocusedoncompetencybuildingandindividualandteamleadershipskillsMOveForwardAwide-rangingmanagementdevelopmentprogrammetoenhancebusinessskillsandleadershipqualitiesMBAExecutiveProgrammeAcompany-fundedprogrammewiththeRoyalMelbourneInstituteofTechnologyRMITachievedovera35yearperiodPARTICIPANTSAllColleaguesPARTICIPANTSExperiencedManagersDepartmentHeadsandExecutiveCommitteePARTICIPANTSSupervisorsJuniorManagersPARTICIPANTSHotelandCorporateSeniorManagers 17DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013ExcellenceinActionThepinnacleofourLearningandDevelopmentprocessisourin-houseExecutiveMBAprogrammeofferedinconjunctionwiththeRoyalMelbourneInstituteofTechnologyRMIT.ThisrigorousbusinessdevelopmentprogrammeisavailabletoseniorcolleagueswhoarenominatedbymanagementandendorsedbyourGroupChiefExecutive.TheGroupcoverstuitionandtravelexpensesaswellasthetimenecessaryforcolleaguestocompleterequiredcourseworkwhetherthroughonlinelearningmodulesorface-to-faceresidentialprogrammesatRMITandotherMandarinOrientalhotels.ItisanimportantstrategyforMandarinOrientaltodevelopandpromotefromwithinwhereverpossiblesaysJacquelineMoyseMandarinOrientalsHeadofOrganisationalDevelopment.OurMBAprogrammestrengthensourtalentpipelineintheorganisationsupportingthegrowthofourseniormanagersbybetterequippingthemforlifelonglearningandpreparingthemformoreseniorroleswiththeGroupinthefuture.In2013theGroupsponsoredelevencolleaguesintheMBAprogrammeandaddedanewcoursetothecorecurriculumentitledCorporateSocialResponsibilityandtheLaw.AspartofthecourseworkparticipantsevaluatedtheGroupscurrentsustainabilityprogrammeandprovidedfeedbackonwaystoimprove.AlexHysbergueDirectorofITatMandarinOrientalHongKongisamongthecurrentMBAprogrammeparticipantsandheembracedthestudyofMandarinOrientalscorporateresponsibilityefforts.TheassessmentofoursustainabilityprogrammewithinourMBAcourseworkshowedmehowfarwehavecomeasacompanyandhowmuchmorewecanandshoulddo.Italsoopenedmyeyestothedifferentinfluencesthatstakeholdershaveonanorganisation.TheMBAprogrammehasalastingprofessionalandpersonalimpactonitsgraduatessuchasJillGohOperationsManagerAsia.Sincecompletingherthree-yearMBAprogrammein2010Jillhascontinuedtogrowwithinthecompany.Ivegainedvaluableskillsandinsightsthathavehelpedpropelmyworktohigherlevelsofexcellence.TheMBAhasbroadenedmyperspectiveandalsogivenmeaconfidenceboost.Ifeelpreparedforanythingthatcomesmyway.MandarinOrientalsExecutiveMBAProgrammeJacquelineMoyseMandarinOrientalsHeadofOrganisationalDevelopmentcenterwiththeExecutiveMBAClassof2013 18MandarinOrientalHotelGroupSustainabilityReport2013SustainabilityTrainingInordertooperateourhotelsmoresustainablywemustempowerourcolleaguestomakesociallyandenvironmentallysounddecisions.Webelievethatempowermentbeginswitheducation.In2013wefullledourcommitmenttolaunchadedicatedSustainabilityTrainingProgrammeforallcolleagues.Thetwo-and-a-halfhourcourseisdesignedtoimproveourcolleaguesknowledgeofsustainabilityissuesandreinforcethevalueofsustainablepracticesatMandarinOriental.AllcolleagueswillcompletetheSustainabilityAwarenessTrainingprogrammebyJune2014anditwillthenbecomepartofthemandatoryMOveInorientationprogrammefornewcolleagues.ThroughoursustainabilitytrainingcolleaguesgainaglobalperspectiveonenvironmentalissuesimportanttoMandarinOrientalsbusinessanddiscussissuesofconcernintheirlocalcommunities.Tobuildontheglobalandlocalawarenessachievedduringthesessioncolleaguesleavethetrainingwithanactionplantomakeadifferenceintheworkplaceathomeandintheirlocalcommunities.Thiscommitmenttoactionisfurthersupportedbymaterialavailableinthesustainabilitysectionofourcompanysintranetwhichincludescurrentandpastsustainabilityreportsandbestpracticeinformationuploadedbyfellowcolleagues.WithgreaterawarenesscolleaguesaregettinginvolvedandndingcreativewaystodemonstratetheircommitmenttoDoingMoreforaSustainableFuture.AsanexamplecolleaguesatMandarinOrientalKualaLumpurheldapaintingcontestbetweendepartmentstocreateback-of-housemuralswithacorporateresponsibilityandenvironmentaltheme.AllhotelsdisplayaframedposteroftheGroupssustainabilitycommitmentsavailableineightlanguagesincolleagueworkspacestopromoteourcorporateresponsibilityvisionandvalues.Initiativessuchasthesehelpdrivegreatercolleagueengagementandfurtherourabilitytoachieveourimportantsustainabilitygoals.SustainabilityTrainingPamphletaboveisdesignedtoreinforcetheGroupsSustainabilityguidelinesandthecommitmenttoDoingMoreforaSustainableFuture. 19DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013SourcingResponsiblyMandarinOrientalencourageseachhoteltoleveragelocalandsustainablesuppliersfortheirproductsinordertohelpprotectthefutureavailabilityofthosegoods.Throughsustainablesourcingweactivelysupportandengagethecommunitiesinwhichweoperate.FromhousekeepingtofoodandbeverageMandarinOrientalcontinuallydevelopsuniqueopportunitiesforsustainablesourcingineachaspectofitsdailyoperations.Whilewemaynotbeabletosourceallproductslocallyitisenrichingtondsuppliersthatbringlocalcultureandavourstoourguestsandhelpprovideemploymentinourcommunities.CleanersandConsumablesThroughtheiringredientsmanufacturingprocesspackaginguseanddisposalcleanershaveaconsiderableimpactonboththeenvironmentandhumanhealth.AtMandarinOrientalwefullyacknowledgethepotentialriskswhenevaluatingourproductsandassuch70ofourhotelshaveselectedEcolabAquanomicforuseintheirlaundryandcleaningoperations.PropertiesthatcurrentlyutiliseEcolabAquanomicproductsseereducedchemicalusageaswellasuptoa40reductioninenergyandwaterusewhencomparedtotraditionallaundryoperations.Thesereductionsaredueinparttothestreamlinedwashprocessandsubsequentlowerwatertemperatures.HousekeepingcolleaguesatseveralMandarinOrientalpropertiesaremakingstridestowarduseofbio-degradablechemicalsovermoretraditionalcleaners.ForexampleMandarinOrientalHongKongusesEcolabAquanomicproductsforsurfacecleaning.Whilsteachhotelcurrentlyselectscleaningproductsbasedonindividualneedsanoverallapproachtocleanerswillbeconsideredaspartofalargerprograminthenearfuture.AsastartintheAmericasregionwearedelightedtopartnerwithhospitalityprocurementservicecompanyAvendratohelpinleveragingbuyingpowerwithkeysuppliersofcleanersandconsumableswhilstbeingmindfuloftheenvironmentandoverallquality.WithawiderangeofavailablesuppliersandproductsAvendraislookingatwaystohelpusincreasetheuseofrenewablerecyclableandeco-friendlyproductstosupportoursustainablesourcinggoals. 20MandarinOrientalHotelGroupSustainabilityReport2013Forusqualityisalwaysfirstandthesustainabilityofoursuppliersisparamounttoaconsistenthigh-qualityproduct.ChefRichardEkkebus 21DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013FoodBeverageAward-winningChefRichardEkkebushelmsthekitchensatTheLandmarkMandarinOrientalHongKongandisalsoChefConsultantofFifty8GrillatoneoftheGroupsnewestpropertiesMandarinOrientalPudongShanghai.Theinspirationbehindhisinnovativediningconceptsfocusesonfreshhigh-qualityingredientswhichhestrivestosourceasclosetothehotelsaspossible.AccordingtoChefEkkebusseasonalityiscriticalinordertoofferaqualityproductforallgueststoenjoy.AtthetwoMichelin-starredAmberrestaurantatTheLandmarkMandarinOrientalHongKong60offruitsandvegetablesservedcomefromartisanalfarmersatlocalmarkets.InfactChefEkkebusworkswithaconsortiumoffarmerswhopracticesustainabletechniquesandarecommittedtotestingtheirsoilsforheavymetalsandreducingtheuseofpesticides.Allproduceaswellasmanyproteinsthatarenotavailablethroughtheconsortiumaresourcedfromproximalsupplierswithqualityproductsandconsistentsupply.ForexampleChefEkkebusbegansourcingsustainableline-caughtwildseafoodfromJapanAustraliaandNewZealandratherthannetharvestedorfarm-raisedsh.AtMandarinOrientalPudongShanghaiChefEkkebusbringshisdedicationtoresponsiblesourcingtothenewlyopenedFrenchrestaurantFifty8Grill.WorkingcloselywithsustainablepoultryandpigfarmersChefEkkebusaimstoreplicatethesuccessofthefarmersconsortiuminHongKongatMandarinOrientalPudongShanghai.ChefEkkebussaysForusqualityisalwaysrstandsustainabilityofoursuppliersisparamounttoaconsistenthigh-qualityproduct.Fifty8GrillatMandarinOrientalPudongShanghai 22MandarinOrientalHotelGroupSustainabilityReport2013HealthandWellnessAsaleaderinhealthandwellnessMandarinOrientaltakesprideinitsongoingcommitmenttopromotingabalancedlifestyleforguestsandcolleaguesalike.TheSpasatMandarinOrientalofferaward-winningandhighlypersonalisedtreatmentsthataredesignedtoimprovemindbodyandspirit.Eachofourinnovativediningoutletsstronglyvaluestheimportanceofnutritioninthedevelopmentofrecipesandpreparationofmeals.Moreoverwehavetakenstepstoprovideourcolleagueswithsafeworkingenvironmentsandcomprehensivewellnessprogrammesthatencouragehealthyliving.SpaTherapiesThemulti-awardwinningSpasatMandarinOrientalarehavensforcontemplationanddiscovery.GuidedbyourorientalheritagebutinuencedbylocalculturaldiversitytheGrouphascreateddistinctiveconceptswithauniquesenseofplaceineverylocation.Wecontinuallydevelopnewholisticexperiencesthatgobeyondsimplydeliveringtreatmentstotiredbodies.In2013MandarinOrientalintroducedCalmMinda45-minutebespokesignaturetreatmentdevisedtoaddressguestsdesireforasimpleandeffectivespaexperiencethatcanbettedintoabusydaybetweenmeetingsduringlunchbreaksoratthebeginningorendofademandingday.Theexperiencebeginswithaprivatetherapistconsultationtodeterminetheindividualspersonalandcurrentstateofwell-being.GueststhenchooseanessentialoilfromtheGroupssignatureproductlinewhichcontainsnaturalnon-toxicingredientsandisparabenfree.Onlyafewdropsofoilareusedduringthetreatmentbuttheeffectsarelong-lasting.Themassagetreatmentstartsatthebaseofthespineandcontinuesslowlyovertheheadneckandshouldersusingsmallmanipulationsandrockingmovementstoreducetensionandeasethemind.Theresultsaresoothingandrelaxingleavingthebodyandmindgroundedandinperfectharmony. 23DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013NutritionInallofourFoodandBeverageoperationsnutritioniscarefullyconsideredinthedevelopmentofrecipesandpreparationofmeals.Webelievetheuseoflocalseasonalandorganicingredientsenhancestasteandaddsuniqueavourtothediningexperience.Inadditionrecipedevelopmenthasevolvedtoreducesugarsaltsandfatswhereverpossible.Tobetterserveourguestsandcolleagueswithspecialdietaryneedsweprovideawiderangeofmealchoicesatourhotelsincludingveganhalallower-fatandgluten-free.In2013MandarinOrientaldevelopedasetofinternalguidelinestosupporttheserviceofalternativeorspecialdietarymeals.Theinitiativecallsonkitchenstafftoensurethatnecessaryandappropriateequipmentisreadilyavailableforanymealthatrequiresspecialpreparation.Forexamplegluten-freemealswouldrequirechefstouseaseparateknifeandcuttingboardtoavoidcross-contaminationwithbreadscontaininggluten.Thenewguidelinesaredesignedtohelpensurethatwefullymeettheneedsofguestsandcolleagueswithspecialdietaryconsiderations.HotelInitiativesAtMandarinOrientalHongKongSousChefRobinZavouworkedcloselywithTheSpatocreatetheFiveElementsMenu.ThemenuisrootedinTraditionalChineseMedicineTCMandoffersguestsahealthyculinaryexperiencewhilstmaintainingtheavourandcreativityofgourmetdishes.MenuhighlightsincludetheAwakendishwhichfeaturesapanzanellasaladwithfreshtomatoescucumberspinachandsearedtunatohelpenergisethebody.Forguestsseekingadetoxicationregimenthehotelalsooffersjuiceboosterstoaidindigestivebalanceandimmunity.WorkplaceWellnessAsanemployerofchoiceMandarinOrientaliscommittedtoprovidingacaringandsafeworkenvironmentandencouragingahealthylifestyleforallcolleagues.EachyeartheGroupdevelopsnewandcreativeinitiativestocontinuallyenhancecolleaguewellness.ForexampleMandarinOrientalBostonestablishedadedicatedcolleaguewellnessroomwhichprovidesaquietandrelaxingareaforexpectantandnewmothers.Forcolleaguesreturningtotheworkplaceaftermaternityleavethewellnessroomallowsthemtograduallyreadjusttotheregularworkroutine.AdditionallytheGroupspropertiesinShanghaiBangkokandSingaporebuiltrecreationroomsinthecolleagueresidences.Thesewellnessareasprovidecomfortablerestingquartersasmalllibraryandcomputerswithinternetaccessforpersonaluse.TohelpfurtherencourageahealthierlifestyleourhotelsinSanyaandWashingtonD.C.enhancedtheircolleaguediningmenusbyintroducingmorenutritiousofferings.AtthesametimeMandarinOrientalMiamioffershealthscreeningsandposturetrainingparticularlyforcolleagueswhosedutiesmayinvolveheavylifting.InParisandSanFranciscothehotelstnessinstructorsleadstretchingsessionsforhousekeepingstaffbeforethestartofshiftstobuildmusclestrengthandreduceworkplaceinjury.FinallytheGroupscommitmenttohealthandwellnessnotonlyextendstocolleaguesbutalsototheirfamilies.MandarinOrientalhasorganisedandsponsorednumerousactivitiesforitshotelsaroundtheworldrangingfromfamilydaysattheparkandlocalcyclingracestorunningclubsandyogaclasses.VegancuisineatMandarinOrientalSanya 24MandarinOrientalHotelGroupSustainabilityReport2013SafeSoundSustainableThewelfareofourguestsandcolleaguesisofparamountimportancetoeveryoneatMandarinOriental.OurcomprehensivehealthandsafetyeffortsaremaintainedunderaproprietaryprogrammeentitledSafeSoundSustainable.Establishedin2000theprogrammehelpsourhotelscomplywithstringentoperationalguidelinesrelatedtorelifehealthsafetysecurityandtheenvironmentwhicharebasedonrecognisedstandardsandinternationalbestpractices.EachfullyoperationalhotelisauditedannuallytomonitortheircompliancewithSafeSoundSustainableguidelines.TheauditsareconductedbyanindependentcompanyPWTEnvironmentalConsultancyaUK-basedconsultingfirmandincludeaverificationofdocumentationandrecordsinplaceaswellasaphysicalinspectionofthefacilities.Theannualauditprocessensuresthathotelmanagementteamsarefocusedonhealthandsafetyissuesandpreparedtomanagecrisisandbusinessinterruptions.In2013weconductedthesecondyearofauditsagainstnewenvironmentalguidelineswhichwereaddedtotheprogrammein2012.Theenvironmentalguidelinescoverthemanagementofenergyemissionsandwaterconsumptionaswellasthegenerationanddisposalofwaste.Thetwo-yearauditimplementationschedulehasallowedhotelstoadapttothenewrequirementsbeforeenvironmentalactivitiesstartcontributingtotheoverallauditperformancescorein2014.AnEvolvingProgrammeTheSafeSoundSustainableguidelinesarecontinuouslyimproveduponandupdatedasmethodsevolveandasnewimpactsfromhotelactivitiesareidentified.In2013weinitiatedareviewoftheFoodBeverageHACCPsectiontoincludeguidelinesforenhancedfoodsupplierauditingandexternalcatering.OneoftheoverallobjectiveswiththeFBHACCPreviewistostreamlineoperationalprocesseswhilstmaintainingthehighestlevelsoffoodsafety.Thereviewwillbecompletedin2014andamendmentsintroducedin2015.ToensureallcolleaguesareeducatedontheprogrammeMandarinOrientalalsoinstitutednewguidelinesin2013formanagingSafeSoundSustainabletrainingacrosstheGroup.InthepastprogrammetrainingwashandledbyindividualdepartmentsbutthistaskisnowmanagedmoreefficientlyandeffectivelybyourLearningandDevelopmentteams.OurPerformanceAuditResultsOverthepast10yearsauditperformancehasremainedstablewithin2oftheGroupstargetof90.In2013theGroupsoverallaverageauditscoredeclinedbyhalfapercentagepointto88.3marginallylowerthantheGroupstarget.Importantlywechangedourauditformatin2009increasingthenumberofunannouncedauditstobetterreecthowouroperationsarerunonadailybasis.Hotelsareeligibleforunannouncedauditsfouryearsafteropeningallowingampletimetoadapttotheprogramme.In201318hotels70ofalleligiblepropertiesreceivedunannouncedauditsupfrom12hotelsin2012.Despitethechangetherehavebeennosignicantimpactsonauditscoresindicatingconsistencyinouroperations.WewillcontinuetoexpandthiseffortandalleligibleMandarinOrientalhotelswilleventuallyreceiveunannouncedaudits. 25DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013ScopeofSafeSoundSustainableProgrammeBusinessContinuityPlanningRiskManagementOverallRiskManagementandbusinesscontinuity.DevelopedonprovenriskassessmentandriskmanagementmethodologyFoodBeverageHealthandsafetyrelatedtoFoodandBeverageoperations.BasedontheaccreditedinternationalstandardofHazardAnalysisandCriticalControlPointstandardsHACCPFireSafetyInspectiontestingandmaintenanceofallresafetyrelatedinstallations.BasedontheinternationallyrecognisedNationalFireProtectionAssociationguidelinesOccupationalHealthSafetyHealthandsafetytopicsintheworkplace.BasedontheOccupationalSafetyandHealthAdministrationOSHAstandardsoftheUnitedStatesgovernmentSecuritySecurityofguestscolleaguesandproperty.BasedoninternationalbestpracticesEnvironmentManagementofthepropertysenvironmentalimpact.BasedoninternationalbestpracticesHealthandSafetyHealthandsafetytopicsrelatedtoguests.BasedonBritishandEuropeanstandardsSpaFitnessWellnessHealthandsafetyrelatedtoSpaFitnessandWellnessoperations.Basedoninternationalbestpractices 26MandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalsCommitmenttoImprovementDevelopedinternallywiththeassistanceofPeterandMichaelThomasofPWTanexternalenvironmentalconsultancygroupSafeSoundSustainablehasbeentheframeworkforMandarinOrientalscomplianceandauditprocessfordecades.TheSafeSoundSustainableprogrammeismoreextensivethangeneralpracticeinthehospitalityindustryandwasdevelopedtofitthespecificneedsandcultureoftheGroup.MandarinOrientalHotelGroupisacompanythatstrivesforcontinualimprovement.Wehaveareputationasdifcultauditorsandweprefertoworkwithcompaniesthatarelookingformorefromanauditthantickingoffcompletedtasks.MandarinOrientalhotelstakeourndingsseriouslyandalwaysaimtoimplementcorrectiveactionsquicklyandthoroughly.PeterThomasPWTEnvironmentalConsultancyOurPerformanceOccupationalHealthSafetyInkeepingwithMandarinOrientalscommitmenttoprovideasafeworkenvironmentallwork-relatedaccidentsandincidentsarereportedandthoroughlyinvestigatedtoidentifytherootcauseandtoinitiatecorrectiveandpreventivemeasures.Wetrackthenumberofincidentsandtheincidentseverityasmeasuredbythenumberoflostworkhours.In2013therewere2.70incidentsper100colleaguesresultinginlosttimeaslightincreasefrom2012.Thisrateincreasewasdrivenbyadditionallost-timeincidentsreportedinpropertiesintheAmericasandAsiahoweverdespitetheincreasewithinthoseregionstheoverallincidentrateGroup-widewassignicantlybelowtheUnitedStatesBureauLeisureandHospitalitysafetyrateof3.90incidentsper100colleagues2.TheincidentrateofourEuropeanhotelswasabovethesameindustryaveragebutdecreased8between2012and2013to4.20.Theincidentseverityrateameasureoflostdaysperincidentdecreased5in2013to24.90lostdaysperincidentper100colleagues.EuropeandtheAmericasdemonstrateddecreasingtrendswhileAsiaincreasedslightly.NoneofourhotelsreceivedasignicantHealthandSafetyneornoticeofviolation.PleaseseetheAppendixformoredetailedinformation. 27DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013ExcellenceinActionTheGoldenFanAwardforExcellenceinSustainabilitywasestablishedin2011torecogniseenvironmentalsocialandcommunityachievementswithinMandarinOrientalHotelGroup.Asthe2013GoldenFanAwardrecipientMandarinOrientalWashingtonD.C.clearlydemonstratedanongoingcommitmenttodomoreforasustainablefuture.Fromreducingenergyconsumptionbyover13todonatingnearly700hundredpoundsofcannedgoodstoalocalfooddrivehotelcolleaguesmadeatremendouscollectiveefforttoadvancesustainabilityin2013.AmongitsmanyachievementsMandarinOrientalWashingtonD.C.hassourced100ofitselectricityfromwindpower.Since2011thehotelhasbeenutilisingthiscleanerformofrenewableenergyharvestedfromlocalwindfarmsthroughWashingtonGasEnergyServicesWGESanditsCleanStepsWindPowerprogramme.Thegoalofthisinitiativeistoreducecarbondioxideemissionseliminateairpollutionandensuretheeconomicandenvironmentalbenefitshelpthelocalcommunity.In2013thehotelsaved9.3mkwHfromdirtysourcesandeliminatedapproximately6.6KmetrictonsofCO2.InadditiontoitssuccessfulrenewableenergyprogrammeMandarinOrientalWashingtonD.C.washonouredwiththeGoldenFanAwardforitsdedicationtocommunityengagementinitiativesthataretrulymakingadifference.On8September2013hotelcolleaguestooktothestreetsforthethirdannualFANtasticMarch.Thefun-lled5KfundraisereventraisednearlyUS27000tosupporttheHeartofAmericaBuddyPackprogrammeforstudentsatW.B.PattersonElementarySchool.Furthermorehotelcolleagueshelpedschoolstaffprepareforthestartoftheacademicyearbycleaningstorageareasandapplyingafreshcoatofpainttothebuildingsdoorsandstairwells.GroupDevelopmentDirectorPresidentTheAmericasandGroupSustainabilityChampionTerryStinsonpresentedMandarinOrientalWashingtonD.C.withthe2013GoldenFanAwardatMandarinOrientalsbiennialmarketingconferenceinChina.MrStinsonnotedMorethaneverbeforeitiscrucialforustotakestepstohelpimprovetheenvironmentandempowerourlocalcommunities.MandarinOrientalWashingtonD.C.hasfullyembracedtheGroupscommitmenttocorporateresponsibilityvaluesandhasfarexceededitsgoalsandobjectivestodomoreforasustainablefuture.GoldenFanAwardMandarinOrientalWashingtonD.C.GroupDevelopmentDirectorPresidentTheAmericasTerryStinsonfarrightpresentsthe2013GoldenFanforExcellenceinSustainabilitytoMandarinOrientalWashingtonD.C.GeneralManagerAdriaanRadderandteam. 28MandarinOrientalHotelGroupSustainabilityReport2013 Asanindustryitisimportanttobeawareofourenvironmentalfootprint.Itiseasytointroduceenergy-efficiencymechanismsanditmakeseconomicsense.EdouardEttedguiGroupChiefExecutiveAdvancingSustainability 30MandarinOrientalHotelGroupSustainabilityReport2013AdvancingSustainabilityIntheWorldEconomicForums2013GlobalRiskPerceptionsurveythefailuretoaddressclimatechangeandwaterscarcitywereamongtheworldstopverisksintermsofimpact1.AsaresponsiblecompanyMandarinOrientalstrivestohelpmitigatesuchrisksbyembeddingsustainabilitystrategiesintoourglobalbusinessmodel.ThislinkcanclearlybedemonstratedbyourcontinuouseffortstoreduceenergyconsumptionwhichhaveresultedincostsavingsofUS28.2millionfrom2007to2013.Overthesameperiodwealsoexperienceda23increaseintheelectricityratesacrossourportfolio.Withoutstrategiestoreduceenergyconsumptiontheseincreaseswouldhavesignificantlyimpactedtheprofitabilityofseveralhotels.Integratingsustainabilitypracticesintoourbusinessalsomakesiteasiertomanagecurrentandfutureregulatoryrequirementsrelatedtoclimatechangesuchasthelevyofdirectcarbontaxesonnon-renewableenergysourcesaswellasindirectmarket-basedmechanismssuchascapandtradelegislation.Thesedirectandindirecttaxesaswellasincreasedenergyrateswillleadtoanincreaseofoperatingexpenses.Changingclimatepatternscanalsocauseanincreasedoccurrenceofnaturaldisastersandriskaffectingourinfrastructureourcolleaguesintheirlivelihoodsandourgueststravelplans.Peopleandprocessarevitaltoouroverallsuccess.Ourcolleaguesdedicationandenthusiasmforoursustainabilityeffortsmakesthedifferencetheenvironmentalachievementsincludedinthisreportwouldnotbepossiblewithouttheircommitment.Wealsobelievethatwhatgetsmeasuredgetsdone.Goalshavebeenclearlysettoensurethatallofourcolleaguesareawareofourprogressandcanidentifywaystohelpusimprove.Asreportedlastyearwehaveestablisheda2020visionwithsignicantreductiongoalsbasedona2007baselineandinterim2016goalstotrackourprogress.In2013everyhotelwasalsoprovidedwithindividualshort-termgoalsfortheenvironmentalaspectsoftheiroperationincludingenergyemissionsandwater.AfullsummaryofourenvironmentalperformanceisincludedintheAppendixofthisreport.ENERGYINTENSITYEMISSIONINTENSITYWASTEINTENSITYWATERINTENSITYKPIMJsquaremetrekgCO2esquaremetrekgofwastesenttolandfillGuestNightLitreGuestNight2016GoalsReductionof15by2016over2007levelsReductionof17.5by2016over2007levelsReductionof10by2016over2012levelsReductionof15by2016over2007levelsON-TRACKON-TRACKOFF-TRACKON-TRACK2020VisionReductionof20by2020over2007levelsReductionof25by2020over2007levelsReductionof20by2020over2012levelsReductionof20by2020over2007levelsON-TRACKON-TRACKOFF-TRACKON-TRACKCurrentStatustobaselineReductionof13.4Reductionof17.8Increaseof14.4Reductionof13.2OurcontinuouseffortstoreduceenergyconsumptionhaveresultedinacostsavingsofUS28.2millionfrom2007to2013.EnvironmentalSustainabilityGoals 31DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013BANQUETCONFERENCEFACILITIESPOOLSSPASINTERNALLAUNDRYFACILITIESGARDENIRRIGATIONON-SITECOLLEAGUEHOUSINGRESTAURANTSGUESTROOMSEnvironmentalScopeWereportontheuseofenergyandwaterandthegenerationofwasteandgreenhousegasemissionsforactivitiestakingplaceinsidetheboundariesofourpropertiesasillustratedabove.Wearewellawareofenergyconsumingactivitiesthatarerelatedtoouroperationsbutthatoccuroutsidetheboundariesofourhotels.Weaimtograduallyincludefurtheractivitiesinthescopeofourreportingasweprogressonoursustainabilityjourney.Informationaboutthespecicmethodologiesusedformeasuringourenvironmentalperformanceareincludedattheendofthissection. 32MandarinOrientalHotelGroupSustainabilityReport2013030060090012001500200720082009201020112012201311951160241173881225104126112714512912771284AbsoluteEnergyConsumptionAvoidedEnergyConsumptionReducingOurEnergyConsumptionFindingwaystoreduceenergyconsumptionisessentialtoreducingourenvironmentalfootprint.Wehaveestablishedthreemainstrategiestodriveourperformanceinthisareaenergyauditingretro-commissioningandtheuseofinnovativetechnology.AseachMandarinOrientalhotelisdifferentwestrivetoadaptourstrategiestoeachhotelsindividualperformancelocalconditionstechnicalstructureandpotentialrenovationplans.EnergyAuditingAsaGroupweintroducedasystematicapproachtoenergyauditingin2007.Thisstrategywasfurtherenhancedin2012whenweincludedenergyauditsundertheSafeSoundSustainableprogrammewithguidelinesbasedonASHRAEsProceduresforCommercialEnergyAudits.Theauditsareadaptedtotheparticularrequirementsofeachhotelandareattimestargetedtospecicareassuchaschilledwaterorhotwaterproduction.Sincethestrategywasintroducedsixyearsago88ofourhotelshavecompletedenergyaudits.Retro-CommissioningWerecentlyestablishedretro-commissioningasanimportantstrategyforidentifyingareasofimprovementinourbuildingsoperationsinordertoenhanceoverallbuildingperformance.Byoptimisingourexistingequipmentandmaintenanceprocedureswecanenhancetheefficiencyresultsthatcontributetoourenvironmentalgoals.Partofourstrategyincludestheprovisionofsub-meteringtocontinuouslymonitorperformanceandmakeobjectivefact-baseddecisions.Retro-commissioningisanimportantinitiativeasoperationalstandardsevolveovertimeandourhotelsfrequentlyundergorenovationsthatrequirere-evaluationofbuildingsystemsandprocesses.Wehavetworetro-commissioningprogrammescurrentlyunderwaytheresultsofwhichwillassistinplanningadditionalhotelprojects.TechnologyandInnovationWhileoptimisingtheefficiencyofoursystemsandequipmentwewillcontinuetouseinnovativetechnologytoreachourgoalsbalancedwithfundamentallysoundengineeringpractices.ChilleroptimisationwhichishighlightedlaterinthisreportisoneexampleofhowsignificantimprovementscanbeachievedwithoutOurPerformanceAbsoluteEnergyConsumptionAbsoluteenergyconsumptionfortheGrouptotaled1284TJin2013aslightincreaseof0.6associatedwitha3increaseintotalfloorarea.ByimplementingenergyefficiencymeasurestheGroupavoided129TJofenergyconsumptionin20132.Thetotalavoidedconsumption2007to2013was616TJwhichtranslatestocostsavingsofUS28.2million.Managingourelectricityusewillhaveabigimpactonouremissionsaselectricitymakesupmorethanhalfofourenergyconsumption.AbsoluteEnergyConsumption20072013TJyear 33DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013EnergyConsumptionbyType2013percentelectricity60naturalgas21diesel9heatedwatersteam5chilledwater4propane1impactingtheguestexperience.Inotherareaswearecontinuingtoexpandourdemand-basedguestroomcontrolsystems.In201367ofourhotelswereequippedwithautomaticsystemstoreduceenergyconsumptionwhenguestroomswereunoccupied.Asothertechnologiesmatureweanticipatesimilarrolloutsthroughoutourhotels.CompanyInitiativesITservicesatMandarinOrientalaremovingtothecloud.Emailandsoftwareapplicationsaremigratingfromon-siteserverstooff-sitehostedcomputingplatformstoreduceon-siteenergyconsumptionsavecostsandimproveoverallefficiency.RajuDaryananiVicePresidentofITInfrastructureandInformationSecurityexplainsClouddatacentresaremoreefficientthanourownindividualservers.Asaresultofthecloudmigrationcompletedatourdatacentrein2013on-siteenergyconsumptionhasbeenreducedby70.Weanticipatethateachofourhotelswillexperienceenergyandcostsavingsandthatouroverallenvironmentalimpactwillbereduced.MandarinOrientalscorporateofcesdatacentreand50ofhotelsintheportfoliowerefullymigratedin2013.Theremaininghotelswillbecompletedin2014.Wearereducingenergyconsumptionbymigratingmoreon-siteserverstothecloud. 34MandarinOrientalHotelGroupSustainabilityReport2013200720082009201020112012201305001000150020001894183617101679168716771640EnergyIntensity20072013MJm2yearOurPerformanceEnergyIntensityEnergyintensityisanormalisedmeasureofenergyconsumptionpersquaremetreofproperty.Thismeasureallowsustoevaluateourenergyconsumptionovertimesincethefootprintofourcompanycontinuestochange.In2013theenergyintensityfortheGroupdecreasedslightlyto1640MJm2year.Thankstoenergyefficiencystrategiesourintensityhasbeensteadilydecreasingsince2007.Thankstoefficiencystrategiesourenergyintensityhasbeensteadilydecreasingsince2007. 35DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013SustainabilityinActionChilledwaterproductionforairconditioningisthesinglemostenergy-intenseinstallationinmosthotels.Indeedinsomecasesitcanrepresentnearlyathirdofahotelstotalelectricityconsumption.ForthepastveyearsMandarinOrientalhasusedawell-denedprocessasillustratedbelowtohelpoptimisechillerefciencyatanumberofourfullyownedproperties.DavidWhittleseaHeadofEngineeringDesignatMandarinOrientalHotelGrouphashelpedtoupgradeseveralexistingchillerinstallationsincludingatTheExcelsiorHongKongwhichreplaceditschillersunderaperformancecontractin2009andatMandarinOrientalHongKongwhichreplacedaircooledchillerswithwatercooledchillersin2011.DueChillerOptimisationtotheupgradesthesetwoinstallationsnowperformatanexcellentratingasdefinedbyASHRAEandin2013hadtotalelectricityreductionsrangingfrom1722withannualsavingsofUS1.3M.Duringits2010renovationMandarinOrientalJakartaalsoinstallednewchillerequipmenttooptimiseefficiencywithgreatsuccess.ConsistentlymonitoringthechillerplantsCoefficientofPerformanceCOPhasbeenakeysuccessfactor.NotknowingyourCOPislikedrivingacarwithoutknowinghowfaryoullgoonatankofgasWhittleseaexplains.OperatingachillerplantintheexcellentrangeletssayaCOPof6.0comparedtothefairrangeoraCOPof4.0cansaveuptoUS250000peryearforoneofourHongKonghotels.ShowcasinganoptimisedchillerinstallationatourownedhotelshasclearbenefitsforMandarinOrientalWhittleseacontinues.Inadditiontocostsavingsandlowerenvironmentalfootprintsatourpropertieswecanreadilydemonstratethevalueofourimplementationprocessfromdesigntomeasurementandverificationtoournewdevelopmentandowningpartners.WithsuchsuccesstheGroupviewschilleroptimisationasakeystrategyforenergyandemissionsreductionswhichcanbefurtherdeployedacrossthecompany.AdditionalchilleroptimisationprojectsarealreadyunderwayatMandarinOrientalMacauandMandarinOrientalBangkokandmoretocomeinthefuture.MonitoringchilleroperationsatMandarinOrientalMiamiNewConstruction1DesignEfficientSystem2SelectApplyEquipment3AutomatewithProvenAlgorithms4AddOptimizationSoftware5MeasureVerifyManage6Maintain1CorrectSystemDeficiencies2CorrectEquipmentDeficiencies3AutomatewithProvenAlgorithms4AddOptimizationSoftware5MeasureVerifyManage6MaintainExistingBuildingsStartwithSoundDesignDecisionsOptimizeAddressPre-existingConditionsOptimize 36MandarinOrientalHotelGroupSustainabilityReport2013ReducingEmissionsByimplementingenergyefficiencymeasuresatourhotelswearesteadilyreducingourgreenhousegasemissions.In201375ofouremissionswererelatedtoelectricityconsumptionwhichunderscorestheneedforcontinualconservationefforts.Emissionsvarywidelyacrossourhotelsastheyareprimarilydependentupontheemissionfactorsoftheirregionalutilityproviders.IndustrycollaborationEmissionsreductionisakeyfocusfortheGroupandwereproudtosupportthegoalsestablishedbytheWorldTravelTourismCouncilWTTCtoreduceCO2emissionsbynolessthan50from2005levelsby2035withaninterimtargetof25reductionby20203.MandarinOrientalalsoparticipatesintheHotelCarbonMeasurementInitiativeHCMIledbytheWTTCandtheInternationalTourismPartnershipwhichlaunchedastandardmethodologyforthehotelindustrytocalculatecarbonemissions.TheHCMIscommonapproachtocarbonmeasurementprovidesgreaterclaritytoguestsandeventplannerswhoaimtobetterunderstandtheenvironmentalimpactofagueststay.NewStrategiesTofurtherreduceourcarbonfootprintweaimtoimplementnewstrategieswherenanciallyfeasibletoassistinachievingourgoalssuchascleanenergytechnologiesorinthepurchaseofrenewableenergycerticatesRECs.PurchasingRECswhereenergyissourcedeitherpartiallyorfullyfromrenewableenergysourcesisoneofthemosteffectivewaysofreducinggreenhousegasemissions.CurrentlyMandarinOrientalWashingtonD.C.ismakinguseofRECsandweforeseemorehotelsfollowingsuitinthecomingyears.Wearealsograduallyreplacingorupgradingdiesel-operatedboilerswithLPGornaturalgas-firedboilerswhichcanreduceemissionsbynearly80.Overthelasttwoyearswereducedthenumberofdieselinstallationsby57andonlythreehotelscontinuetousediesel-fuelledboilers.Dieselwillremaintheprimaryfuelsourceforstand-bygenerators. 37DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013AbsoluteGreenhouseGasEmissions20072013thousandtCO2-eyear05010015020020072008200920102011201220131461401451511561511492220141193AbsoluteGreenhouseGasEmissionsAvoidedGreenhouseGasEmissionsScope1emissionsarecomposedofemissionsfromdirectenergysourcesincludingnaturalgasdieselandpropane.Scope2emissionsarethesumofemissionsfromindirectenergysourcesincludingelectricitygeneration6chilledwater7andheatedwatersteam8.DuetothenatureofourbusinessindirectemissionsScope2makeupthelargestcomponentofouremissions.GreenhouseGasEmissionsbyType2013percentScope2Emissions85Scope1Emissions15OurPerformanceAbsoluteEmissionsIn2013absoluteemissionsgeneratedbytheGroupamountedto149000metrictonsofCO2equivalent.From2007to2013ourtotalavoidedemissionstotalled79000metrictonsofCO2equivalent4.From2007to2013ourtotalavoidedemissionstotalled79000metrictonsofCO2equivalent.Thisisequivalenttotaking16632carsofftheroad5. 38MandarinOrientalHotelGroupSustainabilityReport2013FugitiveEmissionsFugitiveemissionsareemissionsthatareunintentionallyreleasedintotheatmosphere.Fugitiveemissionstypicallyoccurfromleaksinrefrigerationsystemsorwhilehandlingrefrigerants.TheyincludehydrofluorocarbonsHFCsusedinrefrigerationandairconditioningequipment.WeincorporatedthemanagementofrefrigerantsintotheSafeSoundSustainableprogrammetoprovideaconsistentglobalapproachandaremakinggoodprogress.Fugitiveemissionsin2013equalled5525tonsofCO2-equivalentsareductionof58from2012.Atfourofourpropertiesfugitiveemissionsareconsideredsignificantexceeding5oftheiroverallgreenhousegasemissions.Wewillcontinueourworktomanagetheseemissionsinamoresystematicwayfocusingonthefourpropertiesthathavethegreatestimpactinordertoimproveourperformance.0501001502002502007200820092010201120122013231222211207208198190GreenhouseGasEmissionIntensity20072013kgCO2-em2yearOurPerformanceEmissionIntensityEmissionsintensityisanormalisedmeasureofgreenhousegasemissionspersquaremetreofproperty.In2013theGroupsemissionsintensitydecreasedby0.5overtheprioryearto190kgCO2persquaremetre.Between2007and2013wereducedouremissionintensitybyatotalof17.8.Ouremissionsintensityratiohasgraduallyimprovedasaresultofourenergyandemissionsreductionstrategies.Between2007and2013wereducedouremissionintensitybyatotalof17.8 39DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013ReducingWasteThestaggeringamountofwastegeneratedbysocietyisrapidlybecomingaglobalissue.AtMandarinOrientalweassumeresponsibilityforreducingtheamountofwastewegenerateandstrivetoidentifyresourcefulwaysofminimisingourenvironmentalimpacts.TwoyearsagoweimplementednewWasteManagementGuidelinesaspartoftheSafeSoundSustainableprogrammetodevelopacompleteandconsistentmeasurementprocessandstrengthenourefforts.Wevelearnedsomeimportantlessonsalongtheway.Accuratelymeasuringwasteathotelsthatarepartoflargermixed-usedevelopmentshasbeenchallenging.Accuratelymeasuringwasteindevelopingcountrieswherethewastedisposalnetworkisunderdevelopedhasalsobeenverylabourintensiveforouroperations.Despitethesechallengesweremakingprogress.Internalwasteauditshaveproventobeusefulexercisesinunderstandingwhatandwherewasteisgeneratedwithinthehotel.WeknowthatenhancementsarerequiredtoourwastemeasurementsinordertoaccountforthehighvolumeofheavywastesuchaswetwasteandglassgeneratedatourFoodandBeverageoperations.Ithasbeenimportanttothinkglobalactlocalinordertoadaptgreatconceptstopracticalprocesses.Recyclinghasprovidedunexpectedrevenuesinmanylocationsandthishasprovidedfundingforothercorporateresponsibilityinitiativesatourhotels.Colleagueengagementhasproventremendouslyrewardingasourhotelteamshaveidentifiedtheirownwastereductionopportunitieswellbeyondexpectations.Whileourwastereductionprogrammeisinearlystageswearereadytotakeonthechallengeofimprovingourprocessesinordertomeetourgoals.OurPerformanceAbsoluteWasteGenerationTheGroupgenerated11016metrictonsofwastein2013ofwhich59wasdisposedofinlandfills21wasrecycledorcompostedand20senttoincinerators9.Theamountofwasterecycledorcompostedincreasedfrom17in2012to21in2013. 40MandarinOrientalHotelGroupSustainabilityReport2013WasteByDisposalMethod2013percentComposted3Recycled18Incinerated20OurPerformanceWasteIntensityIn201369ofourhotelscollectedcomprehensivewastedataanimprovementof562in2012.ThedatacollectionprocessisauditedannuallyundertheSafeSoundSustainableprogrammetoensurecompliance.Wastedatacollectionwasinitiatedin2012andwereferto3.59kgwastesenttolandllguestnightasour2012baselineyearmeasurement.In2013theGroupassessed4.11kgwastesenttolandllguestnightanincreaseof14.4overthe2012gures.Weattributetheincreasetobetterdatacollectioninthesecondyearofprogramme.Additionaldatacollectionchallengesareanticipatedforthehotelsnotyetreportingwastedata.HotelInitiativesAspartoftheirwastereductioneffortstherestaurantsatMandarinOrientalMiamiimplementedanenvironmentallyfriendlyalternativetoservingconventionalbottledwater.Withthehelpofanewwaterpuricationsystemthehotelslocalwatersourceisbeingtransformedintohighqualitystillandsparklingwaterwhichisthenservedtoguestsinreusableglassbottles.ServingwaterinthiswaylowersMandarinOrientalMiamiscarbonfootprintsincethewaterisbottledrightonpropertyreducingthewasteassociatedwiththemanufacturetransportanddisposalofconventionalbottledwater.ThesystemisinplaceatalloftherestaurantsatMandarinOrientalMiamiandcontributedtothe6reductioninwastegeneratedperguestnightbetween2012and2013.InanefforttoincorporategreenlandscapedesignandencouragethecompostingoforganicwasteMandarinOrientalJakartainstalled50bioporiholesonhotelgrounds.Bioporiholesareinstalledin-groundtopromotewaterinfiltrationandsoilhealthasfoodwasteorotherorganicwastesareaddedtogeneratecompostthatcanbeusedtosupplementlandscapinginotherpartsoftheproperty.InGermanylandfillingisnotpermittedbylaw.ThereforeMandarinOrientalMunichhasimplementeda100reuseorrecyclingprogramforallwastegeneratedatthehotel.Thisprogrammerequiresthatend-of-lifedisposalisconsideredattimeofpurchasetoensurethatoncewasteisgeneratedasuitablealternativetolandfillingisavailablefordisposal.Landfilled59 41DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013SustainabilityinActionMandarinOrientalBarcelonadiscoveredthatmostofitsbackofficewastewasgeneratedbyprintingandcopying.Indeedthehotelwasgenerating650000papercopiesperyearatacostofnearly27000Eurosinprintermaintenancepartstonerandpaper.Sowhentheopportunityarosetoreplaceoldprintersandcopiershotelcolleaguessoughtreplacementoptionsthatwerecosteffectiveandenvironmentallyfriendly.VincentStuderResidentManagerandhotelCorporateResponsibilityChampionalongwithDanielFernandezDirectorofITledthechargetoreduceprintingvolumesandcosts.Theteamevaluatedseveralconventionalprintingtechnologiesbutneededamoresustainableapproachtotheproblem.AspartofthesolutiontheteamreplacedallprintersinthehotelthroughaleasingprogrammeandadoptedSolidInktechnologybyXeroxforallhighvolumeprinters.SolidInkrequiresnocartridgesandsinceitspackingisminimalitgeneratesupto90lesswaste.Theinkcubesaremadeofanon-toxicresin-basedpolymerinksimilartoacrayonwhichareeasytohandleeliminatespillsandleaksandrequirelessstoragespace.Ontheoperationalsidetheprintersareleasedwithapayasyougoplansothehotelischargedonlyforthenumberandtypeofprintoutsgenerated.Theplanfeaturesabuilt-inmaintenanceprogrammesonoadditionalcostsareincurred.TotrackprogresstheITteamsetupprintingaccountsforeachhoteldepartmentwhichwasausefulsteptowardidentifyinghighvolumefunctions.Printerdefaultswerealsosettodouble-sidedprinting.Thenewsystemhasraisedcolleagueawarenessandisencouragingbehaviouralchange.Paperusageisnowincludedasaregulardiscussionpointinthecorporateresponsibilitycommitteemeetingsatthehotel.ColleaguesarebecomingmoreawareandresponsiblewhenmakingcopiesnotesStuder.TheythinkbeforeprintingandarestartingtocompetetoreducetheirusageInlessthanoneyearwiththenewsysteminplacethehotelhasreducedprinterwastefrom80kilogramstolessthantwokilogramsinthesametimeperiodandithasreducedtonerfrom100kilogramstolessthan10kilogramsofsolidinkandpackaging.Thevolumeofcopiesissteadilydecreasingtoo.Pay-Per-PrintatMandarinOrientalBarcelona 42MandarinOrientalHotelGroupSustainabilityReport2013AbsoluteWaterConsumption20072013thousandm3year05001000150020002500200720082009201020112012201322612028119187321120012192225113998622242377AbsoluteWaterConsumptionAvoidedWaterConsumptionReducingourWaterConsumptionAswearealuxuryhospitalitycompanywaterisessentialtotheservicesweprovidewhetheringuestroombathsspasandpoolsorinourback-of-houseoperations.Asaresponsiblecompanyweunderstandtheimportanceofcleanaccessiblewatertohumanhealthandtotheeconomicviabilityofthecommunitieswhereweoperate.AsmentionedearlierTheWorldEconomicForumidentifiedwatersupplycrisesamongthemostsignificantglobalrisksin201310.TofullyunderstandourcurrentandfutureexposureMandarinOrientalconductsanannualreviewofthewatersupplysourcesleveragingWBCSDGlobalWaterToolWRIAqueductaswellasthird-partysubjectmatterexperts.Thisinformationisusedtofocusoureffortsonspecifichotelseitherinoperationorunderdevelopment.By2025weestimatethatonethirdofourhotelswillbelocatedinwaterscarceareasimpactedeitherbysupplylimitsqualityconcernsorotherfactors.Theincreaseddemandwillalsowithoutdoubtdrivecostsofwaterhigher.AsaGroupwewillcontinueoureffortstoreducewaterconsumptioninnon-guestareasandwebelievestronglythatcolleagueawarenessandtraininghasthemostsignicantimpact.MunicipalwatersuppliesprovidewaterforallMandarinOrientalhotelswiththeexceptionofonepropertywhichreliespartiallyonsurfacewater.Municipalsupplyaccountsfor92.5andsurfacewater7.5ofourtotalwatersupply.OurPerformanceAbsoluteWaterConsumptionIn2013theGroupsabsolutewaterconsumptionincludingirrigationcoolingtowersswimmingpoolsandguestroomswas2377000cubicmetres11.TheGroupincreasedabsolutewaterconsumptionby5between2007and2013whilstthenumberofhotelsincludedinthecalculationincreasedby41overthesameperiod.Implementingwaterefficiencyprojectsresultedinavoidingtheuseof86000cubicmetresofwateratourpropertiesin2013.TheGroupincreasedabsolutewaterconsumptionby5between2007and2013whilstthenumberofhotelsincludedinthecalculationincreasedby41overthesameperiod. 43DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013OurPerformanceWaterIntensityTomeasureourwaterperformanceovertimeandaccountforcompanygrowthweutilisewaterconsumptionperguestnightasourkeyperformanceindicator.Thoughnotallwaterisconsumeddirectlybytheguestwaterconsumptionisindirectlytiedtoguestnightsthroughback-of-houseoperations.In2013theGroupsaveragewaterusereductionwas13.2over2007levelstoourlowestconsumptionperguestnightever.WaterIntensity20072013litresguestnight020040060080010009889709718859079018572007200820092010201120122013 44MandarinOrientalHotelGroupSustainabilityReport2013 AsaleaderinluxuryhospitalitysteepedinthevaluesoftheOrientMandarinOrientalHotelGroupunderstandstheimportanceofcultureandcommunitytoourbrand.ChampioningCommunity 46MandarinOrientalHotelGroupSustainabilityReport2013ChampioningCommunityAsaleaderinluxuryhospitalityMandarinOrientalencourageseachofitshotelstodiscoverimpactfulwaystointeractwiththeircommunities.Throughoutreachprogrammesandnon-profitpartnershipswecallonourcolleaguestodeveloplongmeaningfulrelationshipswithlocalorganisations.Westronglybelievethatactingwithresponsibilityinvolvesnotjustourcolleaguesortheimpactwehaveontheenvironmentbutalsomakingadifferenceinthecommunitiesinwhichweoperate.Assuchweparticipateincharitablecausesrangingfromculturalheritagepreservationandpovertyeradicationtoenvironmentalprotectionanddisasterrelief.CulturalHeritageAtMandarinOrientalwetakeprideinourAsianheritageandrecognisetheimportanceofartisticandculturalpreservationtoensurecontinuedenjoymentforfuturegenerations.AclassicelegantandmeaningfulsymbolofOrientalculturethefanisaniconicemblemforMandarinOrientalsidentity.InadditiontoourGrouplogoeveryMandarinOrientalhotelhasitsownuniquefanwhichreflectseachpropertyslocalcharm.InkeepingwiththisdistincttraditionMandarinOrientalPudongShanghaiselectedacentury-oldChinesefantocelebrateitsopeninginApril2013.TheantiquefanisbelievedtohavebeenmadeinChinasCantonprovinceforaEuropeancollectorduringthe19thcenturythussymbolisingShanghaisownuniqueheritageasatradingportconnectingtheEastandWest.Thehotelfanfeaturesblacklacqueredribbingnelyetchedwithgold.Thefrontofthefandepictsaclassiccourtyardgardenscenewhilstthereversesidefeaturesthreelargevignettesandfoursmallframedanimalportraitssurroundedbyoralimagesandcolourfulborders.MandarinOrientalBarcelonacommissionedaward-winningSpanishdesignerPatriciaUrquiolatocreateitssignaturefan.AsthedesignerofthehotelsinteriordcorUrquiolaincorporatedsimilarelementsinthefanwhichconsistsofbeautifullydecoratedperforatedleafsemulatingameshorcutleathereffect.TheartworkcapturesthespiritofthehotelsarchitectureandcombinestheeleganceofAsian-inspiredfanswiththecharacteroftraditionalfansfromSpain.MandarinOrientalPudongShanghaiselectedacentury-oldChinesefantocelebrateitsopeninginApril2013farleft.MandarinOrientalBarcelonacommissionedSpanishdesignerPatriciaUrquiolatocreateitssignaturefanin2009bottom. 47DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013TheMandarinOrientalFellowshipforCulturalPreservationwiththeAsianCulturalCouncilAsaglobalbrandwithstrongrootsinourOrientalheritageMandarinOrientalvaluesculturaltraditionsandavidlysupportsthearts.WereproudtopartnerwithorganisationssuchastheAsianCulturalCouncilACCwhichisdedicatedtotransformativeculturalexchangebyawardinggrantstoartistsscholarsandorganisationsforcreativeworkandstudyintheUnitedStatesandAsia.In2005MandarinOrientalestablishedadedicatedfellowshipwiththeACCforthepreservationofindigenousartsculturesandtraditionsofAsia.In2013Mr.RonnarongKhamphaOngaLannadancerandachoreographerfromChiangMaiThailandwastheACCgranteeofMandarinOrientalFellowshipaward.OnghasdevelopedhisownperformancestyleusingtraditionalLannadanceandcontemporaryaestheticsandrecentlyventuredintomusicalperformance.Thefour-monthMandarinOrientalfellowshipallowedOngtheopportunitytotravelintheUSandattendtheAmericanDanceFestivalADFInternationalChoreographersResidencyProgrammeinDurhamNorthCarolinawherehejoinedADFsvibrantcommunityof415artistsandstudentsfrom24countries.ThroughouthisresidencyatADFRonnarongworkedonanoriginalworkMyNameisOngwhichhepresentedandperformedduringtheInternationalChoreographersShowcaseonJuly18atDukeUniversitysPageAuditorium.Theworkwasanimpressivepieceperformedwithgraceandsincerityandittouchedaudiencememberswithitseloquence.On28JulyOngewtoNewYorkwherehespentthenexttwomonthstakingclassesandseeingawiderangeofperformancesthroughoutthecity.ForaperformingartistlikemetheMandarinOrientalACCFellowshipwasawonderfulopportunitytogainnewperspectiveonmyownculturaltraditions.SeeingsomanyperformersfromallovertheworldduringmyUStourandADFresidencyhasdenitelyenrichedmychoreographyandartisticdirection.ItwasthrillingtopresentandshareLannaculturetocompletelynewaudiencesinAmerica.ImexcitedforwhatthefutureholdsandverygratefultotheACCandMandarinOrientalforthisincredibleexperience.PHOTOGRAPHBYCOURTESYOFASIANCULTURALCOUNCILMr.RonnarongKhamphaOngaLannadancerandachoreographerfromThailand. 48MandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalTeamsUpwithMINDSETforaFunDayinHongKongInNovember2013MandarinOrientalcolleaguesinHongKongparticipatedintheannualMINDSETFunDayaneventdesignedtoraiseawarenessonmentalhealthandtopromotethevalueofsocialinclusion.MINDSETisaHongKong-basedorganisationcreatedin2002byJardineMathesontheparentcompanyofMandarinOrientalHotelGroup.Theorganisationprovidesdirectassistanceforindividualsandfamiliesfacingissueswithmentalhealth.Eventparticipantstookpartinfun-lledgameshighlightingtheimportanceofteamwork.AtthecloseoftheeventMandarinOrientalsChiefMarketingOfcerandMINDSETSteeringCommitteememberMichaelHobsonpresentedprizestothetopthreeteams.CommunityProgrammesMandarinOrientalhotelscontributetotheirlocalcommunitieswithmorethanphilanthropicsupport.Ourcolleaguesareencouragedtoparticipatedirectlywhetherthroughvolunteeringfundraisingorcoordinatingeventsforlocalcharitablecauses.Thissectionhighlightsmanyoftheimportantcommunityinitiativesfromourhotelcolleagueswhoarehelpingtobuildabrighterfutureintheircommunities.MandarinOrientalMiamiHostsSoftballTournamenttoSupportLocalYouthCentreMandarinOrientalMiamihostedasoftballtournamentinApril2013toraisefundsforanewcomputerlabattheOvertownYouthCentre.LocatednearDowntownMiamitheOvertownYouthCentreaimstoinspireandempoweryouththroughenrichmentservicesandsocialprogrammeswhichincludeacademicenhancementphysicaltnesshealthcareandnutritioncreativeartsandfamily-orientedactivities.Nearly100hotelcolleaguesandtheirfamiliesparticipatedinthecommunityeventwhichalsoincludedsevenotherareahotels.ThesoftballtournamentraisednearlyUS9000resultingintennewcomputersfortheOvertownYouthCentre.MandarinOrientalSanyaBrightConnectionsFoundedin2004TheBrightConnectionCentreinSanyaChinahasbeenahavenforchildrenwithdisabilitiesandprovidesthemwithmuchneededphysicalandmentalcare.ForseveralyearsMandarinOrientalSanyahasbeenastrongsupporterofTheBrightConnectionCentreanditsannualChildrensDay.Twenty-veMandarinOrientalcolleaguesvolunteerperiodicallythroughouttheyearandvecolleaguesvolunteerregularlydoinglaundryandcleaningtheCentreaswellasfeedingbathingandreadingstoriestothechildren.IncelebrationofChildrensDay2013MandarinOrientalSanyahostedaspecialchildrensperformanceaswellasanartauctiontoraisemoneyfortheCentresongoingefforts.ToshowcasethewonderfulworkbytheorganisationthroughouttheyearsthehotelcreatedadocumentarylmonthehistoryofTheBrightConnectionCentrewhichdebutedonChildrensDay.ThelmwaslatersharedontheChinesesocialmediasiteSinaWeibowhichincreasedawarenessaboutTheBrightConnectionCentreanddrewdonationsfromaroundtheworld. 49DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013CommunityinActionWhenitcomestomakingapositivechangeinthelivesoflocalchildrenandtheirfamiliesthereisnostoppingMrsAmandaHyndmanGeneralManagerofMandarinOrientalBangkokandherteamofdedicatedcolleagues.In2013MrsHyndmanlaunchedtheFANtasticFundraisera10krunwalktosupportMercyCentreanon-profitorganisationhelpingdisadvantagedchildrenandtheirfamiliesinBangkok.DeterminedtomakeachangeinhercommunityMrsHyndmansetanambitiousgoaltohelpraiseTHB1millionforthischaritableandworthycause.Since1973MercyCentrehasservedKlongToeyandotherimpoverishedareasinBangkokbybuildingandoperatingschoolsimprovingfamilyhealthandwelfareprotectingstreetchildrensrightscombatingAIDSandprovidingsheltersfororphans.InpreparationfortheFANtastic10krunwalkeachdepartmentparticipatedinfriendlyandcreativecampaignsfrombakesalestoeamarketstoreachtheirfundraisinggoal.On21September2013700colleaguesandtheirfamiliesdescendedonLumphiniParkinaseaoforangeFANtasticFundraisershirtswiththeGovernorofBangkokMrSukhumbhandParibatrapresidingovertheevent.Beamingwithaspiritoffunandexcitementparticipantscrossedthenishlineandlaterenjoyedabarbequeandfamily-friendlyactivitiesinthepark.IntheendthehotelcolleaguesraisedTHB1.6millionUS54000fortheMercyCentrewhichfarsurpassedtheoriginalmonetarygoal.AsMrsHyndmannotedItwasatremendoussighttobeholdhundredsofmycolleaguesfriendsandtheirfamiliesmakestridestohelpcreateapositiveimpactforneedychildreninourcommunity.Theinspiredeffortillustratesourmissionthattogetherwetrulycandomoreforasustainablefuture.ItisadayIwillneverforget.ColleaguesandtheirfamilieswarmupinLumphiniParkforthe2013FantasticFundraiserinBangkok. 50MandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalManilaAidsinTyphoonHaiyanReliefEffortsInresponsetotheaftermathofTyphoonHaiyanMandarinOrientalManilalaunchedataskforcetoprovideassistanceintherebuildingeffortsfollowingthedevastatingstorm.GeneralManagerTorstenvanDullemenledacontingentofhotelcolleaguesona16-dayvolunteereffortatVillamorAirbaseinManilawhichservedasaprocessingareafortyphoonevacueesbythePhilippineDepartmentofSocialWelfare.HotelcolleaguesalsovolunteeredatthePhilippineRedCrossMakatiChaptertosortandpackagedonationsfordeliverytothoseaffectedbythestorm.Inadditioncolleaguesandguestsalikecollectedmoneyclothingnon-perishablefooditemsandhousewaresforvictimsthroughthePhilippineRedCross.IntotalthehotelraisedUS5000fortheTyphoonHaiyanreliefefforts.MandarinOrientalandCleantheWorldSince2010MandarinOrientalhaspartneredwithnon-protorganisationCleantheWorldtohelprecyclesoapandbottledamenitiesfordistributiontochildrenandfamiliesworldwide.In2013CleantheWorldexpandedbeyondNorthAmericabyinitiatingoperationsinHongKongandMacau.AftersomeearlyoperationalchallengesCleantheWorldisnowexpandingthroughouttheregion.MandarinOrientalremainscommittedtotheorganisationsmissiontorecyclesoapandbathroomamenityproductsfordistributiontoimpoverishedcommunitiesinanefforttoreducehygiene-relatedillnessesanddeath.In2013nearlyvetonsofwastesoapandbottledamenitieswerecollectedfromeightMandarinOrientalhotelsBostonLasVegasMacauMiamiNewYorkSanFranciscoWashingtonD.C.andTheLandmarkMandarinOrientalHongKong.Thiscombinedeffortresultedinmorethan25000barsofrecycledsoapbarsand9500bottlesofliquidsoapdeliveredtopeopleinneedaroundtheworld. 51DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013CommunityinActionFoundedin2010WalkingWithTheWoundedWWTWisanorganisationthatraisesfundstoassistwoundedservicemenandwomenreturninghomefromthemilitary.AspartofitsmissionWWTWprovidesveteranswithaccesstoeducationandtrainingprogrammesinordertohelpthemsecurelongtermemployment.AsthechosencharityofMandarinOrientalHydeParkLondonthehotelhascollaboratedonavarietyofcharitableeventstoraiseawarenessforthecause.In2013thehotelworkedcloselyontheorganisationsSouthPoleAlliedChallengeinwhichthreeteamsofservicemenandwomenembarkedonanexpeditiontotheSouthPole.TohelppromotethelaunchofthechallengethehotelhostedapresseventtointroducetheexpeditionteamswhichwererepresentedbytheUnitedStatestheBritishCommonwealthandtheUnitedKingdomwhoseteamleaderwasWWTWpatronHRHPrinceHarry.InadditionMandarinOrientalHydeParkLondonparticipatedinWWTWsSpringBalltohelpraisemoneyfortheSouthPoleAlliedChallengeandheldapost-expeditionreceptioninwhichHRHPrinceHarrysharedhisinspirationaljourneyalongsidehisfellowteammembers.WiththehelpofthehotelsrestaurantsBarBouludandDinnerByHestonBlumenthalRestaurantatotalof5000wasraisedtosupportWWTWefforts.ThehotelsDirectorofCommunicationsSarahCairnssaysWearededicatedtomakingapositivedifferenceinourcommunities.OurinvolvementwithWWTWallowsustocreateawarenessofthetremendoussacrificemadebymembersofthearmedforcesandhelpthosewoundedinactionachievethenecessaryskillsandconfidencetorebuildtheirlives.WalkingwiththeWoundedMandarinOrientalHydeParkLondonGeneralManagerAnthonyMcHalerightwithWWTWFounderEdParkerandpatronHRHPrinceHarry 52MandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalLasVegasHelpsEmpowertheLocalCommunityHELPofSouthernNevadaisanon-protorganisationdevotedtoassistingfamiliesandindividualsattainself-sufciencythroughdirectservicestrainingandreferrals.From28Novemberto7DecemberhotelcolleaguesatMandarinOrientalLasVegasweredelightedtoparticipateinHELPsannualtoydriveandfundraisingevent.ThehotelraisedatotalofUS11902whichincludedanadditionalgrantfromMandarinOrientalHotelGroup.Inadditiontothecashdonation50bicycleswerealsodonatedtotheorganisation.MandarinOrientalNewYorkVolunteerswithGodsLoveWeDeliverOn7November2013colleaguesfromMandarinOrientalNewYorkvolunteeredwithGodsLoveWeDeliveranon-protorganisationdedicatedtoimprovingthehealthandwell-beingofindividualslivingwithterminalsickness.Inadditiontheorganisationprovidesnutritioneducationandcounsellingprogrammesaroundthetri-statearea.SevenhotelcolleagueshelpedprepareandpackmealsinBrooklynNewYorkforlocalmenwomenandchildrenlivingwithHIVAIDScancerandotherseriousillnesses.MandarinOrientalBostonPaysTributetothe2013BostonMarathonForthepastveyearsMandarinOrientalBostonhassupportedMassachusettsGeneralHospitalanditsparticipationintheannualBostonMarathon.Eachyearthehospitalsrunningteamraisesfundsfortheirchildrensunitandtowardscancerresearch.Inthewakeofthetragicbombingatthe2013MarathonMandarinOrientalBostonandMassachusettsGeneralHospitalralliedthelocalcommunitytosupportmarathonrunnersandhostedaspecialrecognitioneventatthehotelforthehospitalsmarathonteam.TheeventwasmadepossiblebydonationsfromthehotelandagrantfromMandarinOrientalHotelGroup. 53DELIVERINGEXCELLENCEADVANCINGSUSTAINABILITYCHAMPIONINGCOMMUNITYMandarinOrientalHotelGroupSustainabilityReport2013MandarinOrientalTokyoandTheEcocapMovementSince2009MandarinOrientalTokyohasbeenanactivesupporterofTheEcocapMovementanon-profitorganisationthatraisesfundsfortheJapanCommitteeforVaccinesfortheWorldsChildrenJCVthroughtherecyclingofbottlecaps.In2013colleaguesatMandarinOrientalTokyocollectedmorethan100kilogramsofbottlecapswhichprovidedmuchneededpoliovaccinesfornearly70children.SincethebeginningofitspartnershipwithJCVMandarinOrientalTokyohasrecycledbottlecapstovaccinatemorethan400childrenindevelopingcountries.TheLandmarkMandarinOrientalHongKongParticipatesinAnnualBeachClean-upStanleyBeachinHongKongattractstensofthousandsofvolunteerseachyeartotakepartintheHongKongClean-upChallenge.In201315colleaguesfromTheLandmarkMandarinOrientalHongKongspentthedayatStanleyBeachcollectingplasticbottlesanddebrisalongtheshore.TheHongKongClean-upChallengetookplacefrom21Septemberto1Novemberdrawingmorethan45000participantsandcollectedatotalover1.2millionkilogramsoftrash.MandarinOrientalGenevaandOrchestredelaSuisseRomandeFoundedin1938TheOrchestredelaSuisseRomandeOSRorOrchestraofFrench-speakingSwitzerlandisasymphonyorchestrabasedinGenevaSwitzerland.Theorchestrasobjectiveistoencouragenewanddevelopingartistsandhelpthemgainexperienceandexposureinthemusiceld.In2013MandarinOrientalGenevasupportedtheorchestraslargesteventTheConcertdelAn.Inadditionthehotelhostedanafter-concertcelebrationandfundraisingeventfortheorchestra. 54MandarinOrientalHotelGroupSustainabilityReport2013FUTUREDIRECTIONSThemorewelearnaboutsustainabilitythemorewerealisethatwehavejustcommencedourjourney.Weareobviouslyencouragedbyourenvironmentalachievementsoverthepastfewyearsanditistrulyinspiringtoseeourcolleaguescommitmenttocontinuousimprovement.Wewillmaintainoursystematicapproachtoenvironmentalmanagementincludingourkeystrategiesandthedevelopmentoftailoredprogrammestoimproveinareasofconcern.Duringourinitialjourneyourcolleaguesdedicationtodetailandqualityhasproveninvaluable.Webelievewecandomoretodeveloptheirknowledgeandunderstandingofthewideraspectsofsustainability.Wealsorecognisethatwemuststrengthenourstakeholderengagementgainingabetterunderstandingoftheexpectationsofourguestsandotherstakeholders.Suchfeedbacksupportsouron-goingeffortstoimproveourperformanceandtoprovidemoretransparentcommunication.Ifyoudliketoshareyourviewsonoursustainabilityprogressandonthisreportpleasecontactourcorporateresponsibilityteamatsustainabilitymohg.com. 55APPENDICESMandarinOrientalHotelGroupSustainabilityReport2013SustainabilityAwardsandCertificationsAWARDSMANDARINORIENTALJAKARTATop5GreenHotelinIndonesiabytheNationalGreenHotelAwards2013MinistryofTourismandCreativeEconomyRepublicofIndonesiaMANDARINORIENTALKUALALUMPURGreenAward2013-2015MalaysianMinistryofTourismMANDARINORIENTALMIAMIPalmAwardFloridaGreenLodgingProgramMANDARINORIENTALSANYAFiveGoldLeafGradeChinaGreenHotelNationalGreenHotelCommitteeandChinaAssociationOnlyeighthotelsinHainanreceivedthisawardfor20102014whichisawardedforahotelsprioritiesonenvironmentalconservationgreenprogrammesfoodsafetyandhygieneandenergyefficiencyinitslongstandingcommitmenttotheenvironment.MANDARINORIENTALWASHINGTOND.C.AwardforCommunityService2013StarsoftheIndustryAwardsHotelAssociationofWashingtonD.C.Awardedforprogrammesthatdemonstratethattheindividualpropertyisresponsivetothelocalcommunity.Examplesincludecampaignstobenefitlocalornationalserviceorganisationsorcharitiesservicetoanypartofthecommunitythroughaspecialprojectandjointundertakingswithcommunitygroupsforthebenefitofthearea.CERTIFICATIONSMANDARINORIENTALGUANGZHOUGreenFoodCertifcateMANDARINORIENTALKUALALUMPURISO14001CertifiedsinceDecember2003MANDARINORIENTALLASVEGASGOLDLEEDCertifedLEEDGoldCertificationafterthird-partyverificationofthebuildingsgreendesignandperformanceinmultiplecategories.MANDARINORIENTALPARISHQECertifedFirsthoteltogettheoperationalHQEcertification.Thecertificationbuildson14criteriaofeco-designeco-managementcomfortandhealth.THEEXCELSIORHONGKONGISO22000certifedsinceDecember2012HACCPCertifcateMANDARINORIENTALTOKYOTogetherwiththeMitsuiNihonbashiTowerarecurrentlyintheTop30LowCarbonBuildingsinTokyoCertificationawardedinApril2011tobuildingswithleastenergyconsumption.Itemswerecheckedinrelationtotheenergyperformanceoperationandmanagementofthefacilitiesandbuilding. 56MandarinOrientalHotelGroupSustainabilityReport2013KEYFULLCOVERAGEPARTIALCOVERAGEINDICATORDESCRIPTIONSTATUSLOCATION1.1Statementfromthemostseniordecision-makeroftheorganisation.Introductionp.42.1Nameoftheorganisation.Introductionp.32.2Primarybrandsproductsandorservices.Introductionp.32.3Operationalstructureoftheorganisationincludingmaindivisionsoperatingcompaniessubsidiariesandjointventures.Introductionp.32.4Locationoforganisationsheadquarters.Introductionp.32.5Numberofcountrieswheretheorganisationoperatesandnamesofcountrieswitheithermajoroperationsorthatarespecicallyrelevanttothesustainabilityissuescoveredinthereport.Introductionp.32.6Natureofownershipandlegalform.Introductionp.32.7Marketsservedincludinggeographicbreakdownsectorsservedandtypesofcustomersbeneciaries.Introductionp.232.8Scaleofthereportingorganisation.Introductionp.32.9Significantchangesduringthereportingperiodregardingsizestructureorownership.Introductionp.52.10Awardsreceivedinthereportingperiod.Appendixp.553.1Reportingperiode.g.fiscalcalendaryearforinformationprovided.Introductionp.53.2Dateofmostrecentpreviousreportifany.Introductionp.53.3Reportingcycle.Introductionp.53.4Contactpointforquestionsregardingthereportoritscontents.FutureDirectionsp.543.5Processfordefiningreportcontent.Introductionp.53.6Boundaryofthereport.Introductionp.53.7Stateanyspecificlimitationsonthescopeorboundaryofthereport.Introductionp.53.8Basisforreportingonjointventuressubsidiariesleasedfacilitiesoutsourcedoperationsandotherentitiesthatcansignicantlyaffectcomparabilityfromperiodtoperiodandorbetweenorganisations.AnnualFinancialReportp.36Appendixp.583.9DatameasurementtechniquesandthebasesofcalculationsincludingassumptionsandtechniquesunderlyingestimationsappliedtothecompilationoftheIndicatorsandotherinformationinthereport.ExplainanydecisionsnottoapplyortosubstantiallydivergefromtheGRIIndicatorProtocols.Introductionp.53.10Explanationoftheeffectofanyre-statementsofinformationprovidedinearlierreportsandthereasonsforsuchre-statemente.g.mergersacquisitionschangeofbaseyearsperiodsnatureofbusinessmeasurementmethods.Introductionp.53.11Significantchangesfrompreviousreportingperiodsinthescopeboundaryormeasurementmethodsappliedinthereport.Introductionp.53.12TableidentifyingthelocationoftheStandardDisclosuresinthereport.GRIIndexp.563.13Policyandcurrentpracticewithregardtoseekingexternalassuranceforthereport.Introductionp.54.1Governancestructureoftheorganisationincludingcommitteesunderthehighestgovernancebodyresponsibleforspecictaskssuchassettingstrategyororganisationaloversight.AnnualFinancialReportp.87914.2IndicatewhethertheChairofthehighestgovernancebodyisalsoanexecutiveofficer.AnnualFinancialReportp.874.3Fororganisationsthathaveaunitaryboardstructurestatethenumberandgenderofmembersofthehighestgovernancebodythatareindependentandornon-executivemembers.AnnualFinancialReportp.874.4Mechanismsforshareholdersandemployeestoproviderecommendationsordirectiontothehighestgovernancebody.AnnualFinancialReportp.924.6Processesinplaceforthehighestgovernancebodytoensureconictsofinterestareavoided.AnnualFinancialReportp.894.8Internallydevelopedstatementsofmissionorvaluescodesofconductandprinciplesrelevanttoeconomicenvironmentalandsocialperformanceandthestatusoftheirimplementation.Introductionp.64.9Proceduresofthehighestgovernancebodyforoverseeingtheorganisationsidentificationandmanagementofeconomicenvironmentalandsocialperformanceincludingrelevantrisksandopportunitiesandadherenceorcompliancewithinternationallyagreedstandardscodesofconductandprinciples.AnnualFinancialReportp.914.14Listofstakeholdergroupsengagedbytheorganisation.Introductionp.74.15Basisforidentificationandselectionofstakeholderswithwhomtoengage.Introductionp.7GRIIndex 57APPENDICESMandarinOrientalHotelGroupSustainabilityReport2013KEYFULLCOVERAGEPARTIALCOVERAGEINDICATORDESCRIPTIONSTATUSLOCATIONEC1Directeconomicvaluegeneratedanddistributedincludingrevenuesoperatingcostsemployeecompensationdonationsandothercommunityinvestmentsretainedearningsandpaymentstocapitalprovidersandgovernments.Appendixp.58EC2Financialimplicationsandotherrisksandopportunitiesfortheorganisationsactivitiesduetoclimatechange.AdvancingSustainabilityp.30EC3Coverageoftheorganisationsdefinedbenefitplanobligations.AnnualFinancialReportp.41DeliveringExcellencep.15EC4Significantfinancialassistancereceivedfromgovernment.Appendixp.58EC7Proceduresforlocalhiringandproportionofseniormanagementhiredfromthelocalcommunityatsignificantlocationsofoperation.DeliveringExcellencep.15EN3Directenergyconsumptionbyprimaryenergysource.AdvancingSustainabilityp.3233EN4Indirectenergyconsumptionbyprimarysource.AdvancingSustainabilityp.3233EN5Energysavedduetoconservationandefficiencyimprovements.AdvancingSustainabilityp.3234EN6Initiativestoprovideenergy-efficientorrenewableenergybasedproductsandservicesandreductionsinenergyrequirementsasaresultoftheseinitiatives.AdvancingSustainabilityp.36EN7Initiativestoreduceindirectenergyconsumptionandreductionsachieved.AdvancingSustainabilityp.32EN8Totalwaterwithdrawalbysource.Appendixp.62EN16Totaldirectandindirectgreenhousegasemissionsbyweight.Appendixp.62EN18Initiativestoreducegreenhousegasemissionsandreductionsachieved.AdvancingSustainabilityp.36EN22Totalweightofwastebytypeanddisposalmethod.Appendixp.62EN26Initiativestomitigateenvironmentalimpactsofproductsandservicesandextentofimpactmitigation.AdvancingSustainabilityp.33LA1Totalworkforcebyemploymenttypeemploymentcontractandregionbrokendownbygender.Appendixp.59LA2Totalnumberandrateofnewemployeehiresandemployeeturnoverbyagegroupgenderandregion.Appendixp.60LA3Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployeesbymajoroperations.DeliveringExcellencep.15LA7Ratesofinjuryoccupationaldiseaseslostdaysandabsenteeismandnumberofwork-relatedfatalitiesbyregionandbygender.Appendixp.61LA11Programmesforskillsmanagementandlifelonglearningthatsupportthecontinuedemployabilityofemployeesandassisttheminmanagingcareerendings.DeliveringExcellencep.16LA12Percentageofemployeesreceivingregularperformanceandcareerdevelopmentreviewsbygender.DeliveringExcellencep.16LA13Compositionofgovernancebodiesandbreakdownofemployeesperemployeecategoryaccordingtogenderagegroupminoritygroupmembershipandotherindicatorsofdiversity.DeliveringExcellencep.15LA15Returntoworkandretentionratesafterparentalleavebygender.DeliveringExcellencep.15HR3Totalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevanttooperationsincludingthepercentageofemployeestrained.DeliveringExcellencep.16HR8Percentageofsecuritypersonneltrainedintheorganisationspoliciesorproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations.DeliveringExcellencep.16SO8Monetaryvalueofsignificantfinesandtotalnumberofnon-monetarysanctionsfornon-compliancewithlawsandregulations.DeliveringExcellencep.26PR1Lifecyclestagesinwhichhealthandsafetyimpactsofproductsandservicesareassessedforimprovementandpercentageofsignificantproductsandservicescategoriessubjecttosuchprocedures.DeliveringExcellencep.24PR5Practicesrelatedtocustomersatisfactionincludingresultsofsurveysmeasuringcustomersatisfaction.DeliveringExcellencep.13 58MandarinOrientalHotelGroupSustainabilityReport2013DirectEconomicValueGeneratedandDistributedDIRECTECONOMICVALUEGENERATEDANDDISTRIBUTEDUSMILLION201120122013CombinedTotalRevenue11196.41283.31360.8EBITDA2161.2172.6.6208.7DirectValueGeneratedRevenue614.2648.3668.6Costofsales377.3415.2408.4Employeewagesbenefits3225.6244.5253.4Paymentstoprovidersofcapitaldividendsfinancing61.871.086.0-Dividendspaid49.859.970.2-Financing1211.115.8Paymentstogovernments4includingtaxes18.717.319.8CommunityInvestments5---1CombinedrevenueincludesturnoveroftheGroupssubsidiaryhotelsinadditionto100ofrevenuefromassociateandmanagedhotels2EBITDAofsubsidiariesplustheGroupsshareofEBITDAofassociatesboth2011and2012wererestated3Both2011and2012wererestated4NogovernmentsaresignificantstakeholdersinthesharesoftheGroupboth2011and2012wererestated5Notyettracked 59APPENDICESMandarinOrientalHotelGroupSustainabilityReport2013TotalWorkforceTOTALWORKFORCEMALEFEMALETOTALByRegion66585455094612095Asia408156325544733661Europe9545578945174314TheAmericas150152137248287324Corporate503593651431ByEmploymentContractFull-time6113564839441095291Part-time13933282674213Casual33446388547226ByColleagueCategoryLineStaff482154403346885473Management145056115944260922Executive17263102372742OtherCasual14340215603583ByAgeGroupUnder3021795021715043503630to50341756263244604950Over509905870642169614ByNationalityAsia417855348445766263Europe9505675544170514NorthAmerica10115388747189816SouthAmerica23751227494644Africa1006261381611Oceania26651435401Other845181491651EXECUTIVETEAMBOARDOFDIRECTORS1MALEFEMALETOTALByAgeGroupUnder30------30to50510000536Over50778222964ByNationalityEurope9901101072NorthAmerica267133321Oceania110000171ExecutiveTeamBoardofDirectorsarealsoincludedinthetotalworkforcevalues. 60MandarinOrientalHotelGroupSustainabilityReport2013TurnoverNEWEMPLOYEESMALEFEMALETOTALOFTOTALEmployeesbyAgeGroup173954.0150946.0324826.9Under30104851.099449.0204262.930to5062458.045242.0107633.1Over506752.06348.01304.0EmployeesbyRegion173954.0150946.0324826.9Asia99156.077544.0176654.4Europe43352.039648.082925.5TheAmericas31149.032651.063719.6Corporate425.01275.0160.5TOTALTURNOVERMALEFEMALETOTALOFTOTALSeparationsbyAgeGroup182754.0158146.03408Under3092552.085248.0177752.130to5077555.062545.0140041.1Over5012755.010445.02316.8SeparationsbyRegion182754.0158146.03408Asia110655.090445.0201059.0Europe40955.033245.074121.7TheAmericas30548.033352.063818.7Corporate737.01263.0190.6TurnoverRatebyAgeGroup27.728.728.2Under3042.539.240.930to5022.723.723.1Over5012.814.713.6TurnoverRatebyRegionAsia27.127.827.4Europe42.942.142.5TheAmericas20.324.322.2Corporate14.012.913.3 61APPENDICESMandarinOrientalHotelGroupSustainabilityReport2013HealthSafetyIncidentsAuditResultsPERFORMANCEINDICATORUNITREGION20092010201120122013SafeSoundSustainableAuditResultsCompliance90.089.390.389.888.3LostTimeIncidentRateLosttimeIncidents100employeesALL3.212.732.902.462.70Asia2.992.863.042.402.83Europe4.202.273.914.584.20TheAmericas3.462.561.901.161.82LostTimeIncidentSeverityRateSeverityofincidents100employeesALL25.2519.4924.2724.5924.20Asia22.4417.6223.5423.0527.50Europe45.8729.1836.3742.4940.42TheAmericas24.8320.4020.5716.9611.38 62MandarinOrientalHotelGroupSustainabilityReport2013EnvironmentalPerformanceSummaryPERFORMANCEINDICATORUNIT2007200820092010201120122013EnergyAbsoluteEnergyConsumptionActualGJ1195232116001011728071224812126111512768891284191MMBTU1132862109947711116071160898119530712102571217179AbsoluteEnergyConsumptionBaselineGJ1195232118438812606181328380138810014214291412807MMBTU1132862112258311948351259061131566513472541339082EnergyIntensityActualMJm21894183617101679168716771640MMBTUft20.1670.1620.1510.1480.1490.1480.144EmissionsAbsoluteEmissionsActualtonsmetricofCO2-e145536140089144726150757155773150896148514tonsUSofCO2-e160424154420159531166179171709166333163707AbsoluteEmissionsBaselinetonsmetricofCO2-e145536142685153630161507169787171492170674tonsUSofCO2-e160424157282169346178029187156189036188134EmissionIntensityActualkgCO2-em2231222211207208198190lbCO2-eft247.246.345.942.342.740.644.6WaterAbsoluteWaterConsumptionActualm32261096202807818734332001394222464322244562376787milliongallonsUS597536495529588588628AbsoluteWaterConsumptionBaselinem32261096214726820839682220417233759123232012462525milliongallonsUS597567551587618614651WaterIntensitylitresguestnight988970971885907901857gallonUSguestnight261256257234240238227WasteTotalWastekilograms787666911016478pounds1736508324287176DivertedWastekilograms13635232301241pounds30060545073367WasteLandfillIntensitykilogramsguestnight3.594.11poundsguestnight7.919.06DiversionRatepercent1721OperationalDataTotalAirConditionedAream2631003631757686049729529747429761249783215ft26792050680016680658538533867804524881940058430445TotalGuestNights2288945209103619291712260673245306124685692771954MandarinOrientalLasVegasisnotincludedinenergyandgreenhousegasemissionfiguresduetoincompletedata.Themajorityoftheenergyconsumptionispartofamajormixedusedfacilityandwearecurrentlyunabletoextractthedatarelevanttothehotel.MandarinOrientalBangkokandMandarinOrientalSanyahavebeenexcludedfromwaterconsumptiondata.Ingeneralpropertieshavebeenexcludedifthedataisdistortedbymajorchangesorabnormallyhighvalueswhereforexampleirrigationisincluded.MandarinOrientalManilaBangkokSanyaLasVegasSanFranciscoAtlantaaswellasTheLandmarkMandarinOrientalandTheGrandLapaMacauarenotincludedinwastefiguresduetoincompletedata.Wastedatain2012wasrestatedduetotheidentificationofanimproperunitofmeasureforonehotel. 63APPENDICESMandarinOrientalHotelGroupSustainabilityReport2013EndnotesDeliveringExcellence1CompensationForce2013TurnoverRatesbyIndustry2013.www.compensationforce.com2014022013-turnover-rates-by-industry.html2UnitedStatesBureauofLaborStatisticsWork-relatedFatalitiesInjuriesandIllnesses2012.www.bls.goviagtgsiag72.htmAdvancingSustainability1WorldEconomicForumGlobalRisks20138thEdition2013.reports.weforum.orgglobal-risks-20132Reductionsinenergyusegreenhousegasemissionsandwaterusearecalculatedasthedifferencebetweentheabsoluteperformanceinthecurrentyearandabaselinevaluewhichassumesthatnomeasureshavebeentakentoincreaseefficiencysincethereferenceyear2007.Thebaselineiscorrectedforvariablefactorssuchasoccupancyweatherornumberofmealsservedtoensurethatdataiscomparablefromyeartoyear.ThemethodwedevelopedfollowstheguidelinesestablishedbytheInternationalPerformanceMeasurementandVerificationProtocolIPMVP.3WorldTravelTourismCouncilLeadingtheChallengeonClimateChange2009.wttc.orgsite_mediauploadsdownloadsleading_the_challenge_on_clima.pdf4RenewableEnergyCertificatesRECsareincludedintheemissioncalculationsAnnualaveragegreenhousegasemissionsperpassengervehicleis5.10tCO2-eperyearasinwww.epa.govcleanenergyenergy-resourcesrefs.html.EmissionsfromstationarycombinationssuchasboilershavebeenbasedontheGreenhouseGasProtocolCrossSectionTools.5www.epa.govcleanenergyenergy-resourcesrefs.html6ElectricityemissionfactorsforpropertiesoutsidetheUShavebeenobtainedfromtheInternationalEnergyAgency.ElectricityemissionfactorsforUSpropertieshavebeenbasedontheeGridoftheUSEnvironmentalProtectionAgencyEPA.7Chilledwaterpurchasedfromexternalsourcessuchasdistrictorcentralisedcoolinghasbeenconvertedtoenergyandemissionsusingthesimplifiedapproachforelectric-drivencompressorandaCOPof4.2asdefinedbyCaliforniaClimateChangeRegistry.8SteamorheatingpurchasedfromexternalsourcessuchasdistrictorcentralisedheatinghasbeenconvertedtoemissionsusingEnergyInformationAdministrationVoluntaryReportingofGreenhouseGasesAppendixN.9MandarinOrientalManilaSanyaBangkokAtlantaSanFranciscoandLasVegasaswellasTheGrandLapaMacauandTheLandmarkMandarinOrientalHongKongarenotincludedinthewasteguresduetoinconsistenciesindatacollectionmethodology.Wearestrivingtocorrecttheseprocesses.10WorldEconomicForumGlobalRisks20138thEdition2013.reports.weforum.orgglobal-risks-201311MandarinOrientalSanyaandMandarinOrientalBangkokarenotincludedinwaterconsumptionfiguresduetoinconsistentdata.Wearestrivingtocorrecttheseprocesses. MandarinOrientalHotelGroupCorporateOfce281GloucesterRoadCausewayBayHongKongmandarinoriental.comThiswasprintedonENVIRONMENTPapersPC100WhitefromNeenahPapermanufacturedentirelywith100CertiedRenewableEnergymadeCarbonNeutralPlusandProcessedChlorineFree.ThispaperisGreenSealcertiedensuringitcontains100postconsumerberandthatthemillprocessesincludingpackagingareenvironmentallypreferable.NeenahPaperisanEPAGreenPowerPartnerandamemberoftheChicagoClimateExchange.