2 014
SUSTAINABILITYREPOR T2

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

D EL IVERIN G EXC EL L EN C E
AD VAN C I N G SU STAI N ABI L I T Y
C H AM P ION IN G C OMM U N ITY

Mandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

Table ofContents
Introduction

4

About Mandarin Oriental Hotel Group
Message from the CEO
About this Report
Acting with Responsibility
Governance for Sustainability
Commitments and Practices

5
6
7
8
9
11

Delivering Excellence

12

Delighting our Guests
Our Colleagues
Sourcing Responsibly
Health and Wellness
Safe, Sound & Sustainable

Advancing Sustainability
Reducing Energy Consumption
Reducing Emissions
Reducing Waste
Reducing Water Consumption

Championing Community
Cultural Heritage
Community Programmes

Future Directions
APPEN D I C ES
Sustainability Awards and Certifications
Performance Data
Endnotes

15
16
21
23
24

28
32
35
37
40

42
45
49

52
53
54
58

4

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Mandarin Oriental, Bangkok

Mandarin Oriental, Guangzhou

The Landmark Mandarin Oriental, Hong Kong

Mandarin Oriental, Hong Kong

The Excelsior, Hong Kong

Mandarin Oriental, Jakarta

Mandarin Oriental, Kuala Lumpur

Mandarin Oriental, Macau

Mandarin Oriental, Sanya

Mandarin Oriental Pudong, Shanghai

Mandarin Oriental, Singapore

Mandarin Oriental, Taipei

Mandarin Oriental, Tokyo

Mandarin Oriental, Atlanta

Mandarin Oriental, Boston

Mandarin Oriental, Las Vegas

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, Washington DC

Mandarin Oriental, Barcelona

Mandarin Oriental, Bodrum

Mandarin Oriental, Geneva

Mandarin Oriental Hyde Park, London

Mandarin Oriental, Marrakech

Mandarin Oriental, Milan

Mandarin Oriental, Munich

Mandarin Oriental, Paris

Mandarin Oriental, Prague

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Mandarin Oriental Hotel Group is an international hotel investment and management group with luxury hotels,
resorts and residences in sought-after destinations around the world. Having grown from a well-respected Asian
hotel company into a global brand, the Group now operates, or has under development, 45 hotels representing
almost 11,000 rooms in 24 countries, with 21 hotels in Asia, 9 in The Americas and 15 in Europe, Middle Eastand North Africa. In addition, the Group operates, or has under development, 15 Residences at Mandarin Oriental
connected to its properties. The Group has equity interests in a number of its properties and net assets totalling
approximately US$3.2 billion as of 31st December 2014.
Mandarin Oriental’s aim is to be recognised widely as the best global luxury hotel group, providing 21st century
luxury with oriental charm in each of its hotels. This will be achieved by investing in the Group’s exceptional facilities
and its people, while maximising profitability and long-term shareholder value. The strategy of the Group is toopen the hotels currently under development, while continuing to seek further selective opportunities for expansion
around the world.
The parent company, Mandarin Oriental International Limited, is incorporated in Bermuda and has a standard listingon the London Stock Exchange as its primary listing, with secondary listings in Bermuda and Singapore. Mandarin
Oriental Hotel Group International Limited, which operates from Hong Kong, manages the activities of the Group’s
hotels. Jardine Matheson Group is the parent company of Mandarin Oriental and owns a majority of the equity
shares. For more information about Mandarin Oriental’s corporate structure, governance or for our full financial
disclosure, please refer to the Group’s Annual Financial Report available on our website at mandarinoriental.com.

IN T ROD U C T ION

About Mandarin Oriental Hotel Group5

6

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Doing More for a Sustainable Future
For more than 50 years, Mandarin Oriental has been established as a leader inluxury hospitality, and has a rich and proud history. As our Group has spread to
new and diverse locations around the world, we remain committed to operating
our hotels to the highest standards and in responsible and sustainable ways.

As our Group
has spread to
new and diverse
locations aroundthe world, we
remain committed
to operating ourhotels to the highest
standards and in
responsible andsustainable ways.

I’m delighted to present our 2014 Sustainability Report, which provides an
overview of the progress we have made toward a more sustainable future. With
the dedication and support of our colleagues worldwide, the following notableaccomplishments were achieved:•W e increased energy efficiency by 17.4% and reduced greenhouse gas
emissions intensity by 18.3% compared to a 2007 baseline, even as thecompany expanded operations.
•W e achieved a cost savings of US$30.8 million from 2007 to 2014 by ourcontinuous efforts to reduce energy consumption.
•A fter a two-year implementation period, we incorporated environmental
audit results into our hotels’ overall audit score, encouraging a culture ofaccountability.
•W e contributed to many charitable causes in our communities by volunteering
time, raising money and donating in-kind.
We have set public goals and tracked performance in key environmental areas
for many years, helping to drive continuous improvement. We have alreadysurpassed our 2016 short-term environmental goals to reduce energy, emissions
and water consumption, and are advancing steadily toward our 2020 vision.
While we are encouraged by that progress, waste minimisation is an area that
requires greater attention if we are to achieve our goals. Our Group and Hotel
Corporate Responsibility Committees are providing the leadership to further
advance our sustainability efforts. Indeed, in 2015, we will transition to the
Global Reporting Initiative’s G4 framework, the most rigorous and transparent
reporting option available.
With our strong values and principles firmly in place, I believe that Mandarin
Oriental will continue to delight its guests and further strengthen its sustainability
performance going forward. Thank you for following our progress.

Edouard EttedguiGroup Chief Executive

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

7This is the Group’s fourth annual sustainability report.
Information presented in this report is a summary update toour 2013 report, which is consistent with Global Reporting
Initiative (GRI) sustainability reporting framework 3.1, selfreported to Level C. In prior years, a third party has assured
the report and we intend to seek assurance for
future publications. For prior reports, please visit
mandarinoriental.com/corporate-responsibility.

•	Two hotels which opened in 2014—Mandarin Oriental,
Taipei in Taiwan and Mandarin Oriental, Bodrum in Turkey;•	Two hotels which left the Group in 2014—Grand Lapa in
Macau and Elbow Beach in Bermuda; and•	Mandarin Oriental, Manila in the Phillippines which wasclosed in September 2014 1.
No other structure changes occurred in the reporting
period. Hotels under development and residences are notincluded in this report.

Transition to G4 Reporting
In 2015, the Group will transition its reporting processes,
indicators and definition of material topics to align with the
GRI G4 guidelines. A formal process will be undertaken to
determine if additional GRI aspects are material and should
be included in future reporting.

Mandarin Oriental Hotel Group has selected 2007 as thebase year for the environmental data in this report and2008 as the base year for occupational health and safety
data. As structure changes occur, historical and base year
data are adjusted.

Scope and Boundaries

All calculations are completed in accordance with industry
practices or as recommended by the GRI, and are
explained within each section. Restatements of prior data
are described in their respective endnotes.

This sustainability report presents information from theGroup’s 25 hotels that operated throughout 2014. Unlessotherwise specified, the report boundary excludes:

IN T ROD U C T ION

About This Report

8

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Acting with Responsibility
Our Guiding Principles, our Code of Conduct and our governance process create the foundation for Mandarin
Oriental’s responsible business practices.

Guiding Principles
Mandarin Oriental Hotel Group’s
mission is to completely delight andsatisfy our guests, and our mission is
supported by our long-standing Guiding
Principles that describe the values ofour company and our colleagues. Our
Guiding Principles underpin everythingthat we do on a daily basis, ensuringthat we operate to the highest possible
standards. Responsibility is a key
tenet of Mandarin Oriental’s Guiding
Principles: “We will actively participate
in the improvement of the environment,
just as we will be responsible
members of our communities andindustry organisations”.

Responsible
Operating Practices
The Group conducts business in a
professional, ethical and even-handed
manner. Our ethical standards areclearly set out in the company’s Codeof Conduct, a set of guidelines towhich every colleague must adhere.
Our Code of Conduct requires that
we comply with all laws of generalapplication, all rules and regulations
that are industry specific and proper
standards of business conduct.
The code prohibits the giving or
receiving of illicit payments andrequires all colleagues to be treatedfairly, impartially and with respect. It

also requires that all managers mustbe fully aware of their obligations
under the Code of Conduct andmust establish procedures to ensurecompliance at all levels within theirorganisations. The Group has in place
procedures by which colleagues
can raise, in confidence, matters ofserious concern in areas such as
financial reporting or compliance.
Mandarin Oriental has Group-wide
hiring and employment guidelines aswell as strict anti-harassment and antidiscrimination policies. Every colleague
receives training on our employment
policies upon hire.

Our Guiding Principles
Delighting our guests

Being the best

We will strive to understand our client and guest
needs by listening to their requirements andresponding in a competent, accurate and timely
fashion. We will design and deliver our services
and products to address their needs. In fact, weare committed to exceeding their expectations by
surprising them with our ability to anticipate and fulfill
their wishes.

We will be an innovative leader in the hotel industry
and will continually improve products and services.
We will seek from our suppliers the highest quality
products and services at the best value.

Delivering shareholder value
We are committed to being a growing company. Our
success will result in investment returns which areconsistently amongst the best in the hotel industry.

Working together as colleagues
We will emphasise the sharing of responsibility,
accountability and recognition through a climate of
teamwork. By working together as colleagues andby treating each other with mutual respect and trust,
we will all contribute to the Group’s overall successmore productively than if we worked alone.

Promoting a climate of enthusiasm
We are committed to everyone at Mandarin Oriental
by providing a caring, motivating and rewarding
environment. As an industry leader, we are committed
to bringing out the best in our people througheffective training and meaningful career and personal
development, and by encouraging individuality andinitiative.

Playing by the rules
We will maintain integrity, fairness and honesty inboth our internal and external relationships and willconsistently live up to our commitments.

Acting with responsibility
We will actively participate in the improvement of theenvironment, just as we will be responsible membersof our communities and industry organisations.

9

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Our Corporate
Responsibility
Policy:The Group Corporate Responsibility Committee (GCRC) is responsible for Mandarin
Oriental’s overall sustainability strategy, including the setting of measurable goals,
programme development, and promoting and soliciting feedback on Corporate
Responsibility initiatives. The GCRC is directed by our sustainability Executive
Champion, Terry Stinson, Group Development Director and President, The Americas,
who is an executive-level member of the management board.

Mandarin Oriental
is committed tocontributing to thecommunities in which
we operate andresponsibly managing
our environmental
impacts and social
commitments.

In addition, every Mandarin Oriental property also has its own Hotel Corporate
Responsibility Committee (HCRC), led by a designated Champion. Each HCRC
is responsible for implementing Group and local sustainability initiatives withthe support of our colleagues. The hotel Champions are responsible for driving
internal colleague engagement and raising issues identified at the hotels to their
General Managers and to the GCRC, which in turn raises issues to the Executive
Champion and the Board of Directors, if necessary.

yu n it
mm

ea

Ex

on

in

g

ll
Co

Co

ri n

ll e

il
Te ity
am
/

g

iv e

ce

ab

Guiding
Principles

es

in
ta n
S u s o rti
Rep

D el

g

HCR HCC R
C

gu

G
Exec CRC
uti
ve

pion
ith
w ham
C

ACT
IMP
ER
LD

S

STA
CT
KE
A
P
c in g S u s t a i n a bi
n
HO
a
v
lity
IM
Ad

d
an ons
C mpi
ha

BU
SIN
ES

In 2014, the GCRC held one meeting, and its representative conducted regional
conference calls with hotel Champions during the year. These conference calls
were created in 2012 to share information related to sustainability initiatives,
guidelines, challenges and activities underway throughout the Group. In 2014,
the format was enhanced to allow each Champion to present key highlights anddiscuss progress. The presentation format allows hotel Champions to share ideas
and best practices with peers and to receive feedback from the GCRC.

nc

e

BRA

Ch

N D I M PA C

am

T

pi

IN T ROD U C T ION

Governance for Sustainability

10

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

We recognise the importanceof engaging our stakeholders to better
understand their viewpoints.
Stakeholder Engagement
Effective consultation and involvementwith our stakeholders is crucial tounderstanding their viewpoints so
we can better align our businesswith their goals. To advance dialogue
with our stakeholders, Mandarin
Oriental endeavours to share boththe successes and challenges of oursustainability programme.

• Colleagues• Hotel owners and developers• Local communities in which we
operate• Shareholders• Vendors, suppliers and contractors• Industry peers and tradeassociations•N on-government organisations(NGOs) and outside advisors

Our stakeholder engagement process
has evolved over our long history witheach respective stakeholder group:

We engage our stakeholders throughvarious avenues of communication,
including our colleague engagement,

guest satisfaction and loyalty surveys,
investor meetings and the publicationof our annual financial and sustainability
reports. In 2014, together with the
GCRC and led by our Executive
Champion, we began a process ofevaluating and enhancing our current
engagement mechanisms. In 2015,
we will continue the process and use
the results to define key topics andperformance indicators to shape theway we report publicly based on theprinciples of materiality as we transition
to the GRI G4 guidelines.

11

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

As stated in our corporate responsibility policy, Mandarin Oriental is committed to contributing to the communities in which
we operate and responsibly managing our environmental impacts and social commitments.

Commitments

Operate in anenvironmentallyand socially
responsible way

Delivering
Excellence

Corporate Responsibility Practices
Through training and education, we are
empowering our colleagues to make decisions that areenvironmentally and socially responsible.

Management responsibility is assigned and resources areallocated to implement and review performance ofcorporate responsibility policy commitments and objectives.

Stakeholders are consulted and their feedback issolicited to continuously improve our performance.
Engage and inspireothers in ‘Doing More
for a Sustainable Future’

Advancing
Sustainability

Publicly report
our impact on theenvironment

The Group will effectively measure andmonitor the environmental footprint of all ouroperations to publicly report on our progress.

Meet or exceed allapplicable environmental
standards

The Group is incorporating environmental management
systems and best practices into our hotel
operations to continuously improve performance.

Minimise ourconsumptionof resources including
energy, water andmaterials

Our properties will employ sustainable building
principles throughout the life cycle of the building—siting, design, development, maintenanceand refurbishment—wherever practicable.

Reduce our greenhousegas emissions,waste and pollution

Championing
Community

The Group and our hotels partner with members of their local
communities, the hotel and tourism sector, government and nongovernment organisations to achieve broader sustainability goals.

Positively impact our
local communities
and celebrate ourcultural heritage

The Group will develop sustainable supply chain
management guidelines to ensure that environmental criteria
are taken into account in all purchasing decisions.

Innovation and technology are used to gradually
reduce our dependence on fossil fuels and improve
resource efficiency in all areas of our operation.

All colleagues are encouraged to participate in projects that
contribute to the well-being of the communities in which they
operate: projects that help those in need; preserve cultural
heritage; conserve natural resources and restore habitats.

IN T ROD U C T ION

Commitments and Practices

12

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Delivering
Excellence
Mandarin Oriental’s mission
is to completely delightand satisfy our guests. We
are committed to making
a difference every day,continually getting better tokeep us the best.

14

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Delivering Excellence
Mandarin Oriental’s legendary service underpins everything that we do, and the Group is committed to exceeding guests’
expectations on a daily basis. Our approaches to guest satisfaction, colleague development, employment, responsible
sourcing, wellness and safety play an important role in fulfilling our mission and distinguishing the Mandarin Oriental brand.

15

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Delighting our Guests
against other international standards,
including the American Automobile
Association (AAA), the Forbes Travel
Guide and the Michelin Guide. In 2014,
nine Mandarin Oriental hotels achieved
the Forbes “Five-Star” status and 11 ofour restaurants were honoured with a
total of 16 Michelin stars, more than any
other hotel group in the world.

Guest Preferences
Delighting our guests means listening
to their requests and taking action.
Our guests have become increasinglyinterested in the use of hybrid-electricand electric vehicles. As a result, in2014 we installed 22 charging stations
across our hotels in the United States.
Mandarin Oriental, Boston also maintains
a Tesla Model S as one of their guest
transportation vehicles. We continue tomonitor this trend and are delighted tosupport our guests’ preference for moresustainable modes of transportation.

At the crux of all that we do is
the quality of our service. Gaining
feedback from our guests to ensure
our constant improvement is vital.
We conduct a customer satisfaction
and loyalty survey with the help of athird-party organisation that sends
an online questionnaire following aguest’s stay. Detailed, actionable
monthly feedback is then provided
to our managers on property, whichhelps to enhance our service delivery.
In 2014, the Group received over
37,000 guest satisfaction surveys.
Mandarin Oriental’s overall satisfaction
ratings indicate a consistently highlevel of guest satisfaction and loyalty
to the brand, varying less than
three percentage points since 2009.
In 2014, we achieved an overallsatisfaction rate of 88%, a slight
improvement compared with lastyear’s performance.

Mandarin Oriental’s overall satisfaction ratings indicate aconsistently high level of guest satisfaction and loyalty to the brand.

AD VAN C I N G SU STAI N ABI L I T Y

Measuring our hotels’ performanceon a regular and consistent basis, andsharing the results across the Group,
is important if we are to be recognised
as the best in our industry. All hotels
receive three annual audits for quality
assurance, and the results are sharedGroup-wide. Mandarin Oriental maintains
various quality measurement processes
to monitor and improve performance,
including the international benchmarking
standards established by Leading Quality
Assurance. We are also measured

Guest Satisfaction

D EL IVERIN G EXC EL L EN C E

Mandarin Oriental’s reputation forproviding legendary service is the hallmark
of our brand. To help our colleagues on
their mission, the Group has created theLegendary Quality Experiences—over
200 company guidelines, which focus
on experiences rather than basic luxury
standards. It is centred on 11 pillarsof service and covers all the important
aspects of a guest visit.

G UE S T S AT IS FAC T ION AN D L OYALT Y S URV E Y RE SU LTS
2009– 2014
100

90

210
88

88

87

87

88

2010

2011

2011

2013

2014

80

C H A MP IO NIN G C OM M UN I TY

60

40

20

0

2009

16

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Our Colleagues
Mandarin Oriental colleagues aim
to be the best and we support
them by providing memorable andeffective learning experiences, as well
as rewarding career development
opportunities. We are passionate about
the development of our colleagues at alllevels of the organisation—in our hotels,
corporate offices and around the globe.
Upon commencement with the Group,
new colleagues follow our extensive
MOve In orientation process which
introduces them to our unique company
culture and our oriental heritage. A
range of Learning and Development
programmes are provided to address
the competency requirements for thevarious levels within our organisation,
as well as individual learning needs. In
fact, a Learning and Development plan
is a mandatory element for each leader
in our organisation. This ensures thatwe plan appropriate training to help
our colleagues develop in their careersand gain the right skills to achieve
their goals. Goal planning discussions
are held at the beginning of the year
and the Learning and Development
plan targets specific competencies
needed for continued advancement.
We know this is vitally important to
our workforce; in our most recent
Colleague Engagement Survey, careerdevelopment was rated as the leaddriver of colleague engagement.
Performance and succession planningremains a critical priority for Mandarin
Oriental in order to support ourcontinued global expansion, and tosatisfy the career aspirations of ourcolleagues. To support this, we haveestablished an online performance
management system, giving
colleagues and their managers theability to track performance, training
and overall professional development
in real-time. The system promotes
more frequent manager interaction by
supplying simple and easily accessed
tools for providing relevant feedback.
Colleagues and managers can add
developmental or coaching comments
at any time during the year, and it’s
simple to track performance metrics
accurately. Annual performanceand succession planning reviews
are completed at all levels of theorganisation and are reviewed by theGroup’s senior management team.
Regular feedback processes ensurethat colleagues are aware of theirpotential career progress. At the endof 2014, 98% of our 2,112 company
leaders had a performance review
with their manager. The top-rated
competencies were ethics, values,
integrity and customer focus.

17

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Executive Development Centre

Our colleagues participate in various
training and personal development
programmes, as outlined below, tohelp achieve their goals. The Group’s“Learning Framework” is a road map
for colleague development, based on
their current and future career goals.
Training for competency rather thanhours of training continues to be ourway to ensure success. While much of
our training is not formally recorded,
we carefully measure whether eachcolleague is able to accomplish thetasks of his or her job to the required
standard. Our training is personalised
rather than a one-fits-all approach andfocuses on the skills and abilities needed
to perform each position.

To support the career developmentof our managers and to grow ourtalent internally, we introduced an
Executive Development Centre in
2014. Used by many organisations
globally, Development Centres focus on
customised educational programmesthat are suited to a company’s uniquebusiness needs and are particularly
useful in relation to talent identificationand talent management.

An extensive orientation
during the first
90 days of employment
PARTICIPANTS
All Colleagues

MOve Forward

A wide-ranging management
development programme toenhance business skills andleadership qualities
PARTICIPANTS
Experienced Managers /Department Heads andExecutive Committee

MOve UpMBA Executive Programme

PARTICIPANTS
Supervisors / Junior Managers

PARTICIPANTS
Hotel and Corporate
Senior Managers

A six-month course
focused on competency
building and individual
and team leadership skills

A company-funded programmewith the Royal Melbourne Instituteof Technology (RMIT) achieved
over a 3–5 year period

C H A MP IO NIN G C OM M UN I TY

Our hotel Learning and Development
Managers are also pivotal to thesuccess of our training and careerdevelopment initiatives. In 2014, we
held a ten-day global accreditation
programme for our new Learningand Development managers, toensure that they deliver company
programmes with expertise andconsistency against our 70 Learningand Development standards. In
2014, we designed a “line colleague
certification programme”, to motivate
and reward new starters who complete
their initial job training within their first
three months of employment. As ourGroup expands to new locations, it
has become essential for new recruits
to have a strong understanding of ourculture. Based on the programme’s
initial success, this is being launchedin all Mandarin Oriental hotels in 2015.

MOve InThe Executive Development Centre
outcomes are also used by theGroup’s management to help in
the resources planning process.
The Mandarin Oriental Executive
Development Centre offers supportand structure to help to uncover ourmanagers’ potential for advancement
within the Group.

AD VAN C I N G SU STAI N ABI L I T Y

The Human Resources team plays animportant role in shaping our strategies
and implementing global initiatives at
a local level. In November 2014, all
Mandarin Oriental Human Resources
Directors attended a week-long,internal conference designed to build
skills in strategic planning and enhanceteam effectiveness as business partners
with hotel operations. The conference
also focused on improving the quality ofcolleagues’ career development plans,in order to better support colleagues inachieving their career ambitions.

The key objective for our Executive
Development Centre is to provide senior
managers with feedback to facilitate
their personal and career development.
Through the Centre’s programme,senior managers produce an individual
development plan focused on enhancing

leadership effectiveness and maximising
personal leadership style. In 2014, we
ran our first Executive Development
Centre with the participation of seven
Hotel Managers. The mentors andobservers for the programme included
Mandarin Oriental’s Group Director for
Human Resources, Paul Clark and the
Executive Vice President of Operations
for Asia, Richard Baker.

D EL IVERIN G EXC EL L EN C E

Training for Excellence

18

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Mandarin Oriental’s
Executive MBA Programme
Our in-house Executive MBA
programme is the pinnacle of ourLearning and Development process.
Offered in conjunction with the Royal
Melbourne Institute of Technology(RMIT), this rigorous businessdevelopment programme is available tosenior colleagues who are nominatedby management and endorsed by ourGroup Chief Executive. The Group

covers tuition and travel expenses,
as well as the time necessary forcolleagues to complete required
coursework, whether through online
learning modules or face-to-faceresidential programmes at RMIT andother Mandarin Oriental hotels. Since
2008, 24 senior managers have
graduated from the Mandarin Oriental
MBA programme, and a number ofthese managers have since beenpromoted. Two former MBA students

now hold the position of General
Manager, and seven have risen to
Hotel Manager positions. Currently,
ten managers are enrolled in our MBA
and should complete the programmein 2017. We introduced “Corporate
Social Responsibility and the Law”
as a topic for one of the educational
modules to ensure that our future
leaders will be ‘doing more for asustainable future” at Mandarin
Oriental Hotel Group.

TH E C L ASS OF 2014

“It is an important strategy for Mandarin Oriental todevelop and promote from within wherever possible.
Our MBA programme strengthens our talentpipeline in the organisation, supporting the growthof our senior managers by better equippingthem for lifelong learning and preparing them for
more senior roles with the Group in the future.”—Jacqueline Moyse
Head of Organisational Development

Sustainability in Action
Sustainability Training
An educated and engaged workforce is key to operating our hotels more sustainably. To help our colleagues make socially andenvironmentally sound decisions, we launched a dedicated Sustainability Training Programme for all employees. The two-and-ahalf hour course is designed to improve our colleagues’ knowledge of sustainability issues and reinforce the value of sustainable
practices at Mandarin Oriental. Colleagues gain a global perspective on environmental issues important to Mandarin Oriental’sbusiness and discuss issues of concern in their local communities. All colleagues completed the Sustainability AwarenessTraining programme by June 2014, and it is now part of the Group’s mandatory MOve In orientation programme for newcolleagues. The training is further supported by material (in multiple languages) available on the company intranet, including
current and past sustainability reports, posters and best practice information uploaded by fellow colleagues.

FAISONS PLUS
POUR UN AVENIRDURABLE

LET’S DO
MORE FOR A
SUSTAINABLE
FUTUREHAGAMOSMÁS POR UN
FUTUROSUSTENTABLE

Chez Mandarin Oriental, nous soutenons nos communautés
locales et gérons de manière responsable notre
empreinte environnementale et nos engagements sociaux.

At Mandarin Oriental, we contribute to our local
communities and responsibly manage
our environmental impact and social commitments.

En Mandarin Oriental, contribuimos con nuestras
comunidades locales y controlamos responsablemente
nuestro impacto medioambiental y cumplimos
con nuestras obligaciones sociales.

AGIR DE MANIÈRE RESPONSABLE

RÉDUIRE L’IMPACT

Exercer nos activités de manière

FAIRE LA DIFFERENCE

Réduire nos émissions deresponsable tant sur le plangaz à effet de serre, nosenvironnemental que social

déchets et notre pollution

Avoir un impact positif sur nos
communautés et célébrer notre
patrimoine culturel

INCITER LES AUTRES À PARTICIPER

ÊTRE TRANSPARENT

Impliquer et inspirer les autres à faire

Faire état publiquement de notre

plus pour un avenir durable

CONSERVER LES RESSOURCES
Minimiser notre consommation enénergie, en eau et en matériaux

impact sur l’environnement

ACT RESPONSIBLY
Operate in anenvironmentally andsocially responsible way

REDUCE IMPACTS
Reduce our greenhousegas emissions,waste and pollution

ENGAGE OTHERS
Involve and inspireothers in doing more fora sustainable future
CONSERVE RESOURCES
Minimize ourconsumption of energy,
water and materials

OBTENIR DES RÉSULTATSSatisfaire aux normes
environnementales applicables
ou les dépasser

MAKE A DIFFERENCE
Positively impact ourcommunities and celebrate
our cultural heritage
BE TRANSPARENT
Publicly repor t
our impact on
the environment

GET RESULTS
Meet or exceed
all applicable
environmental standards

マンダリン オリエンタルでは地域社会に貢献し、責任ある方法で環境対策と社会活動に取り組んでいます。

責任ある行動

環境への影響の軽減

プラスの影響力

温室効果ガス排出量、廃棄物、汚染を削減します

地域社会に良い影響を与え、伝統ある文化を大切にします

他者の協力

透明性の実現周りの人のやる気と意欲をかき立て、
持続可能な未来のためにもっとできることを実行します

資源の保全
エネルギー、水、原料の消費量を最小限に抑えます

私たちが環境に与える影響を
公表します

成果の達成

適 用されるすべての環境基準を満たし、さらにその上を目指します

REDUCIR LOS IMPACTOSReducir nuestras emisiones degas de invernadero, desperdicios
y contaminación.

COMPROMETER A OTROS
Comprometer e inspirar a otros
para que hagan más para un
futuro sustentable

CONSERVAR LOS RECURSOS
Minimizar nuestro consumo deenergía, agua y materiales

持続可能な未来のためにもっと
できることを

業務を通じて環境的・社会的責任を果たしますACTUAR RESPONSABLEMENTE
Administrar de una manera
ambiental y socialmente
responsable

MARCAR UNA DIFERENCIA
Impactar positivamente a nuestras
comunidades y celebrar nuestra
tradición cultural

SER TRANSPARENTE
Informar públicamente nuestro
impacto en el medio ambiente

LOGRAR RESULTADOS

Cumplir o exceder todas las
normas medioambientales
aplicables

20

Diversity and Equal
Opportunity at theCore of Our Company
Mandarin Oriental values diversity andpromotes opportunities for all colleagues
independent of race, ethnicity, nationality
and gender. We are proud to be a diverse
company with a global footprint. Over
100 nationalities are represented in our
workforce of over 11,000 colleagues2.
Reflecting the location of our hotels
around the world, the majority of ourcolleagues (58%) are based in Asia,
followed by the Americas (24%). Chineseand U.S. citizens comprised 35% of
our total workforce. Due to the natureof our business, most of our colleagues(73%) are local to the operation,
including managers and executives(80%)3. Women make up 46% of our
total workforce and the gender balanceacross colleague categories is generally
equal. The number of female managers
continues to increase at our company,
rising to 46% in 2014.
Corporate leadership (including theoperating committee and Mandarin
Oriental Hotel Group’s board of directors)
is comprised of more men (86%) andEuropean nationals (71%) than the

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

company as a whole. Senior leadershipand the individual hotels are more ethnicallydiverse than corporate leadership and are
representative of the local population.

Employee Satisfaction
and Turnover
We measure employee satisfaction
regularly with our “Colleague
Engagement Survey”, a voluntary andanonymous online questionnaire thatis issued to the entire hotel workforce.
The colleague response rate to ourmost recent survey in 2013 was 96%
and revealed an 86% favourable rating(excellent or above average). Since
2010, the percentage of colleagues
rating Mandarin Oriental Hotel Group
as favourable has increased by one
percentage point year over year. While
our employee satisfaction remains
high, turnover rates have increased.
The hospitality industry is characterisedby high turnover. Mandarin Oriental
experienced a global turnover rate of
32% in 2014, an increase of 5% fromthe prior year and above the current
industry average of 27.6%4. The increasein turnover was driven by slight increases
across all regions. Colleagues under 30
continue as the demographic with thehighest turnover rate of 49.4%.

Workplace Wellness
As an employer of choice, Mandarin
Oriental is committed to providing acaring and safe work environment
and encouraging a healthy lifestyle forall colleagues. Each year, the Groupdevelops new and creative initiatives tocontinually enhance colleague wellness.
One of the best areas to support ourcolleagues’ wellness is in colleague
dining. In 2014, The Excelsior, Hong
Kong and Mandarin Oriental, Hong
Kong initiated a “Green Monday”
program offering vegetarian menus toencourage healthier eating habits andbuild awareness on the importance ofthe environmental footprint of menu
items. Mandarin Oriental, Hong Kong
also introduced a Zero Food Waste
Day, a monthly event encouraging
colleagues to reduce food waste.
The Group’s commitment to healthand wellness not only extends tocolleagues, but also to their families.
Mandarin Oriental has organised andsponsored numerous activities for
its hotels around the world, ranging
from family days at the park and local
cycling races to running clubs andyoga classes.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201421

Sourcing Responsibly
D EL IVERIN G EXC EL L EN C E

Mandarin Oriental continually develops unique opportunities for sustainable sourcing in each aspect of its daily operations with a
specific focus on housekeeping supplies and food and beverage ingredients. Through sustainable sourcing, we are committed toreducing the use of harmful chemicals while supporting and engaging the communities in which we operate. Each hotel is encouraged
to leverage local and sustainable suppliers for their products in order to help protect the future availability of those goods.

AD VAN C I N G SU STAI N ABI L I T Y

Cleaners have a considerable impact on
both the environment and human health,through their ingredients, manufacturing
process, packaging, use and disposal.
At Mandarin Oriental, we fully
acknowledge the potential risks whenevaluating our products, and as such,many of our hotels have selected Ecolab
Aquanomic for use in their laundry andcleaning operations. Properties thatcurrently utilise Ecolab Aquanomic
products see reduced chemical usage,
as well as up to a 40% reduction inenergy and water use when compared
to traditional laundry operations.

These reductions are due in part tothe streamlined wash process andsubsequent lower water temperatures.
Housekeeping colleagues at several
Mandarin Oriental properties aremaking strides toward use of
biodegradable chemicals over more
traditional cleaners. For example,
Mandarin Oriental, Hong Kong uses
Ecolab Aquanomic products forsurface cleaning. Whilst each hotel
currently selects cleaning products
based on individual needs, anoverall approach to cleaners will beconsidered as part of a larger programin the near future.

In the Americas region, we aredelighted to partner with hospitality
procurement service company Avendra
to help in leveraging buying powerwith key suppliers of cleaners andconsumables, whilst being mindfulof the environment and overall
quality. Suppliers undergo a rigorous
approval process before they become
part of the Avendra network. Witha wide range of available suppliers
and products, Avendra is looking atways to help us increase the use ofrenewable, recyclable and eco-friendly
products to support our sustainablesourcing goals.

C H A MP IO NIN G C OM M UN I TY

Cleaners and Consumables

22

Food and Beverage
We believe that the use of local,
seasonal and organic ingredients
supports our communities, enhances
taste and adds unique flavour to thedining experience at our hotels. While
we may not be able to source all
products locally, all Mandarin Oriental
hotels are actively encouraged to doso wherever practicable.

Hotel Initiative:
Mandarin Oriental, Las Vegas
Chef David Werly has integrated
his passion for sustainability
across all facets of restaurant
operations at Mandarin Oriental,
Las Vegas, delivering triple bottom
line excellence in the hotel’s foodand beverage offerings. At MOzen
restaurant, Werly delivers a culinary
tour through Asia with a wide
variety of delicious dishes served
alongside a selection of classics.
Sushi is a featured menu item andChef David Werly

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Chef Werly pays special attention tosustainable seafood on the menu.
Seeking to improve the awarenessof environmental issues in his supply
chain, Chef Werly adheres to theMarine Conservation Society’s
FishOnline guidance for responsible
sourcing. He does not serve fishthat are endangered or whose catch
causes other environmental damage.
He also makes visits to farms andother facilities to ensure practices
are environmentally friendly. Though
Las Vegas isn’t known for its local
farming, Chef Werly is able to source
regionally from nearby California,
actively seeking seasonal ingredientsand supporting biodynamic farms
to help address the region’s water
stress. His philosophy extends
beyond the source of ingredientsto the kitchen’s operations. The
restaurant’s refrigeration units arecooled with water, which is thenrecycled in a loop to conserve energy.

MOzen Bistro at
Mandarin Oriental,
Las Vegas

Group Initiative:
Shark’s Fin Ban
We are sensitive to the impacts
caused by overfishing andenvironmentally destructive fishingmethods. As a further example ofour commitment to sustainability, theGroup officially banned shark’s finfrom all restaurants and banqueting
menus worldwide at the beginning of
2012. Given the prominence of thisdish for ceremonial dining in Asia, theban was expected to have economic
consequences for several hotels.
Two years after the ban, we canconfirm that this has not been thecase. Due to the support of ourguests, who believe in the needto preserve ocean biodiversity, thebusiness impact has been minimal.
More importantly, we believe thatbanning shark’s fin was the rightthing to do for the environment andsupports our commitment to ‘doing
more for a sustainable future’.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201423

D EL IVERIN G EXC EL L EN C E

Mandarin Oriental takes pride in its award-winning spasthat provide tranquil spaces for relaxation and renewal.
We also take pride in supporting causes that help promotehealth and wellness. In recognition of Breast Cancer
Awareness month in October 2014, The Spas at Mandarin
Oriental were delighted to launch the Inner Strength spa
treatment, created in conjunction with Aromatherapy
Associates’ founder Geraldine Howard to help her copeduring her own battle with cancer.

“In keeping with the Group’s integrated mind-body
approach to wellness, the Inner Strength treatment is aperfect addition to our spa menu. It has been designed
to promote rejuvenation and empowerment, and isparticularly suited to anyone facing a challenging period intheir lives,” said Jeremy McCarthy, Mandarin Oriental HotelGroup’s Director of Spa.
As further support, ten percent of the cost of each Inner
Strength treatment purchased from October throughDecember 2014 was donated to a cancer research charity
chosen by each individual hotel.

Guided by our oriental heritage but influenced by local
cultural diversity, Mandarin Oriental has created distinctive spa
concepts with a unique sense of place in every location.

C H A MP IO NIN G C OM M UN I TY

The full-body treatment combines massage, warm
compresses, guided breath, and reflexology to easephysical tensions and emotional anxiety. The Inner Strength
oil used in the treatment contains a powerful blend ofingredients: calming clary sage and frankincense for focus
and clarity, fortifying cardamom and rosemary, and healingrose, vetivert, and geranium. The treatment concludes withattention to the reflex points in the feet to make guests feel
more grounded and to awaken the senses.

AD VAN C I N G SU STAI N ABI L I T Y

Health and Wellness

24

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Safe, Sound & Sustainable
The welfare of our guests andcolleagues is of paramount importanceto everyone at Mandarin Oriental. Our
comprehensive health and safety efforts
are maintained under a proprietary
programme entitled “Safe, Sound &Sustainable”. Established in 2000, theprogramme helps our hotels comply
with stringent operational guidelines
related to fire, life, health, safety,
security and the environment, which
are based on recognised standards andinternational best practices.
Each fully operational hotel is audited
annually to monitor their compliancewith Safe, Sound & Sustainableguidelines. The audits are conductedby an independent company, PWT
Environmental Consultancy, a UK-based
consulting firm, and include a verificationof documentation and records in place,as well as a physical inspection of the
facilities. The annual audit processensures that hotel management teams
are focused on health and safety issues
and prepared to manage crisis andbusiness interruptions.

unannounced audits four years after
their opening, allowing ample time toadapt to the programme. Despite thechange, there have been no significant
impacts on audit scores, indicating
consistency in our operations. We willcontinue to expand this effort, and all
eligible Mandarin Oriental hotels will
eventually receive unannounced audits.
In 2014, we conducted the third yearof audits against new environmental
guidelines, and for the first time
incorporated the environmental
audit results into the overall audit
performance score. The environmental
guidelines cover the hotels corporate
responsibility committee, managementof energy and water consumption,
greenhouse gas emissions, and thegeneration and disposal of waste.
The two-year audit implementation
schedule allowed hotels to adapt
to the new requirements before
environmental activities start
contributing to the overall audit
performance score in 2014.

An Evolving ProgrammeOver the past few years, we have
gradually migrated from announced
to unannounced audits to betterreflect how our operations are run ona daily basis. Hotels are eligible for

The Safe, Sound & Sustainableguidelines are continuously improved
upon and updated as methods evolveand as new impacts from hotel
activities are identified.

In 2014, we continued our reviewof the Food & Beverage / HACCP
section with the overall objective ofstreamlining operational processes
whilst maintaining the highest levelsof food safety. The review will becompleted in 2015 and amendments
introduced in 2016.
Together with our auditors, PWT
Environmental Consultancy, we havealso initiated a project of migrating
the programme to an electronic
format, minimising the use of paper
for records and documentation.

Our Performance:
Audit Results
Over the past 10 years, audit
performance has remained
stable, within 2% of theGroup’s target of 90%. In
2014, 17 hotels (81% of alleligible properties) received
unannounced audits. As
new audit components are
introduced or the rigour of theircriteria increased, we allow
hotels to adapt prior to includingchanges into the overall auditscore. The environmental
guidelines were added in 2012,and over the past three years
the group’s score improved
dramatically from 42% to 77%.
Adding environmental guidelines
have increased operating
efficiencies and reduced utility
costs, with one example being
a 65% reduction in greenhousegas emissions from the useof refrigerants in hotel coolingequipment since being included
as part of the audit. In 2014,
the Group’s overall average
audit score achieved thetarget with a score of 90.1%,
meeting the group target
despite incorporating the lower
environmental audit scores.

25

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

FOOD & BEVERAGE
Health and safety related to Food andBeverage operations. Based on theaccredited international standardof Hazard Analysis and CriticalControl Point standards (HACCP)OCCUPATIONALHEALTH & SAFETY
Health and safety topics inthe workplace. Based on the
Occupational Safety and HealthAdministration (OSHA) standardsof the United States government

BUSINESS CONTINUITY
PLANNING & RISKMANAGEMENT
Overall Risk Management andbusiness continuity. Developed on
proven risk assessment andrisk management methodology

SECURITY
Security of guests, colleagues
and property. Based oninternational best practices

SPA, FITNESS & WELLNESS
Health and safety related toSpa, Fitness and Wellness operation.
Based on international best practices

ENVIRONMENTManagement of the property’s
environmental impact. Based oninternational best practices

In 2014, there were 2.32
incidents per 1005 colleagues
resulting in lost time, a 14%
improvement from 2013 andsignificantly below the UnitedStates Bureau Leisure andHospitality safety rate of 3.7
incidents per 100 colleagues.
The incident rate of our
European hotels was below theproximate US industry average
at 3.56 incidents per 100
colleagues, but decreased 18%
from the prior year.
The incident severity rate,a measure of lost days per
incident, decreased 8% in 2014
to 25.04 lost days per incident
per 100 colleagues. Europe andAsia demonstrated decreasing
trends, while the Americas
increased slightly. None of ourhotels received a significant
Health and Safety fine or noticeof violation.
Please see the Appendix for
more detailed results.

C H A MP IO NIN G C OM M UN I TY

HEALTH AND SAFETY
Health and safety topics related
to guests. Based on the
British and European standards

In keeping with Mandarin
Oriental’s commitment to provide
a safe work environment, allwork-related accidents andincidents are reported andthoroughly investigated to
identify the root cause and toinitiate corrective and preventive
measures. We track the numberof incidents and the incident
severity as measured by the
number of lost work hours.

AD VAN C I N G SU STAI N ABI L I T Y

FIRE SAFETY
Inspection, testing and maintenanceof all fire safety related installations.
Based on the internationallyrecognised National Fire Protection
Association guidelines

Our Performance:
Occupational
Health & Safety

D EL IVERIN G EXC EL L EN C E

Scope of Safe, Sound &Sustainable ProgrammeSustainability in Action

Mandarin Oriental,
Kuala Lumpur
Building awareness is amongst the biggest challenges
many Corporate Responsibility Committees face whenit comes to environmental and social issues. Mandarin
Oriental, Kuala Lumpur has developed galvanisingefforts to highlight the importance of advancing
sustainability and championing the community.
The hotel has maintained ISO 14001 certification

Hotel Corporate
Responsibility
Committee Spotlight
At Mandarin Oriental, our Guiding Principles underpin everything
we do, from the way we serve our guests and communities, tofor environmental management systems since 2003
and the processes developed by Mandarin Oriental,
Kuala Lumpur have frequently been used as bestpractices for other hotels in the Group. Implementing
the system throughout its operations has proven to
be a great success, which has helped the hotel garner
the highest environmental performance score (96.9%)
in the 2014 Safe, Sound & Sustainable Audit.

how we carry out our commitments to corporate responsibility.

Another successful approach to building awareness on

In order to tackle each property’s challenges of advancing

environmental and social issues has been to invite the local

sustainability, our committees are dedicated to work together ascommunity to participate in various activities at the hotel.

colleagues—an important guiding principle for Mandarin Oriental.

The hotel organised a charity run which helped raise money

In many cases advancing sustainability involves being innovative

and awareness on behalf of the Malaysian Nature Society,and striving to be the best in order to make real change and toa local natural heritage organisation. The property also co-be active members of our communities.

organised a charity event with jeweler Amee Phillips, raising
US$3,000 for a local orphanage. The hotel organises a

Each hotel committee is provided with the Group’s policy

Christmas party for at-risk youth and orphans to celebrate

and procedures for its ongoing operation. Committees mustthe holiday season, and invites the elderly to delight inbe cross-functional, headed by a Corporate Responsibility

a Mooncake Festival lunch held in the hotel’s ballroom.

Champion and comprised of at least 10 colleagues at each

To further expand its outreach, the hotel’s Corporate

property. Specific roles are assigned to colleagues based

Responsibility Committee has coordinated several

on particular areas of focus. Additionally, committees areprograms such as tree planting for World Environment

empowered to choose local initiatives to support as well as to

Day and volunteer efforts to repair a children’s home.

find creative ways to improve efficiency in their operations. Our
culture of enthusiasm has shown to be a key factor in attaining
positive and motivating results, and aid in the committees’
overarching goal to support the Group’s commitments.
Our committees continue to improve and innovate each year.
In 2014, we enhanced the connections between the Group
Corporate Responsibility Committee and the hotel Champions
by inviting them to present their annual highlights to colleagues.
Furthermore, we performed an engagement exercise with allChampions to obtain feedback, identify key issues, and address
challenges to implementing programs. In doing so, we are able
to share of best practices and further encourage our committees
to be the best and demonstrate leadership.

Mandarin Oriental, Prague
In an effort to raise funds in support of its initiatives
and contribute to the community, Mandarin Oriental,
Prague and its Corporate Responsibility Committee havedeveloped creative and cost effective ways to advancesustainability. The hotel has made its mission to reusematerials for a host of worthy causes – from supplying
discarded towels and carpeting to a local dog shelter
to donating used appliances to an orphanage. The
committee has also held various charitable events suchas a Christmas Party fundraiser, as well as leveraged
efforts of other related organisations by joining theCzech Republic’s Association of Social Responsibility.
Mandarin Oriental, Prague’s Corporate Responsibility
Committee has continued to elevate its performance
to advance sustainability. It has achieved oneof the Group’s highest waste diversion rates,
diverting 66% of its waste from landfill in 2014.

Mandarin Oriental, Miami
Mandarin Oriental, Miami has made great strides toimprove its environmental performance and support
the Group’s 2020 targets. For instance, the hotel has
successfully worked towards reducing energy consumption
by 17% since 2007. Under the leadership of the hotel’s
Director of Engineering, the Corporate Responsibility
Committee also piloted a water filtration system to replacebottled water, the results of which are shared with theGroup for consideration at Mandarin Oriental hotels.
Furthermore, Mandarin Oriental, Miami has been an
active supporter of community initiatives to assist atrisk youth, the homeless and the local environment,
all of which are important causes identified by thehotel’s Corporate Responsibility Committee. In 2014,
the committee participated in the Group’s Fantastic
Match program by organising a softball tournament toraise US$11,000 towards the purchase of a shuttle vanfor His House Children’s Home, a local social services
agency. The hotel’s committee also organises ongoing visits to Nicklaus Children’s Hospital, volunteer
opportunities at the Miami Rescue Mission, andhotel tours for at-risk youth. To help Miami’s growing
homeless population, the hotel created a shoe collection
bin, and coordinates three shoe drives each year.
The Spa at Mandarin Oriental, Miami has also worked
with the nearby Everglades National Park on an innovative
initiative whereby a tree is planted every time a guest
books a Thai Herbal Compress Ritual. The donated trees
are planted by The Spa team in Everglades National
Park to support local conservation and build resiliencein the region prone to sea level rise and hurricanes.

28

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Advancing
Sustainability“As an industry, it isimportant to be aware of ourenvironmental footprint. It iseasy to introduce energyefficiency mechanisms, and it
makes economic sense”.
—Edouard EttedguiGroup Chief Executive

30

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Advancing Sustainability
In the World Economic Forum’s 2015
Global Risk Perception survey, the failure
to address climate change and water
scarcity were amongst the world’s top
five risks in terms of impact6.
Current and future regulatory
requirements related to climate change,
as well as increased energy andwater rates, will lead to an increase ofoperating expenses. Changing climate
patterns can also cause an increased
occurrence of drought, natural disasters
and risk affecting our infrastructure, ourcolleagues in their livelihoods, and ourguests’ travel plans. As a responsible
company, Mandarin Oriental strives tohelp mitigate such risks by embedding
sustainability strategies into ourglobal business model. Investing in
efficient technology and equipment,
combined with integrating sustainability

practices into our business, affords
multiple benefits. This link can clearly bedemonstrated by our continuous efforts
to reduce energy consumption, which has
resulted in cost savings of US$30.8 million
from 2007 to 2014.
Over the same period, we also
experienced significant increases in theelectricity and water rates across ourportfolio. For electricity, Southeast Asia
is the worst affected region with rateincreases exceeding 40%. The UnitedStates is the worst affected region as
it relates to water, with rate increases
exceeding 35%. Without strategies
to reduce energy consumption, theseincreases would have significantly
impacted the profitability of several hotels.
People and process are vital to ouroverall success. Our colleagues’

Between 2007 and 2014, ourcontinuous efforts to reduce energy
consumption have resulted ina cost savings of US$30.8 million.

dedication and enthusiasm forour sustainability efforts makes
the difference; the environmental
achievements included in this report
would not be possible without theircommitment. We also believe thatwhat gets measured gets done. Goals
have been clearly set to ensure that
all of our colleagues are aware of ourprogress and can identify ways to help
us improve.
We established a 2020 vision withsignificant reduction goals based on a2007 baseline, and interim 2016 goals
to track our progress. Beginning in
2013, every hotel was also provided
with individual short-term goals forthe environmental aspects of theiroperation, including energy, emissions
and water. These short term goals arereviewed and adjusted annually.

31

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Energy Intensity
KPI

2016 Goals

2020 Vision

Reduction of 15% by 2016
over 2007 levels

Reduction of 20% by 2020
over 2007 levels

MJ / square metre

Current Status
to Baseline

D EL IVERIN G EXC EL L EN C E

Environmental Sustainability Goals

Reduction of 17.4%
ON -TRA C K

ON -TRAC K

2016 Goals

2020 Vision

Reduction of 17.5% by 2016
over 2007 levels

Reduction of 25% by 2020
over 2007 levels

Emission Intensity

kg CO2e /square metre

Current Status
to Baseline

Reduction of 18.3%
ON -TRAC K

ON -TRAC K

2016 Goals

2020 Vision

Reduction of 10% by 2016
over 2012 levels

Reduction of 20% by 2020
over 2012 levels

AD VAN C I N G SU STAI N ABI L I T Y

KPIWaste Intensity
KPI

Reduction of 0.9%
OFF-TRAC K

OFF-TRA C K

2016 Goals

2020 Vision

Reduction of 15% by 2016
over 2007 levels

Reduction of 20% by 2020
over 2007 levels

Water Intensity
KPI

Litre / Guest Night

Current Status toBaseline

Reduction of 17.9%
ON -TRAC K

ON -TRA C K

C H A MP IO NIN G C OM M UN I TY

kg of waste
sent to landfill /Guest Night

Current Status toBaseline

32

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Reducing Energy Consumption
Finding ways to reduce energy
consumption are essential to reducing
our environmental footprint. We haveestablished three main strategies todrive our performance in this area:
energy auditing; retro-commissioning
and the use of innovative technology.
As each Mandarin Oriental hotel isunique, we strive to adapt our strategies
to each hotel’s individual performance,
local conditions, technical structure andpotential renovation plans.

under the “Safe, Sound & Sustainable”
programme, with guidelines based on
ASHRAE’s “Procedures for Commercial
Energy Audits”. The audits are adapted
to the particular requirements of each
hotel and are at times targeted to
specific areas, such as chilled wateror hot water production. Since thestrategy was introduced six years ago,
88% of our hotels have completed
energy audits.

By optimising our existing equipment
and maintenance procedures, we
can enhance the efficiency resultsthat contribute to our environmental
goals. Part of our strategy includes
the provision of sub-metreing tocontinuously monitor performanceand make objective, fact-based
decisions. Retro-commissioning is
an important initiative, as operational
standards evolve over time and ourhotels frequently undergo renovations
that require re-evaluation of building
systems and processes. We have two
retro-commissioning programmes
currently underway, the results ofwhich will assist in planning additional
hotel projects.

Retro-Commissioning
Energy Auditing
As a Group, we introduced a systematic
approach to energy auditing in 2007.
This strategy was further enhanced in2012, when we included energy audits

We recently established retrocommissioning as an important strategy
for identifying areas of improvementin our buildings’ operations in order toenhance overall building performance.

Energy auditing, retro-commissioning and the use of innovativetechnology are the three main strategies established toreduce energy consumption and our environmental footprint.
ABS OL UT E E N E RG Y C ON S UM P T ION

Our Performance:
Absolute Energy
Consumption
Absolute energy consumption
for the Group totalled 1,355
TJ in 2014, an increase of
10.5%, associated with a 17%
increase in total floor area. By
implementing energy efficiency
measures, the Group avoided
124 TJ of energy consumption
in 20148. The total avoided
consumption 2007 to 2014 was
687 TJ, which translates to costsavings of US$30.8 million.

2007–2014 (TJ/year)
ABSOLUTE ENERGY CONSUMPTIONREDUCED ENERGY CONSUMPTION
1,500

124

96

1,200

1,084

21

75

1,057

1,077

1,151

137

113

120

1,190

1,211

1,228

2012

2013

1,355

900

600

300

0

2007

2008

2009

2010

2011

2014

Sustainability in Action
Energy Equipment Upgradesat Mandarin Oriental, Bangkok
Originally opened as The Oriental in 1876, the legendary Mandarin

building were also aging and ready for replacement. The Group

Oriental, Bangkok was the first hotel in Thailand, then Siam. With

explored several innovative technologies such as solar heating

339 elegant rooms, 35 luxurious suites, innovative restaurants andand heat pumps, or reducing capacity by outsourcing the hotel’sa world-class spa, Mandarin Oriental, Bangkok offers a luxurious

laundry operations. In the final analysis, solar heating required

five-star experience.

a much longer return on investment, and heat pumps proved
unfeasible with the hotel’s available space. The decision was madeHistoric hotels with older infrastructure like Mandarin Oriental,

to maintain a boiler system, installing new equipment that burns

Bangkok present us with excellent opportunities to increase

LPG (liquefied petroleum gas) instead of diesel oil, and whichenergy efficiency. We’ve initiated several efficiency projects at thefeatures heat recovery of condensate to increase efficiency.

property, with significant investments made to update heating andcooling equipment. This has been an important priority to improve

Additional Projects

our environmental performance, as the hotel’s electricity rates

In addition to upgrading the building equipment, a number of otherhave increased by 44% since 2007. As a result, the Group hasenergy efficiency projects are underway at the property, including

prioritised Mandarin Oriental, Bangkok’s energy reduction plans.

upgrading the demand-based guestroom control system andChiller Upgrades

installing LED lighting as part of the upcoming room renovation.

As part of the Group’s chiller optimisation programme, a

Efficiency Increases and Emission Reductions

comprehensive overhaul of the hotel’s chillers began in 2008

As a result of these efforts, over the period 2007–2014 the hotel’s

and was completed in 2014. All five of the hotel’s chillers wereenergy use per square metre has been reduced by 19.5% andreplaced with high efficiency models over this period, with a

GHG (greenhouse gas) emissions reduced by 18.0%, whilst

combined investment of US$1.8 million. The replacement included

environmental conditions have improved. The boiler replacement

several enhancements, such as using a significantly less potent

with conversion to LPG alone provided a year-over-year reduction

R-123 for a refrigerant, upgrading the chiller controls, convertingof 32% energy intensity, 37% in greenhouse gas emissions andpump systems to work on variable flow, as well as replacing

US$230,000 in cost savings.

and increasing the capacity of the cooling towers. Now that theequipment has been installed, ongoing optimisation work is in

Mandarin Oriental, Bangkok’s successful programme has helped

place to fine tune performance.

the Group make strides to achieve our energy and emissions

Steam Boiler Replacement
The boilers used to generate steam and hot water throughout the

reduction targets by 2020. Further efforts are underway for
Mandarin Oriental, Bangkok to improve its utility usage and move
us closer to our committed results.

34

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Technology and Innovation
While optimising the efficiency of oursystems and equipment, we will continue
to use innovative technology to reachour goals, balanced with fundamentallysound engineering practices. Chiller
optimisation continues to offer significant
improvements without impacting theguest experience. Collectively the Grouphas invested over US$14.2 million inchiller replacements and conversions in
the past six years with proven results to

Our Performance:
Energy Intensity
Energy intensity is a normalised
measure of energy consumption
per square metre of property. Thismeasure allows us to evaluate ourenergy consumption over time,since the footprint of our company
continues to change. In 2014,
the energy intensity for the Groupdecreased by 5.7% to 1,581 MJ/
m2/year. Thanks to energy efficiency
strategies, our intensity has beensteadily decreasing since 2007.

the bottom line7. In 2014, the chillers at
Mandarin Oriental, Sanya were replacedand chiller optimisation projects are wellunderway at Mandarin Oriental, Bangkok
and Mandarin Oriental, Macau. With
such success, the Group views chiller
optimisation as a key strategy for energy
and emissions reductions, which can befurther deployed across the company.
In other areas, we are continuing to
expand our demand-based guestroom

control systems. In 2014, 88% of
our hotel rooms were equipped with
automatic systems to reduce energy
consumption when guestrooms were
unrented or unoccupied, an increase
from 67% in the prior year. This increaseis mainly due to the hotels opening
in 2014 and our drive to include thistechnology as part of our standards
for new hotels. As other technologies
mature, we anticipate similar rollouts
throughout our hotels.

E N E RG Y IN T E N S IT Y
2007–2014 (MJ/m2/year)
2,000

1,913

1,863
1,733

1,699

1,710

1,707

1,678
1,581

1,500

1,000

500

0

2007

2008

2009

2010

2011

2012

2013

2014

35

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Reducing Emissions

Industry Collaboration

New Strategies
To further reduce our carbon
footprint, we aim to implement
new strategies where financially
feasible to assist in achieving
our goals, such as clean energy
technologies, or in the purchase ofrenewable energy certificates (RECs).
Purchasing RECs, where energy issourced either partially or fully fromrenewable energy sources, is one of
the most effective ways of reducing

Our Performance:
Absolute Emissions
In 2014, absolute emissions
generated by the Groupamounted to 161,645 metrictons of CO2 equivalent (including
reductions from RECs). From2007 to 2014, our total avoided
emissions totalled 92,501 metrictons of CO2 equivalent12 .

We are also gradually replacing or
upgrading diesel-operated boilers with
LPG or natural gas-fired boilers, which
can reduce emissions by nearly 80%.
As of 2014, only two hotels continue
to use diesel-powered boilers11. Since
2011, diesel fuel usage has decreased
from 10% of total energy consumption
to just 2% in 2014. In addition to
reduced emissions, the phasingout of diesel-operated boilers also
provides benefits in reduced energy
consumption.

ABS OL UT E G RE E N H OUS E G AS E M IS S ION S
2007–2014 (t CO2-Eq/year)
ABSOLUTE GREENHOUSE GAS EMISSIONSREDUCED GREENHOUSE GAS EMISSIONS
200

23

150

2
131

127

7
133

12

9
141

146

2010

2011

18
141

162
20
138

C H A MP IO NIN G C OM M UN I TY

From 2007 to 2014, our total
avoided emissions totalled
92,501 metric tons of CO2
equivalent. This is equivalent totaking 18,000 cars off the road13.

greenhouse gas emissions. Currently,
Mandarin Oriental, Washington
DC and Mandarin Oriental, Munich
are making use of RECs. In 2014,
the purchase of RECs reduced thegroup’s overall footprint by 3.0%,
and we foresee more hotels following
suit in the coming years.

AD VAN C I N G SU STAI N ABI L I T Y

Emissions reduction is a key focus
for the Group, and we’re proud tosupport the climate change initiative
established by the World Travel &Tourism Council (WTTC) to reduce
CO 2 emissions. Mandarin Oriental
also participates in the Hotel Carbon
Measurement Initiative (HCMI), led
by the WTTC and the International

Tourism Partnership, which launcheda standard methodology for the
hotel industry to calculate carbon
emissions. The HCMI’s common
approach to carbon measurement
provides greater clarity to guests
and event planners who aim tobetter understand the environmental
impact of a guest stay.

D EL IVERIN G EXC EL L EN C E

By implementing energy efficiency
measures at our hotels, we are
steadily reducing our greenhousegas emissions. In 2014, 76% of ouremissions were related to electricity
consumption, which underscores
the need for continual conservation
efforts 9. Emissions vary widely acrossour hotels as they are primarily
dependent upon the emission factorsof their regional utility providers.

100

50

0

2007

2008

2009

2012

2013

2014

36

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Fugitive Emissions
Fugitive emissions are emissions
that are unintentionally released
into the atmosphere. Fugitive
emissions typically occur from leaks
in refrigeration systems or whilehandling refrigerants. They includehydrofluorocarbons (HFCs) usedin refrigeration and air conditioning
equipment. In some properties
fugitive emissions can exceed 5%of greenhouse gas emissions for agiven year. We began to manage
these emissions in a more systematicway, focusing on the four properties
that have the greatest impact andconsidering refrigerant types in ourchiller optimisation programme.
While several different types of
HFCs are available for use in chiller
systems, the Global Warming

Potential (GWP) can vary widely
amongst them. Our preference isto use R-123 in chiller optimisation
given its superior energy
performance, which also has a GWP
of approximately 95% lower thanother traditional refrigerants such as
R-22. Over the past five years, wehave used R-123 centrifugal chillers
exclusively in our chiller replacement
at all owned hotels.
To increase the monitoring ofrefrigerant leakage we incorporated
the management of refrigerants
into the Safe, Sound & Sustainable
programme to provide a consistentglobal approach, and are making good
progress. Through these collective
efforts, fugitive emissions are down
65% and in 2014 represented only
2.2% of total emissions.

Between 2007 and 2014, we reduced our emission
intensity by a total of 18.3% due to our efficiency strategies.
GR E EN H OUSE GAS EMISSION INTENSIT Y

Our Performance:
Emission Intensity

2007–2014 (kg CO2-Eq/m2/year)
250

231

224
214

200

208

210
198
188

189

2013

2014

150

100

50

0

2007

2008

2009

2010

2011

2012

Emissions intensity is anormalised measure ofgreenhouse gas emissions per
square metre of property. In 2014,
the Group’s emissions intensity
increased by 0.3% over the prioryear to 189 kg CO2 per square
metre. Our emissions intensity
ratio has gradually improved
as a result of our energy andemissions reduction strategies.
Between 2007 and 2014, wereduced our emission intensity
by a total of 18.3%

37

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Reducing Waste

Despite these challenges, we’re making

We know that enhancements are
required to our waste measurements
in order to account for the high volumeof heavy waste, such as wet waste
and glass generated at our food andbeverage operations. It has been
important to “think global—act local”
in order to adapt great concepts topractical processes. Recycling has
provided unexpected revenues in many
locations, and this has provided fundingfor other corporate responsibility

initiatives at our hotels. Colleague
engagement has proven tremendously
rewarding, as our hotel teams haveidentified their own waste reduction
opportunities well beyond expectations.
While our waste reduction programme
is in early stages, we are ready totake on the challenge of improving
our processes. Waste management
is tied to operations, and we
recognise our colleagues’ ability tomake positive strides to improving
our waste figures. At Mandarin
Oriental, Tokyo, a Green Café
event is held annually by the hotel’sCorporate Responsibility committee
to build awareness of environmental
issues. Information is presented forcolleagues to learn about the hotel’s
initiatives and the positive impact
colleagues can make. Waste figures,
including soap recycling initiatives
and impact information such as theaverage amount of paper waste froma guestroom, are presented.

Our Performance:
Absolute Waste
GenerationC H A MP IO NIN G C OM M UN I TY

The Group generated 12,599
metric tons of waste in 2014,of which 52% was disposed ofin landfills, 30% was recycled
or composted, and 18% sent
to incinerators16. The amount ofwaste recycled or composted
increased from 24% in 2013 to
30% in 2014.

AD VAN C I N G SU STAI N ABI L I T Y

In 2012, we implemented new Waste
Management Guidelines as partof the Safe, Sound & Sustainable
programme to develop a complete andconsistent measurement process andstrengthen our efforts. We’ve learned
some important lessons along theway. Accurately measuring waste at
hotels that are part of larger mixed-use
developments has been challenging.
Accurately measuring waste indeveloping countries, where the waste
disposal network is under developed,
has also been very labour intensive forour operations.

progress. Through 2014, we were able
to collect waste tonnage for 80% of
the Group’s hotels, up from 62% in
2012, increasing our ability to monitor,
analyse, and make decisions regarding
waste minimisation and diversion.
Internal waste audits have proven to
be useful exercises in understanding“what” and “where” waste is generated
within a hotel. Since incorporation
into our auditing process, 73% of
hotels have completed internal waste
stream audits.

D EL IVERIN G EXC EL L EN C E

The staggering amount of waste
generated by society is rapidly
becoming a global issue. At Mandarin
Oriental, we assume responsibility
for reducing the amount of waste
we generate and strive to identify
resourceful ways of minimising ourenvironmental impacts.

38

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Hotel Initiatives
Because landfilling is not permitted
by law in Germany, Mandarin Oriental,
Munich has implemented a 100%
reuse and recycle programme for all
waste generated at the hotel. This
programme considers end-of-life
disposal at the time of purchase inorder to ensure that, once waste is
generated, a suitable alternative tolandfilling is available.

WAS T E BY D IS P OS AL M E T H OD
2014

Diverted

Incinerat

Landfilled

Diverted
30%

At Mandarin Oriental, Geneva,
a thorough update of its waste
management processes has takenplace over the past three years. Foodwaste, previously sent to incineration,
is now separated and composted.
Recycling has been increased byfacilitating waste separation and themain waste compactor has increased
in size to reduce collection frequency.
From 2012 to 2014, the diversion rate
has increased from 11% to 46% andwaste to landfill reduced from 5.33 kg/
guest night to 2.82 kg/guest night.
Waste processing costs increased
initially, but are now below 2012 levels.

Landﬁlled
52%
Incinerated
18%

WA STE INTENSITY A ND DIVER SION R ATE(kg/guest night and percentage)

Our Performance:
Waste Intensity
In 2014, 80% of our hotels
collected comprehensive waste
data, an improvement of 18%(62% in 2012). The data collection
process is audited annually under
the Safe, Sound & Sustainable
programme to ensure compliance.
Waste data collection began
in 2012, and we refer to 3.59
kg waste sent to landfill/guest
night as our 2012 baseline year
measurement. In 2014, the Groupassessed 3.56 kg waste sent tolandfill/guest night, a marginal
decrease from 2012 but a slightincrease of over 2013 figures.
We attribute this increase to theprogramme’s enhanced datacollection procedures. We also
anticipate additional challenges
for hotels not yet reporting on
waste data.

WASTE INTENSITY
DIVERSION RATE
4.0

1,913

3.59

3.5

3.46

1,710

3.56
30%

3.0

21%

2.5

2.0

17%

1.5

1.0

0.5

0.0

2012

2013

2014

Sustainability in Action
Waste Management Challenges and Opportunities
Environmental Sustainability Goals in 2012, we set an ambitious

Waste Separation and Measurementin Mixed-use Facilities

target: reduce waste to landfill by 20% in the year 2020. After

Waste management in a destination often proves viable with thethree years of tackling waste initiatives, we have identified somescale of waste materials that can be diverted, hauled, and sold or

systemic challenges to overcome, which include the management

repurposed. As such, recycling contracts are more viable in largeof waste in destinations with less municipal waste infrastructure,facilities that generate significant amounts of waste. However, inand diverting waste in mixed-use facilities.

the case of hotels this is often found in mixed-use developments

When we incorporated waste reduction and diversion into our

Destinations with Limited Waste Infrastructure
Reducing waste to landfill depends of two factors: reducingthat house several different entities. However, this structure canprove challenging to obtain waste figures specific to a hotel
within a larger mixed-use facility.

waste generated, and increasing the amount of waste diverted
from landfill. In locations where recycling and composting

Mandarin Oriental, Las Vegas is located within the CityCenterare inadequate, there can be a decreased perception of thecomplex which has centralised waste hauling across the entire

importance of waste minimisation. This is especially true whenfacility. Waste data had been problematic when the Group started

waste diversion cannot be properly measured as colleagues

with its 2012 baseline. Diversion rates were proximate to thecannot monitor the results of their efforts. Two of our hotels,

whole facility and the efforts of the hotel were not accurately

Mandarin Oriental, Bangkok and Mandarin Oriental, Las Vegas,

captured. To ensure that the hotel’s waste figures could be

are addressing these challenges.

properly isolated and measured as part of the whole, the hotel
worked with MGM Resorts to set up waste separation areas, andAt Mandarin Oriental, Bangkok, municipal recycling andthe entities worked to obtain more accurate figures from waste

composting has been an issue for some of the waste streams.

haulers. In 2014 the hotel was able to receive its first set of waste

The hotel’s Corporate Responsibility Committee organised adata specific to Mandarin Oriental, Las Vegas. Now that wastecomprehensive programme in 2014 to help improve performancecan be properly measured, the results of reduction and diversion

and many departments contributed to the effort:

efforts can be demonstrated.

• Food & Beverage reduced waste tonnage by replacing glass

The success of Mandarin Oriental, Las Vegas may be replicated inwater bottles with plastic bottles that were accepted by asome hotels but challenging in others. In some hotels, recycling

recycling provider. They also installed a pilot composting bin

may be available within the destination and separable by thefor kitchen and flower waste, converting organic material that ishauler or other partner recipients, but the physical space needed

then sold for a profit;

to separate and store waste stream may be limited. This is• IT standardised all printer settings for optimal use and reduced

especially true in older hotels that were designed years before

paper consumption;

recycling became a common practice. Some of our hotels, such

• All departments worked with their suppliers to reduce

as The Landmark Mandarin Oriental, Hong Kong, where space ispackaging;constrained, have sought additional solutions. The hotel started• E ngineering found a donation partner for scrap metal waste—

weighing waste manually prior to sending it to the building’s

the Princess Mother’s Prosthesis Foundation. They also

central collection area, which will result in better figures. For

colour-coded waste bins for improving separation for recycling

other waste streams where space is limited, options such as foodstreams;

waste digesters are being studied, as well as a focus on waste• The hotel also conducted a waste stream audit to better

minimisation practice in operations.

understand waste composition and identify further
opportunities.

We are proud to present the efforts made by our colleagues
in addressing waste challenges. This year’s success stories

Thus far, the results have been promising and hotel colleagues

will bring better data and help us progress toward the Group’s

are motivated to monitor their waste data and improve

waste reduction goals. The efforts also demonstrate that

performance. With 4% of the hotel’s landfill waste generated

despite lack of developed waste diversion infrastructure, every

from the kitchen alone, we look forward to seeing the positive

hotel and its colleagues can make great strides to reduce theiroutcome of these efforts.

footprint.

40

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Reducing Water Consumption
As we are a luxury hospitality
company, water is essential to theservices we provide, whether inguestroom baths, spas and pools, orin our back-of-house operations. As a
responsible company, we understandthe importance of clean, accessible
water to human health and to theeconomic viability of the communities
where we operate.
As mentioned earlier, The World
Economic Forum identified watersupply crises amongst the mostsignificant global risks in 201517. To

fully understand our current and future
exposure, Mandarin Oriental conducts
an annual review of the water supply
sources, leveraging WBCSD Global
Water Tool, WRI Aqueduct as well as
third-party subject matter experts.
This information is used to focus ourefforts on specific hotels, either inoperation or under development. By
2025, we estimate that one third of ourhotels will be located in water stressed
areas, impacted either by supply limits,
quality concerns or other factors. The
increased demand will also, without
doubt, drive costs of water higher.

Municipal water supplies provide
water for all Mandarin Oriental hotels
with the exception of one property,
which relies partially on surface water.
Municipal supply accounts for 97.2%
and surface water 2.8% of our total
water supply.

ABS OL UT E WAT E R C ON S UM P T ION

Our Performance:
Absolute Water
Consumption
In 2014, the Group’s
absolute water consumption
including irrigation, cooling
towers, swimming pools andguestrooms, was 3,042,952
cubic metres18. The Group
increased absolute water
consumption by 26% between
2007 and 2014, whilst the
number of guest nights includedin the portfolio increased by
33% over the same period.
Implementing water efficiency
projects resulted in avoiding theuse of 209,536 cubic metres ofwater at our properties in 2014.

As a Group, we will continue our efforts
to reduce water consumption in nonguest areas, and we believe strongly
that colleague awareness and training
has the most significant impact.

2007–2014 (1,000 m3/year)
ABSOLUTE WATER CONSUMPTIONREDUCED WATER CONSUMPTION
3,500

89
91
3,000

322
249

2,500

2,412

181

3,136

133
2,935

2,999

2011

2012

210
3,043

2,622

2,425

2,184

2,000

1,500

1,000

500

0

2007

2008

2009

2010

2013

2014

41

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

D EL IVERIN G EXC EL L EN C E

WAT E R IN T E N S IT Y
2007–2014 (liters/guest night)
1,000

978

944

926

912

917

870

847

800

804

C H A MP IO NIN G C OM M UN I TY

To measure our water
performance over time andaccount for company growth,
we utilise water consumption
per guest night as our key
performance indicator. Though
not all water is consumed directlyby the guest, water consumption
is indirectly tied to guest
nights through back-of-house
operations. In 2014, the Group’s
average water use reduction was
17.9% compared to 2007 levels,
a 5.1% Improvement from 2013
and for the second year in arow our lowest consumption per
guest night ever.

AD VAN C I N G SU STAI N ABI L I T Y

Our Performance:
Water Intensity

600

400

200

0

2007

2008

2009

2010

2011

2012

2013

2014

42

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Championing
Community
As a leader in luxury hospitality
steeped in the values of the
Orient, Mandarin Oriental
Hotel Group understands theimportance of culture andcommunity to our brand.

44

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4Championing Community
Acting with responsibility involves not just our business or the impact we have on the environment. It means making a
difference in the communities in which we operate. We’re proud to participate in causes that support our communities,
ranging from cultural heritage preservation to education, hunger eradication and environmental conservation.

Cultural Heritage
Mandarin Oriental’s widely recognised
11-blade fan logo is a profoundly
meaningful symbol of the Group’s
oriental culture. In addition to thetrademark logo for the luxury hotel
group, all Mandarin Oriental hotels havetheir own hallmark fan to represent theunique heritage of their property. Each
hotel’s fan is sensitively linked to theplace in which it resides, and is a visual
representation of the cultural soul ofeach location.
Mandarin Oriental, Taipei’s signature
fan is a genuine antique, handmade
circa 1800. A European-style antiquity

showcasing hand painted butterflies
amidst blossoming flowers, thefan represents the hotel’s classic
continental design and unrivalled
location along Taipei’s leafy green
avenue.

boulevard and featuring exquisitely
landscaped gardens within, Mandarin
Oriental, Taipei’s peaceful and serene
setting within a bustling metropolis
are evocative of the natural beauty
depicted in its signature fan.

The fan’s delicate paper leaf has beenexquisitely hand painted in a tapestry ofautumnal hues set against a pale skyblue backdrop. The fan’s antique ivory
spokes are an exceptional exampleof the merging of fashion with thedecorative arts, intricately carved andpierced with noble and precise patterns
to create a fine lace effect. Bordered bya vast canopy of trees on Taipei’s main

Mandarin Oriental, Bodrum’s signature
fan was created by acclaimed Italiandesigner Antonio Citterio, responsible
for the resort’s interiors. Its design is
inspired by the warm colour of themandarin fruit and the hues of thesetting sun while the rope tassel andmarine-style knot at the base of thedesign reflect the coastal ambiance ofthe resort.

The hand painted fan of Mandarin
Oriental, Taipei (left) and the fanof Mandarin Oriental, Bodrum(right) designed by Italian designer
Antonio Citterio, who also
designed the property’s interiors.

Sustainability in Action

The Mandarin Oriental Fellowship
for Cultural Preservation
with the Asian Cultural Council

Li Shasha performs at
the Asian Cultural Council’s
50th Anniversary Gala at
Mandarin Oriental, New York.

As a company that greatly values cultural traditions and thethe director HuaHua at the Eugene O’Neill Theater Center, and later

arts, Mandarin Oriental is delighted to be a partner of the Asianparticipated in workshops in Philadelphia, which resulted in the early

Cultural Council (ACC), a non-profit organisation dedicated toformations of a new work “Dream of Land”.

transformative cultural exchange by awarding grants for creative
work and study in the United States and Asia. In 2005, Mandarin“I was truly fortunate to have embarked on my grant trip during

Oriental established a dedicated fellowship with the ACC for thethe 50th anniversary year of the Asian Cultural Council”, Li says.

preservation of indigenous arts, cultures and traditions of Asia.

“I was invited to perform at the ACC 50th anniversary gala at
Mandarin Oriental, New York, and it was a true honour for me. This

Li Shasha, the 2014 Mandarin Oriental Fellowship grantee, is an

performance sparked my thoughts on culture: Where am I from?

award-winning puppet artist who holds the title Key Performer at theWhat is distinctive about where I come from? When I returned

Shanghai Puppet Theater. Li received her B.A. in puppet performanceto Shanghai, I went up to the mountains to practice my writing,from the Shanghai Theatre Academy in 2011 and specialises inlooking for simplicity in Han steles, and rich Chinese philosophy

traditional rod puppets, a style of puppetry that requires a strong

in ink calligraphy. I started to explore traces of my culture thatbackground in dance and Chinese opera movement. During her

was once wiped away. When I first received the Mandarin Oriental

Mandarin Oriental ACC Fellowship, Li met with puppeteers in New

Fellowship from the ACC, I was surprised and, of course, proud.

York, Vermont, San Francisco, and Atlanta. She was introduced to

Now I know that it’s in fact a touching thing, to join this family”.

46

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Our Philanthropic Celebrity Fans
Over the years, Mandarin Oriental’s international advertising campaign “He’s a Fan / She’s a Fan”, has gathered‘fans’ from around the world. The campaign is celebrated for its style and simplicity by elegantly connecting our wellrecognised symbol—the fan—with international celebrities who regularly stay at the Group’s hotels. Importantly, all of
our fans are thanked for their participation in our campaign with a donation from Mandarin Oriental to the charity of
their choice. Since the campaign launch in 2000, Mandarin Oriental has donated over US$500,000 to various local andinternational charities that are supported by our philanthropic fans.

My favorite charity is

St. Jude’sChildren’s Hospitalin Memphis, Tennessee.
Cancer in children is their
specialty and no child isturned away for any reason;
they are accepted and treated.
—Morgan Freeman

The Royal
Academy of Danceteaches a world-class,classical ballet syllabus
and also creates andinspires a passion for dance,
which is very special to me.
—Darcy Bussell

I’ve been working with

UNICEF

since 2004. I’ve always wanted
to work with children and towork with them in a very global
way. UNICEF has that reach.
—Lucy Liu

The aim of the

Kevin Spacey
Foundation

is to “send the elevator
back down,” and create
opportunities foryoung emerging artists.
—Kevin Spacey

Mandarin Oriental has donated over US$500,000
to various local and international charities
that are supported by our philanthropic fans.

48

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

D EL IVERIN G EXC EL L EN C E

Sustainability in Action
The Fantastic Match
Mandarin Oriental colleagues are making a positive difference in their communities by helping the causes that inspire them.
Our U.S. hotel colleagues have a special opportunity to extend their charitable efforts through a matching grant program,“The Fantastic Match.” Launched in 2010, the program matches the funds raised by colleagues through their hotel’s charitable
activities up to US$10,000 per year. Highlights from “The Fantastic Match” initiative in 2014 include:

AD VAN C I N G SU STAI N ABI L I T Y

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, Washington DC

The hotel hosted their second annual
Hotel Charity Softball Tournament
and with the help of a matching
grant, donated US$11,000 to His
House Children’s Home, a non-profit
that provides safe, caring homes toneglected children in South Florida.

Through various fund-raising
activities in 2014, and a matching
grant, Mandarin Oriental, New York
contributed US$20,000 to City Harvest,
a food rescue organisation dedicated tohelping the more than 1.4 million New
Yorkers facing hunger.

Colleagues held their fourth annual
5K run/walkathon in September 2014
and with the Group’s matching grant,
donated over US$25,000 to Unity
Health Care, which helps provide healthcare services to homeless individuals
and families in the District of Columbia.

C H AM P ION IN G C OMM U N ITY

49

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Mandarin Oriental hotels contribute to a number of community outreach and educational programmes within our local
communities, whether by volunteering, organising, philanthropy or making in-kind donations. Our programmes demonstrate
how we work side-by-side to benefit the communities in which we operate.

Mandarin Oriental, Bangkok’s FANtastic Fundraiser Charity Run

Mandarin Oriental, Singapore
Donates to Food from the HeartIn April 2014, Mandarin Oriental, Paris launched atree donation initiative called ‘Act for the Planet’ aspart of its mission to develop unique and interesting
ways to build a more sustainable future. The
hotel joined forces with Pur Projet, a Paris-basedorganisation that aims to counter climate change
through reforestation and forest conservation
projects carried out by local communities. Through‘Act for the Planet’, hotel guests who book a stayon Mandarin Oriental’s website can make a donationof eight euros for a tree to be planted in a nearby
agroforestry farm. Participating guests also receive
an official certificate from Pur Projet with the exact
location of their donated tree.

C H A MP IO NIN G C OM M UN I TY

Mandarin Oriental, Paris ‘Acts for the Planet’
with its Tree Donation Programme

Mandarin Oriental, Singapore has
made significant strides to help
combat hunger in neighbourhoods
nationwide. Each day, the hotel
donates unsold bread and pastries
from its restaurants to Food fromthe Heart, a non-profit distribution
programme servicing the needsof children, senior citizens andlow-income families. This initiative
not only reduces the hotel’s foodwaste, but helps to alleviate hunger
for less privileged communitiesin Singapore. Hotel colleagues
extended their support for thecause and gathered at the Foodfrom the Heart warehouse to assist
with the organisation’s food pantry
which provides assistance toover a thousand families in need.
Colleagues helped pack bags
containing basic necessities as well
as non-perishable food items suchas rice, cooking oil, noodles, biscuits,
beverages and canned goods.

AD VAN C I N G SU STAI N ABI L I T Y

Following the success of its inaugural event in 2013, Mandarin Oriental, Bangkok
hosted its second annual FANtastic Fundraiser Charity Run, which drew morethan 700 colleagues, their families and for the first time, hotel guests to the 10K
run/walk. On 7 December 2014, participants came together to raise funds andawareness for two worthy causes—The Bann Nokkamin Foundation, a nonprofit organisation supporting under-privileged children, and The Intellectual
Disability Foundation of Thailand under the Royal Patronage of Her Majesty The
Queen. Led by General Manager Amanda Hyndman, the event exceeded its
goal by raising US$30,000 through a series of colleague fundraising initiatives in
the lead up to the run. The Governor of Bangkok, M.R. Sukhumbhand Paribatra,presided over the event and served as the race official at the starting line. Incelebration of their efforts, participants were treated to a barbecue and carnival
games courtesy of Mandarin Oriental, Bangkok colleagues.

D EL IVERIN G EXC EL L EN C E

Community Programmes

50

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Community Programmes
Here are some examples of charitable activities undertaken
by our hotels to support their local communities.

MANDARIN ORIENTAL,LAS VEGAS
The Public Education Foundationin Las Vegas is dedicated to
improving student performance andadvancing quality public educationin Nevada. Mandarin Oriental, Las
Vegas established a programme forcolleagues, family members andfriends to donate through payroll
deductions, gifts and volunteer time.
Thanks to this effort, the charity
received over US$16,000 in 2014.

MANDARIN ORIENTAL
HYDE PARK, LONDONThe annual coat drive Wrap up
London took place in early November
and Mandarin Oriental Hyde Park
colleagues were delighted to ‘give acoat and warm a heart’. The charity
collects, recycles and redistributes
thousands of coats for men, womenand children, providing essential
winter wear for people in need.

MANDARIN ORIENTAL,ATLANTA
Colleagues at Mandarin Oriental,
Atlanta came together in April 2014 for
Sweep the Hooch, an annual springcleanup of the local Chattahoochee
River basin. Volunteers help to pull
more than 7 tons of litter from the
Chattahoochee, helping to protect
the river for the people, fish
and wildlife that depend upon it.

51

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

Colleagues at Mandarin Oriental,
Macau were delighted to be amongst
the supporters of Macau Green Week
2014, organised by The Civic andMunicipal Affairs Bureau (IACM) of theMacau government. The 33rd Annual
Green Week included tree planting,hiking and educational seminars. The
IACM chose Rua de Pequim in Taipa
as this year’s location for their treeplanting event, where our colleagues
helped to plant more than 50 trees.

AD VAN C I N G SU STAI N ABI L I T Y

The Geneva Volunteer Centre,
founded in 1988, is a non-profit
organisation whose purpose isto promote volunteerism and aid
disadvantaged individuals andinstitutions. The Centre also collects
apparel for distribution to thosein need. Colleagues at the hotel
contributed in 2014 by arranging aclothing drive of gently used items formen, women and children. The hotelalso made clothing donations to its
local chapter of the Red Cross.

MANDARIN ORIENTAL,
MACAU

D EL IVERIN G EXC EL L EN C E

MANDARIN ORIENTAL,GENEVA

MANDARIN ORIENTAL,
HONG KONG

The Bright Connection Centre in
Sanya is a haven for children withdisabilities and the long-standing
charity partner of our resort. In 2014,
colleagues raised over US$22,000
through various events, including theorganisation’s 10th anniversary galadinner. Colleagues also helped set-up
an art gallery and Taobao online shopfeaturing children’s artwork.

Oxfam International works with
communities in over 90 countries
to alleviate poverty. Their Hong
Kong partnership produces oneof the island’s largest fundraising
events: the Oxfam Trailwalker.
Colleagues at Mandarin Oriental,
Hong Kong formed a team andsuccessfully completed the dynamic
100-kilometre coastal trail challenge
in 29 hours and 31 minutes. The
hotel collected over US$17,000, asum that included proceeds fromThe Mandarin Cake Shop’s special
fundraising “Cake for a Cause”.

C H A MP IO NIN G C OM M UN I TY

MANDARIN ORIENTAL,
SANYA

52

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Future Directions
As we look ahead, we will remain focused on the continuous
improvement of our environmental performance. In so doing,
we will provide our hotels with the necessary resources andleadership to achieve our ambitious 2020 goals. While striving
for results, we recognise that each Mandarin Oriental hotel isunique, and our strategies must be adapted to each hotel’s
individual performance and local conditions.
To help accelerate our progress, we aim to enhance the cultureof sustainability at Mandarin Oriental through an empoweredand engaged workforce. We will continue to promote the workof our hotel Corporate Responsibility Committees to share bestpractices. We also plan to enhance our sustainability training
programmes for all colleagues.
As we prepare for the G4 reporting next year, we are evaluating
topics that are material to our business, in an effort to increase
the relevancy and transparency of our reporting and better
inform our stakeholders on sustainability issues in the future.
We encourage you to share your views on our sustainability
progress. If you have comments or questions about thisreport, please contact our corporate responsibility team atsustainability@mohg.com.

53

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

AWARDSC E R T I F I C AT I O N S

THE EXCELSIOR, HONG KONG
Social Capital Builders 2014
Sustainable Supportive Network

MANDARIN ORIENTAL, KUALA LUMPUR
ISO 14001
Certified since December 2003

MANDARIN ORIENTAL, KUALA LUMPUR
Green Award 2013-2015
Malaysian Ministry of Tourism

ISO 22000
Certified since December 2008

ASEAN Tourism Award 2014-2016
MANDARIN ORIENTAL, MACAU
Silver Award
Macau Green Hotel Award 2013
MANDARIN ORIENTAL, TOKYO
Low Emission Buildings Top 30 in TokyoAs part of the Mitsui Nihonbashi Tower, awardedin April 2011 under the Tokyo Metropolitan
Government’s urban Cap-and-Trade Program andTokyo Green Building Program.
MANDARIN ORIENTAL, MIAMI
3 Palm Award
Florida Green Lodging Program
Bronze Level Award
TripAdvisor GreenLeaders
MANDARIN ORIENTAL, MUNICH
Okoprofit Award 2014
Ecological Project for
Integrated Technology in Germany

OHSAS 18001
Certified 2003–2015
MANDARIN ORIENTAL, LAS VEGASGOLD LEED Certified
LEED Gold Certification after third-party verificationof the buildings’ green design and performance inmultiple categories.
MANDARIN ORIENTAL, PARISHQE Certified
First hotel to get the operational HQE certification.
The certification builds on 14 criteria of eco-design,
eco-management, comfort and health.
THE EXCELSIOR, HONG KONG
ISO 22000
Certified since December 2012
HACCP Certificate
MANDARIN ORIENTAL, SINGAPORE
Friend of Water Certification 2014

A P P EN DI C ES

Sustainability Awards and Certifications

54

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Total Workforce
TOTAL WORKFORCE

MALE

%

FEMALE

%

TOTAL

%

By Region

6,417

54%

5,382

46%

11,799

Asia

3,847

56%

3,255

44%

7,336

61%

Europe

926

55%

789

45%

1,743

14%

The Americas

1,537

53%

1,372

48%

2,873

24%

Corporate

107

35%

93

65%

143

1%

Full-time

5,955

55%

4,817

45%

10,77291%

Part-time

151

35%

284

65%

435

4%

Casual

311

53%

281

47%

592

5%

Line Staff

4,709

54%

3,996

46%

8,705

74%

Management

1,368

54%

1,161

46%

2,529

21%

Executive

179

63%

102

37%

274

2%

Other (Casual/Trainee)

161

58%

115

42%

276

2%

Under 30

2,141

52%

1,967

48%

4,108

35%

30 to 50

3,380

56%

2,691

44%

6,071

51%

Over 50

896

55%

724

45%

1,620

14%

Asia

3,975

55%

3,312

45%

7,287

62%

Europe

917

55%

747

45%

1,664

14%

North America

981

52%

915

48%

1,896

16%

South America

279

58%

205

42%

484

4%

Africa

102

59%

71

41%

173

1%

Oceania

18

72%

7

28%

25

1%

Other

146

54%

125

46%

271

2%

EXECUTIVE TEAM & BOARD OF DIRECTORS 1

MALE

%

FEMALE

%

TOTAL

%

By Employment Contract

By Colleague Category

By Age Group

By Nationality

By Age Group
Under 30

-

-

-

-

-

-

30 to 50

5

100%

0

0%

5

35.7%

Over 50

7

78%

2

22%

9

64.3%

Europe

9

90%

1

10%

10

71.4%

North America

2

67%

1

33%

3

21.4%

Oceania

1

100%

0

0%

1

7.1%

By Nationality

55

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

NEW COLLEAGUES

MALE

%

FEMALE%TOTAL% OF TOTAL

Colleagues by Age Group

1,914

54%

1,639

46%

3,553

30.1%

Under 30

1,166

52%

1,096

48%

2,262

63.7%

30 to 50

684

58%

486

42%

1,170

32.9%

64

53%

57

47%

121

3.4%

Colleagues by Region

Over 50

1,914

54%

1,639

46%

3,553

30.1%

Asia

1,169

56%

932

44%

2,101

59.1%

Europe

374

52%

348

48%

722

20.3%

The Americas

360

51%

340

49%

700

19.7%

Corporate

11

37%

19

63%

30

0.8%
% OF TOTALTOTAL TURNOVER

MALE

%

FEMALE%

TOTAL

Separations by Age Group

2,015

54%

1,776

47%

3,791

Under 30

1,049

52%

981

48%

2,030

53.5%

30 to 50

838

55%

687

45%

1,525

40.2%

Over 50

128

54%

108

46%

236

6.2%

Separations by Region

2,015

53%

1,776

47%

3,791

Asia

1,178

54%

990

46%

2,168

57.2%

Europe

452

53%

396

47%

848

22.4%

The Americas

377

50%

377

50%

754

19.9%

Corporate

8

38%

13

62%

21

Turnover Rate by Age Group

31.4%

33%

0.6%
32.1%

Under 30

49%

49.9%

49.4%

30 to 50

24.8%

25.5%

25.1%

Over 50

14.3%

14.9%

14.6%

30.6%

32.6%

31.5%

Turnover Rate by Region
Asia
Europe

48.8%

51.8%

50.1%

The Americas

24.5%

27.3%

25.8%

Corporate

7.5%

6.6%

6.9%

A P P EN DI C ES

Turnover56

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Health & Safety Incidents: Audit Results
PERFORMANCE INDICATORUNITREGION

2010

2011

2012

2013

2014 1

89.3

90.3

89.8

88.3

90.1

ALL

2.73

2.90

2.46

2.70

2.32

Safe Sound & Sustainable
Audit Results% Compliance

Lost Time Incident Rate

Lost time Incidents /100 employees

Lost Time Incident Severity Rate

Severity of incidents /100 employees

Asia

2.86

3.04

2.40

2.83

2.30

Europe

2.27

3.91

4.58

4.20

3.56

The Americas

2.56

1.90

1.16

1.82

1.53

ALL

19.49

24.27

24.59

27.30

25.04

Asia

17.62

23.54

23.05

27.50

22.22

Europe

29.18

36.37

42.49

40.42

31.98

The Americas

20.40

20.57

16.95

19.11

29.1619

57

Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

PERFORMANCE
INDICATOR

UNIT

2012

2013

2014

GJ

1,211,179

1,227,566

1,354,980

MMBTU

1,147,977

1,163,508

1,284,273

GJ

1,331,201

1,364,773

1,479,063

MMBTU

1,261,735

1,293,556

1,401,881

MJ / mEnergyAbsolute Energy Consumption(Actual)Absolute Energy Consumption(Baseline)
Energy Intensity(Actual)

1,707

1,678

1,581

MMBTU / ft2

0.150

0.148

0.139

tons (metric) of CO2-e

140,570

137,559

161,645

2

EmissionsAbsolute Emissions(Actual)Absolute Emissions(Baseline)
Emission Intensity(Actual)tons (US) of CO 2-e

154,950

151,631

178,181tons (metric) of CO 2-e

158,979

157,833

184,481tons (US) of CO 2-e

175,242

173,979

203,354

2

198

188

189

2

40.6

38.5

38.6

2,998,857

3,136,483

3,042,952

792

829

804

kg CO2-e / m
lb CO2-e / ft

Water
Absolute Water Consumption(Actual)Absolute Water Consumption(Baseline)

Water Intensity

m3
million gallons (US)3,089,579

3,225,003

3,252,488

million gallons (US)

816

852

859

litres / guest night

917

847

804

gallon (US) / guest night

242

224

212

kilograms

10,304

9,635

12,599pounds

22,717

21,242

27,777

kilograms

1,364

2,286

3,742

pounds

3,006

5,039

8,250

kilograms / guest night

3.59

3.46

3.56

pounds / guest night

7.91

7.63

7.84

percent

17

24

30

m2

709,465

731,431857,215ft2

7,636,608

7,873,047

9,226,979

m

3

Waste
Total Waste

Diverted Waste

Waste Landfill Intensity
Diversion Rate
Operational Data
Total Air Conditioned Area

Mandarin Oriental, Bangkok and Mandarin Oriental, Sanya have been excluded from water intensity measures. In general, properties have been
excluded if the data is distorted by major changes or abnormally high values (where, for example, irrigation is included).
Mandarin Oriental, Bangkok, Sanya, San Francisco, Atlanta as well as The Landmark Mandarin Oriental are excluded from the waste figures, due
to incomplete data.

A P P EN DI C ES

Environmental Performance Summary

58

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Endnotes
Delivering Excellence
1	Mandarin Oriental, Manila was closed in 2014. Per our calculation methods, the final energy and GHG emissions
figures are included in the 2014 data. Other figures In this report exclude this property.
2	Headcount was reduced in 2014 compared to 2013 because of changes in boundary with three properties exiting theportfolio or closing
3	Local is defined as residing near a hotel’s location for six months prior to employment. Managers are defined ascolleagues directing a department or group of colleagues.
4	Compensation Force “2014 Turnover Rates by Industry,” 2014.
www.compensationforce.com/2015/03/2014-turnover-rates-by-industry.html
5	United States Bureau of Labor Statistics “Work-related Fatalities, Injuries, and Illnesses”, 2013.
www.bls.gov/iag/tgs/iag72.htm
6World Economic Forum “Global Risks 2015” 10th Edition, 2015. reports.weforum.org/global-risks-2015

Advancing Sustainability
7	This investment figure only applies to our partially and wholly-owned properties in Asia, with additional investments
made in properties where we hold partial ownership of the asset.
8	Reductions—in energy use, greenhouse gas emissions and water use—are calculated as the difference between theabsolute performance in the current year and a “baseline” value, which assumes that no measures have been taken
to increase efficiency since the reference year 2007. The baseline is corrected for variable factors such as occupancy,
weather or number of meals served, to ensure that data is comparable from year to year. The method we developed
follows the guidelines established by the International Performance Measurement and Verification Protocol (IPMVP).
9	Scope 1 emissions are composed of emissions from direct energy sources, including natural gas, diesel and propane.
Scope 2 emissions are the sum of emissions from indirect energy sources, including electricity generation, chilledwater and heated water/steam. Due to the nature of our business, indirect emissions (Scope 2) make up the largest
component of our emissions. Electricity emission factors for properties outside the US have been obtained from theInternational Energy Agency. Electricity emission factors for US properties have been based on the eGrid of the US
Environmental Protection Agency (EPA). Chilled water purchased from external sources such as district or centralised
cooling has been converted to energy and emissions using the simplified approach for electric-driven compressor anda COP of 4.2 as defined by California Climate Change Registry. Steam or heating purchased from external sources
such as district or centralised heating has been converted to emissions using Energy Information Administration,
Voluntary Reporting of Greenhouse Gases, Appendix N.
11 Diesel will remain the primary fuel source for stand-by generators.
12	Renewable Energy Certificates (RECs) are included in the emission calculations, Annual average greenhouse gas
emissions per passenger vehicle is 5.10 t CO2-e per year as in www.epa.gov/cleanenergy/energy-resources/refs.html.
Emissions from stationary combinations, such as boilers, have been based on the Greenhouse Gas Protocol Cross
Section Tools.
13 www.epa.gov/cleanenergy/energy-resources/refs.html
16	Mandarin Oriental, Sanya, Bangkok, Atlanta, and San Francisco as well as The Landmark Mandarin Oriental, Hong
Kong are not included in the waste figures due to inconsistencies in data collection methodology. We are striving tocorrect these processes
17 World Economic Forum “Global Risks 2015” 10th Edition, 2015. reports.weforum.org/global-risks-201518	Mandarin Oriental, Sanya and Mandarin Oriental, Bangkok are included in total water consumption figures, but notincluded in water intensity figures due to inconsistent data. We are striving to correct these processes.
19 Prior data have been restated to correct prior omissions from some properties in data collection.

59
Man darin Orien t al H otel Group Sustainab ility Rep or t 2014

D EL IVERIN G EXC EL L EN C E

AD VAN C I N G SU STAI N ABI L I T Y

C H A MP IO NIN G C OM M UN I TY

60

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 4

Mandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

This was printed on ENVIRONMENT® Papers PC 100 White from Neenah Paper, manufactured entirely with 100% Certified Renewable Energy, madeCarbon Neutral Plus, and Processed Chlorine Free. This paper is Green Seal™ certified ensuring it contains 100% post consumer fiber and that the mill processes, including
packaging are environmentally preferable. Neenah Paper is an EPA Green Power Partner and a member of the Chicago Climate Exchange.