SUSTAINABILITYREPORT 2016

Table of Contents
INTRODUCTION

3

About Mandarin Oriental Hotel Group

3

Message from the CEO

4

Report Highlights

6

STRATEGY AND GOVERNANCE

9

Guiding Principles and Corporate Responsibility Policy

10

Management and Governance12

Responsible Operating Practices

16Long-Term Outlook

18

STAKEHOLDER ENGAGEMENT
AND MATERIALITY

21

DELIVERING EXCELLENCE

27

Delighting our Guests

28

Committing to Health, Safety and Wellness

32

Engaging our Colleagues

38

Investing in Training and Education

42

Promoting Diversity and Inclusion

46

ADVANCING SUSTAINABILITY

49

Reducing Energy and Emissions

50

Conserving Water

56

Managing Waste

60

Sourcing Responsibly

66

Respecting Biodiversity

72

CHAMPIONING COMMUNITY

77

APPENDICES

87

Performance Data

88

GRI G4 Content Index

91

ENDNOTES

94

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2016 S u s t a i n a b i l i t y R e p o r t

Mandarin Oriental Hotel Group
2016 Sustainability Report

About Mandarin Oriental Hotel GroupASIA-PACIFIC
Mandarin Oriental, Bangkok

The Landmark Mandarin Oriental, Hong Kong

Mandarin Oriental, Macau

The Excelsior, Hong Kong

Mandarin Oriental, Sanya

Mandarin Oriental, Guangzhou

Mandarin Oriental, Jakarta

Mandarin Oriental Pudong, Shanghai

Mandarin Oriental, Hong Kong

Mandarin Oriental, Kuala Lumpur

Mandarin Oriental, Singapore

THE AMERICAS
Mandarin Oriental, Taipei

Mandarin Oriental, Tokyo

Mandarin Oriental, Boston

Mandarin Oriental, Las Vegas

Mandarin Oriental, Atlanta

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, Barcelona

Mandarin Oriental, Bodrum

EUROPE,MIDDLE EAST
AND AFRICA
Mandarin Oriental, Washington DC

Mandarin Oriental, Geneva

Mandarin Oriental Hyde Park, London

Hotel Ritz, Madrid

Mandarin Oriental, Marrakech

Mandarin Oriental, Milan

Mandarin Oriental, Munich

Mandarin Oriental, Paris

Mandarin Oriental, Prague

Mandarin Oriental Hotel Group is an international hotel investment and management group with deluxe and first classhotels, resorts and residences in sought-after destinations around the world. Having grown from its Asian roots into
a global brand, the Group now operates 29 hotels and eight residences in 19 countries and territories, with each
property reflecting the Group’s oriental heritage and unique sense of place. Mandarin Oriental has a strong pipeline of
hotels and residences under development. The Group has equity interests in a number of its properties and adjusted
net assets worth approximately US$3.9 billion as at 31st December 2016.
Mandarin Oriental’s aim is to be recognised as the world’s best luxury hotel group. This will be achieved by investingin the Group’s exceptional facilities and its people, while maximising profitability and long-term shareholder value.
The Group regularly receives recognition and awards for outstanding service and quality management. The Groupis committed to exceeding its guests’ expectations through exceptional levels of hospitality, while
maintaining its position as an innovative leader in the hotel industry. The strategy of the Group
is to open the hotels currently under development, whilst 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 listing on
the London Stock Exchange, with secondary listingsin Bermuda and Singapore. Mandarin Oriental HotelGroup International Limited, which operates
from Hong Kong, manages the activities of
the Group’s hotels. Mandarin Oriental is amember of the Jardine Matheson Group.

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Doing More for a
Sustainable Future
For more than 50 years, Mandarin Oriental has been recognised as a leader inluxury hospitality. The Group is dedicated to delivering service excellence and tooperating its hotels and residences in a responsible and sustainable way.
Mandarin Oriental is committed to sustainable tourism and supports the United
Nations Sustainable Development Goals. The Group has a framework ofsustainability strategies and programmes in place to address topics such as
decent work and economic growth, as well as clean energy and water scarcity.
The 2016 report shows the progress made towards the Group’s specific 2020
environmental goals, as well as group-wide commitments and practices to deliver
excellence, advance sustainability and champion the communities in which it
operates. We highlight stories of innovation across our hotels and aim to betransparent about the challenges we face.

The Group is dedicatedto delivering service
excellence and tooperating its hotels
and residences ina responsible andsustainable way.

The accomplishments achieved in 2016 were made possible due to the hard workand dedication of the Group’s 12,500 colleagues who continue to identify impactful
ways to respond to local community and environmental needs.

James Riley
Group Chief Executive

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Report Highlights:
Scope of 2016 Operations
Over 900,000
square metres acrossproperties and more than
2.8 million guests

Safe, Soundand Sustainable
Programme

16th yearof execution on theGroup’s Safe, Sound, andSustainable programme

29 hotels and
8 residences in
19 countries andterritories

Approximately
12,500 colleagues
employed representing
nationalities acrossthe globe

Goals, Commitments and Practices

Greenhouse Gas Emissions

Water

Waste

25% reduction

20% reduction

20% reduction

REDUCED2016 greenhouse gas
emissions intensity by

22.0%

by 2020 inwater intensityfrom 2007 levels

REDUCED2016 water intensity
by

13.9%

by 2020 in waste to landfill
per guestroom
from 2012 levels

DIVERTED

34.1%

from 2007 baselinefrom 2007 levelof waste from landfills
compared to2012 ratio of 17.3%

ON TRACK
to reach 2020 goal

ON TRACK
to reach 2020 goal

BEHIND SCHEDULE
step up initiatives to reach 2020 goal

Committed toFood & Beverageannual trade fair sourcing
initiative targeting tea in 2016

Convened
stakeholder panel
to support materiality assessment
and drive future directions

Advancing
Sustainability

Championing
Community

12

More than

11 yearsof our restaurants
have been honoured
with a total of18

Michelin stars,
more than any otherhotel group in the worldby 2020 in greenhousegas emissions intensityfrom 2007 levels

Delivering
ExcellenceContinued emphasis
portfolio-wide on theimportance of recycling
and diverting waste

Guidelines evolve annually
to incorporate emerging
best practices and ourbeyond complianceapproach for environmental,
health andsafety management

Developed
leading edge
Digital Wellness
programme tohelp guests and colleagues
improve well-being
in the modern,connected world89%

Group-wide

80.6%

environmental score
In 2016

saved due toour energy
measures since 2007

Completed

Delivered our
Sustainability
Training Programme
to all colleagues
Group-wide

6 yearth

3.5%

of greenhouse gas emissions
reduced from utilisation ofrenewable energy creditsof our Fantastic Matchprogramme, with over
$250,000 in matching grants
to our hotels in
the United States

Supported more than

89%

favourable rating oncolleague engagement
survey score(with consistentimprovement
since 2010)

Achieved

Group-wide target
Safe, Sound,and Sustainable
score in 2016

US$42
millionof support for the
Asian Cultural Council’s
Mandarin Oriental
Fellowship for Cultural
Heritage Preservation

50

Nearly100,00 pounds
to dateof used soap and bottled
guestroom amenities
diverted from landfill anddonated to support
those in need throughpartnership with
Clean the World

Developed
plan to migrate to
LED lighting
in all of our hotels by 2020charities andcommunityorganisations in 2016

Each property
identified andexecuted ontargetedcommunity
supportactivities
in 2016

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Strategy andGovernance

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Guiding Principles andCorporate Responsibility Policy
Our Guiding Principles and How They Inform Our Corporate Responsibility Programmes
Mandarin Oriental Hotel Group’s mission is to delight and satisfy our guests. Our mission is supported by our Guiding Principles that
describe the values of our company and our colleagues.

Our Guiding Principles underpin everythingthat we do on a daily basis, ensuring that
we operate to the highest possible standards:
Delighting our guests

Becoming the best

We are committed to exceeding guest expectations by
surprising them with our ability to anticipate and fulfill
their wishes.

We intend to be an innovative leader in the luxury
hospitality industry and will continually improve thequality of our products and services, ensuring weremain relevant to today’s multi-generational audience.

> T o delight our guests, the management of corporate
responsibility topics, including Guest Satisfaction;
Guest Health, Safety and Wellness; and Information
Protection, are critical.

Delighting our colleagues
We provide a caring, motivating and rewarding
environment for all our colleagues. We bring out thebest in our people through effective training andpersonal development, enabling a fulfilling career with
the Group.

> Identifying and investing in targeted Learningand Development initiatives that support our
corporate responsibility programmes is central to
how we operate.

Working together as colleagues
We emphasise the importance of teamwork and treat eachother with mutual respect and trust. By working together
cooperatively, we all contribute to the Group’s success.

> E ngaging our colleagues and fostering a cultureof Diversity and Inclusion are methods in which
we bring this Guiding Principle to life. Additionally,
we promote team building through our corporate
responsibility activities and programmes.

> O ur corporate responsibility programmes areunderpinned by the belief that the best ideas comefrom our colleagues, creating best practices thatcan be shared across our Company. In partnershipwith suppliers and vendors, we also aim tocontinuously embed the principles of sustainability
into the delivery of modern luxury to our guests.

Acting with responsibility
We maintain integrity, fairness and honesty in all our internaland external relationships. We support initiatives that
improve the environment and are responsible members of
our communities.

> W
 e strictly enforce our Code of Conduct andpromote our values to our suppliers and business
partners. The topics of Energy, Emissions, Water,
Waste, Biodiversity and Community Engagement
are central to our corporate responsibility platform.
Through active stakeholder engagement, we identify
opportunities where our corporate responsibility
programmes can continue to improve and evolve.

Our Corporate Responsibility Policy
Each of our Guiding Principles feed into how we execute 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.
Our Corporate Responsibility policy is designed to enable the development of aseries of complementary programmes that can be deployed across the company andintegrated within our corporate culture and across our operations.

The World Travel
and Tourism Council
estimates that, in 2016,
travel and tourism
generated 10.2%of global GDP andapproximately 1 in
10 jobs worldwide.
Growth in tourism andthe number of global
travellers are expected
to continue to rise overthe next ten years1 .
Industry growthtrends reinforce theimportance of thecommitments reflectedin our Corporate
Responsibility policy.

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Mandarin Oriental Hotel Group
2016 Sustainability ReportG
Exec CRC
uti
ve

LuxuryandSustainability

As a luxury brand, we aim to make the delivery of luxury services that delight our guests asenvironmentally sustainable as possible, whilst aligning to the needs and expectations of ourguests. This requires a delicate balance.

AwarenessandIntegration

Throughout all levels of the organisation’s structure, we aim to increase awareness ofsustainability concepts to foster collaboration and enable action. Our Corporate Responsibility
champions at the hotels and residences support these efforts.

Local
Empowerment

Our corporate responsibility programmes are structured to align with our Group’s decentralised
nature and enable sustainability to be embedded throughout the organisation. Guided by the
Corporate Responsibility champions, each property is empowered to choose local initiatives tosupport as well as to find creative ways to improve efficiency in their operations.

Accountability

We emphasise both internal and external reporting mechanisms on corporate responsibility
to create accountability, measure progress over time and identify opportunities for continued
improvement. Our culture of enthusiasm has shown itself to be a key factor in motivatingcolleagues and attaining positive results.

Authenticity

We aim to develop programmes and communications that are authentic to our brand, culture andoperating structure. We also aim to maintain an honest view about our current challenges andopportunities relating to sustainability and corporate responsibility.

ll e

y

u n it
mm

es
a

Co

ll e

g

Co

on

in

ce

Ex

Conservation and the effective management of resources has been a theme for our
Company since its inception, informing how we communicate and deliver on our sustainability
goals and aspirations.

gConservationan g b ili
Te ty
am

ri n

The following directives anchor how we execute our corporate responsibility policy:

Guiding
Principles

gu

iv e

How We Execute Our Corporate Responsibility Policy

HCR HCC RCdan onsC mpi
ha

At the property level, Hotel

pion
ith
w ham
C

in
ta i
S u s o rtpReHotel Corporate
Responsibility Committees

Corporate Responsibility
Committees (HCRCs) have also
been formed. The Committees
must be cross-functional, headed
by a Corporate Responsibility
champion and comprised of at least
10 colleagues at each property.
Specific roles are assigned tocolleagues based on particularareas of focus.

D el

The Group Corporate Responsibility
Committee (GCRC) is responsible
for Mandarin Oriental’s overallsustainability strategy, including
the establishment of measurable
goals, developing programmes andpromoting and soliciting feedback on
corporate responsibility initiatives.

With oversight from our Chief
Executive Officer James Riley, theGCRC is led by Vincent Marot, ourGroup Director of Technical Services.
Mr. Marot is a member of theGroup’s Senior Management Team.

S

ACT
IMP
ER
LD

Our Group Corporate
Responsibility Committee

BU
SIN
ES

Management and Governance

STA
CT
KE
A
P
in g S u s t ai n a b
HOva nc
il i t y
d
IM
A

nc

e

BRA

Ch

am

T
N D I M PA Cpi

In order to tackle each
property’s challenges ofadvancing sustainability,
our committees are
dedicated to working
together as colleagues—
an important guiding
principle for Mandarin
Oriental. In many cases,
advancing sustainability
involves being innovativeand striving to be thebest in order to makereal change and to be
active members of ourcommunities.

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OUR PERFORMANCE

2016 Audit Results
Over the past 10 years, audit
performance has remained
stable, within 2% of the Group’s
target of 90%. In 2016, theGroup’s overall average score
was 89.3%. Group performancein the environmental section
decreased to 80.6%, but it
has improved dramaticallyfrom its initial score of 42% in
2012, when the environmental
guidelines were introduced. The
2016 decrease in both overall
and environmental scores canbe attributed to introducing new
hotels into our Safe, Sound andSustainable programme.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Safe, Sound and Sustainable Programme
Established in 2000, Mandarin Oriental Hotel Group’s Safe, Sound and Sustainable
programme has expanded to reflect our commitment to go “beyond compliance”
and to incorporate best practices that support our corporate responsibility
policy. Programme guidelines are continuously improved upon and updated as
methods evolve and as new impacts from hotel activities are identified. Executive
compensation is based in part on the programme’s annual audit results.

Scope of Safe, Sound &Sustainable Programme
An important way that we have operationalised our commitment toEach fully operational hotel is audited annually to monitor its compliance with Safe,
Sound & Sustainable guidelines. The audits are conducted by an independentcompany, PWT Environmental Consultancy, a UK-based consulting firm, and include
a verification of documentation and records in place, as well as a physical inspectionof the facilities. The annual audit process ensures that hotel management teams arefocused on health and safety issues and are prepared to manage crisis and businessinterruptions. The environmental guidelines cover the Hotel Corporate Responsibility
Committee, management of energy and water consumption, greenhouse gas
emissions and the generation and disposal of waste.

corporate responsibility is through our company’s proprietary
Safe, Sound and Sustainable Programme, which addresses the following topics:

Over the past few years, we have gradually migrated from announced tounannounced audits to better reflect how our operations are run on a daily basis.
Hotels are eligible for unannounced audits four years after their opening, allowing
ample time to adapt to the programme. Despite the change, 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.

Fire Safety

Food & Beverage

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

Health and safety related toFood and Beverage operations.
Based on the accredited international
standard of Hazard Analysis andCritical Control Point standards (HACCP)

Occupational
Health & Safety

Business Continuity
Planning & Risk Management

Health and safety topics in the workplace.
Based on the Occupational Safety and
Health Administration (OSHA) standardsof the United States government

Overall Risk Management and business continuity.
Developed on proven risk assessment
and risk management methodology

Security
Security of guests, colleagues and property.
Based on international best practices

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



Health and Safety

Environment

Health and safety topics related to guests.
Based on British and European standards

Management of the property’s environmental impact.
Based on international best practices

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Mandarin Oriental Hotel Group
2016 Sustainability ReportManaging Anti-Corruption Risk

Responsible Operating Practices
Enforcing Our Code of Conduct
The Group conducts its global business in a highly professional and ethical manner.
Our standards are clearly set out in the company’s Code of Conduct, a set of
guidelines to which every colleague must adhere. Our Code of Conduct requires that
we comply with all applicable laws, regulations and proper standards of businessconduct. The Code requires all colleagues to be treated fairly, impartially and withrespect, and that all managers ensure awareness and compliance by direct reports
within their organisations.
The Group’s Employment Policy also prohibits all forms of harassment anddiscrimination, such as impeding movement or creating an intimidating, hostile oroffensive work environment, and provides procedures by which colleagues canraise, in confidence, any matters of serious concern, such as suspected noncompliance or illegality.

Respecting and Protecting Human Rights
Mandarin Oriental Hotel Group aims to operate in a mannerconsistent with the United Nations Universal Declaration of
Human Rights and with the International Labour Organisation’s
Fundamental Conventions with regard to child labour and forced
labour, wages and working hours, health and safety, freedom of
association, and non-discrimination.
The Group is taking active steps to ensure all colleagues are madeaware of the risks of modern slavery and labour exploitation in
supply chains and business, including specific training due to belaunched in 2017 on the issue in its orientation programme andregular updates and communications.
The Group is also in the process of introducing responsible andsustainable purchasing guidelines across its portfolio in order toensure that our suppliers, vendors and business partners share ourvalues with regard to fundamental human rights. These guidelines,
which will be subject to regular evaluation, require complianceand commitment to anti-slavery and human trafficking laws andprinciples with respect to all products, services and supply chains.

Bribery and corruption are explicitly prohibited in our Code of Conduct, with oversightfrom our Group Finance and Risk Management functions. Additionally, all General
Managers and senior colleagues are expected to actively support anti-corruption
policies at individual hotels and properties. Certifications of compliance with the Code of
Conduct are obtained from all hotels annually with a mid-year update. Internal Control
Audits are also conducted at the Group’s hotels and corporate offices in Asia Pacific,
Europe and the Middle East. In the United States, a third-party audit firm conducts theaudits. Additionally, we conduct background checks on prospective partners.
We maintain a whistleblower policy and procedure to encourage the reporting of any
inappropriate activity. Any failures to comply with the Code of Conduct are investigatedand disciplinary action is taken as appropriate, up to and including termination.

Enterprise Risk Management
Since the Group’s formation in 1963, enterprise risk management has been
embedded into our culture and practices. With oversight from the Group’s Risk
Management Committee, enterprise risks are assessed and reviewed annually andshared with the Board’s Audit Committee. In addition to enterprise risks, local risk
assessments are conducted by each property. Based on these risk assessments,
business continuity plans are updated for each property. Business continuity plansconsider a series of property-specific risks, which includes terrorism, contagion andextreme weather events.

Responding
to Emerging
Information
Protection
Challenges
Mandarin Oriental’s
information protection
practices are focusedon maintaining theconfidentiality, availability
and integrity of guest,
colleague and company
information.
The information protection
programme is designed
to align with our Guiding
Principles and leverage thestrength of our company’s
culture. Policies and bestpractices are based on
the ISO 27001 and 27002
standards for information
security. Our Group Risk
Management Committee
governs the programme,with actions andresponsibilities cascading
to each of our properties.
In the face of escalating
threats to businesses overthe past few years, theGroup has made a strong
commitment to information
security with a focus oncontinuous improvement,so that we can identify
and appropriately
mitigate our risks andpotential exposures
to specific threats.

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Mandarin Oriental Hotel Group2015 Sustainability Report

Long-Term Outlook
Our corporate responsibility policy and programmes help us to monitor and respond within our sphere of influence to a series of
emerging socio-economic topics that impact our business, our stakeholders and our brand. The following are four important topics
that inform our long-term outlook for corporate responsibility:
Topics

CLIMATECHANGEWATER
STRESS

Implications

Strategies

In the World Economic Forum’s 2017 Global Risk
Reports, risks associated with climate change
was named among the world’s top five risks interms of likelihood and potential impact2.

Mandarin Oriental strives tohelp mitigate these risks byembedding sustainability
strategies into our global
business model. Investingin efficient technology andequipment, combined withintegrating sustainability
practices into our business,affords multiple benefits.

Changing climate patterns may cause anincreased occurrence of droughts, hurricanes
and typhoons—risks affecting our infrastructure,
our colleagues in their livelihoods, our guests’
travel plans and the health of our communities.

According to the World Resource Institute,
more than a billion people currently live in waterscarce regions, and as many as 3.5 billion could
experience water scarcity by 20253.
Society and businesses depend on theavailability of safe, reliable supplies of water tomaintain life, sanitation and human activities.

Mandarin Oriental formallyassesses water risks across
our portfolio to inform longterm strategies to conserve andprotect water.

SUSTAINABLE
FOOD

Determining a way to sustainably feed theworld’s growing population presents a seriesof challenges including soil erosion, destructive
fishing practices and the agriculture industry’s
own impacts to local climates, ecosystems
and water supplies.

Across our operations, weplan to continue our support
for and sourcing from farmers,
ranchers and fisheries thatengage in sustainable methods
for food production.

CHANGING
CONSUMER
DEMOGRAPHICS AND
PREFERENCES

Augmented by technology, connectivity andglobalisation, the travel and tourism industry
is currently experiencing robust growth
and transformation, increased interest in
sustainability, a more diverse travel populationand the emergence of the sharing economy,
among the many trends that we closely monitor.

Our corporate responsibility
programmes provide us withmethods that support how we canbetter understand and respond tothe changing market landscape ina manner that elevates our brandand how we will delight our guests
in the 21st century.

Energy, water, health,employment, biodiversity,
sustainable cities and othertopics that inform our longterm outlook on corporate
responsibility are captured
within the United Nations’Sustainable Development Goals
and the associated targets foreach goal4. The Sustainable
Development Goals serve as animportant reference point for
our Company as we execute ourcorporate responsibility policy
and programmes.

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Stakeholder
ExoremUpsum
Engagement
Dolor Sit at
and Materiality

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Mandarin Oriental Hotel Group2015 Sustainability Report

Stakeholder Engagement
Mandarin Oriental Hotel Group serves a diverse group of stakeholders, which includes our guests; colleagues; owners anddevelopers of our properties; local communities in which we operate; shareholders; suppliers, vendors and contractors; industry
associations and non-government organisations.
Effective consultation and involvement with our stakeholders is crucial to understanding their viewpoints so that we can better alignour business with their goals:
Stakeholders

Primary 2016 Engagement Methods

Identified Topics of Concern

GUESTS• Guest Satisfaction Survey• Solicitation of Direct and Target Feedback
to Inform Quality Programmes• Guest Wellness• Food Safety• Information Protection

COLLEAGUES• Colleague Engagement Survey• Career Development Plans and Performance Reviews• Hotel Corporate Responsibility Committees• Safe, Sound and Sustainable Programme• Compensation and Benefits• Professional Development• Occupational Health and Safety• Corporate Responsibility• Community Engagement

OWNERS AND
DEVELOPERS• Close Partnerships and Regular Communications Throughout
Design, Development, Construction and Management of Properties• Economic Performance• Energy Efficiency• Risk Evaluation and Monitoring

LOCAL
COMMUNITIES• Participation in Local Stakeholder Groups Including:– Hotel Associations– Chambers of Commerce– Business Development Councils– Convention and Visitors’ Bureaus and Promotion Organisations– Travel and Tourism Associations– Community Benefit Organisations– Local Heritage Preservation Initiatives– Training and Local Talent Retention Organisations– Local Collectives for Recycling– Employer Organisations and Professional Associations• Economic Presence
and Participation• Local Talent Acquisition
and Retention• Skills Training• Culture and Heritage Protection• Topics Specific to
Individual Communities

SHAREHOLDERS• Ongoing and Routine Discussions With our Controlling
Shareholder Jardine Matheson Group on Financial Performance,
Risk Management and other current issues• Financial and Sustainability Reporting• Shareholder Feedback Mechanisms• Corporate Governance• Economic Performance• Customer Satisfaction• Environmental Performance• Risk Evaluation and Monitoring

VENDORS,
SUPPLIERS AND
CONTRACTORS• Supplier Meetings to Discuss Sustainable Sourcing Opportunities• Food and Beverage Conference• Partnerships with Local Farmers, Ranchers and Fisheries• Economic Performance• Operational Eco-Efficiency• Climate and Water Risk
• Sustainable Food
• Human Rights in the Supply Chain

INDUSTRY
PEERS ANDTRADE
ASSOCIATIONS• Participation in World Travel and Tourism Council’s Task Force on
Industry Strategies for Climate Change• Participation in Industry Hotel Carbon and Water Measurement Initiatives• Monitoring and Evaluating Industry Corporate Responsibility Initiatives• Carbon Emissions
Reduction Targets• Human Rights in the Supply Chain
and Tourism Industry

NGOs ANDOUTSIDEADVISORS• Interviews and Panel Discussion to Discuss Opportunities to
Improve Corporate Responsibility Programmes and Reports• Energy, Water, Waste, andGreenhouse Gas Emissions• Colleague Training and Skills
Development• Guest Engagement on Sustainability• Human Rights in the Supply Chain
and Tourism Industry• Biodiversity• Supply Chain Responsibility

Additional information on how we engage with our guests, colleagues, communities and suppliers can be found in the
Delivering Excellence, Advancing Sustainability and Championing Communities sections of this Report.

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Mandarin Oriental Hotel Group2015 Sustainability Report

Materiality Assessment
In alignment with the framework and best practices set forth in the Global Reporting
Initiative (GRI)’s guidelines, we have conducted a materiality assessment to inform theselection of topics for our Sustainability Report.
We conducted an internal workshop facilitated by a third-party consulting firm,
Greenview, where the Group Corporate Responsibility Committee evaluated a seriesof corporate responsibility topics based on the degree of the Group’s economic,
social and environmental impacts (both actual and potential) and the level ofstakeholder concern for each topic. We also considered issues that are specific to thetravel and tourism industry.
To validate and enhance the Committee’s preliminary assessment, we convened astakeholder panel, which incorporated perspectives from the following organisations:• Conservation International• International Tourism Partnership• National Geographic Traveler• United States Green Building Council• World Wildlife Fund

Based on the findings of the materiality assessment, we identified thefollowing topics to prioritise within the Group’s corporate responsibility reportingand programmes. Moving forward, we plan to evolve and further align ourmateriality assessments to support the UN Sustainable Development Goals.

Guest Engagement
on Sustainability

Human Rights
and Diversity

Biodiversity

Guest Healthand Safety

EnergySupply Chain
Management

Information
Protection

Greenhouse
Gas Emissions

Local Community
Impacts

Colleague Training andSkills Development

Water

Anti-Corruption

Colleague Health,
Safety and Wellness

Waste

ComplianceOur 2016 Sustainability Report includes expanded content that incorporates the GRI reporting guidelines,
materiality assessment findings and specific feedback from our stakeholder panel to improve our sustainability reporting.

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Delivering
Excellence

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Going Above and Beyond
At Mandarin Oriental, we believe that a personalised service and attention to thesmallest details are critical. We take the time and effort to remember and addresseach guest by name, document guest preferences and customise meals according totheir dietary requirements. This helps us to anticipate special needs or requests thatour guests may have.

Delighting Our Guests
Goals and Commitments
To delight and satisfy our guests

Across our hotels
around the world, ourcommon mission is todelight and satisfy ourguests. Our colleagues
are committed to makea difference every day,continuously striving
to improve and deliver
service from the heart.

Practices
We evaluate our hotels’
performance on a regular andconsistent basis against morethan 200 of our company’s
Legendary Quality Experiences
guidelines

Future Directions
Continue to identify compellingways to integrate sustainability
into the guest experience

Creating Legendary Quality Experiences
We measure our hotels’ service performance on a regular and consistent basis, andshare the results across the Group. We believe that this is important if we are to berecognised as a leader in our industry.
To guide our colleagues, the Group has created the Legendary Quality Experiences(LQEs)—containing more than 200 company guidelines, which focus on experiences
rather than basic luxury standards. The LQEs are centred on 11 pillars of service andcover all the important aspects of a guest visit. The LQEs enable our colleagues to go
above and beyond our Standard Operating Procedures.
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 also measure ourselves
against other international standards including the American Automobile Associationin the United States, the Forbes Travel Guide and the Michelin Guide.

We empower our employees to go above and beyond to delight our guests withsurprise amenities that recognise special occasions and acknowledge our most loyal
guests. In 2016, examples included:> H appy Kids, Happy Parents
At Mandarin Oriental, Barcelona, a football loving family mentioned that they wereBarça fans and were in town to see the football match. The hotel team went out of
their way to provide Barça caps and scarves for the family to wear at the match. At
Mandarin Oriental, Las Vegas, two music loving teenagers were delighted to receive
shirts and a complimentary limousine transfer to the Justin Bieber concert, while at
Mandarin Oriental, Jakarta, a family was pleased with the personal attention received
from each member of the guest relations team, who provided an Xbox and otheramenities designed to keep the children happy throughout their stay.

> S urprise and Delight
A regular guest of Mandarin Oriental, Boston misplaced a much loved set of rosary
beads. The team coordinated with Mandarin Oriental, Milan to obtain and ship a newrosary that had been personally blessed by Pope Francis.

> K
 indness is the Best Medicine
Travel can be exhausting and each of our hotels provides a variety of “get wellsoon” amenities for guests feeling under the weather. Services range from collecting
medicine to providing chicken consommé and peppermint tea. Each hotel is alsoable to summon emergency medical assistance if required and is happy to assist
with family Iiaison.

Listening to Our Guests
Managing quality service, and measuring and understanding guest key drivers anddetractors influences all areas in our organisation and creates awareness amongcolleagues. These practices enable us to be guest centric and adapt our services andofferings according to changing guest expectations. We utilise three types of surveys:
a post-stay survey for new and repeat guests, a meeting planner survey and a spa
survey for day visitors.
Our customer satisfaction and loyalty survey is conducted with the help of a thirdparty organisation that sends an online questionnaire following a guest’s stay.
Detailed, actionable monthly feedback is then provided to our managers on property,
which helps to enhance our service delivery. In 2016, the Group received over 33,000
guest satisfaction surveys with an overall quality rating of 90%.
Furthermore, we ask guests for direct and targeted feedback. Through guest
feedback and our quality assurance results, we can then analyse and understandwhich areas to celebrate and those that we need to improve upon. We also monitor
TripAdvisor and other travel review sites for guest experience feedback, which areas
to celebrate and those that we need to improve upon.

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OUR PERFORMANCE

Guest Satisfaction
Mandarin Oriental’s overallsatisfaction ratings indicate
a consistently high level ofguest satisfaction and loyalty
to the brand, varying less than
three percentage points since2009. In 2016, we achieved
an overall satisfaction rateof 90%, consistent with our
performance range between
88–90% since 2011.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Solving Problems

Focusing on
Innovation

Each of our hotels is committed to continuous improvement and our guest
satisfaction ratings are often used to identify specific areas for improvement. Real
time guest satisfaction reports and data drill down are available to our colleagues anddraw attention to guest experiences trending outside of the norm.
The Group uses a proprietary Problem Solving Technology programme, based onseven steps, by utilising tools and processes to identify root causes through analysis.
Once a root cause is confirmed, ideation tools are used to innovate for solutions,followed by implementation and subsequent measurement.

Incorporating Sustainability into the Guest Experience
In addition to partnering with guests through linen and towel reuse programmes,
2016 highlights from across our properties include:> C harging Up
We have begun installing electric vehicle charging stations at our hotels andresidences. The Tesla Model S is now a guest transportation vehicle at selectMandarin Oriental hotels in the United States and Europe.

> T he Library of the Future
Our hotels have begun providing guests with access to an online library ofinternational newspapers and magazines available upon check-in.

> W here the Garden Grows
Mandarin Oriental hotels in Atlanta and London feature onsite herb and floral
gardens used for the restaurants and in-room guest amenities.
	Mandarin Oriental, Marrakech maintains a botanic garden at its spa. The herbs
are used to create freshly grown herbal teas for spa guests to enjoy following
treatments. The garden also has a variety of fruits and more than 20 varietiesof vegetables that are used in the hotel’s three restaurants. There are also over
100 varieties of roses in the garden.

> F arm-to-Table Luxury
Mandarin Oriental, Singapore has launched a new guest package, which includes
private and guided tours to a local farm and fishery, as well as a gourmet meal withwine pairings.

> V egan Friendly
Several hotels including Mandarin Oriental, Bodrum, London and Washington
DC have expanded their vegetarian and vegan menus to support guests’
dietary choices.

> M aking Nature Fun
At Mandarin Oriental, Sanya, a popular destination for families, children cancollect stamps for their own personalised “passport” and learn about the
nearby Coral Bay’s fauna and wildlife in the process.

In 2016, we developed aformal programme to spark
innovation across the Group.
New ideas generated fromthe innovation programme
included those related to
new products and services,
as well as new ways tofurther elevate our guests’
experiences. As part of theinnovation programme,
more than 50 ideas were
submitted to a working
group. Among these ideas,eight have been selected
for further explorationand presentation to ourleadership team.

PromotingSocially Responsible
Enterprises
Mandarin Oriental,
Marrakech has partneredwith local foundation“Sur Le Chemin de
L’Ecole,” which helps girls
from rural areas in Morocco
to access education. At
Mandarin Oriental, Boston,
the Spa features items froma local jeweller who uses
recyclable metals. Someof the proceeds from sales
are donated to Maloto, acharity focused on helping
the people of Malawi.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Committing to Health, Safety and Wellness
Goals and Commitments
To provide an environment where
our guests and colleagues canbe safe and well

We take care to lookafter our guests when
they stay with us, sothat they can relax andfeel at home. We also
provide our colleagues
with a safe work
environment

Practices
We rigorously manage health andsafety through our Safe, Soundand Sustainable programme but
also create authentic, holistic
wellness experiences for ourguests and colleagues

Future Directions
Enabling “Wellness
Everywhere”—not only in ourSpas but across all touchpoints of the guest experience,
promoting “digital wellness”
and deepening colleague
engagement on wellness

The Importance of Health and Safety
Our guests spend a considerable amount of time in our hotels, and they trust us toprovide an environment that is not only comfortable and aesthetically beautiful butthat also serves as a safe haven during their visit. It is also critical that our colleagues
are provided with a safe work environment.
Hotel operations are complex and require a comprehensive approach to managing
the health and safety of our guests and colleagues. We conduct detailed safety
inspections, tests of relevant systems, cleaning and maintenance checklists andprocedures for ensuring safe use of facilities, equipment and supplies—­all of which
are strictly audited. Additionally, work-related accidents and incidents are reported to
the Group Risk Management Committee and thoroughly investigated to identify theroot cause and to initiate corrective and preventive measures.

OUR PERFORMANCE

Occupational Health and Safety
In 2016, there were 7.2 incidents per 100 colleagues resulting in lost
time, a 1% increase from 2015 and above the United States Bureau
Leisure and Hospitality safety rate of 3.3 incidents per 100 colleagues5.
The incident rate of our Americas hotels was above the proximate U.S.
industry average at 17.9 incidents per 100 colleagues, and increased
from the prior year.
The incident severity rate, a measure of lost days per incident also
increased by 1% in 2016 to 25.73 lost days per incident per 100
colleagues. The increase in the Group’s incident severity rate was inEurope, while the severity rate in both Asia and the Americas decreased.
Please see the Appendix for more detailed results.

An Authentic, Holistic and Personal Approach to Guest Wellness
Because we also know how important health and wellness are to our guests, Mandarin Oriental strives to provide environments andexperiences that are not only safe, but also to consider the long-term wellness of our guests and spa customers.

We aim to provide spa guests with authentic, holistic
and personal experiences:> A uthentic
Guided by the Group’s oriental heritage but
influenced by local cultural diversity, Mandarin Oriental
has created distinctive concepts with a unique senseof place in every location. Whether in China, Turkey
or Morocco, our services embed cultural practices
specific to where our hotels are located.

> H olistic
Each Spa at Mandarin Oriental is designed tooffer a complete holistic experience that goes wellbeyond simply delivering massages to tired bodies.
Additionally, we provide guests with targeted
wellness options and take pride in delivering abespoke service.

> P ersonal
We recognise that wellness is very personal andtake the time to understand guests’ specific needs
and goals.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Sharpening Our Focus on “Digital Wellness”
As new levels of technology continue to consume daily life, it is becoming moredifficult to detach from the digital world. In 2016, several of our Spas began to offer
digital wellness programmes. For example, Mandarin Oriental’s new digital wellness
retreats encourage guests to use their visit as a chance to disconnect and reevaluate their relationship with electronics. Exercises focus on establishing personalboundaries on the use of electronic devices, clearing mental chatter and creating ahealthy, digitally balanced lifestyle.
In 2016, we also launched a “Digital Wellness Escape”, which is an 80-minuteexperience concentrating on the head, eyes, neck, shoulders, hands and feet. This
restorative treatment aims to ease stresses and strains resulting from the frequent
use of digital devices. At the end of each treatment, therapists provide guests witha Digital Wellness Tips booklet and explain the importance of healthy habits aroundtechnology use at home.

Expanding Our Visiting Practitioners Programmes
We are motivated by a vision of “Wellness Everywhere” where wellness is cultivated
not only in our Spas but across all touch points of the guest experience. To deliveron this vision, we are focused on harnessing the experience of our therapists
and their wide range of specialisations: from Tai Chi to Shanghainese pedicures.
In addition, we plan to host innovative visiting practitioners, such as iridologists,trichologists and specialised sound healers. We also continue to explore innovative
partnerships and share best practices from our spa programmes to enhance thewellness of our colleagues.

Partnering with Leading Health Experts
Mandarin Oriental Hotel Group partnered with Mayo Clinic to offer the Mayo Clinic
Healthy Living Programme at Mandarin Oriental, Bodrum—the first collaboration of its
kind. With a focus on preventive wellness and designed to inspire a more balanced
lifestyle, the wellness programme offered guests a choice of tailor-made experiencesfrom one day assessments to five day retreats, as well as a la carte services.
The Mayo Clinic Healthy Living Programme at Mandarin Oriental, Bodrum cameto an end in April, 2016, but our relationship with Mayo Clinic continues. In 2016,
we worked closely with the leading health experts at Mayo Clinic to promote digitalwellness as well as developing a series of wellness events to be offered at Mandarin
Oriental, Washington DC in 2017 and working on tailored jet lag recovery services tobe launched in 2018.

Furthering theDevelopment ofGreen Spas
Mandarin Oriental has partneredwith the Green Spa Network toadvance the development of atool to evaluate environmental
practices for spa operations
located at urban hotels. The
results will be shared acrossour Spas, as well as publicly
with the industry to support
the further development ofenvironmental best practices.

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Mandarin Oriental Hotel Group
2016 Sustainability ReportColleague wellness highlights in 2016 included:> K now Your Numbers
Mandarin Oriental, Las Vegas has expanded the reach of its biometric screening
programme, which is available to colleagues working at both its hotels andresidences. In 2016, nearly 300 colleagues participated—a nearly 50% increase inparticipation levels from 2015.

Integrating Wellness into Our Corporate Culture
Often inspired by our guest services, colleague wellness has
increasingly become part of the corporate culture at our hotels.
Colleague wellness activities consider both physical and mental
health and provide an opportunity to support team building andengage with communities. In 2016, we continued to deploy
wellness initiatives including a variety of fitness classes ranging
from yoga and Pilates to rock climbing and salsa dancing, weightloss programmes and educational events across the company.
Our Group has always had a strong culture of colleague
wellness, but in 2016 our efforts accelerated. Inspired by Global
Wellness Day, we held a Colleague Wellness Week across theGroup. The Colleague Wellness Week programmes were sowell received that most properties have decided to build upon
the momentum and establish permanent programmes basedon their Wellness Week activities. Across hotels, a hallmark ofColleague Wellness Week is also engaging the community toparticipate in wellness week activities.

> J oin The Club
Colleagues at properties including Mandarin Oriental, Las Vegas, London andParis and Hotel Ritz, Madrid have formed running clubs. In 2016, 15 colleagues at
Mandarin Oriental Hyde Park, London also participated in the Run in the Dark to
support research to find a cure for paralysis.

> T ime to Train
During Colleague Wellness Week, Mandarin Oriental, Miami brought in specialised
trainers to teach boxing, self-defence and yoga to colleagues.

> S tand Up
Colleagues in our corporate offices and hotels including Mandarin Oriental, Boston
and New York have begun to use stand-up desks to promote a healthier and lesssedentary lifestyle.

> E -mail Free Fridays
Mandarin Oriental, Las Vegas has implemented “E-mail Free Fridays” to encourage
more face-to-face communication. Similarly, our properties in Hong Kong andSingapore encouraged “digital wellness” during mealtimes as part of its Colleague
Wellness Week

> T alking About Stress
The Colleague Wellness Week activities at Mandarin Oriental, Macau included
bringing in a local professor to lead a guided discussion with colleagues on how toapproach stress in the workplace and their personal lives.

> S un and Heat Protection
Mandarin Oriental, Las Vegas utilised its monthly colleague wellness newsletter toemphasise the importance of sun and heat protection as well as provide protection
tips to colleagues.

> H ealthy Competition
Mandarin Oriental, Milan’s Director of Engineering founded a small soccer team,which has begun competing against other luxury hotels in the city. The teamhas been so popular that they are considering expanding the league to include
volleyball competitions.
At the Group level, we also began sending weekly wellness tips to colleagues andhave developed new ideas to advance our 2017 Colleague Wellness Week during
2016. Among these ideas, we plan to promote our focus and emerging expertise on
digital wellness practices to our colleagues.

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Mandarin Oriental Hotel Group
2016 Sustainability ReportOUR PERFORMANCE

Colleague Engagement
and TurnoverEngaging our Colleagues
Goals and Commitments
To recruit, develop and retain thebest talent

In order to be aleader in the markets
we serve, we haveto recruit, develop
and retain the besttalent. We want to be
known as one of thebest employers in thehospitality industry.

Practices
We engage our colleagues
through our benefits, recognitionand sustainability programmes,
and we closely monitor findings
from our Colleague Engagement
Survey to drive future efforts

Future Directions
Continuing to identify creativeand impactful ways to deepen
our engagement with colleagues
on sustainability

The Importance of an Engaged Workforce
It is well researched and documented that happy colleagues lead to happy guests.
For guests to have a delightful stay with us, it is imperative that our colleagues are
happy and engaged in their jobs. An engaged workforce also generates consistencyof service delivery, reduces recruitment costs and enables us to more easily transfer
our culture across new markets around the world.
We strive to remain an employer of choice and create an environment for colleagues
which is passionate and harmonious and where colleagues feel respected. We believethat every colleague should be and feel personally valued.
We continue to focus on recruiting the best talent and have been deepening our
engagement with hospitality programmes at schools and universities. We also aim
to continuously seek new and better ways to engage our workforce. In 2016, weupgraded MOnet, our colleague intranet, to contain more compelling and robust
content, as well as to support discussion, collaboration and sharing of best practices.

Beginning the Journey
In the same way that we consider the various touch points associated with theguest journey through our hotels, we also consider the colleague’s journey andhow we can improve upon the touch points that they experience during theiremployment with us. Upon commencement with the Group, all new colleagues
follow our extensive MOve In orientation process, which introduces them to ourunique company culture and heritage.

Recognising Excellence and Tenure
Each of our hotels have a Colleague of the Month or Quarter programme, which
is developed locally to ensure that the recognitions and rewards are relevant to
the local environment. At the group level, our Long Service Awards programme
rewards colleagues upon every five years of employment. In 2016, we also begancelebrating colleagues’ first anniversary of working with us through our Long
Service Awards programme.
We also recognise colleagues through the MOstay programme, which enables
colleagues to stay at our hotels at reduced rates. In 2016, Mandarin Oriental, Prague
began awarding colleagues that go above and beyond with complimentary stays at
the hotel as a well as spa treatments.
During bi-monthly Human Resources meetings, hotels share best practices
and ideas so that we can continue to enhance our colleague benefits andrecognition programmes.

Encouraging Feedback and Monitoring thePulse of Our Workforce
We utilise a series of mechanisms, which include town hall meetings and focus
groups, to get feedback from our colleagues to identify areas where we are doing
well and where we need to improve. Our Colleague Engagement Survey is themost valuable tool that we employ at the Group level. The survey is a voluntary andanonymous online questionnaire that is issued to the entire hotel workforce.
In 2016, we had an extremely high completion rate of 97% with more than 10,000
colleagues from our hotels participating. The Colleague Engagement Survey was
distributed in fifteen languages with 129 questions covering over 20 categories(including sustainability).
Results from the Colleague Engagement Survey are reviewed at the hotel, regionaland group levels. Data is also analysed by age, length of service and gender toensure that we are able to identify any specific concerns among these target groups.
During our annual Human Resources Strategy Meeting, the Colleague Engagement
Survey results inform the development of the Human Resources Strategic plan for theupcoming year.

The colleague response rate toour most recent survey in 2016
was 97% and revealed an 86%
favourable rating (excellent orabove average). Since 2010, thepercentage of colleagues rating
Mandarin Oriental Hotel Group as
favourable has steadily improved
from approximately 80%.
Whilst our colleague
satisfaction rate remains high,we operate in an industry
that is characterised by highturnover. In 2016, Mandarin
Oriental experienced a 0.5%
decrease in our global turnoverrate from the prior year;
however, our global turnoverrate remains above the current
industry average. Colleagues
under 30 continue to be thedemographic with the highest
turnover rate. In 2016, we
experienced lower turnoveramong colleagues under 30.
The rate of these colleagues
decreased by two percentage
points.
We have found that, in
addition to compensation andbenefits, the primary drivers
for engagement and retention
among our workforce are careerdevelopment, a passion forcustomer service and pride in the
reputation of our hotels.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Trading Places

The following 2016 highlights exemplify the types of activities that we encourage:

At Mandarin Oriental, Kuala
Lumpur, all managers participate
in a management “job swap”
twice a year. This programme
enables managers to gain broader
experience and learn about
specific challenges, which theywould otherwise not encounter.

> H arnessing the Ideas of Colleagues
Mandarin Oriental, Hong Kong has developed the “i-Suggest” campaign wherecolleagues were invited to submit their suggestions on how to make the hotel
more sustainable.

> A Helping Hand(book)
Mandarin Oriental, Munich’s Corporate Responsibility team has created a
Sustainability Handbook for colleagues. To develop the handbook, best practices
in Munich as well as those identified at other hotels in Europe, the United Statesand Asia were collected.

Beyond the powerfulengagement that resultsfrom the “job swap”, real
progress is made to makethe hotel stronger and better.
In 2016, Mandarin Oriental,
Kuala Lumpur identified
approximately 70 specificaction points for follow-up
to improve both efficiency
and quality for colleagues
and guests.

> G reen Awareness Week
Mandarin Oriental, New York dedicated an entire week to engaging its colleagues
on environmental awareness in 2016. Topics covered during its Green AwarenessWeek included “green eating” as well as training on composting and recycling.

> E arth Walk
In addition to switching off the lights to commemorate Earth Hour in March, colleagues
at Mandarin Oriental, Kuala Lumpur also participated in an Earth Night Walk to
acknowledge the importance of protecting the environmental health of the planet.

> S eeing is Believing
Colleagues at The Landmark Mandarin Oriental, Hong Kong visited a nearby
Ecopark and plastic recycling centre in addition to a “Clean the World” factory tounderstand how the hotel’s soap is converted to new soap and donated to people
in developing countries. Colleagues at The Excelsior, Hong Kong also visited thelargest solar farm in Hong Kong.

> C olleague Orientation Integration
At Mandarin Oriental, Sanya, all new trainees take part in beach cleaning as part of
the resort’s MOve In orientation.

> A
 Trip to the Farm
Mandarin Oriental, Singapore organised a 2016 organic farm visit, wherecolleagues learned about ecological agrarian methods of farming.

Engaging Our Colleagues on Sustainability
An educated and engaged workforce is key to operating our hotels moresustainably. Equally important, we believe that our sustainability programmes will
also lead to greater engagement among our colleagues and connect them with agreater sense of purpose.
Over the past few years, we have made strides to increase colleague awarenessof our commitment to sustainability. Our colleague engagement survey includes
questions to gauge colleague awareness and satisfaction with our Group’s
sustainability performance and practices. Among all topics, we achieved the highest
improvement for the topic of sustainability over the past five years. In 2016, oursustainability scores among colleagues was the highest to date. 93% of colleagues
responded that their role to help the company achieve its environmental goals ismade clear.

> C ar Free Days
As part of its campaign to encourage colleagues to use public transport andcarpooling, Mandarin Oriental, Bangkok held a “Car Free Day”. Colleagues also
participated in a bike ride to support “Car Free Day” and the hotel’s corporate
responsibility activities.

> C leaning Up
Mandarin Oriental, Atlanta has adopted a section of the Old Forth Ward Park forpark cleanup. On a quarterly basis, colleagues pull weeds and initiate generalcleanup of the designated area. In collaboration with the local government,colleagues at Mandarin Oriental, Singapore also collected more than 130
kilograms of litter (83% of which was recyclable) as part of its Operation WE Clean
Up! The project supports the Keep Singapore Clean Movement.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Building Sustainability
Knowledge Acrossthe Workforce

Investing in Training and Education
Goals and Commitments
To provide opportunities wherecolleagues can grow within theGroup and develop our senior
managers from within

Practices
We emphasise continuous,
experiential learning and partnerwith colleagues to achieve
professional development

We know that careerdevelopment isvitally important to allcolleagues, and we are
passionate about thedevelopment of ourcolleagues at all levelsof the organisation.

Partnering with Colleagues to Chart Their Careers

We provide a Sustainability
Training Programme for allcolleagues. The two-and-ahalf hour course is designed
to improve knowledgeof sustainability issues
and reinforce the value ofsustainable practices at
Mandarin Oriental. Colleagues
gain a global perspective on
environmental issues important
to Mandarin Oriental’s businessand discuss issues of concern
in their local communities.

Future Directions
Enhance tools and resources
available to support colleague
learning and development

In our colleague engagement surveys, career development has been rated as thelead driver of colleague engagement. As such, performance and succession planningremain a critical priority to satisfy the career aspirations of our colleagues and support
our continued global expansion.
In addition to regular feedback processes, annual performance and succession
planning reviews are completed at all levels of the organisation. We have establishedan online performance management system, which gives colleagues and their
managers the ability to track performance, training and overall professional
development in real-time. The system also promotes more frequent manager
interaction by supplying tools for providing relevant feedback. Colleagues andmanagers can add developmental or coaching comments at any time during theyear. All managers also complete a two-day training programme called “Managing
Performance and Development” to provide them with the skills and knowledge tocomplete effective performance reviews with their colleagues.

Continuous and Experiential Learning for All Colleagues
Our approach to learning and development is unique in that we emphasise
continuous and experiential learning over traditional classroom training methods.
Training for competency rather than hours of training continues to be our pathway toensure success. Our training is personalised rather than a “one-size-fits-all” approachand focuses on the skills and abilities needed for each position.
We carefully measure whether each colleague is able to accomplish the tasks of hisor her job to the required standards. We also reinforce the importance of learning
through our Line Colleague Certification Programme, which rewards new starters
who complete their initial job training within their first three months of employment. In
2016, we have increased participation in the Line Colleague Certification Programme
across our hotels.
To be a successful hotel manager, leadership competencies are not enough.
Knowing that our managers need to wear many hats, the programme gives
managers deeper, “hands on” exposure to many facets of our operations, including
sales, information technology, finance, marketing, spa services, rooms and foodand beverage operations.
To further develop the functional competencies of our Hotel Managers, we completed
the pilot of a new leadership development programme in 2016. Hotel Managers
representing five hotels in the United States, Europe and Asia participated in the pilot.
We also implemented a “Train the Trainer” programme to further develop our own
Learning and Development team.
We continue to focus on enhancing colleague access to e-Cornell online learning
modules in a manner that maps target areas identified during a colleague’s
performance review against the relevant eCornell programmes.

For all new colleagues, wehave developed a Sustainability
Awareness Training programme,
which is part of the Group’s
mandatory MOve In orientation
programme. We have also
developed targeted training for
our Corporate Responsibility
champions at each hotel.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Developing and Promoting from Within
We aim to offer opportunities to grow within the Group whilst developing ourown senior managers from within. The Group utilises its Learning Framework as
a roadmap for colleague development based on current and future career goals,
and we evaluate the efficacy of our programmes against our 70 Learning andDevelopment quality standards.
Signature learning and development programmes at the Group include:> M Ove Up
A six-month course for supervisors and junior managers focused on competency
building and individual and team leadership skills> M
 Ove Forward
A twelve-month, wide-ranging management development programme toenhance business skills and leadership qualities of our experienced managers
and department heads> M
 BA Executive Programme
A company-funded programme with the Royal Melbourne Institute of Technology
achieved over a three- to five-year period for hotel and corporate senior managers
These programmes also create value, because they unify colleagues who work in
different hotels. Colleagues have the opportunity to travel to other hotels and, asa result, forge deeper regional bonds. We believe that there are opportunities toreplicate this model for future cross-location and blended learning programmes. In
2016, we initiated a virtual learning and development programme with 13 participants
across Europe.
Ultimately, our success lies in the number of leaders that emerge from within our ranks.
For example, the General Manager of Mandarin Oriental, Prague began his careerwith us as a trainee and became a General Manager, having completed the MBA
Programme. We seek to highlight and celebrate these examples of career development.
We have developed a dashboard that will track the number of internal promotions.
Additionally, we plan to promote and track the number of internal transfers.
To support these efforts, we engage in succession planning at each hotel with thegoal to develop focused development plans for colleagues identified with the potential
to become General Mangers as they grow with our organisation.

The Mandarin Oriental Executive Development Centre
provides senior managers with feedback to facilitate their personal and careerdevelopment. Through the Centre’s programme, senior managers produce anindividual development plan focused on maximising their personal leadership styleand enhancing leadership effectiveness towards a General Manager’s position.
The Mandarin Oriental Executive Development Centre offers support and structure
to help uncover our managers’ potential for advancement within the Group. In
2017, eight new colleagues will be participating in the next Centre’s programme.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Raising Disability AwarenessPromoting Diversity and Inclusion
Goals and Commitments
To create an environment where
each colleague feels valued andrespected

Practices
We maintain a diverse populationand cultivate inclusive practices
across our operations

The more diverse ourcolleagues, the greater
the set of skills andcompetencies Mandarin
Oriental will have at
its disposal. This willassist us to thrive inever changing markets
around the world.

Enforcing Our Guidelines and Policies

Future Directions
Continue to develop and promote
activities and programmes thatcelebrate and leverage ourcolleagues’ individual differences,
cultures and perspectives

Mandarin Oriental has Group-wide hiring and employment guidelines as well as strict
anti-harassment and anti-discrimination policies. Every colleague receives training on
our employment policies upon hire. However, our Group’s management approachto diversity and inclusion goes beyond these baseline practices—we believe thatcelebrating our differences supports and enhances how we deliver on our Guiding
Principles.

Increasing Our Productivity and Creativity
Greater diversity offers different ways of thinking. A broad mix of prior experienceand expertise in certain processes encourages colleagues to discuss and learn fromeach other. Different backgrounds, experiences and skills lead to greater innovation,
creativity, enhanced collaboration and teamwork. With a broad range of backgrounds
comes an increased level of creative talents and ideas.

Connecting with Our Global Guest Populations
With colleagues from a wide range of backgrounds and experiences comes a greater
understanding of guests’ points of views. The more diverse and inclusive our workforce,the more likely it is that we will be able to respond to our individual guests’ needs.
Our ultimate goal is to have our hotels staffed with a majority of colleagues from thelocal community. When hiring managers, we must consider the balance between
recruiting locally or transferring from within. A local manager may know the market
and have a presence and reputation in the local community. By transferring amanager from within the company, we have an opportunity to introduce the brandand implement the company’s culture and operational standards.

On an annual basis, Mandarin Oriental, Paris organises a week-long programme toraise awareness about disabilities in the workplace. In 2016, activities were held eachday, which included inviting instructors to teach Braille and bringing visually impaired
masseuses onsite to provide massages. Colleagues were also trained on how towelcome disabled guests and participated in running sessions with Louis Radius, aparalympiques medal winner.
The General Managers of Mandarin Oriental, Singapore and The Landmark Mandarin
Oriental, Hong Kong also serve on the Steering Committee of MINDSET, anorganisation that works to change attitudes regarding mental health disabilities. Someof the participants are given the opportunity to apply for positions within our company.

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Advancing
Sustainability

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Key Strategies to Reach Our 2020 Goals

Reducing Energy and Emissions
Goals and Commitments
To reduce energy intensity
by 20% and greenhouse gas
emissions intensity by 25% from2007 levels by 2020
Our 2016 interim goals were15% and 17.5% for energy
and greenhouse gas emissions
reductions, which we achieved

We aim to employ
sound sustainable
principles throughout
the lifecycle of ourproperties­—from siting
to design, development,
operations, maintenanceand refurbishment.

Practices
We identify projects throughenergy audits, retrocommissioning studies andmonitoring technologicalinnovations. We rigorously
analyse our data and utilise
regression analysis to track ourtrue progress against 2020 goals

Future Directions
Continue to increase operational
eco-efficiency and develop
vision post-2020 that considers
science-based targets required tocurb greenhouse gas emissions

Mobilising to Reach Our Energy andEmissions Reduction Goals
We believe that what gets measured gets managed. We have established a 2020
vision with energy and emissions reduction goals based on a 2007 baseline, andinterim 2016 goals to track our progress. Each hotel also has individual short-termgoals, which are reviewed and adjusted annually.
Investing in efficient technology and equipment, combined with integrating
sustainability practices into our business, affords multiple benefits. Since 2007, ourGroup has achieved cost savings of US$42 million through our energy and emission
reduction projects.
People and process are vital to our overall success. Our colleagues’ dedication andenthusiasm for our sustainability efforts makes the difference. The environmental
achievements included in this report would not be possible without their commitment.

We acknowledge that we are still in the formative stages of a multi-decadejourney to decarbonise our operations. We have established a set of strategies
that create a foundation and have driven notable performance improvements
against our 2007 baseline:> E nergy Audits
As part of our Safe Sound and Sustainable programme, we conduct energy audits
with guidelines based on ASHRAE’s Procedures for Commercial Energy Audits.
The audits also consider the particular requirements of each hotel and often target
specific mechanical functions, such as chilled water or hot water production. In
2016, energy audits were completed at Mandarin Oriental, Atlanta and Las Vegas.

> R etro-Commissioning
We apply this process when it is clear that the testing and commissioning process
conducted as part of the project handover have been ineffective or when aspecific area of concern is identified during an energy audit, such as the balancingof the air conditioning, ventilation, heating or chilled water systems. A morecomprehensive retro-commissioning process is applied when there are significant
changes to the operation, due to renovations or extensions of the property.
In 2016, Mandarin Oriental, Miami, followed up on the Retro-Commissioning
conducted in 2015 with significant improvements of indoor air quality conditions.

> L ED Lighting
For many years, LED lighting technologies were simply not a viable option for
our Group because they did not meet our quality standards and requirements
for dimming controls in guest contact areas. Fortunately, there have been great
advancements in the technology and we have rapidly acted to deploy LED lighting
across our hotels. It is our goal to migrate to LED lighting in all hotels by 2020.
To date, we have made notable progress—installing LED lighting in guestrooms,
banquet areas, restaurants, corridors, parking garages and back-of-house areas
across our hotels and residences.

> E nergy Management Systems
In addition to optimising the efficiency of our systems and equipment, we continue
to invest in innovative technology balanced with fundamentally sound engineering
practices that do not adversely impact the guest experience. For example, 88%of our hotel rooms are now equipped with automatic systems to reduce energy
consumption when guestrooms are unoccupied. Mandarin Oriental, Washington
DC upgraded its smart, in-room energy management systems as part of its
guestroom renovation.

> B ehavioural Changes
Mandarin Oriental
is committed toreducing our energy
consumption andgreenhouse gas
emissions. Through afocused, coordinatedeffort, we have madesignificant progressagainst our 2007
baseline.

We encourage behavioural changes to identify “low hanging fruit” opportunities.
Regular measurement and monitoring, particularly using sub-metering whenpossible, helps to spur changes in behaviour. For example, management at
One Hyde Park, our Group’s residences in London, have begun to monitor
utility consumption of all residents’ apartments and investigate abnormal usage.
As a result, some simple behavioural change opportunities have been identified
for landlord-controlled areas. Opportunities were also identified to reduce costs
for residents.

Green Building
Certifications, Awards
and Recognitions
Through the receipt of green
building certifications, weare able to demonstrate andpromote best practices acrossour Group. Mandarin Oriental,
Paris is the first hotel in Francewith the country’s HQE green
building certification for bothconstruction and operations.
Mandarin Oriental, Las Vegas
is also LEED® Gold certified.
In 2016, Mandarin Oriental,
Geneva received the “Ambition
Negawatt” award from the local
utility company, competingwith 90 other organisations in
Geneva and achieving an energy
saving of 13.9%. Mandarin
Oriental, Boston also received
the TripAdvisor GreenLeaders
Platinum designation for the firsttime in 2016.

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A Better Way to Chill
Chiller optimisation continues tooffer significant improvements.
In 2016, Mandarin Oriental,
Boston and Miami eachcompleted major chiller
optimisation projects. In
Boston, the hotel focused on
demand flow and was able topartner with a local utility which
funded approximately 25%of the investment. The chiller
optimisation project in Boston
is expected to reduce chiller
energy consumption by morethan 40%.
Mandarin Oriental, Miami’s
chiller optimisation was
identified during a retrocommissioning study conductedin the prior year. The approach
was unique in that the property
focused on the power oftechnology—installing softwareand hardware inside the chiller
plant. This technology is able
to monitor its performance inreal-time. Chiller efficiencies
of approximately 15% areexpected from the project.
At Mandarin Oriental,
Washington DC, a chiller
optimisation project was also
initiated in 2016 and work isscheduled for completionin early 2017.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Renewable Energy Consumption and Production
Several of our hotels are able to purchase renewable energy credits (RECs), whereenergy is sourced either partially or fully from low carbon sources, to procure
renewably sourced energy directly from local utilities.
Currently, Mandarin Oriental, Munich, Prague and Washington DC actively purchaserenewable energy. In 2016, the purchase of renewable energy reduced the Group’s
overall footprint by 3.5%, and we foresee more hotels following suit in the coming years.
At Mandarin Oriental, Barcelona and Mandarin Oriental, Bodrum, solar energy is used
for hot water heating. In 2016, Mandarin Oriental, Marrakech replaced gas fired boilers
with high efficiency biomass boilers that will provide energy to hot water production andheating at its main building and spa as well as heating of its central pool.
We continue to monitor advancements made in the capabilities, pricing and reliabilityof solar, wind and other forms of low carbon energy. We are hopeful that the national
agreements and associated commitments made at the UN Climate Conference inParis will accelerate innovation and help to make more widespread deployment of low
carbon energy sources viable for our Group over the coming decade.

Mandarin Oriental, Barcelona

The Spa at Mandarin Oriental, Marrakech

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Mandarin Oriental Hotel Group
2016 Sustainability ReportIndustry Collaboration on
Climate Change and Carbon

OUR PERFORMANCE

Energy Consumption
Energy intensity is a normalised measure ofenergy consumption per square metre of property.
This measure allows us to evaluate our energy
consumption over time, since the footprint ofour company continues to change. Our energy
intensity has steadily decreased since 2007.
In 2016, annual energy intensity for the Groupdecreased further by 0.9% to 1,561 MJ/m2/year.
Absolute energy consumption for the Group
totalled 1,464 TJ in 20166, an increase of 1.0%
over 2015, associated with a 1.9% increase in air
conditioned floor area. By implementing energy
efficiency measures, the Group avoided 209 TJ ofenergy consumption in 20167. The total avoided
consumption 2007 to 2016 was 1,066 TJ.

Addressing Fugitive Emissions

Mandarin Oriental also participates in the Hotel Carbon
Measurement Initiative (HCMI), led by the World Travel
and Tourism Council (WTTC) and the International Tourism
Partnership. The HCMI is a standard methodology for the hotelindustry to calculate carbon emissions. The HCMI’s common
approach to carbon measurement provides greater clarity toguests and event planners that aim to better understand theenvironmental impact of a guest stay.

Fugitive emissions are emissions that are unintentionallyreleased into the atmosphere. Fugitive emissions typicallyoccur from leaks in refrigeration systems or whilst handlingrefrigerants. In 2012, we began to manage these emissions
in a more systematic way by incorporating these emissions
in the Safe, Sound & Sustainable programme. Through thesecollective efforts, fugitive emissions are down 53% since thestart of the programme and represented only 2.7% of total
emissions in 2016.

We also participate in the Cornell Hotel Sustainability
Benchmark, an endeavour to deepen the understanding of
the relative and collective greenhouse gas footprints of hotels
worldwide. Additionally, we served on a task force for the
WTTC to prepare a report that assessed the preparedness of
our industry to address climate change in advance of the UN
Climate Conference in Paris.

2000

124

1,908
1,772

195
1500

117

209

1,449 1,464

250

250

1,957

1,732

1,741 1,741

137

1,700

1,588 1,574
1,561

1500

238

1,355
28
22

1,332
117
111
91
1,199
1,190
1,165
1,129

150
1000

0

2

128

125

7
132

9
139

12
144

18

19

138

137

174

28

200

213

215
202

30
194

191

188

2014

2015

185

174

160

150

100

100

50

50

500

500

0

231
221

200

137

70
1000 1,058 1,032 1,055(kg CO2-Eq/m2/year)

2007–2016 (1000 × t CO2-Eq/year)
ABSOLUTE GREENHOUSE GAS EMISSIONSREDUCED GREENHOUSE GAS EMISSIONS

2000

19

G R E E N H O U S E G A S EM ISSIO N IN TEN SITY

ABSOLUTE GREENHOUSE GAS EMISSIONS(MJ/m2/year)

ABSOLUTE ENERGY CONSUMPTIONREDUCED ENERGY CONSUMPTION

0

Emissions intensity is a normalised measure ofgreenhouse gas emissions per square metre ofproperty. In 2016, the Group’s emissions intensity
decreased by 1.5% over the prior year to 185
kg CO2 per square metre. Since 2007, we have
reduced our emission intensity by a total of 22.0%.

From 2007 to 2016, our total avoided emissions wereequivalent to taking 28,660 cars off the road.

E NE R GY INT E NSIT Y

2007– 2016 (TJ/year)

Greenhouse Gas Emissions

In 2016, absolute emissions generated by theGroup amounted to 173,752 metric tons of CO2
equivalent (including reductions from RECs)8.
78% of our emissions were from electricity
consumption. From 2007 to 2016, our total
avoided emissions are estimated at 146,167
metric tons of CO2 equivalent9. This is equivalent
to taking 28,660 cars off the road10.

Our energy intensity has steadily decreased
since 2007; decreasing further by 0.9% in 2016.

ABS OLUTE ENERGY CONSUM PTIONOUR PERFORMANCE

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

0

0
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2007

2008

2009

2010

2011

2012

2013

2016

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Conservation Measures to Support Our 2020 Goal
We have a set a goal to achieve a 20% reduction in our water consumption per guest
night from 2007 levels by 2020. As we work toward this goal, we are focused on
implementing best practices to conserve water:

Conserving Water
Goals and Commitments
To reduce water intensity per
guest night by 20% from 2007
levels by 2020
Our 2016 interim goal was toreduce water intensity by 15%,
which we almost achieved

The availability of clean,accessible water isessential to the services
we provide and criticalto the health andeconomic vitality of thecommunities where we
operate.

Practices
We execute on a series of water
conservation strategies including
investing in water efficienttechnologies, stimulating process
improvements and re-using andrecycling water

Future Directions
Leverage the findings from ourwater risk assessment to drive
development of new strategies
and projects with a focus on
hotels in water stressed locations

Understanding Our Water Risks
Water is a finite natural resource whose value is not always reflected in its relatively
low cost. When droughts and other water challenges arise, we experience notable
increases in costs. In recent years, the United States has been most affected
on a cost basis, with average rates estimated to have increased by 48% from2010–201511. However, cost is merely a small part of the equation when considering
the potential implications that water risks could pose to our business and thecommunities where we operate.
Mandarin Oriental has conducted a Group-wide water risk assessment using
the World Resources Institute’s Aqueduct tool12. Based on the location of ourproperties, we considered our exposure on a site-by-site basis to a series of risks,
which included baseline water stress, flood occurrence and drought severity. The
assessment reviewed the current condition as well as a projection for 2020. The
water risk assessment identified 13 properties in our existing portfolio and sevendevelopment projects that are located in high water stressed areas. The key findingsof the water risk assessment will be used to identify and prioritise target water
conservation actions and programmes. For example, Mandarin Oriental, Bangkok ran
a campaign to educate colleagues on water conservation during the 2016 drought inCentral Thailand.

>M otion Sensors and Low Flow Fixtures
We continue to retrofit motion sensor and low flow fixtures in our properties’common areas, back-of-house areas and guestrooms. In 2016, Mandarin
Oriental, Bangkok, Singapore and Hong Kong installed new low flow toilets intheir guestrooms.

> P rocess Improvements and Water Efficient Technologies
From our buildings’ heating and cooling systems to our kitchen, laundry andgardening operations, the stimulation of process improvements that conserve
water has helped to support the Group’s progress toward our 2020 goal. Eachof our hotels and residences are actively identifying and implementing water
efficiency technologies and process improvements to conserve water. In 2016,
Mandarin Oriental, Hong Kong introduced an alternative system for defrosting
food, eliminating the traditional use of freshwater. Mandarin Oriental, Boston has
begun to offer soakless pedicures to reduce water associated with spa services.

> B ehavioural Change Initiatives
Due to behavioural change initiatives, we have been able to support a cultureof conservation. At Mandarin Oriental, Hong Kong, overnight cleaning water
consumption is monitored daily and water saving opportunities are reviewed withthe kitchen team on a monthly basis. In 2016, colleagues at Mandarin Oriental,
Marrakech began placing water conversation labels next to all back office watertaps as a gentle reminder not to be wasteful when using water.

Capitalising on Opportunities to Recycle and Reuse Water
Central to our water conservation plan is to increase the amount of water that we areable to recycle and reuse as well as using alternative methods to provide cooling to
the chiller system whilst maintaining high system efficiency. This is best implemented
at the design stage or in conjunction with major system or property renovations.
Best practices are beginning to emerge across the Group and throughout
our properties:> O ur Gardens
Mandarin Oriental, Sanya uses recycled treated grey water for irrigation throughout
the resort’s extensive gardens. At Mandarin Oriental, Marrakech, ground water isused for irrigating its landscaping and vegetable garden.

> B ack-of-House
Mandarin Oriental, Milan is using groundwater for the chiller system rather thanevaporative cooling towers. Mandarin Oriental, Bodrum engages in a similar
process, using seawater instead.

> G uestrooms
Mandarin Oriental, Hong Kong and The Excelsior, Hong Kong recycle water fromthe cooling towers for toilet flushing. Mandarin Oriental, Tokyo also uses recycledwater for toilet flushing in part of the building.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Approaching End-of-Life Replacements Strategically
When replacing piping and other components of water systems at our properties, wehave been able to identify opportunities that support our 2020 water conservation
goal as well as our broader corporate responsibility platform. In 2016, Mandarin
Oriental, Las Vegas selected new Aquatherm replacement piping to prevent leaks aswell as maintain water quality. The new pipes have an added benefit as well—they are
made from 100% recyclable materials and are estimated to require 75% less energy
to produce in comparison to traditional metal piping. They are also free from VOCs,
BPAs, chlorides and heavy materials, and are projected to last more than twice aslong as copper or steel piping alternatives.

Challenges and Opportunities
We recognise that our guestrooms and spas are very water intense and that wetherefore need to increase our efforts and identify additional initiatives to further
improve efficiencies in other areas. This includes application of technology as well as
training to encourage behavioural change.

OUR PERFORMANCE

Water Consumption
In 2016, the Group’s absolute water consumption, including irrigation, cooling towers, swimming pools
and guestrooms, was 3,301,374 cubic metres13. In 2016, water intensity increased over the prior year by
2.5%. Since 2007, we have reduced our water intensity by a total of 13.9%.
Municipal water supplies provide water for all hotels with the exception of Mandarin Oriental, Bangkok,
which relies partially on surface water, and Mandarin Oriental, Bodrum, which predominantly uses
groundwater purified by reverse osmosis. Municipal supply accounts for 92.5% and surface andgroundwater represents 7.5% of our total water supply.

Since 2007, wehave reduced ourwater intensity bya total of 13.9%.

To measure progress against our 2020 reduction goals, we utilise the number ofguest nights as our intensity metric. However, variations in the number of guest nights
can either accelerate or decelerate our progress.
We continue to focus our efforts of reducing water consumption in areas where it
is not directly impacting guest experience and the sense of luxury associated withour brand. Moving forward, we also aim to improve communication processes
with developers on the importance of water efficiency, continue to drive process
improvements and capitalise on opportunities to reuse and recycle water. Additionally,
our water risk assessments will continue to play an important role in driving future
strategies, especially in water stressed areas.

WAT E R I N T E N S I T Y

A B S O L U T E WAT E R C O N S U M P T I O N

2007–2016 (litres/guest night)

2007–2016 (1,000 m3/year)
ABSOLUTE WATER CONSUMPTIONREDUCED WATER CONSUMPTION
1200

5000

1,137

904

4000

723

85
2,419
2000

164 2,414
2,166

245
2,575

2,899

1,097 1,101

1000

1,059 1,065
1,015

983

786

3,053 3,116 3,000

955

979

902

670

570
3000

972

3,234

3,301

800

600

400

1000

0

200

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Waste management centre at
Mandarin Oriental, Kuala Lumpur

Managing Waste
Goals and Commitments
To reduce waste-to-landfill per
guest night by 20% from 2012
levels by 2020
Our 2016 interim goal was toreduce waste intensity by 10%,which we did not reach—making
our 2017-2020 efforts more critical

The staggering amountof waste generated
by society is rapidly
becoming a global
issue. At Mandarin
Oriental, we assume
responsibility for
reducing the amountof waste we generateand strive to identify
resourceful ways
to minimise ourenvironmental impact.

Practices
We divert waste from the landfill
through materials reduction,
reuse, recycling, donation,
composting and conversion tobioenergy and farm feed

Future Directions
Continue to develop new
partnerships and practices andfurther engage colleagues on
the importance of recycling anddiverting waste from landfills

Managing Our Waste Streams
Our hotels’ waste streams are mapped to more than 30 waste categories, which
include glass, aluminum, metal, wood, paper, food, used oil, soap bars, bottled
amenities, landscaping waste, batteries, used appliances and printer toners.
For each of these waste streams, each hotel has identified disposal methods thatavoid landfills based on local available options. These methods include recycling,
donation, composting, use for bioenergy and use for farm feed.
Over the past five years, we have engaged in significant efforts to obtain credible
data that will enable us to measure progress against our goals. In 2016, 96% of ouroperating hotels provided waste data compared with 63% when we started thisinitiative in 2012.

A Tried and True Model
We utilise the three “R”s—Reduce, Reuse and Recycle—as a model that support,
our efforts to reduce the amount of waste sent to landfill per guest night:> R educe
Several of our waste streams present opportunities to reduce the amount of wastethat we generate. Whilst each hotel focuses its efforts in the areas where it makes
most sense for their operation, we have identified food and plastic waste as overalltarget areas for our Group.

> R euseWe reuse whenever possible, and we have been able to identify numerous ways todonate materials for community re-use and benefit across our locations of operation.

> R ecycle
We actively recycle materials and engage our colleagues to promote recycling.

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Learning From
Our Successes
In 2016, Mandarin Oriental,
Hong Kong increased its
waste diversion rate by 6%(now at nearly 40% diversion).
The Corporate Responsibility
team attributes these positive
results to continuously pushingtoward improvement—leveraging colleague training
as well as waste audits andfocused planning. To reduce
paper consumption, the hotel
assigned responsibilities toeach department to comeup with an action plan. Once
all ideas were submitted,
they were consolidated andshared throughout the hotelwith monthly follow-ups.
The result—annual paper
consumption was reduced bynearly 20% in 2016.
Mandarin Oriental, Kuala
Lumpur and Munich have also
made strong progress over the
past few years. Both properties
cite the importance of recent
audits as well as colleague
education and ensuring that theright waste bins are in place.
With an onsite recycling
centre, Mandarin Oriental,
Las Vegas is able to handsort its glass, metal, plastic,
paper, and cardboard. In 2016,
Mandarin Oriental, Las Vegas
saved nearly US$50,000 fromfinding recoverable silverware
in its waste bins. To promote
recycling at its residences, theproperty also places recycling
bins in all residence service
landings.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Food Waste
Food waste has a significant impact on the overall weight of the waste being
disposed. Our efforts are primarily focused on eliminating food waste in the first place.
We are working to transform our operations so that the practice of sending foodwaste to the landfill is consistently avoided.
Colleague engagement is critical and we aim to continue promoting best practices,such as those at Mandarin Oriental, Hong Kong where “Zero Food Waste” days areheld in the staff canteen monthly and colleagues are given chopsticks that promote
the message of “Take just enough. Do not waste food.” As a part of the food waste
reduction programme at Mandarin Oriental, Singapore, colleague awareness isenhanced through educational videos, refrigerator magnets and table top reminders
in the canteen.
Most of our hotels have also identified composting or recycling options, notably
for cooking oil. Cooking oil is recycled at properties including Mandarin Oriental,
Guangzhou and New York. In 2016, Mandarin Oriental, Miami implemented a newly
recyclable oil system for its main kitchen fryers.

Plastic Bottles

In 2016, highlights and best practices across the Group included:> Identifying Items for Re-use Onsite
Towels that are in good condition but do not meet our standards for guestrooms
are reused as foot mitts in the Spa at Mandarin Oriental, Macau. Mandarin
Oriental, New York has implemented a programme to reuse all wire hangers in the
hotel, estimated to diverting about 75,000 hangers from landfills annually.

> S haring with Our Colleagues
At Mandarin Oriental, Macau, leftover produce is shared with colleagues.
Mandarin Oriental, Atlanta also enables colleagues to reuse hotel mattresses,
linens, cooking equipment, china and silverware in exchange for a nominal
fee, which is used to fund the hotel’s corporate responsibility initiatives.

> A New Home for Used Linens
Mandarin Oriental, Miami has donated its used linen to local animal rescue
charities. Mandarin Oriental, Macau donated towels to a local home for theelderly and a local charity. Mandarin Oriental, Barcelona also donated used
towels, linens and bathrobes to charitable causes.

Plastic bottles are used for drinking water provided to guests in guestrooms, spa, fitness
and wellness areas, restaurants, banqueting and limousine services. An increasing
number of our hotels have provided alternatives where reusable glass bottles or drinking
water units are used. Although we are at a very initial stage, we made significant progress
to reduce plastic bottle waste in 2016 and are optimistic that we can replace a significant
amount of plastic bottles in the near future using these methods.

> A Life After “Lost and Found”

In 2016, Mandarin Oriental, Geneva became the first hotel in our Group to introduce
reusable water bottles in guestrooms. Other hotels throughout the portfolio also plan
to incorporate this practice.

> L eftover Food and Flowers

Driving Positive Impact Through Reuse
Our hotels have very strict standards on which items can be guest facing. For
example, a mere chip on a plate will render that plate unusable for our operations.
That said, just because we can no longer use specific items, these items can still bereused and enjoyed by others including our colleagues and those in need. As such,
donations are a key method that enable us to divert waste from landfills.

In 2016, the Excelsior, Hong Kong donated 250 kilograms of lost and founditems to a charity that provides help to the poor and disadvantaged in Hong
Kong and Mainland China, with particular emphasis upon displaced persons.
Mandarin Oriental, Boston also donated nearly 130 pairs of lost eyeglasses to
Lion’s Club International for re-use.

Mandarin Oriental, Singapore partners with the “Food from the Heart”
organisation to donate surplus pastries and breads monthly for distribution
to welfare homes, children, senior citizens and other needy families on theisland. Working with the organisation ‘Food Bank Singapore’, surplus cooked
food from the hotel is also collected and distributed to underprivileged
communities in the city. After large events where there is a surplus of flowers,
the hotel donates to Happy Flowers, a charity that repacks and sends theflowers to those in hospice care and nursing homes.

Composting to Close
the Food Cycle Loop
Properties including Mandarin
Oriental, Boston and Las Vegas
are able to send composted
materials to local pig farms.
At Mandarin Oriental, Boston,
approximately 120 tons ofcompost were sent to a local pig
farm in 2016. Mandarin Oriental,
Bangkok and New York havealso begun to compost plantand flower waste.
Several of our hotels havealso invested in food wastebioreactor machines forcomposting. At Mandarin
Oriental, Washington DC,
approximately 150,000
kilograms of food waste arecomposted annually using its
two waste bioreactors.

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Mandarin Oriental Hotel Group
2016 Sustainability ReportOUR PERFORMANCE

Waste-To-Landfill
Diversion
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 2016, theGroup assessed 3.66 kg waste
sent to landfill/guest night14,
a 2.0% increase over 2016
figures and higher than our2012 baseline. We attribute thisincrease in part to our Group’s
enhanced data collection
procedures and increased databoundary.
Although not part of our goals,
we monitor our waste diversion
performance closely as thisprovides us with an indication
on how effective the properties
are in diverting waste fromlandfill. Since 2012, our waste
diversion factor has doubled. In
2016, our waste diversion factor
was 34%, compared to 31% in2015 and 17% in 2012.

Strengthening Our Organisation Through Recycling

Challenges and Opportunities

Recycling has provided unexpected revenues in many locations, which has helped tofund corporate responsibility initiatives at our hotels. For example, Mandarin Oriental,
Bangkok was able to generate thousands of dollars from sending scrap metal fromits recent renovation back to the contractor for recycling. Mandarin Oriental, Jakarta
was also able to recycle old pipes and kitchen equipment in collaboration with a thirdparty vendor.

We believe that it is important to think globally but act locally in order to transform
leading edge practices to practical processes that we can implement. To achieve
our landfill waste diversion goals for 2020 and beyond, we must address specificlocal challenges.

Across the Group, we continue to identify new opportunities for recycling
beyond traditional waste streams, which include the following:• M andarin Oriental, Singapore has identified a local partner to recycle
expended lamps.
• M andarin Oriental, Las Vegas has selected a vendor to increase the amountof electronics and metals that can be recycled.
• S everal hotels, including Mandarin Oriental, Guangzhou and Prague, havebegun to recycle used coffee capsules—providing a notable opportunity inthe aggregate.
Colleague engagement is critical to increasing the amount of recycled waste
at each property. Led by our Corporate Responsibility Champions, many of
our hotels have enacted awareness and education measures. We also support
colleagues to recycle in their own lives. In 2016, Mandarin Oriental, Atlanta
and Las Vegas provided electronics recycling opportunities to colleagues. At
Mandarin Oriental, Barcelona, bottle caps have been collected to support the“Lids for a Life” programme, which helps disabled children to get access to
medical treatments.

WA ST E INT E NSIT Y AND DIVE R SIO N RAT E(kg/guest night and percentage)
WASTE INTENSITY
DIVERSION RATE
4.0

WASTE BY DI SPOSAL METH O D

1,913
3.59

2016
3.5

3.46

3.56

Diverted

3.58

3.66

31%
30%

3.0

Incinerated
24%

2.5

Diverted
31%

Landfilled

2.0

Landfilled
47%

1.5

17%

1.0

Incinerated
22%

0.5

0.0

2012

2013

2014

2015

2016

Limited waste infrastructure for recycling and composting is a challenge for someof our destinations. Waste separation and measurement in hotels that are part ofa mixed-use development can also be a challenge. As such, a review of the waste
management process at the construction stage for new developments is particularly
important, especially for mixed-use developments.
To reach our 2020 goals, we must continue to build awareness and education
among our colleagues on the importance of recycling and diverting waste fromlandfills. It is also critical that we continue to enhance how we account for the highvolume of heavy waste, such as “wet” waste and glass generated at our food andbeverage operations.

Promoting Hygiene in
the Developing World
Since 2010, we have partneredwith Clean the World, whereused soap, shampoo and otheramenities are donated for reuseto support those in developing
nations. In 2016, 19 of ourproperties donated more than
25,000 pounds of soap andbottled amenities to Clean theWorld. To date, Group donations
have helped to distributenearly 250,000 bars of soap todeveloping countries.
We aim to extend ourpartnership with Clean theWorld as its network expands
to other locations where we
operate. Colleagues at Mandarin
Oriental, Las Vegas also
supported the Clean the World
Volunteer Day—coming together
to wash and organise usedshampoos, conditioners andsoap containers for re-use.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Environmental andSocial Screening

Sourcing Responsibly
Goals and Commitments
To increase our purchasing ofsustainable, ethically-sourced
and local materials across ouroperations

Practices
In close partnership withour colleagues, suppliersand vendors, we engage inenvironmentally preferable
purchasing and consider broader
societal issues including fair tradepractices, sustainable fisheries,
the world’s bee population andhuman healthWe support a complex,
global supply chainthat encompasses
multinational vendors
and local farmers andranchers. From ourfood and beverage
to our cleaning andlaundry operations,
we are inspired by
the opportunities
to accelerate ourcommitment to
responsible sourcing.

Our Supply Chain

Future Directions
Develop and enhance
standards and practices thatcan be applied consistently
throughout the Group

Mandarin Oriental Hotel Group supports a large supply chain with thousands ofsuppliers when aggregated across each property. Our approach to managing
procurement and vendor relationships is mostly decentralised, with properties
directly selecting and purchasing most of the items used to support daily
operations—most notably food, cleaning and spa products. Beyond our regular andongoing purchases of items required for daily operations, our Group also procuresbuilding materials, information technology, furniture, fixtures and equipment for ourhotels and residences.

Environmentally Preferable Purchasing
Each hotel is encouraged to identify and partner with suppliers that provide
environmentally preferable purchasing opportunities, such as recycled and reusable
materials, that meet our needs and support our brand.

Each year, new opportunities are identified. In 2016, highlights included:> O rganising for Success
The Landmark Mandarin Oriental, Hong Kong began to implement a sustainableprocurement policy with procedures that were piloted in the property’s Food &Beverage and Property Operations & Maintenance departments. The hotel notified
all vendors and contractors that more sustainable products and services will bedeemed as “preferred”, and selected key vendors and contractors were asked
to complete a questionnaire. Specific products were reviewed to assess newenvironmentally preferable purchasing opportunities, including those related to
packaging and local products. Progress to date, as well as future opportunities,
are reviewed on a monthly basis.

> B iodegradable Guestroom Toiletries
Mandarin Oriental, Kuala Lumpur now purchases biodegradable toothbrushes,combs and shower caps for its guestrooms. The biodegradable toiletries aredisposed of separately, and associated cost savings are used to help fund thehotel’s community and colleague engagement activities.

> C ompostable Products Only
The Corporate Responsibility Committee at Mandarin Oriental, Milan introduced
a “compostable products only” policy in its colleague dining room. As part ofthe policy, all consumables, such as tissues and coffee cups, are 100% biodegradable and everything else is washable.

> S ize Matters
At Mandarin Oriental, Las Vegas, branded water bottles have been reduced insize by 40% to 10 ounces. As more than 120 water bottles are distributed daily,
this change is expected to result in notable reductions in both cost and waste-tolandfill with minimal impact on guest experience.

> T he “Green” Ground Beneath Our Feet
Mandarin Oriental, Atlanta upgraded its fitness centre to include flooring madefrom recycled tires. When renovating its guestrooms, Mandarin Oriental, Kuala
Lumpur selected eco-friendly underlays for the carpets. These underlays are madeof 100% recycled fibres and are also recyclable at end of life.

It is extremely important to
our Group that we partner withvendors and suppliers who
actively support sustainability
and act with social
responsibility, because theirproducts and services are an
extension of our services that
we provide to guests. As such,they should reflect our brand,values and guiding principles.
Vendors and suppliers that wework with are carefully selected
to ensure they comply withlocal regulations, match ourvalues and take sustainability
and social responsibility as
seriously as we do.
We are in the process of
upgrading and standardising
the responsible and sustainablepurchasing guidelines across
our portfolio in order to ensurethat all our suppliers, vendors
and business partners share
our values and are clear on our
expectations.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Cleaning Supplies andDetergent
Cleaning supplies anddetergents can have aconsiderable impact on
both the environment andhuman health through theiringredients, manufacturing
process, packaging, use
and disposal. Housekeeping
colleagues at our properties
are making strides toward useof biodegradable chemicals
over more traditional cleaners.
Through strategic relationships
with key suppliers focused onsustainability, we also aim touse more sustainable productsthat incorporate the bestalternatives available acrosseach of our properties.
To reduce impacts associatedwith our laundry operations,several properties utilise Ecolab
Aquanomic products that are lesschemically intensive and require
40% less energy and water use
when compared to traditional
laundry operations. The energy
and water efficiencies are due
in part to a streamlined wash
process and subsequent lower
water temperatures.
In the Americas region, we havebegun to partner with hospitality
procurement service company
Avendra to leverage their buying
power with key suppliers ofcleaners and consumables.
With a wide range of available
suppliers and products, Avendra
has been working with ourGroup over several years to
identify renewable, recyclable
and eco-friendly productsthat support our sustainableprocurement goals.

Engaging with Our Suppliers
Our experience has been that our suppliers and vendors are enthusiastic to partnerwith our Group, share common commitments to the highest levels of service andluxury, and listen to our feedback—particularly as it relates to our sustainability goals
and aspirations.
Beyond daily procurement processes, we also demonstrate our values and engage
with our suppliers through waste management and community initiatives. We include
suppliers and vendors in relevant community projects and are able to drive greater
positive impact as a result of their support.

Joining Forces with Local Suppliers to Help Make a Difference
Through its Supplier Appreciation Programme, Mandarin Oriental, Singapore proactively engages its
suppliers to participate in its waste diversion initiatives, which includes using reusable containers fordeliveries and donating basic necessities for the needy in partnership with the hotel. As a gesture ofappreciation and to get their buy-in for the hotel’s environmental initiatives, complimentary dining andhotel stay experiences are extended to supportive suppliers.
Mandarin Oriental, Singapore also collaborates with its Food and Beverage suppliers to bring awarenessand make contributions to its Ring Tabs Collection programme. Through this programme, used or
discarded can tabs are recycled to create prosthetic limbs for the disabled with the support of our
suppliers in addition to our colleagues and their friends and family. To date, the ring tab donations
contributed to the production of more than 100 prosthetic legs. Mandarin Oriental, Bangkok is also
engaged in a similar programme—collecting 72 kilograms of aluminium cans over the past two years to berecycled for nearly 20 prosthetic limbs.
Local suppliers and vendors are invited to join Mandarin Oriental, Singapore in donating food and basic
necessities to children from low-income families. Alongside our colleagues, suppliers and vendors havevolunteered their time to help to pack “goodie bags” for children in need. Mandarin Oriental, Kuala Lumpur
also invited suppliers in participate in its annual “Waste Not Want Not” charity sale, which raised nearly
US$1,500 in 2016.

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Protecting theWorld’s Bees
Bees are critical to food andvegetable production in addition
to protecting biodiversity.
Bees pollinate food crops that
supply approximately 90% of
the world’s nutrition. Honeybees perform about 80%
of all pollination worldwide,
which includes fruits, nuts andvegetables. A single bee colony
can pollinate 300 million flowers
each day15.
In recent years, population
declines for these crucial
pollinators have raised concerns
about the coinciding impacts on
our food supply and ecosystem
functions. At Mandarin Oriental,
we believe that this is a criticalissue to address, and as such,
we have begun to expand ourbeekeeping programme. Our
objective is for several of ourhotels to invest in employing
beekeepers, so that we canserve honey to guests—further
integrating sustainability into theguest experience.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Our Food and Beverage Operations
Our Group maintains very complex food and beverage operations with the highest
commitment to service and quality. Twelve of our restaurants have been honoured
with a total of 18 Michelin stars—more than any other hotel group in the world. Our
restaurants feature world-renowned chefs who are given freedom to develop menus
and space to express their culinary creativity whilst respecting our commitment to theenvironment and sustainability.
A common thread is a determination to “be the best” in the markets we serve,
and we believe that sustainably and ethically sourced food is not only a moral
responsibility. As such, we are sharpening our focus on key initiatives, which includes
support for fair trade sourcing, beekeeping, local producers and sustainable seafood.

Committing to Fair Trade Products
We have committed to switch at least one product per year to ensure that coffee,cocoa, tea and vanilla is purchased only from fair trade producers.
In 2016, we reviewed our tea programme Group-wide and reached out to our
suppliers for their assurance of fairly sourced and traded business practices. We havegarnered the assurance that the teas served at our hotels meet the standards set
forth. In 2017, we will be focusing next on fair trade coffee in our supply chain.

Partnerships with Local Farmers and Ranchers
Our chefs and sommeliers maintain close relationships with our local suppliers who
produce food for our guests. We know that a mutual interdependence exists, as weare a large customer to several local farmers and ranchers. We also write our menus
accordingly to align with the amount of protein and produce that these vendors areable to produce.

Onsite beekeeping is a bestpractice that is currently in placeat some of our hotels, including
Mandarin Oriental, Paris, whichfeatures a rooftop beehive. In
2017 and beyond, we expect toaccelerate our efforts to protect
the world’s bees through both
onsite and offsite beekeeping.

Support for Sustainable Seafood
We are sensitive to the impacts caused by overfishing and environmentally destructive
fishing methods. The Group has initiated a project to upgrade and standardise theresponsible and sustainable purchasing guidelines across our portfolio in order toensure that all our suppliers work with sustainable seafood and fish produce. Many
hotels work closely with local suppliers to ensure sustainable products are delivered
to our guests. For example, Mandarin Oriental, Geneva increased its commitment
to sustainable, local fish by adding to its menu local perch that is only available
seasonally due to practices implemented to avoid overfishing.

Challenges and Opportunities
With the recent commitments to Group-wide beekeeping, fair-trade sourcing andsustainability assessment procedures, we have begun to develop the blueprints for abolder vision for supply chain responsibility. The principles of supply chain responsibility
are innately complex, with specific challenges among product types, such as traceability
and impacts on ecosystem services, and within individual product categories.

Beehive at Mandarin Oriental, Paris

To source as responsibly and sustainably as possible, we aim to encourage
innovation and continue to socialise the importance when evaluating associated costs
or potential changes to the guest experience.

A Ban on Shark’s Fin
Since 2012, shark’s fin has
been banned from all Group
restaurants and banqueting
menus worldwide. Despite
the prominence of this dishfor ceremonial dining in Asia,
business impact from theban has been minimal. We
attribute the minimal economic
consequences to the supportof our guests who believe in
the need to preserve ocean
biodiversity.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Respecting Biodiversity
Goals and Commitments
To promote biodiversity
protection and prevent any
potential adverse impacts toprotected areas within our sphereof influence

Practices
We have engaged in a formal
process to assess biodiversity
risk and sponsor local initiatives
to support biodiversity

Biodiversity provides
society with vital goods
and services to sustain
life and encourage
growth. From food,water to climate,
the cohabitation of
ecosystem services
provides countless
benefits to our businessand the travel andtourism industry.

A Strategic Priority

Future Directions
Deepen how we factor
biodiversity into the design,
construction and operation of
our properties, and partner withguests and suppliers to protect
biodiversity

Biodiversity enables the continuous flow of ecosystem services, such as foodproduction, clean water and climate regulation, which are critical to local economies
but not fully valued using traditional financial methods. Whilst our Group’s properties
are predominantly located in urban areas, the products of biodiversity are experienced
throughout our hotels: from our restaurants to our spas and public areas.

Assessing Our Risks
To better understand potential negative natural and cultural impacts from a loss
in biodiversity, we have conducted a Group-wide biodiversity risk assessment forour current properties in addition to those that are planned or in development. The
assessment considered the International Union for Conservation of Nature (IUCN)
Protected Areas, Ramsar Wetlands of International Importance, UNESCO World
Heritage Sites, Biosphere Reserves recognised within the framework of UNESCO’s
Man and Biosphere Programme in addition to Natura 2000 sites. Endangered species
habitats were not included in this assessment due to the location of our properties.

Sharing Key Findings
The biodiversity risk assessment confirmed that no properties are located ininternationally-determined protected areas; however, nine of our properties are locatednear areas with biodiversity risk. Three of our properties—Mandarin Oriental, Prague,
Las Vegas and Washington DC—are located near IUCN protected areas. Additionally,
Mandarin Oriental, Milan is located near Valle del Ticino, an ecologically important
ecosystem where two key rivers meet, that is recognised as a biosphere reserve within
UNESCO’s Man and Biosphere Programme. Based on the findings, these four properties
will be subject to future evaluation, and we plan to engage with these properties’
Corporate Responsibility Committees to determine future actions and opportunities.

Mandarin Oriental, Tokyo
colleagues participate in the
Nihonbashi Bridge cleaning.

Incorporation into Planning and Operations
During the planning stage for new projects, the Group’s Technical Services
department is responsible for identifying whether planned projects are located insensitive areas and conducting detailed assessments as required. Any potential risks
and considerations are reviewed to inform execution during the construction stage.
Once our hotels are open and operational, we utilise our Safe, Sound and Sustainable
Programme to audit environmental practices. Our hotels also have been executing on
local opportunities to support the protection of biodiversity with a focus on ecosystem
protection and educational initiatives.

Caring for Our River Basins
Mandarin Oriental, Tokyo partners with the local community to help keep the
Nihonbashi River clean. This river runs behind the hotel, and many tourists enjoy boat
trips on the river. Colleagues take pride in doing their part to keep the river clean andhealthy, particularly when fish can be seen in small shoals, indicating the health of
the river system. Mandarin Oriental, Singapore has also adopted the marina reservoir
across from the hotel. Colleagues at Mandarin Oriental, Geneva and Paris helped toclean the Rhône and Seine rivers in 2016.

Using Biopori Holesto Improve Soil
We also take steps to protect
soil in consideration of its
relationship to the function ofwaterways and ecosystems. At
Mandarin Oriental, Jakarta, we
maintained 50 biopori holes,
which enable our food waste
to be used to improve soil
condition in the city. The biopori
holes are believed to support
proper absorption of rainwater
to minimise floods in the area.

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2016 S u s t a i n a b i l i t y R e p o r tComing Together to
Adopt a Panda
At Mandarin Oriental, hotels
across the Group have cometo together to adopt a living
panda in China through thenon-profit organisation, Pandas
International. To celebrate thiseffort, we provide a panda
stuffed toy as a welcome gift forchildren who stay at our hotels.

Mandarin Oriental Hotel Group
2016 Sustainability Report

Protecting the Coasts
For several years, Mandarin Oriental, Boston has participated in the International
Coastal Clean Up event at a nearby beach. Mandarin Oriental, Miami also participatedin the International Coastal Clean Up Event in 2016, collecting approximately 70
pounds of waste. Colleagues in Boston and Miami brought their families along tojoin them in their efforts. Colleagues at Mandarin Oriental, Sanya clean the nearby
beach on a weekly basis as part of its operating procedures. The Landmark Mandarin
Oriental, Hong Kong also participates in beach cleaning.

Bringing Forests into Focus
Mandarin Oriental, Kuala Lumpur’s Corporate Responsibility Committee organised
a colleague event at the Forest Reserve Institute of Malaysia for a colleague outing.
Nearly 50 colleagues participated in the event, which included an educational tour ofthe local water authorities that process raw water for distribution to homes around the
district, followed by a clean-up of the surrounding areas.
At Mandarin Oriental, Munich, a new initiative has been identified to purchasechocolates from a social enterprise. A tree will be planted or saved to commemorateeach box purchased by the hotel.

Promoting Education and AwarenessMandarin Oriental, Sanya engages guests on coral conservation through its Kid’s
Resort Passport programme. In 2016, a coral painting activity was introduced at
its MO Kids Camp to educate children on the importance of coral reef protection.
Additionally, colleagues at the hotel have also helped to coordinate the release of
turtles with Sea Turtle 911, a non-profit organisation focused on protecting turtles in
the South China Sea.

Looking Ahead
Biodiversity is an important topic, presenting numerous opportunities where we canadvance our efforts and programmes. Building upon the findings of our biodiversity
risk assessment, we aim to enhance our consideration of potential impacts throughall stages of its lifecycle: from planning to construction and operation.
Additionally, we aim to consider supply chain impacts as products derived frombiodiversity resources are consumed across all components of property construction,
operations and management. We also have the opportunity to promote sustainable
recreational activities and excursions that support conservation and help to build
awareness among guests.

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Championing
Community

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Championing Community
Goals and Commitments
To positively impact our local
communities and celebrate ourcultural heritage

Practices
We allocate our time, talents
and resources to projects thatenhance the well-being of thecommunities in which we operate
through projects that aid andempower those in need

Future Directions
Further inspire colleague
imagination to drive positivechange and monitor our progress
through the use of impact metrics

Championing Community
As a leader in luxury hospitality, Mandarin Oriental encourages each of its hotels
to discover impactful ways to interact with its communities. Through outreachprogrammes and non-profit partnerships, we call on our colleagues to develop
enduring, meaningful relationships with local organisations. We strongly believe that
acting responsibly involves not only our colleagues or the impact we have on theenvironment, but also positively enriches the communities we are a part of. As such, weparticipate in charitable causes ranging from cultural heritage preservation and poverty
eradication to food security and quality education.
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 connects ourwell-recognised symbol—the fan—with international celebrities who are frequent guests
at our hotels. Importantly, we thank all of our fans for their participation in our campaign
by making a donation from Mandarin Oriental to the charity of their choice. Since thecampaign launched in 2000, Mandarin Oriental has donated more than US$500,000 tovarious local and international charities that are supported by our philanthropic fans.

Cultural Heritage
Mandarin Oriental’s widely recognised 11-blade fan logo is a profoundly meaningful
symbol of the Group’s Asian heritage. In addition, each Mandarin Oriental hotel has
its own individual hallmark fan to represent the unique heritage of the destinationin which the property is located. Each hotel’s fan is sensitively and artfully
imbued with a strong sense of place to visually represent the cultural spirit ofeach location.

Mandarin Oriental, Tokyo Signature Fan
The distinctive fan for Mandarin Oriental, Tokyo was designed
by Ibasen, a venerable company founded in 1590 that had
the honour of serving as purveyor of fans to the Tokugawa
shogunate established by Tokugawa Ieyasu, the leader noted
for first unifying Japan. Ibasen created the special fan to herald
the Tokyo property’s opening in December 2005. Alluding
to the rich culture and history of the city, the fan depicts
scenes of the iconic Nihonbashi Bridge and the surrounding
neighbourhood.

Mandarin Oriental, Singapore Signature Fan
The signature fan of
Mandarin Oriental, Tokyo.

Mandarin Oriental, Singapore’s signature fan is an antique Mandarin design made circa
1860. The fan paper leaf depicts a court scene showcasing figures with painted faces
wearing clothes of applied silk, while the red lacquer sticks are painted in black with
figures set against a garden scene surrounded by scrolling flowers.

Mandarin Oriental
Fellowshipwith the Asian
Cultural Council
Founded in 1963, the non-profit Asian Cultural
Council (ACC) supports transformative cultural
exchange by awarding grants to Asian andAmerican artists, scholars and organisations forcreative work and study in the United Statesand Asia. Mandarin Oriental Hotel Group has
partnered with the ACC since 2005, whenit established a dedicated fellowship for thepreservation of indigenous arts, cultures andtraditions of Asia.
In 2015, the Mandarin Oriental Fellowship wasawarded to Indonesian dance artist Danang
Pamungkas. Trained in classical Javanese
dance since the age of six, Pamungkas isa graduate of the Indonesian Institute of
the Arts Surakarta in 2005. Throughout his
career, he danced with renowned Indonesianchoreographers and worked with importantinternational artists in Asia, including dancelegend Lin Hwai Min, founder and directorof Cloud Gate Dance Theatre in Taiwan.
Pamungkas’ training in Taiwan gave him a rareand valuable opportunity to experience Cloud Gate’s intricate marriage of traditional and contemporary influences. Since
returning home, Pamungkas has become one of the most sought-after dance artists in Indonesia.
Through his Mandarin Oriental Fellowship, Pamungkas participated in a five-week residency in the International
Choreographers Residency Program (ICRP) at the American Dance Festival in Durham, North Carolina. The prestigious
ICRP at the American Dance Festival gathers outstanding emerging choreographers from around the world and gives its
participants the opportunity to create new work, share their experiences with American Dance Festival students and present
their work at a public showing towards the end of the festival. From taking dance classes and interacting with his fellow ICRP
participants to giving workshops on Javanese classical dance, Pamungkas has had a rich and fulfilling experience at ADF.
Following the festival, he travelled to New York to explore new ideas about dance and movement with fellow artists in thecity’s rich performing arts environment.
‘I was so happy and honoured to have been part of the American Dance Festival (ADF). This was a big opportunity forme to open my mind and see art in the world. ADF was the first stop in my six-month fellowship, and I met a lot of artists
and shared my own experience. I took classes, saw shows, choreographed a new piece and discussed art with otherinternational artists in my programme every day. I am so thankful for the Mandarin Oriental Fellowship from the ACC which
has given me so much opportunity in my career’.
Highlighting the collaborative nature and deep connections forged through the fellowship experience, several ACC fellows
performed together at the Tenri Cultural Institute on 6 September 2016. Pamungkas showcased his original choreography
accompanied by shamisen player Keigo Ayusawa performing Fireflies from the suite Kasukani [Faintly] 2013 composed by
Yuji Takahashi.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Mandarin Oriental, Boston Provides
Basic School Supplies for Those in Need

Promoting Quality Education
Mandarin Oriental firmly believes that robust educational opportunities are critical for ensuring long-term cultural vitality. Our hotelcolleagues make meaningful commitments to promote quality education and enhanced learning opportunities within our local
communities. To illustrate, we are proud to share a few of these success stories.

Mandarin Oriental, Las Vegas
Helps Lead the Fight Against Bullying

Mandarin Oriental, Taipei Launches
Two-Pronged Effort for Remote Schools

In 2016, Mandarin Oriental, Las Vegas chose the Public
Education Foundation as its ‘Fantastic Match’ charity ofchoice. ‘Fantastic Match’ is a programme that matchesannual funds up to US$10,000 raised by Mandarin
Oriental colleagues.

For its 2016 campaign, Mandarin Oriental, Boston
colleagues sought to focus their ‘Fantastic Match’ efforts
on a local charity that would have a significant impact onchildren living in low income and homeless situations in
the community. Throughout the months of September
and October, 24 hotel colleagues volunteered their time
to support Cradles to Crayons, an organisation that helps
disadvantaged children ranging from birth through age 12.
Colleagues met at the organisation’s headquarters, where
they spent their time packing school supplies, books andclothing to be provided at no cost to children in need.
Together with the Group’s matching grant, colleagues
donated US$8,000.

In December, Mandarin Oriental, Taipei launched a ‘Love Share’
panda charity event, by selling 200 stuffed Mandarin Oriental
pandas and handmade cookies, to raise money for school
equipment for the Shan-Mei Elementary School in the remotemountainous area of Alishan County. Colleagues donated
US$6,500 from the event and were warmly received by the local
Taiwanese aboriginal students wearing traditional costumes.

Established in 1991 as an independent 501(c)(3)non-profit Nevada corporation, the Public Education
Foundation defines possibilities and offers solutions to thechallenges of educating a growing and diverse Southern
Nevada population.

To continue the ‘Love Share’ Panda initiative, a team ofhousekeeping colleagues donated their time to design andtailor-make exclusive Christmas outfits for Mandarin Oriental’s
stuffed panda mascots. Launched together with a Christmas
tree lighting ceremony, 200 limited-edition pandas were offeredwith special handmade Christmas cookies by the hotel’spastry chef for US$40 each. The proceeds helped purchasemusical instruments for Taiwanese aboriginal children at Qin-Ai
Elementary School in the remote Nantou region.

In October, 50 colleagues held a trivia night at the hotel toraise money in support of Public Education Foundation’s
anti-bullying campaign, which, among other initiatives,
funds motivational speakers and provides sensitivity
training for teachers. Colleagues could purchase a seator a table at the event. Encouraged by the success of theevent, which raised a total of US$6,000, the hotel plans tohold a second annual charitable trivia night in 2017.

Mandarin Oriental, Washington DC
Funds Computer Needs for Public Education
In October, Mandarin Oriental, Washington DC colleagues andguests laced their running shoes for the hotel’s sixth annual
FANtastic March 5K fundraiser to support the purchase of laptop
computer carts for students at Amidon-Bowen Elementary.
The public elementary school serves 345 students from grades
pre-kindergarten through five in DC’s Southwest Waterfront
community. In 2012, the hotel’s charitable efforts raised over
US$40,000 to help rebuild the school’s library.
The run began on the hotel’s front drive,led by ‘Teddy
Roosevelt’, one of the Racing President mascots from The
Washington Nationals baseball club. The route carried runners to
the U.S. Capitol Building and around the Washington Monument
before returning them to the hotel for a celebratory breakfast
and silent auction. With the Group’s matching grant, colleagues
raised nearly US$40,000 for Amidon-Bowen Elementary’s
computing needs.

Mandarin Oriental, Bangkok Honours
the Legacy of the Late King by
Supporting Quality of Life Initiatives
On 12 November, more than 800 colleagues, friends andfamilies gathered at Lumpini Park in remembrance of His
Majesty King Bhumibol Adulyadej. As a revered monarch,
His Majesty tirelessly led the Kingdom for 70 years. His
unwavering devotion to improve the standard of living for
all Thai people establishes a standard Mandarin Oriental,
Bangkok strives to emulate.
FANtastic Fundraiser bore testament to the hotel’scommitment to nurture local communities. Since theprogramme’s inception in 2013, the property has raised morethan THB5 million for non-profit organisations that help thoseless fortunate, including underprivileged schools. Throughout
the year, Mandarin Oriental, Bangkok supported Phra Dabos
Foundation, under the Royal Patronage of His Majesty, toprovide occupational training for the poor, and Lerdsin General
Hospital Foundation. It also funded scholarships at King
Mongkut’s University of Technology, as well as the property’s
own Oriental Hotel Apprenticeship Programme (OHAP).

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Supporting Local Orphanages

Helping The Fight Against Hunger

As a global company with a social conscience, we recognise that the plight of orphans is a worldwide issue that demands attention.
We have acted both corporately and as individual properties to address the issue in ways to meet the immediate needs of orphans,
as well as establishing a stable foundation to help with their future happiness and wellbeing.

With one in nine people among the world’s population suffering from chronic undernourishment, Mandarin Oriental hotels continue
in their diligent efforts to provide meaningful solutions to help end global hunger.

Mandarin Oriental, Kuala Lumpur
Fills the Gap after Fire Damages
Kirtarsh Home

Mandarin Oriental’s Food & Beverage Division Pledges Multi-Year Support for Bangkok Orphans

Upon learning that Kirtarsh Home was heavily
damaged by a catastrophic fire in December 2015,
Mandarin Oriental, Kuala Lumpur assisted bycontributing daily food necessities over a periodof six months. At the time of the fire, the home
housed 60 underprivileged children and elderly
residents suffering from mental challenges andother disabilities. However, after the fire, caregivers
and residents were left to relocate to various areas
whilst damages to the house were assessed withauthorities. Although the public provided tremendous
support after the fire, the home struggled tocollect adequate funds to rebuild the residence
whilst keeping the costs for rent, daily meals andhealthcare as low as possible. The hotel helped
offset those expenses through its food contributions.

Following the Group’s 2015 Global Food and Beverage Conference at Mandarin Oriental, Bangkok, the F&B division endeavoured
to leave a lasting social imprint while furthering its relationship with the children of a local orphanage, Baan Nokkamin Foundation.
All hotels collectively vowed to raise a minimum of US$500 each per year for the orphanage until the next F&B conference
scheduled for 2019. Fundraising activities have ranged from bake sales at Mandarin Oriental, Hong Kong to GBP1 donation fromevery purchase at The Rosebery Lounge at Mandarin Oriental Hyde Park, London. In 2016 alone, more than US$16,000 raised
from the combined efforts was presented to Baan Nokkamin during the December holiday season.

Mandarin Oriental, Munich Celebrates
Oktoberfest With Local Children
In October, 2016 Mandarin Oriental, Munich organised
an Oktoberfest party at a local orphanage for nearly 130
children between the ages of one and 18. Colleagues
decorated gingerbread hearts, tied floral wreaths andjoined the children in games. A Bavarian buffet feast
offered delights such as pork roast with dumpling,
Obadzda with pretzel, cake pops and a chocolate
fountain. Various Munich-based companies joined thehotel in sponsoring raffle prizes, entertainment anddecorations. Donated raffle items included a summer
camp with Phillip Lahm, a jersey of FC Bayern Munich
player Joshua Kimmich and a birthday party at Munich
Airport. In 2017, the hotel plans to provide a number ofteenagers at the orphanage with internships at the hotel.

Mandarin Oriental, Tokyo
Hosts Tea Time for YouthIn November, Mandarin Oriental, Tokyo visited a care homein Tokyo, ‘Kiitos’, to spend quality time with 20 children
and young adults ranging in age from 10 to 27 years who
are facing dire family challenges. Hotel colleagues, led
by the pastry chef, held a cake-decorating session thatallowed everyone to observe a professional demonstration
followed by hands-on participation to gain real experience.
Once all the cakes were decorated, hotel colleagues
served tea and coffee, paired with the fresh confectionary
creations, around one large family-style table for theenjoyment of all.

Mandarin Oriental, New York Joins Forces with
Non-Profit to Fight Hunger in the City
In 2016, Mandarin Oriental, New York participated in various mobile
markets and held internal fundraising events in support of City Harvest,
a non-profit that has operated to provide food rescue, distribution andeducation throughout the city since 1982. During the course of theyear, New York colleagues logged more than 200 volunteer hours andraised US$25,000 with Mandarin Oriental’s Fantastic Match grant. On
12 April the hotel sponsored the annual ‘Evening of Practical Magic’gala, for which Master Sommelier and Wine Director Laura Williamson
served as the ‘wine pairings selector’, and the 22nd annual ‘Bid
Against Hunger’ event on 6 October.

Mandarin Oriental, Barcelona Banker’s Bar
Funds Breakfast for Children
During September, Mandarin Oriental, Barcelona’s Banker’s Bar was
made-over to recreate PDT (Please Don’t Tell), the legendary New York
speakeasy named World’s Best Bar. Some of the world’s most recognised
chefs (Joan Roca, Carme Ruscalleda, Ángel León, Gastón Acurio andAlbert Adrià) created gourmet hot dogs for the event. US$2 from thesale of each hot dog was donated to la Caixa Foundation, raising a
total of US$3,600 used to provide healthy breakfasts for 2,800 needy
children. For more than a century, la Caixa Foundation has managed theconsiderable charitable and social commitments of CriteriaCaixa, Europe’s
foremost financial and business holding company.

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Mandarin Oriental Hotel Group
2016 Sustainability Report

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

Mandarin Oriental,
Singapore
Mandarin Oriental,
PragueMandarin Oriental, Singapore
scheduled two events to support
REACH Community Society
Services, which organises
activities for children and youth.
On 6 September, Executive Pastry
Chef Ming hosted 17 children
through REACH for ‘Bakerholics’,
where he taught skills ranging
from piping to glazing the treats
created with their own hands from
ingredients donated by the hotel.

Mandarin Oriental, Prague donated
10 per cent of proceeds from thesale of its local treatment, Linden
Embrace, to Rakovina Vec Verejna,
a local foundation that funds
cancer research. The hotel provides
additional support throughout theyear with spa voucher donations
for fundraising events and hosts
an annual event before Christmas.
In 2016 the event launched afairy-tale book written by Czech
celebrities with revenue from thesales donated for cancer research.

In September, 15 Mandarin Oriental,
Singapore colleagues teamed with 15
members of REACH for a Dragon Boat
race. The hotel prepared pre-race bento
boxes as well as post-race goodie
bags. The hotel posted snapshots ofthe day on social media to increaseawareness of the outreach programme.

Mandarin Oriental,
Atlanta
In support of ‘30 Days of Teal’,Mandarin Oriental, Atlanta introduced
a variety of delightful promotionsin November to benefit the Georgia
Ovarian Cancer Alliance. From tempting
desserts to relaxing spa treatments, thehotel offered unique ways to support
the cause by donating 20 per cent ofproceeds from all treatments, products
and meals sold. With the Group’s
matching grant, colleagues donated
US$1,000 to the Georgia Ovarian
Cancer Alliance.

Mandarin Oriental,
Milan
Mandarin Oriental, Milan launched aseries of donation initiatives in 2016
following the August earthquake inCentral Italy. Mandarin Bar & Bistrot
added the ‘Spaghetti all’Amatriciana’ toits menu and donated EUR2 for every
dish served to fund reconstructionin the area. The hotel also donated
EUR1,000 to ‘Croce Rossa Italiana’(the Italian Red Cross), one of the
primary organisations supporting those
directly affected by the earthquakes.

Mandarin Oriental
Pudong, Shanghai
Last Christmas season, Mandarin
Oriental Pudong, Shanghai continued
its support of Mifan Mama throughthe hotel’s Christmas tree lighting.
Guests could choose to contributeto the ‘Independent Wheelchair’project to purchase wheelchairs
and wheelchair parts for disabledchildren. Guests selected an MO
Fan Card from the Christmas tree,
each listing a specific wheelchairpart with its cost, then wrapped
the card along with the donation.

Mandarin Oriental,
Taipei
In January, colleagues from The Spa
at Mandarin Oriental, Taipei visitedHaoran Senior Citizens’ Home fora special visit with residents. The
professional aromatherapists offeredrelaxing massage treatments to sharethe joy of Chinese New Year. Operated
by the Department of Social Welfare of
Taipei City, the residence, also known
as Haoran Nursing Home, is one offew public organisations in the city
providing nursing service for the elderly.

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Appendices

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Total Workforce

TurnoverTOTAL WORKFORCE

MALE

%

FEMALE%TOTAL

NEW HIRES

MALE%

FEMALE%TOTAL% OF TOTAL

By Region

6,771

54%

5,714

46%

12,485%Hires by Age Group

2,757

53%

2,428

47%

5,185

41.5%

1,598

50%

1,627

50%

3,225

62.2%
32.9%

Asia

3,870

54%

3,258

46%

7,128

57%

Under 30

Europe

1,449

59%

1,108

41%

2,467

20%

30 to 50

1,017

60%

690

40%

1,707

21%

Over 50

142

56%

111

44%

253

4.9%

2%

Hires by Region

2,757

53%

2,695

46%

5,895

45.9%

The Americas

1,332

52%

1,247

48%

2,579

Corporate

120

39%

191

61%

311

By Employment Contract

6,771

54%

5,714

46%

12,485

Asia

1,343

51%

1,278

49%

2,621

50.5%

1,072

59%

745

41%

1,817

35.0%
13.2%

Full-time

6,428

55%

5,206

45%

11,63493%

EuropePart-time

102

33%

208

67%

310

2%

The Americas

320

47%

366

53%

686

4%

Corporate

22

36%

39

64%

61

1.2%

TOTAL TURNOVER

MALE

%

FEMALE%TOTAL% OF TOTAL

61%

Separations by Age Group

2,540

54%

2,200

46%

4,740

30%

Under 30

1,252

50%

1,247

50%

2,499

52.7%

30 to 50

1,024

58%

729

42%

1,753

37.0%
10.3%

Casual

241

45%

300

55%

541

By Colleague Category

6,771

54%

5,714

46%

12,485

Line Staff

4,092

54%

3,494

46%

7,586

Management

2,086

56%

1,614

44%

3,700

Executive

192

63%

114

37%

306

2%

Other (Casual/Trainee)

401

45%

492

55%

893

7%

By Age Group

6,771

54%

5,714

46%

12,485

Under 30

2,251

50%

2,223

50%

4,474

36%

30 to 50

3,482

57%

2,652

43%

6,134

49%

Over 50

1,038

55%

839

45%

1,877

15%

EXECUTIVE TEAM & BOARD OF DIRECTORS

MALE

%

FEMALE

%

TOTAL

%

By Age Group
Under 30

-

-

-

-

-

-

30 to 50

1

100%

-

-

1

7.7%

Over 50

9

75%

3

25%

12

92.3%

264

54%

224

46%

488

Separations by Region

2,540

54%

2,200

46%

4,740

Asia

1,132

52%

1,065

48%

2,197

46.4%

Europe

1,064

58%

757

42%

1,821

38.4%

The Americas

320

49%

333

51%

653

13.8%

Corporate

24

35%

45

65%

69

1.5%

Turnover Rate by Age Group

37.5%

38.5%

38%

Under 30

55.6%

56.1%

55.9%

30 to 50

29.4%

27.5%

28.6%

Over 50

25.4%

26.7%

26.0%

Asia

29.3%

32.7%

30.8%

Europe

73.4%

74.4%

73.8%

The Americas

24.0%

26.7%

25.3%

Corporate

20.0%

23.6%

22.2%

Turnover Rate by Region

By Nationality
EuropeOver 50

8

80%

2

20%

10

76.9%

North America

1

50%

1

50%

2

15.4%

Oceania

1

100%

0

0%

1

7.7%

Health & Safety Incidents: Audit Results
PERFORMANCE INDICATORUNITREGION

2010

2011

2012

89.3

90.3

89.8

ALL

2.73

2.90

2.46

2013

2014 1

2015

2016

88.3

90.1

90.8

89.3

3.01

2.32

6.66

7.17

Safe Sound & Sustainable
Audit Results

Lost Time Incident Rate

Lost Time Incident Severity Rate

% Compliance

Lost time Incidents /100 employees

Severity ofincidents /100 employees

Asia

2.86

3.04

2.40

2.71

2.35

2.85

3.03

Europe

2.27

3.91

4.58

4.20

3.56

14.30

10.58

The Americas

2.56

1.90

1.16

3.06

1.44

13.84

17.95

ALL

19.49

24.27

24.59

27.30

25.07

24.29

25.73

Asia

17.62

23.54

23.05

26.89

22.69

19.84

18.54

Europe

29.18

36.37

42.49

40.42

31.98

33.12

46.62

The Americas

20.40

20.57

16.96

19.11

27.52

32.73

25.08

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Mandarin Oriental Hotel Group
2016 Sustainability Report

Environmental Performance Summary
PERFORMANCE INDICATORGRI G4 Content Index

UNIT

2013

2014

2015

2016

GJ

1,199,172

1,332,327

1,449,334

1,463,682

MMBTU

1,136,596

1,262,803

1,373,704

1,387,302

EnergyAbsolute Energy Consumption(Actual)Absolute Energy Consumption(Baseline)
Energy Intensity(Actual)

To facilitate stakeholders in understanding and benchmarking our corporate responsibility performance, our reporting follows the Global Reporting Initiative
G4 disclosure framework, which is an internationally recognised set of indicators for economic, environmental and social aspects of business performance.
GRI guidelines help companies in selecting material content and key performance indicators. For additional information, please visit www.globalreporting.org.
INDICATORDESCRIPTIONLOCATION

I. General Standard Disclosures

GJ

1,336,540

1,449,528

1,644,669

1,672,601

MMBTU

1,266,795

1,373,887

1,558,846

1,585,320

MJ / m2

1.700

1.632

1.613

1.561

G4-1

Strategy and Analysis
Statement from the most senior decision-maker about therelevance of sustainability and organisation’s strategy

Message From The CEO (p. 4)

MMBTU / ft2

150

144

142

137

Organisational Profile

Scope 1

Percentage

32%

29%

31%

30%

G4-3

Name of the organisation

About The Mandarin Oriental Hotel Group (p. 3)

Scope 2

Percentage

68%

71%

69%

70%

G4-4

Primary brands, products, and services

About The Mandarin Oriental Hotel Group (p. 3)

G4-5

Location of the organisation’s headquarters

About The Mandarin Oriental Hotel Group (p. 3)

G4-6

Number of countries where the organisation operates

About The Mandarin Oriental Hotel Group (p. 3)

G4-7

Nature of ownership and legal form

About The Mandarin Oriental Hotel Group (p. 3)

G4-8Markets served, and types of customers and beneficiaries

About The Mandarin Oriental Hotel Group (p. 3)

Emission
tons (metric) of CO2-e

136,735

tons (US) of CO2-e

150,723

176,230

191,040

191,527

tons (metric) of CO2-e

155,631

181,867

202,893

202,050

tons (US) of CO2-e

171,552

200,471

223,649

222,720

G4-9

Scale of the organisation

About The Mandarin Oriental Hotel Group (p. 3)
Scope of 2016 Operations (p. 6)

kg CO2-e / m2

194

196

193

185

G4-10

Total number of employees by employment contract and gender

Appendix: Total Workforce (p. 88)

lb CO2-e / ft2

52

61

66

66

G4-11

Percentage of total employees covered bycollective bargaining agreements.

Data is not consolidated at the Group level for the reporting period.

Scope 1

Percentage

15%

13%

13%

13%

G4-12

Description of supply chain

Sourcing Responsibly (p. 66)

Scope 2

Percentage

85%

87%

87%

87%

G4-13

Significant changes during the reporting period regarding theorganisation’s size, structure, ownership, or its supply chain

There were no significant changes during the reporting period.

3,115,732

2,999,818

3,233,580

3,301,374

G4-14

823

793

854

872

Whether and how the precautionary approach or principle isaddressed by the organisation.

Goals, Commitments and Practices (p. 6)
Safe, Sound and Sustainable Programme (pp. 14–15)
Long-Term Outlook (p. 18)

3,208,705

3,234,307

3,410,695

2,329,863

G4-15

None during the reporting period.

million gallons (US)

848

855

901

616

Externally developed economic, environmental
and social charters, principles, or other initiatives towhich the organisation subscribes or which it endorses.

litres / guest night

983

902

955

979

G4-16

Memberships in associations andnational/international advocacy organisations

Stakeholder Engagement (p. 22)

gallon (US) / guest night

260

238

252

259

Identified Material Aspects and Boundaries

Absolute Emissions(Actual)Absolute Emissions(Baseline)
Emission Intensity(Actual)159,875

173,310

173,752

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

Water Intensity

m3
million gallons (US)
m

3

Waste
Total Waste

Diverted Waste

Waste Landfill Intensity
Diversion Rate

kilograms

9,635

12,59914,447

15,743pounds

21,242

27,777

31,84934,707

kilograms

2,286

3,742

4,419

5,363

pounds

5,039

8,250

9,742

11,823kilograms / guest night

3.46

3.56

3.58

3.66

pounds / guest night

7.63

7.84

7.89

8.07

percent

24

30

31

34

m2

705,227

816,413898,305

937,935ft2

7,590,998

8,787,787

9,669,270

10,095,843

G4-17

All entities included in the organisation’s consolidated
financial statements or equivalent documents

2016 Annual Report (“Principal Subsidiaries, Associates,
Joint Ventures and Managed Hotels”, p. 76)

G4-18

Process for defining the report content and the Aspect Boundaries

Materiality Assessment (p. 24)

G4-19

All the material aspects identified in
the process for defining report content.

Materiality Assessment (p. 24)

G4-20

The aspect boundary for each material aspect
within the organisation and whether the aspect ismaterial for all entities within the organisation

Materiality Assessment (p. 24)

G4-21

Whether the aspect boundary for each material
aspect is outside the organisation

Materiality Assessment (p. 24)

G4-22

Effect of any restatements of information provided inprevious reports, and the reasons for such restatements.

None during the reporting period.

G4-23

Significant changes from previous reporting
periods in the Scope and Aspect Boundaries.

None during the reporting period.

Operational Data
Total Air Conditioned Area

Stakeholder Engagement

Mandarin Oriental, Sanya and Mandarin Oriental, Bodrum have been excluded from water intensity measures. In general, properties have been excluded if thedata is distorted by major changes or abnormally high values (where, for example, irrigation is included).

G4-24

List of stakeholder groups engaged by the organisation.

Stakeholder Engagement (p. 22)

Mandarin Oriental, Bodrum have been excluded from the waste figures due to incomplete data.

G4-25

Basis for identification and selection of
stakeholders with whom to engage.

Stakeholder Engagement (p. 22)

Mandarin Oriental, Marrakech and Hotel Ritz, Madrid have been excluded from all environmental data.

G4-26

Organisation’s approach to stakeholder engagement

Stakeholder Engagement (p. 22)

G4-27

Key topics and concerns that have been raised
through stakeholder engagement, and how the organisation
has responded to those key topics and concerns

Stakeholder Engagement (p. 22)
Materiality Assessment (p. 24)

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INDICATOR

Mandarin Oriental Hotel Group
2016 Sustainability Report

DESCRIPTIONLOCATION

Reporting period for information provided.

Our reporting period is calendar year 2016.

G4-29

Date of most recent previous report2015 Sustainability Report

G4-30

Reporting cycle

Annual

G4-31

Contact point for questions regarding the report or its contents.

sustainability@mohg.com

G4-32

GRI Index with “in accordance” option chosen
and references to External Assurance Reports

We have self-reported in accordance with theG4 framework at the “Core” level.

Organisation’s policy and current practice withregard to seeking external assurance for the report

We did not seek external assurance
during the reporting period.

G4-33

Employment

Occupational
Healthand Safety

Governance
G4-34

Governance structure of the organisation, including committeesof the highest governance body and those responsible fordecision-making on economic, environmental and social impacts.

Management and Governance (pp. 12–13)(Additional information on our Directors can be found in the“Investors” section of our corporate website.

Ethics and Integrity
G4-56

Describe the organisation’s values, principles, standards and normsof behavior such as codes of conduct and codes of ethics.

Training and
Education

Guiding Principles and Corporate Responsibility Policy (pp. 10–11)
Responsible Operating Practices (p. 16)

I I . S P E C I F I C S TANDARD DISCLO SURES
1. Economic

Economic
Performance

DMA

Disclosure on management approach2016 Annual Report

G4-EC1

Direct economic value
generated and distributed2016 Annual Report (Financial Statements, p. 24)

G4-EC2Financial implications and other risks
and opportunities for the organisation’s
activities due to climate changeEnterprise Risk Management (p. 17)
Long-Term Outlook (p. 18)

G4-EC3Coverage of the organisation’s
defined benefit plan obligations

2016 Annual Report (Pension Obligations, p. 59)

Water

Biodiversity

EmissionsEffluents andWaste
Supplier
Environmental
Assessment

LOCATION

DMA

Disclosure on management approach

Reducing Energy and Emissions (pp. 50–55)

G4-EN3

Energy consumption
within the organisation

Our Performance: Energy Consumption (p. 54)
Appendix: Environmental Performance Summary (p. 90)

G4-EN5

Energy intensity

Our Performance: Energy Consumption (p. 54)
Appendix: Environmental Performance Summary (p. 90)

DMA

Disclosure on management approach

Conserving Water (pp. 56–59)

G4-EN8

Total water withdrawal by source

Our Performance: Water Consumption (p. 59)
Appendix: Environmental Performance Summary (p. 90)

DMA

Disclosure on management approach

Respecting Biodiversity (pp. 72–75)

G4-EN11

Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity
value outside protected areas

Respecting Biodiversity (pp. 72–75)

DMA

Disclosure on management approach

Reducing Energy and Emissions (pp. 50–55)

G4-EN15

Direct greenhouse gas (GHG)
emissions (Scope 1)

Appendix: Environmental Performance Summary (p. 90)

G4-EN16

Energy indirect greenhouse gas(GHG) emissions (Scope 2)

Appendix: Environmental Performance Summary (p. 90)

G4-EN18

Greenhouse gas (GHG)
emissions intensity

Our Performance: Greenhouse Gas Emissions (p. 55)
Appendix: Environmental Performance Summary (p. 90)

DMA

Disclosure on management approach

Managing Waste (pp. 60–65)

G4-EN23

Total weight of waste bytype and disposal method

Our Performance: Waste-To-Landfill Diversion (p. 64)
Appendix: Environmental Performance Summary (p. 90)

DMA

Disclosure on management approach

Sourcing Responsibly (pp. 66–71)

G4-EN32

Percentage of new suppliers that werescreened using environmental criteria

Diversityand Equal
Opportunity

Supplier
Assessmentfor Labour
Practices

DMA

Disclosure on management approach

Engaging Our Colleagues (pp. 38–41)

G4-LA1

Employee turnover

Our Performance: Colleague Engagement and Turnover (p. 39)
Appendix: Turnover (p. 89)

DMA

Disclosure on management approach

Safe, Sound and Sustainable Programme (pp. 14–15)
Committing to Health, Safety and Wellness (pp. 32, 36–37)

G4-LA6

Type of injury and rates of injury,
occupational diseases, lost days, andabsenteeism, and total number of workrelated fatalities, by region and by gender

Our Performance: Occupational Health and Safety (p. 32)
Appendix: Health & Safety Incidents: Audit Results (p. 89)

DMA

Disclosure on management approach

Investing in Training and Education (pp. 42–45)

G4-LA10Programs for skills management andlifelong learning that support the continued
employability of employees and assist
them in managing career endings

Investing in Training and Education (pp. 42–45)

G4-LA11Percentage of employees receiving
regular performance and careerdevelopment reviews, by genderand by employee category

Partnering with Colleagues to Chart Their Careers (p. 42)

DMA

Disclosure on management approach

Promoting Diversity and Inclusion (pp. 46–47)

G4-LA12Composition of governance bodies andbreakdown of employees per employee
category according to gender, age group,
minority group membership, and otherindicators of diversity

Appendix: Total Workforce (p. 88)

DMA

Disclosure on management approach

Respecting and Protecting Human Rights (p. 16)
Sourcing Responsibly (pp. 66–71)

G4-LA14

Percentage of new suppliers that werescreened using labour practices criteria

Environmental and Social Screening (p. 67)

DMA

Disclosure on management approach

Respecting and Protecting Human Rights (p. 16)
Sourcing Responsibly (pp. 66-71)

G4-HR10Percentage of new suppliers that werescreened using human rights criteria

Environmental and Social Screening (p. 67)

DMA

Disclosure on management approach

Championing Community (pp. 78–87)

G4-SO1

Percentage of operations
with implemented local community
engagement, impact assessments,
and development programs

All operations had local community
engagement programs during the reporting period.

DMA

Disclosure on management approach

Responsible Operating Practices (pp. 16–17)

G4-SO4

Communication and training on
anti-corruption policies and proceduresManaging Anti-Corruption Risk (p. 17)

DMA

Disclosure on management approach

Safe, Sound and Sustainable Programme (pp. 14–15)
Committing to Health, Safety and Wellness (pp. 32–35)

G4-PR1

Percentage of significant product andservice categories for which health andsafety impacts are assessed
for improvement

Safe, Sound and Sustainable Programme (pp. 14–15)

DMA

Disclosure on management approach

Delighting Our Guests (pp. 28–31)

G4-PR5Results of surveys measuring
customer satisfaction

Our Performance: Guest Satisfaction (p. 30)

DMA

Disclosure on management approach

Responding to Emerging Information Protection Challenges (p. 17)

G4-PR8

Total number of substantiated complaints
regarding breaches of customer privacy
and losses of customer data

Responding to Emerging Information Protection Challenges (p. 17)

4. Human Rights

2. Environmental Stewardship

EnergyDESCRIPTION

3. Labour Practices and Decent Work

Report Profile
G4-28

INDICATOR

Environmental and Social Screening (p. 67)

Supplier
Human Rights
Assessment
5. Society

Local
Communities

AntiCorruption

6. Product Responsibility

Customer
Health and
SafetyProduct
and Service
Labeling

CustomerPrivacy

94
Ma nd a r in Or ie n t a l H o t e l G r o u p
2016 S u s t a in a b i l i t y R e p o r tEndnotes1	World Travel & Tourism Council: Global Economic Impact & Issues 2017: https://www.wttc.org/-/media/files/reports/economicimpact-research/2017-documents/global-economic-impact-and-issues-2017.pdf
2

World Economic Forum “Global Risks 2017” 12th Edition, 2017. http://www3.weforum.org/docs/GRR17_Report_web.pdf

3World Resources Institute, http://www.wri.org/our-work/topics/water

4

UN Sustainable Development Goals: https://sustainabledevelopment.un.org/sdgs5

United States Bureau of Labor Statistics “Work-related Fatalities, Injuries, and Illnesses”, 2015. www.bls.gov/iag/tgs/iag72.htm

6	In 2016, we excluded Mandarin Oriental, Marrakech and Hotel Ritz, Madrid from our energy and emissions boundary because
they are new to our portfolio and full-year, credible data sets are not available.
7	Reductions—in energy use, greenhouse gas emissions and water use—are calculated as the difference between the absoluteperformance 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 numberof 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).
8	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, chilled water and heatedwater/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 the International Energy Agency. Electricity
emission factors for US properties have been based on the eGrid of the US Environmental Protection Agency (EPA). Chilledwater 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 and a 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 toemissions using Energy Information Administration, Voluntary Reporting of Greenhouse Gases, Appendix N.
9	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 fromstationary combinations, such as boilers, have been based on the Greenhouse Gas Protocol Cross Section Tools.
10	U.S. Environmental Protection Agency: http://www.epa.gov/cleanenergy/energy-resources/refs.html
11	Circle of Blue: http://www.circleofblue.org/waterpricing/
12	WRI Aqueduct: http://www.wri.org/our-work/project/aqueduct
13	Mandarin Oriental, Sanya and Mandarin Oriental, Bodrum are included in absolute water consumption figures, but not included
in water intensity figures due to incompatibility in the data. Mandarin Oriental, Marrakech and Hotel Ritz, Madrid are excluded
from our boundary because they are new to our portfolio and full-year, credible data sets are not available.
14	Mandarin Oriental, Bodrum, Mandarin Oriental, Marrakech and Hotel Ritz, Madrid have been excluded from our waste
boundary due to incomplete data.
15 Greenpeace’s Save the Bees website: http://www.greenpeace.org/usa/sustainable-agriculture/save-the-bees/

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

mandarinoriental.com