M ANDARIN ORI E NTAL HOT E L GROUP

2 0 12SU S TA I N A B I L I TYREPORTMandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

Table of Contents

IN TR O D U C TIO N
About Mandarin Oriental Hotel Group
Message from the CEO
About this Report
Acting with Responsibility
Commitments and Practices

2
3
4
5
6
8

D EL IV E R IN G E X C EL L EN C E
Delighting our Guests
Employer of Choice
Colleague Development
Safe, Sound & Sustainable
Sourcing Responsibly: Food and Beverage
Health and Wellness

9
11
12
16
20
22
26

A D VA N C IN G S U S TA IN A B IL ITY
Reducing Energy Consumption
Reducing Emissions
Reducing Waste
Reducing Water Consumption

29
32
35
38
43

C H A MP IO N IN G C O MMU N ITY
Cultural Heritage
Community Programmes

45
46
50

FU TU R E D IR E C TIO N S

56

A P P E N D IC E S
Sustainability Awards and Certifications
GRI Index
Performance Data
Footnotes
Assurance Documentation

57
57
58
60
65
66

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Mandarin Oriental, Bangkok

Mandarin Oriental, Hong Kong

The Landmark Mandarin Oriental, Hong Kong

The Excelsior, Hong Kong

Mandarin Oriental, Jakarta

Mandarin Oriental, Kuala Lumpur

Mandarin Oriental, Macau

Grand Lapa, Macau

Mandarin Oriental, Manila

Mandarin Oriental, Sanya

Mandarin Oriental, Singapore

Mandarin Oriental, Tokyo

Mandarin Oriental, Atlanta

Elbow Beach, Bermuda

Mandarin Oriental, Boston

Mandarin Oriental, Las Vegas

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, San Francisco

Mandarin Oriental, Washington D.C.

Mandarin Oriental, Barcelona

Mandarin Oriental, Geneva

Mandarin Oriental Hyde Park, London

Mandarin Oriental, Munich

The Group now operates,or has under development,
45 hotels in 27 countries
19 in Asia
12 in The Americas
14 in Europe, Middle East and North Africa
Mandarin Oriental, Paris

Mandarin Oriental, Prague

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Mandarin Oriental Hotel Group is an international hotel investment andmanagement group with luxury hotels, resorts and residences in highly
sought-after destinations worldwide. The Group now operates, or has
under development, 45 hotels representing over 11,000 rooms in 27
countries, with 19 hotels in Asia, 12 in the Americas and 14 in Europe,
Middle East and North Africa. In addition, the Group operates, or has
under development, 14 Residences at Mandarin Oriental connected to
the Group’s properties. The Group has equity interests in a number of
its properties and net assets of approximately US$2.9 billion as of 31st
December 2012.
The Group’s strategy is to be widely recognised as the best global
luxury hotel group by investing in its exceptional facilities and its people
whilst continuing to seek further selective opportunities for expansion
around the world. This strategy combined with a strong balance sheet isdesigned to achieve long-term growth in both earnings and net
asset value. For more information about the direct economic value
generated and distributed by Mandarin Oriental Hotel Group, including
revenues, operating costs, employee compensation and payments toproviders of capital and governments, please refer to the Appendix(p. 60) of this report.
Mandarin Oriental Hotel Group is incorporated in Bermuda and isheadquartered in Hong Kong. The Company’s equity shares have a
Premium Listing on the London Stock Exchange, and secondary listings in
Bermuda and Singapore. Jardine Matheson Group is the parent companyof Mandarin Oriental and owns a majority of the equity shares. For more
information regarding our corporate structure or governance, or for our full
financial disclosure, please refer to our Annual Financial Report available
on our website at mandarinoriental.com.

IN T ROD U C T ION

About Mandarin Oriental
Hotel Group5

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Doing More for a
Sustainable FutureOver the past 50 years, from the opening of our first hotel in Hong Kong in 1963,
Mandarin Oriental Hotel Group has grown to become a leader in luxury hospitality,
representing over 11,000 rooms in 27 countries, across four continents today. As
we deliver our unique brand of legendary service to more guests around the world, it
remains vital that we do so in a way that is consistent with our mission and values.

As we deliver our
unique brand oflegendary service
to more guests
around the world,
it remains vital that
we do so in a waythat is consistent
with our mission
and values.

Responsibility has long been a core value of Mandarin Oriental; it is
one of the Guiding Principles that supports our mission and vision to
be recognised as the best luxury hotel group in the world. At Mandarin
Oriental, we understand that our long-term success depends on thehealth and prosperity of the communities in which we do business.
Under the guidance of the Group’s Corporate Responsibility Committee,
together with the dedication of hotel colleagues worldwide, we have mademeaningful progress on our sustainability priorities. The following notableaccomplishments are highlighted in this, our second Sustainability Report:• We achieved our goal to increase energy efficiency by 10%
and to reduce greenhouse gas emissions by 10% over ourcommitment period (2007–2012). These conservation gains wereattained even as the Group expanded operations worldwide.
• We realised US$19.6 million in cost savings from 2007 to 2012
by implementing strategic energy efficiency initiatives.
• We enhanced our proprietary health and safety programme in 2012 with theaddition of an environmental section, including waste management guidelines,
in order to help our hotels measure and continuously improve performance.
• We continued to support many worthy causes in our communities, including
cultural heritage preservation and charitable programmes.
As we progress toward our goals, we are committed to addressing oursustainability challenges. Water consumption remains an area that requires
additional focus and underscores the importance of setting and attaining
short-term targets in order to achieve our long-term objectives. Therefore,
in 2013, the Group has established new short-term environmental goals,
with each hotel receiving individual goals to help maintain our progress.
A sustainability awareness training programme, developed in 2012, will also be
deployed at our hotels in 2013 in order to encourage even greater engagement
amongst our colleagues, who remain our most valuable resource.
Whilst more work lies ahead, I am pleased to see that we are embracing our
responsibilities with the same dedication and enthusiastic service that has
distinguished Mandarin Oriental for the past five decades. Thank you for following
our progress as we continue on our journey towards a more sustainable future.

Edouard EttedguiGroup Chief Executive

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

IN T ROD U C T ION

About This Report
The information presented in thisreport is consistent with the Global
Reporting Initiative (GRI) sustainability
reporting methodology at Level C+. In
the interest of continual improvement
and increasing transparency, Mandarin
Oriental Hotel Group migrated to the
GRI G3.1 Guidelines and is providing
supplemental data for five labour
indicators and is also reporting on two
new parameters (GRI PR3 and LA15).
A GRI index is included at the end of
this report.
The Group retained an independent,
third-party auditor, LRQA, to verify
and assure the claims presented
within this report and ensure
conformance with the GRI G3.1
Guidelines for the indicators
disclosed. LRQA’s AssuranceStatement is located in the Appendix(p. 66) and includes the scope andboundary of their review.

Scope and Boundaries
This sustainability report presents
activities undertaken in the calendar
year 2012 for the Group’s 26 hotels
that were fully operational, and
it is an update to our previously
published 2011 report. In 2012, one
new hotel was opened in Atlanta,
Georgia, in the United States. No

other significant structure changes
occurred in the reporting period.
Unless otherwise noted, Mandarin
Oriental, Atlanta is not included in thisreport, as it was not fully operationalin 2012. Residences and hotels underdevelopment are also not included inthis report.
Where appropriate, historicalinformation has been included
with reference to the baseline year
2007 for environmental data, andbaseline year 2008 for occupational
health and safety data. Economic
data is presented for the last three
years to align with our annual
financial reporting scheme. All
calculations are completed inaccordance with industry practices
or as recommended by the GRI,
and are explained within eachsection. Improvements in theinternal verification process haveresulted in amendments to historicalenvironmental data, and consequently
comparisons can not be madeto the 2011 report. In addition,
the methodology for calculating
emissions has changed slightly, inthat the emission factor sources andfrequency of updates have now been
defined. Therefore, emissions data
has been restated back to 2007 to

OUR CORPORAT E
RE SPONSIBILIT Y PO L I C Y

Mandarin Oriental
is committed tocontributing to thecommunities inwhich we operate
and responsibly
managing ourenvironmental
impacts and social
commitments.

account for these changes. These are
the only significant restatements. Any
exceptions to the scope, boundaryor calculation method presented here
are noted in each section.
The Group evaluates issues that arematerial to our business and of interest
to our stakeholders, including mattersthat could have significant economic,
environmental or social impacts. Those
topics are included in this report.

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Acting with Responsibility
The foundation for Mandarin
Oriental’s responsible businesspractices lies in our Guiding
Principles, our Code of Conduct andin our governance process.

Guiding Principles
Mandarin Oriental’s mission is tocompletely delight and satisfy ourguests, and our mission is supported
by our long-standing Guiding
Principles that describe the valuesof our company and our colleagues.
Responsibility is a key tenet of
Mandarin Oriental’s Guiding Principles:“We will actively participate in the
improvement of the environment,
just as we will be responsible
members of our communities andindustry organisations”.

Responsible
Operating Practices
Our ethical standards are clearly
set out in the company’s Code of
Conduct, a set of guidelines to which
every employee must adhere, whichis generally consistent with the United
Nations Global Compact. Our Codeof Conduct requires that we comply
with all laws of general application,
all rules and regulations that areindustry specific and proper standardsof business conduct. The codeprohibits the giving or receiving of illicit
payments and requires all employees
to be treated fairly, impartially andwith respect. It also requires that all
managers must be fully aware of their
obligations under the Code of Conduct
and establish procedures to ensurecompliance at all levels within theirorganisations. The Group has in place
procedures by which employees canraise, in confidence, matters of serious
concern in areas such as financial
reporting or compliance.
Mandarin Oriental Hotel Grouphas developed Group-wide hiringand employment guidelines andimplemented strict anti-harassment
and anti-discrimination policies.
Every colleague receives training
on our employment policies upon
employment, as part of the “MOve In”
training programme, which is detailed
later in this report.

Our Guiding Principles
DELIGHTING OUR GUESTS
We will strive to understand our client and guest
needs by listening to their requirements and responding
in a competent, accurate and timely fashion. We will
design and deliver our services and products to address
their needs. In fact, we are committed to exceeding
their expectations by surprising them with our ability toanticipate and fulfill their wishes.
WORKING TOGETHER AS COLLEAGUES
We will emphasise the sharing of responsibility,
accountability and recognition through a climate of
teamwork. By working together as colleagues andby treating each other with mutual respect and trust,
we will all contribute to the Group’s overall successmore productively than if we worked alone.
PROMOTING A CLIMATE OF ENTHUSIASM
We are committed to everyone at Mandarin Oriental byproviding a caring, motivating and rewarding environment.
As an industry leader, we are committed to bringing out
the best in our people through effective training andmeaningful career and personal development, and byencouraging individuality and initiative.

BEING THE BESTWe will be an innovative leader in the hotel industry
and will continually improve products and services.
We will seek from our suppliers the highest quality
products and services at the best value.
DELIVERING SHAREHOLDER VALUE
We are committed to being a growing company.
Our success will result in investment returns which areconsistently among the best in the hotel industry.
PLAYING BY THE RULES
We will maintain integrity, fairness and honesty inboth our internal and external relationships and willconsistently live up to our commitments.
ACTING WITH RESPONSIBILITY
We will actively participate in the improvement of
the environment, just as we will be responsible membersof our communities and industry organisations.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

S U S TA IN A BILIT Y GO VERN A N C E O RGA N IS AT IO N

In 2012, Mandarin Oriental
launched a Group-level Corporate
Responsibility Committee (GCRC)
under the direction of the Group’s
sustainability Executive Champion,
Terry Stinson, Group Development
Director and President of theAmericas and an executive-level
member of the management board.
The GCRC is responsible for theGroup’s overall sustainability strategy,
including the setting of measurable
goals, programme development,
promoting and soliciting feedback on
Corporate Responsibility initiatives
internally and reporting to senior
management on progress andprogramme effectiveness.
Every Mandarin Oriental property
also has its own Hotel Corporate
Responsibility Committee (HCRC),
led by a designated Corporate
Responsibility Champion.
Each HCRC is responsible for
implementing Group sustainability
initiatives, as well as identifying andimplementing local sustainability
activities at their hotels with thesupport of our colleagues. The hotel
Corporate Responsibility Champions
have the responsibility of raising
issues identified at the hotels to their
General Managers and the GCRC,
which in turn raises issues to the
Executive Champion and the Boardof Directors, if necessary.
In 2012, the GCRC and HotelChampions focused on thedevelopment of a Group-wide
sustainability training programme.
Hotel Champions also reported
hotel-specific initiatives aimed
at environmental improvements
and discussed property
communications, including
newsletters in which colleagues
have shared tips to reduce, reuse
and recycle, wherever possible.

Group
Corporate
Responsibility
Committee
with Executive
Champion
Hotel
Corporate
Responsibility
Committees

Stakeholder
Engagement
We recognise the importanceof engaging our stakeholders tounderstand their concerns andviewpoints so we can align ourbusiness with their goals. To
encourage stakeholder dialogue,
Mandarin Oriental Hotel Groupis committed to disclosing boththe successes and challenges
identified through our sustainability
programme.
Our practice of stakeholder
engagement has evolved over ourlong history, rather than as a resultof a formal, defined process. As
we progress on our sustainability
journey, we will continue to define
our stakeholders and refine ourinteraction with them. The following
is a list of key stakeholders identified
to date:HotelCorporate
Responsibility
ChampionsColleagues• Guests• Colleagues• Hotel owners and developers• Local communities in which we operate• Shareholders• Vendors, suppliers and contractors• Industry peers andtrade associations• Journalists and media representatives• Non-government organisations(NGOs) and outside advisors hotels
have engaged to date
In 2012, we engaged our stakeholders
through various avenues ofcommunication. We published our
first external Sustainability Report andredesigned our website to include our
Corporate Responsibility initiatives.
We continue to use existing processes
for feedback, including our colleague
engagement and guest satisfaction andloyalty surveys, investor meetings andpublication of our annual financial report.

IN T ROD U C T ION

Governance for
Sustainability

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

COMMITMENTS

Operate in anenvironmentally andsocially responsible way

CORPORATE RESPONSIBILITY PRACTICES
Through training and education, we are empowering our colleagues tomake decisions that are environmentally and socially responsible.

Management responsibility is assigned and resources are allocated to implement andreview performance of corporate responsibility policy commitments and objectives.

DELIVERINGEXCELLENCE

Engage and inspireothers in ‘Doing More for a
Sustainable Future’

ADVANCING
SUSTAINABILITY

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

Publicly report our impact
on the environment

The Group will effectively measure and monitor the environmental
footprint of all our operations to publicly report on our progress.

Meet or exceed
all applicable
environmental standards

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

Minimise our consumptionof resources including
energy, water and materials

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

Reduce our greenhousegas emissions,waste and pollution

CHAMPIONING
COMMUNITY

Stakeholders are consulted and their feedback issolicited to continuously improve our performance.

Positively impact our local
communities and celebrate
our cultural heritage

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

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

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

Delivering
Excellence

Mandarin Oriental’s mission is
to completely delight and satisfy
our guests. We are committed tomaking a difference every day;continually getting better to keep
us the best.

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DELIVERING EXCELLENCE
Legendary service is the hallmark of our company, and we are committed to delivering excellence and exceeding expectations
on a daily basis. This section focuses on our approaches to guest satisfaction, employment, colleague development,
safety, health and wellness, as well as responsible sourcing, all of which help distinguish the Mandarin Oriental brand.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

Delighting our Guests

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

Mandarin Oriental colleagues arecommitted to making a difference
every day, continually getting better tokeep us the best. Our brand-defining“Legendary Quality Experience” (LQE)
service standards bring the Group’s
mission, vision and Guiding Principles
to life. Since luxury quality service
is one of the Group’s key strategiccompetencies, all colleagues are
empowered to adapt and deliver
personalised service to each guest.
This inspiration-based service
approach engages both colleagues
and guests on an emotional level,
encouraging a genuine connection andcreating true “fans” of the brand.
To measure customer satisfaction andloyalty, the Group uses a number ofquality improvement and assessment
tools. The Group’s guest satisfaction/
loyalty programme at each of our hotels
invites guests to provide feedback
through an independent consultant by
e-mail, immediately following their stay.
Responses are analysed monthly, andthe annual values are presented below.

Our Performance:
Guest Satisfaction
G U ES T S AT IS FA C T IO N
SAT IS FAC T ION RAT ING

100
90%

90%

2008

2009

88%

88%

87%

2010

2011

2012

80

60

40

20

0

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

The table below shows guest
satisfaction/loyalty survey results
for the Group as measured in all ourhotels. Survey results for 2012 indicate
guest satisfaction for overall quality
is 87%, which is similar to historicalvalues. Overall, the survey indicatesconsistently high levels of satisfaction
and loyalty to the brand, varying lessthan three percentage points overallsince 2008.

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Employer of Choice
Employing and retaining talent is
critical for delivering the top quality
service that defines our brand. To
be an employer of choice, Mandarin
Oriental selects the finest hospitality
professionals and empowers
them within our business. We arecommitted to ensuring that colleagues
are treated with respect, courtesy anddignity, and that they work in clean,pleasant and safe environments. We
also commit to providing effective
training and meaningful careerdevelopment and professional growth.
Finally, we maintain an open-door
policy, creating an atmosphere ofharmony and a culture of fairness for
all colleagues.

Our Performance: Employment
As of December 2012, Mandarin
Oriental directly employed over
12,000 colleagues, including all 27
operational hotels 1 in 2012 and all

corporate offices. Full-time colleagues
comprised 89% of our total
workforce, whilst 4% were employedpart time, and the remaining 7% on
a casual (non-contract) basis. The
majority of the workforce consistsof line-staff, representing 78% of all
positions, including casual colleagues.
Managers and executives make up
the remainder of the workforce, at
20% and 2%, respectively. We are ahighly diverse company; we employ
most of our colleagues on a full-timebasis with benefits.

developed a human resources strategy
to address higher than average
turnover rate in Europe (43%).

In 2012, Mandarin Oriental
experienced a global turnover rateof 30%, which is below the industry
average of 34%.2 Colleagues over
the age of 50 have the lowest rateof turnover (18%). Additionally, theturnover rate is lower for colleagues in
the global corporate offices (18%) andhotels in The Americas (21%). We have

In 2012, 239 colleagues utilised
parental leave, including 113 men and
126 women. Of these colleagues, 203
returned, including all men (100%) and
90 women (71%). This represents an
85% return rate overall.

Response to our colleague
engagement survey in 2012 was 95%,
with an 85% favourable (excellent orabove average) rating. Since 2010,
the percentage of colleagues rating
Mandarin Oriental Hotel Group as
favourable has increased by one
percentage point year over year.
Colleague engagement is a processcompleted annually.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201215

D EL IVERIN G EXC EL L EN C E
AD VAN C I N G SU STAI N ABI L I T Y

Comprehensive
Employment Benefits

Diversity and Equal Opportunity
at the Core of our Company

Our Performance: Diversity

Mandarin Oriental is a very diverse
company with a global footprint.
The majority of our colleagues are

In 2012, a total of 114 nationalities
were represented in our workforceof over 12,000 colleagues. Chinese,

Thai and U.S. citizens comprised
45% of our workforce. Mandarin
Oriental Hyde Park, London has
the most diverse workforce in theGroup, with citizens from 45 countries
represented.
Women make up 45% of our total
workforce. The gender balanceacross colleague categories isgenerally equal, with the exceptionof executives, who are predominantly
male. Notably, however, 54% ofmanagers and executives under theage of 30 are female.

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

Benefits are offered at Mandarin
Oriental consistent with our values asa caring and responsible employer andto attract and retain talent. Standard
benefits are provided to all full-timecolleagues. Benefits vary by location,
but typically include leave, retirement
and care benefits, such as parental anddisability leave and health insurance
coverage. Other benefits offered may
include tuition reimbursement andcolleague meals. Part-time and casualcolleagues receive benefits as requiredby local labour laws and conditions,and they are generally pro-rated basedon the hours worked.

located in Asia (61%). Due to thenature of our business, the majority
of colleagues (85%) are local to theoperation, including managers andexecutives (80%). Local is defined
as residing near a hotel’s location
for six months prior to employment.
Managers are defined as colleagues
directing a department or group ofcolleagues. Corporate leadership(including the operating committee andMandarin Oriental Hotel Group’s boardof directors) is comprised of moremen (86%) and European nationals(71%) than the company as a whole.
Senior leadership at the individual
hotels is more ethnically diverse
than the corporate leadership and isrepresentative of the local population.

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SUSTAINABILITY FANS

Mandarin Oriental, Singapore and MINDS
Since 1962, the Movement for the Intellectually Disabled of Singapore (MINDS) has provided
education and training to intellectually disabled people in Singapore. Mandarin Oriental,
Singapore has proudly supported MINDS since 2005 with donations and volunteers, inaddition to training and employment opportunities. The hotel hired its first MINDS student in2006 and has continued to employ additional students every year since.
In 2012, eight MINDS students were employed as part-time staff, with tasks appropriate totheir cognitive abilities, such as working in the engineering department as a helper, stocking
towels and folding napkins. Those students remain employed at Mandarin Oriental, Singapore
and the first recruit was recently promoted to a full-time position. Every student is employed
for at least the minimum salary required to participate in the Singapore Central Provident Fund(CPF), the compulsory savings programme to fund retirement, healthcare and housing needs.
The CPF allows for borrowing in order to purchase a home, which often allows MINDS students
to stabilise their families through consistent housing and employment.
In early 2013, Mandarin Oriental, Singapore together with their suppliers and contractors,
constructed a training room set up like a hotel suite at a MINDS facility, which they hope to
use for household and occupational education of MINDS students and teacher training.

MINDS student Clarence Soh has worked at Mandarin
Oriental, Singapore in the Engineering Department
since 2007. Clarence has taken ownership of tasks
that he performs well, such as painting and sanding.
Colleagues in his department understand his abilities
and encourage him, which has led to greater self-esteem andconfidence in engaging new people. His sister, Wendy Soh, alsoa colleague at Mandarin Oriental, Singapore, says, “This job has
definitely made a difference in Clarence’s life. When asked about
what he does for a living, he will always answer, ‘I’m an engineer
at Mandarin Oriental!’ something he says with much pride”.

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D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Clarence and Wendy Soh

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Colleague Development
Our vision is to be widely recognised as
the best luxury hotel group in the world.
To achieve this, each and every one of
our colleagues has to be the best; thisis only achieved through continuous
learning and development activity.
Learning and development is integral
to Mandarin Oriental’s culture, and our
extensive learning and development
programmes contribute to the skills,
knowledge and motivation of ourcolleague workforce. The process of
training is never over—competencybased training ensures that each of ourcolleagues continues to learn and growon a daily basis.
Leadership and personal development
courses are conducted as partof our workplace practice through“The Learning Framework”, which
provides leadership development
applicable to our colleagues’ current
and future career goals.

Training for Excellence
Our training is based upon thedevelopment of technical andleadership competencies, and it
involves many techniques. Everycolleague, regardless of position,
participates in “MOve In” training
upon employment, an orientation
to Mandarin Oriental designed to
be a highly integrated and dynamic
experience that caters to the diversityof colleagues employed around theworld. It should be noted that “MOveIn” training is not routinely offeredto third-party personnel. By the endof this 90-day training programme,
all colleagues know the history
and culture of the company, theircareer path and opportunities fordevelopment, and how to make adifference every day.
As colleagues follow their career
paths and move into supervisory
roles, they participate in Job Skills

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

At Mandarin Oriental, we train
for competency. We focus on
measuring the results of training
rather than recording the hours of
input. Learning takes place in all our
departments each and every day, inso many different ways: coachingsessions, feedback, cross exposure,shadowing, team meetings, oneto-one job skills training, e-learning
activities, as well as in more formalclassroom training. Whilst much of
our training is not formally recorded,
we measure very carefully whether
each colleague is able to perform thetasks of his or her job to the requiredGroup standards.
In 2012, Mandarin Oriental conducted
179 Leadership Training sessions,
including Train the Trainer, “MOve Up”
and “MOve Forward” programmes.

MOve In (90-day Orientation)
Participants:
All Colleagues

Job Skills Training
Participants:
All Colleagues

MOve Up
Participants:
Supervisors /Junior Managers

MOve Forward
Participants:
Managers

MBA
Participants:
Hotel and Corporate
Senior Managers

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

Throughout the year, colleagues
are assessed on their development
and performance, which is recorded
through an on-line development andsuccession planning system called
Profile. Prior to the start of the year,
colleagues establish development
plans and performance goals. Midyear reviews are conducted to gauge
progress towards goals. Annual

Our Performance: Training

Training
Programmes

AD VAN C I N G SU STAI N ABI L I T Y“MOve Forward” is a programme
designed for managers to honeskills: management of themselves(i.e. effectiveness, personalcoaching), management of others(i.e. team leadership, managementof change, mentorship), andmanagement of the business(finance, business planning, healthand safety). A company-funded
Executive MBA programme is offered
to select senior managers who wish
to continue their business education.

reviews are completed to discussand document progress with the
job-related competencies and theattainment of goals. In 2012, 73%
of all hotel colleagues received such
performance reviews (71% for men
and 74% for women). Colleagues
with less than four months service
typically do not receive formal
reviews of competencies or goals,
though they do receive an informal
review of job performance during
which a development plan andperformance goals are established
for the next year.

D EL IVERIN G EXC EL L EN C E

Training led by qualified trainers, whohave attended On-Job Training andGroup Training Techniques certification
programmes. Both programmes aredesigned to build leadership skills in
future trainers and teach techniques
to assess group dynamics, transfer
knowledge, and assess competency
to determine when additional trainingis needed. In addition, supervisors
and junior managers are encouraged
to participate in the “MOve Up”
development programme, which
is designed to assist in building
competencies, achieving goals anddeveloping leadership skills, bothas an individual and within a team.
Further training is offered to managers,
including topics such as Managing
Performance and Development,Interviewing for Success andPresenting for Success. In addition,e-learning education is available tocolleagues through eCornell online learning modules and language
training through Rosetta Stone.

20

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

SUSTAINABILITY FANS

Mandarin Oriental, Munich and
The Passion to Be the Best
Delightful service is expected from all of our colleagues; it is at the heart of our company
and is trained through the Legendary Quality Experience (LQE) component of the “MOve In”
programme. Designed to take into account the cultural diversity of the locations in which we
operate, the LQEs define the core experiences in guest/colleague interactions and represent thestyle and attention to detail that we bring to our hospitality and service.
Dominik Reiner, a trainer at Mandarin Oriental, Munich in 2012, developed a programmeon the achievement of LQEs in Food & Beverage and Rooms. The training focused onthe ‘passion to be the best’, and the colleagues who participated developed greater
motivation and enthusiasm. The message was not simply about doing one’s job to the bestof one’s ability, but creating the passion to be the best in our company and the industry atlarge. Mandarin Oriental, Munich colleagues responded so well to the training, evidenced
by a score of 89% in 2012 RICHEY LQE Compliance, a 15% improvement, that it was
implemented regionally. All European supervisors and above have become eligible to attend.
LQE training workshops are now held quarterly, and involve two days of team-building andspecific LQE trainings to improve service. To date, six quarters of workshops have been
held, and internal LQE evaluations have improved. Importantly, the nearly 150 colleagues
who attended the training have emerged with renewed passion to delight our guests.

Mandarin Oriental’s Legendary Quality Experiences encourage
the best from our colleagues. LQE Trainer Dominik Reinersays, “Passion to be the best is contagious. Working withcolleagues who have the drive to achieve our LQE expectations,and to take it beyond, to be the best ever, is an inspiration”.

21
Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Mandarin Oriental, Munich

22

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 2Safe, Sound & Sustainable
In 2012, Mandarin Oriental
expanded its proprietary Safe &Sound programme to include anenvironmental section and renamed
the programme “Safe, Sound& Sustainable”. Established in
2000, this integrated complianceframework is based on the corporate
guidelines illustrated at right. All fully
operational hotels and residences
participate in an annual compliance
audit conducted by a third party.
The overall responsibility for compliancewith the guidelines and the audit
process remains with the Group Risk
Management Committee and thehotels’ Risk Management Committees.
In 2012, we also formalised ourlongstanding efforts to reduce theenvironmental impact of our hotels by
including those activities in the Safe,
Sound & Sustainable programme.
Guidelines for the managementof energy, emissions and water
consumption, as well as the generationand disposal of waste, now complement
previous guidelines. Auditing against
the environmental guidelines began in
2012; however, an implementation timeof two years will allow hotels to adapt
to the new requirements before theseenvironmental activities start contributing
to the overall audit performance score.

A Comprehensive
Programme Review
The Safe, Sound & Sustainableguidelines are continuously improved
upon and updated as methods
evolve and as new impacts fromhotel activities are identified. In
2012, we updated our guidelines on
portable appliance testing and added
guidelines for child safety related tothe management of cots, high chairs,
strollers and car seats.
Additionally, we conducted a high-level,
third-party review of the programme

Scope of Safe, Sound &Sustainable Programme
FIRE SAFETY
Inspection, testing and maintenanceof all fire safety related installations.
Based on the internationallyrecognised National Fire Protection
Association guidelines

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

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

SECURITY
Security of guests, colleagues andproperty. 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
Health and safety topics related
to guests. Based on the British
and European standards

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

and identified opportunities to finetune the programme’s design andimplementation. The Safe, Sound &Sustainable programme was foundto be more extensive than generalpractice in the hospitality industry andto fit the specific needs and culture of

the Group. The study further identified
ways to improve the efficiency in thedelivery of our programme. Our focus
will be on reducing the administrative
burden of audits on hotel operations andtransitioning to more efficient solutions
for documentation and recordkeeping.

23

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E
AD VAN C I N G SU STAI N ABI L I T Y

Our Performance:
Audit Results

At the same time, the number ofunannounced audits has increased
from three in 2009 to 12 in 2012, andthe impact on overall performancehas been marginal. The number ofunannounced audits will be further
increased to a total of 17 in 2013,
representing 59% of the hotels andresidences that are fully operational.

Work within our hotel’s various
operating departments requires
safe practices and procedures. A
comprehensive Occupational Healthand Safety reporting system has
been in place since 2002 and isused throughout Mandarin Oriental’s
operations. All work-related accidents
and incidents are reported andthoroughly investigated to identify theroot cause and to initiate corrective
and preventive measures.
The incident severity rate continued
its long-term declining trend in 2012
and reached a new historical low of
2.5 incidents per 100 colleagues,
which represents a decline of 15%.

This rate is below the leisure andhospitality safety rate in the UnitedStates, which is 4 incidents per 100
colleagues. 3 The incident severity
rate, measured as the number of lostworking days per incident, increased
marginally by 1% to 24.6 days per
incident. The Americas continued
their strong downwards trend, whilst
Europe continued to have the highest
incident rate and severity rate in2012. Housekeeping and kitchenstend to have the most incidents withthose typically resulting in lost time.
None of our hotels received asignificant Health and Safety fine ornotice of violation.

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

In 2012, the Group’s overall average
audit score declined by half apercentage point from 90.3% to 89.8%,
marginally lower than the Group’s targetof 90%. Performance since 2008 is
generally stable, with less than two
percentage points change from the yearof highest performance (2008; 91%) to
the lowest performance (2010; 89.3%).

Our Performance:
Occupational
Health & Safety

24

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

Sourcing Responsibly: Food and Beverage
Mandarin Oriental encourages each
hotel to leverage local suppliers for theirproducts. We view sustainable sourcing
as an opportunity to use productsthat will help ensure future availabilityof those goods. We actively supportand engage the communities in which
we operate, and all of our hotels haveunique opportunities for sustainablesourcing. Whilst we may not be able
to source all products locally, the effort
to find local suppliers is an enrichingexperience that brings local culture
and flavours to our guests and helps toprovide jobs in the local economy.
To ensure high-quality goods,
suppliers are audited regularly as partof the Safe, Sound & Sustainable
programme by hotel personnel, who
are tasked with reviewing products
and working conditions. Several

hotels have taken this one step further
by extending participation in theseaudits and by training colleagues torecognise high quality. For example,
Chef Eric Ziebold of the award-winningrestaurant CityZen at Mandarin
Oriental, Washington D.C. organised
a two-day staff outing in April 2012 todiscover Virginia’s culinary heritage.
The idea was simple: demonstrate
the depth of knowledge and passionthat Virginia suppliers had for theirproducts and showcase how quality
products look and taste. During thetrip to their suppliers, colleagues
visited the Rappahannock River Oyster
Company by the Chesapeake Bay
and the Darden Family Farm, which
produces a very small number ofpremium cured hams every year in
Smithfield County. Chef Ziebold statedthat his role is to keep purchasingthese high-quality food items and tofeature them at the hotel, so that these
suppliers can retain their passion for
creating great products and earn a fairliving at the same time.
The suppliers visited on the Virginia
culinary tour represent only two local
suppliers to the hotel. Mandarin
Oriental, Washington D.C. sources
produce, proteins, dairy and grainsfrom more than 15 local suppliers.
Not every product is sourced locally,
but developing local, high-quality
suppliers for the majority of items
is desirable from an environmental,
community and economic
perspective. Our other hotels operatewith the same philosophy, sourcing
many products locally when available
and encouraging local growers to
produce quality products.

Chef Eric Ziebold
at CityZen

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Seafood is a staple at Mandarin
Oriental hotels and we are sensitive
to the impacts caused by overfishingand environmentally destructive
fishing methods. For that reason
we proactively created sourcing
and traceability requirements in our
seafood supply and have removed
certain species vulnerable tooverfishing. In 2012, seven hotels havesubscribed to the Marine StewardshipCouncil recommendations (found atwww.msc.org).

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

In February 2012, Mandarin Oriental
Hotel Group also removed shark’s finfrom all restaurant and banqueting
menus worldwide. For the Group, thiswas a big step towards sustainability
given the prominence of this dish in
Asia for ceremonial dining occasions,such as weddings. At Mandarin
Oriental, Hong Kong and at The
Excelsior, Hong Kong, it was expectedthat the shark’s fin ban would havesignificant economic consequences
once implemented. However, theban coincided with growing public
perception of the need to preserve
ocean biodiversity and humane
treatment of sharks. Due to the
support of our guests, the ban on
shark’s fin has had nominal business
impact on our operations, andimportantly, it was the right thing to do
for the environment.

D EL IVERIN G EXC EL L EN C E

Sustainable
Seafood Programmes

25

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

Mandarin Oriental, San Francisco
sources its protein from Fallon Hills
Ranch, which raises sheep andcattle on a special grass mixture that
includes high protein and omega-3
fatty acids, offering continuous
nutrition year round for the animals.

26

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

SUSTAINABILITY FANS

Rooftop Honeybees at
Mandarin Oriental, Paris
Mandarin Oriental, Paris has a premier location on Rue Saint-Honoré, surrounded by history
and fashionable shopping. It also has hundreds of special visitors every day: honeybees.
To help restore the local bee population, the property installed a rooftop beehive inMarch 2012 with the help of a local organisation, Apiterra. Bees are an important partof the pollination cycle and often thrive in urban environments such as Paris, which has
been a pesticide-free zone for the past ten years. Indeed, the hotel’s first harvest yielded
30kg of honey, which Executive Chef Thierry Marx and Pastry Chef Pierre Mathieu areusing in the hotel’s recipes. Bar 8 also offers a signature “Honey Kingston” cocktail
made of lemon juice, Cointreau, rum, whiskey barrel bitter and the hotel’s homemade
honey. Guests who participate in the property’s environmental programmes, such as
the selective replacement of bed linens or towels, also receive a jar of honey produced
from the rooftop hive as a gesture of appreciation. As this successful programme
illustrates, protecting the earth’s ecosystem can have some delicious benefits.

General Manager Philippe Leboeuf says,“Our rooftop beehive has given us a fantastic
opportunity to raise awareness amongst ourcolleagues and guests of our common responsibility
to help protect the world’s biodiversity”.

27
Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Mandarin Oriental, Paris

28

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

Health and Wellness
Mandarin Oriental is at the forefrontof health and wellness with its awardwinning and highly personalised spa
experiences. Each Spa at Mandarin
Oriental is designed to offer a complete
holistic experience that goes wellbeyond simply delivering massages totired bodies. A focus for the Group’s
experience is a signature “Time Ritual”,
which encourages guests to book timerather than specific treatments, so that
services can be tailor-made to meet
specific needs.

powerful effects of oriental meridianmassage with the aromatic benefits ofcustom-blended essential oils createduniquely for Mandarin Oriental.
Each spa also offers a variety ofother disciplines that include fitness,
nutrition counselling, yoga, tai-chi,meditation, beauty and relaxation
therapies. In tandem, the hotels offer
nutritional meals and recipes forguests and colleagues.

Spa Products
Our spa therapies have beendeveloped in consultation withspecialists in Traditional Chinese
Medicine (TCM) and masteraromatherapists, and they combine the

Mandarin Oriental’s signature spa
product line has been developed
specifically for the Group by theaward-winning UK based company
Aromatherapy Associates. The

product range incorporates body andbath oils, as well as a body scrub,
body wash and lotion, all of whichcontain natural, non-toxic ingredientsand are paraben free. Our products
have been formulated by a masterblender to Mandarin Oriental’s
specifications and are available forpurchase at Mandarin Oriental spas,so that guests can continue using
specific blends at home.
During product development,
ingredients, containers, packaging,
distribution and disposal wereconsidered with the environment inmind. Ingredients and directions foruse are labelled on the products as
required by local regulations.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201229

D EL IVERIN G EXC EL L EN C E
AD VAN C I N G SU STAI N ABI L I T Y

Nutrition

Launched in 2010, Gourmet Healthy
Delights is a programme created bycertified naturopath and nutrition
consultant Liliane Israel, and has been
implemented at Mandarin Oriental,
Paris; The Landmark Mandarin
Oriental, Hong Kong and Mandarin
Oriental Hyde Park, London. Basedon contemporary scientific research,
the programme combines naturopathy
principles with culinary art, flexibly
integrating nutritional guidelines intofine dining recipes as well as into
personal or family meal plans in daily
life. Gourmet Healthy Delights iscomprised of two parts: the Guest
section provides innovative menu
options to enhance food lovers’
lifestyles; the Colleague section
promotes healthy eating habits andpersonal development tips, along withpractical guidance that fits into the
local culture.
Specific to each hotel with a distinct
sense of place, Gourmet Healthy
Delights stands on its own strengths
and skills, local culture and traditions,the culinary art of its chefs and thewealth of the regional produce. For abreakfast, a lunch, a dinner, a week
end or a long stay, simple symbols
identify selected menu items in
two categories: Vitality and Weight
Management. All dishes are madeusing whole, non-processed foods
and locally sourced, organic products
when possible.

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

Nutrition is considered in thedevelopment of recipes and preparationof meals at Mandarin Oriental properties.
We believe that the use of local, seasonaland organic ingredients enhances taste
and adds to the experience of partaking
in a meal. In addition, recipe development
has evolved to reduce sugar, salts andfats where possible. Alternative menus
have been created in many restaurants,
including vegan, halal, lower-fat andgluten-free, providing various options
for our guests and colleagues in theirmeal choices.

30

Hotel Initiatives
At Mandarin Oriental, Barcelona,chefs Carme Ruscalleda and Raul
Balam, along with Dr. Manuel
Sanchez, head of the anti-ageing unit
at Clinica Planas, have developed six
seasonal anti-ageing menus. Eachmenu ensures proper caloric intake
and utilises foods that slow theageing process and improve qualityof life, whilst maintaining flavourand creativity of gourmet dishes.
The menus are served in Moments
restaurant, and a cookbook isavailable for purchase.

The Ensalada de Contrastes
Sin Aceite salad features
the following ingredients:
golden apple, strawberries,
Iberian ham, pea sprouts,rose petals and escarole.

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

Advancing
Sustainability“As an industry, it is important
to be aware of our environmental
footprint. It is easy to introduce
energy-efficiency mechanisms,
and it makes economic sense”.
—Edouard EttedguiGroup Chief Executive

32

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

A D VA N CI NG SU STAINAB ILITY
Sustainability impacts nearly all
aspects of Mandarin Oriental’s hotel
operations, so we embrace it as ameans to preserve our environment,
to provide increased guest comfort,
and to engage and inspire ourcolleagues. Hotel guests around theworld are becoming more familiar
with sustainability issues and theirpersonal impact in terms of social,economic and environmental
responsibility. Globally, nearly eightout of ten hotel guests declarethey are sensitive to sustainable
development. Virtually unknown 20

years ago, sustainable development
is now often taken into consideration
by one in two guests when choosing
a hotel. 1
Rising utility costs encourage hotel
owners and managers to adopt
environmental best practices andto optimise efficiency. Sustainable
practices also make it easier tomanage and respond proactively toregulatory requirements, which are
increasingly moving away from a strict
operational focus to include hotel
design, construction and operations.

Regulatory initiatives related toclimate change include the levyof direct carbon taxes on nonrenewable energy sources, as well as
indirect market-based mechanisms
such as cap and trade legislation.
These direct and indirect taxes aswell as increased energy rates willlead to an increase of operating
expenses. Changing climate patterns
can also cause an increased
occurrence of natural disasters andrisk affecting our infrastructure, ourcolleagues in their livelihoods andour guests’ travel plans.

ENV I R ONMEN TAL S U S TA IN A BIL IT Y G O A LS

KPI2012 Goals

2016 Goals

2020 Vision

Current Status(to baseline)

ENERGY INTENSITYEMISSION INTENSITYWASTE INTENSITYWATER INTENSITY

MJ / square metre

kg CO2e /square metre

kg of waste sent to landfill /Guest Night

Litre / Guest Night

Reduction of
10% by 2012
over 2007 levels

Reduction of
10% by 2012
over 2007 levels

Develop a complete,accurate, consistentand timely measurement
process by 2012

Reduction of
10% by 2012
over 2007 levels

ACHIEVEDACHIEVEDACHIEVEDNOT ACHIEVED

Reduction of
15% by 2016
over 2007 levels

Reduction of
17.5% by 2016
over 2007 levels

Reduction of
10% by 2016
over 2012 levels

Reduction of
15% by 2016
over 2007 levels

ON-TRACK

ON-TRACKINITIATED

OFF-TRACKReduction of
20% by 2020
over 2007 levels

Reduction of
25% by 2020
over 2007 levels

Reduction of 20% by 2020
over 2012 levels

Reduction of
20% by 2020
over 2007 levels

ON-TRACK

ON-TRACKINITIATED

OFF-TRACKReduction of 10.6%

Reduction of 13.0%

Measurement
process complete;
short-term goal developed.

Reduction of 8.8%

33

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Understanding that the luxury hotel
experience we provide to our guests
results in a higher than industry
average use of resources, we haveset short-term and long-term goals
to minimise our consumption ofnatural resources and our emissions
everywhere we can.

As a Group, we provide guidelines
and long-term planning, and werely on our colleagues’ dedicationand innovation to identify andimplement measures and drive
new initiatives appropriate for theirhotels. Based on our progress, werecognise the importance of shortterm goals supporting our long-term
commitments. Our new short-termgoals 2013–2016 will help us keep
track of our progress towards our2020 targets. Each hotel will be
provided with their individual shortterm goals for all environmental
aspects of their operation, including
energy, emissions, water and waste.

Environmental Scope
The following section details
our performance in advancing
the environmental dimension ofsustainability. We report on the use ofenergy and water, and the generationof waste and greenhouse gas
emissions, for activities taking place
inside the boundaries of our hotels,
and as detailed in the illustration
below. In our efforts to gradually
expand our reporting, we are planningto gradually include further activities
that we directly influence but that
occur outside our properties.
As we believe that transparency in theway we measure our performance iskey, we have included detailed notes
at the end of this report (p. 65) about
our methodology used to calculate ourenvironmental performance.

S C O P E O F EN VIRO N M EN TA L REP O RT IN G

SU PPL I E R
TR ANSPO R TI O NSH O PSAN D
TEN AN TS

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

2012 marks the end of our first fiveyear commitment period. We set ourenvironmental baseline in 2007, andas we look back on the past five years,
we are proud to announce that wehave achieved our goal to increaseenergy efficiency by 10% and to
reduce greenhouse gas emissions by
10%. On the other hand, we missed
our water consumption target by
1.2%. It should be noted that none of

our hotels received an environmental
fine or notice of violation in 2012.
Our full environmental performancesummary is located in the Appendix.

D EL IVERIN G EXC EL L EN C E

Taking Stock of
our Achievements

R E SI D E NCE S
C O MPAN YO W N ED
VEH I C LESR E STAU R ANTS

B ANQ U E TAND
CO NF E R E NCE
FACI L I TI E S

G U E STR O O M S
C O R PO R ATE
G I FTSI N TER N AL
LAUN D RY
FAC I LI TI E S
B USI N ESS
TR AVELG UEST
TR AN SPO R TATI O N

O N- SI TE
CO L L E AG U EHO U SI NG

E X TE R NAL
L AU ND RY
FACI L I TI E S

G AR D E NAND
I R R I G ATI O N

CO L L E AG U E
TR ANSPO R TATI O N

O F F - SI TE
CO L L E AG U EHO U SI NG

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

SPA & FI TN ESSC EN TR ES

34

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

Reducing Energy Consumption
Our hotels are located in threedifferent climate zones: Tropical (35%),
Temperate (35%) and Mediterranean(31%). Hotels consume energy forventilation, heating and cooling,lighting, cooking, and other power
requirements. Going hand in handwith investments in new technology,
the continuous dedication of ourcolleagues is critical to our success.

Hotel Initiatives
With ongoing improvements andreduced cost achieved over the past
years, the return on investment for
LED projects has become attractive,
and several hotels implemented LED
replacement programmes. Where LED
was previously cost effective only incontinuously lit areas, and technicallyfeasible only in locations without
dimming functions, this energy saving
technology can now be expanded
to areas such as guestrooms, publicareas and other locations with moresophisticated lighting. In 2012,
we initiated major replacement
programmes at Mandarin Oriental,
Barcelona, where 40% of all light bulbs
were replaced with LED. Mandarin
Oriental, Boston replaced all lights incommon areas. During the renovationof Mandarin Oriental, San Francisco,
we ensured that LED lighting was
included wherever possible, including
guestrooms that are now fully equippedwith this low energy source of light.
Back of the house energy efficiency
measures can have an even greater

impact on energy savings. Chilledwater production for air conditioningis the single most energy intense
installation in most hotels andcontinues to be one of our focus
areas. At three of our fully owned
properties, comprehensive chiller
upgrades over the years have resulted
in significant energy savings. These
successful projects helped us fine tune
best practices, which will be rolled out
to other hotels, with two additional
properties being upgraded in 2013.
The best example is the upgrade of
the installations at Mandarin Oriental,
Hong Kong, which in 2012 resulted
in a total electricity reduction of 17%
from baseline and annual savings of
US$825,000.
In 2012, we have continued with
the installation of integrated control
systems in guestrooms. By adapting
air conditioning and lighting to room
occupancy status, we estimate that weachieve an average energy reductionof 43% compared to a conventional
control system. Integrated control
systems are currently installed at 5,685
or 73% of the Group’s hotel rooms andform part of the standard requirements
for any new development.

Our Performance:
Absolute Energy Consumption
The Group’s absolute energy
consumption in 2012 was 1,326 TJ,
an increase of 2% in consumption,
associated with an equivalent 2%
increase in property size and guest
nights. Overall, our Group reduced
energy consumption by 157 TJ
in 2012 by implementing energy
efficiency measures.2 The total
reduced consumption 2007 to 2012
was 522 TJ, which translates to costsavings of US$19.6 million.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

A B S OL UTE E N E RG Y C O N S U M P T IO N
2 0 0 7 – 2 0 1 2 ( T J/Y E A R )
1500
133
110

1200

1,249

27

95

1,210

1,215

2008

2009

1,267

157

1,307

1,326

2011

2012

900

600

300

0
2007

Reduced Energy Consumption

ENER GY C O N S U M PT IO N BY T Y PE
2 0 1 2 (P E R C E N T )ELECTRICITY 61%

NATURAL GAS 20%

HEATED WATER / STEAM 4%
CHILLED WATER 4%
PROPANE 1%

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

DIESEL 10%

Direct energy sources purchased by ourproperties total 31%; this includes naturalgas, fuel oil and propane gas. Indirectenergy sources total 69%, including
electricity and other energy sources suchas steam, heated and chilled water.

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

Absolute Energy Consumption

2010

36

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

Our Performance: Energy Intensity
Energy use and greenhouse gas emissions relative to the size of our properties are the key performance indicatorsthat we use to measure our performance over time. These indicators allow us to take into consideration the growth ofthe company.
In 2012, the energy intensity for the Group remained stable at 1,609 MJ/m2/year. The period 2007 to 2012 has shown asteady decrease in the early years and then a stabilised performance since 2009.

ENER GY I NT E N S IT Y
2 0 0 7 – 2 0 1 2 (MJ /m 2 /Y E A R )

2000
1,798

1,741
1,596

1,598

1,612

1,609

2009

2010

2011

2012

Energy intensity has stabilised sinceinitial implementation of major energy
efficiency projects in 2007 and 2008.

1500

1000

500

0
2007

2008

The Group’s reduced energy consumption from2007 to 2012 resulted in cost savings of US$19.6 million.

37

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Over the past decade, Mandarin
Oriental has focused on energy
efficiency, as this is an area we directly
control. Our greenhouse gas emissions
are directly related to our electricity
consumption, as well as to the burningof natural gas and fossil fuels.

Cross-sector Collaboration

In 2012, 77% of our emissions camefrom electricity, and emission factors
remain a critical component forachieving our targets. The emission
factors largely depend on the sourceof energy, with hydropower having
the least and coal-firing power plants
having the highest emissions. In 2012,
the lowest electricity emission factor
at one of our hotels was 40 kg CO2e/
MWh and the highest was 809 kg
CO2e/MWh.
The accuracy of the emission
factors is also critical. Some of theelectricity providers disclose theiremission factors as part of theirown sustainability reports, however,
we find that frequency of updates
and accuracy of the measurements
makes this source unreliable. We
have therefore aligned all our datawith the emission factors from theInternational Energy Agency (IEA),
and we will align future reportingwith their annual updates of theemission factors.
We recognise that in many countries
where we operate, good progresshas been made in reducing emission
factors for electricity, and this has

positively impacted our progress
towards our goals. At the sametime, when we project our future
emissions, we are mindful thatthe majority of our new hotel
developments are located in areasthat have emission factors higher
than our current average. This
challenge further amplifies theimportance of our overall strategy todrive reduction in emission intensity
by energy efficiency.

Hotel Initiatives
Since February 2012, in an effort
to mitigate the hotel’s impact on
climate change, Mandarin Oriental,
Washington D.C. purchases 100%wind power for the hotel’s electricity
needs from the utility company,
Washington Gas Energy Services(WGES). The Renewable Energy
Certificates (RECs) for the wind power
are Green-e Energy certified by theCenter for Resource Solutions. The
hotel’s emissions related to the useof natural gas are also compensatedwith WGES Clean Steps Carbon
Offsets. The emission reductions
from the RECs are included in thegreenhouse gas emission data
presented in this report, whilst the
carbon offsets are excluded.

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

Mandarin Oriental remains committed
to the industry-wide goals of theWorld Travel and Tourism Council(WTTC) to reduce total CO 2
emissions by no less than 50%
from 2005 levels by 2035, with aninterim target of 25% reduction by
2020. In an effort to contribute totransparency and comparabilityof performance measurementsin the hospitality industry, we areparticipating in the efforts of theHotel Carbon Measuring Initiative(HCMI). On 12 June 2012, 23
leading global hospitality companies
organised to launch a common
methodology for measuring andcommunicating carbon emissions.
The development of a consistentindustry-wide approach will provide
clarity to customers who would liketo understand their carbon footprint,
and in turn help them achieve theirown carbon reduction goals.

Location Specific Emissions

D EL IVERIN G EXC EL L EN C E

Reducing Emissions

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

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

Our Performance: Absolute Emissions
In 2012, the absolute emissions generated by the Group amounted to 157,000
metric tons of CO2 equivalent.3 Between 2007 and 2012, we reduced emissions by
61,000 metric tons of CO2 equivalent by implementing energy efficiency measures.
This reduction in emissions is equal to taking 11,965 cars off the road.4

A B S OL UTE G RE E N H O U S E G AS E M IS S IO N S
2 0 0 7 – 2 0 1 2 (T H O U S A N D t C O 2 - e/Y E A R )

200
15
12

150

152

3

10

147

150

2008

2009

162

156

22

Total emissions are relatively stable,
even with a slight increase in energy
consumption.

157

100

THOUSANDS

50

0
2007

Absolute Greenhouse Gas Emissions

2011

2010

2012

Reduced Greenhouse Gas Emissions

GR E ENHOUS E G AS E M IS S IO N S BY T Y P E
2 0 1 2 (P E R CE N T)

SCOPE 2 EMISSIONS 85%

Scope 1 emissions are composed ofemissions from direct energy sources,
including natural gas, diesel andpropane.5 Scope 2 emissions are thesum of emissions from indirect energy
sources, including electricity generation, 6chilled water7 and heated water/steam.8
Due to the nature of our business,
indirect emissions (Scope 2) make up
the largest component of our emissions.
These emissions are from energy sources
such as electricity, chilled water andheated water/steam.

SCOPE 1 EMISSIONS 15%

39

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

250
220
211
200

200

197

200

2010

2011

191

150

Much like our energy intensity, ouremissions intensity decreased in 2007
and 2008, and has been relatively stablesince. We are a growing company, andrenovations and new hotels must havethe same efficiency or greater to help us
meet our target.

D EL IVERIN G EXC EL L EN C E

GR E ENHO U S E G AS E M IS S IO N IN T E N S IT Y
2 0 0 7 – 2 0 1 2 ( kg C O 2 -e /m 2 /YE A R )

100

50

0
2007

2008

2009

In 2011 and 2012, we expanded
our focus on an additional sourceof greenhouse gas emissions,specifically from the fugitive emissionsof refrigerants that are released
unintentionally into the atmosphere.
Fugitive emissions typically occur
from leaks in refrigeration systems
or whilst handling cooling agents.
They include hydrofluorocarbons(HFCs) used in refrigeration and air
conditioning equipment.
Guidelines related to the managementof refrigerants have been includedin the Safe, Sound & Sustainable
programme in order to provide a
global approach to the subject. In
2012, fugitive emissions from all of ouroperating hotels equalled 13,098 tonsof CO 2-equivalents, with 71% of theseemissions coming from three hotels.
We will continue our work to manage
these emissions in a more systematicway, focusing on the three properties
that account for the majority of theseemissions. Fugitive emissions are notincluded in the calculation of total
emissions in this report.

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

Between 2007
and 2012,
we reduced
emissions by
61,000 metrictons of CO2,
which is equal
to taking 11,965
cars off the road.

Fugitive Emissions

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

To further reduce our carbon
footprint, we will continue ourstrategy of improving energy
efficiency as well as gradually
introducing renewable energy
sources and cleaner energy
alternatives. We will minimise fueloil used for boilers and heaters
by replacing them with suitable
alternatives, such as heat pumps
and renewable energy where
possible, or by using natural gas.
Where financially viable, gas used forcooking is to be gradually replacedby electricity.

2012

40

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

Reducing Waste
In 2012, as committed in lastyear’s report, we issued our Waste
Management Guidelines under
the Safe, Sound & Sustainable
programme. The main objective
for the guidelines is to consistently
measure the waste sent to landfill anddiverted from landfill by our hotels.
This may appear at first glance to bea very simple task; however, the lackof local regulations and combined
waste collection points for hotels
located within mixed-used facilities
complicates this effort. As thepreferred option, and typical for our
properties in Europe and the UnitedStates, hotels obtain their data fromwaste collectors directly. In Asia, due
to the lack of this data, our hotels canselect to weigh their waste before
disposal or track the number of waste
receptacles and convert to weightusing a standard conversion factor.

guest night as our baseline year
measurement. It is our short-termtarget to reduce this by 10% by 2016.
In our calculations, waste sent tomunicipal incinerators is included inwaste sent to landfill.

Based on this process, 62% of ourhotels collected comprehensive data
in 2012. We will continue the workand gradually increase the numberof hotels with comprehensive waste
data. The data collection process
will continue to be audited annually
under the Safe, Sound & Sustainable
programme to ensure compliance.
We consider 2012 and 3.19 kg waste/

The available forms of recycling varytremendously in the communities
where we operate. Once again, we
benefit from the more stringent andwell established processes in Europe
and the Americas, whilst we findless consistency in Asia. Our current
approach is for each hotel to establish
a waste recycling programme adapted
to local conditions.

41

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Hotel Initiatives for Recycling

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

Local regulations required that aminimum of 65% of demolition andconstruction debris be recovered anddiverted from landfill disposal, either
through recycling or donation of materials
that can be reused. The renovationof Mandarin Oriental, San Francisco
achieved a recovery rate of 89%, well
above the minimum requirement,
reducing the impact that this renovation
could have had on the environment.

D EL IVERIN G EXC EL L EN C E

Mandarin Oriental, San Francisco
unveiled luxurious new interiors in May
2012 in celebration of the hotel’s 25th
anniversary. The award-winning property
was redesigned by San Franciscobased interior designer Michael Boothof BAMO, with a renewed style andcontemporary elegance befitting
Mandarin Oriental’s first hotel in the
United States. During the renovation,
the hotel took careful measures toensure that environmentally-friendly
processes and products were used aspart of our sustainability efforts, from theuse of low-VOC paints, adhesives andcarpet to FSC-certified wood flooringin the suites, spa and fitness centre.
The renovation touched nearly every
facet of the hotel, from the constructionof an entirely new lobby, completely
refurbished guestrooms and suites, aredesigned signature restaurant and thecreation of a new spa.

The lobby staircase at
Mandarin Oriental, San Francisco

WA S T E BY D IS P O S A L M ET H O D
2 0 1 2 ( P E R C E NT )Mandarin Oriental hotels in North
America continue to partner with Clean
the World by donating soaps andshampoo to contribute to sanitation andpublic health. To date, Mandarin Oriental
hotels have diverted ten tons of soap andof bottled amenities from disposal for
donation to Clean the World, resulting in
45,000 bars of soap delivered to people
in need. In 2012 alone, nearly five tonsof waste has been diverted from landfill
through this initiative.

WASTE SENT TO
MUNICIPAL INCINERATOR 30%

Our Performance:
Absolute Waste Generation
In 2012, the absolute waste generated
was 6,929 tons, of which 54% wasdisposed of in landfills, 16% wasrecycled or composted, and 30% sent
to incinerators.9

WASTE SENT TOCOMPOSTING SITE 3%
WASTE SENT TOLANDFILL 54%

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

OVERALL
RECYCLING 13%

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

SUSTAINABILITY FANSThe Road to Recycling at
Mandarin Oriental, Kuala Lumpur
Mandarin Oriental, Kuala Lumpur is one of the Group’s largest properties and maintains a workforce ofover 800 colleagues, who in 2012, welcomed 240,000 room guests and 530,000 food and beverage
guests. In its early years of operation after opening in 1998, Mandarin Oriental, Kuala Lumpur becameaware of its high environmental impact, generating some 930 tons of waste annually—comparable to
the weight of about 690 cars. The recycling rate in Malaysia is only 5%, as compared to neighbouring
countries, such as Singapore with 56%, Thailand with 50% and the Philippines with 12%.10
To improve its recycling efforts, the hotel first launched an awareness campaign among colleagues.
Confirmed in its initial success, it decided to take on a systematic approach to environmental
management and in 2003 the hotel developed an environmental management system and became
ISO 14,001 certified, which it has remained ever since.
Based on the foundation of the 3Rs—Reduce, Reuse and Recycle—as promoted by the Malaysian
government, the hotel today boasts a recycling programme with 15 different items. Apart from packaging
materials, the recycling programme includes items such as batteries, wood, soap bars, computers, lightbulbs, cooking oil and rubber gloves. Recycling practices have also recently been expanded such thatcolleagues can bring used batteries and light bulbs to the hotel for proper disposal.
These initiatives have helped the hotel steadily increase the recycling rate to the current level of
13% of total waste generated. Challenges remain, such as raising awareness among new andyoung colleagues, who are often confronted with the topic for the first time upon joining the hotel.
Although recycled waste is being properly separated in the hotel and delivered to registered recycling
companies holding government approved permits, the processing and final destination of the goods,
at times, lacks transparency.
The recent inclusion of all hotels’ environmental management practices into the Group’s Safe,
Sound & Sustainable programme will help further hotel efforts, as what gets measured gets done.
In the first environmental audit, the hotel reached top scores. Those achievements are rooted in thelongstanding and continuous leadership of individuals who try to make a difference in a country ingreat need of role models.

Director of Business Management Anne Ng says, “Sustainability
will only become a reality if we make it part of everyday life.
When new colleagues join Mandarin Oriental, Kuala Lumpur,
we emphasise that their everyday actions, however small, canhave a big impact over time with regard to the environment”.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Mandarin Oriental, Kuala Lumpur

44

The rooftop pool at
Mandarin Oriental, Barcelona

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

45

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Hotels use water in guestrooms, spasand swimming pools, as well as innon-guest areas for laundries, coolingsystems and irrigation. Our focus willremain on reducing water consumption
in non-guest areas, where we canmake the greatest impact.

Our Group understands theimportance of water to ourbusiness, to human health andto the economic viability of thecommunities where we operate.
We have therefore taken steps
to enhance the monitoring andmanagement of our water use
and have identified hotels thatare located in water-stressed
areas. Approximately one-third of
our hotels currently in operation
or in construction are located in
potentially water-stressed areas. To
obtain our water stress assessment,
we leveraged leading water

availability tools, WBCSD Global
Water Tool and the WRI Aqueduct
Tool, as well as a third-party subject
matter expert.

Our Performance:
Absolute Water Consumption
The Group’s absolute water
consumption, including irrigation,
cooling towers and swimming pools in2012 was 2,224,000 cubic metres.11
Between 2007 and 2012, our Group
reduced water consumption by
777,000 cubic metres, which isequivalent to the amount of water
needed to fill 311 Olympic-size
swimming pools. 12

A B S OL UTE WAT E R C O N S U M P T IO N
2 0 0 7 – 2 0 1 2 ( T H O U S A N D M 3 /YE A R )

2500
2,261

2000

122
2,028

223
214

116
2,225

102
2,224

2011

2012

2,001

1,873

Water use is highly variable andcorrelates to guest nights. Water
efficiency measures have reduced
consumption, but as a growing
operation, we must continue to identify
areas of efficiency improvement.

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

As of 2012, all Mandarin Oriental
hotels obtain water from municipal
or city water supplies with the
exception of two properties, which
rely partially on ground and surface
water. Municipal supply accounts
for 84.1%, groundwater 7.7% andsurface water 8.2% of our total
water supply.

Local Water Availability

D EL IVERIN G EXC EL L EN C E

Reducing Water Consumption

1500

500

0
2007

2008

Absolute Water Consumption

2009

2010

Reduced Water Consumption

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

THOUSANDS

1000

46

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

Our Performance: Water Intensity
Water consumption per guest night is the key indicator that we use to measure
our performance over time, as it takes into consideration the growth of thecompany. In 2012, the Group’s average water use was reduced by 8.8% over2007 levels, and therefore we did not reach our 10% reduction goal for 2012. We
are confident, however, that we can retain our 2020 goal of a reduction of 20%
and have established an aggressive goal for our 2016 goal to keep us on track.

WATE R I NTE N S IT Y
2 0 0 7 – 2 0 1 2 (LITR ES /G U E S T N I G H T )

1000

988

970

971
885

907

901

2011

2012

800

600

400

200

0
2007

2008

2009

2010

Efficiency improvements have beenrealised, but have remained relatively
stable since 2010. Additional
improvements will be necessary toreach our 2016 and 2020 targets.

Championing
Community

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

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C H A M P I O NI NG COMMUNITY
We fully embrace the communities in which we operate, and we are committed to conducting our business in waysthat have a positive impact on society. Mandarin Oriental supports many worthy causes, with a special focus on
cultural heritage preservation and on community programme support. We encourage every hotel to get involved in its
community in ways that make the most of their skills, and for causes about which they are passionate. In addition, theGroup coordinates broader initiatives in certain regions of the world.

Cultural Heritage
The preservation of artistic andcultural traditions is vital to ensuring
their continued enjoyment for future
generations. We celebrate ouroriental roots and embrace the local
culture unique to each hotel, fromthe selection of each hotel’s uniquesymbolic fan, to our support of arts
and artefact preservation.

Fans
Each Mandarin Oriental hotel isdistinguished by its own uniquefan, a profoundly meaningful symbolof our oriental culture that embodies
the Group’s luxurious and elegant

image, whilst also being reflectiveof each property’s local charm.
True to this tradition, Mandarin
Oriental commissioned world
renowned fashion designer Vivienne
Tam in 2012 to create an original
fan design for the opening of
Mandarin Oriental, Guangzhou.
As a native of Guangzhou, Tam has
a strong emotional attachment to thecity. She is deeply inspired by thefact that Guangzhou was the earliest
Chinese trading port to the West, andshe created a fan that symbolises
Guangzhou’s abundant and diversified

offerings—from past to present.
The artistic design cleverly combinesa Chinese opera mask with a geometricpattern and a floral motif whichreflects Guangzhou’s reputation as a“flower city”. These elements, createdin a range of vibrant colours, reflect
Guangzhou’s characteristics: a fastpaced, modern and contemporarycity with a vibrant local culture.
“The fan is totally unique”, says
Tam, given that she sourced the original
design elements from her
own fabric collection.

Mandarin Oriental commissioned world
renowned fashion designer Vivienne Tam tocreate an original fan design for the opening of
Mandarin Oriental, Guangzhou (left). Mandarin
Oriental, Las Vegas’ fan (below) is an original
silk painting created by Chinese-American artist
Eric Jiaju Lee. Proudly displayed in the 23rd
floor Sky Lobby, the artwork is a pastiche ofvibrant colours inspired by the surrounding
Red Rock canyons and the sparkle of the hotel’slocation on the Las Vegas Strip.

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Founded in 1963, the Asian Cultural
Council (ACC) supports transformative
cultural exchange by awarding grants
to Asian and American artists, scholars,
and organisations for creative workand study in the United States andAsia. Since 2005, Mandarin Oriental
Hotel Group has partnered with the
ACC on a dedicated Fellowship forthe preservation of indigenous arts,
cultures and traditions of Asia.

Through her Mandarin Oriental
Fellowship, Koh was also inspired
to create another project, Bridge to
Beethoven, which is a cross-cultural
exploration of Beethoven’s influence
on composers coming from nonWestern cultures, with commissions
from composers ranging from Anthony
Cheung to Vijay Iyer.
“Mere words cannot express mygratitude to the Asian Cultural Council
and Mandarin Oriental for this lifechanging experience, and I am eager
to continue my research next year
when I pursue the second part of myfellowship”, said Koh.

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

P HOT OGRAPH BY JU ERGEN FRANKKoh stated that her time in Asia has
resulted in a new work with the director
Robert Wilson, which will be a larger
piece about the birth, development
and death of an artist. Koh said,“The idea of ‘birth’, or the place andculture that one comes and begins
from, is a starting point for this work,
which will open at the Louvre in Parisin November 2013. The question of‘beginning’ and the idea of ‘becoming’
run parallel to the ideas of ‘gathering’and ‘collecting’ influences that form theartists we are now, and will be”.

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

In 2012, the Mandarin Oriental
Fellowship was awarded to KoreanAmerican violin virtuoso Jennifer Koh,who embarked on an intensive journey
to explore shaman ritual and musicaltraditions in Korea. Koh spent two
weeks working with Professor Jongsun
Yang, former head of the National
Folklore Museum of Korea, who took her
to several ancient shrines in and nearSeoul. Koh also travelled to Cambodia
and Vietnam to attend several concertsof traditional dance and music, and she
visited a number of Buddhist temples.

D EL IVERIN G EXC EL L EN C E

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

49

Jennifer Koh

50

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SUSTAINABILITY FANS

Mandarin Oriental, Sanya
Shares the Way of the Shaolin
Within its Spa operation, Mandarin Oriental, Sanya employs an esteemed Shaolin monk,
Master Hu, a specialist in ancient Chinese healing practices. Born and raised in Henan
Province, Master Hu began training in Shaolin Kung Fu as a child. Master Hu’s family is
steeped in the traditions of Shaolin; his father, his aunt and uncles all practice Shaolin Kung
Fu whilst his uncle, Grand Master Shi De Yu, is one of China’s most distinguished authorities
in the Shaolin and Sanda martial arts field.
Through classes offered at Mandarin Oriental, Sanya, Master Hu helps educate guests
on the principles of Zen meditation and the benefits of Tai Chi, Qigong, Shaolin Kung
Fu and the art of the Tea Ceremony. In an effort to share Master Hu’s knowledge withother Mandarin Oriental guests, the Group invited Master Hu to visit the United States
for three weeks in the fall of 2012. During his visit, Master Hu led exclusive workshops inChinese healing arts, offering guests the opportunity to practice with a genuine master.
These one-of-a-kind sessions surprised and delighted guests, leaving them with lasting,positive impressions of their experiences. Notably, Master Hu was sought out by a couple
celebrating their anniversary at Mandarin Oriental, Boston to perform a Tea Ceremony
and the Qi Gong and Meditation session. The hotel was delighted to arrange this special
opportunity for the couple, who were thrilled to have Master Hu as part of their celebration.
Master Hu’s visit was so successful that the Group’s spa division intends to continue similarcolleague cultural exchange programmes in future.

Regarding his experience teaching guests outside of
China, Master Hu said, “People are the same all over
the world. Zen meditation helps everyone’s body andmind, so the more people who experience it, the better”.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Master Hu

52

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 2Community Programmes
Mandarin Oriental hotels contribute to their local communities with more than philanthropic support. Our colleagues areencouraged to participate directly, whether through volunteering, fundraising or coordinating events for local charitablecauses. This section highlights many of the important community initiatives from our hotel colleagues, who are helping tobuild a brighter future in their communities.

Mandarin Oriental, Jakarta
Educates and Empowers Local Kids
During Ramadan, Mandarin Oriental, Jakarta invited street children from thenon-profit organisation Yayasan Sahabat Anak to learn about the inner workingsof a hotel. On 10 August 2012, 25 children (ages 12 to 17) shadowed hotelcolleagues performing a range of daily activities—from ensuring safety for all
guests from the hotel’s security manager to decorating a cake with a chef. In all,150 colleagues volunteered their time to help with this effort to empower andeducate the local children.

Community Service at Mandarin Oriental, Bangkok
Mandarin Oriental, Bangkok has been active in charitable causes in its community
for decades. The legendary hotel has held an annual community service event
since 1982, which has included assistance to needy schools in Thailand, building
libraries to further enhance Thai children’s education, donating materials foreducational and vocational purposes, as well as assistance with infrastructure andbuilding improvements.
In 2012, Mandarin Oriental, Bangkok collected over US$9,000 in colleague
donations to renovate a new dining canteen for students of Baan Nhong Don
School, Tambol Nhongdon, Amphur Nhongdon Saraburi province. The school’s oldcanteen had nearly collapsed, with buckled ceilings and a tattered roof. With thehelp of 80 volunteers from the hotel, the new canteen was officially delivered to theschool on 6 October 2012, much to the delight of the students.

Mandarin Oriental Hyde Park, London
and Macmillan Cancer Support
From its early beginnings, founded in 1911 by Douglas
Macmillan, Macmillan Cancer Support has grown to become thelargest cancer care and support charity in the United Kingdom.
In December 2012, Mandarin Oriental Hyde Park, London
partnered with Harrod’s department store to bring holiday
cheer to families in the Macmillan Cancer network with a festive
evening at the hotel. Invited to a special reception to meet
Harrod’s Father Christmas, parents and children helped hotelcolleagues decorate gingerbread houses, whilst enjoying a hostof culinary treats and handmade sweets. Most importantly, thechildren met with Father Christmas and received a special gift,
fulfilling their holiday dreams.

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

53

A Chacun son Everest! aids children coping with cancer or leukemia throughguided mountain camping experiences. Far more than a week’s holiday,
the camp is a true expedition of discovery, in which each activity is a step
towards the final goal: reaching his or her summit—their own Mount Everest.
Founded in 1994, the charity organises 15 to 20 camps in Chamonix eachyear for approximately 250 children and teenagers, in groups of 12 to 15
per week. Recently, the organisation expanded its mission to assist women
diagnosed with breast cancer.

D EL IVERIN G EXC EL L EN C E

Mandarin Oriental, Parisand ‘A Chacun son Everest!’

Colleagues at Mandarin Oriental, Paris have proudly supported A Chacun Son
Everest! through various fundraising activities held throughout 2012, which
resulted in a EUR$7,000 donation for the charity. General Manager Philippe
Leboeuf is also on the board of A Chacun Son Everest!, and has enlisted
the support of several luxury hotels in Paris to support this worthy charitableorganisation.

The Miami Rescue Mission is a non-profit organisation
dedicated to transforming the lives of homeless people,
providing bed nights and meals to thousands of people
each year. To support the Mission’s important work in thecommunity, colleagues from Mandarin Oriental, Miami
volunteered throughout 2012 one evening each month toserve food to homeless men, women and children. Hotelcolleagues also supported the charity through clothing
donations, including a tennis shoe drive to provide
children in need with new sneakers. During the monthof November, Mandarin Oriental, Miami also hosted anannual food drive for the holiday season. The activities
sponsored by Mandarin Oriental, Miami helped raise over
US$2,500 for the Miami Rescue Mission in 2012.

To help the victims of Hurricane Sandy, Mandarin Oriental, New York
organised a “Lend a Hand” colleague volunteer programme in November
2012 to benefit The Robin Hood Foundation. For more than 20 years, Robin
Hood has fought poverty in New York City, and the charity launched a largescale relief effort immediately after Hurricane Sandy to aid its neighbours
in the tri-state area whose lives were affected by the storm. Colleagues at
Mandarin Oriental, New York were at the ready to assist, travelling to various
non-profits across New York City in order to provide blankets, food, clothing
and more to residents in need. In addition to their volunteer hours, Mandarin
Oriental, New York raised over US$4,000 for Robin Hood. Mandarin Oriental
Hotel Group was delighted to further contribute to the hotel’s fundraisingefforts with a US$10,000 donation to assist in Robin Hood’s Hurricane Sandy
recovery efforts.

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

Mandarin Oriental, New York
Lends a Hand for Hurricane Sandy Recovery

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

Mandarin Oriental, Miami
Helps Serve the Homeless

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Mandarin Oriental,
Las Vegas Partners
with Clean the World

Community
Programmes

In 2012, Clean the World opened
their Las Vegas Recycling
Operation Center providing soap
across the United States and toover 50 countries worldwide. This
new facility acts as a collecting
point for gently used hotel
amenities from all over the westernregion of the United States,
including Mandarin Oriental, Las
Vegas. The hotel has diverted over
1,750 pounds of unused products
from disposal for donation to
Clean the World, resulting in 6,000
new bars of soap for distribution
to children and families worldwide.

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

SAN FRANCISCOLAS VEGAS

BERMUDA

Mandarin Oriental,
San Francisco
Renovates and Reuses
for a Good Cause
In May 2012, Mandarin Oriental,
San Francisco successfullycompleted a major renovation
giving a new face to the first
Mandarin Oriental property
in the Americas. During therenovation, the hotel did not let
its former supplies go to waste.
The hotel’s linen, bedding andamenities were donated toLarkin Street Youth Services,
the city’s leading provider ofoutreach and emergency shelter,
primary medical care, transitional
housing and job training for at
risk youth in San Francisco.

Elbow Beach, Bermuda’s
General Manager Gets
‘Locked Up’ for Charity
Elbow Beach, Bermuda General
Manager Edward Shapard took
part in the island’s ‘Celebrity
Lock-Up’ 2012, an annual
charitable event that ‘detains’
notable personalities in Bermuda.
Mr Shapard volunteered his timeand raised money for “bail” tobenefit PRIDE Bermuda, a nonprofit organisation that educatesand empowers young people
about healthy lifestyle choices
regarding drugs and alcohol.

55

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

Mandarin Oriental,
Barcelona Makes Dreams
Come True with
The Wishing Tree
During the Three Kings holiday,
Mandarin Oriental, Barcelona
made dreams come true forchildren in shelters throughout
Catalonia with the hotel’s WishingTree. In conjunction with the Soñar
Despierto Foundation, colleagues
set up a special holiday tree in the
hotel’s lobby that featured letters
containing wishes from homelesschildren. The hotel invited guests
to read the letters and welcomed
them to either purchase a present
or offer a monetary donation.
From 1 December 2012 to
5 January 2013, The Wishing Treecollected more than US$1,500,
helping dozens of children’s
holiday wishes come true.

Mandarin Oriental,
Hong Kong
Participates in the
Oxfam Trailwalker 2012
On 16 November 2012, colleagues
from Mandarin Oriental, Hong
Kong took part in the annual
Oxfam Trailwalker. Four colleagues
powered through the combined
100km course to help raise money
for Oxfam’s poverty alleviationand emergency relief projects in
Africa and Asia. The team from
Mandarin Oriental, Hong Kong
completed the race at a time of
28 hours and 29 minutes—all inan effort to support one of thelargest fundraising sporting eventsin Hong Kong, which has raised
HK$365 million (US$47 million)
since its start in 1986.

BARCELONA

HONG KONGSANYAKUALA LUMPUR

Mandarin Oriental,
Kuala Lumpur Helps
Rebuild Orphanages
Colleagues at Mandarin Oriental,
Kuala Lumpur gave a helping
hand to rebuild two local
orphanages, Rumah Jalinan
Kasih and Rumah Kanak-Kanak
Cacat Taman Megah. On 20 and
21 December 2012, more than 30
hotel colleagues came together tobuild a new roof, repair tiles andrepaint walls at Rumah Jalinan
Kasih. Volunteers also donatedelectronics and educational
games for handicapped children
to enjoy at Rumah KanakKanak Cacat Taman Megah.

Mandarin Oriental, Sanyaand Yingmai Primary School
Mandarin Oriental, Sanya teamed
up with Yingmai Primary School of
Wuzhishan Mountain to offer local
children a fun-filled experienceat the resort’s MO Kid’s Camp.
On 22 December 2012, the hotel
invited five students (ages 4–12)
from Yingmai Primary School
to delight in a host of games
and recreational activities. In
addition, Mandarin Oriental,
Sanya donated 300 books tothe school’s mobile library.

56

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

SUSTAINABILITY FANS

Mandarin Oriental, Washington D.C.’s“FANtastic March”
Colleagues at Mandarin Oriental, Washington, D.C. are giving back to the community inSouthwest D.C. through their “FANtastic March”, an annual 5K run/walkathon held each
September to raise funds for local charities. In 2012, the hotel dedicated its “FANtastic
March” fundraising activity to benefit the local Amidon-Bowen Elementary School, andspecifically the school’s levelled library. The school has approximately 300 children attending
kindergarten through sixth grade, and its levelled library includes enough books at every
grade level to support a full reading curriculum. With colleague and community donations,in addition to a US$10,000 grant from Mandarin Oriental Hotel Group, the hotel’s 2012
FANtastic March event raised more than US$40,000 for the school, bringing books and newlearning opportunities to children in the community.

Director of Communications Linda Beltran says, “At
Mandarin Oriental, Washington D.C., we are committed
to providing delightful experiences to our guests andalso to making a lasting contribution in our community
in Southwest D.C. The FANtastic March is a great reflection of ourcolleagues’ passion to do more for a sustainable future. We’re proud
to go that extra mile for guests and for our community”.

57
Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

D EL IVERIN G EXC EL L EN C E

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

C HA M P ION IN G C OM MU N IT Y

Linda Beltran

58

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

F UTU RE D IRE CTIONSHaving achieved several of our short-term environmental goals in 2012,
we are encouraged by our progress, but recognise that there is still a great
deal more to do on our sustainability journey.
We will continue to collaborate with our hotels on ways to increaseenergy efficiency, reduce carbon emissions, conserve water and eliminate
waste. In 2013, every hotel in the Group will receive individual short-term
environmental goals that will help us monitor progress, identify challenges
and take corrective action where necessary to ensure we meet our broader
environmental objectives. The final implementation of environmental data
management systems across our hotels in 2013 will greatly assist ourhotels in tracking their performance and meeting our targets.
Our colleagues remain our most important resource in achieving oursustainability goals, and we are expanding employee engagement throughthe launch of our Group-wide sustainability training in 2013.
As ever, stakeholder feedback supports our on-going efforts to improve our
performance and to provide more transparent communication. If you’d liketo share your views on our sustainability progress and on this report, pleasecontact our corporate responsibility team at sustainability@mohg.com.

59

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

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

MANDARIN ORIENTAL, BOSTON
Massachusetts Lodging Association
Award for One Time Events
Received in March 2012 for the
Celebrate China Family Cultural Day
with the Peabody Essex Museum.

MANDARIN ORIENTAL, KUALA LUMPUR
ISO 14001
Certified since 2003

MANDARIN ORIENTAL, KUALA LUMPUR
Malaysian Ministry of Tourism “Green Award 2012”
Its criteria cover multiple
environmental and social criteria.
THE SPA AT MANDARIN ORIENTAL, LAS VEGAS
SpaFinder Reader’s Choice 2011,
Best in Environmental Practices
One of the top 10 spas nominated by the public(www.spafinder.com/rca).
MANDARIN ORIENTAL, SANYA
Five Gold Leaf Grade “China Green
Hotel” by the National Green Hotel
Committee and China Association
Only eight hotels in Hainan received this award for
2010–2014, which is awarded for a hotel’s priorities
on environmental conservation, green programmes,
food safety and hygiene, and energy efficiency in its
longstanding commitment to the environment.
MANDARIN ORIENTAL, WASHINGTON D.C.
Award for Community Service in2012 Stars of the Industry Awards byHotel Association of Washington D.C.
Awarded for programmes that demonstrate thatthe individual property is responsive to the local
community. Examples include campaigns to benefit
local or national service organisations or charities,
service to any part of the community througha special project, and joint undertakings with
community groups for the benefit of the area.

MANDARIN ORIENTAL, LAS VEGAS
LEED Gold
LEED Gold Certification after third-party
verification of the buildings’ green design
and performance in multiple categories.
MANDARIN ORIENTAL, PARIS
HQE certification
First hotel to get the operational HQE certification.
The certification builds on 14 criteria of eco-design,
eco-management, comfort and health.
MANDARIN ORIENTAL, ATLANTAGREENGUARD Building Construction Certification
Certified since 2008, the GreenGuard building
certification ensures that construction
materials are certified safe for occupants.
MANDARIN ORIENTAL, MIAMIGreen Hotel by the Florida
Green Lodging Programme
Certified since 2009, the hotel has implemented a
specified number of environmental practices in thesix areas of communication and education, waste
reduction, reuse and recycling; water conservation;energy efficiency; indoor air quality; transportation.
MANDARIN ORIENTAL, TOKYOTop 30 Low Emission Building
Certification awarded in April 2011 to buildings withleast energy consumption. Items were checked inrelation to the energy performance, operation andmanagement of the facilities and building.

A P P EN DI C ES

Sustainability Awards and Certifications

60

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

GRI Index
KEY

FULL COVERAGE

INDICATORPAR TIAL COVERAGEDESCRIPTIONSTATUS

LOCATION

1.1

Statement from the most senior decision-maker of the organization.

Introduction (p. 4)

2.1

Name of the organisation.

Introduction (p. 3)

2.2

Primary brands, products, and/or services.

Introduction (p. 3)

2.3

Operational structure of the organisation, including main divisions,operating companies, subsidiaries, and joint ventures.

Introduction (p. 3)

2.4

Location of organisation’s headquarters.

Introduction (p. 3)

2.5

Number of countries where the organisation operates, and names of countries with either major
operations or that are specifically relevant to the sustainability issues covered in the report.

Introduction (p. 2)

2.6

Nature of ownership and legal form.

Introduction (p. 3)

2.7

Markets served (including geographic breakdown,
sectors served, and types of customers/beneficiaries).

Introduction (p. 3)

2.8

Scale of the reporting organisation.

Introduction (p. 3)

2.9

Significant changes during the reporting period regarding size, structure, or ownership.

Introduction (p. 5)

2.10

Awards received in the reporting period.

Appendix (p. 57)

3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

Introduction (p. 5)

3.2

Date of most recent previous report (if any).

Introduction (p. 5)

3.3

Reporting cycle.

Introduction (p. 5)

3.4

Contact point for questions regarding the report or its contents.

3.5

Process for defining report content.

Introduction (p. 5)

3.6

Boundary of the report.

Introduction (p. 5)

3.7

State any specific limitations on the scope or boundary of the report

Introduction (p. 5)

3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities,
outsourced operations, and other entities that can significantly affectcomparability from period to period and/or between organizations.

Annual Financial Report (p. 34),
Appendix

3.9

Data measurement techniques and the bases of calculations, including
assumptions and techniques underlying estimations applied to the compilationof the Indicators and other information in the report. Explain any decisions
not to apply, or to substantially diverge from, the GRI Indicator Protocols.

Introduction (p. 5)

3.10

Explanation of the effect of any re-statements of information provided in earlier
reports, and the reasons for such re-statement (e.g., mergers/acquisitions,change of base years/periods, nature of business, measurement methods).

Introduction (p. 5)

3.11

Significant changes from previous reporting periods in thescope, boundary, or measurement methods applied in the report.

Introduction (p. 5)

3.12

Table identifying the location of the Standard Disclosures in the report.

GRI Index (p. 58)

3.13

Policy and current practice with regard to seeking external assurance for the report.

Introduction (p. 5)

4.1

Governance structure of the organisation, including committees
under the highest governance body responsible for specifictasks, such as setting strategy or organisational oversight.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

4.3

For organisations that have a unitary board structure, state
the number and gender of members of the highest governancebody that are independent and/or non-executive members.

Annual Financial Report(p. 81–82)

4.4

Mechanisms for shareholders and employees to provide
recommendations or direction to the highest governance body.

Annual Financial Report (p. 83)

4.6

Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Annual Financial Report (p. 81)

4.8Internally developed statements of mission or values, codes ofconduct, and principles relevant to economic, environmental, andsocial performance and the status of their implementation.

4.9

Procedures of the highest governance body for overseeing the organisation’s
identification and management of economic, environmental, and social performance,
including relevant risks and opportunities, and adherence or compliance withinternationally agreed standards, codes of conduct, and principles.

4.14

List of stakeholder groups engaged by the organisation.

Introduction (p. 7)

4.15

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

Introduction (p. 7)

Future Directions (p. 56)

Annual Financial Report(p. 79–83)
Annual Financial Report (p. 79)

Introduction (p. 6)

Annual Financial Report(p. 81–82)

61

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

FULL C OVERAGE

INDICATORPAR TIAL COVERAGEDESCRIPTIONSTATUS

LOCATION

EC1

Direct economic value generated and distributed, including revenues, operating
costs, employee compensation, donations and other community investments,
retained earnings, and payments to capital providers and governments.

EC2

Financial implications and other risks and opportunities
for the organization’s activities due to climate change.

Advancing Sustainability (p. 30)

EC3

Coverage of the organization’s defined benefit plan obligations.

Annual Financial Report (p. 39)
Appendix

EC4

Significant financial assistance received from government.

EC7

Procedures for local hiring and proportion of senior management hiredfrom the local community at significant locations of operation.

EN3

Direct energy consumption by primary energy source.

Advancing Sustainability (p. 33)

EN4

Indirect energy consumption by primary source.

Advancing Sustainability (p. 33)

EN5Energy saved due to conservation and efficiency improvements.

Advancing Sustainability (p. 32)

EN6

Initiatives to provide energy-efficient or renewable energy based products
and services, and reductions in energy requirements as a result of these initiatives.

Advancing Sustainability (p. 32)

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

Advancing Sustainability (p. 32)

EN8Total water withdrawal by source.

Advancing Sustainability(p. 43–44)

EN16

Total direct and indirect greenhouse gas emissions by weight.

Advancing Sustainability(p. 36–37)

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

Advancing Sustainability(p. 35, 37)

EN22

Total weight of waste by type and disposal method.

Advancing Sustainability (p. 39)

EN26

Initiatives to mitigate environmental impacts of products
and services, and extent of impact mitigation.

Advancing Sustainability (p. 31)

LA1

Total workforce by employment type, employment
contract, and region, broken down by gender.

Appendix (p. 61)

LA2

Total number and rate of new employee hires and employee
turnover by age group, gender, and region.

Appendix (p. 62)

LA3

Benefits provided to full-time employees that are not provided totemporary or part-time employees, by major operations.

Delivering Excellence (p. 13)

LA7

Rates of injury, occupational diseases, lost days, and absenteeism,and number of work-related fatalities by region and by gender.

Delivering Excellence (p. 21),
Appendix (p. 63)

LA11

Programmes for skills management and lifelong learning that support the continued
employability of employees and assist them in managing career endings.

LA12

Percentage of employees receiving regular performanceand career development reviews, by gender.

Delivering Excellence (p. 17)

LA13

Composition of governance bodies and breakdown of
employees per employee category according to gender, age group,
minority group membership, and other indicators of diversity.

Delivering Excellence (p. 13)LA15Return to work and retention rates after parental leave, by gender.

Delivering Excellence (p.12)

HR3

Total hours of employee training on policies and procedures concerning aspects of humanrights that are relevant to operations, including the percentage of employees trained.

Introduction (p. 6)

HR8Percentage of security personnel trained in the organisation’s policies orprocedures concerning aspects of human rights that are relevant to operations.

Introduction (p. 6)

SO8

Monetary value of significant fines and total number of non-monetary
sanctions for non-compliance with laws and regulations.

PR1

Life cycle stages in which health and safety impacts of products andservices are assessed for improvement, and percentage ofsignificant products and services categories subject to such procedures.

Delivering Excellence(p. 20–21)

PR3Type of product and service information required by procedures, and percentage ofsignificant products and services subject to such information requirements.

Delivering Excellence(p. 26–27)

PR5

Practices related to customer satisfaction, including
results of surveys measuring customer satisfaction.

Appendix (p. 60)

Appendix (p. 60)
Delivering Exellence (p. 13)

Delivering Excellence(p. 16–17)

Delivering Excellence (p. 21),
Advancing Sustainability (p. 31)

Delivering Excellence (p. 11)

A P P EN DI C ES

KEY

62

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

Direct Economic Value Generated and Distributed
DIRECT ECONOMIC VALUE GENERATED AND DISTRIBUTED (US$ MILLION)

2010

2011

2012

Combined Total Revenue1

1025.51196.41283.3

EBITDA 2

136.4

163

174.6

Direct Value Generated (Revenue)

513.2

614.2

648.3

Cost of sales

326.6

377.3

415.2

Employee wages & benefits

195.2

223.8

242.5

Payments to providers of capital (dividends & financing)

82.3

61.8

71.0

- Dividends paid

69.2

49.8

59.9

- Financing

13.1

12

11.1

Payments to governments 3 (including taxes)

12

19

17.7

Community Investments 4

-

-

-

 ombined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate and managed hotels
C
EBITDA of subsidiaries plus the Group’s share of EBITDA of associates
No governments are significant stakeholders in the shares of the Group.
4
Not yet tracked
1
2
3

63

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

TOTAL WORKFORCE

MALE

%

FEMALE%TOTAL

By Region

6,658

55%

5,423

45%

12,081

Asia

4,150

56%

3,238

44%

7,388

61%

Europe

981

57%

744

43%

1,725

14%

The Americas

1,474

52%

1,353

48%

2,827

23%

53

38%

88

62%

141

1%

Full-time

6,103

56%

4,703

44%

10,80689%

Part-time

161

37%

272

63%

433

4%

Casual

394

47%

448

53%

842

7%

Line Staff

4,995

55%

4,094

45%

9,089

75%

Management

1,331

56%

1,042

44%

2,373

20%

Executive

166

61%

106

39%

272

2%

Other (Casual)

166

48%

181

52%

347

3%

Under 30

2,265

52%

2,059

48%

4,324

36%

30 to 50

3,454

56%

2,664

44%

6,118

51%

Over 50

939

57%

700

43%

1,639

14%

4,234

55%

3,434

45%

7,668

63%

Europe

955

58%

681

42%

1,636

14%

North America

1,070

51%

1,014

49%

2,084

17%

South America

153

54%

128

46%

281

2%

Africa

92

58%

68

43%

160

1%

Oceania

18

64%

10

36%

28

0%

Other

136

61%

88

39%

224

2%

EXECUTIVE TEAM & BOARD OF DIRECTORS 1

MALE

%

FEMALE

%

TOTAL

%

By Age Group

12

86%

2

14%

14

Under 30

-

-

-

-

-

-

30 to 50

5

100%

0

0%

5

36%

Over 50

7

78%

2

22%

9

64%

Europe

9

90%

1

10%

10

71%

North America

2

67%

1

33%

3

21%

Oceania

1

100%

0

0%

1

7%

Corporate%

By Employment Contract

By Colleague Category

By Age Group

By Nationality
Asia

By Nationality

1

Executive Team & Board of Directors are also included in the total workforce values.

A P P EN DI C ES

Total Workforce

64

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

Turnover
NEW EMPLOYEES

MALE

%

FEMALE%TOTAL% OF TOTAL

Employees by Age Group

1,926

53%

1,717

47%

3,643

30%

Under 30

1,196

52%

1,107

48%

2,303

63%

30 to 50

667

55%

552

45%

1,219

33%

Over 50

63

52%

58

48%

121

3%

Employees by Region

1,926

53%

1,717

47%

3,643

30%

Asia

1,221

55%

1,004

45%

2,225

61%

Europe

388

51%

376

49%

764

21%

The Americas

311

49%

324

51%

635

17%

Corporate

6

32%

13

68%

19

1%

TOTAL TURNOVER

MALE

%

FEMALE%TOTAL% OF TOTAL

Separations by Age Group

1,882

52%

1,733

48%

3,615

Under 30

969

50%

977

50%

1,946

54%

30 to 50

796

58%

582

42%

1,378

38%

Over 50

117

40%

174

60%

291

8%

Separations by Region

1,882

52%

1,733

48%

3,615

Asia

1,187

53%

1,065

47%

2,252

62%

Europe

397

53%

347

47%

744

21%

The Americas

293

49%

300

51%

593

16%

Corporate

5

19%

21

81%

26

Turnover Rate by Age Group

28%

32%

1%
30%

Under 30

43%

47%

45%

30 to 50

23%

22%

23%

Over 50

12%

25%

18%

29%

33%

30%

Turnover Rate by Region
Asia
Europe

40%

47%

43%

The Americas

20%

22%

21%

Corporate

9%

24%

18%

65

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

PERFORMANCE INDICATORUNITREGION

2008

2009

2010

2011

2012

91.0

90.0

89.3

90.3

89.8

Safe Sound & Sustainable
Audit Results% Compliance

Lost Time Incident Rate

Lost time Incidents /100 employees

Lost Time Incident Severity Rate

Severity of incidents /100 employees

ALL

3.77

3.21

2.73

2.90

2.46

Asia

4.19

2.99

2.86

3.04

2.40

Europe

3.93

4.20

2.27

3.91

4.58

The Americas

2.26

3.46

2.56

1.90

1.16

ALL

34.11

25.25

19.49

24.27

24.59

Asia

37.60

22.44

17.62

23.54

23.05

Europe

51.75

45.87

29.18

36.37

42.49

The Americas

11.74

24.83

20.40

20.57

16.96

A P P EN DI C ES

Health & Safety Incidents: Audit Results

66

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

Environmental Performance Summary
PERFORMANCE INDICATOR

UNIT

2007

2008

2009

2010

2011

2012

Absolute Energy
Consumption(Actual)GJ

1,248,657

1,209,820

1,214,568

1,266,972

1,306,858

1,326,280

MMBTU

1,183,499

1,146,688

1,151,188

1,200,858

1,238,662

1,257,071

Absolute Energy
Consumption(Baseline)

GJ

1,248,657

1,237,276

1,309,186

1,376,523

1,440,084

1,482,931

MMBTU

1,183,499

1,172,712

1,240,869

1,304,692

1,364,936

1,405,548

Energy Intensity(Actual)

MJ/m

2

1,798

1,741

1,596

1,598

1,612

1,609

MMBTU/ft2

0.158

0.153

0.143

0.141

0.142

0.142

EnergyEmissionsAbsolute Emissions(Actual)Absolute Emissions(Baseline)
Emission Intensity(Actual)tons (metric) of CO2-e

152,496

146,545

149,941

156,323

161,744

157,133

tons (US) of CO2-e

168,096

161,537

165,280

172,315

178,290

173,208

tons (metric) of CO2-e

152,496

149,521

159,723

167,825

176,451

179,189

tons (US) of CO2-e

168,096

164,817

176,063

184,993

194,502

197,520kg CO2-e/m2

220

211

200

197

200

191

lb CO2-e/ft2

45.0

44.1

43.7

43.4

44.6

44.5

2,261,096

2,028,078

1,873,433

2,001,394

2,224,643

2,224,456

597

536

495

529

588

588

2,261,096

2,150,421

2,087,630

2,224,169

2,340,738

2,326,235

597

568

552

588

618

615

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

m3
million gallons (US)m3
million gallons (US)litres/guest night
gallon (US)/guest night

988

970

971

885

907

901

260,986

256,246

256,567

233,899

239,600

238,074

Waste
Total Waste

Diverted Waste

Waste Landfill Intensity
Diversion Rate

kilograms

6,928,558

pounds15,274,856

kilograms

1,140,443

pounds2,514,225

kilograms

3.19

pounds

7.03

percent

17%

Operational Data
Total Air Conditioned Area
Total Guest Nights

m2

694,297695,051

749,343792,823

810,723

824,543ft2

7,473,343

7,481,459

8,065,853

8,533,867

8,726,541

8,875,298

2,515,601

2,290,443

2,140,056

2,490,061

2,721,495

2,772,109

Mandarin Oriental, Las Vegas is not included in energy, emissions and water consumption figures due to incomplete data. The majority of theenergy consumption is part of a major mixed used facility and we are currently unable to extract the data relevant to the hotel.
Mandarin Oriental hotels in Bangkok, Chiang Mai, Sanya and Las Vegas are excluded from water consumption data. In general, properties havebeen excluded if the data is distorted by major changes or abnormally high values (where, for example, irrigation is included).
Mandarin Oriental hotels in Hong Kong, Manila, Bangkok, Chiang Mai, Sanya, London, San Francisco, and Las Vegas, as well as The Grand Lapa,
Macau and The Landmark Mandarin Oriental, Hong Kong are not included in waste figures, due to incomplete data.

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67

Delivering Excellence
1	Mandarin Oriental, Atlanta is included in all employment analyses except turnover in this section, as the hotel had notbeen operational for a full year at the time of calculation.
2	Compensation Force “2012 Turnover Rates by Industry”, 2012. http://www.compensationforce.com/2012/09/2012turnover-rates-by-industry.html
3	United States Bureau of Labor Statistics, Leisure and Hospitality Rate, 2011 (the most recent year of data available).
http://www.bls.gov/iag/tgs/iag70.htm

Advancing Sustainability
1	Earth Guest Research. “Sustainable Hospitality: Ready to Check In”. June 20112	Reductions in energy use, greenhouse gas emissions and water use—are calculated as the difference between theabsolute performance in the current year and a “baseline” value, which assumes that no measures have been taken
to increase efficiency since the reference year 2007. The baseline is corrected for variable factors such as occupancy,
weather or number of meals served, to ensure that data is comparable from year to year. The method we developed
follows the guidelines established by the International Performance Measurement and Verification Protocol (IPMVP).
3	Renewable Energy Certificates (RECs) are included in the emission calculations.
4	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.
5	Emissions from stationary combinations, such as boilers, have been based on the Greenhouse Gas Protocol Cross
Section Tools.
6	Electricity emission factors for properties outside the U.S. have been obtained from the International Agency. Electricity
emission factors for U.S. properties have been based on the eGrid of the US Environmental Protection Agency (EPA).
7	Chilled water purchased from external sources such as district or centralised cooling has been converted to energy
and emissions using the simplified approach for electric-driven compressor and a COP of 4.2 as defined by California
Climate Change Registry.
8	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	Mandarin Oriental hotels in Hong Kong, Manila, Bangkok, Chiang Mai, Sanya, London, San Francisco and Las Vegas
as well as The Grand Lapa, Macau and The Landmark Mandarin Oriental, Hong Kong are not included in waste figuresdue to incomplete data. Some hotels that have reported on waste generation in 2012 have switched to a central waste
collection in a shared facility, and are currently unable to retrieve waste related data.
10	http://www.topnews.in/malaysia-bemoans-low-recycling-rate-2129412
11	Hotels in Bangkok, Chiang Mai, Sanya and Las Vegas are not included in water consumption figures.
12	The mandatory minimum dimensions of an Olympic-size swimming pool are 50 metres in length, 25 metres in width and2 metres in depth, which results in a volume of 2500 m3 as in http://en.wikipedia.org/wiki/swimming_pool#cite_note-21.

A P P EN DI C ES

Footnotes

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A SSU RA N C E D OC UMENTATION

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

Man darin Orien t al H otel Group Sustainab ility Rep or t 2012

69

A P P EN DI C ESMandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

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