mandarin oriental hotel group2010 Sustainability ReportMandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

www.mandarinoriental.com

2

About this Report3

Commitments and Standards

4

About Mandarin Oriental Hotel Group

5

Advancing Sustainability

8

Energy Management

9

Reducing Emissions

11

Water Consumption and Efficiency

20

Waste Minimization

24

Biodiversity

29

Environmental Performance Summary

32		

Championing Community

36

Cultural Heritage37

Outreach and Community Education

40

Community Programmes

41	Delivering Excellence	 46
Responsibility and Respect

47

Fair Operating Practices

47

	Labour Practices and Colleague Diversity

48

	Learning and Development Opportunities

49

Compliance, Safety and Security

50

Guest Satisfaction and Loyalty

52

Product Responsibility and Materials Management

53

Future Directions	 57

Global Reporting Initiative (GRI) Indicators Index

58

Awards63

www.mandarinoriental.com

tab le o f c o ntents

Message from the CEO22010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Message from the CEO
I am pleased to present Mandarin Oriental’s first Sustainability Report, focusing on the Group’s environmental
and community achievements to date. These achievements are based upon many of our ‘guiding principles’,
which include: cting with responsibilityA
We will actively participate in the improvement of the environment, just as we will be responsible members of
our communities and industry organisations.
Playing by the rules
We will maintain integrity, fairness and honesty in both our internal and external relationships and will consistently
live up to our commitments.
Being the best
We will be an innovative leader in the hotel industry and will continually improve our products and services.
The goal of this report is to encourage internal collaboration between colleagues, and to engage our stakeholders
in our efforts to improve our performance and contribute to a more sustainable world.
As a responsible luxury hotel company, we are committed to energy efficiency and to reducing our carbon
emissions. To this end, we have joined with the World Travel & Tourism Council in an industry wide commitment to
the reduction of greenhouse gas emissions. We are also actively involved in supporting the local communities inwhich we operate, as well as in preserving cultural heritage.
Through innovation and a commitment to continuous improvement, we are well on our way to becoming the bestinternational luxury hotel group in the world.
I look forward to working with all of you on these and other initiatives, as we move toward a more sustainable future.

Edouard EttedguiGroup Chief Executive

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

About this Report
This inaugural sustainability report is designed to
inform, educate and engage our colleagues on
Mandarin Oriental’s corporate responsibility values,
performance and goals going forward. Like any
successful business endeavour, it takes focus andresources to achieve good results. That’s why,in 2009, the Group recruited leaders throughout
the organisation to form our Sustainability Team,
under the direction of the Group’s sustainability
champion, Terry Stinson, Group Development Director and President of the Americas.
The team’s task was to assess the Group’s impact, successes and challenges in the areaof sustainability. An external advisor provided an expert assessment to independently
evaluate our strengths, gaps, and provide benchmarking that helped chart our course.
This report represents Mandarin Oriental Hotel Group’s collective accomplishments andprogrammes to advance sustainability, to champion the communities in which we operate
and to deliver excellence. It also illustrates challenges and opportunities for the future. Forus, sustainability is about caring for the environment, now and for generations to come. In
everything we do, we strive to create value for our stakeholders by enhancing environmental
quality and the communities where we operate.

Sustainability: “Meeting the needs of the present
generation without compromising the ability of
future generations to meet their own needs.”—United Nations World Commission on Environmentand Development, Report on “Our Common Future” 1987,
commonly known as the Brundtland Report

This report was prepared to be consistent with the Global Reporting Initiative (GRI)
sustainability reporting methodology. GRI pioneered the world’s most widely usedsustainability reporting framework, and the organisation’s core goals include themainstreaming of disclosure on environmental, social and governance performance.
A GRI indicator index is included as an attachment to this report.

Scope and Boundaries
This report provides trend analysis of recent performance and presents initiatives undertakenfrom 2007-2010. This includes all of our hotel operations, with the exception of residences.
Impacts from our operations and products are included in this initial report; the inclusion ofvendor and supplier information will be evaluated in future reporting.
This 2010 report is addressed to our valued colleagues; it is for internal use only. We
will prepare an external report for 2011 for all of our stakeholders. We seek to motivate
everyone in our organisation to continue providing information and to play an active role inthe development and implementation of sustainability initiatives within our hotels and thecommunities in which we operate.

3

42010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

As long-term
success requires
sustainablebusiness practices,
Mandarin Oriental
is committed tocontributing to thecommunities inwhich we operate
and responsibly
managing ourenvironmental
impacts and social
commitments.

commitments
and standards
As part of our goal to do more for a sustainable world, we commit to:■O perate our business in an environmentally and socially responsible way■

Publicly report our impact on the environment■M eet or exceed all applicable environmental standards■ inimize our consumption of resources including
Menergy, water and materials■

R educe greenhouse gas emissions, waste and pollution■

Positively impact our local communities and celebrate our cultural heritage■

Engage and inspire others in ‘Doing More for a Sustainable Future’

In order to meet these commitments, we will adopt standards to:■ ffectively measure and monitor the environmental footprintEof all our operations to publicly report on our progress■ rovide management oversight and periodic review of corporateP
responsibility policies and performance and allocate resources fortheir effective implementation■

 et and monitor key objectives and targets for managing theSenvironmental performance of the Group annually■
Incorporate
environmental management systems andbest practices into our hotel operations■

Implement sustainable building principles in the siting, design, development
and refurbishment of hotel properties wherever possible■
Developa sustainable supply chain management process, ensuring thatenvironmental criteria are taken into account in all purchasing decisions■

 eport hotel-specific and Group-wide initiatives that demonstrate commitment
Rand involvement in our local communities■

Inform, educate and motivate our colleagues throughtraining and resources to meet our objectives■

 ommunicate with and solicit feedback from stakeholders in order toCcontinuously improve our performance■ rovide a positive work environment with competitive wages,Pbenefits and opportunities for everyone whilst upholding thevalues of personal respect and fairness■Partnerwith others in the hotel and tourism sector, government, andnon-governmental organisations to achieve broader sustainability goals

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

8Properties in
THE AMERICAS+
4 projects
under development
2011 and beyond

About
Mandarin
Oriental
Hotel Group13

Properties in
ASIA-PACIFIC+
5 projects
under development
2011 and beyond

6

Proper ties in
EUROPE, MIDDLE EAST
and AFRICA+
5 projects
under development
2011 and beyond

Direct Economic Value Generated and Distributed
US$m
Combined Total Revenue1

Mandarin Oriental Hotel Group manages, operates andinvests in luxury hotels, resorts and residences in highly
sought-after destinations worldwide. The Group operates, or
has under development, 41 hotels in 26 countries within Asia,
the Americas, Europe, the Middle East and North Africa.
In addition, the Group operates, or has under development,
13 Residences at Mandarin Oriental, connected to theGroup’s properties. The Group has equity interests in a
number of its properties and net assets of approximately
US$2.3 billion as of 31st December 2010.
In all of the communities where we operate, our properties
contribute to the local economy by hiring employees,
suppliers and contractors from the community. We also provide
significant tax revenues to local governments. This table
outlines the direct economic value generated and distributedby Mandarin Oriental, including revenues, operating costs,
and employee compensation. Despite the economic challenges
our industry has recently faced, we have continued to support
our colleagues, as shown by our trend of stable to increasingsalaries paid, compared to revenues earned since 2007.
Community investment in the form of monetary donationand volunteerism is provided by hotels directly to recipientsin their communities, and are not tracked Group-wide.

2010
1,025.5
136.4

2009
838.3
87.5

2008
1,016.1
163.9

2007
1,007.7
190.2

Direct value generated
MOHG revenue

513.2

438.0

530.0

529.5

Direct value distributed
MOHG costs

469.1

354.7

463.8

422.1

Cost of Sales- Employee wages
and benefits

326.6

298.1

324.5

318.8

195.2

184.0

190.5

184.8

Selling and distribution
costs and administrative
expenses

121.7

116.3

119.3

103.0

Payments toproviders of capital

13.1

15.2

17.0

16.4

Share of associated andjoint ventures/Gain on
disposal of joint venture

-4.3

-76.0

-15.3

-38.9

Payments to governments
including taxes

12.0

1.1

18.3

22.8

Payments to shareholders
Community investments3

69.2
–

68.9
–

68.7
–

38.7
–

Profit

44.1

83.3

66.2

107.4

EBITDA2

 ombined revenue includes turnover of the Group’s subsidiary hotels inCaddition to 100% of revenue from associate, joint venture and managed hotels
E BITDA of subsidiaries plus the Group’s share of
EBITDA of associates and joint ventures3
Not yet tracked1

2

5

As an industry, it is important
not to be in denial about what
our environmental footprint is.
It’s easy to introduce energyefficiency mechanisms, andit makes economic sense.

—Edouard EttedguiGroup Chief Executive
Mandarin Oriental Hotel Groupad vancin g sustainability

82010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

advancing sustainability
The environmental challenges facing ourworld today are significant: lobal climate change caused byG
increasing concentrations of greenhousegas emissions (GHG) due to ourdependence on energy from fossil fuelis arguably the greatest environmental
challenge today.
■ Water quality and availability is a serious
issue, with the water supply and demand
gap likely to grow wider in coming years.
■ Waste generated by modern living is
causing major environmental impact inmost parts of the world.
■

We also recognise that these challenges
create extraordinary opportunities for ourcolleagues, as delivering the services
and quality associated with our brand isresource intensive. Over the past decade,Mandarin Oriental has focused on energy
efficiency as this is an area we directly
control and it is the principal source of ourcarbon emissions.
We believe that luxury and sustainability cango hand in hand through strategic planning,
innovation, and taking a systems approachto manage the environmental impacts of ouroperations that meets the highest indoor air
quality criteria.
We are also incorporating sustainable
design in the building of our new properties,
encouraging development partners to
employ best practices in sustainable
development. Guidelines are available
for all owning partners for projects being
developed under a management contract.

Environmental Performance
Reporting and Key
Sustainability Highlights
This section of the report highlights ourefforts to advance the environmental
dimension of sustainability. Since 2007,
we have collected data from our operating
hotels related to consumption of water,electricity, gas, fuel and other energy
sources supplied to the hotel. Tracking
our hotel’s energy, emissions, water andwaste intensity is the only true measureof how successful we are in implementing
our environmental strategy. We believethat this is far more important thantracking how many hotels we have withany of the many certifications available
in the market, as they do not necessarily
directly translate to lower consumption
and reduced emissions.
We report here on 24 hotels, or 92.3% of
our current portfolio. We acknowledge
that there were some challenges incollecting consistent data. We have

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

excluded Mandarin Oriental, Las Vegas
from the report as data was incomplete,and Mandarin Oriental, Macau as the hotel
was not fully operational in January 2010.

actual consumption for each year. We have also used this methodology to measure our
performance in terms of emission intensity.

Environmental goals for reducing energyuse, emissions and water consumption
are currently established for the period
2007–2012. We intend to establish futuregoals for all significant environmental
aspects by 2012.

Energy intensity measures the energy consumption across the area of air conditioned
space of a property. In the period 2007–2010, the Group reduced energy intensity by anannual average of 6.4% and is committed to a reduction of 10% by 2012 over 2007 levels.

Energy Intensity

We view this accomplishment as a significant first step, but we are acutely aware thatthe luxury hotel experience that the Group provides to our guests results in a higher thanindustry average resource use.

Energy Management
According to the International Energy
Agency, buildings accounted for close to
40% of energy used worldwide in 2009.
Energy consumed by all operations in ourhotels has a number of environmental
impacts that contribute to climate change.
Additionally, energy expenses represent
a significant portion of our operating
expenses and in some hotels exceed 10%of revenue.
Energy data has been evaluated in termsof energy intensity (kWh/m2/year) andabsolute energy consumption (kWh).
Energy intensity is the key performanceindicator that we use to measure our
performance over time, as it takes into
consideration the growth of the company.

The Group reduced energy
intensity by an annual
average of 6.4% between
2007 and 2010.

Methodology for
Establishing Baselines

The methodology results in a formulathat can be used to calculate the energy
consumption that would have occurred
if energy efficiency measures were not
implemented using the independent
variables of the relevant year. Savings
are based on the difference between
the calculated consumption and theEnergy Intensity/Actual Against Baseline
520
Energy Intensity (kWh/m 2/year)

Mandarin Oriental uses a baseline
methodology that establishes a credible
and repeatable method to correlate
the energy consumption of each of
our hotels with independent variables
such as weather and occupancy. The
methodology was developed by one of
our energy consultants consistent with theguidelines set down in the International
Performance Measurement andVerification Protocol. More information
can be found at www.evo-world.org/.

500

480

460

440

Avoided Energy
Intensity
EqualsEnergy Savings

420
2007

2008

2009
ActualBaseline2010

92010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Absolute Energy
Consumption
As shown in the graph to the right,
absolute energy consumption increased
between 2007 and 2010. The increasein absolute energy consumption for thisperiod was 3% whilst the total surface of
air conditioned area increased by 18% overthe same period.

Total Energy Savings
Between 2007 and 2010, the overall
energy savings from our energy efficiency
measures amounted to 69.8 million kWh.
These energy savings reflect the active
pursuit and implementation of a numberof energy-efficiency measures, including
chiller retrofits, building management
systems, lighting retrofits and otherinitiatives that are described in moredetail later in this section.
Cost savings of US$7.7 million wasachieved based on the reduction in energy
consumption, compared to the baseline foreach year using the applicable energy unit
rates and the average exchange rate foreach year.

Energy Consumption
By Type
In 2010, Mandarin Oriental’s direct energy
consumption, including natural gas,
propane and diesel accounted for 31% of
total energy consumption. Indirect energy
consumption, including electricity, steam,and chilled water, accounted for 69% of
total energy consumption.

Energy Consumption/Actual Against Baseline
500
Energy Consumption (kWh/m 2/year)

10

400

300
Note:
- D ata for Mandarin Oriental,
Jakarta and Mandarin
Oriental, Barcelona included
in 2010- D ata for Mandarin Oriental,
Sanya and Mandarin Oriental,
Boston included since 2009

200
Avoided Energy
Consumption
EqualsEnergy Savings

100

0
2007

2008

2009
Actual2010

Baseline

Total Energy and Cost Savings
between 2007 and 2010:69.8 million kWh; US$7.7 million

2010 Energy Consumption By Type
Propane 2%
Chilled Water 4%
Heated Water / Steam 4%
Diesel 10%
Natural Gas 19%

Direct energy is the energy
procured from sources that are
owned or controlled by the reporting
entity. For example, natural gas, fueloil and propane.
Indirect energy is energy procured
from sources owned or controlled
by another entity. Examples include
purchased electricity, steam, heatingwater and chilled water.

Electricity 61%

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Reducing EMISSIONS
Greenhouse gas (GHG) emissions vary
widely across our hotels and are primarily
dependent on the emission factors of
the utility providers. For example, GHG
emissions at Mandarin Oriental, Geneva
are low, as a large majority of the electricity
is generated by hydropower, whilst GHG
emissions at The Excelsior, Hong Kongare four times higher than in Geneva,
mainly due to the fact that electricity in
Hong Kong is generated by burning offossil fuel. This is despite the fact that theenergy consumption per square meter at
the two properties is very similar. This is an
important aspect to keep in mind when we
establish our emissions strategy and also
when reviewing the impact of new hotels
being added to the Group.
Our reduction of GHG emissions to date,especially carbon dioxide (CO2) emissions,has mainly been a consequence ofimproved energy efficiency. We remain
firm in our commitment to reduce our GHG
emissions. Mandarin Oriental subscribes tothe World Travel & Tourism Council (WTTC)
goal of reducing CO2 emissions by 50%
from 2005 levels by 2035, with an interim
target of 25% reduction by 2020.

Performance Indicators And Results
A greenhouse gas emissions inventory of Mandarin Oriental operations was conducted inorder to establish our carbon footprint for the period 2007–2010.
Our emissions are measured in conformance with the GHG Protocol corporate standards,
an internationally accepted protocol that provides guidance for companies preparing a
GHG emissions inventory. More information regarding the GHG Protocol Initiative can befound at www.ghgprotocol.org/.
In this report, total emissions include direct emissions from fuel oil, natural gas andpropane as well as indirect emissions related to the purchase of electricity and steam/chilled/heated water.
We report total emissions without reductions accounting for purchase of Renewable
Energy Certificates (RECs) or similar means of compensating actual emissions. These
will be counted in future reports in order to highlight our progress against WTTC goals.
In addition to the emissions from the sources listed above, in the future we will report on
emissions from fuel used for owned vehicles, external laundries, guest and colleague
transportation under our control, as well as corporate and hotel management air travel.
We believe that it is imperative to expand the boundaries of our carbon footprint to include
emissions related to all areas of our operation that we directly influence.

Mandarin Oriental subscribes to theWorld Travel & Tourism Council (WTTC)
goal of reducing CO2 emissions by
50% from 2005 levels by 2035.

11

2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Emission Intensity
Emission Intensity/Actual Against Baseline
Emission Intensity (kg CO 2/m 2/year)

Emission intensity measures thegreenhouse gas emissions across theareas of air conditioned space of theproperties (CO2Eq/m2/year). Between 2007
and 2010, on average the Group achieved
a 4.7% annual emission intensity reduction.
Our Group is committed to reducing
greenhouse gas emissions intensity by
10% by 2012 over 2007 levels.

220
215
210
205
200

Avoided Emission
Intensity
EqualsEmissions
Reductions

195
190
185
180
2007

2008

2009
Actual2010

Baseline

Between 2007 and2010, on average theGroup achieved a
4.7% annual emission
intensity reduction.
In 2010, the Group’s
emissions wereequivalent to93.50 kgCO2Eq
per room night.

TOTAL ABSOLUTE
EMISSIONS
Absolute emissions increased between
2007 and 2010, as shown in the graph to
the right. Our carbon footprint increased
in absolute terms by 7%, whilst the total
surface of air conditioned area increased
by 18% over the same period.

CO 2 equivalent (CO 2 Eq) is a metricmeasure used to compare theemissions from various GHG, based
upon their global warming potential(GWP). In the report, CO2Eq includes
Carbon Dioxide (CO2), Methane (CH4 )and Nitrous Oxide (N2O).

Absolute Emissions/Actual Against Baseline
Absolute Emission (Metric Tons)

12200,000

150,000

100,000

50,000

0
2007

Note:
- D ata for Mandarin
Oriental, Sanya andMandarin Oriental,
Boston added since 2009- D ata for Mandarin
Oriental, Jakarta andMandarin Oriental,
Barcelona added in 2010

AvoidedEmissions
EqualsEmission
Reductions

2008

2009
ActualBaseline

2010

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Total Emissions Reductions
Between 2007 and 2010, the overall emissions
reduction from our energy efficiency measuresamounted to 23,000 metric tons CO2Eq.

This decrease inemissions is roughly
equivalent to taking

4,510

passenger vehicles
off the road.

Emissions By TypeIn 2010, the primary source of our emissions,indirect purchased electricity, accounted for
79.4% of the total GHG emissions (see chart).
Since most of the emissions come fromelectricity use, our efforts to reduce emissions
are concentrated in minimizing energy use
by implementing multiple energy efficiency
measures that reduce CO2 emissions acrossthe Group. Our direct emissions from fuelconsumption of natural gas, fuel oil (diesel) andpropane, with the exception of fuel used forcompany-owned vehicles, accounted for 14%.
Indirect emissions resulting from consumptionof electricity purchased from the external
grid and from purchased steam and wateraccounted for 86%.
In 2010, the emissions generated by theGroup amounted to 155,126 metric tons
CO2Eq (133,048 metric tons CO2Eq fromindirect emissions and 21,877 metric tons
CO2Eq of direct emissions). The Asia region
shows the largest amount of emissions,mostly due to the fact that most Mandarin
Oriental hotels (13) are located in this region,
followed by The Americas (8) and Europe (5)regions. The table to the right summarizes
these results.

2010 Emissions By Type
Heated Water/Steam 2.09%
Chilled Water 4.42%
Fuel Oil (Diesel) 5.45%
Natural Gas 8.67%
Electricity 79.37%

2010 Emissions, by Energy Type (Metric Tons) per Region
180,000
160,000
140,000
120,000
100,000
80,00060,00040,00020,0000
Asia

The Americas■ Direct Energy

Europe■ Indirect Energy

Group

13

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Energy Efficiency andEmission Reduction Highlights
By implementing energy conservation measures in our hotels, we are steadily improving our energy efficiencies.
Here are some initiatives from our hotels around the world to reduce energy consumption and greenhouse gas emissions.

Group-Wide Initiative

Smart in-room controls
have been installed in 80%
of our guestroom inventory.
This control system reduces
the energy consumption by
15–20% by controlling theenvironment of the guest rooms
when guests are away or when
the room is unoccupied.

Mandarin Oriental,
GenevaSeveral carefully plannedenergy efficiency projects
have been completed over the
past 10 years. As a result, thehotel is now 40% more energy
efficient than other Mandarin
Oriental hotels in the same
temperate climate zone.

Mandarin Oriental,
BostonTwelve rooftop gardens havebeen implemented at thehotel’s Residences. These
green roofs provide additional
thermal insulation and help
recover rain water.

Mandarin Oriental,
Hong Kong

The replacement of air cooled
chillers with water cooled units
will be fully operational in thesummer of 2011. The project isestimated to provide an overall
energy reduction of 3,000,000
kWh (10–12%).

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Energy Efficiency at
Mandarin Oriental, Jakarta

 he air conditioning system was upgraded to comply with the latest international design criteria. As a result,T
fresh air volumes and air exchanges were increased to provide the internal climate conditions expected in amodern building.
■ E lectrical heat pumps replaced traditional fossil fuel boilers for hot water heating. Cold air producedby heat pumps as a by-product is also being used to pre-cool fresh air supplies and cool the backof house spaces.
■ A system to preheat the hot water supply using heat recovery from the laundry’s steam
condensate was implemented.
■ A smart in-room control system was installed in the guestrooms.
■ T he chilled water plant was designed using high efficiency chillers, integrated controls and variable speed
controls on all pumps and cooling tower fans.
■ S ide filtration was installed on the cooling towers to reduce water consumption.
■ C ondensate from the guest rooms and major air handling units is recovered and used for the cooling towers.
The volume averages 45 cubic meters per day.
■In 2010, the hotel consumed 345 kWh/m2 of energy, this consumption is 34% lower than the average of other
Mandarin Oriental hotels in the tropical climate zone and represents a reduction of 38% from the pre-renovation(average consumption 2001–2006).

c as e s tu d y

When the hotel was re-opened after a complete renovation in October 2009, all main mechanical, electrical andplumbing installations were replaced and significant efforts were made by Mandarin Oriental’s development
team to maximize energy efficiency. The scope of the project included the following:

15

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Mandarin Oriental, Las Vegas
Achieves Leed Gold Certificationc as e s tu d y

Mandarin Oriental Hotel Group completed its first LEED (Leadership in Energy and Environmental Design) certified
green building project at Mandarin Oriental, Las Vegas in 2010. The LEED Green Building Rating System is thenationally accepted rating system for the design, construction and operation of high performance green buildings.
The hotel received LEED Gold certification and is a part of the CityCenter development, which is recognised as
one of the world’s largest sustainable developments. One of the key aims when designing the hotel was to achievea building design that was as durable and as energy efficient as possible within the taxing Las Vegas climate. Dataon both capital and operational cost savings showed a strong business case for a high performance building.

Mandarin Oriental, Las Vegas sustainability highlights:
The property is designed to be 34% more energy efficient than required by local and national regulations.
T he building’s thermal façade system, using sustainable building materials and incorporating
day-lighting controls, produces low emissions and reduces solar heat gain, accounting for
as much as 9% of the building’s total energy savings.
■ Water efficiency technology and programmes save an estimated 4.1 million gallons annually, equating to a 45%
reduction in portable water use within the building through efficient faucets and water-closets.
■ Energy Star appliances are installed in the residential units.
■ Guests arriving in alternative fuel vehicles have access to preferred parking spaces.
■ F loor-to-ceiling windows enhance the guest experience by providing abundant natural light, reducing the needfor artificial lighting.
■ N on-toxic paints, sealants, adhesives, carpet and composite wood products are used.
■ D uring construction, the project site (CityCenter) recycled over 95% of all its construction waste(over 232,000 tons).
■■“Mandarin Oriental Hotel Group is known
to demonstrate its leadership in the hotelindustry. We are honoured to introduce a
new chapter in our brand’s achievementswith the first LEED Gold certified hotel.”—Rajesh Jhingon
General Manager
Mandarin Oriental, Las Vegas

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Energy Efficiency And
Emission Reduction Highlights
By implementing energy conservation measures in our hotels, we are steadily improving our energy efficiencies.
Here are some initiatives from our hotels around the world to reduce energy consumption and greenhouse gas emissions.

the excelsior,Hong Kong

Mandarin Oriental,
Tokyo

The chillers and associatedpumps were replaced and an
upgraded control system wasinstalled to achieve an overall
energy reduction of 2,950,000
kWh (12%) and an annual costsaving of US$357,000.

Through its energy strategy,
Tokyo generated a cumulativesavings of 15.7% over the past
three years. The hotel has alsoachieved the recognition of“Top Level Facility” under the“cap-and-trade” programmeof the Tokyo Metropolitan
Government.

Group-Wide Initiative

Since 2007, detailed energy
audits have been completed at
18 properties and the outcomeof the audits assisted the hotels
in developing their individual
capital investment plans.

Mandarin Oriental,
BangkokThe hotel replaced two of its
three chillers, achieving an
overall energy reduction of
1,340,000 kWh and an annual
cost saving of US$130,000.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Mandarin Oriental Hotel Group
Server Virtualization and Cloud Computingc as e s tu d y

As a core element of our IT strategy, Mandarin Oriental Hotel Group has now firmly established a Green IT culture.
Mandarin Oriental has been working closely with Microsoft to design and implement IT activities that will result insignificant energy and waste reductions across our global IT operations. These efforts focus primarily on server
virtualization, green data centres and cloud computing. This would enable greater elimination of servers andmaximize profits.
Cloud computing will allow Mandarin Oriental to rationalize our core infrastructures, add flexible new functionality,
improve our digital marketing, and push IT infrastructure and applications out of our back offices into the cloud.
Immediate benefits to Mandarin Oriental include improved resource utilization, reduced emissions, increased
availability, enhanced security, fewer servers, simplified network infrastructures, reduced floor space and leasing
costs, and elimination of data backups and system maintenance from property staff.
Mandarin Oriental estimated the potential for an improved energy utilization and carbon footprint after
full virtualization of its current data centres. The following analysis is focused on the hotel operations in
The Landmark Mandarin Oriental, Hong Kong, which showed energy savings of up to 667 MWh and CO2
emissions reduction of 540 metric tons and results in total cost savings up to US$400,000 over a period of 5
years (the typical life of a single server). While half of the hotels are partially virtualized, Mandarin Oriental’s goal is
to fully virtualize all of its hotels in the near future to meet additional business needs in the most energy-efficientmanner. This will translate to total energy savings of 17,342 MWh and CO2 emission reductions of 14,040 metrictons over 5 years for 26 hotels. Approximate cost savings as a result of complete virtualization across all the hotels
would be US$10.5 million.

“We consider technology acore differentiator that sets
us apart in the marketplace.
Cloud computing is now
at the heart of our hotel’s
IT operations, which isa sustainable businesspractice that saves
time and money.”—Monika Nerger
Vice President ofTechnology for the Americas

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Energy Efficiency

Going Forward
In the future, we will augment our focus on eco-efficiency and greenhouse gas
emissions reduction with the following strategic initiatives. We are replacing ourutility monitoring system with an Environmental Data Management System that will
provide us with improved capabilities to: ecord and report on our energy and water consumption, greenhouse gas
Remissions and waste generated.
■ Manage all energy-efficiency measures that are implemented and use thisinformation to develop best practices that can be shared with other hotels.
■ 
Establish energy and emission reduction strategies for each individual hotel andtrack performance against established goals.
■ 
Use energy modelling for all new development projects. This technology will
predict the energy performance of the hotel at the design stage using computer
simulations and system analysis. This will assist us in ensuring that new hotels areachieving our energy efficiency targets.
■ 
Install LED lighting, especially in guest rooms and other public areas. New LED
lighting products are developing rapidly and have matured to a stage where they
can be used without negatively affecting our guest experience. Lighting represents
approximately 15–20% of the total energy consumption, and LED lighting canpotentially reduce electricity consumption by 50–75%.
■ 
Retro-commission our facilities—a systematic investigation process for improving
and optimising a building’s operation and maintenance. After the construction
and opening of a hotel, an energy specialist will work with the hotel’s engineering
department to optimise performance based on how the hotel is being operated.
Savings from this process typically range between 7% and 15%.
■ 
E xpand our usage of renewable energy (e.g. solar heating for hot waterproduction). Currently we are using very limited renewable energy resources, but
as technology matures and the capital costs of installation decrease, we foresee
utilising more renewable energy.
■ Train and launch awareness programmes for all colleagues.
■

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

WATER consumption and efficiency
According to the United Nations
Environmental Program, 40% of theworld will live in water scarce regions
by 2025. These conditions are passed
on to businesses as a reduction in
freshwater availability and quality as well as
increased costs. Since water is essential
to our operations, forward looking water
strategies are essential, particularly inregions with current and future freshwater
shortages.
Some hotels have implemented many
water efficiency measures, but in general,
we know we can improve our performancein this area by providing more focus overthe coming years.

Performance
Trends And Results
A detailed water footprint assessment for ouroperations was completed for the period of
2007–2010. Further work is required in orderto understand and compare the performanceof our resorts, especially where well water
is being used and large water volumes are
consumed for irrigation. Water data for a totalof 21 hotels or 81% of our current portfolio
have therefore been included in this report.
Water data have been evaluated in termsof water intensity (m 3 /guest night) andabsolute water consumption (m 3 ). Water
intensity is the key performance indicatorthat we use to measure our performanceover time as it takes into consideration thegrowth of the company.

Water Intensity
Water intensity measures water consumption based on total number of guest nights.
Our Group reduced water intensity (total amount of water consumed per guest night) by
11.9% in 2010 over 2007 levels. Though this reduction does not include all hotels, ourGroup is committed to a reduction of 10% by 2012 over 2007 levels, including data for all
the properties.
We view this accomplishment as a significant first step but are acutely aware that the luxury
hotel experience that Mandarin Oriental provides to our guests results in a higher thanindustry average resource use.

Water Intensity (cubic meters/guest night)
Water intensity (m 3 /guest night)

20

1.4
1.2
1
0.8
0.6
0.4
0.2
0
2007

2008

2009

2010

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor tAbsolute Water
Consumption
Water Consumption (cubic meters)

Between 2007 and 2010, our Group
achieved water use reductions as shownin the graph. Water consumption in 2009
was lower than the amounts for 2008
and 2010 due primarily to the adoptionof operational efficiency improvements
to reduce our water consumption. The
efficiency initiatives of our individual hotels
are highlighted later in this section.

Water Consumption/Actual Against Baseline
2,800,000
2,700,000
2,600,000

Note:- Data for Mandarin Oriental,
Jakarta and Mandarin
Oriental, Barcelona
included in 2010- D ata for Mandarin
Oriental, Sanya andMandarin Oriental, Boston
included since 2009

2,500,000
2,400,000
2,300,000
2,200,000
2,100,000
2,000,000
2007

Avoided Water
Consumption
EqualsWater Savings

2008

2009
Actual2010

Baseline

Total water savings
Due to a number of water efficiency
measures, the Group’s overall watersavings between 2007 and 2010
amounted to 382,090 cubic meters.

This reduction inwater consumption
is equivalent to theamount of water
needed to fill

137

Olympic-size
swimming pools.

Local Water Consumption
And Withdrawal
By Source
As of 2010, all Mandarin Oriental hotels obtain water from municipal or city watersupplies with the exception of two properties, Mandarin Oriental Dhara Dhevi, Chiang
Mai in Thailand and Mandarin Oriental Riviera Maya, Mexico, which rely primarily on
groundwater well supplies.

Water Savings: The reduction inwater consumption that occurred in
the reporting period, relative to what
would have occurred if the facility
had been equipped and operated
as it was in the 2007 baseline year
but under reporting period operating
conditions.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Water Conservation Highlights
A few highlights of key initiatives to reduce water consumption at
individual Mandarin Oriental properties are presented below.

Mandarin Oriental,
Hong Kong

The hotel reduced water
consumption by adopting a
new chemical for laundry use
which allows for shorter cycles
during washing.

Mandarin Oriental,
Miami

Using MilliCare’s dry extraction
process to deeply clean the
carpets, our Miami hotel
consumes 95% less waterand 85% less energy thanconventional hot water
extraction systems—reducing
carbon emissions for the task
by 77%.

Mandarin Oriental,
Tokyo

All fluid waste and rain water
is treated to remove impurities
and then used for landscapewatering and back-of-housetoilets. This conserves fresh
water and avoids discharging
wastewater to sensitiveenvironments.

Grand Lapa, Macau

A swimming pool water recycle
system collects pool water forreuse in toilet flushing. Thissystem has collected 10,211
cubic meters of water in three
years of operation.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor twater conservation

Going Forward
We are currently developing a water-sustainability strategy that
goes beyond traditional water-efficiency measures, including
low flush toilet fixtures, flow limiters in taps and showers. The
following are some of the measures that will be essential parts ofthis strategy:■ S ide filtration and automatic blow-down control
of cooling towers■ A daptation of latest technology and innovationin the water-intense operations of our spas,laundries and kitchens will become standard■ R ainwater harvesting and recycling of water for
irrigation purposes will become standard■ Training and awareness programmes for all colleagues
These measures will result in additional benefits, such as a
reduction in wastewater that must be treated or disposed of,or in the case of hot water efficiency, energy savings.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUPWASTE minimization
Waste management is an area where we have many opportunities, and we recognisethat improvements to our Group guidelines are required in order to provide a consistent
approach, enabling us to better measure our performance.
Most of the solid waste in our hotels is generated by activities like food preparation,
consumption of pre-packaged items, guest waste and housekeeping. We try to optimise
the purchase of products and services from our vendors that eliminate waste anduse products that have the least or no impact on natural resources. For example, wehave taken conscious steps to educate our suppliers to reduce packaging material
when supplying our hotels, and also to adopt environmentally friendly practices in their
manufacturing. We seek to reduce the amount of solid waste that we generate in key areasof the hotel and dispose of materials in landfills only as a last resort. Mandarin Oriental
strongly believes that waste generated by our hotels can be a valuable resource for others.
Waste management disposal procedures are in place to ensure that refuse is separated
into wet, dry, combustible, non-combustible and recyclable items.

There is no suchthing as “throwing
something away”,
since unrecycledmaterial ends up in
landfills. This makes
waste minimization
efforts an essential
component of
any sustainability
strategy.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Waste Minimization
Highlights
A few highlights of the initiatives to reduce waste generation
at Mandarin Oriental properties are presented below.

Mandarin Oriental,
BostonThe hotel provides wet
garbage, free of charge, tolocal farmers who use it ascomposting materials on theirfarms. Since June 2010, morethan 95 tons of food waste
have been donated, diverting
512 cubic yards of waste fromthe landfill.

Mandarin Oriental,
Kuala Lumpur

Mandarin Oriental,
Jakarta

The pool uses a saltwater
chlorination system withelectrolysis of a concentrated
solution of sodium chloride
instead of conventional chlorine
dosing. The system is safe,
environmentally preferable
and efficient at maintaining
pool water in conformance tointernational standards.

Using durable andenvironmentally friendly
microfiber cloths to clean
the kitchens and bathrooms
has reduced up to 90% of
the consumption of cleaningmaterials and water in our
property.

Mandarin Oriental,
Tokyo

The hotel recycles morethan 50% of all waste that it
produces. Kitchen vegetablecooking oil is converted into
bio-diesel fuel. Wet food waste
is converted to methane gas,
which is used to heat homes andcommercial buildings, and in thegeneration of electric power.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Waste Minimization
Highlights
A few highlights of the initiatives to reduce waste generation
at Mandarin Oriental properties are presented below.

Group-Wide
Spa Initiative

Our signature line of Spa
products are manufactured in
an environmentally sensitive
manner and are packaged
in glass containers. Glass
was selected because it isrecyclable in more countries
than plastic.

Mandarin Oriental,
Manilamandarin Oriental
Hyde Park, London

In 2010, the housekeeping
department produced 2,500
cleaning rags, 19 weighing
scale covers, 97 pillow slips,
106 cocktail napkins, fromused bed sheets, tablecloths,
napkins, bath robes, pillow
cases and duvet covers.

Our London hotel recycles
food waste using its newly
installed vacuum waste
system, which collects foodfor composting. All paper
and aluminium products usedat the hotel are also recycled.

Mandarin Oriental,
San Francisco

By using worm farming, thehotel is able to reduce waste,
greenhouse gas emissions,contamination, and produce
high quality fertilizer. Worms
eat compost and shredded
office paper to produce worm
“tea,” which is used in ourherb gardens.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Mandarin Oriental Hotel Group
Waste Decanting Operations

 orting products
STransferring products from supplier containers to hotel containers (delivery containers are returned to the
suppliers for reuse or are broken down for recycling purposes)■ M oving food and beverage products to a storage or preparation area without delay■ R egular training of colleagues on procedures to ensure safe food handling■■c as e s tu d y

Mandarin Oriental buys goods and services from suppliers who share our commitment to the environment andwho are strongly encouraged to procure products that minimize waste generation. In the Food and Beverage
quality and safety operations of our hotels, the first priority is to entirely eliminate waste at the source in order
to avoid handling, storage and disposal of waste. We ensure that products are kept clean and are free of wastematerial by multiple procedures and guidelines including:

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

waste minimization

Going Forward
The following are our short-term objectives: stablish a comprehensive corporate guideline for wasteEmanagement in our operating hotels.
■ Develop a complete, accurate, consistent and timely
measurement process of our waste and emissions due towaste generation. This will be incorporated in our Environmental
Information Management System, and it is our target to have all
our operating hotels included by 2012.
■ D efine targets for waste reduction in 2011 once the data isavailable from the majority of our hotels.
■

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

BIODIVERSITY
Biodiversity refers to the variety of plants, animals and microorganisms necessary tomaintain healthy ecosystem services—for example, the provision of fresh water, croppollination and clean air—that allows business and communities to prosper and flourish.
Biodiversity is under an increasing threat from depletion, overexploitation and theconsequences of climate change. According to the International Union for Conservationof Nature (IUCN) Red List of Threatened Species, a total of 18,351 species out of 55,926
assessed species were threatened with extinction in 2010. In a system where species arelimited, the extinction or reduction of any one could disrupt a complex food chain withserious effects.
Mandarin Oriental leadership recognises that the values of biodiversity and ecosystemservices have not been previously accounted for and that interest is growing in services that
ecosystems deliver, such as flood control. At Mandarin Oriental, hotels constantly carry out
different projects independently or in cooperation with communities and non-governmentalorganisations (NGOs) for the restoration of ecosystems and biodiversity. In our hotel at
Riviera Maya, Mexico, we planted a mix of native plants and trees to showcase the natural
surroundings of our hotel site. This not only benefits the natural heritage, but the better andmore diverse the flora and fauna, the more enjoyable the experience is to our guests.
We encourage our colleagues to become involved in the conservation and developmentof biodiversity, increasing awareness and morale. Similarly, a number of other activities are
currently being carried out at Mandarin Oriental to protect and conserve natural habitats.

Mandarin Oriental
Riviera Maya,
Mexico is the firstresort project in
Latin America that
includes 95% ofnative plants in its
concept and design.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

biodiversity highlights
A few highlights of the initiatives related to biodiversity at
Mandarin Oriental are presented below.

Elbow Beach,
BermudaIn the resort’s residential
sector, land was cleared andrestored to its original native
state, resulting in the creationof a Preserved Woodland area.

Mandarin Oriental,
Miami

With the Miami Everglades“voluntourism” package, guests
can participate in tree planting,recycling projects and exotic
plant removal programmes at
Everglades National Park.

the Landmark Hotel,
Hong Kong and
The Excelsior Hotel,
Hong Kong

Both hotels participate in theWorld Wide Fund for Nature(WWF) Hong Kong initiative
to stop serving bluefin tuna(a species that will soon
disappear unless urgent action
is taken) in their restaurants.

mandarin oriental,
bangkokThe hotel has participatedin a reforestation campaign
since 1993. In 2010, thehotel cooperated with “TheNatural Protection Group-Zone2” to grow 5,000 mangrove
plants in the Tambol Bangkaew,
Amphur Muang, Samutsakorn
Province.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Biodiversity at
Mandarin Oriental Riviera Maya, Mexicoc as e s tu d y

The gardens of Mandarin Oriental Riviera Maya were conceived as a tribute to biodiversity. Conservation was
the guiding principle around the artistic designs of the landscape and gardens, which feature native plants that
correspond with the local flora. The entire resort respects nature and provides guests with an opportunity to visit
natural environments, including tropical forest, mangrove reserves, lagoons and streams. Maintaining and enhancing
biodiversity played a major part in the planning of the resort. The resort showcases more than 20% of mangrove
forest, divided into four species of mangroves. The mangroves offer a fabulous resting ground for native birds andmany other animals. A fundamental task for the future will be to continue to cultivate this thriving natural habitat.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

mandarin oriental
environmental performance summary
The data for all environmental performance indicators is recapped in the following table:

Performance indicator	
2007

2008

2009

2010

energyAbsolute Energy Consumption(Actual)349,223,896

353,431,209

345,014,296

360,125,613

349,223,896

359,523,378

373,529,067

395,270,166

510

498

452

447

510

507

490

490

Unit: kWh

Absolute Energy Consumption(Baseline)
Unit: kWh

Energy Intensity(Actual)
Unit: kWh/m2

Energy Intensity(Baseline)
Unit: kWh/m2

Greenhouse gas emissions
Absolute Emissions(Actual)145,549

151,101

148,135

156,196

Absolute Emissions(Baseline)

145,549

152,532

157,933

167,967

Emission Intensity(Actual)

212

213

194

194

212

215

207

208

Unit: tons of CO2 equivalent						Unit: tons of CO2 equivalent		

Unit: kg CO2 /m2

Emission Intensity(Baseline)
Unit: kg CO2 /m2

water
Absolute Water Consumption(Actual)2,791,821

2,545,564

2,318,650

2,450,927

2,791,821

2,627,233

2,5006,306

2,563,692

1.173

1.149

1.149

1.033

685,682

709,248

762,990

806,470

2,379,857

2,215,905

2,017,935

2,372,768

Unit: m3

Absolute Water Consumption(Baseline)
Unit: m3

Water Intensity
Unit: m3/guest night

MOHG Total
Air Conditioned Area
Unit: m2

MOHG Guest Nights

Notes:- Mandarin Oriental, Sanya and Mandarin Oriental, Boston had their first full year of operations in 2009
- Mandarin Oriental, Jakarta and Mandarin Oriental, Barcelona include only 2010 data
- Mandarin Oriental, Las Vegas and Mandarin Oriental, Macau (opened in July 2010) are not included in the analysis due to incomplete data-F or water data, properties have been excluded if the data is distorted by major changes or abnormally high values (where, for example, irrigation is included)This includes Mandarin Oriental Dhara Dhevi, Mandarin Oriental, Sanya and Mandarin Oriental Riviera Maya, Mexico

Mandarin Oriental has longrecognised the importanceof culture and community to
our brand. Our properties
each possess a distinct senseof place, while reflecting
our oriental heritage and the
local culture of each hotel.
Our colleagues are delighted
to support and workwith the local communities
in which we operate.

champion in g community

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

championing community
Mandarin Oriental has long recognised the importance of culture and community to ourbrand. Our properties each possess a distinct sense of place, while reflecting our oriental
heritage and the local culture of each hotel. Our colleagues are actively engaged insupporting and working with the local communities in which we operate. Our properties
support charities and other groups and organisations that reflect the unique needs of eachof our diverse communities. In addition, Mandarin Oriental Hotel Group supports an arrayof cultural preservation and educational opportunities.
Mandarin Oriental Hotel Group champions community in three ways—preserving cultural
heritage, conducting outreach and community education, as well as creating and supporting
community programmes. Mandarin Oriental is providing more than philanthropic support; wego beyond that, encouraging colleagues to participate actively, whether through volunteer
hours at a school or coordinating events to support local organisations. Each hotel engages
its local community differently, based on the needs of the community. In addition, the Group
coordinates broader initiatives in certain regions of the world.

Mandarin Oriental
hotels eachembrace their local
communities, andour commitment
is evident inthree key areas:
cultural heritage
preservation,outreach andcommunity
education,and support
for community
programmes.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Cultural Heritage
Mandarin Oriental recognises the importance of preserving cultural heritage anddiversity. By supporting cultural and artistic traditions, we help to extend their value
to the global community, enabling their continued enjoyment for generations to come.
Reflective of local culture and style, each Mandarin Oriental hotel has a strong senseof place, while oriental touches provide a warm and inviting atmosphere. From theselection of each hotel’s symbolic fan to our dedicated support of arts and artefact
preservation, Mandarin Oriental preserves and celebrates our Asian roots and embraces
the local culture unique to each hotel.

Fans
Classically simple, visually elegant and a profoundly meaningful symbol of Oriental
culture, Mandarin Oriental’s iconic fan logo is a striking symbol of our Group’s identity.
Our logo is a registered trademark internationally and is respected within the tourism
industry as one of the world’s most highly recognised logos. In addition to the registeredtrademark logo for the Group, every Mandarin Oriental hotel has its own fan, whichbonds each property to the company’s heritage. An authentic and elegant reflectionof Asian tradition, hotel fans are chosen to represent the distinctive character of each
property, highlighting the history and culture of the local destination. Colours, designs
and prints are carefully chosen in collaboration with local artists, historians and graphics
experts. Originality also plays a key role in determining the desired fan for each hotel.
For our hotel in Prague, the Group was keen to create a fan of historicalsignificance which would not only highlight the Golden City as adestination but also its history and rich diverse culture. The design andcreation of Mandarin Oriental, Prague’s signature fan was entrusted
to Mrs. Jarmila Mucha Plocková, who is the granddaughterof the late and much celebrated artist Alfons Mucha andwho has the sole rights to reproduce the artist’s famous
designs. The artwork was inspired by the frescoes on
the walls of the Mayor’s Lounge in Prague’s superb
Art Nouveau Municipal House. The peacocktaken from the Mucha-designed rich fabriccurtains is the predominant feature on
this hand-painted fan. The peacock isalso especially meaningful in Asian
culture, being a sacred bird in both
China and Japan.

Mandarin Oriental, Boston’s
exquisite Chinese fan was createdfor export in the late 1850s andis from the permanent collectionof the Peabody Essex Museum in
Salem, Massachusetts. This fanties together the longstanding
relationship and interaction between
the historic and artistic traditions of
Boston and the Orient.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Mandarin Oriental,
Tokyo and the
Preservation of
Nihonbashi Bridge
The city of Nihonbashi has been thecultural and historical heart of Tokyo
since the 17th-century Edo period. Its
landmark Nihonbashi Bridge, which has
been designated as a cultural asset of
national importance, was declared by
the Edo government as the point fromwhich all road distances between thecapital and other points in Japan were to
be measured. This method of calculating
distances from Tokyo is still practised
today. Mandarin Oriental, Tokyo is proud
to participate in the Nihonbashi Bridge
Preservation Group, which is dedicated tomaintaining the Renaissance-style, doublearched granite bridge. The Nihonbashi
Bridge Preservation Group organizes anumber of events including the annual
large-scale cleaning of the bridge, as well
as regular cleaning sessions of the river.

Mandarin Oriental
Hotel Group
Sponsors
The Emperor’s
Private Paradise
Mandarin Oriental Hotel Group isdelighted to be a premier sponsorof The Emperor’s Private Paradise:
Treasures from the Forbidden City, alandmark U.S. exhibition organized by
the Peabody Essex Museum (PEM) in
Salem, Massachusetts, in partnershipwith the Palace Museum, Beijing, andin cooperation with World Monuments
Fund (WMF). This exhibit brings artistic
treasures, never before seen by the
public, from the private retreat of thecelebrated Qianlong Emperor (r. 17361796). The Emperor’s Private Paradise
was first revealed in September 2010 at
PEM and will travel to The Metropolitan
Museum of Art in New York and the
Milwaukee Art Museum in 2011.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

The Asian Cultural Council (ACC) is the only organisation in the world whose sole mission is to support cultural
exchange between the United States and Asia and within the countries of Asia. In 2005, Mandarin Oriental
established a fellowship with the non-profit ACC specifically to award individuals and organisations in efforts topreserve indigenous arts, cultures and traditions of Asia.
The 2007 Mandarin Oriental Fellowship was awarded to Grace Nono, a remarkable Philippine musician andscholar, well known for her passionate commitment to educating Filipinos about their cultural traditions. A
vocalist who has studied traditional songs from throughout the archipelago, Ms. Nono infuses these with her own
contemporary voice to advance issues of indigenous identity and women’s rights. Ms. Nono completed a fivemonth residency in the U.S. in spring 2008.
In 2008, the Mandarin Oriental Fellowship was awarded to Pingxian Wang, a cultural researcher and translator at
the Dunhuang Academy, which oversees the famed Tang Dynasty Buddhist cave site in Gansu province, China,
one of the most important and highly visited archeological sites in Asia. Ms. Wang has been actively involved indeveloping new databases that will make scholarship on the caves and their artwork available to English, andChinese and Japanese-reading researchers.
The Mandarin Oriental Fellowship in 2009 was awarded to Issui Minegishi, a Japanese musician and rare
performer of the “ichigenkin”, a one-string zither whose tradition is associated with the cultural literati and nobility
in Japan. There are less than five hundred people in all of Japan who play the ichigenkin. Ms. Minegishi completed
her Mandarin Oriental Fellowship in 2010 and participated in contemporary music workshops to develop new
relationships with American and international artists.
In 2010, the Mandarin Oriental Fellowship was awarded to Khun Sunon Wachirawarakarn, a “Khon” (ThaiClassical Dance) principal dancer with the Pichet Klunchun Dance Company (PKDC) in Bangkok. Khun Sunon’s
dance troupe creates new work that places Khon in a contemporary context and is dedicated to developing
the international understanding of and appreciation for this traditional Thai dance form. Khun Sunon’s Mandarin
Oriental Fellowship will permit him to study in the U.S. on a four-month grant in 2011 to participate in theInternational Choreographers Residency Program at the American Dance Festival.

c as e s tu d y

Mandarin Oriental Hotel Group
Fellowship for Cultural Preservation with
the Asian Cultural Council

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Outreach and Community Education
Mandarin Oriental hotels contribute to a number of community outreach and educational
programmes within our local communities, whether by volunteering, organizing,
philanthropy or making in-kind donations of materials or space. This section highlights two
educational events coordinated by our properties, including the Lanna Village at Mandarin
Oriental Dhara Dhevi, Chiang Mai and Mandarin Oriental, Washington D.C.’s partnershipwith VSA, an organisation educating persons with disabilities through the arts.

Mandarin Oriental Dhara Dhevi,
Chiang Mai Lanna Village
Mandarin Oriental Dhara Dhevi, Chiang Mai was constructed with the intention to preserve
Lanna culture and provide an opportunity to educate both guests and the community in thearts and architecture of historical Chiang Mai. “Lanna” was derived from “Kingdom of Lan
Na”, meaning the “Land of a Million Rice Fields”, with the city as the royal seat of power inthe mid-13th century and a time when Chiang Mai asserted itself as a centre of arts, culture
and architecture. Since opening, Mandarin Oriental Dhara Dhevi has hosted events andcultural tours to showcase Lanna culture. The hotel has also partnered with local schools
to provide the opportunity to visit as part of their history curriculum. The market also
provides local artisans with the opportunity to showcase arts and crafts central to Lanna
culture and the opportunity to sell their wares. The gardens and rice fields are cultivatedand provide food both to the restaurants on site as well as donations to community foodbanks. Mandarin Oriental Dhara Dhevi is the only resort in Chiang Mai that offers guests
a regular daily programme for arts and crafts demonstration—basket making, bamboo
weaving, rice pounding, paper cutting and flower arranging.

Mandarin Oriental, Washington D.C.
Partners to Make a Difference
In 2010, Mandarin Oriental, Washington D.C. partnered with VSA, an affiliate organisation of
the John F. Kennedy Center for the Performing Arts that provides disabled individuals withartistic, vocational, and job readiness training through the arts. With the hotel’s “I’m a Fan”
project, participating students were asked to create a fan reflecting Mandarin Oriental’slogo and inspired by the locations of the hotels worldwide. The purpose of the event was
to provide the participants of the VSA programme with a gallery exhibit and opening toshowcase their art and interact with the community. In addition, the artwork was displayed
and was available for purchase by patrons as a fundraiser for VSA. All participants in the
programme were young adults with special needs from the local area.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Community Programmes
Our community programmes exemplify how we go beyond philanthropy to work side
by side in communities coordinating volunteer efforts and events. In addition, several
hotels have reclaimed and recycled used goods and products into meaningful donation
opportunities that improve public health and education.

Partnership with Clean the WorldIn the U.S. alone, 2.6 million soap bars are discarded every day by the 4.6 million hotel
rooms in the country. Mandarin Oriental hotels in North America have partnered with Clean
the World to donate soaps and shampoo that would have been sent to landfill. Clean theWorld is a programme that recycles donated soap from hotels and distributes it, along witheducational materials, to impoverished countries worldwide and homeless shelters in North
America. The soap is reprocessed to ensure they are sanitary for reuse. To date, Mandarin
Oriental has diverted nearly three tons of soap from disposal to donate to Clean the World,
resulting in over 26,000 bars of soap delivered to children in need. A challenge of this typeof programme is the additional greenhouse gas emissions that stem from the redistributionof the new soaps to the communities in need; however, the improvements in sanitation andpublic health due to the use of the donated soaps save lives within those communities.
Mandarin Oriental will continue to weigh the benefits and challenges of these types ofefforts in our quest to help people in need and consider the life cycle of product use.

Mandarin Oriental, Miami
and Radio Lollipop
Radio Lollipop is an internationalchildren’s charity that provides care,
comfort and entertainment to children
in hospital. Twice a year, volunteers
from Mandarin Oriental, Miami visit
the Miami Children’s Hospital toparticipate in the Radio Lollipop
programme. The colleagues are split
into teams that visit each room of allwings in the hospital, inviting children
to get involved in a featured activity,
such as origami. Volunteers work withthe children playing games, readingbooks and providing smiles andlaughter to children at a time when
they need it most.

Mandarin Oriental’s“Fantastic Match”
Programme in the
United States
Giving back is all about making
a positive difference in the worldby helping the causes you believe
in. With Fantastic Match, a U.S.
charity matching fund programme
launched in late 2010, our U.S.
hotels are extending their charitableefforts in their communities. The
Fantastic Match programme
matches up to US$10,000 per year,
per U.S. hotel, the funds raisedby colleagues participating in the
charitable activities organised bytheir hotels.
Hotels can organise a range ofdifferent activities, such as group
volunteering, raising funds in awalk-a-thon or holding a food drive.
The potential to help the local
communities we serve is limitless.
With Fantastic Match, the proceeds
raised from all approved charitable
programmes are matched, up toa US$10,000 limit, doubling thebenefit to our communities. U.S.
colleagues can inquire with their
human resources department
for more information about theplanned activities for their U.S.
Fantastic Match programme andlearn how to get involved and makea difference.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Community Programmes at
Mandarin Oriental, Bangkok
c as e s tu d y

Mandarin Oriental, Bangkok has conducted community programmes for more than 20 years, often benefiting
educational causes in their local community and impoverished communities in rural Thailand. Two major eventsoccurred in 2010: a community service outing to renovate a cafeteria at a school in Baan Mae Pra-jan, Amphur
Paktor, Rachaburi Province, as well as spearheading a charity gala and auction to benefit HRH’s Sai Jai Thai
Foundation and other impoverished schools in northern Thailand.
Each year, the human resources team travels to northern Thailand to inspect community schools and selects theneediest schools. Throughout the year, the hotel conducts events to raise funds, including a sale sponsored by
all departments and a monetary contribution from the hotel. Approximately US$10,000 is raised each year andis used at the schools to renovate structures, as well as providing for educational materials. Over 100 people,
including colleagues and their families, participate in the event.

Bangkok Chefs Charity Gala Dinner and Auction
In 2009, Mandarin Oriental, Bangkok’s Executive Chef Norbert Kostner, together with Mandarin Oriental’s major
supplier of imported luxury food items and wines, took the initiative to launch the first-of-its-kind gourmet charity
event in the hospitality industry appropriately named “Bangkok Chefs Charity Gala Dinner and Auction”, which took
place in the Royal Ballroom of Mandarin Oriental, Bangkok. Sixteen Executive Chefs from leading hotels in Bangkok
participated in the event. Services of the chefs, to cook at the winners’ private residences, were auctioned off toraise funds to benefit HRH’s Sai Jai Thai Foundation and three schools serving under-privileged children in northern
Thailand. The HRH Sai Jai Thai Foundation gives moral support, welfare, and education to the families of those whohave sacrificed their lives in public service, such as Border Police and soldiers.
The 2010 Bangkok Chefs Charity Gala Dinner and Auction raised a total of five million baht (approximately
US$165,000) —three million of which was presented to HRH’s Foundation and the remainder provided to welfare
and schooling for underprivileged school children in Northeast Thailand.

	
  

	
  

	
  

	
  

Mandarin Oriental Hotel Group
has a long tradition of delivering
excellence, visible throughour dedication to customer
service for our guests,
in the development of ourcolleagues—both personallyand professionally—andby consistently delivering
returns to our shareholders.

del iv ering excellence46

2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

DELIVERING EXCELLENCE
Mandarin Oriental Hotel Group has a long tradition of delivering excellence, visible throughour dedication to customer service for our guests, our involvement in the development ofour colleagues—both personally and professionally—and by consistently delivering returns
to our shareholders. This section focuses on our approaches to colleague development,
safety, guest satisfaction and product management that distinguish the Mandarin Oriental
brand. We are proud of the recognition and awards that we have received from our peers inbusiness, industry and the community; they are summarized at the end of this section.

Our mission is
to completely
delight and satisfy
our guests.
We are committed
to making a
difference everyday;
continually getting
better to keep
us the best.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Responsibility and Respect
Responsibility and respect are two tenets of Mandarin Oriental’s guiding principles. Thissection is devoted to our employment practices, colleague development and ethicalstandards, which are vital to delivering excellence.

Human Rights
Mandarin Oriental Hotel Group does not have a specific policy addressing human rights.
However, we have developed employment guidelines to prevent child and compulsory
labour and implemented strict harassment policies. We ensure equal opportunity in hiring,as well as during employment. Mandarin Oriental’s employment policy states:
It is the Group’s policy to maintain a work environment free from discrimination orharassment. This includes ensuring that equal employment opportunities are provided to all
persons qualified to work at the Group and at Mandarin Oriental hotels.
We maintain a strict policy prohibiting discrimination on the grounds of sex, pregnancy,
marital status, family status, religion, disability or race.
We also prohibit harassment based on sex, disability (including physical or mental disability
and medical condition), race, colour, religion, national origin, ancestry, citizenship status,
age, sexual orientation and marital status, even if such conduct is not prohibited underlocal laws.
In 2010, there were six reported instances of alleged discrimination at Mandarin Oriental
hotels, involving sexual harassment, unjust termination, race discrimination or gender
discrimination, out of approximately 10,750 colleagues. All instances were investigatedand dismissed.

Fair 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, which is generally consistent with theUnited Nations Global Compact. The code requires that all Group companies comply
with all laws of general application, all rules and regulations that are industry-specificand proper standards of business conduct. The code prohibits the giving or receivingof illicit payments, and it requires all employees to be treated fairly, impartially and withrespect. It also requires that all managers must be fully aware of their obligations under
the Code of Conduct and establish procedures to ensure compliance at all levels within
their organisations. The Group has in place procedures by which employees can voice, in
confidence, matters of serious concern in areas such as financial reporting or compliance.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Labour Practices
and Colleague Diversity
Empowering our colleagues is central to our business and critical for delivering the
top quality services that define our brand. Mandarin Oriental is committed to being an
employer of choice. Consistent with this goal, we are committed to:Selectingthe finest hospitality professionals
Ensuring that all our colleagues are treated with respect, courtesy and dignity, and areworking in a clean, pleasant and safe environment■ Providing effective training and meaningful career and professional development■ M aintaining an “open-door” policy where colleagues will always find support from caring
and empathetic colleagues■■

Globally, our workforce is comprised of full time, part time, and casual colleagues hired on a
flexible basis. As of December 2010, Mandarin Oriental directly employed approximately 10,750
colleagues, which represents all operating hotels in 2010. We recruit quality talent from premiercampuses across the globe through an objective and robust selection process. The majority
of colleagues in each operation are hired locally, and promotion from within the company ispracticed regularly.

Mandarin Oriental Hotel Group Employment Summary
GENDER

Male

Female	Total

Asia
The Americas
Europe
Total

3,709
1,442
613
5,763

2,985
1,485
512
4,983

6,693
2,928
1,125
10,746

	Two
Other/RACE
Asian	Latino
Black
White
					
or more	Undeclared
Asia
The Americas
Europe
Total
Percentage

6,401
579
79
7,059
65.7%

3
1,025
26
1,054
9.8%

0
415
108
523
4.9%

127
805
858
1,790
16.7%

1
34
5
40
0.4%

161
70
49
280
2.6%

Benefits are provided to all full-timecolleagues. Part-time colleagues areentitled to benefits as required by
local labour laws and conditions, andmay be pro-rated based on the hours
worked, compared to full-time equivalentcolleagues in some locations. In 2010, allhotel colleagues received performance anddevelopment reviews. These reviews are
conducted annually and are mandatory
for all hotel colleagues. 2010 performance
reviews for Mandarin Oriental corporatecolleagues have also been implemented.
Mandarin Oriental is a very diverse
company, with many races and ethnicities
represented throughout the hotels andleadership teams. Employment by genderis nearly equal for the company. Seniorleadership has more men and more
Caucasian representatives than is typicalfor the company as a whole. Seniorleadership at Mandarin Oriental HotelGroup includes the Board of Directors
and corporate executive teams. In 2010,
the composition of the Board was 100%
male and 75% Caucasian. The corporate
executive team is 88% male and 100%
Caucasian. Senior leadership at theindividual hotels is more ethnically diverse
than the Board and is representative of thelocal population.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Learning and Development Opportunities
Our extensive learning and development programmes contribute to the skills, knowledge andmotivation of our colleague workforce. Colleagues have compulsory annual training, as wellas training upon hiring or changes in job duties. On average, colleagues complete 26 hours of
training annually. Learning and development is integral to Mandarin Oriental’s culture—eachcolleague is empowered to be his or her best, whether it’s central to professional development
or personal development. Beyond core training, the following training programmes are in place:

Industry and Product Training
Industry and product training is tailored based on each colleague’s role. Delightful service is
expected of all colleagues, and a departmental sequence of service training is provided by
the department manager. Industry standards workshops and Legendary Quality Experience
training are also provided to ensure colleague compliance with our standards of service.
Colleagues who utilize and sell products also receive training on products used within theirdepartments. Food safety training is provided to all colleagues working in food and beverage.
Records detailing colleagues trained and training time are maintained at each location.

Leadership and Personal Development Training
Leadership and personal development training are conducted as part of our workplace
practice. Colleagues with leadership responsibilities are trained in coaching and counselling,group training techniques, conducting meetings, interviewing, maintaining morale, andtraining methods. To develop our managers, we also offer training in financial management,
leadership competencies, supervisor development and task and time management.
Leadership training encompasses more training hours per colleague than any other training
programme, ensuring that our colleagues are developing personnel and project management
skills useful throughout their careers.
An important strategy for the Group is to promote from within wherever possible. This is
critical in order to meet our future human resource requirements as we continue to growand expand our portfolio of properties. To this end, since 2000, Mandarin Oriental has
been in partnership with the Royal Melbourne Institute of Technology (RMIT) Melbourne,
Australia to offer a company-funded Masters of Business Administration (MBA) programme
to high potential senior managers from corporate divisions, regional offices and hotels.

Advancing Sustainability Training
Mandarin Oriental’s core technical services team in The Americas initiated LEED
Accredited Professional (AP) training for all its members in 2010. The LEED AP credential
these colleagues are currently obtaining will provide them with the expertise toparticipate in the design and construction phases of building high-performance, healthful,durable, affordable and environmentally sound buildings.

Learning anddevelopment is
integral to Mandarin
Oriental’s culture—each colleague
is empowered tobe his or her best,whether it’s central
to professional
development
or personal
development.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Compliance, Safety and Security
Mandarin Oriental adopted an integrated framework for managing all fire, life, health,safety and security (FLHS&S) aspects of the operation by developing our proprietary
Safe & Sound programme in 2000. The programme provides guidelines relevant to thefollowing seven sections:
1. F ire and Life Safety guidelines based on the internationally recognised National Fire
Protection Association’s guidelines.
2. O ccupational Safety guidelines based on the Occupational Safety and HealthAdministration (OSHA) standards of the United States government.
3. H
 ealth and Safety guidelines based on British and European standards.
4. S ecurity guidelines based on international best practices.
5. Food Hygiene and Safety guidelines based on the accredited international standard ofHazard Analysis and Critical Control Point standards (HACCP).
6. B usiness Continuity Planning and Risk Management developed on proven risk
assessment and risk management methodology.
7. S pa guidelines based on international best practices.
Safe & Sound Guidelines are continuously improved and updated as new technology
and methods are being developed. The programme is managed by the Group Risk
Management Committee and each individual hotel also has Risk Management Committees
responsible for the management of the programme on the property level.

Safe and Sound Audit Scores
100.0
90.0
80.0
70.0
60.0
50.0
40.0
30.0
20.0
10.0
0
Group
Average

2002
88.4

2003
88.7

2004
89.8

2005
90.9

2006
91.9

2007
92.9

2008
91.0

2009
90.0

2010
89.3

Safe & Sound Audit
Performance Results
Mandarin Oriental retains PWT Environment
Consultancy, a UK-based Health and Safety
Consulting Firm, to conduct independent,
comprehensive Safe & Sound compliance
audits of each hotel. The first audit isconducted four to six months prior to the
opening of new hotels and is thereafter
carried out annually. Together with PWT,
the Group has developed a detailed
audit checklist that generates a 0–100%
compliance score. Each of the seven Safe &Sound sections has a weighting formula toincrease the impact on the overall score forsections with higher associated risks.
As shown in the graph at left, the auditscores have slightly decreased over the
past few years, mainly due to the factthat the Group is gradually shifting fromannounced to unannounced audits where
the hotel is unaware of the exact audit
date. Three unannounced audits werecarried out in 2009, five in 2010 and we are
expanding to eight unannounced audits in
2011. We are satisfied with the outcomeof the unannounced audit process, as itprovides an actual picture of the situationin our hotels, without specific preparationsuch as deep cleaning of kitchens andback-of-house areas. We are also pleased
to see the minimum impact on the Group’s
average result, as this means that theprocesses of the Safe & Sound are firmly
embedded in the operation of our hotels.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Occupational
Health and Safety
Reporting System
A comprehensive Occupational Healthand Safety reporting system has been
established and is used throughout
Mandarin Oriental’s operations. All
work-related accidents and incidents
are thoroughly investigated to identify
the causes and initiate corrective andpreventive measures. The findings andrecommendations along with audit
progress reports are discussed at therisk management committee meetingsand circulated to all departments for
implementation.
We consider the key performance indicatorof our health and safety performance tobe the accident incidence rate (number ofincidents that occur within a year, reported
for every 1,000 colleagues) and severity
rate (hours of lost work time within a year,
reported for 100,000 worked hours bycolleagues).

Occupational Health and Safety Performance Summary
Number of Hotels

2010

2009

Change%Number of Hotels

25

22

Accident Incidence Rate
Number of incidents
per 1,000 colleagues

67.7

82.9

-18.34%

Severity Rate
Hours of lostwork time per
100,000 worked
hours by colleagues

64

95.6

-33.05%

Payroll Cost (US$)

116,819

166,105-29.70%Group Risk Management Policy It is Mandarin Oriental Hotel Group’s policy toprotect and preserve both tangible and intangible assets from loss or damage that
could affect its stakeholders, be they colleagues, guests, shareholders, business
partners or the community in which it operates.

health and safety reporting
During 2009–2010, our focus on providing
a safe work environment yielded positive
results. As shown in the table above,the severity rate was reduced by 33.05%,
the accident incidence rate by 18.34%,
and lost payroll by 29.70%, compared
to 2009 figures.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

guest satisfaction and Loyalty
Mandarin Oriental promotes a “culture of quality” at all levels of the organisation. Most importantly,
Luxury Quality Service is one of the Group’s key strategic brand defining competencies. Mandarin
Oriental hotels are uniquely designed and inherently linked to their local culture and environment,
while reflecting the Group’s Oriental heritage. This is evident in the Group’s unique approach toservice delivery. Our service culture allows for colleagues to locally adapt service standards andempowers them to deliver personalised service for each individual guest. Such an inspirationbased service culture approach engages colleagues and guests on an emotional level in order tobuild a genuine connection with guests, leading them to become true “Fans” of the brand.
The Group has a number of quality improvement and assessment tools in place to measurecustomer satisfaction and loyalty. Mandarin Oriental’s brand-defining “Legendary Quality
Experience” (LQEs) service standards, which bring the Group’s mission, vision and guiding
principles to life on a daily basis, are designed to delight guests. Mandarin Oriental is also
evaluated and measured against other international standards for commercial, publishing or
benchmarking reasons. These include: Richey International, American Automotive Association(AAA), Forbes Travel Guide and the Michelin Guide.
Mandarin Oriental also maintains a variety of quality measurement processes to constantly
evaluate and improve quality performance. These quality standard measurements are
conducted by Richey International and Coyle Hospitality Group through independent customer
service mystery shop evaluations.
The Group’s Guest Satisfaction/Loyalty Survey programme at each of our hotels invites
guests to provide online feedback. Guests are polled on their perception of the brand,
collecting and trending their subjective evaluations of various aspects of product and service.
The survey, managed by Synovate until 31 December 2010, is now conducted by LRAWorldwide, Inc. A similarly designed Meeting Planner survey collects feedback on group eventsfrom meeting planners.
The table below shows customer satisfaction survey results for the Group conducted in all ourhotels to gauge consumer satisfaction and loyalty. Survey results indicate consistently highlevels of satisfaction and loyalty to the brand.

Guest Satisfaction SUrvey
2007

2008

2009

2010

Response Rate
10%
Overall Quality Rating 89%

11%
90%

9%
90%

9%
89%

“Our Group strongly
believes in the conceptthat what gets measured
gets done.”—Andrew Hirst
Operations Director, Asia

Quality-Continuous
Improvement Process

Solution
Implementation

CultureandStandards

Analysis,
Problem
SolutionandInnovation
Quality Review
Measurements
and benchmarking

Quality
Assurance
SOPs,
Processes

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Product Responsibility
and Materials Management
Mandarin Oriental considers innovation a priority for developing new products and services
that create value for stakeholders and pursue sustainable growth for the environment. We
promote a culture of quality at all levels, with Quality Service as one of our key strategic brandcompetencies. The following section describes our signature spa product line and an example ofour approach to quality and materials management as seen at Mandarin Oriental, Kuala Lumpur.

Mandarin Oriental’s Signature Spa
Products and Treatments
Mandarin Oriental’s signature spa treatments are a unique synthesis of Eastern and Westerntherapeutic principles. Our spa therapies have been devised to address guests’ increasing
desire for simple, effective and authentic spa experiences. Developed in consultation withspecialists in Traditional Chinese Medicine (TCM) and master aromatherapists, each signaturetherapy consists of a relaxing, hands-on body massage ritual that combines the powerful
effects of oriental meridian massage with the therapeutic benefits of custom-blended essential
oils, created uniquely for Mandarin Oriental.
Mandarin Oriental’s signature spa therapies, together with a product and homecare line, werelaunched in June 2009. Our spas promote refined, holistic practices for the well-being of ourguests. In that respect, the spa develops and procures special products from Aromatherapy
Associates with natural ingredients, which are environmentally friendly and organic. These
products are available for purchase at Mandarin Oriental spas by our guests.

Mandarin Oriental Spa Products Sustainability
Sustainability is a key feature in the thought process behind our products. All ingredients,
containers, packaging, distribution, disposal and the therapeutic benefit of the products
were developed with the environment in mind. The hubs for these products are close to ourproperties, allowing sea freight options and bulk storage. The ingredients in our spa products
procured from Aromatherapy Associates have the following beneficial attributes:
 oils, fragrances and essences contain 100% natural ingredientsAllRegenerative damask rose water is used instead of plain water■ Endorses fair trade practices and support fair trade certified ingredients■ Do not use mineral or sulphonated oils which can block the performance of the essential oils
■ Do not use genetically modified (GM) ingredients or animal ingredients■ Do not use petrolatum or propylene glycol or any added colour■■

Packaging
There are practicalities and cost restraints
that are considered in all aspects ofour spa product packaging design.
We continuously work through all thesuggestions from Aromatherapy Associates
to ensure viability. All packaging solutions
use Forest Stewardship Council (FSC
accreditation) stock and environmental
processes wherever possible. The finalcontainer and packaging solutions include
standard glass containers, FSC-approved
boxes, and 5-liter plastic containers withno packaging. Glass was selected because
it was recyclable in more countries thanplastic. Due to such small quantity usage
there is no internal collection and reuseof containers.

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Quality Standards at
Mandarin Oriental, Kuala Lumpurc as e s tu d y

Despite strong competition in a thriving global hotel industry, Mandarin Oriental, Kuala Lumpur, continues to set
the international standard in quality matters as well as in environmental, safety and health concerns. Indeed, thehotel is the first and only property in Malaysia to achieve a total of six internationally recognised certifications.
The hotel’s most recent certifications include ISO 22000 and MS 1480 for Food Safety Management Systems,
which were awarded in March 2008. These awards are in addition to achievements inquality management, environmental management (ISO 14001) and occupational health and safety previously
attained by the hotel. This recognition is due to stringent policies and procedures, which
are subject to close monitoring and thorough documentation across all departments. Separate committees
comprised of all hotel employees meet regularly to address issues and explore ways tosolve problems and enhance services.
General Manager Pierre Barthes notes, “With globalization and the higher expectation of world-class quality
services and facilities—as well as a heightened awareness of environmental, health and safety matters—both
corporate and individual customers are increasingly particular regarding their choice of hotel. It has become
imperative that international as well as local certifications are in place, and at Mandarin Oriental, Kuala Lumpur, wemean business when it comes to delivering quality to each and every guest.”
For more information, refer to Mandarin Oriental, Kuala Lumpur Leading City Hotel Sets Quality Mark & Standards
www.mandarinoriental.com/about_mo/media/press_kits/kuala_lumpur/ims.aspx/.

Smart Purchasing, Receiving and Storage
Materials management is one of the major Corporate Responsibility programme activities at Mandarin Oriental, Kuala
Lumpur. The concept of materials management is to focus on the process of integrating the flow of materials into,
through and out of the hotel to achieve a maximum efficiency. This ensures that the right goods are available at theright time, providing the right quantity and quality, and procured in such a way as to best achieve value for money.
Some benefits derived from Kuala Lumpur’s materials management initiative include:■ Inventoried stores (capital-holding stores) are kept to the minimum■ Purchasing and receiving goods is equal to the cost directly to the operating department which immediately
affects the bottom line
■ Improved communication between hotel and supplier as requirements are pre-planned■ Reduced lead times and space for store and less waste generation
The materials management department policy requires that, when sourcing for products, first priority should begiven to locally produced products—especially “green” products that meet the requirements of the hotel. A few ofthe efforts Kuala Lumpur have made to source green products from vendors are listed below:

Plastic
bags are replaced with non-woven fabric or paper bags which can be recycled, naturally decomposedand completely incinerated without any production of poisonous pollutants.
■ All guestroom paper products are from recycled paper cardstock. Printing is done with eco-friendly ink approvedby the US Food and Drug Administration (USFDA).
■ All oils, fragrances and essences for our Spa products are derived from organically grown plants and contain
100% natural ingredients.
■ The Vitality Club Gymnasium flooring called NEOFLEX contains a high percentage of recycled rubber chips andnontoxic substances that do not harm the environment. It is halogen-free, formaldehyde-free and PVC-free, andcan be recycled again after use.
■■

Housekeeping chemicals used in rooms and public areas are environmentally friendly and biodegradable.

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor tThefood and beverage department currently uses seven biodegradable products. A new biodegradable product called “Wash & Walk” isbeing tested, whereby water usage can be reduced by 75 litres per application or 26,000 litres per year per kitchen.
■ All packaging is returned to suppliers for purposes of recycling or reuse.
■

Several teams are established in the hotel to effectively manage our environmental responsibilities. The Environment Care Team iscommitted to ensuring that efforts are made throughout the hotel to minimize adverse effects on the environment. The team createsawareness and activities on environmental protection and conservation, and continuously improves environmental initiatives within the
hotel and out in the community. Additionally, the Waste Management Team’s efforts have included waste management processes, and its
practices have been benchmarked by very significant members of the business community. These include Petronas Towers, one of theworld’s tallest skyscrapers, and Kuala Lumpur City Centre, both of which feature the use of bio-gas and composite products.

“We constantly maintain our commitment
towards improving the quality of our services
and facilities and ensuring the health andsafety of our guests. And we never forget our
corporate responsibility towards the protectionof the environment.”—Pierre J. Barthes
General Manager
Mandarin Oriental, Kuala Lumpur

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Sustainability is about doing
well by doing good. We
aspire to lead our industry inthe quest for sustainability.

—Terry Stinson
Group Development Director
and President of the Americas

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t

Future Directions
The work discussed in this report is our first step, and we embrace the challenges
and new opportunities that our focus on sustainability will bring. Mandarin Oriental
is committed to making a difference and leading the luxury hospitality industry insustainability. We have a sense of urgency, and we recognise this pursuit requires
both immediate action and the adoption of a long-term view that goes beyond ourcurrent eco-efficiency efforts. We will begin by establishing sustainability objectives
and targets that are measured over a ten-year period to 2016. This will allow us tostrategically adopt action plans for capital investments to fund new technologies andoperational initiatives. We will gradually increase our key performance indicators toeliminate waste that doesn’t add value for our customer, whether it is waste headed
for the landfill or greenhouse gas emissions that accumulate in the atmosphere.
On the social dimension, our long history of championing the communities we serve
will be bolstered by additional Group measures of our investment and the benefits
communities in turn receive.
We will continue to develop our workforce and improve systems and processes
that help our colleagues deliver excellence, providing a work environment that issafe, sound and sustainable, to include an examination of diversity throughout theorganisation. This year we will expand our brand standards and document roles andresponsibilities that ensure we live our corporate responsibility values on a daily basis.
Finally, we will use our position as a leader to influence others. A network ofcolleagues who are leading the way will be formed to share best practices andaccelerate progress Group-wide; together we will reach out to guests and partners tojoin us in ‘Doing More for a Sustainable Future’.
We invite your feedback on this report, and look forward to beginning a meaningful
dialogue that helps us all on our quest. Please direct inquiries and suggestions toDanielle DeVoe [DDeVoe@mohg.com] or Peter Lofgren [PLofgren@mohg.com].

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP

Our report and the Global Reporting Initiative
Mandarin Oriental Hotel Group used the 2006 G3 Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI) to prepare thisreport. This index covers all profile disclosures and core performance indicators on which we have completely or partially reported. Please visit
www.globalreporting.org for the full text of the indicators and other information on the Guidelines.
KEY● Full Coverage ● Partial Coverage

GRI G3 Strategy And Profile
S t rat egy a n d A n a lys i s
Indicator	Description
1.1	Statement from the mostsenior decision-maker of the organization.

Status

Where to find information●

SR: Message from the CEO

Status

Where to find information

P rof i l e
Indicator	Description
2.1

Name of the organization.

●

SR: Cover; About this Report

2.2

Primary brands, products, and/or services.

●

SR: About this Report

2.3

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

AR: Financial Review

2.4

Location of organization’s headquarters.

●

AR: Contact Addresses

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

●

SR: About Mandarin Oriental Hotel Group

2.6

Nature of ownership and legal form.

●

AR: Operating Summary

2.7

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

●

SR: About Mandarin Oriental Hotel Group

2.8

Scale of the reporting organization.

●

SR: About Mandarin Oriental Hotel Group2.10

Awards received in the reporting period.

●

SR: Awards

R epor t Parame t ers
Indicator	Description

Status

Where to find information

3.1

Reporting period (e.g., fiscal/calendar year)
SR: Scope and Boundaries●
for information provided.						

3.2Date of most recent previous report (if any).

●

SR: About this Report

3.3

Reporting cycle (annual, biennial, etc.).

●

SR: Scope and Boundaries

3.4

Contact point for questions regarding the report or its contents.

●

SR: Future Directions

3.5

Process for defining report content.

●

SR: About this Report

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries,
leased facilities, joint ventures, suppliers).
See GRI Boundary Protocol for further guidance.

●

SR: Scope and Boundaries

3.7

State any specific limitations on the scope or boundary of the report●(see completeness principle for explanation of scope).		

SR: Scope and Boundaries
				

3.9

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

SR: Advancing Sustainability:
Environmental Performance Summary;Highlights

3.12	Table identifying the location of the Standard Disclosures in the report.
AR=Annual Report

SR=Sustainability Report●

SR: Table of Contents

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t
KEY● Full Coverage ● Partial Coverage

GRI G3 Strategy And Profile, continued

G o v er n a n ce , C omm i t me n t s a n d E n gageme n t
Indicator	Description

Status

Where to find information

4.1

Governance structure of the organization, including●
committees under the highest governance body		
responsible for specific tasks, such as setting
strategy or organisational oversight.

AR: Corporate Governance

4.2

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

AR: Corporate Governance

4.3

For organizations that have a unitary board structure,●state the number of members of the highest governance 		
body that are independent and/or non-executive members.

AR: Corporate Governance

4.4

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

AR: Shareholder Information; Contact Addresses

4.6

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

AR: Corporate Governance

4.8

Internally developed statements of mission or values,●
codes of conduct, and principles relevant to economic, 		environmental, and social performance and the status 		
of their implementation.		

SR: Message from the CEO;
Commitments and Standards;
Delivering Excellence:
Compliance, Safety and Security

4.9

Procedures of the highest governance body for●overseeing the organization’s identification and management 		
of economic, environmental, and social performance, 		
including relevant risks and opportunities, and adherence orcompliance with internationally agreed standards,
codes of conduct, and principles.

SR: Commitments and Standards;
Delivering Excellence:
Compliance, Safety and Security

4.14

List of stakeholder groups engaged by the organization.

●

SR: Championing Community

Status

Where to find information

GRI G3 Performance Indicators – Economic
E co n om i c P erforma n ce
Indicator	Description
EC1

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

AR: Financial Statements

EC3

Coverage of the organization’s defined benefit plan obligations.

●

AR: Financial Statements

EC4

Significant financial assistance received from government.

●

AR: Financial Review

M arke t P rese n ce
Indicator	Description

Status

Where to find information

EC5

Range of ratios of standard entry level wage●
compared to local minimum wage at significant 		
locations of operation.

SR: Delivering Excellence;
Respect and Responsibility

EC7Procedures for local hiring and proportion of●senior management hired from the local 		
community at significant locations of operation. 		

SR: Delivering Excellence;
Respect and Responsibility

AR=Annual Report

SR=Sustainability Report

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP
KEY● Full Coverage ● Partial Coverage

GRI G3 Performance Indicators – Environmental
E n ergy
Indicator	Description

Status

Where to find information

EN3

Direct energy consumption by●
primary energy source.		

SR: Advancing Sustainability: Energy Management

EN4

Indirect energy consumption by primary source.

●

SR: Advancing Sustainability: Energy Management

EN5

Energy saved due to conservation●and efficiency improvements.		

SR: Advancing Sustainability: Energy Management

EN6

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

SR: Advancing Sustainability: Energy Management

EN7

Initiatives to reduce indirect energy consumption●
and reductions achieved. 		

SR: Advancing Sustainability: Energy Management

Wat erIndicator	Description

StatusEN8
Total water withdrawal by source.
●			Where to find information
SR: Advancing Sustainability:
Water Consumption and Efficiency; Biodiversity

B i o - D i v ers i t y
Indicator	Description

Status

Where to find information

EN13
Habitats protected or restored.
●			

SR: Advancing Sustainability:
Water Consumption and Efficiency; Biodiversity

EN14

SR: Advancing Sustainability:
Water Consumption and Efficiency; Biodiversity

Strategies, current actions, and future plans●
for managing impacts on biodiversity.		

E m i ss i o n s , E ff l u e n t s , Was t e
Indicator	Description

Status

Where to find information

EN16

Total direct and indirect greenhouse gas emissions by weight.

●

SR: Advancing Sustainability: Reducing Emissions

EN18

Initiatives to reduce greenhouse gas emissions●
and reductions achieved.		

SR: Advancing Sustainability: Reducing Emissions

P ro d u c t s / S er v i ces
Indicator	Description
EN26

Status

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

Where to find information
SR: Advancing Sustainability: Delivering ExcellenceO v era l l
Indicator	Description
EN30

StatusTotal environmental protection expenditures●and investments by type.		

AR=Annual Report

SR=Sustainability Report

Where to find information
SR: Advancing Sustainability: Energy Management

MANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor t
KEY● Full Coverage ● Partial Coverage

GRI G3 Performance Indicators – Labour Practices And Decent WorkE mp l oy me n t
Indicator	Description

Status

Where to find information

LA1

Total workforce by employment type, employment contract, and region.

●

SR: Delivering Excellence: Responsibility and Respect

LA3

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

SR: Delivering Excellence: Responsibility and Respect

LA7

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

SR: Delivering Excellence:
Compliance, Safety and Security

Tra i n i n g a n d E d u cat i o n
Indicator	Description

Status

Where to find information

LA10

Average hours of training per year
SR: Delivering Excellence: Responsibility and Respect●
per employee by employee category. 			

LA11

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

SR: Delivering Excellence: Responsibility and Respect

LA12

Percentage of employees receiving regular●performance and career development reviews.		

SR: Delivering Excellence: Responsibility and Respect

D i v ers i t y a n d E q ua l O ppor t u n i t y
Indicator	Description

Status

Where to find information

LA13

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

SR: Delivering Excellence: Responsibility and Respect

LA14

Ratio of basic salary of men to women by employee category.

SR: Delivering Excellence: Responsibility and Respect●

GRI G3 Performance Indicators – Human Rights
No n - D i scr i m i n at i o n
Indicator	Description

Status

Where to find information

HR3

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

SR: Delivering Excellence:
Learning and Development Opportunities

HR4

Total number of incidents of discrimination and actions taken.

SR: Delivering Excellence: Responsibility and Respect●

S ec u r i t y P rac t i ces
Indicator	Description
HR8

StatusPercentage of security personnel trained in the●organization’s policies or procedures concerning aspects 		
of human rights that are relevant to operations.

AR=Annual Report

SR=Sustainability Report

Where to find information
SR: Delivering Excellence: Responsibility and Respect

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2010 Sustainabilit y Repor t \ MANDARIN ORIENTAL HOTEL GROUP
KEY● Full Coverage ● Partial Coverage

GRI G3 Performance Indicators – Society
C omm u n i t y
Indicator	Description
SO1

Nature, scope, and effectiveness of any programs and practices
programs and practices that assess and manage theimpacts of operations on communities, including
entering, operating, and exiting.

Status

Where to find information●

SR: Championing Community

Status

Where to find information

C omp l i a n ce
Indicator	Description
SO8

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

AR: Financial Statements

GRI G3 Performance Indicators – Product Responsibility
C u s t omer H ea lt h a n d S afe t y
Indicator	Description
PR1

StatusLife cycle stages in which health and safety●
impacts of products and services are assessed 		for improvement, and percentage of significant products
and services categories subject to such procedures.

Where to find information
SR: Advancing Sustainability: Delivering Excellence

P ro d u c t a n d S er v i ce Labe l l i n g
Indicator	Description
PR3

Type of product and service information required byprocedures, and percentage of significant products andservices subject to such information requirements.

Status

Where to find information●

SR: Advancing Sustainability: Delivering Excellence

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

SR: Delivering Excellence: Guest Satisfaction andGuest Satisfaction and Loyalty;
Product Responsibility and Materials Management

PR5

AR=Annual Report

SR=Sustainability ReportMANDARIN ORIENTAL HOTEL GROUP \ 2010 Sustainabilit y Repor tawardsMandarin Oriental’s commitment to delivering excellence has been consistently recognised by the industry
and leading publications. Listed below are some of the many prestigious honours received by theGroup and its properties in 2010. For a full listing, please visit us at www.mandarinoriental.com/awards/.

Forbes Travel Guide 2010
Eight hotels were awardedin the lodging category.
Six Mandarin Oriental Spas
received the Five-Star Spa Award,
more than any otherhotel group in the world.

The Wall Street Journal
Asia’s 200 Most Admired Companies
November 2010
No. 4 in Hong Kong’s Top 10

Institutional Investor
Eleven hotels appeared in the prestigious‘World’s Best 2010’
American Automobile Association
Four and Five Diamond Award
Six hotels received the prestigious
Four and Five Diamond
Lodging Award in 2010
Travel + Leisure US
500 World’s Best Hotels 2010 - January 2010
Eight hotels were included on the prestigious
World’s Best Awards 2010

Condé Nast Traveller, UK
Reader’s Travel Awards - October 2010
Three hotels honoured
Gold List - January 2010
Three hotels awarded

Zagat
World’s Top Hotels, Resorts & Spas - 2009/2010
Hotel Chain & Marketing Group Rankings:
Extraordinary to Perfection

SpaFinder Magazine
Readers’ Choice Awards 2010
Best Spa Brand

MICHELIN Guide 2010
Nine Mandarin Oriental restaurants
were honoured witha total of ten Michelin Stars
Business Traveller Asia-PacificSeptember 2010
No. 2 Best Hotel Brand in Asia-Pacific
The Daily TelegraphUltraTravel Top 100 - May 2010
Best Luxury Chain

Guardian.co.uk
Travel Awards 2010
No. 1 in Best Overseas Hotel

SpaAsia
Crystal Awards 2010
Best Wellness & Spa Group

Condé Nast Traveler, USGold List - January 2010
Eleven hotels awarded
Business Travel Awards - October 2010
No. 3 in Top Hotel Brands
Readers’ Choice Awards - November 2010
Fifteen hotels honoured

Spa Magazine
Silver Sage Awards - 2010
Five hotels honoured

63

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

www.mandarinoriental.com