mandarin oriental hotel group2011 Sustainability ReportMandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

2
2
3
4
7

Deliv er ing excellenceActing with Responsibility
Employer of Choice
Colleague Development
Providing a Safe Environment
Delighting our Guests
Sourcing Responsibly

10
11
13
15
16
19
20

Adva ncing susta ina bilit y
Using Energy Efficiently
Mitigating our Impact on the Climate
Managing our Water Footprint
First Steps in Waste Reduction
Environmental Performance Summary

28
32
34
42
46
50

Ch a mp io ning Co mmunit y
Cultural Heritage
Community Education
Community Programmes

54
55
58
60

Fut ur e Dir ect io ns

64

APPENDICES	65
Sustainability Awards and Certifications 65
Global Reporting Initiative(GRI) Indicators Index
66
Assurance Documentation
68

ta ble o f co ntents

Int ro duct io n
Message from the CEO	
About this Report
Commitments and Practices
About Mandarin Oriental Hotel Groupm a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

2introduc tion

Our commitment tosustainability
message fro m the ceo

I am pleased to present Mandarin Oriental Hotel Group’s first Sustainability Repor t, which highlights
the Group’s collective programmes and accomplishments in championing the communities in which
we operate and advancing environmental sustainability.
As a responsible organisation, we strive to create value for our stakeholders, care for our colleagues andthe communities in which we operate, and respect the environment now and for generations to come.
While corporate responsibility values are deeply ingrained in our heritage, we have sharpened our
focus on sustainability over the last decade. We are committed to energy efficiency and to reducing ourcarbon emissions, and this repor t illustrates the steps we have taken to reduce our energy consumption,
manage waste more efficiently, conserve water and reduce our greenhouse gas emissions.
Goals have been clearly set to ensure that all of our colleagues are encouraged to “do more for asustainable future”. To this end, Mandarin Oriental has joined with the World Travel and Tourism
Council (WTTC) in an industry-wide commitment to reduce total CO2 emissions by no less than
50% from 2005 levels by 2035. Emissions reduction is therefore a key focus for the Group as we
implement new environmental management processes at our hotels over the coming years. As
highlighted in this repor t, the Group’s hotels have already achieved more than an 11% reduction inenergy intensity since measurement began in 2007. The achievement of long-term energy reduction
goals is therefore well underway.
As a fur ther example of our commitment to sustainability, the Group officially removed shark ’s finfrom all restaurants and banqueting menus worldwide at the beginning of 2012. In addition, manyof our hotels have implemented sustainable seafood programmes, which we aim to expand uponthroughout the Group. In so doing, we are focused on providing guidelines for sustainable sourcing,
not just in the area of food and beverage, but throughout our operations.
Mandarin Oriental hotels also actively par ticipate in their communities and enthusiastically embrace
their local cultures. As an organisation, we are committed to preserving cultural heritage andsuppor ting the local communities in which we operate.
While we are encouraged by the steps we have already taken towards our environmental and social
goals, we recognise many oppor tunities to fur ther improve our performance. Our environmental
and community effor ts are designed to make a positive difference in the world, in order to ensure afuture that offers the same oppor tunity for fulfilment that we enjoy today. We embrace this visionand look forward to making it a reality.

Edouard EttedguiGroup Chief Executive

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introduc tion

About this Report
This report was prepared to be consistent with the Global Reporting Initiative (GRI) sustainability reporting methodology,
at Level C+. It is Mandarin Oriental’s practice to retain an independent third-party auditor to verify and assure the claimspresented within the sustainability report and to ensure conformance with the GRI G3 protocol for the indicators disclosed.
The report was checked on conformity with GRI and verified and assured by third party auditors LRQA, based in HongKong. LRQA’s documentation of assurance is located in the Appendix and includes the scope and boundary of their review.
A GRI index is also included at the end of this report.

Scope and Boundaries
This report presents activities undertaken in the calendar year 2011 for the Group’s 25 hotels that were fully operational in
2011. Mandarin Oriental Riviera Maya, Mexico and Mandarin Oriental, Paris were not included in performance reporting,as neither was fully operational in 2011; however, our Paris property is included in an illustrative case study. Residences andhotels under development are also not included in this report.
Where appropriate, historical information has been included, with reference to the baseline year 2007 for environmental
data and year 2008 for occupational health and safety data. Content included in this report is material to our business anddoes not cover topics in the GRI guidelines on which we have little impact or that affect us nominally. Materiality has been
defined through an ad hoc process of identifying stakeholder needs and the Group’s industry knowledge.
All calculations are completed in accordance with industry practices or as recommended by the GRI and are explained withineach section. Any exceptions to the scope, boundary, or calculation method presented here are noted individually.

Our corporate responsibility policy
Mandarin Oriental is committed to contributing to thecommunities in which we operate and responsibly managing ourenvironmental impacts and social commitments.

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4introduc tioncommitments and practices
As stated in our corporate responsibility policy, Mandarin Oriental is committed to contributing to the communities in which
we operate and responsibly managing our environmental impacts and social commitments.

commitments
Operate in anenvironmentally and socially
responsible way
Delivering
E xcellence
Engage and inspireothers in ‘Doing More for a
Sustainable Future’

Advancing
Sustainability

Through training and education, we are empowering our colleagues tomake decisions that are environmentally and socially responsible.
Management responsibility is assigned and resources are allocated to implement andreview performance of corporate responsibility policy commitments and objectives.
Stakeholders are consulted and their feedback is solicited
to continuously improve our performance.
The Group and our hotels partner with members of their local
communities, the hotel and tourism sector, government and nongovernment organisations to achieve broader sustainability goals.

Publicly report our impact
on the environment

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

Meet or exceed all applicable
environmental standards

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

Minimise our consumptionof resources including
energy, water and materials

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

Reduce our greenhousegas emissions,waste and pollution
Championing
Community

C o r p o r at e R e s p o n s i b i l i t y P r ac t i c e s

Positively impact our local
communities and celebrate
our cultural heritage

The Group will develop sustainable supply chain management guidelines to ensurethat environmental criteria are taken into account in all purchasing decisions.
Innovation and technology are used to gradually reduce our dependence on
fossil fuels and improve resource efficiency in all areas of our operation.
All colleagues are encouraged to participate in projects that contribute to thewell-being of the communities in which they operate: projects that help those in need;preserve cultural heritage; conserve natural resources and restore habitats.

E n v i ro n m e n ta l S u s ta i n a b i l i t y G oa l s
Area

K PI

S h o r t -Te r m G o a l

L o n g -Te r m V i s i o n

C u r r e n t S t a t u s ( y e a r e n d 2 011)

EnergyIntensity

MJ /square metre

Reduction of 10% by 2012
over 2007 levels

Reduction of 20% by
2020 over 2007 levels

Reduction of 11.3%

Emission
Intensity

kg CO2e /square metre

Reduction of 10% by 2012
over 2007 levels

Reduction of 25% by2020 over 2007 levels

Reduction of 5.0%

Water
Intensity

litre /
guest night

Reduction of 10% by 2012
over 2007 levels

Reduction of 20% by
2020 over 2007 levels

Reduction of 12.2%

Waste
Intensity

kg of waste
sent to landfill /guest night

Develop a complete,accurate, consistent andtimely measurement
process by 2012

Reduction of 20% by
2020 over 2012 levels

Not available,
as goal is defined for
2012–2020

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introduc tion5

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

6

introduc tion

Mandarin Oriental, Bangkok

Mandarin Oriental Dhara Dhevi, Chiang Mai

Mandarin Oriental, Hong Kong

The Landmark Mandarin Oriental, Hong Kong

The Excelsior, Hong Kong

Mandarin Oriental, Jakar ta

Mandarin Oriental, Kuala Lumpur

Mandarin Oriental, Macau

Grand Lapa, Macau

Mandarin Oriental, Manila

Mandarin Oriental, Sanya

Mandarin Oriental, Singapore

Mandarin Oriental, Tokyo

Mandarin Oriental, Atlanta

Elbow Beach, Bermuda

Mandarin Oriental, Boston

Mandarin Oriental, Las Vegas

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, San Francisco

Mandarin Oriental, Washington D.C.

Mandarin Oriental, Barcelona

Mandarin Oriental, Geneva

Mandarin Oriental Hyde Park, London

The Group now operates,or has under development,
45 hotels in 28 countries
19 in Asia
13 in The Americas
13 in Europe, Middle Eastand North Africa
Mandarin Oriental, Munich

Mandarin Oriental, Paris

Mandarin Oriental, Prague

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

introduc tion

About
Mandarin Oriental
Hotel Group
Mandarin Oriental Hotel Group is an international hotel investment and management group with luxury hotels, resorts
and residences in highly sought-after destinations worldwide. The Group operates, or has under development, 45 hotels
in 28 countries globally. In addition, the Group operates, or has under development, 14 Residences at Mandarin Oriental
connected to the Group’s properties. The Group has equity interests in a number of its properties and net assets ofapproximately US$2.7 billion as of 31st December 2011.
In all of the communities where we operate, our properties contribute to the local economy by hiring employees,
providing services for guests and engaging suppliers and contractors from the community. We also provide significant
tax revenues to local governments. The following table outlines the direct economic value generated and distributed by
Mandarin Oriental, including revenues, operating costs, employee compensation and payments to providers of capitaland governments. Despite the economic challenges our industry has faced recently, we have continued to support
our colleagues, as shown by the stable-to-increasing trend of wages paid to revenues earned since 2008. Community
investment in the form of charitable donations and volunteerism is provided by colleagues and hotels directly torecipients in their communities and currently is not tracked on a Group level.
Mandarin Oriental Hotel Group is incorporated in Bermuda and is headquartered in Hong Kong. The Company’s
equity shares have a Premium Listing on the London Stock Exchange and secondary listings in Bermuda and Singapore.
Jardine Matheson Group is the parent company of Mandarin Oriental and owns a majority of the equity shares.
For more information regarding our corporate structure or governance, or for our full financial disclosure, pleaserefer to our Annual Financial Report available on our website at mandarinoriental.com.

D i r e c t E c o n o m i c Va l u e G e n e r at e d a n d D i s t r i b u t e d
US $ m

2 011

2 010

2009

2008

COMBINED TOTAL REVENUE1

1,196.4

1,025.5

838.3

1,016.1

EBITDA 2

163.0

136.4

87.5

163.9

DIRECT VALUE GENERATED (REVENUE)

614.2

513.2

438.0

530.0

Cost of sales

377.3

326.6

298.1

324.5

223.8

195.2

184.0

190.5

Selling and distribution costs & administrative expenses

147.8

121.7

116.3

119.3

Payments to providers of capital (dividends & financing)

61.8

82.3

84.1

85.7

- Dividends paid

49.8

69.2

68.9

68.7

- Financing

12.0

13.1

15.2

17.0

Tax payments to governments

19.0

12.0

1.1

18.3

Community investment4

–

–

–

–

- Employee wages and benefits

3	Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate, joint venture and managed hotels
	EBITDA of subsidiaries plus the Group’s share of EBITDA of associates and joint ventures
Retirement benefits vary by location. Where direct benefit plans are in place, a separate fund is maintained4	Community investment is directed by each hotel separately and has not been collected by Mandarin Oriental Hotel Group to date
1
2
3

7

section name8

M ANDARIN ORIENTAL H OTEL G ROU P s u s ta i n a b i l i t y r e p o r t 2 011

Our mission is to completely delightand satisfy our guests.
We are committed to making a
difference every day;continually getting betterto keep us the best.

section named e l ive r i n g e xce lle n c e
Mandarin Oriental, Macaum a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

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d e l i v e r i n g e xc e l l e n c e

Delivering excellence
Mandarin Oriental Hotel Group has a long tradition of delivering excellence, visible through our dedication to customer
service, our involvement in the development of our colleagues—both personally and professionally—and our focus onconsistently delivering returns to our shareholders.
Mandarin Oriental’s long-standing Guiding Principles describe values from our company and our colleagues, observed in our
pursuit of excellence. Our Guiding Principles are:
Delighting our guests
We will strive to understand our client and guest needs by listening to their requirements and responding in a competent,
accurate and timely fashion. We will design and deliver our services and products to address their needs. In fact, we arecommitted to exceeding their expectations by surprising them with our ability to anticipate and fulfil their wishes.
Working together as colleagues
We will emphasise the sharing of responsibility, accountability and recognition through a climate of teamwork. By
working together as colleagues and by treating each other with mutual respect and trust, we will all contribute to theGroup’s overall success more productively than if we worked alone.
Promoting a climate of enthusiasm
We are committed to everyone at Mandarin Oriental by providing a caring, motivating and rewarding environment.
As an industry leader, we are committed to bringing out the best in our people through effective training andmeaningful career and personal development, and by encouraging individuality and initiative.
Being the best
We will be an innovative leader in the hotel industry and will continually improve our products and services. We willseek from our suppliers the highest quality products and services at the best value.
Delivering shareholder value
We are committed to being a growing company. Our successes will result in investment returns which areconsistently among the best in the hotel industry.
Playing by the rules
We will maintain integrity, fairness and honesty in both our internal and external relationships and will consistently
live up to our commitments.
Acting with responsibility
We will actively participate in the improvement of the environment, just as we will be responsible members of ourcommunities and industry organisations.

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d e l i v e r i n g e xc e l l e n c eActing with Responsibility
Responsibility is a key tenet of Mandarin Oriental’s Guiding Principles. This section outlines our foundation for ethical behaviour,
our Code of Conduct and our governance programme, which is embodied within the ‘Acting with Responsibility’ principle.

The Foundation of our Ethical Behaviour
Mandarin Oriental Hotel Group has developed Group-wide employment guidelines and implemented strict anti-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 or harassment. 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 maintain a policy of prohibiting harassment based on sex, disability (including physical or mental disability andmedical condition), race, colour, religion, national origin, ancestry, citizenship status, age, sexual orientation and marital
status, even if such conduct is not prohibited under local laws.
Every colleague receives training on our employment policies upon hiring, as part of the “Move-In” training programme.
The Group conducts business in a professional, ethical and even-handed manner. Our Code of Conduct requires that wecomply with all laws of general application, all rules and regulations that are industry specific and proper standards of businessconduct. The code prohibits the giving or receiving of illicit payments and requires all colleagues to be treated fairly, impartiallyand with respect. It also requires that all managers must be fully aware of their obligations under the Code of Conduct andestablish procedures to ensure compliance at all levels within their organisations. The Group has in place procedures by whichcolleagues can raise, in confidence, matters of serious concern in areas such as financial reporting or compliance.

Governance for Sustainability
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 and an
executive-level member of the management board. In 2011, Mandarin Oriental formalised a Group Corporate Responsibility
Committee (GCRC) which was launched in 2012. The GCRC is responsible for the overall sustainability strategy, including
the setting of measurable goals, gathering information needed for programme development, promoting Corporate
Responsibility practices internally and reporting to senior management on progress and programme effectiveness. In 2011,
Corporate Responsibility Champions were also designated at every Mandarin Oriental hotel worldwide. The GCRC will
engage with the hotel Champions together with their respective hotel Corporate Responsibility Committees to implement
initiatives and programmes and to request feedback on programme effectiveness.

SUS TAINABILI T Y G OVERNANCE O rg a n i s at i o nGroup Corporate Responsibility Committee with Executive Champion
Hotel Corporate Responsibility Champions
Hotel Corporate Responsibility Committees
Colleagues

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d e l i v e r i n g e xc e l l e n c e

Stakeholder Engagement
Mandarin Oriental Hotel Group recognises the importance of engaging its stakeholders to understand their concerns andissues. The dialogue developed between Mandarin Oriental and its stakeholders allows us to appreciate their viewpoints andbetter understand how our business value propositions can be aligned with their goals.
In 2011, Mandarin Oriental developed a stakeholder engagement approach to formalise interaction strategies. Corporate
Responsibility Committee members are actively encouraged to obtain feedback from key stakeholders on our first externalsustainability report, within three months of issue. Feedback will be based on a predefined set of interview questions. In
addition, sustainability awareness training will be integrated into colleague orientation. We seek to motivate everyone in
our organisation to continue providing information and to play an active role in the development and implementation ofsustainability initiatives within our hotels and the communities in which we operate.
The following is a list of key stakeholders identified to date:• Guests• Colleagues• Hotel and property owners• Shareholders• Vendors, suppliers and contractors• Industry peers and trade associations• Journalists and media representatives• Non-governmental organisations (NGOs) and outside advisors hotels have engaged to date
In 2011, we engaged our guests, colleagues, investors, the communities in which we operate, property owners and otherstakeholders through various avenues of communication, including the preparation and communication of the internal sustainability
report, our colleague engagement and guest satisfaction/loyalty surveys and disclosure of our annual financial report.
Our practice of stakeholder engagement has evolved over our long history, rather than as a result of a formal definedprocess. As we progress on our sustainability journey, we will continue to define and refine our stakeholders and ourinteraction with them.

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d e l i v e r i n g e xc e l l e n c e

EMPLOYER OF CHOICE
Empowering our colleagues is central to our business and critical for delivering the top quality service that defines our brand.
Mandarin Oriental is committed to being an employer of choice. Consistent with this goal, we are committed to:• Selecting the finest hospitality professionals• Ensuring that all colleagues are treated with respect, courtesy and dignity, and that they work in clean, pleasantand safe environments• Providing effective training and meaningful career and professional development• Maintaining an “open-door” policy where colleagues will find support from caring and empathetic colleagues
Globally, our workforce comprises full-time, part-time and casual colleagues who are hired for a flexible period of time. Asof December 2011, Mandarin Oriental employed some 11,400 colleagues in the 25 fully operational hotels and all corporate
offices. The vast majority of colleagues, 90%, were employed on a full-time basis, with 5% working part-time and theremaining 5% on a casual basis. 80% of colleagues are line staff, with an additional 18% working in management functions and
2% as executives.
In 2011, Mandarin Oriental experienced a turnover rate of 29%, which is significantly below the industry average of 48% 5.
The highest rate of turnover is experienced for colleagues under age 30, with 39% turnover. The Americas has the lowest
overall figure, followed by Asia and then Europe.
In 2011, response to our colleague engagement survey was 95%, with an 84% favourable (excellent or above average) rating.
Colleague engagement surveys are conducted annually.

Tota l wo r kf o rc e by e m p loy m e n t t y p e a n d r e g i o n
Full-timePart-time

CasualTotal

Per Cent

Asia

6,703

427

349

7,479

66%

The Americas

2,318

90

185

2,593

23%

Europe

1,190

62

36

1,288

11%

Total

10,211579

570

11,360Per Cent

90%

5%

5%

Tota l wo r kf o rc e by e m p loy m e n t c at e g o ry a n d r e g i o n
Executive

Management

Line Staff

Total

Per Cent

Asia

162

1,425

5,892

7,479

66%

The Americas

55

390

2,148

2,593

23%

Europe

44

250

994

1,288

11%

Total

261

2,065

9,034

11,360Per Cent

2%

18%

80%

Tota l s e pa r at i o n s a n d t u r n ov e r by ag e g ro u p a n d r e g i o n
<30

5
6

30 –50>5 0

To t a l

Asia

1,037

42%

812

25%

134

15%

1,983

30%

The Americas

250

40%

328

22%

63

13%

641

25%

Europe

173

29%

111

33%

47

98% 6

331

34%

Total

1,460

39%

1,251

25%

244

17%

2,955

29%

	AH&LA and Hospitality Industry Diversity Institute, “Turnover and Diversity in the Lodging Industry”, 2004. www.ahla.com/content.aspx?id=3308
Value appears significant as there are few colleagues in this category13m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

14

d e l i v e r i n g e xc e l l e n c eComprehensive Employment Benefits
Benefits are provided to all full-time colleagues. Benefits vary by location, but typically include health, disability and life
insurance coverage, as well as leave and retirement benefits. Part-time and casual colleagues are entitled to benefits as
required by local labour laws and conditions, and these benefits may be pro-rated based on the hours worked.
Performance and development reviews are conducted annually, and in 2011, 72% of all hotel colleagues received such reviews.

Diversity and Equal Opportunity at the Core of our Company
Mandarin Oriental is a very diverse company, with 119 nationalities represented throughout the hotels and leadership teams.
The three most represented countries are China, the United States and Thailand. Employment by gender comprises 56% men and
44% women. Nearly half (49%) of colleagues are between the ages of 30 to 50. Corporate leadership (including the Operating
Committee) is comprised of more men (86%) and European nationals (71%) than the company as a whole. Senior leadership at theindividual hotels is more ethnically diverse than the corporate leadership and is representative of the local population.

tota l wo r k f o rc e by n at i o n a l i t y,
p r e s e n t e d by c o n t i n e n t, 2 011 ( p e r c e n t )AFRICA
1%
ASIA
70%

NORTH
AMERICA19%

SOUTH
AMERICA2%
EUROPE8%

tota l wo r k f o rc e by g e n d e r ,2 011 ( p e r c e n t )FEMALE
44%

MALE
56%

OCEANIA0% tota l wo r k f o rc e by ag e g ro u p

d i s t r i b u t i o n , 2 011 ( p e r c e n t )AGE <3037%
AGE 30–50
49%

AGE >5014%

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d e l i v e r i n g e xc e l l e n c e

COLLEAGUE DEVELOPMENT
Our extensive learning and development programmes contribute to the skills, knowledge and motivation of our colleagues.
Colleagues participate in annual training, as well as training upon hire or with changes in job duties. Learning and development is
integral to Mandarin Oriental’s culture—each colleague is empowered to be their best whether it is central to their professional
development or their personal development. Beyond core training, the following training programmes are in place:

Training for Excellence
Delightful service is expected of allcolleagues. Industry standards workshops(e.g. safe food handling), Legendary
Quality Experience training and culturaltraining are provided to ensure colleague
compliance with our standards of service.
Industry and product training is tailoredto each colleague’s role. Records detailingcolleagues trained and training time are
maintained at each location. On average,
each colleague completed 19 hours of
training in 2011, with women and men
receiving near the same number of hours(19 hours for women and 18 hours formen, respectively). Management receives
the most training, due to leadership andmanagement skills courses.

H o u r s o f T r a i n i n g p e r y e a r by e m p loy e e c at e g o ry, 2 011
22

21
20

19

19

18
18

16
Executive

Management

Line Staff

Total

Supporting Continuous Learning
Leadership and personal development courses are conducted as part of our workplace practice through “The Learning
Framework”, which provides leadership development applicable to our colleagues’ current and future career goals. Somecourses include, but are not limited to, food and beverage management, management trainee programmes and MBA
programmes. Leadership training programmes encompass more training hours per colleague than any other training
programme, ensuring that our colleagues are developing people and operational skills useful throughout their careers.
Mandarin Oriental conducted 121 leadership training sessions in 2011.

Legendary Quality Experiences(LQEs) Our Legendary Quality
Experiences have been establishedto guide us in achieving our
mission to delight and satisfy ourguests. Designed to take into
account the cultural diversity of
the locations in which we operate,they define the core experiencesin guest/colleague interactions andrepresent the style and attention
to detail that we bring to our
hospitality and service.

15

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d e l i v e r i n g e xc e l l e n c e

PROVIDING A SAFE ENVIRONMENT
All aspects of the Group’s business are managed under our Group Risk Management Policy:
It is Mandarin Oriental Hotel Group’s policy to protect and preserve both tangible and intangible assets from loss or damage
that could affect its stakeholders, be they employees, guests, shareholders or the community in which it operates.
To supervise compliance and consolidate enforcement of this policy, the Group has established a Group Risk Management
Committee (GRMC), consisting of senior managers representing all areas of the operation. Mandarin Oriental maintains
compliance with all required laws and regulations through the GRMC governance programme. Mandarin Oriental did notreceive any notices of violation or significant fines at any of our operations in 2011.
One of the GRMC’s principal responsibilities is to manage the Safe & Sound programme, an integrated complianceframework developed in 2000 covering the following topics:• Fire Safety• Health and Safety• Security• Business Continuity Planning and Risk Management• Food and Beverage, Hazard Analysis
Critical Control Points (HACCP)• Spa, Fitness and Wellness (added in 2007)• Environment (added in 2012)

Mandarin Oriental retains PWT Environmental Consultancy, a UK-based health and safety consulting firm, to conduct theindependent annual compliance audits of the “Safe & Sound” programme. Together with PWT, the Group has developed
a detailed audit format that generates a 0–100% compliance score. Through a weighting formula, sections and topics withhigher associated risks carry more impact on the overall score.
To ensure the programme is well anchored locally, each hotel has a Risk Management Committee responsible for
implementation of the programme at the property level.
All of the underlying guidelines in the programme are based on recognised standards and international best practices, which
are continuously improved and updated as new technology and methods are being developed.
In 2012, Mandarin Oriental is expanding this programme with an environmental section that will include guidelines on
management of energy, greenhouse gas emissions, water consumption and waste generation, as well as more specific topics,
such as use of dry cleaning chemicals, refrigerants and generation of hazardous waste.
The environmental section will be fully implemented by 2014, when it will be included in third party compliance audits.
Phase 1 (2012) New sections related to the formation of hotel Corporate Responsibility Committees, management of
resources and emissions will be drafted and implemented. Guidelines related to environmental management present in theexisting programme under occupational health and safety, such as hazardous materials management, will be incorporated in
the new environmental section.
Phase 2 (2013) The programme will be expanded to cover other areas, such as sustainable purchasing and renewableenergy conversion.

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

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Safe & Sound Audit Performance Results
As shown in the graph below, overall Group audit scores have indicated a high level of compliance and consistent
performance highlighting our commitment to this important effort.
S a f e & S o u n d A u d i t P e r f o r m a n c e R e s u lt s , 2 0 0 2 – 2 011 ( p e r c e n t )
100
90
88.7

89.8

90.9

91.9

92.9

88.4

2002

2003

2004

2005

2006

2007

91

90

89.3

90.3

2008

2009

2010

2011

80
70
60
50
40
30
20
10
0

17

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18

d e l i v e r i n g e xc e l l e n c eManaging Our Health and Safety Performance
Mandarin Oriental aims to provide a pleasant and safe working environment to all of its colleagues as well as contractors working at
our hotels. Beyond the nearly 90% full-time, 5% part-time and 5% colleagues with casual employment contracts, we had approximately
200 independent contractors working in our facilities in 2011, as well as millions of guests for whom we provided a safe stay.
A comprehensive Occupational Health and Safety reporting system has been in place since 2002 and is used throughout
Mandarin Oriental’s operations. All work-related accidents and incidents are reported and thoroughly investigated to identify
the root cause and to initiate corrective and preventive measures. Each hotel is responsible for utilising the Safe & Sound
programme to ensure their colleagues have a safe working environment.
Key performance indicators of our health and safety performance include:• Incident rate, a measure of incidents resulting in lost time per 100 colleagues• Severity rate, a measure of lost days from those incidents per colleague

4

T o t al I nc i d e nts

T o tal I nc i d e nts

300
250

H e a lt h & S a f e t y I n c i d e n t s a n d I n c i d e n t R at e by R e g i o n , 2 0 0 8 – 2 011
3

350

5

200

2

300

4

150

1

250

3

100

0

200

I nc i d e nt R at e
I nc i d e nt R at ep e r 1 0 0 C o l l e aguepse r 1 0 0 C o l l e ague s

After a three-year steadily declining trend for the incident rate, we have observed an increase in 2011. The incident
rate increased from 2.7 incidents per 100 colleagues to 2.9, which represents an increase of 6%. Severity rate of thoseincidents also increased by 25% to reach 24.3 lost days per 100 colleagues. Housekeeping and kitchens tend to have themost incidents and the type of incidents typically resulting in lost time. Europe had the highest incident rate and severity
rate in 2011, whereas the Americas showed better than average performance for both indicators and a marked declineof the total incident rate in 2011. Overall, our health and safety record is strong, and we are committed to improving the
5350
consistency of our performance across the Group.

2008

2009

2010

2011

2

150

1

100

0
2008

2009

2010

LO ST T I ME I NC I DEN T S
A SI A I NC I D ENT R AT E
EU R O P E I NC I D ENT R AT E
A M ER I C A S I NC I DEN T R AT E
E IID
NC
T SE
TLO
O ST
T A LT IIM
NC
ENI DENT R AT
A SI A I NC I D ENT R AT E
EU R O P E I NC I D EN T R AT E
A MER I C A S I NC I DEN T R AT E
T O T A L I NC I D ENT R AT E

2011

350

60

300

50

250

40

350
200

60
30

300
150

50
20

250
100

40
10

200

2008

2009

2010

2011

30

150

20

100

10
2008

2009

2010

2011

Los t Day s p er I nciLos
dentt Day s per Inc i dent

T ot al In ci dent s

T ot al Inc i dent s

H e a lt h & S a f e t y I n c i d e n t s a n d S e v e r i t y R at e by R e g i o n , 2 0 0 8 – 2 011

LO ST T I M E I NC I DEN T S
A SI A SEV ER I T Y R AT E
EU R O P E SEVER I TY R AT E
A MER I C A S SEVER IT Y R AT E
ME ER
I NC
T ES
TLO
O ST
T A LT ISEVI TIYDEN
R AT
A SI A SEVER I T Y RAT E
EU R O P E SEV ER I T Y R AT E
A M ER I C A S SEVER IT Y R AT E
T O T A L SEVER I T Y R AT E

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d e l i v e r i n g e xc e l l e n c e

DELIGHTING OUR GUESTSAt Mandarin Oriental, luxury quality service is one of the Group’s strategic brand-defining competencies. A “culture ofquality” is promoted at all levels of our organisation. It allows for colleagues to adapt service standards to reflect their local
culture and environment, and empowers everyone to deliver personalised service to each guest. Our inspiration-based
service culture approach engages both colleagues and guests on an emotional level to build a genuine connection, leadingthem to be true “Fans” of the brand.
The Group has a number of quality improvement and assessment tools in place to measure customer 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.
The Group’s Guest Satisfaction/Loyalty Programme at each of our hotels invites guests to provide feedback through an
independent consultant via an email survey following their stay. Feedback is collected on guests’ perception of the brand as
well as their subjective evaluations of various aspects of product and service delivery.
The table below shows guest satisfaction/loyalty survey results for the Group conducted in all our hotels to gauge consumer
satisfaction and loyalty. Survey results for 2011 show a slight decrease (1%) but stay similar to historical values. Overall, thesurvey indicates consistently high levels of satisfaction and loyalty to the brand.
Mandarin Oriental maintains a variety of quality measurement processes to constantly evaluate and improve quality
performance through independent customer service mystery-shop evaluations. We are also evaluated and measured against
other international standards, including Richey International, the American Automotive Association (AAA), the Forbes Travel
Guide and the Michelin Guide.
Guest Satisfaction/Loyalt y and Response R ate , 20 07-2011 (per cent )
100
90
80
70
60
50
40
30
20
10
0
2007
Satisfaction Score

2008

2009
Response Rate

2010

2011

“Our Groupstrongly
believesin theconcept thatwhat getsmeasuredgets done.”—Andrew Hirst,
Operations
Director, Asia

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d e l i v e r i n g e xc e l l e n c e

SOURCING RESPONSIBLY
Promoting a culture of quality includes sourcing sustainably. The following section describes our responsible sourcing
initiatives and an example of the application of these initiatives in the development of our signature spa product line.
Mandarin Oriental strives to integrate farm-to-table sourcing within its restaurants, not just because the food is fresher, butalso because it is in season and it supports the communities in which we operate. Shorter transport distances further reduce
the environmental footprint. We have chosen two of our hotels, Mandarin Oriental, Singapore and Mandarin Oriental,
San Francisco, to illustrate the exemplary programmes put in place to delight our guests.
The finest fish and seafood are much demanded delicacies in our restaurants around the world. Mandarin Oriental is wellaware of the challenging task of protecting our natural marine and lake ecosystems. A number of restaurants have therefore
taken the initiative to give their guests the choice to eat fish and seafood declared to be from sustainable sources.
Sourcing responsibly also means caring for the contents of our beauty and therapeutic products used in our signature spa
line. Our spas promote refined, holistic practices for the well-being of our guests. Developed in consultation with specialists
in Traditional Chinese Medicine (TCM) and master aromatherapists, Mandarin Oriental has developed spa products withnatural ingredients, which are environmentally friendly and organic.

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d e l i v e r i n g e xc e l l e n c e

Mandarin Oriental, Singapore

From Singapore to San Francisco: From Farm to Table
Due to the unique geographic location of Singapore, it can be challenging for hotels and restaurants to source sustainable
food products. At the beginning of 2011, the culinary team of Mandarin Oriental, Singapore, under the helm of Executive
Chef Marco Pedrelli, began their search for local and sustainable purveyors. The culinary team’s quest for suitable suppliers oftrue Singaporean produce triggered an odyssey around the entire island. Fortunately, several quality producers were found.
In August 2011, new dishes were introduced to the hotel menus using chicken and eggs from one of the few local poultry
farms. At the same time, fish from local waters were integrated into various dishes on the menus. Chef Pedrelli also made aneffort in sourcing local flour and cereal products and introduced new pastry and breakfast dishes using those ingredients.
Mandarin Oriental, San Francisco, under the direction of General Manager Cliff Atkinson, has implemented a strict
programme of sustainable sourcing. With the support of new Executive Chef Adam Mali, the hotel is leveraging strong
relationships with local growers to source most of the produce, dairy, meats and seafood that are used in the restaurant. For
example, Chef Mali uses cheese from a local dairy that has implemented sustainable manufacturing methods (such as reuse ofwater for irrigation) as well as sustainable ranching techniques. Per Chef Mali, “The key is to form relationships with farmers
and develop an appreciation for their methods, then respect those methods as we cook”.

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d e l i v e r i n g e xc e l l e n c e

Seafood and Fish Watch Programmes at Mandarin Oriental
Our oceans are increasingly affected by human activities—primarily the ways we catch and farm seafood. Several of ourhotels have made a commitment to source only sustainable seafood, using fish caught in the proper seasons or harvested bysustainable methods, such as line fishing.
In 2008, The Landmark Mandarin Oriental, Hong Kong made an agreement with WWF not to feature bluefin tuna.
Currently, all seafood is sourced through suppliers delivering seafood harvested using sustainable techniques. In addition,
The Landmark respects a sustainable fishing calendar whereby it purchases fish when they are not carrying eggs.
The Landmark has removed certain species that are particularly vulnerable to overfishing and has subscribed to theMarine Stewardship Council recommendations found at www.msc.org.
In 2011, Mandarin Oriental, San Francisco became a certified member of the Seafood Watch programme and first in the
San Francisco Bay Area to adopt the Safe Harbour programme for all the seafood ordered in the hotel. The hotel cooks with
only the most sustainable and “safe” seafood for its guests, not only for the health benefits, but to protect endangered or
overfished varieties. Recently, to reinforce their sustainability commitment, all kitchen staff attended a training day at a local
seafood company to learn about sustainable harvesting practices.
In February 2012, Mandarin Oriental Hotel Group also took the initiative to remove shark’s fin from all of our restaurant andbanqueting menus worldwide.

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Spa Products: Caring for the Contents
Sustainability is a key feature in the thought process behind our spa 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 our properties, allowing sea freight options and bulk storage. The ingredients in our spa
products have the following beneficial attributes:• All oils, fragrances and essences contain 100% natural ingredients• Regenerative damask rose water is used instead of plain water• 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• Support fair trade-certified ingredients23m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

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d e l i v e r i n g e xc e l l e n c e

MANDARIN ORIEN TAL , T OKYO

c a se st u dy

INAUGURAL GOLDEN FANAWARD for excellencein SUSTAINABILITY
The Golden Fan Award for Excellence in
Sustainability is a newly created award tocelebrate the sustainability achievements
for the Mandarin Oriental hotel thathas exhibited exemplary dedication tosustainability. The award will be presented
biennially to the hotel that has mostsuccessfully fulfilled the following criteria:• Demonstrated results in the improvementof the hotel’s environmental performance• Exemplary and continued involvement inlocal community activities• Remarkable engagement of colleagues
to demonstrate corporate responsibility
initiatives
Mandarin Oriental, Tokyo was chosen as the inaugural recipient of the Golden Fan Award for Excellence in
Sustainability. In 2010, the hotel initiated a number of activities to reduce its environmental impact, leading to
the highest energy reduction in the Group at 20% and a reduction in water consumption of 7%. The property,
which is part of a large mixed-use complex, the Nihonbashi Mitsui Tower, was opened in 2005 and also includes
the historical Mitsui Main Building, originally completed in 1912. The property developer, The Mitsui FudosanGroup, has well-established environmental policies, which helped the property gain inclusion into the top 30
Low Emission Buildings as designated by the Tokyo Metropolitan Government. This is an excellent example of
how our hotels can work together with property owners to reduce their environmental footprint.
Mandarin Oriental, Tokyo was also recognised for the participation of 323 colleagues in a total of
13 community events and activities:• Mandarin Oriental, Tokyo is participating in the cooperative project Umi-no-Mori (The Sea Forest)—
to create an 88 hectare forest in the Inner Central Breakwater Reclamation Area in Tokyo Bay. The
Sea Forest was created from recycled/composted soils and seedlings nurtured by schoolchildren andwill ultimately provide a passage for ocean breezes into the Tokyo city centre, improving air quality. The
project, which started in 2007, is scheduled for completion in 2016.
• Mandarin Oriental, Tokyo is proud to participate in the Nihonbashi Bridge Preservation Group, which
is dedicated to maintaining the Renaissance-style, double-arched granite bridge. Mandarin Oriental
colleagues participated in the annual large-scale cleaning of the bridge on 31st July, as well as in five riverclean-up sessions.
• On 4th August 2011, Mandarin Oriental colleagues participated in the Nihonbashi Uchimizu, a traditional
practice of sprinkling water (typically rainwater or greywater) onto the ground to reduce dust, cool theimmediate surrounding area and encourage interaction with the local community. During the Uchimizu, thestreet temperature was reduced by some 1.5 degrees C/2.7 degrees F.
• The Mandarin Oriental, Tokyo Corporate Responsibility Team hosted an internal art contest among
various departments encouraging creative reuse of perceived waste materials. The contest attracted ahigh level of participation, resulting in submissions from twelve different departments and votes fromroughly one quarter of all colleagues over a two-day judging period.

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Mandarin Oriental, Tokyo

25

section name26

M ANDARIN ORIENTAL H OTEL G ROU P s u s ta i n a b i l i t y r e p o r t 2 011“As an industry, it isimportant to be aware of
our environmental footprint.
It is easy to introduce
energy-efficiency mechanisms,
and it makes economic sense.”			—Edouard Ettedgui			Group Chief Executive					 Mandarin Oriental Hotel Groupsection nameMandarin Oriental, Paris

advan ci ng su sta i n a b il itym a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

28

a dva n c i n g s u s ta i n a b i l i t yadvancing sustainability
There are significant environmental challenges facing our world today:• G lobal climate change caused by increasing concentrations of greenhouse gas emissions due to our dependence
on energy from fossil fuel is 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 a major environmental impact in most parts of the world.
We also recognise these challenges create extraordinary opportunities for our colleagues, as delivering the services andquality associated with our brand is resource 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 our carbon emissions.
As a Group, we recognise the risks arising from climate change as well as new regulatory initiatives. Financial implications
include the levy of carbon taxes on non-renewable energy sources, which can result in price increases on electricity, gas andfuel. We are also exposed to indirect effects of carbon taxes raised on aviation, as they are currently being introduced in theEuropean Union. An overall price increase can lead to reduced travel frequency for business and tourism. Changing climate
patterns can also cause increased natural disasters which can affect our infrastructure and the livelihood of our colleagues.
We believe that luxury and sustainability can go hand in hand through strategic planning, innovation, and taking a systematic
approach to managing the environmental impact of our operations whilst maintaining operating standards and indoor
environmental quality.

Our Colleagues’ Contribution
Just as much as technology, the dedication of our colleagues in all locations and across all functions is critical to our success.
Our colleagues make sure that supporting systems and technology operate under ideal conditions, and they are in thebest position to identify opportunities for improvement and to suggest and implement solutions. The environmental
achievements included in this report would not have been possible without their support.

Our Key Achievements
Since 2007, we have collected data from our operating hotels related to consumption of water, electricity, gas, fuel and otherenergy sources supplied to the hotel. At the beginning of our journey, we established the following environmental goals forthe period 2007–2012, and we now report the progress towards our goals.
• Reduce energy intensity by 10% (as MJ/m2)• Reduce greenhouse gas emission intensity by 10% (as kg CO2 equivalent/m2)• Reduce water intensity by 10% (as litres/guest night)
Short-term goals support our long-term strategy and we will announce new short-term goals in early 2013. Additional detailsof our progress can be found under the individual sections of energy, emission, water and waste.

Progress is well underway, and we arecommitted to our long-termgoals and vision for 2020 and beyond.

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a dva n c i n g s u s ta i n a b i l i t y

R e d u c e d E n e rg y I n t e n s i t y, 2 0 0 7 – 2 011 ( p e r c e n t )
2007

2008

2009

2010

2011

2012

0

E n e rg y I n t e n s i t yOverall good performanceacross the portfolio.

-2%
-3.2%

-4%

The slight decline in reductionsin 2011 was due to higher than
expected energy intensity at
the new Mandarin Oriental,
Macau. A detailed action plan iscurrently being implemented to
improve this performance.

-6%
-8%
-10%
-11.1%-11.3%-12%-13.6%-14%■ ACTUAL REDUCTION 2007–2011

TARGET REDUCTION OF 10% 2007–2012

R e d u c e d g r e e n h o u s e g a s e m i s s i o n i n t e n s i t y, 2 0 0 7 – 2 011 ( p e r c e n t )
2007

2008

2009

2010

2011

2012

0

Emission Intensit yMore progress to be made.
-2%

-1.7%

-4%
-5.0%
-6%
-6.8%

-6.9%

-8%

-10%

■ ACTUAL REDUCTION 2007–2011

TARGET REDUCTION OF 10% 2007–2012

The higher than expectedenergy intensity at our new
property in Macau also
negatively impacted theemission intensity performanceof the Group. If we exclude
this new property, the overall
reduction in emission intensity
was 8.6%. This highlights theimportance of energy efficiency
in all our properties, especiallyin locations with high electricalemission factors.

R e d u c e d Wat e r I n t e n s i t y, 2 0 0 7 – 2 011 ( p e r c e n t )
2007

2008

2009

2010

2011

2012

0

Wat e r I n t e n s i t yOverall good performanceacross the portfolio.

-2%
-3.8%

-3.7%

The reductions in 2011were slightly less than 2010.
We are confident that the
five-year reduction target
for 2012 will be achieved.

-4%
-6%
-8%
-10%
-12.2%-12%-13.0%-14%■ ACTUAL REDUCTION 2007–2011

TARGET REDUCTION OF 10% 2007–201229

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a dva n c i n g s u s ta i n a b i l i t y

Mandarin Oriental, Barcelona

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Tracking Our Performance
Operating luxury hotels requires attention to detail. With well-established processes, our colleagues have the freedom totake personal initiative. We have adapted the same approach to sustainability and believe that transparency in the way wemeasure our performance is key. To understand more about the methodology used to calculate our reductions, please refer
to notes included at the end of this section.
This section highlights our efforts to advance the environmental dimension of sustainability. All locations and activities inside
our hotels, including guestrooms, restaurants and spas, as well as gardens and pools, are included within the boundary of ourenvironmental reporting. This report covers 25 of the Group’s hotels that were fully operational in 2011. We have excluded
Mandarin Oriental, Paris and Mandarin Oriental Riviera Maya, Mexico as neither was fully operational in 2011. Mandarin
Oriental, Las Vegas is excluded for water, energy and emissions reporting, as the majority of the energy consumption is partof a major mixed-use facility and we are currently unable to extract the data relevant to the hotel.

SU PPLI ER
TRANSPORTI ON

SH O P S
AND
T EN A N T S

RESI D ENC ES
CO M PA N YOW N ED
V EH I CLESRESTAU RANTS

B ANQU ETAND
C ONF ERENC E
FAC I LI TI ES

POOLG U ESTROOMSC O R P O R AT E
GI F T S

ON-SI TEC OLLEAG U E
HOU SI NG

I N T ER N AL
LAUN D RY
FACI LI T I ES

EX TERNALLAU ND RY
FAC I LI TI ES

G ARD ENAND
I RRI G ATI ON

B USI N ESS
T R AV ELGUEST
T R A N SP O RTAT I O NC OLLEAG U E
TRANSPORTATI ON

OF F -SI TE
C OLLEAG U E
HOU SI NG

s c o p e o f e n v i ro n m e n ta l r e p o rt i n g

We are well aware of emissions arising from energy consuming activities that are related to our operations
but that occur outside the boundaries of our hotels. In our efforts to gradually expand our reporting, we areplanning to further disclose emissions related to company-owned vehicles, external laundries, guest and colleague
transportation, as well as business-related air travel in the future. It is imperative to include emissions related to allareas of our operation that we directly influence.

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a dva n c i n g s u s ta i n a b i l i t y

USING ENERGY EFFICIENTLY
According to the World Business Council on Sustainable Development, buildings account for close to 40% of the energy usedworldwidei. The use of non-renewable energy in our hotels contributes to climate change but also to the dependency on fossil fuels.
Our hotels are located in three different climate zones: Tropical (36%), Mediterranean (32%) and Temperate (32%). The
continuous control of temperature, humidity and indoor air quality requires the use of sophisticated air conditioning systems.
Ventilation, cooling and heating, as well as lighting of indoor and outdoor spaces, are the largest contributors to our absolute energy
consumption. Energy represents a significant portion of our operating expenses and in some hotels exceeds 10% of revenue.

Absolute Energy Consumption
Our Group reduced energy consumption by 136 TJ in 2011 by implementing energy efficiency measuresiii. The total reduced
consumption 2007 to 2011 was 399 TJ, which translates to cost savings of US$13.2 million.
a b s o l u t e e n e rg y c o n s u m p t i o n , 2 0 0 7 – 2 011 ( T J / y e a r )
1,600
1,400
1,200

1,247

1,208

1,209

1,235

2007

2008

2009

2010

1,296

1,000
800
600
400
200
0
2011

■ ABSOLUTE ENERGY CONSUMPTION■ REDUCED ENERGY CONSUMPTIONElectricity is our main source of purchased energy and makes up 61% of our energy supply. Purchased energy further
includes steam and heated and chilled water. Our direct energy consumption due to use of fuel from sources that are locatedwithin the facilities, such as natural gas, fuel oil and propane, account for 32%.

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Energy Intensity
Energy use and greenhouse gas emissions per area of our properties are the key performance indicators that we use tomeasure our performance over time. These indicators allow us to take into consideration the growth of the company.
In 2011, energy intensity for the Group increased slightly by 2.6% to 1,620 MJ/m2 /year and as earlier mentioned, this was dueto the higher than expected energy intenstity at one of our new properties, Mandarin Oriental, Macau. The period 2007
to 2010 has shown a steady decrease in the relative energy use, which reflects the systematic approach we are taking inmanaging our energy consumption. Projects identified through professional, third-party energy audits provide for the large
majority of opportunities.
E n e rg y I n t e n s i t y, 2 0 0 7 – 2 011 ( M J / m 2 / y e a r )
2,000
1,800
1,600

1,827

1,769

1,400

1,623

1,579

1,620

2009

2010

2011

1,200
1,000
800
600
400
200
0
2007

2008

The Group’s reduced energy consumption from2007 to 2011 resulted in cost savings of US$13.2 million.

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a dva n c i n g s u s ta i n a b i l i t y

MITIGATING OURIMPACT ON THE CLIMATE
Greenhouse gas emissions generated by the burning of fossil fuels are at the root of climate change. For Mandarin Oriental,
greenhouse gas emissions are directly related to our electricity consumption, as well as to the burning of natural gas and fuel oil.
Our reduction of greenhouse gas emissions to date, especially carbon dioxide (CO2), has mainly been a consequence ofimproved energy efficiency. We remain firm in our commitment to reduce our greenhouse gas emissions. Mandarin Oriental
subscribes to the World Travel and Tourism Council (WTTC) goal of reducing total CO2 emissions by no less than 50%
from 2005 levels by 2035, with an interim target of 30% by 2020 if there is an international agreement on global emissions
reduction, or 25% by 2020 in the absence of such an agreement.

Managing our Footprint
Greenhouse gas emissions vary widely across our hotels and are primarily dependent on the emission factors of the utility
providers. For example, greenhouse gas emissions at Mandarin Oriental, Geneva are low, as a large majority of the electricity
is generated by hydropower, whilst greenhouse gas emissions at The Excelsior, Hong Kong are four times higher than in
Geneva, mainly due to the fact that electricity in Hong Kong is generated by burning fossil fuel. This is despite the fact thatthe energy consumption per square metre at the two properties is very similar. This is an important aspect to keep in mind
when reviewing our emissions strategy and when evaluating the impact new hotels will have on our overall footprint.

Absolute Emissions
In 2011, the absolute emissions generated by the Group amounted to 170,000 metric tons of CO2 equivalentsiv.
As shown in the graph below, between 2007 and 2011, we reduced emission by 46,000 metric tons of CO2 equivalents byimplementing energy efficiency measures. This reduction in emissions is equal to taking 9,006 passenger vehicles off the roadv.

A b s o l u t e G r e e n h o u s e G a s E m i s s i o n s , 2 0 0 7 – 2 011 ( t h o u s a n d t CO 2 - E / y e a r )
210

180

150

Thousands

34

163
153

150

154

2007

2008

2009

170

120

90

60

30

Our
reductionin emissions
is equal totaking 9,006
passenger
vehicles off
the road.

0
2010

2011

■ ABSOLUTE GREENHOUSE GAS EMISSIONS■ REDUCED GREENHOUSE GAS EMISSIONSThe primary source of our emissions in 2011, purchased electricityvi , accounted for 79% of total greenhouse gas emissions.
Our emissions from the consumption of natural gas, diesel and propane, accounted for 14% of our total emissionsvii .
Additionally, individual hotel purchases of steam, hot waterviii , or chilled water ix for cooling, from centralised sources
accounted for the remaining 7% of total emissions x .

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

a dva n c i n g s u s ta i n a b i l i t y

g r e e n h o u s e g a s e m i s s i o n s by t y p e , 2 011 ( p e r c e n t )NATURAL GAS 8%

DIESEL 5%
HEATED WATER / STEAM 2%
CHILLED WATER 5%
PROPANE 1%

ELECTRICITY 79%

To further reduce our carbon footprint, we will continue our strategy of improving energy efficiency as well as gradually
introducing renewable energy sources and cleaner energy alternatives. We will minimise remaining fuel oil used for boilers
and heaters by replacing it with suitable alternatives, such as heat pumps and renewable energy where possible, or else
natural gas. Where financially viable, gas used for cooking is to be gradually replaced by electricity.

Emission Intensity
In 2011, the Group’s emissions were equivalent to 212 kg CO2 equivalents per square metre, which represents an increase of
2.1% as compared to 2010. Between 2007 and 2011, we have managed to reduce our emission intensity by 5.0%, and we areconfident that we can regain the downward trend in the coming years.

Natural Gas
DieselChilled Water G r e e n h oPropaneu s e G a s E m i s s i o n I n t e n s i t y, 2 0 0 7 – 2 011 ( kg CO - E / m / y e a r )
2

2

250

200

224

220
208

208

212

2009

2010

2011

150

100

50

0
2007

2008

Including Fugitive Emissions
We have commenced the process of systematically collecting data on the refrigerants used in cooling systems. Fugitive
emissions in 2011 were 2,323 tons of CO2 xi , which is equivalent to 1.3% of the total greenhouse gas emissions. Guidelines
related to management of refrigerants have been included under our Safe & Sound programme in order to provide a global
approach to the subject, and we therefore expect fugitive emissions to decline over the coming years.

35m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

36

a dva n c i n g s u s ta i n a b i l i t y

m a n d a r i n o r i e n ta l , p a r i s

c a se st u dy

APPLYING HIGHENVIRONMENTAL STANDARDSFROM DESIGN THROUGHRENOVATION, OPERATION
AND MAINTENANCE
During the summer of 2011, the Group added a new property to its global portfolio in the historic centre of
Paris. Located on fashionable rue Saint-Honoré, this 138-room luxury hotel offers the ultimate in service anddesign, with a strong sense of place and a style and personality of its own.
Because the performance of a building is largely defined by the way it was conceived, the High Environmental
Quality (HQE) approach was adopted before Mandarin Oriental began operations. Société Foncière
Lyonnaise, the developer, was awarded the HQE certification for the design and renovation phase, whilstemphasising the cultural heritage inherent to the historic building.
• Although the hotel was nearly totally reconstructed, the façade was kept intact and parts of the rooftop
preserved with copper, a high-end, durable and 100% recyclable metal. In its original colour, it will follow
a natural transformation process to finally reach the metal’s distinctive green colour. The decision toleave out a pre-treatment in an acidic solution was made to avoid an environmental impact.
• The rehabilitation of the site generated some 10,000 cubic metres of waste, including steel, aluminium,
wood, glass and rubble. With a thorough on-site separation programme, nearly 80% of all the produced
waste was recycled, which by far exceeded the targeted 40%.
• Every day, some ten trucks arrived on-site to deliver steel, concrete and prefabricated elements forthe façade, stairs and external woodwork. With the constant presence of “traffic controllers” for theplanning and handling of deliveries, the site operators ensured an undisturbed movement of pedestrians
and cars. This measure helped improve traffic fluidity by 15%.
• Energy modelling was used to predict the energy profile of the property. The in-room control system
was adapted following the initial assessment, lowering the predicted energy intensity by 22%.
Inspired by this initial success, Mandarin Oriental followed in the footsteps of the developer in setting
goals for the operational phase, aiming to provide highest comfort to guests while mitigating the hotel’senvironmental impact. As proof of its pioneering efforts, Mandarin Oriental, Paris became the first hotel toreceive the HQE certification for the operational phase of a commercial building.
The hotel defined stringent criteria for its environmental design and management, as well as for providing thehighest sensory comfort to guests.
• In a city where narrow streets can echo voices and traffic noises, the hotel’s facilities are equipped toprovide exemplary noise reduction. The service schedule for cleaning, maintenance and waste collection
has been adapted to minimise guest disruption.
• The building was designed to be ideally embedded in its environment by creating green areas and bylimiting the number of on-site parking spaces. The hotel provides valet parking service and there isconvenient access to public transportation within walking distance.
• Recycling in guestrooms, kitchens and offices is carried out for cardboard, glass, plastic, cans and organic
waste. Despite high real estate prices in the centre of Paris, the waste collection points have been
designed to allow for easy access and handling.
• Consumption of water, electricity, heating and cooling is monitored continuously to detect consumption
peaks. Performance indicators are discussed in weekly meetings and issues are addressed.
Maintaining high performance standards is a continuous effort that the newly appointed Corporate
Responsibility Committee will assume to track progress and generate new ideas and initiatives.

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Mandarin Oriental, Paris37

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38

a dva n c i n g s u s ta i n a b i l i t yenergy efficiency &emission reduction highlights
The conversion of Grand
Lapa, Macau’s hotel signage
to LED was completed at
the end of 2009, saving 88%
in energy compared to neonlight signage.

Mandarin Oriental, Las Vegas,
a Leed Gold-certified building,utilises highly-insulated spandrel
panels. The flat surface of the
spandrel panels used in thebuilding’s construction reduces
solar heat gain and the energy
needed to cool or heat thebuilding. This system within the
structure’s façade accounts foras much as 9% of the building’s
total energy savings.

In The Landmark Mandarin
Oriental, Hong Kong, variable
speed controllers were
installed to major plants in
2011, including space heatwater pumps, boiler water
pumps, kitchen exhaust air fan
and the kitchen primary air
handling unit. The property
anticipates 200,000kwh ofelectricity reduction savings
annually.

In 2011, Mandarin Oriental,
Boston partnered with thelocal utility N-Star on anenergy reduction project,installing VFDs controlled
by temperature, and smoke
monitors for kitchen hoods inthe commercial kitchens. The
project was completed at a
total cost of US$54,000 andthe utility provided 50% as anincentive to go forward with
the installation. The anticipatedenergy reduction is 135,000
kWhs per year.

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39m a n d a r i n o r i e n ta l , h o n g k o n g

Improving energy efficiency is at the core of Mandarin Oriental’s efforts to reduce its environmental footprint,
whether for new or existing hotels, owned or under management. Motivated by a feasibility study, newwater-cooled chillers for the air conditioning system were installed in 2011 at Mandarin Oriental, Hong Kong.
The project comprised the replacement of inefficient air-cooled chillers with high-efficiency water-cooled
chillers, cooling towers and associated pipework and circulation pumps. The new chillers are themost energy-efficient available on the market, utilising a low-pressure refrigerant that allows lower motor
compression costs and greatly reduces the chances of refrigerant leakage to the atmosphere.
During the testing period, the energy efficiency of the new system was improved by 50% following thebasic setting of optimal parameters. This demonstrates the importance of ensuring that all the components
and control systems work together to optimise the system and achieve the highest cost savings. Mandarin
Oriental, Hong Kong achieved an overall energy reduction of 18% in 2011 in only six months, with electricity
savings of 20%. This efficiency is higher than the initial estimate of the feasibility study.
This is the third major chiller optimisation project in Asia over the past three years; The Excelsior, Hong
Kong and Mandarin Oriental, Jakarta were completed earlier with similar performance results. Additional
projects are planned for other operating hotels and to be able to replicate the success at new properties,
Mandarin Oriental is updating their Product Standards and Guidelines to specify minimum chiller efficiencies
and provide clearer guidance on refrigerant selection.

Mandarin Oriental, Hong Kongc a se st u dy

ENERGY SAVINGSBEHIND THE SCENES

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m a n d a r i n o r i e n ta l , b a n g k o kc as e s tu d y

A HIGH COMFORT, LOW
IMPACT GUEST EXPERIENCE
In 1999, Mandarin Oriental, Bangkok first recognised the need to add an integrated control system in its
guestrooms with the fundamental concept of reducing energy consumption, in terms of air conditioning
and lighting, based on rented status and occupancy. Working closely with Inncom International, it was soonrecognised that the system could offer additional advantages and enhance the guest experience.
Because of its success, the system is currently installed in 5,370 or 70% of the Group’s guestrooms andforms part of the standard requirements for any new development.
The occupancy detection, initially provided with the sole purpose of controlling temperature setbacks
when the room was not occupied, is used to allow servicing of guestrooms whilst the guest is away. Other
features such as centrally controlled “do not disturb” and “make up room” alerts improve operational
efficiency and further enhance service delivery.
Over the years, the system has evolved to include information on preferred guest temperatures throughan interface with the property management system. It also monitors door lock condition, alerts onguestroom safe status for potentially forgotten items after check-out and offers an interface with thelighting system to provide tailor-made lighting scenes. As all guestrooms can be centrally monitored,
the performance of each individual air conditioning system can be managed closely, identifying potential
defects before the guest is inconvenienced.
A detailed performance analysis of the system at seven hotels in Asia and two hotels in the United States
was conducted for the period 2010 and 2011. Over the two years, the system achieved an average energy
reduction of 43% compared to stand-alone control systems. This equals an average energy reduction
worth US$1.3 million and an average annual emissions reduction of 2,295 metric tons of carbon dioxide,
which is roughly equivalent to taking 450 passenger vehicles off the road.

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

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Mandarin Oriental, Bangkok

41

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

a dva n c i n g s u s ta i n a b i l i t y

MANAGING OUR WATER FOOTPRINT
According to the United Nations Environmental Program, 40% of the world will live in water scarce regions by 2025 xii .
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 needed, par ticularly in regionswith current and future freshwater shor tages.
Benefits arising from an efficient use of water include the reduction of wastewater and its costly treatment, as well as energy
savings on the reduced use of hot water. A growing number of hotels are now testing and implementing new water-saving
technology in the water-intense operations of our spas, laundries, kitchens and air conditioning support systems, such as
cooling towers. Our focus will remain on reducing water consumption in non-guest areas.

Monitoring Water Scarcity
Given the growing global water challenge, Mandarin Oriental is working internally to continuously improve our operations, andexternally to understand local water conditions where we operate. Our company understands the importance of water to ourbusiness, human health and the economic viability of the communities where we operate. We are therefore taking steps toenhance the monitoring and management of our water use and identify hotels that are located in water-stressed areas.
As of 2011, all Mandarin Oriental hotels obtain water from municipal or city water supplies with the exception of
two properties, which partially rely on ground and surface water. From an initial assessment, we have identified thatapproximately one-third of our hotels currently in operation or in construction are located in potentially water-stressed
areas. Our initial water stress assessment leveraged leading water availability tools, WBCSD Global Water Tool and the
WRI Aqueduct Tool, and a third-party subject matter expert.

Absolute Water Consumption
The Group’s absolute water consumption, including irrigation, cooling towers and swimming pools in 2011 was
2,599,000 cubic metres xiii . Since 2007, the water consumption has decreased by 8.5%, whilst our total number of guest
nights xiv increased by 4.3% for the same period.

A b s o l u t e Wat e r C o n s u m p t i o n , 2 0 0 7 – 2 011 ( t h o u s a n d m 3 / y e a r )THOUSANDS

42

3,000
2,839
2,500

2,482
2,255

2,359

2,599

2,000

1,500

1,000

500

0

2007

2008

2009

2010

2011

■ ABSOLUTE WATER CONSUMPTION■ REDUCED WATER CONSUMPTION

Between 2007 and 2011, our Group reduced water consumption by 1,115,000 cubic metres, which is equivalent to theamount of water needed to fill 446 Olympic-size swimming pools xv.

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

a dva n c i n g s u s ta i n a b i l i t y

Water Intensity
Water consumption per guest night is the key indicator that we use to measure our performance over time, as it takes into
consideration the growth of the company. In 2011, the Group’s average water use was 1,007 litres per guest night and stayed
comparable to 2010 with an overall reduction of 12.2% over 2007 levels.
Wat e r I n t e n s i t y, 2 0 0 7 – 2 011 ( l i t r e s / g u e s t n i g h t )
1,200
1,147
1,000

1,103

1,105
998

1,007

2010

2011

800

600

400

200

0

2007

2008

2009

Between 2007 and 2011, our Group reduced water
consumption by 1,115,000 cubic metres, which is equivalent to theamount of water needed to fill 446 Olympic-size swimming pools.

43m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

44

a dva n c i n g s u s ta i n a b i l i t yelbow b e ach , b erm u dac a se st u dy

collecting rainwaterfor guestroom cottages
Situated in the mid-Atlantic off the East Coast of the United States, Bermuda has a subtropical and humid
climate favourable to rainwater collection. The island’s only source of freshwater is rainfall, which is collectedon roofs and catchments and stored in underground tanks and lenses.
Since June 2011, all guestroom cottages at Elbow Beach have been switched to using collected rainwater,which is treated before being pumped to taps and showers. Collected rainwater replaces the use of treatedseawater from the public utility.
Water tanks are located under each block of twelve cottages and have a storage capacity of 75 to 200 cubic
metres (19,800 to 52,800 gallons). A water treatment unit equipped with filters and UV-light assures a highwater quality. Because rainfall is evenly spread over the year, the tanks can be kept small, and are sized tohold a six to eight week supply.
In 2011, rainwater collection reduced water consumption from the public utility by 18%. The total volume ofwater saved was 9,952 cubic metres (2,629,000 US gallons) worth US$47,470. Although requiring a significant
initial investment, the new system provides immediate water and energy savings for the island, as desalination
is an energy intensive process.
Because water demand strongly increases during peak tourist season and sources of fresh water are limited,
all new constructions are required to include rainwater harvesting. In Bermuda, where water is scarce,
rainwater collection is traditionally anchored in the island’s way of life.

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Elbow Beach, Bermuda

45

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46

a dva n c i n g s u s ta i n a b i l i t y

FIRST STEPS IN WASTE REDUCTION
Waste management is an area where we have many opportunities. Most of the solid waste in our hotels is generated by
activities like food preparation, consumption of pre-packaged items, guest waste and housekeeping.
Thus far, efforts to increase recycling and reuse have been primarily driven by individual hotels. We recognise that
improvements to our Group guidelines are required in order to provide a consistent approach, enabling us to bettermeasure our performance. Our objective for 2012 is to develop a complete, accurate, consistent and timely measurement
process of our waste and emissions due to waste generation. Under the strategy “think global, act local”, we are emphasising
practical and realistic solutions that work for our colleagues and the available waste collection, treatment and disposal
methods in each location.

Formalising our Efforts
To enhance our reporting, we have taken initial steps to collect data related to our waste generation, recycling and disposal
methods. We acknowledge that there are challenges in collecting complete and consistent data from all hotels, as waste
handling and disposal are specific to each location. We therefore include the following information as an indication on thecurrent status based on feedback from 17 out of 25 hotels xvi with data collected through internal reports as well as waste
disposal bills.
The absolute waste generated in 2011 was 11,058 tons, of which 72% was disposed of in landfills, 22% was recycled orcomposted and 6% sent to incinerators.
Wa s t e by D i s p o s a l M e t h o d , 2 011 ( p e r c e n t )WASTE SENT TO LANDFILL 72%

WASTE SENT TO COMPOSTING SITE 2%

WASTE SENT TO MUNICIPAL INCINERATOR 6%

OVERALL RECYCLING 20%

We are beginning a Group-wide focus to increase the amount of recycled and reused waste. The key going forward willbe the development of waste reporting guidelines and audits as part of our Safe & Sound programme, with the objectiveof deploying systems and processes. Measuring our performance will become the foundation for managing our waste
generation processes. Our initial target is to reduce waste sent to landfills per guest night by 20% by 2020 as compared to2012. This reflects our ambition to commence this process, and we recognise that more specific key performance indicators
are required in the future to minimise our environmental impact.

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a dva n c i n g s u s ta i n a b i l i t ywaste minimisation highlights
Composting for Mandarin
Oriental, New York started
in the second half of 2011
and continues today. The
programme worked so wellthat another stakeholder in
the Time Warner Center,
Whole Foods, has now joined
Mandarin Oriental, New Yorkin the programme.

At Mandarin Oriental,
Kuala Lumpur, biodegradable
chemicals were implemented
in the hotel’s laundry facilities
in the second quarter of 2011,
replacing non-biodegradeablechemicals.

At Mandarin Oriental,
Kuala Lumpur, biodegradable
chemicals were implemented
in the hotel’s laundry facilities
in the second quarter of 2011,
replacing non-biodegradeablechemicals.

Mandarin Oriental, Singapore
began using microfibre cloths
for housekeeping, along withbiodegradeable cleaning
supplies and non-woven
newspaper and shopping bags
instead of paper bags.

In 2011, The Landmark
Mandarin Oriental, Hong
Kong began working
closely with a local recycling
contractor. An estimated
5,200 kg of biodiesel was
produced from 6,500 litres of
cooking oil.

47

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a dva n c i n g s u s ta i n a b i l i t y

m a n d a r i n o r i e n ta l H y d e p a r k , l o n d o n

CENTRAL WASTE STRATEGY
c a se st u dy

Mandarin Oriental Hyde Park, London had a waste problem: wet waste and dry waste were too often
commingled, reducing the amount of recycling that could occur. The hotel and The Residences each had
separate waste handling areas—an inefficient situation.
After much consultation with Westminster City Council, the development team of One Hyde Park and
The Residences at Mandarin Oriental, London designated one large waste processing area controlled by thehotel. This enabled a single process for collecting all waste, separating recyclable materials and transporting
waste and recyclables quickly off-site. Recycling areas have been designated for traditional materials, such as
used oils, glass, paper and cardboard, plastic and cans. Non-recoverable wastes are compacted.
In addition, the hotel changed the process for handling the large amount of non-recyclable food waste being
produced, introducing macerators at the source. Macerators in the kitchens collect food waste and begin
to break it down into liquid slurry. The liquid slurry is pumped from the kitchens to a tank in the waste
processing area and is transported off-site every few months. The slurry is rich in protein and is often utilised
for animal feed or fertiliser.
Through these efforts, Mandarin Oriental Hyde Park, London has reduced the volume of waste produced,
increased recycling volumes and reduced waste disposal costs.

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Mandarin Oriental Hyde Park, London

49

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a dva n c i n g s u s ta i n a b i l i t y

ENVIRONMENTALPERFORMANCE SUMMARY
PerformanceI n d i c ato r

Unit

20 07

2008

2009

2 010

2 011

E n e rg yAbsolute Energy
Consumption(Actual)GJ

1,246,854

1,207,608

1,209,036

1,234,609

1,295,784

MMBTU

1,181,789

1,144,592

1,145,945

1,170,184

1,228,166

Absolute Energy
Consumption(Baseline)

GJ

1,246,854

1,239,677

1,300,760

1,373,565

1,432,082

MMBTU

1,181,789

1,174,987

1,232,883

1,301,889

1,357,352

MJ/m2

1,827

1,769

1,623

1,579

1,620

MMBTU/ft 2

0.16

0.05

0.70

0.75

0.31

MJ/m

Energy Intensity(Actual)

1,827

1,812

1,762

1,757

1,791

MMBTU/ft 2

0.16

0.05

0.76

0.83

0.35

tons (metric)of CO2-e

152,840

150,398

153,838

162,752

169,905

tons (US)of CO2-e

76,42075,19976,91981,376

84,953

tons (metric)of CO2-e

152,840

152,950

164,714

175,778

189,381tons (US) of
CO2-e

76,42076,47582,357

87,88994,691

Emission Intensity(Actual)kg CO2-e/m2

224

220

208

208

212

lb CO2-e/ft

2

1,092

1,074

1,018

1,016

1,037

Emission Intensity(Baseline)

kg CO2-e/m2

224

224

223

225

237

lb CO2-e/ft 2

1,092

1,092

1,089

1,098

1,156

m3

2,838,570

2,482,121

2,254,775

2,358,636

2,598,599

gallons (US)749,952,444

655,778,436

595,713,289

623,153,501

686,551,915

m3

2,838,570

2,749,533

2,632,810

2,651,346

2,775,535

EnergyIntensity (Baseline)

2

EmissionsAbsolute
Emissions(Actual)Absolute
Emissions(Baseline)

Wat e rAbsolute Water
Consumption(Actual)Absolute Water
Consumption(Baseline)
Water Intensity

gallons (US)749,952,444

726,428,798

695,590,489

700,487,715

733,298,547

litres/guest night

1,147

1,103

1,105

998

1,007

gallons (US)/guest night

303

291

291

263

266

O p e r at i o n a l Data
Total Air
Conditioned Area
Total Guest Nights

m2

683,234

683,988738,280

781,760

799,659ft 2

7,354,260

7,362,376

7,946,775

8,414,784

8,607,452

2,515,601

2,290,443

2,140,056

2,490,061

2,721,495

Mandarin Oriental, Las Vegas is not included in energy and water consumption and greenhouse gas emission figures, due to incomplete data. The majority of the energy
consumption is part of a major mixed-use facility, and we are currently unable to extract the data relevant to the hotel.
Mandarin Oriental Dhara Dhevi, Chiang Mai and Mandarin Oriental, Sanya have been excluded from water consumption data. In general, properties have been excluded if
the data is distorted by major changes or abnormally high values (where, for example, irrigation is included).
Mandarin Oriental, Hong Kong, The Grand Lapa, Macau, and hotels in Manila, Bangkok, Sanya, Macau and Miami are not included in waste figures, due to incomplete data.

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a d v a n c i n g s u s ta i n a b i l i t y n o t e s

A dva n c i n g S u s ta i n a b i l i t y - E n e rg yi	World Business Council on Sustainable Development, Energy Efficiency in Buildings: Business Realities andOpportunities, July 2008.
ii“Conditioned area” is the net area of a hotel that is ventilated, heated and cooled.

iii	Reductions—in energy use, greenhouse gas emissions or water use—are calculated as the difference between theabsolute performance in the current year and a “baseline” value, which assumes that no measures have been taken
to increase efficiency since the reference year 2007. The baseline is corrected for variable factors such as occupancy,
weather or number of meals served, to ensure that data is comparable from year to year. The method we developed
follows the guidelines established by the International Performance Measurement and Verification Protocol (IPMVP).
A dva n c i n g S u s ta i n a b i l i t y - E m i s s i o n siv	CO2 equivalent (CO2-e) is a metric measure used to compare the emissions from various greenhouse gases, based
upon their global warming potential. In the report, CO2 equivalent includes Carbon Dioxide (CO2), Methane (CH4) andNitrous Oxide (N2O).
v	Annual average greenhouse gas emissions per passenger vehicle is 5.10 t CO2-e per year as in www.epa.gov/
cleanenergy/energy-resources/refs.html.
vi	Electricity emission factors for properties outside the US have been obtained from electricity suppliers where available.
If not, we have used factors provided in the Voluntary Reporting of Greenhouse Gases (Appendix F) by the Energy
Information Administration (EIA). Electricity emission factors for US properties have been based on the eGrid of the US
Environmental Protection Agency (EPA).
vii	Emissions from stationary combinations, such as boilers, have been based on the Greenhouse Gas Protocol Cross Section Tools.
viii	Steam or heating purchased from external sources such as district or centralised heating has been converted toemissions using Energy Information Administration, Voluntary Reporting of Greenhouse Gases, Appendix N.
ix	Chilled water purchased from external sources such as district or centralised cooling has been converted to energy
and emissions using the simplified approach for electric-driven compressor and a COP of 4.2 as defined by California
Climate Change Registry.
x	Renewable Energy Certificates (RECs) and fugitive emissions from refrigerants are not included in the emission
calculations.
xi	The information provided is based on 21 out of 25 hotels. Since the data has been collected for the first time in2011, it has not been verified as part of our internal third party audits yet. Fugitive emissions under GRI include HFCs
only. Coefficients to calculate the global warming potential of HFCs were used from the IPPC website: www.ipcc.ch/publications_and_data/ar4/wg1/en/errataserrata-errata.html. Data on compositions of refrigerant blends was extracted
from National Refrigerants, Inc.
A dva n c i n g S u s ta i n a b i l i t y – Wat e rxii

www.unep.org/dewa/vitalwater/article141.html

xiii Hotels in Chiang Mai, Sanya and Las Vegas are not included in water consumption figures.
xiv Guest nights: The sum of all guests staying at the hotel, including complimentary and in-house use, minus no show.
xv	The mandatory minimum dimensions of an Olympic-size swimming pool are 50 metres in length, 25 metres in width and2 metres in depth, which results in a volume of 2500 m3 as in http://en.wikipedia.org/wiki/swimming_pool#cite_note-21.
A dva n c i n g S u s ta i n a b i l i t y - Wa s t exvi	Mandarin Oriental, Hong Kong, The Grand Lapa, Macau and our hotels in Manila, Bangkok, Sanya, Macau and Miami are
not included in waste figures.

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Mandarin Oriental has long recognised
the importance of culture andcommunity to our brand. 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.

section nameMandarin Oriental Dhara Dhevi, Chiang Mai

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CHAMPIONING COMMUNITY
As a leader in luxury hospitality steeped in the values of the Orient, Mandarin Oriental Hotel Group understands theimportance of culture and community to our brand. 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 in supporting and working withthe local communities in which we operate.
Mandarin Oriental Hotel Group champions community in three ways—preserving cultural heritage, participating incommunity education, as well as creating and supporting community programmes. Mandarin Oriental provides more thanphilanthropic support; we encourage colleagues to participate directly, whether through volunteer hours or coordinating
events to support local organisations. Each hotel engages its local community differently, based on the needs of thecommunity. In addition, the Group coordinates broader initiatives in certain regions of the world.
Importantly, Mandarin Oriental makes a significant contribution to developing the local economy by creating employment
and paying salaries and taxes. The majority of colleagues on property are local to the place of operation. In our larger
hotels, such as Mandarin Oriental, Hong Kong, Mandarin Oriental, Kuala Lumpur, and Mandarin Oriental, Bangkok, we hire
up to 800 colleagues from the local community. In our Group, 84% of all full-time colleagues and 71% of all management,
including executive positions, are hired locally.

Each Mandarin Oriental hotel embraces its local
community. Our commitment is evident in three
key areas: cultural heritage preservation, community
education, and support of community programmes.
P ro p o rt i o n o f f u l l-t i m e c o l l e ag u e s a n d s e n i o r m a n ag e m e n t h i r e d lo c a l ly
F u l l-t i m e

E x e c u t i v e a n d M a n ag e m e n t

Number of full-time colleagues hired locally

8,893

1,726

Total number of full-time colleagues

10,5272,425

Percentage of full-time colleagues hired locally

84%

71%

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c h a mp i o n i n g c o mm u n i t y

CULTURAL HERITAGE
At Mandarin Oriental, we recognise the value of preserving cultural and artistic traditions and extending their continued
enjoyment for generations to come. From the selection of each hotel’s unique symbolic fan to our support of arts andartefact preservation, Mandarin Oriental celebrates its oriental roots and embraces the local culture unique to each hotel.

Fans
A classic, elegant and meaningful symbol of oriental culture, the fan is an iconic emblem for Mandarin Oriental’s identity. Our
well-known logo, a trademark registered internationally, is respected as one of the travel industry’s most highly recognised
marks. In addition, every Mandarin Oriental hotel has its own unique fan, which links each property to our company heritage.
An authentic reflection of 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 withlocal artists, historians and graphics experts. Originality also plays a key role in determining the desired fan for each hotel.
For our recent European hotel in Paris, the Group was keen to create a fan that would highlight the culture of haute couture,
the design inspiration for the property. The creation of Mandarin Oriental, Paris’s signature fan (below, right) was entrusted
to the legendary embroidery atelier of Maison Lesage, master of de luxe adornment for the top French fashion houses, suchas Chanel, Dior and Yves St. Laurent.
The luxury of the Lesage fan lies in the choice of precious and original materials, such as velvet, glacé leather, vintage sequins,
pearls and coloured butterflies, and also in the meticulous hand work that gave form to the idea. More than 200 hours went
into the making of this fan, using two types of embroidery: needlepoint and the Luneville technique. Mandarin Oriental,
Paris’s signature fan takes pride of place in the hotel lobby.

Mandarin Oriental, Hong Kong’sfan (above) is an authentic Cantonfan (circa 1870), and is symbolicof fortune and prosperity in the
Chinese spectrum. Due to the social
nature of a hotel as a meeting place,the fan was especially chosen for its“1000” faces theme depicting scenes
from Chinese courts and social life.

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Restoration of The Monastery
Nestled in a peaceful section of the ancient neighbourhood of Malá Strana (Little Quarter) on the left bank, the99-room Mandarin Oriental, Prague occupies a complex that dates back to the 14th century. The hotel’s building, originallya Dominican monastery, was in a state of serious disrepair when the renovations commenced in 2002 for the creation of
Mandarin Oriental, Prague. The building’s conversion restored many of the original architectural features that had been
obliterated by prior adaptations—the complex had even housed a printing press. Archaeological research conducted during
the renovation yielded more than 250,000 individual items of historical significance, some of which are now displayed in the
hotel’s public areas. Additionally, the discovery of the foundations of the 14th-century Church of St Mary Magdalene in theSpa building made this legendary piece of Prague history tangible and publicly accessible. The hotel also hosts public events
that include historical tours of the property, fostering a relationship with the surrounding community.

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c h a mp i o n i n g c o mm u n i t yBringing Hidden Treasures
to Light: Mandarin Oriental
Hotel Group and The Emperor’s
Private Paradise
Mandarin Oriental Hotel Group is proud to havesupported the collaborative efforts of the Peabody Essex
Museum (PEM), the World Monuments Fund and the
Palace Museum, Beijing on the unprecedented 2010–2011 exhibition, The Emperor’s Private Paradise: Treasuresfrom the Forbidden City. This landmark exhibit brought theartistic treasures, never before seen by the public, fromthe private retreat of the celebrated Qianlong Emperor(r. 1736–1796) to American audiences at PEM, The
Metropolitan Museum of Art in New York City and the
Milwaukee Art Museum.
Meticulously restored from the Qianlong Garden complex
deep within the Forbidden City, the 90 objects of
ceremony and leisure—murals, paintings, wall coverings,
furniture, architectural elements, jades and cloisonné—
revealed the contemplative life and refined vision of one ofhistory’s most influential figures.
“We are delighted to have had the generous suppor tof Mandarin Oriental in the presentation of The
Emperor’s Private Paradise”, noted Dan Monroe,
Executive Director and CEO of The Peabody
Essex Museum. “Thanks to the par ticipation of
our sponsor organisations, and the extraordinary
collaboration between PEM, the Palace Museum andWMF, American museum-goers have had an exciting
oppor tunity to see the contents of this Forbidden
City complex, which have never been publicly accessible before”.
As a result of its involvement with PEM and the exhibition, Mandarin Oriental, Boston was also awarded for “Outstanding
Community Service” by the Massachusetts Lodging Association in 2011.
Directly engaged in the issues of cultural preservation and conservation that are so critical to our times, The Emperor’s
Private Paradise drew significant attendance and helped to enhance the public’s understanding and appreciation of the rich,cultural heritage of Asia.

Mandarin Oriental Hotel Group Fellowship for
Cultural Preservation with the Asian Cultural Council
Founded in 1963, the Asian Cultural Council (ACC) is one of the only non-profit organisations to support transformative
cultural exchange by providing grants to exceptional Asian and American artists, scholars, and organisations for creative
work, study, and once-in-a-lifetime opportunities within the United States and Asia. In 2005, Mandarin Oriental Hotel Groupestablished a dedicated fellowship programme with ACC, specifically to award individuals and organisations in their efforts topreserve indigenous arts, cultures, and traditions of Asia.
In 2011, the Mandarin Oriental Fellowship sponsored Khun Sunon Wachirawarakarn, a Khon (Thai Classical Dance) principal
dancer with the Pichet Klunchun Dance Company (PKDC) in Bangkok. With the support of ACC’s Mandarin Oriental
Fellowship, Khun Sunon travelled to the U.S. on a four-month grant to participate in the International Choreographers
Residency Program at the prestigious American Dance Festival in North Carolina and the Bates Dance Festival in Maine.
Mandarin Oriental is proud to support Khun Sunon’s work, thereby increasing international understanding and appreciationof this unique art form while discovering new ways for its relevance to be expressed in Thailand today.

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COMMUNITY EDUCATION
Mandarin Oriental hotels contribute to a number of educational programmes within our local communities, whether by
volunteering, organising events, or making in-kind donations of materials or space. This section highlights several educational
community initiatives from our hotels, including the MINDS partnership at Mandarin Oriental, Singapore—and Mandarin
Oriental, Miami’s “voluntourism” initiatives with Everglades National Park, a designated UNESCO World Heritage Site.

Drive Books, Not Cars
As part of its community initiatives, Mandarin Oriental, Jakarta
supported Drive Books, Not Cars, a city-wide book drive
aimed at raising the profile of two inspiring Jakarta-based
non-profit, volunteer organisations: Sahabat Anak, a groupthat provides educational tutoring to homeless children, andTaman Bacaan Pelangi, an organisation that operates small
libraries for children in the remote villages of Flores, NTT.
Over the course of their book drive, which concluded in early
2012, colleagues donated 123 books, and sold raffle tickets toraise IDR 6,325,000 (US$690) for the cause.
The hotel’s raffle tickets for Drive Books, Not Cars were soldduring its “Fun Bike” charity bike-a-thon event in January 2012,
also supporting “Car-Free Day,” an initiative of the Jakarta
Green and Clean campaign.

Educational Community Programmes
The legendary Mandarin Oriental, Bangkok has been active in its community for decades, often supporting educationalcauses and impoverished communities in rural Thailand. The devastating floods in Thailand in 2011 did not diminish colleague
spirits in helping to provide for others less fortunate; staff from all departments raised money to help build a first aid centre
in the Ban Khok Sabang School in Sa Kaeo Province, bordering the Thai-Cambodian border.

Partnership With Minds(Movement for the Intellectually
Disabled of Singapore)
MINDS is one of the oldest and largest non-governmentalorganisations catering to the needs of the intellectuallydisabled in Singapore since 1962. Mandarin Oriental,
Singapore is proud to par tner with the MINDS Employment
Development Centre, which empowers adults withintellectual disabilities by offering vocational training toenable greater independence and enhance self-esteem. The
hotel has been active with MINDS since 2007 and currently
employs eight graduates from the programme, each inpositions suited to their capabilities, in various depar tments
such as Housekeeping, Stewarding, Engineering and
Banquets. The hotel also built a “Sharity Wall” in 2011,
which displays hand-crafted tile ar twork from MINDS
graduates at the proper ty as a fundraising drive. Throughthis initiative and other charitable activities at the proper ty,
the colleagues of Mandarin Oriental, Singapore havepersonally raised over US$5,000 for the MINDS Education
Development Fund.

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Educating Kids On Healthy Eating
The Mott Schoolyard Project at Mott Hall School in
New York City, an elementary school located in Harlem,
was developed to educate young children on healthyeating habits and vegetable gardens. Each year, withthe assistance of Mandarin Oriental, New York and its
executive chef Toni Robertson, the team plants an edible
garden focusing on a new vegetable.
When First Lady Michelle Obama addressed hundredsof chefs on the South Lawn of the White House forthe “Chefs Move to Schools” programme in 2010, she
singled out Chef Robertson’s success in helping to solve
the childhood obesity epidemic through the on-goingproject with the school. In her own words: “There are folks
like Chef Toni Robertson, who, for the last three years, hashelped students from the Mott Hall School in New York planta vegetable garden and learn healthy eating habits—eventhrowing salad parties for parents. That’s a good thing”.

“Voluntourism” At Everglades National Park
In 2009, Mandarin Oriental, Miami began its partnership with Everglades National Park, a designated UNESCO World
Heritage Site, to learn about the challenges they face and to develop opportunities to help through “voluntourism”
programmes. These interesting and rewarding day trips include tree planting, recycling projects and the removalof invasive plants. In 2011, The Spa at Mandarin Oriental, Miami developed an innovative treatment to support thePark, launching its Herbal Thai Compress Ritual for soothing muscles with compresses made of naturally therapeutic
ingredients. At the end of each treatment, spa guests are asked to select a type of native tree to be planted in thePark, which is the largest subtropical wilderness in the United States.
Spa colleagues joined park rangers later in the year to plant the native trees that were part of the package. Clad in
long-sleeved shirts and pants to protect against sun, insects and poison ivy, the team worked in a 6,600-acre portionof the park that was overrun by exotic plants and replanted the landscape with dozens of the donated native trees.

“Your partnership with Everglades National Park begun
years ago under the World Heritage Allianceis extremely impressive and worthy of being held up as a model.”—Stephen A. Morris, Chief, Office of International Affairs,
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COMMUNITYPROGRAMMESMandarin Oriental, Boston
and The Home
for Little Wanderers
Through a variety of events and internal
drives, Mandarin Oriental, Boston was
delighted to raise over US$8,500 in 2011,
which was then matched by Mandarin
Oriental, for its charitable partner, The
Home of Little Wanderers. A nationallyrenowned, private, non-profit childand family service agency, The Homehas been part of the Massachusetts
landscape for over 200 years, making it
the oldest agency of its kind in the nationand one of the largest in New England.

Here are some examples of charitable
activities under taken by our hotels
to suppor t their local communities.

Mandarin Oriental hotels in the
United States are extending
their charitable community
contributions with the help of
the Fantastic Match programme.
Our charity matching
programme, launched in 2010,
matches the funds raised bycolleagues from charitable
activities at their hotels, up to
US$10,000 per year.
BOSTONSAN FRANCISCO
WASHINGTON, D.C.

Mandarin Oriental
and Clean the World

Mandarin Oriental,
San Francisco Makes Strides
Against Breast Cancer

Mandarin Oriental,
Washington D.C.’s“FANtastic March”

Mandarin Oriental, San Francisco
helped make strides against breast
cancer by participating in theAmerican Cancer Society’s annual
Walkathon in Golden Gate Park on
22nd October 2011. Colleagues raised
US$9,000 from the event, which
was matched by Mandarin Oriental,
doubling the total contribution to vital
research needed for a cure.

In September 2011, colleagues at
Mandarin Oriental, Washington D.C.
organised “The FANtastic March”,
a 10K walk/run to help raise funds
to build a much-needed children’s
playground in Southwest D.C. With
the help of our colleagues and many
community participants, the single
event raised nearly US$30,000—
more than triple its original goal.
Mandarin Oriental was delighted to
donate a further US$10,000 throughits matching fund programme.
Playground construction, organised by
the Community Benefits Coordinating
Council (CBCC) in Southwest D.C., isnow set to commence in 2012.
Mandarin Oriental, Washington D.C.’s“FANtastic March” was recognised by
the Hotel Association of Washington
D.C. (HAWDC) for “Community
Service” and “Special Event, One Time
Only” at HAWDC’s “Stars of theIndustry” awards held in early 2012.

The mission of the non-profit
organisation Clean the World is mighty,
but its solution is simple: save millionsof lives each year by distributing
recycled soap and promoting proper
personal hygiene practices. Mandarin
Oriental hotels in North America
are proud to partner with Clean
the World by donating soaps andshampoo to aid this cause and to divert
unused products from landfills. To
date, Mandarin Oriental hotels havediverted nearly five tons of soap from
disposal for donation to Clean theWorld, resulting in nearly 52,000 barsof soap delivered to people in need.
A challenge of this type of programmeis the additional greenhouse gas
emissions that stem from theredistribution of the new soaps tothe communities in need; however,
the improvements in sanitation andpublic health due to the use of the
donated soaps save lives within thosecommunities. Mandarin Oriental willcontinue to weigh the benefits andchallenges of these types of efforts in
our quest to help people in need andconsider the life cycle of product use.

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Mandarin Oriental, Manila
Supports Bronte’s Toy Driveand “The Tree o f Love”
Mandarin Oriental, Munich andClemens Maria Kinderheim
The 95-year-old children’s home,
Clemens Maria Kinderheim, provides
special education and youth
services for vulnerable children andadolescents in the Munich area. In
2011, Mandarin Oriental, Munich wasproud to donate good-condition
equipment, including infant beds andcrockery, to help support the valuable
services provided by the home tothe community’s at-risk children.

MUNICH

Colleagues of Mandarin Oriental,
Manila joined hands to support a toy
drive for victims of Typhoon Sendong,organised by seven-year-old Bronte
Henfling, a long-staying guest at thehotel. To come to the aid of theyoung victims of Typhoon Sendong in
Cagayan de Oro and Iligan (Mindanao),Miss Henfling appealed to friends
and family to donate plush toys via aYouTube video. Her plea for donations
became viral and made headlines innational dailies and news channels.
Encouraging her efforts, the hotel
established a “Tree of Love”, locatedat the MO Lounge, which served as adrop-off point for the donated new
and pre-loved toys. Plush toys camein from all parts of the city, Australia,
the United States and Canada. Hotelcolleagues also donated toys and thehotel dry-cleaned those in need prior
to shipping them to Mindanao. With
the support of the hotel, the Black
Pencil Project, 1000 Bear Hugs Projectand Hope Worldwide, Bronte Henfling
was able to collect over 3,000 stuffedtoys and, more importantly, put smiles
on young children’s faces again.

The Excelsior, Hong Kong’s
Donation to “Food Angel”
Food Angel is a food recovery
programme established by
Bo Foundation, a non-profit group
founded in 2009, which plays anactive role in alleviating poverty
and food waste in Hong Kong. FoodAngel collects both perishable andpreserved foods from selectedsources and is able to prepare meals
and deliver them daily to those in
need. By virtue of its food donation,
The Excelsior, Hong Kong helped FoodAngel to supply nearly 4,000 meals
to needy individuals in Hong Kong.

Mandarin Oriental,
Kuala Lumpur’s Annual“Tree of Hope”
During the 2011 festive season,
Mandarin Oriental, Kuala Lumpur
organised their annual “Holiday
Tree of Hope”, whose purpose is to
grant wishes to children in Malaysia’s
dependent care system. Mandarin
Oriental, Kuala Lumpur works with
18 charity-supported children’s
homes for the initiative andreceived 873 “wishes” in 2011.
Wish cards were hung on the hotel’s
Christmas tree to encourage guests andcolleagues to donate generously. The
charity campaign collected RM31,450(US$10,200) with the help of colleagues,
guests and corporate partners.
On 21st December, a tree lighting
ceremony and charity dinner was also
held at the hotel, and 100 children
from three participating homes
attended. The evening’s entertainment
included inflatable playgrounds, aclown performance, face painting andmore. From the funds raised with
the Holiday Tree of Hope, gifts werepurchased to grant the children’s
wishes, and wrapped by colleagues forall of the participating homes.

HONG KONG

MANILAKUALA LUMPUR

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MANDARIN ORIEN TAL d h a r a d h e v i , c h i a n g m a i

The ORGANIC GARDENc a se st u dy

Nestled within Mandarin Oriental Dhara Dhevi, Chiang Mai’s 60 acres of tropical northern Thai countrysideis the luxury resort’s own organic garden. Far from the usual vegetable plot, the organic garden occupies animpressive 3,000 square metres of fertile land amongst the resort’s beautiful Lanna-style buildings. Establishedin August 2011, the garden is already an important part of Mandarin Oriental Dhara Dhevi, Chiang Mai’s
corporate responsibility programme and is playing a key role in both the resort and local community.
A collaborative effort with Chiang Mai’s Maejo University, the garden sprouts forth a large variety of quality
produce such as lettuce, Cantonese cabbage, morning glory, chilies and culinary herbs. While approximately
10% of this supplies the resort’s restaurants and the colleague canteen, the majority of crops are donated for
consumption to nearby Don Chan Temple. The temple is home to over 800 children in need, who are under
the care of Abbot Anan Ananto. Additionally, garden produce is sold to the local community at a weekly
market established by the resort to generate much-needed funds for the Temple.
Mandarin Oriental Dhara Dhevi, Chiang Mai signed a formal agreement with Maejo Agricultural University’sfaculty, who provide the technical knowledge behind the organic garden’s growing success. This covers
everything from identifying the crops most suited to Chiang Mai’s climate and soil, tending to the growing
produce, and the recycling of garden and resort waste into quality compost. The garden also has a worm
farm, through which much of the waste is recycled, while the worms also produce natural fertiliser.
“Under enthusiastic and attentive colleague care, our organic garden is already yielding top quality produce
and is doing so in a sustainable, charitable and educational manner”, says Greg Liddell, Mandarin Oriental
Dhara Dhevi, Chiang Mai’s General Manager. “Already a much-loved project, the garden is something we’retaking very seriously and are committed to as a team”.
There are plans for the ongoing development of the organic garden, in addition to the valuable contributions
already being made. The resort will use the garden to teach people in the community how to grow and sell theirown produce, and the garden will be made available to university students for their studies. Also in the works: anorganic cooking school and a tour centred on the garden’s sustainable and environmentally friendly aspects.

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future directions

FUTURE DIRECTIONSWith this report, we have endeavoured to reflect both the achievements and challenges we have experienced during our initialsustainability journey. We recognise the challenges as opportunities to continuously learn and develop rather than obstacles thatwill prevent us from achieving our goals. We are committed to making a difference and leading the luxury hospitality industry insustainability and recognise this pursuit requires both immediate action and the adoption of a long-term strategy.
Over the coming years, we will refine our sustainability targets and key performance indicators, making sure they arealigned with industry standards, gradually expanding to cover all areas within our operational control. This will allow ouroperations to have measurable goals and our Group to strategically adopt action plans for funding new technologies andoperational initiatives.
On the social dimension, we will encourage our colleagues to continue our long history of championing thecommunities we serve and identifying areas where we can further develop.
We strongly believe in a systematic approach and will therefore continue to develop ourprogrammes and processes to assist our colleagues in delivering excellence and to provide anenvironment that is safe, sound and sustainable.
Finally, we will use our position as a leader in the industry to engage andinfluence colleagues, guests, communities, developers and otherstakeholders. We therefore invite your feedback on thisreport and look forward to beginning a meaningful
dialogue to assist us on our quest. Please direct
inquiries and suggestions to Danielle DeVoe(ddevoe@mohg.com) or Peter Lofgren(plofgren@mohg.com).

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a pp e n d i c e s

SUSTAINABILITY AWARDS
AND CERTIFICATIONS
awa r d s

c e r t i f i c at i o n s

Mandarin Oriental , Boston
Massachusetts Lodging Association
Award for Community Service
Received in March 2011 for helping the Peabody Essex
Museum bring the landmark exhibit “Treasures from the
Forbidden City” to the public for the first time.

Mandarin Oriental Hyde Park, London
Green Tourism, Silver Award
The hotel has gone through the audit scheme fromGreen Tourism for London and achieved the Silver award.
The assessment process included a rigorous set of criteria,
covering energy and water efficiency, waste management,
biodiversity and more.

Mandarin Oriental , Kual a Lumpur
Ministry of Tourism’s “Green Award”
Awarded to the hotel in late 2010, with a consecutive
nomination for the “ASEAN Green Award”, which ispresented by the International ASEAN Tourism Forum.
Selected to receive the “ASEAN Green Hotel Awardfor 2012”. Multiple environmental and social criteria areconsidered.
The Spa at Mandarin Oriental , L as Vegas
SpaFinder Reader’s Choice 2011,
Best in Environmental Practices
One of the top 10 spas nominated by the public(www.spafinder.com/rca).
Mandarin Oriental , Sanya
Five Gold Leaf Grade “China Green Hotel” by the
National Green Hotel Committee and China Association
Only eight hotels in Hainan received this award for
2010–2014, which is awarded for a hotel’s priorities onenvironmental conservation, green programmes, foodsafety and hygiene and energy efficiency and its longstanding commitment to the environment.
Mandarin Oriental , Tokyo
Top 30 Low Emission Building
Certification awarded in April 2011 to buildings with theleast energy consumption. Items were checked in relation
to the energy performance, operation and management of
the facilities and building.
Mandarin Oriental , Washington D.C.
Award for Community Service in 2012 Stars of theIndustry Awards by Hotel Association of Washington D.C.
Awarded for programmes that demonstrate that theindividual property is responsive to the local community.
Examples include campaigns to benefit local or national
service organisations or charities, service to any part of thecommunity through a special project, and joint undertakings
with community groups for the benefit of the area.

Mandarin Oriental , Kual a Lumpur
ISO 14001
Certified since 2003.
Mandarin Oriental , L as Vegas
LEED Gold
LEED Gold Certification after third-party verification of
the building’s green design and performance in multiple
categories.
Mandarin Oriental , Miami
Green Hotel by the Florida Green Lodging Program
Certified since 2009, the hotel has implemented a
specified number of environmental practices in the six
areas of communication and education: waste reduction,
reuse and recycling; water conservation; energy efficiency;
indoor air quality; transportation.
Mandarin Oriental , Paris
HQE certification
First hotel to get the operational HQE certification.
The certification is based upon 14 criteria of eco-design,
eco-management, comfort and health.

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66

a pp e n d i c e s

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 this report. 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● F u l l C o v e r ag e

I n d i c ato r

1.1● Pa r t i a l C o v e r ag e

Description

S tat u s

Lo c at i o nStatement from the most senior decision-maker of the organisation.

●

Introduction, page 2

2.1

Name of the organisation.

●

Introduction, page 7

2.2

Primary brands, products, and/or services.

●

Introduction, page 7

2.3

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

●

Introduction, page 7

2.4

Location of organisation’s headquarters.

●

Introduction, page 7

2.5

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

●

Introduction, page 6

2.6

Nature of ownership and legal form.

●

Introduction, page 7

2.7

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

●

Introduction, page 7

2.8

Scale of the reporting organisation.

●

Introduction, page 7

2.9

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

●

Introduction, page 7

2.10

Awards received in the reporting period.

●

Appendix, page 65

3.1

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

●

Introduction, page 3

3.2

Date of most recent previous report (if any).

●

Introduction, page 3

3.3

Reporting cycle.

●

Introduction, page 3

3.4

Contact point for questions regarding the report or its contents.

●

Future Directions, page 64

3.5

Process for defining report content.

●

Introduction, page 3

3.6

Boundary of the report.

●

Introduction, page 3

3.7

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

●

Introduction, page 3

3.8

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

●Introduction, page 7

3.9

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

●

Introduction, page 3

3.10

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

●

Introduction, page 3

3.11

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

●

Introduction, page 3

3.12

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

●

3.13

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

4.1

Governance structure of the organisation, including committees under the highest governancebody responsible for specific tasks, such as setting strategy or organisational oversight.

●

Annual Financial Report, page 77

4.2

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

●

Annual Financial Report, page 77

4.3

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

●

Annual Financial Report,
pages 77–78

4.4

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

●

Delivering Excellence, page 11
Annual Financial Report, page 81

4.6

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

●

Annual Financial Report, page 77

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

●

Delivering Excellence, page 11
Annual Financial Report, page 79

Appendix, page 66
Introduction, page 3

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a pp e n d i c e s

KEY● F u l l C o v e r ag e

I n d i c ato r

4.9● Pa r t i a l C o v e r ag e
S tat u slo c at i o n

Procedures of the highest governance body for overseeing the organisation’s identification andmanagement of economic, environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationally agreed standards, codes ofconduct, and principles.

description●

Delivering Excellence, page 11
Annual Financial Report,
pages 79–80

4.14

List of stakeholder groups engaged by the organisation.

●

Delivering Excellence, page 12

4.15

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

●

Delivering Excellence, page 12

EC1

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

●

Introduction, page 7
Annual Financial Report, page 44

EC2

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

●

Advancing Sustainability, page 28

EC3

Coverage of the organisation’s defined benefit plan obligations.

●Introduction, page 7EC4Significant financial assistance received from government.

●

Annual Financial Report, page 66

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

●

Championing Community, page 54

EN3

Direct energy consumption by primary energy source.

●

Advancing Sustainability, page 32

EN4

Indirect energy consumption by primary source.

●

Advancing Sustainability, page 32

EN5Energy saved due to conservation and efficiency improvements.

●

Advancing Sustainability, page 33

EN6

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

●

Advancing Sustainability, page 33

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

●

Advancing Sustainability,
pages 36–41

EN8

Total water withdrawal by source.

●

Advancing Sustainability,
pages 42–43

EN16

Total direct and indirect greenhouse gas emissions by weight.

●

Advancing Sustainability, page 35

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

●

Advancing Sustainability,
pages 36–41

EN22

Total weight of waste by type and disposal method.

●

Advancing Sustainability,
pages 46–48

EN26

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

●

Advancing Sustainability, page 28

LA1

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

●

Delivering Excellence, page 13

LA2

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

●

Delivering Excellence, page 13

LA3

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

●

Delivering Excellence, page 14

LA7

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

●

Delivering Excellence, page 18

LA10

Average hours of training per year per employee by employee category.

●

Delivering Excellence, page 15

LA11

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

●

Delivering Excellence, page 15

LA12

Percentage of employees receiving regular performance and career development reviews.

●

Delivering Excellence, page 14

LA13

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

●

Delivering Excellence, page 14

HR3

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

●

Delivering Excellence, page 11

HR8

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

●

Delivering Excellence, page 11

SO8

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

●

Delivering Excellence, page 16

PR1

Life 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 suchprocedures.

●

Delivering Excellence, page 23

PR5

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

●

Delivering Excellence, page 19

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a pp e n d i c e s

a s s u r a n c e d o c u m e n tat i o nAssurance Statement
Terms of Engagement
This Assurance Statement has been prepared for Mandarin Oriental Hotel Group.
Lloyd’s Register Quality Assurance Ltd. (LRQA) was commissioned by Mandarin Oriental HotelGroup (MOHG) to assure its MOHG 2011Sustainability Report (hereafter referred to as “theReport”) for the calendar year ending 31 December 2011. The Report relates to thesustainability performance of MOHG.
Our terms of engagement covered MOHG head office in Hong Kong and the hotels where
MOHG had full operational control in 2011. Our assurance did not cover those residences
and hotels which were either not fully operational or were under development during 2011.

Management Responsibility
MOHG’s management was responsible for preparing the Report and for maintaining
effective internal controls over the data and information disclosed. LRQA’s responsibility was
to carry out an assurance engagement on the Report in accordance with our contract with
MOHG.
Ultimately, the Report has been approved by, and remains the responsibility of MOHG.

LRQA’s Approach
Our verification has been conducted against the Global Reporting Initiative Sustainability
Reporting Guidelines (GRI G3), 2006. The objectives of the assurance engagement were to: Confirm that the Report meets the requirements of GRI’s application level C
 Validate MOHG’s self-declaration for GRI’s application level C
 Express our opinion on whether MOHG’s reporting processes provide reliable sustainability
performance data and information.
To form our conclusions the assurance was undertaken as a sampling exercise and covered
the following activities:
 Reviewing MOHG’s stakeholder engagement process and information collected fromthe various stakeholder groups
 Evaluating MOHG’s material issues against our own independent analysis of stakeholder
issues Carrying out a benchmarking exercise of high-level material issues by reviewing
sustainability reports written by other companies within the hotel industry
 Understanding how MOHG determine, respond and report on their material issues
 Interviewing management to understand MOHG’s reporting processes and use ofsustainability performance data within their business decision-making processes Interviewing the key personnel to understand MOHG’s processes for setting performanceindicators and for monitoring progress made during the reporting period.
 Verifying MOHG’s data and information management processes and reviewing
supporting evidence made available by MOHG at their head office.
Note 1: The verification was undertaken at MOHG’s head office, 281 Gloucester Road, Causeway
Bay, Hong Kong in accordance with our contract and therefore did not include verifying the databack to its original sources, nor did it assess the accuracy and completeness of the data reported
by individual locations.
Note 2: Economic performance data was taken direct from the audited financial accounts.



Checking that the GRI index allows stakeholders to access sustainability performanceindicators.

This document is subject to the provision on page 2

m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

a pp e n d i c e sLevel of Assurance & Materiality
The opinion expressed in this Assurance Statement has been formed on the basis of alimited level of assurance and applying professional judgement for materiality.
LRQA’s Opinion
Based on LRQA’s approach nothing has come to our attention that would cause us tobelieve that the Report does not meet the requirements for GRI´s application level C as
we found nothing that would cause us to contradict this conclusion.
It is also our opinion that MOHG has not excluded any material issues and that theirprocesses for reporting would provide reliable sustainability data and information.
LRQA’s Recommendations
MOHG should:
 Establish goals to demonstrate their CR commitment and achievements in the areasof ‘Delivering Excellence’ and ‘Championing Community’; currently MOHG has only
set environmental sustainability goals.
 Ensure that the sustainability data and information is fully reported as per GRI G3.1
requirements. For example, report the management approach in response to the
MOHG sustainability commitments.

SignedDated: 4th May 2012

William TsuiLRQA Lead Verifier
On behalf of Lloyd’s Register Quality Assurance
22nd Floor, Dah Sing Financial Centre,
108 Gloucester Road, Wanchai, Hong Kong
LRQA Reference: HKG6013400/0002
This document is subject to the provision below:
This Assurance Statement is only valid when published with the Report to which it refers.
Lloyd's Register Quality Assurance Limited, its affiliates and subsidiaries and their respective officers, employees or agents are,individually and collectively, referred to in this clause as the 'Lloyd’s Register Group'. The Lloyd’s Register Group assumes noresponsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice
in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd’s Register Group ent ity forthe provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set
out in that contract.
Because of the inherent limitations in any internal control it is possible that fraud, error, or non -compliance with laws and regulations
may occur and not be detected. Further, the verification was not designed to detect all weakness or errors in internal controls so far
as they relate to the requirements set out above as the verification has not been performed continuously throughout the perio d andthe verification carried out on the relevant internal controls were on a test basis. Any projection of the evaluation of control to future
periods is subject to the risk that the processes may become inadequate because of changes in conditions, or that the degree ofcompliance with them may deteriorate.
The English version of this statement is the only valid version. The Lloyd’s Register Group assumes no responsibility for ver sions
translated into other languages.

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m a n d a r i n o r i e n ta l h ot e l g r o u p s u s ta i n a b i l i t y r e p o rt 2 011

3section nameMandarin Oriental Hotel Group
Corporate Office
281 Gloucester Road
Causeway Bay, Hong Kong

mandarinoriental.com

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