2 0 13
S USTAINABI LITY
RE P OR T

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

Table of Contents
Introduction
About Mandarin Oriental Hotel Group
Message from the CEO
About this Report
Acting with Responsibility
Commitments and Practices

Delivering Excellence
Delighting our Guests
Employer of Choice
Colleague Development
Sourcing Responsibly
Health and Wellness
Safe, Sound & Sustainable

2
3
4
5
6
9

11
13
14
16
19
22
24

Advancing Sustainability 29
Reducing Energy Consumption
Reducing Emissions
Reducing Waste
Reducing Water Consumption

32
36
39
42

Championing Community 45
Cultural Heritage
Community Programmes

Future Directions
A P P END I C ES
Sustainability Awards and Certifications
GRI Index
Performance Data
Endnotes

46
48

54
55
56
58
63

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Mandarin Oriental, Bangkok

Mandarin Oriental, Guangzhou

The Landmark Mandarin Oriental, Hong Kong

Mandarin Oriental, Hong Kong

The Excelsior, Hong Kong

Mandarin Oriental, Jakarta

Mandarin Oriental, Kuala Lumpur

Mandarin Oriental, Macau

Mandarin Oriental, Manila

Mandarin Oriental, Sanya

Mandarin Oriental Pudong, Shanghai

Mandarin Oriental, Singapore

Mandarin Oriental, Tokyo

Mandarin Oriental, Atlanta

Mandarin Oriental, Boston

Mandarin Oriental, Las Vegas

Mandarin Oriental, Miami

Mandarin Oriental, New York

Mandarin Oriental, San Francisco

Mandarin Oriental, Washington D.C.

Mandarin Oriental, Barcelona

Mandarin Oriental, Geneva

Mandarin Oriental Hyde Park, London

Mandarin Oriental, Munich

The Group now operates,or has under development,
44 hotels in 25 countries
20 in Asia
10 in The Americas
14 in Europe, Middle East and North Africa
Mandarin Oriental, Paris

Mandarin Oriental, Prague

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Mandarin Oriental Hotel Group is an international hotel investment and management group with luxury hotels,
resorts and residences in sought-after destinations around the world. Having grown from a well-respected Asian
hotel company into a global brand, the Group now operates, or has under development, 44 hotels representing
close to 11,000 rooms in 25 countries, with 20 hotels in Asia, 10 in The Americas and 14 in Europe, Middle Eastand North Africa. In addition, the Group operates, or has under development, 13 Residences at Mandarin Oriental
connected to its properties. The Group has equity interests in a number of its properties and net assets totalling
approximately US$3.1 billion as of 31st December 2013.
Mandarin Oriental’s aim is to be recognised widely as the best global luxury hotel group, providing 21st century
luxury with oriental charm in each of its hotels. This will be achieved by investing in the Group’s exceptional
facilities and its people, while maximising profitability and long-term shareholder value. The strategy of the Group
is to open the hotels currently under development, while continuing to seek further selective opportunities for
expansion around the world. For more information about the direct economic value generated and distributed by
Mandarin Oriental Hotel Group, including revenues, operating costs, employee compensation and payments toproviders of capital and governments, please refer to the Appendix (p. 58) of this report.
The parent company, Mandarin Oriental International Limited, is incorporated in Bermuda and has its primarylisting on the London Stock Exchange, with secondary listings in Bermuda and Singapore. Mandarin Oriental
Hotel Group International Limited, which operates from Hong Kong, manages the activities of the Group’s
hotels. Jardine Matheson Group is the parent company of Mandarin Oriental and owns a majority of the equity
shares. For more information about Mandarin Oriental’s corporate structure, governance or for our full financial
disclosure, please refer to the Group’s Annual Financial Report available on our website at mandarinoriental.com.

IN T ROD U C T ION

About Mandarin Oriental Hotel Group3

4

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3Doing More for a
Sustainable Future
At Mandarin Oriental, we understand that our long-term success depends on thehealth and prosperity of the communities in which we do business. We’re proud toembrace our corporate responsibilities with the same dedication and enthusiastic
service that have distinguished our company for the past five decades.

With the guidanceof the Group’s
Corporate
Responsibility
Committee andthe commitment ofhotel colleagues
worldwide, we aremaking meaningfulprogress on
our sustainability
priorities.

In this our third annual Sustainability Report, we highlight the Group’s collective
initiatives to advance environmental sustainability and to strengthen the communities
in which we operate. With the guidance of the Group’s Corporate Responsibility
Committee and the commitment of hotel colleagues worldwide, we made meaningfulprogress on our sustainability priorities, including these notable accomplishments:• We increased energy efficiency by 13.4% and reduced greenhouse gas
emissions intensity by 17.8% over the period 2007–2013. Our conservation
gains were attained even as the Group expanded operations worldwide.
•W e realised US$28.8 million in cost savings from 2007 to 2013 byimplementing strategic energy efficiency initiatives.
•W e launched a dedicated sustainability training programme in 2013 toencourage greater awareness and engagement amongst our colleagues, who
remain our most valuable resource.
• We supported many worthy causes in our communities, with a special
focus on cultural heritage preservation and charitable programmes toassist those in need.
We will continue to make progress towards our goals, and in so doing, we arecommitted to addressing our sustainability challenges. Our waste reduction
programme is in early stages, but we are ready to take on the challenge of improving
our waste management processes in order to meet our goals. This highlights theimportance of setting goals in order to achieve our long-term objectives. In 2013,
the Group established new short-term environmental goals, which are detailed within
this report, and every Mandarin Oriental hotel received individual goals to help drive
their performance.
Whilst more work lies ahead, I’m confident that we will continue to make good
progress on our journey towards a more sustainable future.

Edouard EttedguiGroup Chief Executive

5

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013This is the Group’s third annual
sustainability report. Information
presented in this report is consistent
with Global Reporting Initiative (GRI)
sustainability reporting framework 3.1,
self-reported to Level C. In prior years,
the report has been assured by a third
party and we intend to seek assurance
for future publications. A GRI Index isincluded at the end of this report.

Scope and Boundaries

This sustainability report presents
information from the Group’s 27
hotels that operated throughout 2013.
Unless otherwise specified, the report
excludes two hotels which openedin 2013—Mandarin Oriental Pudong,Shanghai and Mandarin Oriental,
Guangzhou. One hotel in Chiang Mai,
Thailand also left the Group in 2013.
No other structure changes occurredin the reporting period. Hotels underdevelopment and residences are notincluded in this report.
Mandarin Oriental Hotel Group
selected 2007 as the base year for theenvironmental data in this report and2008 as the base year for occupational
health and safety data. As structurechanges occur, historical and baseyear data are adjusted. Economic
information is presented for the past
three years.
All calculations are completed inaccordance with industry practices
or as recommended by the GRI, andare explained within each section.
There are no restatements of historical
data in this report, other than toaccommodate the change in theorganisational structure, noted above.

Materiality

The Group believes that the GRI
aspects included in this report arematerial to our business. A formal
process will be undertaken in 2014 todetermine if additional GRI aspects
are material and should be included infuture reporting.

IN T ROD U C T ION

About This Report
Our Corporate
Responsibility
Policy:Mandarin Oriental
is committed tocontributing to thecommunities inwhich we operate
and responsibly
managing ourenvironmental
impacts and social
commitments.

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

Guiding Principles

Mandarin Oriental’s mission is
to completely delight and satisfy
our guests, and our mission is
supported by our long-standing
Guiding Principles that describe
the values of our company and ourcolleagues. Our Guiding Principles
underpin everything that we doon a daily basis, ensuring that we
operate to the highest possible
standards. Responsibility is a
key tenet of Mandarin Oriental’s
Guiding Principles: “We will actively
participate in the improvementof the environment, just as we
will be responsible members of
our communities and industry
organisations”.

Responsible
Operating Practices

Our ethical standards are clearly
set out in the company’s Code of
Conduct, a set of guidelines towhich every colleague must adhere.
Our Code of Conduct requires that
we comply with all laws of generalapplication, all rules and regulations
that are industry specific and proper
standards of business conduct.
The code prohibits the giving or
receiving of illicit payments andrequires all colleagues to be treatedfairly, impartially and with respect. It
also requires that all managers mustbe fully aware of their obligations
under the Code of Conduct andmust establish procedures to ensurecompliance at all levels within theirorganisations. The Group has in place
procedures by which colleagues
can raise, in confidence, matters ofserious concern in areas such as
financial reporting or compliance.
Mandarin Oriental has Group-wide
hiring and employment guidelines aswell as strict anti-harassment andanti-discrimination policies. Everycolleague receives training on our
employment policies upon hire.

Governance for Sustainability
The Group Corporate Responsibility
Committee (GCRC) is responsible
for Mandarin Oriental’s overall

All hotels display a framed poster(available in eight languages) of
the Group’s corporate responsbility
policy and commitments in
employee areas to promote oursustainability vision and values.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

In addition, every Mandarin Oriental
property also has its own Hotel
Corporate Responsibility Committee(HCRC), led by a designatedChampion. Each HCRC is responsiblefor implementing Group and local
sustainability initiatives with thesupport of our colleagues. The hotel
Champions are responsible for raising
issues identified at the hotels to their
General Managers and to the GCRC,
which in turn raises issues to the
Executive Champion and the Board of
Directors, if necessary.
In 2013, the GCRC held two
meetings, and its representative
conducted regional conference callswith hotel Champions twice during
the year. These conference calls
were created to share information
related to sustainability initiatives,
guidelines, challenges, and activities
underway throughout the Group.
Hotel Champions continue thesustainability dialogue with peers bycommunicating internally and driving
greater colleague engagement.

Stakeholder Engagement

We recognise the importanceof engaging our stakeholders tounderstand their viewpoints so we canbetter align our business with theirgoals. To advance dialogue with our
stakeholders, Mandarin Oriental shares
both the successes and challenges ofour sustainability programme.

Sustainability Governance
Organisation
Group
Corporate
Responsibility
Committee with
Executive
Champion

Hotel
Corporate
Responsibility
Champions

Hotel
Corporate
Responsibility
Committees

Colleagues

Our stakeholder engagement process
has evolved over our long history
rather than as a result of a formal,
defined process. We have identified
the following list of stakeholder
groups to date:• Guests• Colleagues• Hotel owners and developers•L ocal communities in which we
operate• Shareholders• Vendors, suppliers and contractors• Industry peers and tradeassociations• J ournalists and media
representatives•N on-government organisations(NGOs) and outside advisors
We engage our stakeholders throughvarious avenues of communication,
including our colleague engagement andguest satisfaction and loyalty surveys,
investor meetings and the publicationof our annual financial and sustainability
reports. We will continue to use existingprocesses for feedback and refine our
stakeholder engagement strategy as we
progress on our sustainability journey.

IN T ROD U C T ION

sustainability strategy, including
the setting of measurable goals,
programme development, andpromoting and soliciting feedback on
Corporate Responsibility initiatives.
The GCRC is directed by oursustainability Executive Champion,
Terry Stinson, Group Development
Director and President of the Americas
and an executive-level member of the
management board.

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Our Guiding Principles
Delighting
our guests

We will strive to understand our client and guest needs bylistening to their requirements and responding in a competent,
accurate and timely fashion. We will design and deliver ourservices and products to address their needs. In fact, we arecommitted to exceeding their expectations by surprising themwith our ability to anticipate and fulfill their wishes.

Working
together ascolleagues

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

Promotinga climate ofenthusiasm

We are committed to everyone at Mandarin Oriental byproviding a caring, motivating and rewarding environment.
As an industry leader, we are committed to bringing out
the best in our people through effective training andmeaningful career and personal development, and byencouraging individuality and initiative.

Being
the best

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

Delivering
shareholder
value

We are committed to being a growing company.
Our success will result in investment returns which
are consistently among the best in the hotel industry.

Playing by
the rules

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

Actingwith
responsibility

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

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

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

Corporate Responsibility Practices

Operate in anenvironmentallyand socially
responsible way

Delivering
Excellence

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

Publicly report our impact
on the environment

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

Meet or exceed allapplicable environmental
standards

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

Minimise our consumptionof resources including
energy, water and materials

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

Reduce our greenhousegas emissions,waste and pollution

Championing
Community

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

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

Advancing
Sustainability

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

Positively impact our local
communities and celebrate
our cultural heritage

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

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

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

IN T ROD U C T ION

Commitments and Practices

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Delivering
Excellence

Mandarin Oriental’s
mission is to completely
delight and satisfy ourguests. We are committed
to making a difference every
day, continually getting
better to keep us the best.

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DELIVERING EXCELLENCE
Mandarin Oriental’s reputation for providing legendary service is the hallmark of our brand. Our approaches to guest
satisfaction, employment, colleague development, health and wellness, responsible sourcing and safety play an important rolein fulfilling our mission and distinguishing the Mandarin Oriental brand.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Mandarin Oriental’s legendary service
underpins everything that we do, and
the Group is committed to exceedingguests’ expectations on a daily basis.
We focus on providing personalised
service to every guest every day, and on
the sincerity of the people who deliver it.
We encourage colleagues to know ourguests, to anticipate what they want, inorder to surprise and delight them.

Mandarin Oriental maintains various
quality measurement processes tomonitor and improve performance,
including the international
benchmarking standards establishedby Leading Quality Assurance. We
are also measured against otherinternational standards, including theAmerican Automobile Association(AAA), the Forbes Travel Guide andthe Michelin Guide. In 2013, eight
Mandarin Oriental hotels achieved theForbes “Five-Star” status and nine of
our restaurants were honoured with a
total of 13 Michelin stars, more thanany other hotel group in the world.

Guest Satisfaction

Feedback from our guests is vital to
our success. We conduct a customer
satisfaction and loyalty survey withthe help of a third-party organisationthat sends an online questionnaire
following a guest’s stay. The
Group receives over 35,000 guest
satisfaction surveys annually, which
are measured and analysed to help
ensure constant improvement.

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

To help our colleagues on their mission,
the Group has created the Legendary
Quality Experiences—over 200 company
guidelines, which focus on experiences
rather than basic luxury standards. All
hotels receive three annual audits for
quality assurance, and the results areshared across the Group.

D EL IVERIN G EXC EL L EN C E

Delighting our Guests

Mandarin Oriental’s overall satisfaction
ratings indicate a consistently high levelof guest satisfaction and loyalty to thebrand, varying less than three percentage
points since 2009. In 2013, we achieved
an overall satisfaction rate of 87%,
consistent with last year’s performance.

Guest Satisfaction and Loyalty Survey Results

100
88

88

87

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

90

87

80

60

40

20

0

2009

2010

2011

2012

guest
survey

2013

100
90%

80

90%

88%

88%

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Employer of Choice
The colleagues at Mandarin Oriental are
the Group’s most prized asset, as theybring a quality and commitment to theirwork that is exceptional in the world of
luxury hospitality. To attract and retain
the finest hospitality professionals,
Mandarin Oriental provides a motivating
and rewarding environment in which
our colleagues can thrive.
As a policy, Mandarin Oriental
colleagues are to be treated withrespect, courtesy and dignity, andthey are to work in clean, pleasant andsafe environments. We are committed
to providing effective training andmeaningful career development. We
also maintain an open-door policy,
creating an atmosphere of harmony
and promoting a culture of fairness for
all colleagues. Our ‘colleague brand’promise is that each colleague will bepersonally valued, and this is supported
by our colleague brand beliefs ofRespect, Harmony, Passion and Growth.

Our Workforce

As of December 2013, Mandarin
Oriental directly employed 12,095
colleagues in its operating hotels andcorporate offices. Full-time colleagues
comprised 91% of the total
workforce, whilst 3% were employedpart time. The remaining 6% were
employed on a casual (non-contract)
basis. The majority of the workforce
consisted of line-staff, representing
76% of the positions, including
casual colleagues. Managers andexecutives made up the remainderof the workforce at 22% and 2%,
respectively.
We measure employee satisfaction
each year with our “Colleague
Engagement Survey”, a voluntary
and anonymous online questionnairethat is issued to the entire hotel
workforce. Response to our survey
in 2013 was 96% and revealed an
86% favourable (excellent or above

average) rating. Since 2010, thepercentage of colleagues rating
Mandarin Oriental Hotel Group as
favourable has increased by one
percentage point year over year.

New Hires and Turnover

Mandarin Oriental experienced aglobal turnover rate of 28.2% in
2013, which is below the current
industry average of 29.3% 1.
Geographically, the Americas
experienced the lowest turnoverrate at 22.2% followed by Asia
and Europe with 27.4% and 42.5%
respectively. Colleagues over theage of 50 were the most stable agegroup with a turnover rate of 13.6%,
followed by colleagues between
30–50 years old (23.1%) andcolleagues 30 years old and younger(40.9%). Regarding employment
type, colleagues working in corporate
and executive positions are the moststable with a turnover rate of 13.3%.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

D EL IVERIN G EXC EL L EN C E

As a global employer of choice,
Mandarin Oriental values diversity
and promotes opportunities for allcolleagues independent of race,
ethnicity, nationality and gender.
Reflecting the location of our hotels
around the world, the majority of ourcolleagues (60.7%) are based in Asia.
Due to the nature of our business,most of our colleagues (74%) are local
to the operation, including managers
and executives (75%). Local is defined
as residing near a hotel’s location
for six months prior to employment.
Managers are defined as colleagues

Women make up 46% of our total
workforce and the gender balanceacross colleague categories isgenerally equal. The number of female
managers increased 11% between
2012 and 2013 and represents thefastest growing colleague category.
We are proud to be a diverse
company with a global footprint. In
2013, a total of 133 nationalities wererepresented in our workforce of over
12,000 colleagues. Chinese and U.S.

citizens comprised 35% of our total
workforce. Mandarin Oriental HydePark, London has the most diverse
workforce in the Group, with citizens
from 60 countries represented.

Comprehensive Benefits

As an industry leader, Mandarin
Oriental offers competitive
benefits that are in line with ourcommitment to provide a motivating
and rewarding environment for allcolleagues. Benefits to full-timecolleagues, although varying by
location, typically consist of: life
insurance, health care, disability,
parental leave and retirement.
Part-time and casual colleagues
receive benefits as required by local
labour laws and conditions, and are
generally pro-rated based on thenumber of hours worked.

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

Diversity and Equal
Opportunity at theCore of our Company

directing a department or group ofcolleagues. Corporate leadership(including the operating committee andMandarin Oriental Hotel Group’s boardof directors) is comprised of more men(63%) and European nationals (90%)
than the company as a whole. Seniorleadership and the individual hotels are
more ethnically diverse than corporate
leadership and are representative ofthe local population.

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

In 2013, 267 colleagues utilised
parental leave, including 112 men
and 155 women. Of these colleagues,
231 returned, including all men(100%) and 119 women (76.8%). This
represents an 87% return rate overall.

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Colleague Development
We are passionate about the growthof our colleagues at every level ofthe organisation—in our hotels,
corporate offices and around theglobe. Our colleagues aspire to be
the best and we support them all
the way by providing rewarding andmemorable learning experiences, aswell as effective career development
opportunities.
Upon commencement with theGroup, new colleagues follow ourextensive MOve In orientation
process which introduces them toour unique company culture and ouroriental heritage. A range of Learningand Development programmes areprovided to address the competency
requirements at each level of ourorganisation as well as individual
learning needs.

Performance and succession
management is critical to support thegrowth plans of our Group as wellas to satisfy the career aspirations of
our colleagues. Annual performanceand succession planning reviews arecompleted at all levels of the organisation
and are reviewed by the Group’s senior
management team. Regular feedback
processes ensure that colleagues areaware of their potential career progress.

Our Performance: Training

Training for Excellence

In 2013, Mandarin Oriental HotelGroup conducted 211 Leadership
Training sessions, including Train-theTrainer, MOve Up and MOve Forward
programmes. A total of 71% of
Mandarin Oriental’s colleagues received
performance and career development
reviews during the year, with abreakdown of 73% for male colleagues
and 68% for female colleagues.

Leadership and personal development
courses at Mandarin Oriental are
conducted through the Group’s “Learning
Framework”, a road map for colleague
development based on their current
and future career goals. Our colleagues
participate in various training anddevelopment programmes, as outlined
below, to help achieve their goals.

Training for competency rather thanhours of training is our way to ensure
success. While much of our training is
not formally recorded, we measure very
carefully whether each colleague is able
to perform the tasks of his or her job to
the required standard. Our training is
personalised rather than a one-fits-all
approach and focuses on the skills andabilities needed to perform each position.

Training Programmes

MOve
ForwardMOve In

An extensive orientation
during the first 90 daysof employment

MOve UpPARTICIPANTS
All Colleagues

A six-monthcourse focused oncompetency building andindividual and teamleadership skills

PARTICIPANTS
Supervisors /Junior Managers

A wide-ranging
management development
programme to enhancebusiness skills andleadership qualities

PARTICIPANTS
Experienced
Managers /Department Heads
andExecutive Committee

MBA
Executive
Programme

A company-funded
programme with the Royal
Melbourne Institute ofTechnology (RMIT)
achieved over a
3–5 year period

PARTICIPANTS
Hotel and Corporate
Senior Managers

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Excellence in Action

The pinnacle of our Learning and Development process is our
in-house Executive MBA programme, offered in conjunction
with the Royal Melbourne Institute of Technology (RMIT). Thisrigorous business development programme is available tosenior colleagues who are nominated by management andendorsed by our Group Chief Executive. The Group covers
tuition and travel expenses, as well as the time necessary forcolleagues to complete required coursework, whether throughonline learning modules or face-to-face residential programmes
at RMIT and other Mandarin Oriental hotels.

In 2013, the Group sponsored eleven colleagues in the MBA

The MBA programme has a lasting professional and personal
impact on its graduates, such as Jill Goh, Operations Manager,
Asia. Since completing her three-year MBA programme in2010, Jill has continued to grow within the company. “I’vegained valuable skills and insights that have helped propel mywork to higher levels of excellence. The MBA has broadened
my perspective and also given me a confidence boost. I feel
prepared for anything that comes my way”.

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

Jacqueline Moyse,
Mandarin Oriental’s
Head of Organisational
Development (center)with the Executive
MBA Class of 2013

AD VAN C I N G SU STAI N ABI L I T Y“It is an important strategy for Mandarin Oriental to develop
and promote from within wherever possible”, says Jacqueline
Moyse, Mandarin Oriental’s Head of Organisational
Development. “Our MBA programme strengthens our talentpipeline in the organisation, supporting the growth of oursenior managers by better equipping them for lifelong
learning and preparing them for more senior roles with theGroup in the future”.

programme and added a new course to the core curriculum
entitled “Corporate Social Responsibility and the Law”. As
part of the coursework, participants evaluated the Group’s
current sustainability programme and provided feedback on
ways to improve. Alex Hysbergue, Director of IT at Mandarin
Oriental, Hong Kong, is among the current MBA programmeparticipants, and he embraced the study of Mandarin Oriental’s
corporate responsibility efforts. “The assessment of oursustainability programme within our MBA coursework showedme how far we have come as a company and how much more
we can and should do. It also opened my eyes to the different
influences that stakeholders have on an organisation”.

D EL IVERIN G EXC EL L EN C E

Mandarin Oriental’s Executive MBA Programme

18

Sustainability Training

In order to operate our hotels moresustainably, we must empower ourcolleagues to make socially andenvironmentally sound decisions. We
believe that empowerment begins witheducation. In 2013, we fulfilled ourcommitment to launch a dedicatedSustainability Training Programme forall colleagues. The two-and-a-half hourcourse is designed to improve ourcolleagues’ knowledge of sustainability
issues and reinforce the value ofsustainable practices at Mandarin
Oriental. All colleagues will complete
the Sustainability Awareness Training
programme by June 2014, and it willthen become part of the mandatory
MOve In orientation programme for
new colleagues.
Through our sustainability training,colleagues gain a global perspectiveon environmental issues important
to Mandarin Oriental’s business anddiscuss issues of concern in their local
communities. To build on the global andlocal awareness achieved during thesession, colleagues leave the training

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3with an action plan to make a differencein the workplace, at home and in theirlocal communities. This commitment toaction is further supported by material
available in the sustainability section of
our company’s intranet, which includes
current and past sustainability reports
and best practice information uploaded
by fellow colleagues.
With greater awareness, colleagues are
getting involved and finding creative
ways to demonstrate their commitment
to ‘Doing More for a Sustainable
Future’. As an example, colleagues
at Mandarin Oriental, Kuala Lumpur
held a painting contest between
departments to create back-of-housemurals with a corporate responsibility
and environmental theme. All hotels
display a framed poster of theGroup’s sustainability commitments(available in eight languages) incolleague workspaces to promote ourcorporate responsibility vision andvalues. Initiatives such as these help
drive greater colleague engagement
and further our ability to achieve ourimportant sustainability goals.

Sustainability Training Pamphlet (above) is
designed to reinforce the Group’s Sustainability
guidelines and the commitment to ‘Doing More
for a Sustainable Future’.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201319

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

Sourcing Responsibly

Cleaners and Consumables

Through their ingredients,
manufacturing process, packaging,use and disposal, cleaners have aconsiderable impact on both theenvironment and human health.
At Mandarin Oriental, we fully
acknowledge the potential risks whenevaluating our products, and as such,
70% of our hotels have selected Ecolab
Aquanomic for use in their laundry andcleaning operations. Properties thatcurrently utilise Ecolab Aquanomic
products see reduced chemical usage,
as well as up to a 40% reduction inenergy and water use when compared
to traditional laundry operations.
These reductions are due in part tothe streamlined wash process andsubsequent lower water temperatures.
Housekeeping colleagues at several
Mandarin Oriental properties aremaking strides toward use of biodegradable chemicals over more
traditional cleaners. For example,

Mandarin Oriental, Hong Kong uses
Ecolab Aquanomic products for surface
cleaning. Whilst each hotel currently
selects cleaning products based on
individual needs, an overall approach tocleaners will be considered as part of alarger program in the near future.
As a start, in the Americas region,
we are delighted to partner withhospitality procurement service
company Avendra to help inleveraging buying power withkey suppliers of cleaners andconsumables, whilst being mindful ofthe environment and overall quality.
With a wide range of available
suppliers and products, Avendra islooking at ways to help us increase
the use of renewable, recyclable andeco-friendly products to support oursustainable sourcing goals.

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

Mandarin Oriental encourages each
hotel to leverage local and sustainablesuppliers for their products in orderto help protect the future availabilityof those goods. Through sustainablesourcing, we actively support andengage the communities in which
we operate. From housekeeping
to food and beverage, Mandarin
Oriental continually develops unique
opportunities for sustainable sourcing
in each aspect of its daily operations.
While we may not be able to source all
products locally, it is enriching to findsuppliers that bring local culture andflavours to our guests and help provide
employment in our communities.

20

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3“For us, quality isalways first, andthe sustainabilityof our suppliersis paramount to aconsistent, highquality product.”—Chef Richard Ekkebus

21

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Food & Beverage

At the two Michelin-starred Amber

restaurant at The Landmark Mandarin
Oriental, Hong Kong, 60% of fruits andvegetables served come from artisanal
farmers at local markets. In fact, Chef
Ekkebus works with a consortiumof farmers who practice sustainable
techniques and are committed to testing
their soils for heavy metals and reducing
the use of pesticides. All produce, as
well as many proteins, that are notavailable through the consortium aresourced from proximal suppliers withquality products and consistent supply.
For example, Chef Ekkebus began
sourcing sustainable line-caught wild
seafood from Japan, Australia and New

Zealand, rather than net harvested or
farm-raised fish.
At Mandarin Oriental Pudong, Shanghai,
Chef Ekkebus brings his dedication
to responsible sourcing to the newly
opened French restaurant, Fifty 8°
Grill. Working closely with sustainable
poultry and pig farmers, Chef Ekkebus
aims to replicate the success of the
farmers’ consortium in Hong Kong at
Mandarin Oriental Pudong, Shanghai.
Chef Ekkebus says, “For us, quality isalways first, and sustainability of our
suppliers is paramount to a consistent,
high-quality product”.

D EL IVERIN G EXC EL L EN C EAward-winning Chef Richard Ekkebus
helms the kitchens at The Landmark
Mandarin Oriental, Hong Kong and isalso Chef Consultant of Fifty 8° Grill at
one of the Group’s newest properties,
Mandarin Oriental Pudong, Shanghai.
The inspiration behind his innovative
dining concepts focuses on fresh, highquality ingredients, which he strives
to source as close to the hotels as
possible. According to Chef Ekkebus,
seasonality is critical in order to offer aquality product for all guests to enjoy.

Fifty 8º Grill at
Mandarin Oriental Pudong,ShanghaiAD VAN C I N G SU STAI N ABI L I T Y
C H A MP IO NIN G C OM M UN I TY

22

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Health and Wellness
As a leader in health and wellness,
Mandarin Oriental takes pride in its
ongoing commitment to promoting
a balanced lifestyle for guests
and colleagues alike. The Spas at
Mandarin Oriental offer awardwinning and highly personalised
treatments that are designed to
improve mind, body and spirit.
Each of our innovative dining
outlets strongly values the importanceof nutrition in the development ofrecipes and preparation of meals.
Moreover, we have taken steps
to provide our colleagues withsafe working environments andcomprehensive wellness programmesthat encourage healthy living.

Spa Therapies

The multi-award winning Spas at
Mandarin Oriental are havens forcontemplation and discovery. Guided
by our oriental heritage but influenced
by local cultural diversity, the Grouphas created distinctive concepts with aunique sense of place in every location.
We continually develop new holistic
experiences that go beyond simply
delivering treatments to tired bodies. In
2013, Mandarin Oriental introduced “CalmMind”, a 45-minute bespoke signature
treatment devised to address guests’desire for a simple and effective spa
experience that can be fitted into a busy
day—between meetings, during lunch

breaks or at the beginning or end of ademanding day. The experience begins
with a private therapist consultation todetermine the individual’s personal andcurrent state of well-being. Guests thenchoose an essential oil from the Group’s
signature product line, which contains
natural, non-toxic ingredients and isparaben free. Only a few drops of oil areused during the treatment, but the effects
are long-lasting. The massage treatment
starts at the base of the spine andcontinues slowly over the head, neck andshoulders using small manipulations androcking movements to reduce tension andease the mind. The results are soothing
and relaxing, leaving the body and mind
grounded and in perfect harmony.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201323

In all of our Food and Beverage
operations, nutrition is carefully
considered in the development ofrecipes and preparation of meals.
We believe the use of local, seasonaland organic ingredients enhances
taste and adds unique flavour tothe dining experience. In addition,
recipe development has evolved toreduce sugar, salts and fats wherever
possible. To better serve our guests
and colleagues with special dietaryneeds, we provide a wide range of meal
choices at our hotels, including vegan,halal, lower-fat and gluten-free.

At Mandarin Oriental, Hong Kong,
Sous Chef Robin Zavou worked closelywith The Spa to create the “Five
Elements Menu”. The menu is rooted
in Traditional Chinese Medicine (TCM)
and offers guests a healthy culinary
experience whilst maintaining theflavour and creativity of gourmet dishes.
Menu highlights include the “Awaken”
dish, which features a panzanella
salad with fresh tomatoes, cucumber,spinach and seared tuna to help
energise the body. For guests seeking
a detoxification regimen, the hotel alsooffers juice boosters to aid in digestive
balance and immunity.

Workplace Wellness

As an employer of choice, Mandarin
Oriental is committed to providing acaring and safe work environment
and encouraging a healthy lifestyle forall colleagues. Each year, the Groupdevelops new and creative initiatives tocontinually enhance colleague wellness.
For example, Mandarin Oriental, Boston
established a dedicated colleague
wellness room which provides a quiet
and relaxing area for expectant andnew mothers. For colleagues returning
to the workplace after maternity

leave, the wellness room allows themto gradually readjust to the regular
work routine. Additionally, the Group’s
properties in Shanghai, Bangkok andSingapore built recreation rooms in thecolleague residences. These wellness
areas provide comfortable resting
quarters, a small library and computerswith internet access for personal use.
To help further encourage a healthierlifestyle, our hotels in Sanya andWashington, D.C. enhanced theircolleague dining menus by introducing
more nutritious offerings. At the sametime, Mandarin Oriental, Miami, offers
health screenings and posture training,particularly for colleagues whose duties
may involve heavy lifting. In Paris and
San Francisco, the hotels’ fitness
instructors lead stretching sessions
for housekeeping staff before the startof shifts to build muscle strength andreduce workplace injury.
Finally, the Group’s commitment tohealth and wellness not only extends
to colleagues, but also to their families.
Mandarin Oriental has organised andsponsored numerous activities for its
hotels around the world, ranging fromfamily days at the park and local cycling
races to running clubs and yoga classes.

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

In 2013, Mandarin Oriental developed
a set of internal guidelines to support
the service of alternative or special
dietary meals. The initiative calls on
kitchen staff to ensure that necessary
and appropriate equipment is readily
available for any meal that requires
special preparation. For example,
gluten-free meals would require chefs
to use a separate knife and cuttingboard to avoid cross-contamination
with breads containing gluten. The
new guidelines are designed to help
ensure that we fully meet the needsof guests and colleagues with special
dietary considerations.

Hotel Initiatives

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

Nutrition

D EL IVERIN G EXC EL L EN C E

Vegan cuisine at
Mandarin Oriental, Sanya

24

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Safe, Sound & Sustainable
The welfare of our guests andcolleagues is of paramount importanceto everyone at Mandarin Oriental. Our
comprehensive health and safety efforts
are maintained under a proprietary
programme entitled “Safe, Sound &Sustainable”. Established in 2000, theprogramme helps our hotels comply
with stringent operational guidelines
related to fire, life, health, safety,
security and the environment, which
are based on recognised standards
and international best practices.

In 2013, we conducted the second yearof audits against new environmental
guidelines, which were added to theprogramme in 2012. The environmental
guidelines cover the managementof energy, emissions and water
consumption, as well as the generationand disposal of waste. The two-year
audit implementation schedule has
allowed hotels to adapt to the newrequirements before environmental
activities start contributing to the overall
audit performance score in 2014.

Each fully operational hotel is audited
annually to monitor their compliancewith Safe, Sound & Sustainableguidelines. The audits are conductedby an independent company, PWT
Environmental Consultancy, a UKbased consulting firm, and include
a verification of documentation
and records in place, as well as aphysical inspection of the facilities.
The annual audit process ensuresthat hotel management teams
are focused on health and safetyissues and prepared to manage
crisis and business interruptions.

An Evolving Programme

The Safe, Sound & Sustainableguidelines are continuously improved
upon and updated as methods
evolve and as new impacts fromhotel activities are identified. In
2013, we initiated a review of theFood & Beverage / HACCP section
to include guidelines for enhanced
food supplier auditing and externalcatering. One of the overall objectives
with the F&B / HACCP review is tostreamline operational processes
whilst maintaining the highest
levels of food safety. The review

will be completed in 2014 andamendments introduced in 2015.
To ensure all colleagues are educatedon the programme, Mandarin Oriental
also instituted new guidelines in2013 for managing Safe, Sound &Sustainable training across the Group.
In the past, programme training washandled by individual departments,
but this task is now managed more
efficiently and effectively by our
Learning and Development teams.

Our Performance:
Audit Results
Over the past 10 years, audit
performance has remained
stable, within 2% of theGroup’s target of 90%. In
2013, the Group’s overall
average audit score declinedby half a percentage pointto 88.3%, marginally lower
than the Group’s target.
Importantly, we changed our
audit format in 2009, increasing
the number of unannounced
audits to better reflect how ouroperations are run on a daily
basis. Hotels are eligible forunannounced audits four years
after opening, allowing ample time
to adapt to the programme. In
2013, 18 hotels (70% of all eligible
properties) received unannounced
audits, up from 12 hotels in2012. Despite the change, there
have been no significant impacts
on audit scores, indicating
consistency in our operations.
We will continue to expand thiseffort, and all eligible Mandarin
Oriental hotels will eventually
receive unannounced audits.

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Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

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

Food & Beverage

Fire Safety

Health and safety
related to Food andBeverage operations.

Inspection, testing
and maintenance of
all fire safety
related installations.

Based onthe accredited international
standard of Hazard Analysis
and Critical Control Point
standards (HACCP)

Based onthe internationally recognised
National Fire Protection
Association guidelines

Occupational
Health & Safety
Health and safety
topics in the workplace.
Based onthe Occupational Safety
and Health Administration(OSHA) standards of theUnited States government

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

Scope ofSafe, Sound& Sustainable
Programme

Environment

Health and Safety

Management of
the property’s
environmental impact.

Health and safety
topics related to guests.

Based oninternational
best practices

Based oninternational
best practices

Based onBritish and European
standards

Spa, Fitness &Wellness
Health and safety related toSpa, Fitness andWellness operations.
Based oninternational
best practices

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

Security
Security of guests,
colleagues and property.

D EL IVERIN G EXC EL L EN C E

Business Continuity
Planning &Risk Management

26

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Our Performance:
Occupational
Health & Safety
In keeping with Mandarin
Oriental’s commitment to provide
a safe work environment, allwork-related accidents andincidents are reported andthoroughly investigated to
identify the root cause and toinitiate corrective and preventive
measures. We track the numberof incidents and the incident
severity as measured by the
number of lost work hours.
In 2013, there were 2.70 incidents
per 100 colleagues resulting inlost time, a slight increase from2012. This rate increase wasdriven by additional lost-time
incidents reported in properties in
the Americas and Asia; however,despite the increase within thoseregions, the overall incident rate
Group-wide was significantly
below the United States Bureau
Leisure and Hospitality safety
rate of 3.90 incidents per 100
colleagues2. The incident rate of
our European hotels was above
the same industry average,
but decreased 8% between
2012 and 2013, to 4.20.
The incident severity rate,a measure of lost days per
incident, decreased 5% in2013 to 24.90 lost days per
incident per 100 colleagues.
Europe and the Americas
demonstrated decreasing trends,
while Asia increased slightly.
None of our hotels received asignificant Health and Safety
fine or notice of violation.
Please see the Appendix for
more detailed information.

Mandarin Oriental’s
Commitment to Improvement
Developed internally with the assistance of Peter and Michael Thomasof PWT, an external environmental consultancy group, Safe, Sound& Sustainable has been the framework for Mandarin Oriental’s
compliance and audit process for decades. The Safe, Sound &Sustainable programme is more extensive than general practice in thehospitality industry and was developed to fit the specific needs andculture of the Group.

“Mandarin Oriental HotelGroup is a company
that strives for continual
improvement. We have areputation as difficult auditors,
and we prefer to work withcompanies that are looking
for more from an audit thanticking off completed tasks.
Mandarin Oriental hotels
take our findings seriously
and always aim to implement
corrective actions quickly
and thoroughly”.
—Peter Thomas, PWT Environmental Consultancy

27

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Excellence in Action

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

The Golden Fan Award for Excellencein Sustainability was established in2011 to recognise environmental,social and community achievements
within Mandarin Oriental HotelGroup. As the 2013 Golden FanAward recipient, Mandarin Oriental,
Washington, D.C. clearly demonstrated
an ongoing commitment to do more
for a sustainable future. From reducing
energy consumption by over 13% todonating nearly 700 hundred pounds ofcanned goods to a local food drive, hotelcolleagues made a tremendous collective
effort to advance sustainability in 2013.
Among its many achievements, Mandarin
Oriental, Washington D.C. has sourced
100% of its electricity from wind power.
Since 2011, the hotel has been utilising
this cleaner form of renewable energy
harvested from local wind farms throughWashington Gas Energy Services(WGES) and its CleanSteps® WindPower
programme. The goal of this initiative
is to reduce carbon dioxide emissions,eliminate air pollution and ensure theeconomic and environmental benefits
help the local community. In 2013, thehotel saved 9.3 m kwH from “dirty”
sources and eliminated approximately
6.6 K metric tons of CO 2.

Group Development Director & President, The Americas Terry Stinson (far right) presents the2013 Golden Fan for Excellence in Sustainability to Mandarin Oriental, Washington D.C. General
Manager Adriaan Radder and team.

areas and applying a fresh coat of paint tothe building’s doors and stairwells.
Group Development Director & President,
The Americas and Group Sustainability
Champion Terry Stinson presented
Mandarin Oriental, Washington D.C. withthe 2013 Golden Fan Award at Mandarin
Oriental’s biennial marketing conferencein China. Mr Stinson noted, “More thanever before, it is crucial for us to takesteps to help improve the environment
and empower our local communities.
Mandarin Oriental, Washington D.C. has
fully embraced the Group’s commitment
to corporate responsibility values andhas far exceeded its goals and objectives
to do more for a sustainable future”.

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

In addition to its successful renewableenergy programme, Mandarin Oriental,
Washington D.C. was honoured with theGolden Fan Award for its dedication tocommunity engagement initiatives that are
truly making a difference. On 8 September
2013, hotel colleagues took to the streets
for the third annual FANtastic March.
The fun-filled 5K fundraiser event raised
nearly US$27,000 to support the Heartof America BuddyPack programme forstudents at W.B. Patterson Elementary
School. Furthermore, hotel colleagues
helped school staff prepare for the startof the academic year by cleaning storage

D EL IVERIN G EXC EL L EN C E

Golden Fan Award:
Mandarin Oriental, Washington D.C.

28

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Advancing
Sustainability“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 EttedguiGroup Chief Executive

30

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Advancing Sustainability
In the World Economic Forum’s 2013
Global Risk Perception survey, thefailure to address climate change andwater scarcity were among the world’s
top five risks in terms of impact1. As a
responsible company, Mandarin Oriental
strives to help mitigate such risks byembedding sustainability strategies into
our global business model.
This link can clearly be demonstrated
by our continuous efforts to reduceenergy consumption, which haveresulted in cost savings of US$28.2
million from 2007 to 2013. Over thesame period, we also experienced
a 23% increase in the electricity
rates across our portfolio. Without
strategies to reduce energy
consumption, these increases would
have significantly impacted the
profitability of several hotels.

Integrating sustainability practices into
our business also makes it easier tomanage current and future regulatory
requirements related to climate change,such as the levy of direct carbon taxes
on non-renewable energy sources,
as well as indirect market-based
mechanisms such as cap and tradelegislation. These direct and indirect
taxes, as well as increased energy rates,
will lead to an increase of operating
expenses. Changing climate patterns
can also cause an increased occurrenceof natural disasters and risk affecting
our infrastructure, our colleagues in theirlivelihoods, and our guests’ travel plans.
People and process are vital to ouroverall success. Our colleagues’
dedication and enthusiasm forour sustainability efforts makes
the difference; the environmental

achievements included in this report
would not be possible without theircommitment. We also believe thatwhat gets measured gets done. Goals
have been clearly set to ensure that
all of our colleagues are aware of ourprogress and can identify ways to help
us improve.
As reported last year, we haveestablished a 2020 vision withsignificant reduction goals based on a2007 baseline, and interim 2016 goals
to track our progress. In 2013, every
hotel was also provided with individual
short-term goals for the environmental
aspects of their operation, including
energy, emissions and water.
A full summary of our environmental
performance is included in the
Appendix of this report.

Our continuous efforts to reduce energy consumption have resulted in acost savings of US$28.2 million from 2007 to 2013.
Environmental Sustainability Goals
KPI

ENERGY INTENSITYEMISSION INTENSITYWASTE INTENSITYWATER INTENSITY

MJ / square metre

kg CO2e / square metre

kg of waste sent to landfill /Guest Night

Litre / Guest Night

Reduction of 15% by 2016
over 2007 levels

Reduction of 17.5% by 2016
over 2007 levels

Reduction of 10% by 2016
over 2012 levels

Reduction of 15% by 2016
over 2007 levels

ON-TRACK

ON-TRACK

OFF-TRACK

ON-TRACK

Reduction of 20% by 2020
over 2007 levels

Reduction of 25% by 2020
over 2007 levels

Reduction of 20% by 2020
over 2012 levels

Reduction of 20% by 2020
over 2007 levels

ON-TRACK

ON-TRACK

OFF-TRACK

ON-TRACK

Reduction of 13.4%

Reduction of 17.8%

Increase of 14.4%

Reduction of 13.2%

2016 Goals

2020 Vision

Current Status(to baseline)

31

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013RE

POOLS &

AS
SP

ON
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TIE
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HOUSINGUE

COLLEA
G
ITE

IES
LIT
CI

N

UNDRY FLAA

RIGATION& IR

L

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

ROOMS
EST
GU

CE FA
REN
CI
FE

B

T
QUE & CONNA

D EL IVERIN G EXC EL L EN C E

RANTS
AU
T
S

GAR
DE

We report on the use of energy and water, and the generation of waste andgreenhouse gas emissions, for activities taking place inside the boundaries of ourproperties as illustrated above. We are well aware of energy consuming activities thatare related to our operations but that occur outside the boundaries of our hotels. We
aim to gradually include further activities in the scope of our reporting as we progresson our sustainability journey. Information about the specific methodologies used formeasuring our environmental performance are included at the end of this section.

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

Environmental Scope32

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

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

Energy Auditing

As a Group, we introduced a systematic
approach to energy auditing in 2007.
This strategy was further enhanced in2012, when we included energy audits
under the “Safe, Sound & Sustainable”
programme, with guidelines based on
ASHRAE’s “Procedures for Commercial

Our Performance:
Absolute Energy
Consumption
Absolute energy consumption
for the Group totaled 1,284 TJ in
2013, a slight increase of 0.6%,
associated with a 3% increase intotal floor area. By implementing
energy efficiency measures, theGroup avoided 129 TJ of energy
consumption in 20132. The total
avoided consumption 2007
to 2013 was 616 TJ, whichtranslates to cost savings of
US$28.2 million.

Energy Audits”. The audits are adapted
to the particular requirements of each
hotel and are at times targeted to specificareas, such as chilled water or hot waterproduction. Since the strategy was
introduced six years ago, 88% of ourhotels have completed energy audits.

Retro-Commissioning

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

Technology and Innovation

While optimising the efficiency of
our systems and equipment, we willcontinue to use innovative technology
to reach our goals, balanced with
fundamentally sound engineering
practices. Chiller optimisation, which
is highlighted later in this report,
is one example of how significant
improvements can be achieved without

Absolute Energy Consumption
2007–2013 (TJ/year)
1500

1200

1,195

24

88

1,160

1,173

2008

2009

104
1,225

145

129

1,261

1,277

1,284

2011

2012

2013

127

900

600

300

0

2007

Absolute Energy Consumption

2010

Avoided Energy Consumption

Managing our electricity use will have a big impact on our emissions,as electricity makes up more than half of our energy consumption.

33

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

D EL IVERIN G EXC EL L EN C E

impacting the guest experience. In
other areas, we are continuing to
expand our demand-based guest
room control systems. In 2013, 67%of our hotels were equipped with
automatic systems to reduce energy
consumption when guestrooms wereunoccupied. As other technologies
mature, we anticipate similar rollouts
throughout our hotels.

Company Initiatives

Mandarin Oriental’s corporate offices, data
centre and 50% of hotels in the portfolio
were fully migrated in 2013. The remaining
hotels will be completed in 2014.

We are reducing
energy consumption
by migrating more
on-site servers to
the cloud.

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

IT services at Mandarin Oriental
are moving to the cloud. Email andsoftware applications are migratingfrom on-site servers to off-site hosted
computing platforms to reduce
on-site energy consumption, savecosts and improve overall efficiency.
Raju Daryanani, Vice President of IT
Infrastructure and Information Security
explains, “Cloud data centres are
more efficient than our own individual
servers. As a result of the cloud
migration completed at our data centre
in 2013, on-site energy consumption
has been reduced by 70%. We
anticipate that each of our hotels will
experience energy and cost savings,
and that our overall environmental
impact will be reduced”.

Energy Consumption by Type2013 (per cent)naturalgas
21%

diesel9%

heatedchilledwater/steam water
5%
4%

propane1%

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

electricity
60%

34

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Our Performance:
Energy Intensity
Energy intensity is a normalised
measure of energy consumption
per square metre of property.
This measure allows us
to evaluate our energy
consumption over time, since
the footprint of our company
continues to change. In 2013,
the energy intensity for theGroup decreased slightly to
1,640 MJ/m2/year. Thanks toenergy efficiency strategies,
our intensity has been steadilydecreasing since 2007.

Energy Intensity
2007–2013 (MJ/m2/year)

2000

1,894

1,836
1,710

1,679

1,687

1,677

1,640

2009

2010

2011

2012

2013

1500

1000

500

0

2007

2008

Thanks to efficiency strategies, our energy intensity
has been steadily decreasing since 2007.

35

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Sustainability in Action

Chilled water production for air conditioning is the single mostenergy-intense installation in most hotels. Indeed, in somecases, it can represent nearly a third of a hotel’s total electricity
consumption. For the past five years, Mandarin Oriental has useda well-defined process, as illustrated below, to help optimise
chiller efficiency at a number of our fully owned properties.

New Construction
1
DesignEfficient
System2
Select& Apply
Equipment

3
4
Automate
Addwith Proven Optimization
Algorithms
SoftwareStart with Sound Design Decisions

5
Measure,Verify &Manage6
Maintain

Optimize12
3
4Correct
Correct
Automate
Add
SystemEquipment with Proven Optimization
Deficiencies Deficiencies Algorithms
Software
Address Pre-existing Conditions

5
Measure,Verify &Manage6
Maintain

OptimizeDavid Whittlesea, Head of Engineering Design at Mandarin
Oriental Hotel Group, has helped to upgrade several existing
chiller installations, including at The Excelsior Hong Kong,which replaced its chillers under a performance contract in2009, and at Mandarin Oriental, Hong Kong, which replaced
air cooled chillers with water cooled chillers in 2011. Due

Consistently monitoring the chiller plants “Coefficient of
Performance” (COP) has been a key success factor. “Notknowing your COP is like driving a car without knowing how
far you’ll go on a tank of gas”, Whittlesea explains. “Operatinga chiller plant in the ‘excellent range’, let’s say a COP of 6.0,
compared to the ‘fair range’, or a COP of 4.0, can save up to
US$250,000 per year for one of our Hong Kong hotels”.
Showcasing an optimised chiller installation at our owned hotels
has clear benefits for Mandarin Oriental, Whittlesea continues.
“In addition to cost savings and lower environmental footprints
at our properties, we can readily demonstrate the value of our
implementation process—from design to measurement andverification—to our new development and owning partners”.
With such success, the Group views chiller optimisation asa key strategy for energy and emissions reductions, which
can be further deployed across the company. Additional
chiller optimisation projects are already underway at Mandarin
Oriental, Macau and Mandarin Oriental, Bangkok—and more tocome in the future.

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

Existing Buildings

to the upgrades, these two installations now perform at an“excellent” rating as defined by ASHRAE and in 2013, had
total electricity reductions ranging from 17–22% with annual
savings of US$1.3M. During its 2010 renovation, Mandarin
Oriental, Jakarta, also installed new chiller equipment to
optimise efficiency with great success.

D EL IVERIN G EXC EL L EN C E

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

Monitoring chiller operations at
Mandarin Oriental, Miami

36

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Reducing Emissions
By implementing energy efficiency
measures at our hotels, we are
steadily reducing our greenhousegas emissions. In 2013, 75% of ouremissions were related to electricity
consumption, which underscores theneed for continual conservation efforts.
Emissions vary widely across ourhotels as they are primarily dependent
upon the emission factors of theirregional utility providers.

Industry collaboration

Emissions reduction is a key focus
for the Group, and we’re proud tosupport the goals established by
the World Travel & Tourism Council(WTTC) to reduce CO2 emissions by
no less than 50% from 2005 levels by2035, with an interim target of 25%

reduction by 2020 3. Mandarin Oriental
also participates in the Hotel Carbon
Measurement Initiative (HCMI), led
by the WTTC and the International
Tourism Partnership, which launcheda standard methodology for the hotelindustry to calculate carbon emissions.
The HCMI’s common approach tocarbon measurement provides greater
clarity to guests and event planners
who aim to better understand theenvironmental impact of a guest stay.

New Strategies

To further reduce our carbon footprint,
we aim to implement new strategies
where financially feasible to assist inachieving our goals, such as clean
energy technologies, or in the purchaseof renewable energy certificates (RECs).

Purchasing RECs, where energy issourced either partially or fully fromrenewable energy sources, is one of
the most effective ways of reducing
greenhouse gas emissions. Currently,
Mandarin Oriental, Washington D.C.
is making use of RECs, and weforesee more hotels following suit in
the coming years.
We are also gradually replacing or
upgrading diesel-operated boilers with
LPG or natural gas-fired boilers, which
can reduce emissions by nearly 80%.
Over the last two years, we reduced
the number of diesel installations by
57%, and only three hotels continue
to use diesel-fuelled boilers. Diesel
will remain the primary fuel source forstand-by generators.

37

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

In 2013, absolute emissions
generated by the Groupamounted to 149,000 metrictons of CO2 equivalent. From2007 to 2013, our total avoided
emissions totalled 79,000 metrictons of CO2 equivalent4.

Absolute Greenhouse Gas Emissions
2007–2013 (thousand t CO2-e/year)
200

150

14

11

156

146

3
140

9
145

151

2007

2008

2009

2010

20

22

151

149

2012

2013

D EL IVERIN G EXC EL L EN C E

Our Performance:
Absolute Emissions

100

50

Absolute Greenhouse Gas Emissions

2011

Avoided Greenhouse Gas Emissions

From 2007 to 2013, our total avoided emissions
totalled 79,000 metric tons of CO 2 equivalent.
This is equivalent to taking 16,632 cars off the road 5.

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

0Greenhouse Gas Emissions by Type2013 (per cent)Scope 1 Emissions
15%

85%

Due to the nature of our business,
indirect emissions (Scope 2) makeup the largest component of ouremissions.

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

Scope 2 Emissions

Scope 1 emissions are composedof emissions from direct energy
sources, including natural gas, diesel
and propane. Scope 2 emissions are
the sum of emissions from indirectenergy sources, including electricity
generation6, chilled water7 and heatedwater/steam8.

38

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Our Performance:
Emission Intensity
Emissions intensity is a normalised
measure of greenhouse gas
emissions per square metre ofproperty. In 2013, the Group’s
emissions intensity decreased by
0.5% over the prior year to 190 kg
CO2 per square metre. Between
2007 and 2013, we reduced ouremission intensity by a total of
17.8%.

Greenhouse Gas Emission Intensity
2007–2013 (kg CO2-e/m2/year)
250

231

222

211

207

208

200

198

190

150

100

50

0

2007

2008

2009

2010

2011

2012

2013

Our emissions intensity ratio has gradually improved as aresult of our energy and emissions reduction strategies. Between 2007
and 2013, we reduced our emission intensity by a total of 17.8%
Fugitive Emissions

Fugitive emissions are emissions
that are unintentionally released
into the atmosphere. Fugitive
emissions typically occur from leaks
in refrigeration systems or whilehandling refrigerants. They includehydrofluorocarbons (HFCs) usedin refrigeration and air conditioning
equipment. We incorporated the
management of refrigerants into
the Safe, Sound & Sustainable
programme to provide a consistentglobal approach, and are making
good progress. Fugitive emissions in2013 equalled 5,525 tons of CO2equivalents, a reduction of 58% from2012. At four of our properties,
fugitive emissions are consideredsignificant, exceeding 5% of theiroverall greenhouse gas emissions.
We will continue our work to manage
these emissions in a more systematicway, focusing on the four properties
that have the greatest impact, in orderto improve our performance.

39

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

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

While our waste reduction programme
is in early stages, we are ready totake on the challenge of improving ourprocesses in order to meet our goals.

Our Performance:
Absolute Waste
Generation
The Group generated 11,016
metric tons of waste in 2013,of which 59% was disposed ofin landfills, 21% was recycled
or composted, and 20% sent
to incinerators9. The amount ofwaste recycled or composted
increased from 17% in 2012 to
21% in 2013.

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

Two years ago, we implemented new
Waste Management Guidelines aspart of the Safe, Sound & Sustainable
programme to develop a complete andconsistent measurement process andstrengthen our efforts. We’ve learned
some important lessons along the way.
Accurately measuring waste at hotels thatare part of larger mixed-use developments
has been challenging. Accurately
measuring waste in developing countries,
where the waste disposal network isunder developed, has also been verylabour intensive for our operations.

Despite these challenges, we’remaking progress. Internal waste audits
have proven to be useful exercises
in understanding “what” and “where”
waste is generated within the hotel.
We know that enhancements are
required to our waste measurements
in order to account for the high volumeof heavy waste, such as wet waste
and glass generated at our Food andBeverage operations. It has been
important to “think global—act local”
in order to adapt great concepts
to practical processes. Recycling
has provided unexpected revenues
in many locations, and this has
provided funding for other corporate
responsibility initiatives at our hotels.
Colleague engagement has proven
tremendously rewarding, as our hotel
teams have identified their own waste
reduction opportunities well beyond
expectations.

D EL IVERIN G EXC EL L EN C E

Reducing Waste

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

40

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Hotel Initiatives

As part of their waste reduction
efforts, the restaurants at Mandarin
Oriental, Miami implemented anenvironmentally friendly alternative toserving conventional bottled water. With
the help of a new water purification
system, the hotel’s local water source
is being transformed into high quality
still and sparkling water, which is thenserved to guests in reusable glass
bottles. Serving water in this way
lowers Mandarin Oriental, Miami’s
carbon footprint, since the water isbottled right on property, reducing thewaste associated with the manufacture,transport and disposal of conventionalbottled water. The system is in placeat all of the restaurants at Mandarin
Oriental, Miami and contributed to the
6% reduction in waste generated per
guest night between 2012 and 2013.
In an effort to incorporate green
landscape design and encourage
the composting of organic waste,
Mandarin Oriental, Jakarta installed
50 biopori holes on hotel grounds.
Biopori holes are installed inground to promote water infiltrationand soil health, as food waste orother organic wastes are added togenerate compost that can be used
to supplement landscaping in otherparts of the property.

In Germany, landfilling is not
permitted by law. Therefore,
Mandarin Oriental, Munich has
implemented a 100% reuse or
recycling program for all waste
generated at the hotel. This
programme requires that end-of-life
disposal is considered at time ofpurchase to ensure that, once waste
is generated, a suitable alternative tolandfilling is available for disposal.

Waste By Disposal Method
2013 (per cent)Incinerated
20%

Composted
3%

Recycled
18%

Landfilled
59%

Our Performance:
Waste Intensity
In 2013, 69% of our hotels
collected comprehensive waste
data, an improvement of 5%(62% in 2012). The data collection
process is audited annually under
the Safe, Sound & Sustainable
programme to ensure compliance.
Waste data collection was initiatedin 2012, and we refer to 3.59
kg waste sent to landfill/guest
night as our 2012 baseline year
measurement. In 2013, the Groupassessed 4.11 kg waste sent tolandfill/guest night, an increaseof 14.4% over the 2012 figures.
We attribute the increase to betterdata collection in the second
year of programme. Additional
data collection challenges are
anticipated for the hotels not yetreporting waste data.

41

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

Sustainability in Action

Mandarin Oriental, Barcelona discovered that most of its backoffice waste was generated by printing and copying. Indeed,
the hotel was generating 650,000 paper copies per year, ata cost of nearly 27,000 Euros in printer maintenance, parts,
toner and paper. So when the opportunity arose to replace
old printers and copiers, hotel colleagues sought replacement
options that were cost effective and environmentally friendly.
Vincent Studer, Resident Manager and hotel Corporate
Responsibility Champion, along with Daniel Fernandez, Directorof IT, led the charge to reduce printing volumes and costs. The
team evaluated several conventional printing technologies, butneeded a more sustainable approach to the problem.

The new system has raised colleague awareness and isencouraging behavioural change. Paper usage is now included
as a regular discussion point in the corporate responsibility
committee meetings at the hotel. “Colleagues are becoming
more aware and responsible when making copies”, notes
Studer. “They think before printing and are starting to compete
to reduce their usage”!
In less than one year with the new system in place, thehotel has reduced printer waste from 80 kilograms to less than
two kilograms in the same time period, and it has reduced tonerfrom 100 kilograms to less than 10 kilograms of solid ink andpackaging. The volume of copies is steadily decreasing, too.

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

As part of the solution, the team replaced all printers in the
hotel through a leasing programme and adopted Solid Inktechnology by Xerox for all high volume printers. Solid Ink
requires no cartridges, and since its packing is minimal, it
generates up to 90% less waste. The ink cubes are made of a
non-toxic, resin-based polymer ink similar to a crayon, which
are easy to handle, eliminate spills and leaks, and require lessstorage space.

On the operational side, the printers are leased with a “payas you go” plan, so the hotel is charged only for the number
and type of printouts generated. The plan features a built-in
maintenance programme, so no additional costs are incurred.
To track progress, the IT team set up printing accounts for each
hotel department, which was a useful step toward identifying
high volume functions. Printer defaults were also set to doublesided printing.

D EL IVERIN G EXC EL L EN C E

Pay-Per-Print at Mandarin Oriental, Barcelona

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

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Reducing our Water Consumption
As we are a luxury hospitality
company, water is essential to theservices we provide, whether inguestroom baths, spas and pools,
or in our back-of-house operations.
As a responsible company, we
understand the importance of clean,accessible water to human healthand to the economic viability of thecommunities where we operate.
As mentioned earlier, The World
Economic Forum identified watersupply crises among the mostsignificant global risks in 201310. To

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

As a Group, we will continue our efforts
to reduce water consumption in nonguest areas, and we believe strongly
that colleague awareness and training
has the most significant impact.
Municipal water supplies provide water
for all Mandarin Oriental hotels with the
exception of one property, which relies
partially on surface water. Municipal
supply accounts for 92.5% and surface
water 7.5% of our total water supply.

The Group increased absolute water consumption by
5% between 2007 and 2013, whilst the number of hotels included in
the calculation increased by 41% over the same period.
Absolute Water Consumption
2007–2013 (thousand m3/year)

86

2500
2,261
2000

119

211

2,028
1,873

219

113

99

2,225

2,224

2011

2012

2,377

2,001

1500

1000

500

0

2007

2008

2009

Absolute Water Consumption

2010

Avoided Water Consumption

2013

Our Performance:
Absolute Water
Consumption
In 2013, the Group’s
absolute water consumption
including irrigation, cooling
towers, swimming pools andguestrooms, was 2,377,000
cubic metres 11. The Group
increased absolute water
consumption by 5% between
2007 and 2013, whilst the
number of hotels included in
the calculation increased by
41% over the same period.
Implementing water efficiency
projects resulted in avoiding theuse of 86,000 cubic metres ofwater at our properties in 2013.

43

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

To measure our water
performance over time andaccount for company growth,
we utilise water consumption
per guest night as our key
performance indicator. Though
not all water is consumed directlyby the guest, water consumption
is indirectly tied to guest
nights through back-of-house
operations. In 2013, the Group’s
average water use reduction was
13.2% over 2007 levels, to ourlowest consumption per guest
night ever.

Water Intensity
2007–2013 (litres/guest night)

1000

988

970

971
885

907

901

857

800

D EL IVERIN G EXC EL L EN C E

Our Performance:
Water Intensity

600

400

200

2007

2008

2009

2010

2011

2012

2013

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

0

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

44

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Championing
Community

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

46

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3Championing Community
As a leader in luxury hospitality, Mandarin Oriental encourages each of its hotels to discover impactful ways to interact
with their communities. Through outreach programmes and non-profit partnerships, we call on our colleagues to develop
long, meaningful relationships with local organisations. We strongly believe that acting with responsibility involves notjust our colleagues or the impact we have on the environment, but also making a difference in the communities inwhich we operate. As such, we participate in charitable causes ranging from cultural heritage preservation and poverty
eradication to environmental protection and disaster relief.

Cultural Heritage
At Mandarin Oriental, we take pridein our Asian heritage and recognise
the importance of artistic and culturalpreservation to ensure continued
enjoyment for future generations.
A classic, elegant and meaningful
symbol of Oriental culture, the fan is an
iconic emblem for Mandarin Oriental’s
identity. In addition to our Group logo,
every Mandarin Oriental hotel has its
own unique fan which reflects each
property’s local charm.
In keeping with this distinct tradition,
Mandarin Oriental Pudong, Shanghai

selected a century-old Chinese fan tocelebrate its opening in April 2013. The
antique fan is believed to have been
made in China’s Canton province fora European collector during the 19th
century, thus symbolising Shanghai’s
own unique heritage as a trading port
connecting the East and West. The hotel
fan features black lacquered ribbing,finely etched with gold. The front of the
fan depicts a classic courtyard garden
scene, whilst the reverse side features
three large vignettes and four small
framed animal portraits surrounded byfloral images and colourful borders.

Mandarin Oriental, Barcelona
commissioned award-winning Spanish
designer Patricia Urquiola to create
its signature fan. As the designer ofthe hotel’s interior décor, Urquiola
incorporated similar elements in the fan
which consists of beautifully decorated
perforated leafs emulating a mesh or
cut leather effect. The artwork captures
the spirit of the hotel’s architecture
and combines the elegance of Asianinspired fans with the character of
traditional fans from Spain.

Mandarin Oriental Pudong, Shanghai selected a
century-old Chinese fan to celebrate its opening
in April 2013 (far left). Mandarin Oriental,
Barcelona commissioned Spanish designer
Patricia Urquiola to create its signature fan in2009 (bottom).

47

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013“For a performing artist like me, theMandarin Oriental ACC Fellowship
was a wonderful opportunity to gain
new perspective on my own cultural
traditions. Seeing so many performers
from all over the world during my
US tour and ADF residency has
definitely enriched my choreography
and artistic direction. It was thrillingto present and share Lanna culture
to completely new audiences in
America. I’m excited for what the
future holds, and very grateful to the
ACC and Mandarin Oriental for thisincredible experience”.

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

PHOTOGRAP H BY COUR TESY OF AS IA N CU LT URAL COUN CIL

In 2013, Mr. Ronnarong Khampha(“Ong”), a Lanna dancer and achoreographer from Chiang Mai,

Throughout his residency at ADF,
Ronnarong worked on an original
work, “My Name is Ong”, which hepresented and performed during
the International Choreographers
Showcase on July 18 at Duke
University’s Page Auditorium. The

work was an impressive piece
performed with grace and sincerity
and it touched audience memberswith its eloquence. On 28 July, Ong
flew to New York where he spent thenext two months taking classes andseeing a wide range of performances
throughout the city.

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

As a global brand with strong rootsin our Oriental heritage, Mandarin
Oriental values cultural traditions andavidly supports the arts. We’re proud
to partner with organisations suchas the Asian Cultural Council (ACC),
which is dedicated to transformative
cultural exchange by awarding grants
to artists, scholars and organisations
for creative work and study in the
United States and Asia. In 2005,
Mandarin Oriental established a
dedicated fellowship with the ACC for
the preservation of indigenous arts,
cultures and traditions of Asia.

Thailand, was the ACC granteeof Mandarin Oriental Fellowshipaward. Ong has developed his own
performance style using traditional
Lanna dance and contemporary
aesthetics and recently ventured
into musical performance. The fourmonth Mandarin Oriental fellowshipallowed Ong the opportunity totravel in the US and attend theAmerican Dance Festival (ADF),
International Choreographers
Residency Programme in Durham,
North Carolina, where he joined ADF’s
vibrant community of 415 artists andstudents from 24 countries.

D EL IVERIN G EXC EL L EN C E

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

Mr. Ronnarong Khampha(“Ong”), a Lanna dancer and achoreographer from Thailand.

48

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3Community Programmes
Mandarin Oriental hotels contribute to their local communities with more than philanthropic support. Our colleagues areencouraged to participate directly, whether through volunteering, fundraising or coordinating events for local charitablecauses. This section highlights many of the important community initiatives from our hotel colleagues, who are helping tobuild a brighter future in their communities.

Mandarin Oriental Teams
Up with MINDSET fora ‘Fun Day’ in Hong
Kong In November
2013, Mandarin Oriental
colleagues in Hong Kong
participated in the annual
MINDSET Fun Day, an
event designed to raiseawareness on mental
health and to promote
the value of social
inclusion. MINDSET isa Hong Kong-basedorganisation createdin 2002 by Jardine
Matheson, the parent
company of Mandarin
Oriental Hotel Group. The
organisation provides
direct assistance forindividuals and families
facing issues with mental
health. Event participants
took part in fun-filled
games highlighting
the importance of
teamwork. At the closeof the event, Mandarin
Oriental’s Chief Marketing
Officer and MINDSET
Steering Committee
member Michael Hobsonpresented prizes to the
top three teams.

Mandarin Oriental, Miami Hosts Softball Tournament to Support
Local Youth Centre

Mandarin Oriental, Miami hosted a softball tournament in April 2013 to raise
funds for a new computer lab at the Overtown Youth Centre. Located near
Downtown Miami, the Overtown Youth Centre aims to inspire and empower
youth through enrichment services and social programmes, which include
academic enhancement, physical fitness, health care and nutrition, creativearts and family-oriented activities. Nearly 100 hotel colleagues and their families
participated in the community event, which also included seven other area
hotels. The softball tournament raised nearly US$9,000, resulting in ten newcomputers for the Overtown Youth Centre.

Mandarin Oriental, Sanya – Bright Connections

Founded in 2004, The Bright Connection Centre in Sanya, China has beena haven for children with disabilities and provides them with much needed
physical and mental care. For several years, Mandarin Oriental, Sanya has beena strong supporter of The Bright Connection Centre and its annual Children’sDay. Twenty-five Mandarin Oriental colleagues volunteer periodically throughout
the year, and five colleagues volunteer regularly, doing laundry and cleaning theCentre, as well as feeding, bathing, and reading stories to the children.
In celebration of Children’s Day 2013, Mandarin Oriental, Sanya hosted a
special children’s performance as well as an art auction to raise money for theCentre’s ongoing efforts. To showcase the wonderful work by the organisation
throughout the years, the hotel created a documentary film on the history of
The Bright Connection Centre, which debuted on Children’s Day. The film waslater shared on the Chinese social media site, Sina Weibo, which increased
awareness about The Bright Connection Centre and drew donations fromaround the world.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201349

Community in Action

In 2013, Mrs Hyndman launched the FANtastic Fundraiser,
a 10k run/walk to support Mercy Centre, a non-profit
organisation helping disadvantaged children and theirfamilies in Bangkok. Determined to make a change in her
community, Mrs Hyndman set an ambitious goal to help
raise THB1 million for this charitable and worthy cause.

In preparation for the FANtastic 10k run/walk, each department

In the end, the hotel colleagues raised THB1.6 million(US$54,000) for the Mercy Centre, which far surpassed theoriginal monetary goal.
As Mrs Hyndman noted, “It was a tremendous sight tobehold hundreds of my colleagues, friends and their families
make strides to help create a positive impact for needy
children in our community. The inspired effort illustrates our
mission that together we truly can do more for a sustainable
future. It is a day I will never forget”.

Colleagues and theirfamilies warm up in
Lumphini Park forthe 2013 Fantastic
Fundraiser in Bangkok.

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

Since 1973, Mercy Centre has served Klong Toey and otherimpoverished areas in Bangkok by building and operating
schools, improving family health and welfare, protecting
street children’s rights, combating AIDS, and providing
shelters for orphans.

participated in friendly and creative campaigns—from bakesales to flea markets—to reach their fundraising goal. On 21
September 2013, 700 colleagues and their families descended
on Lumphini Park in a sea of orange FANtastic Fundraiser shirts,
with the Governor of Bangkok, Mr Sukhumbhand Paribatra,presiding over the event. Beaming with a spirit of fun andexcitement, participants crossed the finish line and later enjoyeda barbeque and family-friendly activities in the park.

D EL IVERIN G EXC EL L EN C E

When it comes to making a positive change in the lives of
local children and their families, there is no stopping Mrs
Amanda Hyndman, General Manager of Mandarin Oriental,
Bangkok, and her team of dedicated colleagues.

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

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M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Mandarin Oriental andClean the World Since
2010, Mandarin Oriental
has partnered with
non-profit organisation
Clean the World to help
recycle soap and bottled
amenities for distribution
to children and families
worldwide. In 2013, Clean
the World expanded
beyond North America
by initiating operationsin Hong Kong and
Macau. After some early
operational challenges,
Clean the World is now
expanding throughout theregion. Mandarin Oriental
remains committed to theorganisation’s mission: torecycle soap and bathroom
amenity products for
distribution to impoverishedcommunities in an effort
to reduce hygiene-related
illnesses and death.
In 2013, nearly five tonsof waste soap and bottled
amenities were collectedfrom eight Mandarin
Oriental hotels—Boston,Las Vegas, Macau, Miami,
New York, San Francisco,
Washington, D.C. and
The Landmark Mandarin
Oriental, Hong Kong. This
combined effort resulted
in more than 25,000 barsof recycled soap bars and
9,500 bottles of liquid soapdelivered to people in needaround the world.

Mandarin Oriental, Manila Aids in Typhoon Haiyan Relief Efforts
In response to the aftermath of Typhoon Haiyan, Mandarin Oriental, Manila
launched a task force to provide assistance in the rebuilding efforts following
the devastating storm. General Manager Torsten van Dullemen led a contingentof hotel colleagues on a 16-day volunteer effort at Villamor Airbase in Manila,
which served as a processing area for typhoon evacuees by the Philippine
Department of Social Welfare. Hotel colleagues also volunteered at thePhilippine Red Cross (Makati Chapter) to sort and package donations fordelivery to those affected by the storm. In addition, colleagues and guests
alike collected money, clothing, non-perishable food items and housewares forvictims through the Philippine Red Cross. In total, the hotel raised US$5,000 for
the Typhoon Haiyan relief efforts.

Man darin Orien t al H otel Group Sustainab ility Rep or t 201351

Community in Action

Founded in 2010, Walking With The Wounded (WWTW)
is an organisation that raises funds to assist wounded
servicemen and women returning home from the military.
As part of its mission, WWTW provides veterans withaccess to education and training programmes in order tohelp them secure long term employment.

The hotel’s Director of Communications Sarah Cairns says,“We are dedicated to making a positive difference in ourcommunities. Our involvement with WWTW allows us tocreate awareness of the tremendous sacrifice made bymembers of the armed forces and help those woundedin action achieve the necessary skills and confidence torebuild their lives”.

Mandarin Oriental HydePark, London General
Manager Anthony McHale(right) with WWTW
Founder, Ed Parker andpatron HRH Prince HarryAD VAN C I N G SU STAI N ABI L I T Y

As the chosen charity of Mandarin Oriental Hyde Park, London,
the hotel has collaborated on a variety of charitable events
to raise awareness for the cause. In 2013, the hotel worked
closely on the organisation’s South Pole Allied Challenge, inwhich three teams of servicemen and women embarked on an
expedition to the South Pole. To help promote the launch of
the challenge, the hotel hosted a press event to introduce theexpedition teams, which were represented by the United States,
the British Commonwealth and the United Kingdom, whose
team leader was WWTW patron HRH Prince Harry. In addition,
Mandarin Oriental Hyde Park, London participated in WWTW’s
Spring Ball to help raise money for the South Pole Allied
Challenge and held a post-expedition reception in which HRH
Prince Harry shared his inspirational journey alongside his fellow

team members. With the help of the hotel’s restaurants, Bar
Boulud and Dinner By Heston Blumenthal Restaurant, a total of£5,000 was raised to support WWTW efforts.

D EL IVERIN G EXC EL L EN C E

Walking with the WoundedC H A MP IO NIN G C OM M UN I TY

52

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Mandarin Oriental, Las
Vegas Helps Empower the
Local Community ‘HELP
of Southern Nevada’ isa non-profit organisation
devoted to assisting families
and individuals attain selfsufficiency through direct
services, training andreferrals. From 28 November
to 7 December, hotelcolleagues at Mandarin
Oriental, Las Vegas weredelighted to participate in
HELP’s annual toy drive andfundraising event. The hotel
raised a total of US$11,902,
which included an additional
grant from Mandarin Oriental
Hotel Group. In addition
to the cash donation, 50
bicycles were also donatedto the organisation.

Mandarin Oriental, New York Volunteers with ‘God’s Love We
Deliver’ On 7 November 2013, colleagues from Mandarin Oriental, NewYork volunteered with ‘God’s Love We Deliver’, a non-profit organisation
dedicated to improving the health and well-being of individuals living withterminal sickness. In addition, the organisation provides nutrition educationand counselling programmes around the tri-state area. Seven hotel colleagues
helped prepare and pack meals in Brooklyn, New York, for local men, womenand children living with HIV/AIDS, cancer and other serious illnesses.

Mandarin Oriental, Boston Pays Tribute to the 2013 Boston Marathon For
the past five years, Mandarin Oriental, Boston has supported Massachusetts
General Hospital and its participation in the annual Boston Marathon. Each year,
the hospital’s running team raises funds for their children’s unit and towards
cancer research. In the wake of the tragic bombing at the 2013 Marathon,
Mandarin Oriental, Boston and Massachusetts General Hospital rallied the local
community to support marathon runners and hosted a special recognition eventat the hotel for the hospital’s marathon team. The event was made possible bydonations from the hotel and a grant from Mandarin Oriental Hotel Group.

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

thousands of volunteers each year to take part in the Hong Kong Clean-up
Challenge. In 2013, 15 colleagues from The Landmark Mandarin Oriental,
Hong Kong spent the day at Stanley Beach collecting plastic bottles anddebris along the shore. The Hong Kong Clean-up Challenge took place from21 September to 1 November drawing more than 45,000 participants andcollected a total over 1.2 million kilograms of trash.

AD VAN C I N G SU STAI N ABI L I T Y
C H A MP IO NIN G C OM M UN I TY

Mandarin Oriental, Geneva and Orchestre de laSuisse Romande Founded in 1938, The Orchestre
de la Suisse Romande (OSR, or Orchestra ofFrench-speaking Switzerland) is a symphonyorchestra based in Geneva, Switzerland. The
orchestra’s objective is to encourage new anddeveloping artists and help them gain experienceand exposure in the music field. In 2013, Mandarin
Oriental, Geneva supported the orchestra’s largest
event, The Concert de l’An. In addition, the hotel
hosted an after-concert celebration and fundraising
event for the orchestra.

Mandarin Oriental,
Tokyo and The Ecocap
Movement Since 2009,
Mandarin Oriental, Tokyo
has been an active
supporter of The Ecocap
Movement, a non-profit
organisation that raises
funds for the Japan
Committee for Vaccines
for the World’s Children(JCV) through therecycling of bottle caps.
In 2013, colleagues at
Mandarin Oriental, Tokyo
collected more than 100
kilograms of bottle caps
which provided muchneeded polio vaccines
for nearly 70 children.
Since the beginning of
its partnership with JCV,
Mandarin Oriental, Tokyo
has recycled bottle
caps to vaccinate morethan 400 children indeveloping countries.

D EL IVERIN G EXC EL L EN C E

The Landmark Mandarin Oriental, Hong Kong Participates in
Annual Beach Clean-up Stanley Beach in Hong Kong attracts tens of

53

54

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

FUTURE
DIRECTIONS
The more we learn about sustainability, the more we realisethat we have just commenced our journey. We are obviously
encouraged by our environmental achievements over the past few
years and it is truly inspiring to see our colleagues’ commitment tocontinuous improvement.
We will maintain our systematic approach to environmental
management, including our key strategies and the development of
tailored programmes to improve in areas of concern. During our
initial journey, our colleagues’ dedication to detail and quality has
proven invaluable. We believe we can do more to develop theirknowledge and understanding of the wider aspects of sustainability.
We also recognise that we must strengthen our stakeholder
engagement, gaining a better understanding of the expectationsof our guests and other stakeholders. Such feedback supports ouron-going efforts to improve our performance and to provide moretransparent communication. If you’d like to share your views on
our sustainability progress and on this report, please contact our
corporate responsibility team at sustainability@mohg.com.

55

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

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

MANDARIN ORIENTAL, JAKARTA
Top 5 Green Hotel in Indonesia by the
National Green Hotel Awards 2013
Ministry of Tourism and Creative Economy
Republic of Indonesia

MANDARIN ORIENTAL, GUANGZHOUGreen Food Certificate

MANDARIN ORIENTAL, KUALA LUMPUR
Green Award 2013-2015
Malaysian Ministry of Tourism
MANDARIN ORIENTAL, MIAMI
Palm Award
Florida Green Lodging Program
MANDARIN ORIENTAL, SANYA
Five Gold Leaf Grade “China Green Hotel”
National Green Hotel Committee and China Association
Only eight hotels in Hainan received this award for
2010–2014, which is awarded for a hotel’s priorities
on environmental conservation, green programmes,
food safety and hygiene, and energy efficiency in its
longstanding commitment to the environment.
MANDARIN ORIENTAL, WASHINGTON D.C.
Award for Community Service
2013 Stars of the Industry Awards
Hotel Association of Washington D.C.
Awarded for programmes that demonstrate thatthe individual property is responsive to the local
community. Examples include campaigns to benefit
local or national service organisations or charities,
service to any part of the community througha special project, and joint undertakings with
community groups for the benefit of the area.

MANDARIN ORIENTAL, KUALA LUMPUR
ISO 14001
Certified since December 2003
MANDARIN ORIENTAL, LAS VEGASGOLD LEED Certified
LEED Gold Certification after third-party
verification of the buildings’ green design
and performance in multiple categories.
MANDARIN ORIENTAL, PARISHQE Certified
First hotel to get the operational HQE certification.
The certification builds on 14 criteria of eco-design,
eco-management, comfort and health.
THE EXCELSIOR, HONG KONG
ISO 22000, certified since December 2012
HACCP Certificate
MANDARIN ORIENTAL, TOKYO
Together with the Mitsui Nihonbashi Tower, arecurrently in the “Top 30 Low Carbon Buildings in Tokyo”
Certification awarded in April 2011 to buildings withleast energy consumption. Items were checked inrelation to the energy performance, operation andmanagement of the facilities and building.

A P P EN DI C ES

Sustainability Awards
and Certifications

56

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

GRI Index
KEY

FULL COVERAGE

INDICATORPAR TIAL COVERAGEDESCRIPTIONSTATUS

LOCATION

1.1

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

Introduction (p. 4)

2.1

Name of the organisation.

Introduction (p. 3)

2.2

Primary brands, products, and/or services.

Introduction (p. 3)

2.3

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

Introduction (p. 3)

2.4

Location of organisation’s headquarters.

Introduction (p. 3)

2.5

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

Introduction (p. 3)

2.6

Nature of ownership and legal form.

Introduction (p. 3)

2.7

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

Introduction (p. 2,3)

2.8

Scale of the reporting organisation.

Introduction (p. 3)

2.9

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

Introduction (p. 5)

2.10

Awards received in the reporting period.

Appendix (p. 55)

3.1

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

Introduction (p. 5)

3.2

Date of most recent previous report (if any).

Introduction (p. 5)

3.3

Reporting cycle.

3.4

Contact point for questions regarding the report or its contents.

3.5

Process for defining report content.

Introduction (p. 5)

3.6

Boundary of the report.

Introduction (p. 5)

3.7

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

Introduction (p. 5)

3.8

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

3.9

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

Introduction (p. 5)

3.10

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

Introduction (p. 5)

3.11

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

Introduction (p. 5)

3.12

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

GRI Index (p. 56)

3.13

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

Introduction (p. 5)

4.1

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

Annual Financial Report(p. 87–91)

4.2

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

Annual Financial Report(p. 87)

4.3

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

Annual Financial Report(p. 87)

4.4

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

Annual Financial Report(p. 92)

4.6

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

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

4.9

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

4.14

List of stakeholder groups engaged by the organisation.

Introduction (p. 7)

4.15

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

Introduction (p. 7)

Introduction (p. 5)
Future Directions (p. 54)

Annual Financial Report(p. 36), Appendix (p. 58)

Annual Financial Report (p. 89)
Introduction (p. 6)

Annual Financial Report(p. 91)

57

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

FULL C OVERAGE

INDICATORPAR TIAL COVERAGEDESCRIPTIONSTATUS

LOCATION

EC1

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

EC2

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

Advancing Sustainability(p. 30)EC3Coverage of the organisation’s defined benefit plan obligations.

Annual Financial Report(p. 41), Delivering
Excellence (p. 15)

EC4

Significant financial assistance received from government.

EC7

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

EN3

Direct energy consumption by primary energy source.

Advancing Sustainability(p. 32–33)

EN4

Indirect energy consumption by primary source.

Advancing Sustainability(p. 32–33)

EN5

Energy saved due to conservation and efficiency improvements.

Advancing Sustainability(p. 32–34)

EN6

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

Advancing Sustainability(p. 36)

EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

Advancing Sustainability(p. 32)

EN8

Total water withdrawal by source.

Appendix (p. 62)

EN16

Total direct and indirect greenhouse gas emissions by weight.

Appendix (p. 62)

EN18

Initiatives to reduce greenhouse gas emissions and reductions achieved.

EN22

Total weight of waste by type and disposal method.

EN26

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

LA1

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

Appendix (p. 59)

LA2

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

Appendix (p. 60)

LA3

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

LA7

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

LA11

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

Delivering Excellence (p. 16)

LA12

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

Delivering Excellence (p. 16)

LA13

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

Delivering Excellence (p. 15)

LA15Return to work and retention rates after parental leave, by gender.

Delivering Excellence (p.15)

HR3

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

Delivering Excellence (p. 16)

HR8

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

Delivering Excellence (p. 16)

SO8

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

Delivering Excellence (p. 26)

PR1

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

Delivering Excellence (p. 24)

PR5

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

Delivering Excellence (p. 13)

Appendix (p. 58)

Appendix (p. 58)
Delivering Excellence (p. 15)

Advancing Sustainability(p. 36)
Appendix (p. 62)
Advancing Sustainability(p. 33)

Delivering Excellence (p. 15)
Appendix (p. 61)

A P P EN DI C ES

KEY

58

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

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

Combined Total Revenue

2011

2012

2013

1196.41283.31360.8

EBITDA 2

161.2

172.6.6

208.7

Direct Value Generated (Revenue)

614.2

648.3

668.6

1

Cost of sales

377.3

415.2

408.4

3

225.6

244.5

253.4

Payments to providers of capital (dividends & financing)

61.8

71.0

86.0

- Dividends paid

49.8

59.9

70.2

Employee wages & benefits- Financing

12

11.1

15.8

Payments to governments 4 (including taxes)

18.7

17.3

19.8

-

-

-

Community Investments 5

 ombined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate and managed hotels
C
EBITDA of subsidiaries plus the Group’s share of EBITDA of associates, both 2011 and 2012 were restated
Both 2011 and 2012 were restated4
No governments are significant stakeholders in the shares of the Group, both 2011 and 2012 were restated5
Not yet tracked
1
2
3

59

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

TOTAL WORKFORCE

MALE

%

FEMALE%TOTAL

By Region

6,658

54%

5,509

46%

12,095

Asia

4,081

56%

3,255

44%

7,336

61%

Europe

954

55%

789

45%

1,743

14%

The Americas

1,501

52%

1,372

48%

2,873

24%

50

35%

93

65%

143

1%

Full-time

6,113

56%

4,839

44%

10,95291%

Part-time

139

33%

282

67%

421

3%

Casual

334

46%

388

54%

722

6%

Line Staff

4,821

54%

4,033

46%

8,854

73%

Management

1,450

56%

1,159

44%

2,609

22%

Executive

172

63%

102

37%

274

2%

Other (Casual)

143

40%

215

60%

358

3%

Under 30

2,179

50%

2,171

50%

4,350

36%

30 to 50

3,417

56%

2,632

44%

6,049

50%

Over 50

990

58%

706

42%

1,696

14%

4,178

55%

3,484

45%

7,662

63%

Europe

950

56%

755

44%

1,705

14%

North America

1,011

53%

887

47%

1,898

16%

South America

237

51%

227

49%

464

4%

Africa

100

62%

61

38%

161

1%

Oceania

26

65%

14

35%

40

1%

84

51%

81

49%

165

1%

MALE

%

FEMALE

%

TOTAL

%

Corporate%

By Employment Contract

By Colleague Category

By Age Group

By Nationality
Asia

Other
EXECUTIVE TEAM & BOARD OF DIRECTORS 1

By Age Group
Under 30

-

-

-

-

-

-

30 to 50

5

100%

0

0%

5

36%

Over 50

7

78%

2

22%

9

64%

Europe

9

90%

1

10%

10

72%

North America

2

67%

1

33%

3

21%

Oceania

1

100%

0

0%

1

7%

By Nationality

1

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

A P P EN DI C ES

Total Workforce

60

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Turnover
NEW EMPLOYEES

MALE

%

FEMALE%TOTAL% OF TOTAL

Employees by Age Group

1,739

54.0%

1,509

46.0%

3,248

26.9%

Under 30

1,048

51.0%

994

49.0%

2,042

62.9%

30 to 50

624

58.0%

452

42.0%

1,076

33.1%

67

52.0%

63

48.0%

130

4.0%

Employees by Region

Over 50

1,739

54.0%

1,509

46.0%

3,248

26.9%

Asia

991

56.0%

775

44.0%

1,766

54.4%

Europe

433

52.0%

396

48.0%

829

25.5%

The Americas

311

49.0%

326

51.0%

637

19.6%

Corporate

4

25.0%

12

75.0%

16

0.5%
% OF TOTALTOTAL TURNOVER

MALE

%

FEMALE%

TOTAL

Separations by Age Group

1,827

54.0%

1,581

46.0%

3,408

Under 30

925

52.0%

852

48.0%

1,777

52.1%

30 to 50

775

55.0%

625

45.0%

1,400

41.1%

Over 50

127

55.0%

104

45.0%

231

6.8%

Separations by Region

1,827

54.0%

1,581

46.0%

3,408

Asia

1,106

55.0%

904

45.0%

2,010

59.0%

Europe

409

55.0%

332

45.0%

741

21.7%

The Americas

305

48.0%

333

52.0%

638

18.7%

Corporate

7

37.0%

12

63.0%

19

0.6%

Turnover Rate by Age Group

27.7%

28.7%

28.2%

Under 30

42.5%

39.2%

40.9%

30 to 50

22.7%

23.7%

23.1%

Over 50

12.8%

14.7%

13.6%

27.1%

27.8%

27.4%

Turnover Rate by Region
Asia
Europe

42.9%

42.1%

42.5%

The Americas

20.3%

24.3%

22.2%

Corporate

14.0%

12.9%

13.3%

61

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

PERFORMANCE INDICATORUNITREGION

2009

2010

2011

2012

2013

90.0

89.3

90.3

89.8

88.3

3.21

2.73

2.90

2.46

2.70

Safe Sound & Sustainable
Audit Results% Compliance

Lost Time Incident Rate

Lost time Incidents /100 employees

Lost Time Incident Severity Rate

Severity of incidents /100 employees

ALL
Asia

2.99

2.86

3.04

2.40

2.83

Europe

4.20

2.27

3.91

4.58

4.20

The Americas

3.46

2.56

1.90

1.16

1.82

ALL

25.25

19.49

24.27

24.59

24.20

Asia

22.44

17.62

23.54

23.05

27.50

Europe

45.87

29.18

36.37

42.49

40.42

The Americas

24.83

20.40

20.57

16.96

11.38

A P P EN DI C ES

Health & Safety Incidents: Audit Results

62

M a n da r in Or ie n ta l H ote l Grou p S u sta in a bility Re p o r t 2 0 1 3

Environmental Performance Summary
PERFORMANCE
INDICATOR

UNIT

2007

2008

2009

2010

2011

2012

2013

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

1,195,232

1,160,010

1,172,807

1,224,812

1,261,115

1,276,889

1,284,191

MMBTU

1,132,862

1,099,477

1,111,607

1,160,898

1,195,307

1,210,257

1,217,179

GJ

1,195,232

1,184,388

1,260,618

1,328,380

1,388,100

1,421,429

1,412,807

MMBTU

1,132,862

1,122,583

1,194,835

1,259,061

1,315,665

1,347,254

1,339,082

MJ / m

1,894

1,836

1,710

1,679

1,687

1,677

1,640

MMBTU / ft 2

0.167

0.162

0.151

0.148

0.149

0.148

0.144

tons (metric) of CO 2-e

145,536

140,089

144,726

150,757

155,773

150,896

148,514

2

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

160,424

154,420

159,531

166,179

171,709

166,333

163,707

tons (metric) of CO 2-e

145,536

142,685

153,630

161,507

169,787

171,492

170,674

tons (US) of CO 2-e

160,424

157,282

169,346

178,029

187,156

189,036

188,134

2

231

222

211

207

208

198

190

2

47.2

46.3

45.9

42.3

42.7

40.6

44.6

2,261,096

2,028,078

1,873,433

2,001,394

2,224,643

2,224,456

2,376,787

597

536

495

529

588

588

628

kg CO2-e / m
lb CO 2-e / ft

Water
Absolute Water
Consumption(Actual)m3

Absolute Water
Consumption(Baseline)m

Water Intensity

million gallons (US)2,261,096

2,147,268

2,083,968

2,220,417

2,337,591

2,323,201

2,462,525

million gallons (US)

597

567

551

587

618

614

651

litres / guest night

988

970

971

885

907

901

857

gallon (US) / guest night

261

256

257

234

240

238

227

kilograms

7,876,669

11,016,478

pounds17,365,083

24,287,176

kilograms

1,363,523

2,301,241

pounds3

Waste
Total Waste

Diverted Waste
Waste Landfill
Intensity
Diversion Rate

3,006,054

5,073,367

kilograms / guest night

3.59

4.11

pounds / guest night

7.91

9.06

percent

17%

21%

Operational Data
Total Air
Conditioned Area
Total Guest Nights

m2

631,003631,757

686,049

729,529

747,429

761,249

783,215ft

6,792,050

6,800,166

8,065,853

8,533,867

8,045,248

8,194,005

8,430,445

2,288,945

2,091,036

1,929,171

2,260,673

2,453,061

2,468,569

2,771,954

2

Mandarin Oriental, Las Vegas is not included in energy and greenhouse gas emission figures, due to incomplete data. The majorityof the energy consumption is part of a major mixed used facility and we are currently unable to extract the data relevant to the hotel.
Mandarin Oriental, Bangkok 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, Manila, Bangkok, Sanya, Las Vegas, San Francisco, Atlanta as well as The Landmark Mandarin Oriental
and The Grand Lapa, Macau are not included in waste figures, due to incomplete data.
Waste data in 2012 was restated due to the identification of an improper unit of measure for one hotel.

Man darin Orien t al H otel Group Sustainab ility Rep or t 2013

63

Delivering Excellence1	Compensation Force “2013 Turnover Rates by Industry,” 2013.
www.compensationforce.com/2014/02/2013-turnover-rates-by-industry.html
2	United States Bureau of Labor Statistics “Work-related Fatalities, Injuries, and Illnesses”, 2012.
www.bls.gov/iag/tgs/iag72.htm

Advancing Sustainability
1World Economic Forum “Global Risks 2013” 8th Edition, 2013. reports.weforum.org/global-risks-20132	Reductions—in energy use, greenhouse gas emissions and water use—are calculated as the difference between theabsolute performance in the current year and a “baseline” value, which assumes that no measures have been taken
to increase efficiency since the reference year 2007. The baseline is corrected for variable factors such as occupancy,
weather or number of meals served, to ensure that data is comparable from year to year. The method we developed
follows the guidelines established by the International Performance Measurement and Verification Protocol (IPMVP).
3	World Travel & Tourism Council “Leading the Challenge on Climate Change” 2009.
wttc.org/site_media/uploads/downloads/leading_the_challenge_on_clima.pdf
4	Renewable Energy Certificates (RECs) are included in the emission calculations, Annual average greenhouse gas
emissions per passenger vehicle is 5.10 t CO2-e per year as in www.epa.gov/cleanenergy/energy-resources/refs.html.
Emissions from stationary combinations, such as boilers, have been based on the Greenhouse Gas Protocol Cross
Section Tools.
5	www.epa.gov/cleanenergy/energy-resources/refs.html
6	Electricity emission factors for properties outside the US have been obtained from the International Energy Agency.
Electricity emission factors for US properties have been based on the eGrid of the US Environmental Protection
Agency (EPA).
7	Chilled water purchased from external sources such as district or centralised cooling has been converted to energy
and emissions using the simplified approach for electric-driven compressor and a COP of 4.2 as defined by California
Climate Change Registry.
8	Steam or heating purchased from external sources such as district or centralised heating has been converted toemissions using Energy Information Administration, Voluntary Reporting of Greenhouse Gases, Appendix N.
9	Mandarin Oriental, Manila, Sanya, Bangkok, Atlanta, San Francisco and Las Vegas as well as The Grand Lapa, Macau
and The Landmark Mandarin Oriental, Hong Kong are not included in the waste figures due to inconsistencies in datacollection methodology. We are striving to correct these processes.
10	World Economic Forum “Global Risks 2013” 8th Edition, 2013. reports.weforum.org/global-risks-201311	Mandarin Oriental, Sanya and Mandarin Oriental, Bangkok are not included in water consumption figures due toinconsistent data. We are striving to correct these processes.

A P P EN DI C ES

Endnotes

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

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