SPARK16 Presentation: Making the Case for Water Stewardship
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SPARK16 presentation by Maury Wolfe – Director, Corporate Responsibility and Sustainability, InterContinental Hotels Group
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SPARK16 Presentation: Making the Case for Water Stewardship
- 1. © 2016 IHG Making the Case for Water Stewardship Maury Wolfe Director, Corporate Responsibility and Sustainability InterContinental Hotels Group
- 2. © 2016 IHG Making the Case for Water Stewardship Maury Wolfe, Director, Corporate Responsibility, IHG Sept. 15, 2016 16 September 2016 Private and confidential 2
- 3. © 2016 IHG The Challenge | Private and confidential 3
- 4. © 2016 IHG The Current Water Crisis A F E W K E Y FA C T S A N D F I G U R E S | Private and confidential 4 1.1B people live without clean drinking water 2.6B people lack adequate sanitation 3900 children die every day from water-born diseases 2/3 of the world’s population could be living under water- stressed conditions by 2025.
- 5. © 2016 IHG | Private and confidential 5 and hotels are perceived as large consumers of water. Average water use per night in a hotel is Different hotels will have different drivers. Initiatives need to be tailored. of water consumption is in areas of moderate to severe water scarcity. Water stewardship is a local issue. Growth in coastal and island destinations. 71% 158 gallons 10% Water can account for of utility bills What This Means for the Hotel Industry
- 6. © 2016 IHG Meeting the Challenge | Private and confidential 6
- 7. © 2016 IHG IHG is one of the world’s leading hotel companies. | Private and confidential 7
- 8. © 2016 IHG How Our Business Works We operate on a predominantly franchised business model. In some instances, we operate hotels for third-party owners, but a majority of our hotels are operated by someone else. This presents a unique challenge – engaging and motivating franchisees to deliver our sustainability programs. | Private and confidential 8 4219 806 7 Number of hotels FRANCHISED MANAGED OWNED AND LEASED
- 9. © 2016 IHG To create more sustainable communities and better lives… The Value Journey for CR at IHG | Private and confidential 9 C R A M B I T I O N IHG Green Engage IHG Academy IHG Foundation Public Affairs Human Rights H O W W E G E T T H E R E O U T C O M E S Enhanced > owner profitability > hotel revenue share > reputation for IHG > value as a franchisor > employee engagement Great Hotels Guests Love
- 10. © 2016 IHG C A R B O N To be achieved through the effective use of IHG Green Engage Carbon footprint reduction 12% per occupied room in two years to 2012. Reduce carbon footprint per occupied room by 12%* W A T E R To be achieved through the effective use of IHG Green Engage. In stressed areas, water costs tend to be high, so reduced water controls costs and protects profitability. Reduce water use per occupied room in water-stressed areas 12%* * Note: Target includes all owned, managed and franchised hotels on IHG Green Engage Environmental Sustainability 2013-2017 Targets | Private and confidential 10
- 11. © 2016 IHG IHG Green Engage™ | Private and confidential 11
- 12. © 2016 IHG Booking Site Visibility to Guests We display the IHG Green Engage Level for every hotel on the IHG booking sites so guests can choose more environmentally friendly hotels. | Private and confidential 12 75% of frequent travelers care about sustainability
- 13. © 2016 IHG We have recently announced the completion of the hospitality industry’s most comprehensive water risk assessment to date. Together with the Water Footprint Network (WFN) we have mapped our global estate and the majority of our pipeline hotels against risks related to both water quantity and water quality. We have also identified the actions needed to address these risks. | Private and confidential 13 Water Footprint Network
- 14. © 2016 IHG Blue Water Scarcity Analysis | Private and confidential 14 Measures the amount of water consumed compared to the amount that is needed to maintain normal conditions. B LU E WATER SC A R C ITY Lake Louise, Canada
- 15. © 2016 IHG In 2014 | Private and confidential 15 IHG has a portfolio of more than 230 hotels in California, across nearly our entire portfolio, from upscale to extended stay F O L L O W I N G S E V E R E D R O U G H T I N C A L I F O R N I A , W E S E N T W AT E R C O N S E R VAT I O N T O O L K I T S T O O U R H O T E L S I N T H E S TAT E The toolkits included aerators to minimize water flow in faucets and information on how hotels can easily conserve water through IHG Green Engage solutions Since the initiative, six IHG hotels in the state have gone on to complete a bathroom refresh, and collectively are expected to save 2.4m gallons of water and $13,000 on water costs annually Water use per occupied room decreased by 10% in our California hotels from 2014 to 2015 California Toolkits
- 16. © 2016 IHG | Private and confidential 16 Hotel Case Study InterContinental San Francisco
- 17. © 2016 IHG | Private and confidential 17 Hotel Case Study Holiday Inn Diamond Bar
- 18. © 2016 IHG Recognition | Private and confidential 18
- 19. © 2016 IHG What Does the Future Hold? | Private and confidential 19
- 20. © 2016 IHG | Private and confidential 20 Water is Everybody’s Business
- 21. © 2016 IHG How Can We Help? | Private and confidential 21
- 22. © 2016 IHG A Greener Stay | Private and confidential 22 +500 IHG® Rewards Club Points
- 23. © 2016 IHG Engage in Our Local Community | Private and confidential 23
- 24. © 2016 IHG Save Water at Home | Private and confidential 24
- 25. © 2016 IHG Questions? | Private and confidential 25
- 26. © 2016 IHG For More Information www.ihgplc.com/responsiblebusiness | Private and confidential 26
- 27. © 2016 IHG Thank you | Private and confidential 27
Notes de l'éditeur
- The challenge is very real. Many parts of the world are experiencing serious issues, whether related to drought, flooding or pollution – with climate change expected to exacerbate this. Population growth is also an important factor. While the world's population tripled in the 20th century, the use of renewable water resources has grown six-fold. In the next fifty years, the world population will increase by another 40 to 50 %. This population growth - coupled with industrialization and urbanization - will result in an increasing demand for water and will have serious consequences on the environment. As water becomes scare, tensions among users may intensify, both at the national and international level. More than 260 river basins are shared by two or more countries mostly without adequate legal or institutional arrangements. Here in Georgia, we’re in a decades-long water fight with Alabama and Florida. There is also an awareness issue. As long as people aren’t facing water scarcity themselves, they believe access to water is an obvious and natural thing.
- How does this challenge affect us as an industry? Reducing water use in water stressed areas will enhance our reputation among our stakeholders. We have specified a water reduction in water stressed areas based on stakeholder feedback. This forces us to focus our efforts on the communities that most need watershed support. We still encourage all properties to reduce water consumption via IHG Green Engage, but we focus our time and resources where they are most needed. Wrap in HWMI
- First, a little bit about IHG: We are one of the world’s leading hotel companies. We have more than 5,000 hotels and nearly 750,000 guest rooms in nearly 100 countries. Our brands are some of the best known and most popular in the world, from luxury brands like InterContinental Hotels & Resorts to boutique brands like Hotel Indigo to mainstream brands like Holiday Inn. There are more than 350,000 people across the world working in IHG hotels to deliver “Great Hotels Guests Love.”
- Before we can talk about what we are doing to address water scarcity, it’s important to understand how our business works. We have an asset-light strategy, meaning that we own very few of our hotels, just seven of the 5,000 hotels we have around the world. Our business model predominantly focuses on franchising and managing hotels, with our business partners owning the bricks and mortar. Depending on where our hotels are and how mature the markets are, we may be more likely to manage hotels. For example, in the midscale segment in the U.S., which is a mature market, we operate a largely franchised business. By comparison, in an emerging market such as Greater China, our business is predominantly managed, meaning we are responsible for operating the hotel on behalf of our owners. This presents a unique challenge when it comes to sustainability. We have to offer solutions and tools that are easy for our hotels to use and that show our owners how being sustainable can positively impact their bottom line.
- A commitment to operating our business responsibly underpins our entire strategy. We bring this commitment to life through our culture and by embedding it in all aspects of the way we work. Through our culture of responsible business and our award-winning corporate responsibility programs we aim to ensure IHG has a positive impact on the lives of all the people that interact with us. Our CR ambition is to create more sustainable communities and better lives. 3 CR programs – IHG Green Engage, IHG Academy, IHG Foundation. Reduce the environmental impacts of our operations. Make a real difference in local communities around our 5,000+ hotels / corporate offices. Drive better owner profitability, revenue share for our hotels, reputation for IHG, value as a franchisor, employee engagement and help us to achieve our core purpose which is to create Great Hotels Guests Love. Example: engaging employees: doing business responsibly create a sense of employee pride and connection, which in turn improves engagement and motivation. Stakeholders want to know how responsible we are as a business. Having a clear commitment to protecting the environment and making a difference to local people will help build IHG’s reputation and drives brand preference.
- Science based targets Target to reduce our carbon footprint per occupied room by 12% across our entire estate by focusing on the quality of the use of IHG Green Engage in our hotels, in order to deliver maximum positive impact. Why the shift from energy to carbon? 1. It’s a better, more holistic and comprehensive measurement. 2. Because we can – and we now have an industry standard. 3. Corporate clients and guests want us to Why 12%? Worked with external experts – you can see how you could get there and also see how the target stands up against the competition within the industry and also further afield. Water target, reduce water use per occupied room by 12% in water-stressed areas. We want to focus our water efforts on the areas where it will have the most impact; areas affected by drought or experiencing water quality impacts. The cost of water in these areas tends to be higher, so that creates an incentive for hotels to manage costs and maintain profitability – shared value again. We had achieved a 4.8% reduction in water use per occupied room in water-stressed areas* to the end of 2015; 40% of 2013-17 target complete to 30 September 2015
- The IHG Green Engage system is our core environmental initiative. This is an online sustainability tool that allows hotels to track, measure and report on their carbon footprint and utility consumption Recommends more than 200 ‘Green Solutions’ which help deliver greater sustainability Green Solutions are action items that hotels can implement on property to build and operate sustainable hotels Examples include using energy efficient lighting, installing water efficient bathroom fixtures, using energy efficient appliances, rainwater harvesting, planting native species in landscaping Supports hotels to create environmental action plans and targets Makes our hotels more cost-effective and ultimately allow us to improve the value of service we offer our guests The system recognizes progress and performance through four levels of certification In 2014, we announced a global standard that all of our hotels must participate in the IHG Green Engage system Throughout 2015, we worked with our hotels globally to drive adoption and complete Level 1 certification, which requires the completion of 10 Green Solutions More than 70% of our properties have gone beyond Level 1 Hotels using the IHG Green Engage system to Level 3 or above can be up to 25% more energy efficient More than 34,000 Green Solutions were implemented through the system during 2015 Automatically feeds sustainability information about our hotels to our clients. In 2015, 48% of our business accounts asked for this information – such as carbon footprint and waste diversion rates – about our hotels. In the last two years, the program has resulted in more than $200 million in avoided costs in IHG’s managed properties.
- This provides the foundation for IHG to develop tailored water stewardship action plans for each individual hotel based on considerations such as the maturity of the property, the type and level of risk and the business case for tackling it. The targeted actions will ultimately enable hotels to manage and mitigate water risk, by measuring and monitoring water usage, improving their water performance and resilience against local water challenges and engaging staff, guests and external stakeholders in water stewardship.
- 200% more water used than the ecosystem can support This is not an analysis of all physical risks, but is one of the earliest we have now been able to apply and automatically highlights some key issues.
- Because the California toolkits were so successful, we sent a similar toolkit to hotels in water-stressed areas across the U.S. and expanded the toolkits to include information on energy conservation. 38 of the 50 hotels that received toolkits purchased additional lighting and/or water products through our supplier partnerships. (76%) More than 3,000 products (either lighting or water efficient products) in total were purchased by these hotels since the toolkits went out
- The InterContinental® San Francisco, a LEED® Gold hotel, saves an estimated two million gallons of water a year with low flow faucets, toilets and other back of house water restriction features. The hotel implemented a sustainable HVAC cooling water treatment system that has contributed to about one million gallons of water saved per year. The hotel is taking it a step further by installing waterless urinals in all public restrooms, estimated to save a another half million gallons of water per year.
- The Holiday Inn Diamond Bar hotel installed 186 water efficient toilets in February of 2015. Since then, they have already saved 1.4 million gallons of water (16% reduction in water use) and more $2,000 in associated water costs. The hotel has also received positive feedback from guests on their proactive water saving efforts.
- This is why we do this – what success looks like? While many corporations seem to be looking to find ways to do business in a sustainable way, of the 550 brands included in the 2015 Forbes Customer Loyalty Engagement Index, a survey of 36,000 men and women, 18-65 years of age, from the 9 U.S. Census Regions, here are the top-50 brands deemed authentically and resolutely “green” by their own customers.
- Everyone plays a part. In September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at to adopt the United Nations Millennium Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a series of time-bound targets - with a deadline of 2015 - that have become known as the Millennium Development Goals. The eight Millennium Development Goals (MDGs)– which range from halving extreme poverty rates to halting the spread of HIV/AIDS and providing universal primary education, all by the target date of 2015 – form a blueprint agreed to by all the world’s countries and all the world’s leading development institutions. They have galvanized unprecedented efforts to meet the needs of the world’s poorest. GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY Target 7.C: Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation The world has met the target of halving the proportion of people without access to improved sources of water, five years ahead of schedule. Between 1990 and 2015, 2.6 billion people gained access to improved drinking water sources. Worldwide 2.1 billion people have gained access to improved sanitation. Despite progress, 2.4 billion are still using unimproved sanitation facilities. The UN is also working with governments, civil society and other partners to build on the momentum generated by the MDGs and carry on with an ambitious post-2015 development agenda. This includes a collection of 17 goals, one of which is Clean Water and Sanitation. There are several targets aligned with this goal, including international cooperation to support developing countries, increasing water-use efficiency, reducing pollution, and protecting and restoring water-related ecosystems.
- A Greener Stay was originally identified as a priority in the overall GSM strategy, with Holiday Inn and Holiday Inn Express targeted for a pilot. The program provides IHG guests with the option to opt out of Housekeeping services in order to decrease environmental impact. In return, guests receive an IHG® Rewards Club 500 point bonus. This program was piloted at 43 Holiday Inn and Holiday Inn Express hotels across the U.S. in Q2 2015. Post-pilot, the impact to guests and hotels was measured and used to evaluate the strategy for a multi-brand, multi-regional roll-out.
- Find a way to engage in your local community. Chattahoochee Riverkeeper is an environmental advocacy organization here in Atlanta dedicated to protecting and preserving the Chattahoochee River Basin. It offers workshops to teach homeowners about water conservation, water-wise gardening and rain barrel installation. Rain Barrel Workshop Details Learn how to construct your rain barrel Receive a barrel and rain barrel conversion kit Learn about water conservation and practical residential stormwater solutions Receive a one-year membership to CRK Good for team building and school field trips.
- There are a lot of ways that as individuals we can easily conserve water at home. Not only does it help conserve a precious resource, you can lower your utility bills. A few examples: Turn off the tap while brushing your teeth – water comes out of the average faucet at 2.5 gallons per minute Take your car to a car wash the recycles water Plant native species that require less watering Fix your leaks Re-use cooking liquids (pasta or vegetables) Take shorter showers – older shower heads can use as much as 5 gallons of water per minute Install efficient fixtures Don’t run the dishwasher and washing machine unless they’re full Re-use grey water