SPARK16 Presentation: Making the Case for Water Stewardship

© 2016 IHG

Making the Case for Water StewardshipMaury Wolfe

Director, Corporate Responsibility and SustainabilityInterContinental Hotels Group

© 2016 IHG

Making the Case for Water Stewardship

Maury Wolfe, Director, Corporate Responsibility, IHGSept. 15, 2016

1 May 2023 Private and confidential 2

© 2016 IHG

The Challenge

| Private and confidential 3

© 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

1.1Bpeople live without

clean drinking water

2.6Bpeople lack

adequate sanitation

3900children die every day from water-born diseases

2/3of the world’s population could be living under water-stressed conditions by 2025.

© 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

© 2016 IHG

Meeting the Challenge

| Private and confidential 6

© 2016 IHG

IHG is one of the world’s leading hotel companies.

| Private and confidential 7

© 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

FRANCHISEDMANAGED

OWNED AND LEASED

© 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

© 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 Sustainability2013-2017 Targets

| Private and confidential 10

© 2016 IHG

IHG Green Engage™

| Private and confidential 11

© 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

© 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

© 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 L U E WAT E R S C A R C I T Y

Lake Louise, Canada

© 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 A T E R C O N S E R V A T 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 T A T E

The toolkits included aerators to minimize water flow in faucets and information on howhotels 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

© 2016 IHG | Private and confidential 16

Hotel Case StudyInterContinental San Francisco

© 2016 IHG | Private and confidential 17

Hotel Case StudyHoliday Inn Diamond Bar

© 2016 IHG

Recognition

| Private and confidential 18

© 2016 IHG

What Does the Future Hold?

| Private and confidential 19

© 2016 IHG | Private and confidential 20

Water is Everybody’s Business

© 2016 IHG

How Can We Help?

| Private and confidential 21

© 2016 IHG

A Greener Stay

| Private and confidential 22

+500 IHG® Rewards Club Points

© 2016 IHG

Engage in Our Local Community

| Private and confidential 23

© 2016 IHG

Save Water at Home

| Private and confidential 24

© 2016 IHG

Questions?

| Private and confidential 25

© 2016 IHG

For More Information

www.ihgplc.com/responsiblebusiness

| Private and confidential 26

© 2016 IHG

Thank you

| Private and confidential 27