Another good year for Good Together - Corporate Responsibility Report 2014/15

 
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Another good year for Good Together - Corporate Responsibility Report 2014/15
Corporate Responsibility Report 2014/15

Another good
year for
Good Together
Another good year for Good Together - Corporate Responsibility Report 2014/15
Financial Highlights 2014/15
Group                                                   Underlying Group                       Return on
Revenue                                                 Profit Before Tax                      Capital

£2,608.1m                                               £488.1m                                15.3%
(+13.7%)                                                (+18.5%)                               to 15.7%

Good Together Highlights 2014/15
949
apprentices
                                                        36%
                                                        improvement in
                                                                                               £4 million
                                                                                               raised for
In learning                                             carbon efficiency                      our charities
                                                        (against 2009 baseline)

New Good Together 2020 Milestones
Teams & Communities                                     Customer Wellbeing                     Energy & Environment

Raise £10 million                                       Whitbread’s critical product           Reduce carbon by 15%
for WHR Charity                                         commodities will be 100%               (against a 2014 base line)
                                                        accredited against robust
Raise £15 million for                                   standards                              Reduce water by 20%
Costa Foundation                                                                               (against a 2014 base line)
7,500 Work Experience                                   We will set relevant salt
Placements                                              and sugar reduction targets            Increase direct operations
                                                                                               recycling rate to 80%
6,500 Employment
Placements
6,000 Apprenticeships

Whitbread PLC is the owner of the                       Whitbread has outlined growth          If you’re interested in reading more
UK’s favourite hotel chain, Premier                     milestones for 2016, 2018 and 2020.    about the work that our teams do
Inn, and the UK’s favourite coffee                      The 2020 milestones are to increase    for Good Together, please visit our
shop, Costa, as well as restaurant                      the number of Premier Inn UK rooms     website
brands, Beefeater, Brewers Fayre                        to around 85,000 and to achieve
and Table Table. We employ 45,000                       global system sales of around £2.5bn   www.whitbread.co.uk/corporate-responsibility
people in over 2,500 outlets across                     for Costa. Whitbread PLC is listed
the UK, who make every day                              on the London Stock Exchange and
experiences special for over 25                         is a constituent of the FTSE 100.
million UK customers every month.                       It is also a member of the
Our core values are Genuine,                            FTSE4 Good Index.
Confident and Committed.

Whitbread | Corporate Responsibility Report 2014/15                                                                                 Page 1
Another good year for Good Together - Corporate Responsibility Report 2014/15
Welcome

Whitbread’s Corporate Responsibility programme,
Good Together, is at the heart of our business philosophy
and part of the way we operate. We aim to be a ‘force for
good’ and in the past few years we’ve made significant
progress towards becoming a more sustainable business.
We have already met a number of our 2017 targets.
Of course, we recognise we still have a long way to go,
which is why we’ve set ourselves stretching new 2020
goals to increase focus and drive further momentum.

I’m delighted to report that in the                     responsible supply chain, with
past year, we’ve achieved positive                      rigorous policies in place to ensure
results across all three pillars of our                 our customers can have the utmost
Good Together programme – Teams                         confidence in the integrity of our
and Communities, Customer Wellbeing                     products. Our menu development
and Energy and Environment.                             teams are looking at how we can
                                                        improve the nutritional value of our      Our Good Together programme
We continue to make a difference                        food and drink to provide customers       is an integral part of our business
to the people working in our business                   with a greater choice of credible
and living in the communities in which
                                                                                                  philosophy and vision as illustrated
                                                        options.
we operate. Within our Teams                                                                      by our Customer Heartbeat model.
and Communities pillar, our WISE                        As we open hundreds of new                It is focused on three pillars
programme (Whitbread Investing in                       coffee shops, restaurants and hotels,
Skills and Employment) goes from                        our challenge is to ensure we manage      – Teams & Communities
strength to strength as we create                       our Energy and Environmental impact
                                                                                                  – Customer Wellbeing
opportunities for people to get into                    by reducing carbon emissions, being
work, learn new skills and develop                      as energy efficient as possible,          – Energy & Environment
their careers. In the past year we have                 minimising water consumption and
supported over 900 team members to                      diverting waste from landfill. We’re
undertake an apprenticeship, 584 have                   doing this by investing in new
achieved their Maths and/or English                     technologies and ways of working,
qualification and around 2,500 students                 to test and demonstrate higher
and unemployed people have been on                      sustainability standards. In 2014/15,
a work placement in one of our hotels,                  we succeeded in delivering a 36%
restaurants or coffee shops.                            improvement in carbon efficiency and
                                                        a 30% reduction in water consumption
We are immensely proud of the                           against our 2009 baseline, and
work that our teams do to support                       diverted 84% of all operational waste
charitable and local causes. In 2014/15                 from landfill.
they’ve raised almost £4 million
towards our chosen charities of Great                   2014/15 has been a great year for
Ormond Street Hospital and the Costa                    Good Together and our ambitious new
Foundation. Additionally, they                          2020 targets will ensure we remain
undertake hours of volunteering                         focused and committed to delivering
work each month and raise much                          even better results in the years ahead.
-needed funds for local charities,                      I’d like to thank our teams for their
which Whitbread is delighted to                         valuable contribution which is making
support through our ‘Raise & Match’                     a real difference for our people, our
funding programme.                                      communities, our customers and the
                                                        environment.
Within our Customer Wellbeing
pillar we have made significant steps                   Andy Harrison
in the past year towards building a                     Chief Executive

Whitbread | Corporate Responsibility Report 2014/15                                                                            Page 2
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Creating opportunities
and realising potential

Whitbread has continued
to make a difference to
                                                        As Whitbread grows we will need to
                                                        recruit thousands of team members
                                                        and future leaders. This is not just a
                                                                                                        In the year...
                                                                                                        743
the people working in its                                                                                                Costa Shooting Stars
                                                        challenge for Whitbread, but for the
business and living in the                              hospitality industry as a whole. It’s
                                                                                                                         & Rising Stars

communities it serves, by                               critical that we raise awareness of the

                                                                                                        1,342
                                                                                                                         Whitbread Hotels &
creating opportunities for                              great opportunities and paths that a                             Restaurants Shooting Stars
people to get into work,                                career in hospitality can provide; it’s

                                                                                                        73
learn new skills and develop                            an industry where, given the right                               Graduates on a Premier Inn
                                                        training and development, you can                                operations programme
careers. Success for
                                                        progress from your first job all the

                                                                                                        14
Whitbread depends on being                              way to the top.                                                  Graduates on a support
                                                                                                                         centre programme
able to recruit and retain a
large workforce. We currently                           “Whitbread has always believed in

                                                                                                        8,978
                                                         providing people with opportunities to                          Costa team members
employ over 45,000 people in                                                                                             completed a training
                                                         flourish. We have no barriers to entry and                      programme
the UK and this is set to grow                           no limits to ambition! In the last financial
by approximately 3,000 new                               year we gave more than 1,300 people the
team members every year.                                 opportunity to manage one of our hotels,
                                                         restaurants or coffee shops and nearly         Shooting Stars is our management
We have a young workforce with 48%                       600 of these are managing their own            development programme, which
aged 16-25 years. 60% of the people                      business for the first time”                   supports high potential team members
we recruit every year are in this age                   Richard Baker, Chairman, Whitbread PLC          and managers, helping them progress
                                                                                                        into their next roles and become future
group, and many of them are not in
                                                        Our Graduate programmes provide                 leaders. Around 80% of all roles within
employment, education or training
                                                        graduates with the opportunity to gain          Whitbread are expected to be filled
(NEET) when they join Whitbread.
                                                        valuable experience in areas                    through internal progression and this
Consequently, they can often lack the
                                                        such as Operations Leadership, HR,              training programme is designed to
confidence and necessary skills for
                                                        Finance, Marketing and Property.                develop the managerial skills and
work, which is why it’s vital that we
                                                                                                        behaviours required of world class
invest in providing training to ensure
                                                                                                        leaders.
we have engaged, confident and
skilled teams who can provide the                                                                       Both our Restaurants and Costa
outstanding customer service that                                                                       businesses use Skills Academy centres
is critical to our success. We invest                                                                   based across the UK to deliver many of
£12 million every year on training                                                                      their training courses.
and development programmes.                                                                             There are three Restaurants Food and
This investment ensures we build                                                                        Beverage Academies, in Hockley Health,
winning teams, helping team members                                                                     Manchester and Swindon which offer
to increase their skills and their pay,                                                                 courses that range from food product
whilst their careers progress.                                                                          information and cooking through to
                                                                                                        presentation and customer service.
“Investment in people is investing in

                                                         £12 million
  future success. It pays dividends with
                                                                                                        Costa has also built its own
  improved levels of customer service,
                                                                                                        network of Skills Academies around the
                                                                                                        country, welcoming thousands
  productivity and competitive advantage”
                                                         annual investment in training                  of baristas a year and offering a
Louise Smalley, Group HR Director
                                                                                                        variety of training courses.

Whitbread | Corporate Responsibility Report 2014/15                                                                                        Page 3
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Whitbread investing in skills
and employment
                                                                         Our WISE programme is focused on how we address the skills
                                                                         challenge and change the perception of hospitality careers.
                                                                         The programme includes our ground-breaking apprenticeship
                                                                         scheme; an outreach programme of visits to schools, further
                                                                         education colleges and universities; supporting work experiences
                                                                         placements for 14-18 year olds; and offering adult work
                                                                         placements through partnerships with community agencies
                                                                         such as Job Centre Plus and The Princes Trust.

                                                2014/15 performance                         Delivered up to end Feb 2015      2020 Target (reset in April 2015)

APPRENTICESHIPS                                               26*                                     998                                     6,000
DELIVERED
APPRENTICESHIPS                                              949
IN LEARNING
WORK EXPERIENCE
PLACEMENTS
(aged 14-18 years old)                                      1,193                                   2,420                                      7,500
EMPLOYMENT
PLACEMENTS                                                 1,288                                    2,339                                      6,500
*this number is low as we changed the programme and reporting methodology during the year

Giving people the start                                                  “It’s a huge leap forward to have Whitbread,   In January 2015, Whitbread welcomed
                                                                          one of Britain’s leading employers in the      the then Minister for Employment and
they need - Apprenticeships                                               hospitality industry, hiring even more
Building on a successful start to our                                                                                    MP for Wirral West, Esther McVey, to
                                                                          apprentices. We want apprenticeships to        open its 18th hotel in Merseyside. The
apprenticeship programme, in April                                        be level-pegging with a University degree,
2015 we announced an ambitious                                                                                           new hotel created 27 jobs in addition
                                                                          giving millions more people the dignity
new target to help deliver 6,000                                                                                         to the 471 already provided through
                                                                          of work.”
apprenticeships by 2020, along with                                                                                      its hotels across Liverpool, Southport
                                                                          The Prime Minister, David Cameron
a brand new apprenticeship scheme                                                                                        and the Wirral. In total, 89% of the
for Costa. The new targets were                                                                                          employees at the new Birkenhead
                                                                         Whitbread will commit £5.7 million
announced by The Prime Minister                                                                                          Premier Inn came from a background
                                                                         to apprenticeship programmes over
David Cameron, during a visit to                                                                                         of long-term unemployment and they
                                                                         the next five years. The new Costa
Premier Inn in Leeds. He met with                                                                                        are all benefitting from the vast range
                                                                         apprenticeship programme will provide
a number of current Whitbread                                                                                            of work-based training opportunities
                                                                         an Intermediate Apprenticeship in
apprentices and heard from them                                                                                          that Premier Inn provides.
                                                                         Customer Service and Barista Skills,
directly about why it has been such                                      and will open for applications in               Rob Wise, 46, is one of our new team
a great opportunity for them.                                            Summer 2015.                                    members who has suffered problems
                                                                                                                         in his past. Rob admits to making some
                                                                         Apprenticeships offer a very real               bad choices when he left school, which
                                                                         benefit with some great results                 have impacted on his adult life. Starting
                                                                         –3
                                                                           2% of Whitbread Level 2 apprentices          afresh, Rob is a member of the Kitchen
                                                                          move into management roles within              Team and is proud to have achieved
                                                                          two years compared with 20% of                 his Level 1, and is working towards
                                                                          non-apprentices.                               his Level 2 whist employed in the
                                                                         –T
                                                                           urnover of our apprentices                   Birkenhead Premier Inn.
                                                                          community is 45% lower than the
                                                                                                                         “I’d like to thank Premier Inn for giving
                                                                          average turnover in our business.
                                                                                                                          me an opportunity and showing no
                                                                         –A
                                                                           pprentices who started in 2011/12             discrimination against my past history.
                                                                          have increased their earnings by 21%            I now always have a smile on my face,
                                                                          over a national pay increase average            I enjoy going to work and have built a
                                                                          of 1.5%.                                        great relationship with the team!”
                                                                                                                         Rob Wise

Whitbread | Corporate Responsibility Report 2014/15                                                                                                                 Page 4
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Getting people into
work and inspiring
future careers
During 2014/15, Whitbread                               journey started with a work experience
continued to reach out to
11-18 year olds in schools,
                                                        placement and it proved the perfect
                                                        pathway to an Apprenticeship.                   In the year...
                                                                                                        1,185
colleges and universities to                            “Work experience really opened my eyes                 Work Experience
promote hospitality as a                                 to what work actually involved and there               Placements provided for
                                                                                                                school and college students
career, inspire them to become                           was so much more to it. It’s an amazing

                                                                                                        8
managers of the future and                               experience and I’d definitely recommend                48 week placements in
                                                         it because the opportunities it will open up           Premier Inn for Hospitality
give them real insight into                              afterwards are going to be great. I’m really
                                                                                                                students
the world of work and what
                                                                                                        45
                                                         glad that I did it now”.                               young people attended
Whitbread has to offer.                                 Emily Bennett                                           The Prince’s Trust ‘Get Into
                                                                                                                Hospitality’ programme

                                                        Adult Employment Placements

                                                                                                        17
                                                                                                                went on to gain a
                                                        Whitbread delivers its Adult                            permanent role
                                                        Employment Placement programme
                                                        in partnership with a range of

                                                                                                        44
                                                                                                                young people attended
Whitbread works in partnership                          organisations including Job Centre Plus,                The Prince’s Trust ‘Get Into
with the work-experience charity                        Springboard, Sector Based Work                          Coffee’ programme
                                                        Academies and The Prince’s Trust.

                                                                                                        31
‘Believe In Young People’ to deliver this                                                                       were offered a position
programme of school visits and work                                                                             with Costa
experience, which combine academic

                                                                                                        1,199
and practical skills development with
                                                                                                                two week adult
in-built careers planning, matching                                                                             work experience
young people’s attributes and skills.                                                                           placements
The programme is integrated into the
school curriculum and provides a
combination of work-related lesson
plans, work experience, career talks                    The ‘Get into Hospitality’ and ‘Get into
and apprenticeships, all designed to                    Coffee’ programmes are delivered in
give young people a valuable insight                    conjunction with The Prince’s Trust
into the world of work at the same time                 and are aimed at individuals aged from
as increasing their readiness for it.                   17-24 years old. The Prince’s Trust refer
The programme also helps build a                        individuals to us and we then screen
pool of future talent available to                      candidates before offering a taster day
Whitbread’s growing business.                           for them to come in, understand more
                                                        about the business and be interviewed.
In December 2014, Believe in Young                      We offer a four week programme, with
People organised an outreach visit to                   an opportunity to gain a Level 1
East Midlands Academy, where Emily                      Qualification in Introduction to
Bennett (Receptionist at Premier Inn                    Employment in the Hospitality
Cannock South), Sue Mantle                              Industry, which includes helping
(Operations Manager for Premier Inn                     individuals with employability skills like
Tamworth Central and Tamworth South)                    communication, team working and
and Kerry Baylis (Operations Manager                    interview techniques, as well as basic
for Premier Inn Cannock Orbital) spent                  health and safety. We also interview
a day talking with students about the                   all individuals and give them feedback.
varied career routes available in                       The ultimate goal of this partnership is
hospitality. Emily is currently completing              to employ successful candidates into
an Advanced Apprenticeship in                           the business and where we can’t, our
Hospitality Supervision and is in training              programme is designed to equip those
to be a Team Leader. She explained to                   individuals with skills that will help them
students how her Premier Inn career                     to find a job elsewhere.

Whitbread | Corporate Responsibility Report 2014/15                                                                                   Page 5
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Giving back to our communities
We are delighted that financial
and practical support from
key members, customers and
suppliers across the business,
for our two chosen charities
of Great Ormond Street
Hospital Children’s Charity
and the Costa Foundation,
has gone from strength to
strength during 2014/15,
and this performance has
encouraged us to announce
new 2020 fundraising targets.

2014/15 Performance                                     Raised to Date (up to end February 2015)            New 2020 Target
£2.02 million raised                                    £4.4 million                                        £10 million to be raised for WHR
                                                                                                            charity (including £7.5 million
                                                                                                            for Great Ormond Street Hospital
                                                                                                            Children’s Charity)

£1.8 million raised                                     £7 million                                          £15 million for the Costa Foundation,
                                                                                                            funding 100 school projects.

                   Whitbread Hotels and                 In February 2015, team members                      We have team members who are
                   Restaurants have been                came together in London to celebrate                ex-patients of GOSH, such as Hari
                   raising money for Great              raising £4 million with a special party             Bansal, a ground floor team member
                   Ormond Street Hospital               for hospital patients and families.                 at Premier Inn Thurrock West. Hari
                   Children’s Charity since             A fun-packed ‘Pirates and Princesses’               was born with a bilateral cleft lip and
                   2012, when our team                  party was attended by celebrity guests              palate, which affected her breathing
                   members voted                        Fay Ripley, Christopher Biggins and                 and speech. She was treated at Great
                   overwhelmingly for it                Matt Johnson.                                       Ormond Street Hospital from the age
                   to be their charity of                                                                   of three months until she was 23 years
choice. Great Ormond Street Hospital                                                                        old and had 13 operations.
                                                        “Today’s party is a celebration not only of
(GOSH) is the UK’s leading centre for
                                                         reaching such a significant financial milestone,
treating seriously ill children and WHR                                                                     “The hardest part of having a facial deformity
                                                         but it also gives us an opportunity to celebrate
is committed to raising £7.5 million by                                                                      was growing up and realising that I looked
                                                         with the people who matter most, the
2017 to build the Premier Inn Clinical                                                                       different, but I’ve learnt that looks are not
                                                         hospital’s young patients and their families.”
Building, which will provide much                                                                            what define you, it’s the roads you walk
                                                         John English, Head of Charity Partnerships, WHR     down that makes you who you are!”
needed new in-patient wards, a new
surgery centre, a respiratory centre                                                                         Hari Bansal
and a specialist centre for children with               Our teams took part in fundraising
severe skin conditions and infectious

                                                                                                            In the year...
                                                        events throughout the year including
diseases. Once the building is complete,                two National Charity Weeks, where they
it is anticipated that the entire hospital              carried out multiple innovative, fun and
will be able to treat up to 20 per cent                 ambitious activities such as group sky
more children.                                          dives and mountain treks around the
                                                        UK and overseas. A number of team
                                                                                                            £323,851               donated to charity by
                                                                                                                                   team members through
                                                                                                                                   Give & Match
On 30th September 2014, a breaking
                                                        members also helped out on the Premier
ground ceremony was held to mark
                                                                                                            £94,393
                                                        Inn and GOSH float at the Lord Mayor’s                                     raised by team members
the beginning of construction on the                                                                                               through Raise & Match
                                                        Show, which took place in London in
Premier Inn Clinical Building. Great
                                                        November 2014. The annual Whitbread
Ormond Street patrons Tess Daly and
                                                                                                            £57,721
                                                        Supplier Conference and Gala Dinner in                                     provided by Whitbread to
Vernon Kay helped commemorate the                                                                                                  the Raise & Match scheme
                                                        February 2015 was another great event
occasion with some young patients,
                                                        that raised much-needed funds.
marking the beginning of building work,
which sees the top four floors of the
hospital’s outdated Cardiac Wing
                                                                                                            68                     charities benefitted from
                                                                                                                                   Raise & Match

demolished and redeveloped.

Whitbread | Corporate Responsibility Report 2014/15                                                                                                  Page 6
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Costa
Foundation
In the year...
9                  New school
                   projects

4000+
                   More children
                   in education

£545,000
                   Raised by baristas
                   in Costa equity and
                   franchise stores

250,000
                   Travel mugs sold
                   all profits donated

5.5 million
                   Biscuits sold globally
                   with 10p donation

£200,000
                   Other customer
                   and partner donations
                   (inc. Gift Aid)

£204,000
                   Whitbread’s contribution
                   through match funding and
                   donation from Costa profits

                                                 Page 7
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

Costa helping communities grow

                                                               32,000 300
                                                               children in education                                 classrooms
Many coffee growing communities                         organised the first London to Paris cycle
are situated in remote rural areas                      rally on behalf of the Costa Foundation.
in some of the world’s most                             The team cycled 240 miles from the
undeveloped and poorest countries,                      Costa Roastery in Lambeth, London, to
where children often have limited or                    the new Costa office in Paris, and raised
no access to education. The Costa                       almost £10,000.
Foundation delivers collaborative
education projects to these communities                 In October 2014, the Costa Foundation
to help them thrive and grow. Over 50                   opened the Derba High School in
farming communities in Colombia, Costa                  Amaro, Ethiopia. Amaro has a population
Rica, Ethiopia, Guatemala, Honduras,                    of 140,000 and is a mixed farming
Peru, Uganda and Vietnam now benefit                    community where coffee is the main
from a Costa Foundation school project.                 crop. There are 31 infant schools and
With £7 million raised since 2006, we                   11 primary schools, but only one high
have set a new target to raise £15 million              school, leaving students unable to
by 2020 to support 100 school projects.                 continue their education beyond primary
                                                        school. To address this need, the Costa
Throughout the year, our Costa                          Foundation has built a new high school
Baristas and Managers held an                           with eight classrooms, a fully stocked
inspirational range of fundraising events               library, sanitation and fresh water. 960
including quiz nights, climbing mountains               students enrolled from the first day the
and knitting sponsored cosies for coffee                school opened. It is the most remote
cups in-store! One such event was the                   school that the Costa Foundation has ever
annual Three Peaks Challenge, which took                built, with the journey from Addis Ababa
place in July with 32 walkers from across               taking over a day and a half due to poor
the Costa business taking to the hills to               roads and mountainous terrain.
raise money for the Foundation, raising
over £22,000. In August, Costa Express

Local Community                                                                                      In 2014/15, Costa piloted a partnership
Partnerships
Costa’s stores have an important
role to play in their local communities
                                                        In the year...                               with Save the Children’s ‘Born to Read’
                                                                                                     programme in Manchester and London,
                                                                                                     providing one-on-one reading support to

                                                        1,072
                                                                           local activities          children through Costa staff volunteers,
and a wide range of initiatives are
                                                                           supported by their        who can visit a local school for 1½ hours
successfully running across the UK and                                     local Costa store         per week for a whole year within their
overseas to help our teams do just that.

                                                        700
                                                                           hours volunteered         paid hours. Costa also provided funding of
A good example is Danny Gratton-Cash,
                                                                           by baristas               £100,000 towards the programme.
a Store Manager in Altrincham who
volunteers three to four hours every                                                                 “The Born to Read programme is giving

                                                        50
night during productions to support the                                    stores donated
                                                                           their space                 the Costa teams a real sense of pride.
Bollington Light Opera Group (BLOG),                                                                   It’s an excellent UK–based initiative
a local drama society offering both                                                                    which mirrors The Costa Foundation’s

                                                        400
children and adults opportunities to                                       stores donated funds
                                                                           to local causes             commitment to schools and education
perform. Danny helped BLOG with their
                                                                                                       in coffee-growing communities”
stage lighting, sound and visuals for their
                                                                                                       Kerry Parkin, Head of CSR, Costa

                                                        60
production of Oliver and the entire cast                                   hours of skills
were delighted that a company like Costa                                   training provided         On 12th December 2014, over four million
would support them to successfully run                                     to 30 prisoners
                                                                                                     people nationwide pulled on their festive
their production.

                                                        102
                                                                           Costa volunteers for      knitwear to support Save the Children’s
                                                                           Save the Children ‘Born   third Christmas Jumper Day. As a major
Another good example is Keech Hospice                                      to Read’ programme        partner, Costa commissioned an
in Luton, where our store teams worked
                                                                                                     illustrated children’s book called ‘The Best

                                                        306
together after hours to prepare a puppet                                   children learning to
                                                                           read with help from       Christmas Jumper’. The book was sold
show that they performed to families in
                                                                           Costa volunteers          across 1,400 Costa stores, with Costa
the hospice, bringing smiles to children
                                                                                                     donating £1.17 from each book sold
with life limiting illnesses.
                                                                                                     (retailing at £1.50), raising over £41,000.

Whitbread | Corporate Responsibility Report 2013/14                                                                                       Page 8
Another good year for Good Together - Corporate Responsibility Report 2014/15
Teams and Communities

  GOSH
  In the year...
  £794,000                            Raised by team
                                      member fundraising
                                      efforts

  £38,000                             Donated through our
                                      Raise and Match and
                                      Give and Match schemes

  £478,000                            Donated by
                                      Premier Inn guests

  £495,000                            Raised by Whitbread
                                      suppliers

  £20,000                             Donated by
                                      Beefeater guests

  £178,000                            Whitbread’s contribution
                                      through Match Giving

Whitbread | Corporate Responsibility Report 2014/15            Page 9
Customer Wellbeing

 We welcome over 25 million
 customers every month in
 the UK alone to our hotels,
 restaurants and coffee shops.
 As a responsible company we
 are committed to providing
 them with safe, good quality
 and sustainably sourced
 products.

Whitbread | Corporate Responsibility Report 2014/15   Page 10
Customer Wellbeing

Responsible Sourcing
We source products and ingredients from                                     We are committed to ensuring that all of
around the world, and our customers need to be                              our buying practices are carried out in the
confident that the people who produce and make                              most sustainable and responsible way possible,
these products are well treated and work safely                             and in 2014/15 we introduced our Responsible
without damaging the environment around them.                               Sourcing and Commodity Policies focused on
We work with companies that supply the quality                              ten main commodity categories. These policies
of product we require and source their products                             have been developed by working collaboratively
responsibly according to the standards we set.                              with our own suppliers, and in consultation with
These include upholding human rights,                                       NGOs and trade organisations.
compliance with animal welfare legislation,
supply chain security to minimise food fraud                                For full details of our policies please visit
and not polluting the environment.                                          www.whitbread.co.uk/corporate-responsibility

                                                                                                In the year...
Earlier this year Whitbread worked                      responsible sourcing practices to
with the leading organization in                        all stages of our supply chain and
sustainability databases, CRedit360,                    working with our direct suppliers to

                                                                                                129
to launch a rigorous assessment and                     ensure that the standards we set out
                                                                                                                   tier 1 suppliers on the
reporting system across its supply                      in our policies are communicated,                          CRedit360 database
chain. The new automated system                         measured and monitored effectively.

                                                                                                65
provides each supplier with their own                   We work on a principle of continual                        Responsible Sourcing
landing page on the database, where                     improvement and will only consider                         questionnaires on the
they are required to complete self                      disengaging with suppliers as a last                       CRedit360 database

                                                                                                10
assessment questionnaires (SAQ) for                     resort, preferring to deal with any                        commodity Policies
the Responsible Sourcing product                        issues and mitigate the risk of                            launched
specific policies that are relevant to                  non-compliance in a responsible
them and upload supporting evidence.                    and commercially viable way. By
                                                        doing this, we see improvement in
The new system enables suppliers                        performance over time, working with     “We knew that getting this process
to have a smooth transition into the                    our existing suppliers to meet our      and system to succeed would require a
Whitbread supply chain and the                          2020 target.                            collaborative approach. Only by working
                                                                                                with our suppliers can we tackle the
programme’s sophisticated risk rating
                                                        Early in 2014, we announced our         highly complex sustainability and
methodology provides us with an
                                                                                                resourcing challenges that we face as
assessment of each of our suppliers,                    commitment to only use the products
                                                                                                a large multinational business”
giving a red, amber, green rating.                      and services of Structural Timber
                                                                                                Mark Parker, CR Programme Manager,
Green indicates a supplier fully meets                  Association members in all future
                                                                                                Whitbread Hotels & Restaurants
Whitbread’s policy requirements and                     timber-based projects, which ensure
may only require improvement action                     materials and services are certified
                                                        to FSC and PEFC standards.              In November 2014, Whitbread
plans (IAP), Amber indicates that a
supplier requires corrective action
                                                                                                opened its first ‘hub by Premier
plans (CAPs) to get them up to our                                                              Inn’ hotel on St. Martin’s Lane
policy standards, whilst Red indicates                                                          in Central London. The hotel,
that a supplier audit is required.                                                              which is the first UK hotel to be
                                                                                                awarded a BREEAM ‘Outstanding’
Due to the complex nature of our                                                                rating, works with local suppliers
global supply chain, monitoring and                                                             for source many of its products,
controlling the conditions of each                                                              including beef and cheese.
individual who contributes to
supplying Whitbread is a challenge.
We are committed to bringing

Whitbread | Corporate Responsibility Report 2014/15                                                                                   Page 11
Customer Wellbeing

Menu development
& nutrition

As a responsible company,                               saturated fat reduction,
we aim to serve safe, good
quality and sustainably sourced
                                                        calorie reduction and removal
                                                        of transfats wherever possible,   In the year...
                                                                                          2
food and drink. We want to                              without impacting on product            star rating achieved
make it easy for our customers                          safety and quality. All of              by the SRA
to choose healthier eating                              our menus are free from
options as well as indulging                            artificial transfats, MSG, GM
                                                                                          No.1
                                                                                                best gluten-free
                                                                                                product range award
in the occasional treat, and                            products and ingredients,
believe we can make a positive                          irradiated ingredients and

                                                                                          30%
                                                                                                reduction in added
contribution towards customer                           mechanically-recovered meat.            sugar in Costa’s
health and wellbeing.                                   We are compliant with the new           Tropical Fruit
                                                        EU legislation which came into
                                                                                          150
                                                                                                calories or less in
As a signatory to the                                   effect in December 2014,                Costa’s ‘Mini Treats’
                                                                                                range
Government’s Responsibility                             relating to the provision of

                                                                                          500,000
Deal on Public Health, we                               allergen information for                          calories removed
continue to work towards                                consumers and employee                            every year from
                                                                                                          Thyme menus
meeting targets for salt and                            training to support this.

In September, the Sustainable Restaurant
Association, working in partnership with Costa,
launched a pioneering new ratings scheme for
tens of thousands of cafés across the UK. This
new rating considers not only the coffee that
is served, but also a café’s entire operations in
reducing their environmental impact, treating
their employees fairly and supporting their local
communities. The SRA awarded Costa a ‘2 Stars’
rating for achieving an excellent standard of
sustainability and praised Costa for its sourcing
of a wide range of ingredients from British
producers, seasonal sourcing policies and
waste management practices.

In the Autumn, Costa launched
its ‘Mini Treats’ range, which are
portion controlled, smaller cakes
such as the ‘Chocolate & Raspberry
Brownie’ and ‘Strawberry Viennese
Biscuit’, containing less than 150
calories each. The range is proving
popular with customers looking to
reduce their portion size and
calorie intake, but still allows
them to enjoy a quick treat.
Whitbread | Corporate Responsibility Report 2014/15                                                                   Page 12
Customer Wellbeing

     ...best gluten-free product
     range in the Coffee House
     Chain category at the
     FreeFrom Eating Out Awards.

Over the year, Premier Inn ramped                       In November 2014, Costa picked up          This tool has already been tested
up the rollout of Rational Combi ovens                  the award for the ‘Best Gluten-Free        on a number of products including
across its in-house Thyme restaurant                    Product Range’ in the Coffee House         Costa’s Tropical Fruit Cooler. Following
estate and they are now in use in over                  Chain category at the FreeFrom             assessment, the drink was reformulated
50% of Premier Inn kitchens. This                       Eating Out Awards. In the year, Costa      to replace added sugar with the natural
state-of-the-art oven operates with                     introduced its first gluten-free savoury   sweetener, Stevia, which resulted in a
a specially designed tray that can                      product, the British Chicken and Basil     30% reduction in added sugar content.
simulate grilling, frying and baking,                   Salad Wrap, to compliment its existing
which means that many food items                        gluten-free sweet range. We continue       Based on the findings shown by
can be cooked at the same time                          to develop further products for            Costa’s application of this tool,
with no transference of flavour and,                    customers with gluten intolerances         Whitbread Hotels & Restaurants aim
importantly, zero oil or fat needs to                   and launched the popular Turkey            to adopt it to analyse its menus and
be added. Any excess fat or grease                      and Cranberry gluten-free wrap last        inform future menu development.
is expelled from the product during                     Christmas. In addition, Premier Inn’s
cooking and is safely removed as part                   Thyme restaurants have introduced
of the oven’s cleaning cycle. As a                      gluten-free bread for breakfast and        “This new tool means we can make
result, these ovens produce cleaner                     gluten-free sauces on their main menu.      informed decisions about our product
and healthier results compared with                                                                 range, take action where we need to
traditional cooking methods, and have                   Costa has developed an internal             reduce added sugar and develop healthier
resulted in a significant reduction                     assessment tool, which has been             alternatives to ensure we have a wide
                                                                                                    range on offer to our customers”
of fried food items, removing some                      independently verified and enables
                                                                                                   Jane Treasure, Head of Food & Beverage
500,000 calories every year from                        us to assess and rate the nutritional
                                                                                                   Development, Costa
Thyme menus.                                            content of our food and drink
                                                        products. This information will be
                                                        used to develop products to create
                                                        a nutritionally balanced menu that
                                                        meets customer needs and desires.

Whitbread | Corporate Responsibility Report 2014/15                                                                                     Page 13
Energy & Environment

At Whitbread,
we are passionate
about looking at
ways we can
improve the
sustainability of
our sites through
innovative design
and construction

Whitbread | Corporate Responsibility Report 2013/14   Page 14
Energy & Environment

Achieving Environmental
Excellence
                                                                                                       £1.5 million
At Whitbread our goal is to be a successful business
without impacting our environment. This principle
runs deeply through the strategy and culture of our
company and is closely connected to the motivation
of our teams. Our targets for reducing carbon and
                                                                                                        sustainable profit contributions
water consumption, and increasing recycling rates are                                                   through Whitbread’s energy
ambitious, and we relentlessly strive to set a standard                                                 saving programmes
of environmental leadership for the hospitality sector.

                            2014/15 Performance/£1m turnover                                             2020 Target (reset in April 2015)

CARBON                      36.00%* improvement in carbon                                                Reduce carbon by 15%
                            efficiency against 2009 baseline                                             (against a new 2014/15 base line)

WATER                       29.91% water consumption reduction                                           Reduce water by 20%
                            against 2009 baseline                                                        (against a new 2014/15 base line)

WASTE                       83.98% of operational waste                                                  Increase direct operations recycling rate to
                            diverted from landfill                                                       80% across hotels, restaurants and coffee shops

*Inclusive of new Costa stores within the 2014/15 period of which we did not have data for at the
time Whitbread’s Annual Report was published.

Bringing Whitbread teams with us on this
ambitious environmental commitment is vital.
Team member training and education continues
                                                                                                     In the year...
to be a vital feature of our environmental
                                                                                                     £1.1m
                                                                                                                                                          electricity utility budget
                                                                                                                                                          cost savings in hotels and
planning, helping teams to monitor and                                                                                                                    restaurants
measure the energy they are using.
                                                                                                     £1m
                                                                                                                                                          gas utility budget cost
                                                                                                                                                          savings in hotels and
                                                                                                                                                          restaurants

                                                                                                     £306,000
                                                                                                                                                          water utility budget cost
                                                                                                                                                          savings in hotels and
                                                                                                                                                          restaurants

                                                                                                     3.24%*
                                                                                                                                                          Improvement in carbon
                                                                                                                                                          emission efficiency points
                                                                                                                                                          (relative to sales)

                                                                                                     5.81%*
                                                                                                                                                          improvement in carbon
                                                                                                                                                          emission efficiency points
                                                                                                                                                          (relative to sales)

                                                                                                     8.6m
                                                                                                                                                          million kWh of energy
                                                                                                                                                          saved from Energy
                                                                                                                                                          Efficiency projects

                                                                                                     4,500
                                                                                                                                                          tonnes of carbon
                                                                                                                                                          saved by Carbon
                                                                                                                                                          Reduction Projects

                                                                                                     125,000
                                                                                                                                                          hessian coffee sacks
                                                                                                                                                          recycled fror Premier Inn
                                                                                                                                                          carpets underlay

                                                                                                     60%
                                                                                                                                                          renewable energy
                                                                                                                                                          purchased

                                                                                                     81%
                                                                                                                                                          waste diverted from landfill
                                                                                                                                                          in Costa company-owned
                                                                                                                                                          stores

To read our scope on corporate responsibility reporting visit                                       *whilst opening 32 new hotels, 4,400 new bedrooms and 4 new restaurants and 120 UK Costa stores
www.whitbread.co.uk/corporate-responsibility/ourapproach/Reports-and-downloads

Whitbread | Corporate Responsibility Report 2014/15                                                                                                                                      Page 15
Energy & Environment

An award-winning year
Whitbread and Waterscan, the strategic business partnership                                          “Whitbread has shown great commitment
which helps Whitbread work towards fulfilling its commitment                                         to addressing their water usage and deserve
to reducing water consumption, won two outstanding awards                                            full credit for making sustainability a priority”.
in 2014 – the ‘Water Management’ prize at the Sustainability                                         Nick Hayes, Commercial Director
Leaders Awards and ‘Water Efficient Project of the Year’ at                                          of Waterscan
the Energy Awards. The esteemed judging panel commented
particularly on the scale of greywater recycling undertaken by
Whitbread, which they described as “bold and impressive”.

                                                        Whitbread is also proud to have been recognised for its
                                                        environmental efforts, being the first UK hospitality company
                                                        to receive the prestigious Carbon Trust Triple Standard Award
                                                        for significant achievements in carbon, water and waste
                                                        reduction. The re-certification process undertaken during 2014/15
                                                        required Whitbread to demonstrate actual reductions in energy
                                                        and water consumption and waste going to landfill, in addition
                                                        to even greater enhancements to our internal governance,
                                                        management and sustainability practices.

In November 2014, we opened
our first “hub by Premier Inn”
hotel, situated in London’s
Covent Garden. The first of an
innovative new city-centre brand,
hub by Premier Inn St. Martin’s Lane
was rated ‘Outstanding’ at design
stage by BREEAM – the world’s
foremost environmental assessment
rating system for buildings. It is
the first hotel in the UK to achieve
the top ‘Outstanding’ rating, which
requires a minimum score of 85%,
compared to the 70% required for
an ‘Excellent’ rating.

The site uses 100% renewable                            The local cycle racks and green              We have 35 BREEAM certified
certified energy supplied from the grid,                travel plans at the site enable guests       Premier Inn hotels.
from a variety of sources, including                    to positively impact the local               In 2014/15 we achieved the following
wind, hydro and bio-mass fuel.                          environment and community, whilst            new BREEAM certifications:
During its renovation, efficient fabric                 the hotel has a bio-diverse roof with        Outstanding – hub by Premier Inn,
insulation was installed, along with                    a mix of 12 wildflower species that          St. Martin’s Lane, London
variable refrigerant flow air source                    help with water attenuation and              Excellent – Tamworth, Edmonton,
heat pumps, which heat and cool hotel                   increases the wildlife.                      London City (Aldgate)
guestrooms, and low energy LED                                                                       Very Good – Wigan, Perth, Harrogate,
lights, all of which have helped achieve                “I’d like to offer my congratulations to    Hackney, Wandsworth, Holborn, Hendon,
a 24.5% reduction in regulated CO2                                                                   St Pancras, Cambridge, Winchester
                                                         Whitbread. This is a real achievement at
emissions against the 2010 Building                      the hub by Premier Inn, Covent Garden. It   We have 16 BREEAM certified
Regulations.                                             shows a strong commitment to innovation     Costa Stores.
                                                         and sustainability and provides an          In 2014/15 we achieved the following
To reduce its water usage, the                           exemplar for the industry as a whole.”      new BREEAM certifications:
hotel incorporated an integrated                        Gavin Dunn, Director of BREAAM               Excellent – Hereford Old Markets
water strategy during construction,
installing taps with low flow                                                                        Very Good – Bristol Abbeywood,
                                                                                                     York Vangarde, Taplow, Bedford
regulators and showerheads.                                                                          Interchange, East Putney, Sheffield
                                                                                                     Meadowhall

Whitbread | Corporate Responsibility Report 2014/15                                                                                            Page 16
Energy & Environment

During 2014/15, Whitbread was the first UK
company to test a fuel cell technology boiler to
pre-heat a hotel’s hot water supply, whilst generating
on-site electricity. Fuel cells represent the next
evolution in Combined Heat and Power (CHP)
technology and are almost 96% efficient in reducing
the amount of fossil fuel needed to power the heating
plant. This technology runs 24 hours a day at
Glastonbury Premier Inn, meeting 20% of the hot
water demand, and is expected to save around
£17,000 over a 10 year operating period.

In 2014, Whitbread partnered with                       Continually looking at ways to           air ventilation and natural light by
international energy company ENN                        innovate, Whitbread launched its         incorporating openable roof lights,
and logistics firm Kuehn + Nagel to                     first electric vehicle at Quiet Cities   solar shading and ventilation grilles in
open the first HGV Liquefied Natural                    2014, the first global summit            windows. Construction work on this
Gas refuelling station in the UK, at                    dedicated to quieter deliveries          exciting new development is expected
Kuehn + Nagel’s depot in Welling-                       in urban environments. Based at          to be under way by October 2015.
borough, Northamptonshire. The                          Whitbread’s Greenford depot, the
Wellingborough depot was the first                      truck supplies both Costa and            In December 2014,
deployment in Europe of a 45’ ISO                       Premier Inn sites across London,         Whitbread was recognised
containerised ‘plug and play’ LNG                       working seven days a week on
                                                                                                 by London Mayor Boris
refuelling station, more than 200 of                    double shifts, and it is estimated
which already operate successfully in                   to save up to 21 tonnes of CO2 per       Johnson as one of 59
China. The station is now being used                    year. Plans are being laid to increase   companies joining London’s
regularly to refuel 16 dual-fuel, natural               the size of the electric vehicle fleet   first Business Energy
gas-powered HGVs, which represent                       and identify further potential           Challenge. The initiative
80% of Whitbread’s logistics fleet                      electric vehicle routes.                 aims to recognise and
around the UK. We expect to make
                                                                                                 reward companies that
16-20% CO2 emissions savings on                         At Whitbread, we are passionate
each dual-fuel LNG-powered truck,                       about looking at ways we can             have delivered the steepest
achieving 80% greater air quality                       improve the sustainability of our        cuts in energy use and the
against a 100% diesel run engine.                       sites through innovative design and      biggest switch to clean
                                                        construction and in September 2014       energy in London.
                                                        we were excited to be granted
                                                        planning permission for our most         As we open new hotels, restaurants
                                                        ambitious low energy, eco-hotel yet.     and coffee shops, it is important that
                                                        The 52-bedroom Premier Inn hotel         we engage with our suppliers to help
                                                        and Brewers Fayre restaurant will        them measure and reduce their
                                                        open on the Lincs Gateway site in        carbon emissions. In 2014, we
                                                        Spalding, Lincolnshire and will          implemented a new supplier data
                                                        comprise the highest standards of        collection tool with our partners,
                                                        energy efficient building design and     CRedit360, which enables us to
                                                        innovation. Design will be modelled      collate, manage and report on the
                                                        on the principles of Zero Carbon         sustainability performance of our
                                                        Allowable Solutions and PassivHouse,     suppliers. It will provide a baseline
                                                        and a key feature will be the            of the carbon footprint across our
                                                        introduction of ‘Insulating Concrete     supply chain and help to share the
                                                        Formwork’, which offers a high level     responsibility of reducing carbon
                                                        of insulation, improved air tightness    across our suppliers’ operations.
                                                        and improved thermal bridging.
                                                        The design achieves optimal natural

Whitbread | Corporate Responsibility Report 2014/15                                                                               Page 17
Independent Assurance of
Whitbread’s Corporate
Responsibility Reporting 2015
ASSURANCE STATEMENT

September 2015
Corporate Citizenship’s Assurance Statement

Independent Assurance of Whitbread’s corporate
responsibility reporting 2014/15: ISAE 3000 statement

The nature of the assurance
This statement is prepared by Corporate Citizenship for the Main Board Committee of
Whitbread.

The subject matter covered by this report is the environmental information contained in
Whitbread’s Corporate Responsibility Report 2014/15. The data reported refers to the twelve
months to 28th February 2015.

Whitbread is entirely and solely responsible for the production and publication of the
information assured, Corporate Citizenship for its assurance.

The opinions expressed in this statement are intended to extend understanding of
Whitbread’s environmental performance and should not be used or relied upon to form any
judgments, or take any decisions, of a financial nature.

The assurance standard
Our assurance follows the guidance laid out in the International Standard on Assurance
Engagements 3000. The criteria used are the GRI Principles for Ensuring Report Quality.

The assurance scope
Our work has involved reviewing selected environmental claims and data included in the
report against the GRI principles. This includes, but is not limited to Whitbread’s:

      Carbon efficiency (Scope 1 and 2 tonnes Co2e per GBP million turnover)

      Water efficiency (cubic metres per GBP million turnover)

      Percentage of total waste diverted away from landfill

The data relates to Whitbread’s Group performance (Whitbread Hotels and Restaurants
and Costa) in the UK only. It excludes Whitbread’s joint venture and international
operations.

The work programme
The assurance work was commissioned in June 2015 and was completed in September
2015. Detailed records were kept of meetings, assurance visits and correspondence
relating to the assurance. A team of three, including two Associate Directors and a
Consultant, undertook the assurance and commentary process. The team has a variety of
professional and technical competencies and experience. For further information about
Corporate Citizenship please refer to our website www.corporate-citizenship.com.

Page 1 of 2                                        © Corporate Citizenship Sustainability, Simplified.
Corporate Citizenship’s Assurance Statement

Our work has involved, but not been limited to, the following elements:

   1. Detailed interviews with employees responsible for delivery of Whitbread’s
      environmental performance that is part of the corporate responsibility programme
      (Good Together). This was in order to understand the overall process of
      environmental management and to discuss key trends and the process for
      collecting, validating and consolidating the data;

   2. Checks on a sample basis of consolidated data to underlying records to check for
      consistency and accuracy of reporting;

   3. Reviews of the systems used to record and analyse environmental performance
      data in order to assess robustness;

   4. Examination of the 2014/15 Corporate Responsibility Report at set stages in its
      development to assess the environmental reporting content against the Global
      Reporting Initiative’s Principles for Determining Report Quality, namely: balance,
      comparability, accuracy, timeliness, clarity, and reliability of reporting.

Our experience and independence
Corporate Citizenship is a specialist management consultancy, advising corporations that
seek to improve their economic, social and environmental performance around the world
and is a leading assuror of corporate responsibility and sustainability reports. This is the ninth
year that Corporate Citizenship has provided independent assurance services in relation to
Whitbread’s corporate responsibility reporting. We have provided no other services to
Whitbread during the period under review.

Our conclusion
Based on the scope of work and assurance procedures performed, nothing came to our
attention that causes us to believe that the selected performance data described above is
materially misstated.

Corporate Citizenship

London

21st September 2015

Page 2 of 2                                           © Corporate Citizenship Sustainability, Simplified.
Corporate Citizenship
5th Floor, Holborn Gate
26 Southampton Buildings
London, WC2A 1PQ
United Kingdom
E: mail@corporate-citizenship.com
T: +44 (0) 20 7861 1616

Website: www.corporate-citizenship.com
Twitter: @CCitizenship
LinkedIn: Corporate Citizenship Company

© Corporate Citizenship Sustainability, Simplified
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