Enabling People to Live and Work Well - Sustainability Report 2016/17
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Contents 3 12 Our Business Customer Wellbeing 13 4 Customer Wellbeing Message from our Contents Chief Executive 15 Responsible Sourcing 6 Whitbread’s 17 Sustainability Environment Approach 21 Future Strategy 7 Team and Community 23 8 Our Performance Our Teams 9 24 Commitment to Partners our Communities 25 Assurance Statement This report has been prepared in accordance with the Global Reporting Initiative (GRI) Consolidated set of GRI Sustainability Reporting Standards 2016, Core requirements. Our GRI Content Index can be downloaded from our Sustainability reporting web page. 2 Whitbread PLC Sustainability Report 2016/17
Our Business £3,106m Group Revenue Whitbread PLC is the owner of the UK’s leading hotel chain, Premier Inn, and the UK’s Our Business £565.2m Underlying Profit Before Tax favourite coffee shop, Costa, as well as restaurant brands Beefeater, Brewers Fayre, Bar 15.2% Return on Capital & Block and Table Table. Whitbread PLC employs c. 50,000 people in over £2.7m Achieved 4,700 outlets, with its well-loved brands making everyday experiences special for over 28 million raised for GOSH Premier Inn 71% customers in the UK every month. Whitbread has outlined growth milestones for 2020 Clinical Building Dow Jones to increase the number of Premier Inn UK rooms to Sustainability around 85,000, and to achieve global sales of around Index (DJSI) £2.5bn for Costa. Our core values are Genuine, Confident and Committed. Whitbread PLC is listed on the London Stock Exchange £1.86m BITC and is a constituent of the FTSE 100. Environmental If you’re interested in finding out more about Leadership raised for the the work that our teams do for our Sustainability Award 2016 winner Costa Foundation programme, please visit the website. 3 Whitbread PLC Sustainability Report 2016/17 All achievements above relate to 2016/17.
Message from our Chief Executive I am delighted to share our Message from our Chief Executive 2016/17 Sustainability Report, which details our strategy, commitments and progress towards creating an ever more sustainable and successful business. Whitbread celebrates it’s 275th This has been a year of Anniversary this year and whilst achievement and evolution for we have always developed and our sustainability programme changed with the times, our and I would like to thank core values of investing in people everyone for the effort and and being a force for good in energy they dedicate to this our communities remain as true important work. We have made today as they did in 1742. good progress against our targets (which you can read about in full As the UK’s largest hospitality in this report) and I’ve outlined company with 50,000 employees some highlights below. serving some 28 million customers every month, sustainability is core We continue to be committed to what we do and is integral to to helping all of our employees our business strategy and long- reach their full potential in a term commercial success. Our place where there are no barriers sustainability approach focuses to entry and no limits to ambition. on delivering programmes linked Over 750,000 training and to the most material issues for development courses have been our business and we continue to completed by our teams, while be mindful of external factors and our ground-breaking WISE how shifting consumer and societal (Whitbread Investing in Skills trends can impact on our business. & Employment) programme is overseeing thousands of apprenticeships, work placements and work experiences. 4 Whitbread PLC Sustainability Report 2016/17
Message from the Chief Executive continued Message from our Chief Executive Thanks to the passion of our As a large and growing business it I am excited about how our ‘Force This report relates to our UK business for the period 1 March 2016 to the end of February teams we are making a meaningful is important to us that we treat the for Good’ programme will help us 2017 (referred to in this report as 2016/17). contribution to the communities planet and people with respect. become an even greater place to Any exceptions are stated in the report. within which we work. I’d This year, we moved to source all work, build brands that people especially like to mention the the electricity for our UK owned love and create a forward-looking, fantastic job our teams are doing properties from renewable sources; sustainable and successful business. raising funds for our chosen we opened one of the world’s most charities of Great Ormond Street sustainable roasteries in Basildon Hospital Children’s Charity and the and launched a nationwide Costa Foundation. recycling scheme across our 2,000 Costa stores to recover and recycle This year we surpassed our goal to takeaway cups, not just ours but raise £7.5 million for GOSH by 2017, our competitors too. We have been which will culminate in the opening working hard, together with our of the new Premier Inn Clinical suppliers, to ensure we have the Alison Brittain Building. While our Costa most rigorous and robust sourcing Foundation has completed over 70 standards in place. We were Chief Executive different school projects in coffee pleased to be the first national producing countries, providing hotel and restaurant chain certified over 60,000 school places. by the Marine Stewardship Council for serving sustainable fish and We know our customers want this year we have committed to more choice and are increasingly being cage free on whole shell making more informed decisions eggs by 2020. about the way that they eat, drink and live and we are committed to I’m delighted to announce that we supporting them. We are actively have updated our sustainability reformulating our food and drink, programme for 2017/18 to focus as well as offering healthier dishes and lead on our most important and providing customers with people, social and environmental clear and transparent information issues. We’ve named it ‘Force about the products they are buying. for Good’, and it will support the millions of people we reach “Whilst we have always evolved every day, our customers, teams, suppliers and communities, and changed with the times, to live and work well. our core values of investing in people and being a force for good in our communities remain as true today as they did in 1742.” Alison Brittain 5 Whitbread PLC Sustainability Report 2016/17
Whitbread’s Sustainability Approach Our Sustainability programme Our Sustainability Approach Whitbread’s Sustainability Approach We ensure our strategy is We established our current supported by appropriate is a fundamental part of our sustainability programme in 2009 and have been delighted with how governance structures. We are proud that responsibility for philosophy and the way we run it has been embedded across our operations, making significant driving the Sustainability programme forward and delivering our business. Centred around progress and achieving key targets. As we run our business, against our targets is led by our senior leaders and is an important the three pillars of ‘Team & the impact we have on the communities and environment remit of the PLC Board and our executive management teams. Communities’, ‘Customer around us is of critical importance, The 2020 targets we set ourselves Wellbeing’ and ‘Environment’ and being recognised as a responsible organisation is crucial ensure we continue to take a broad view of sustainability that we are committed to driving to our long-term strategy. reflects our business priorities and our determination to continue to Sustainability forward. Under our current approach, we have focused on three key areas: deliver outstanding performance. Team and Community, Customer Our cumulative performance Wellbeing and the Environment. against these targets is reported We have created leading on page 23 . community and employment programmes, raised millions for The scope for this year’s report the charities we support and covers our achievements in the made significant improvements year and the outputs of our to our environmental and sourcing current programme’s three key processes. In addition, we have pillars of Team and Community, fully embedded ISO14001 at Costa Customer Wellbeing and Express and ISO50001 at our new Environment. state of the art Costa Coffee Roastery. Whitbread was named winner of the ASDA Environmental Leadership Award 6 Whitbread PLC Sustainability Report 2016/17
Team and Community We know our business can only be successful if the communities Team and Community in which we operate thrive. 314 £2.7m Customer Wellbeing full apprenticeships raised this year for Great achieved Ormond Street Hospital Children’s Charity £1.86m 12,000 raised for the Volunteer hours by Costa Environment Costa Foundation team members this year 7 Whitbread PLC Sustainability Report 2016/17 All achievements above relate to 2016/17.
Team and Community continued Our Strategic Approach With our partners, we have • Support for Whitbread’s We are committed to strengthening committed to reinvest the Levy suppliers to invest in developing Team and Community the communities where our into our current programmes, the skills of their own workforces. restaurants, hotels and coffee increasing the scope and potential shops operate. As one of the UK’s they offer. Outputs and Successes largest employers, operating across We are delighted with the success communities both in the UK and WISE of WISE, and this year (as with around the world, we are passionate In 2012, Whitbread created WISE previous years) it has exceeded about upskilling, recruiting and (Whitbread Investing in Skills and expectations: retaining great people so they are Employment), a recruitment, •£ 1.86m invested in our WISE empowered to grow long-term training and educational scheme, apprenticeship programme. careers within our business. We to speed-up, scale-up and join-up •3 14 full apprenticeships achieved also recognise that we can make Whitbread’s engagement with the and 833 in learning. a huge difference in our local education system. Our aspiration communities, so we are proud that is to create employment •S ince its inception, over 11,800 our teams have made a significant opportunities and support young qualifications have been awarded. £1.86m impact by volunteering and people’s entry into employment. • In 2016/17, we achieved a WISE fundraising for the charities which This investment also ensures that first - following a successful adult Customer Wellbeing we collectively support. Thanks to our business develops a pipeline of work placement from HM Prison invested in WISE the continued commitment of our young talent to enable planned Sudbury, we recruited a full-time Apprenticeship programme teams, our charitable and community growth. Learn more about Paige’s barista. As part of this programme, contributions are delivering well successful journey to ‘Premier Inn’s the individual also had the ahead of their targets. apprentice of the year’ here. opportunity to complete a Level Two Apprenticeship. Our Teams Since its implementation, WISE We need capable, dedicated has gone from strength to strength employees to sustain the growth and now offers the following: and success of our business. For • Work experience and school many years, we have worked visits for 11-18 year olds. closely with government and • Employment placements for industry leaders to help influence NEETS (young people not in continued investment in nurturing education, employment or skills and developing careers training), which usually results within the hospitality sector. We in gaining an NVQ Level 1 in believe this will support fledgling Hospitality. Environment careers, break down barriers for • Apprenticeships and functional young people, and provide skills for team members who opportunities for people with no want to gain nationally employment, education or training. Since WISE’s inception, over recognised qualifications. All 11,800 We fully support the Apprenticeship apprentices are employed on Levy and are excited for the permanent contracts, with great prospects it will bring many people. progression opportunities, and are paid the National Living Wage. qualifications have been awarded 8 Whitbread PLC Sustainability Report 2016/17
Team and Community continued Commitment to our Communities We are very proud of the The work that we do places us at success of our partnership and Team and Community the heart of many different are delighted that to date, we communities. We are committed to have raised in excess of £8.9m. supporting the areas in which we We know that this success has operate, leaving a positive and only been achieved because of the lasting legacy. Our team members commitment and dedication of our work incredibly hard to support team members who have worked their communities, near and far, by tirelessly to raise money for GOSH. volunteering as well as raising money for Premier Inn & Outputs and Successes Restaurants’ chosen charity, Great •£ 2.7m raised in the year Ormond Street Hospital Children’s for GOSH. Charity, and Costa’s dedicated •T he new Premier Inn Clinical £2.7m charity, the Costa Foundation, as Building will provide Great well as other charities they Ormond Street Hospital with personally support. much-needed facilities such as In the past year, our teams have a number of in-patient wards, raised for GOSH Customer Wellbeing made us proud with their efforts a surgery centre, a respiratory in 2016/17 and our customers and suppliers centre and a specialist centre have been enormously generous, for children with severe skin £305k raising millions of pounds to help conditions and infectious improve the lives of children, both diseases. Once the building is in the UK and around the world. complete, it is anticipated that the Hospital will be able to treat donated by suppliers up to 20% more children. Great Ormond Street Hospital Children’s Charity £8.9m Premier Inn & Restaurants have supported Great Ormond Street Hospital (GOSH) children’s charity raised for GOSH as their national charity partner since 2012, when it was selected since start of via a team member vote. We fundraising project wanted to make a significant impact with our new charity Environment partner and set stretching targets from the onset. We committed to raise £7.5m by 2017 to build a new, much-needed facility, the Premier Inn Clinical Building. 9 Whitbread PLC Sustainability Report 2016/17
Team and Community continued Costa Foundation Outputs and Successes We are tremendously proud • We have raised over £12 million 72 Team and Community of the work that the Costa for the Costa Foundation since Foundation has achieved over the its inception 10 years ago. past 10 years, building and funding • The Foundation now supports different school school projects in coffee-growing a total of 72 different school communities around the world. projects across projects across nine countries; The Foundation’s strategic mission since it began, over 60,000 9 is to improve the life chances of children have been able to access boys and girls by providing them quality education. with the opportunity for a quality • We also ran our first collaborative education. Foundation schools countries deliver both academic and partnership with Project Waterfall as part of UK Coffee extracurricular programmes that Week. Costa raised over £82,000 enhance health, gender equality which was used to support water and environmental awareness. projects delivered by the Costa Learn more here. Foundation on behalf of Project Waterfall in Uganda. Customer Wellbeing We have a target to raise £20m for the Costa Foundation by 2021 and complete 100 school projects by 2020. 12,000 community hours volunteered by Costa team members 600 Costa stores Environment collected litter for Clean for the Queen over 1 weekend 10 Whitbread PLC Sustainability Report 2016/17
Team and Community continued Community Investment achievement marked across The Costa Community Programme Community, Sourcing and Team and Community continues to empower team Environmental sustainability members to make a positive criteria. difference to their local communities. This year we Derwen College and Premier Inn established a partnership with We are thrilled with the success Police Community Clubs of Great of our project between Derwen Britain (PCCGB) to run our first College, Premier Inn and our Costa Reading Week. The supplier Novus. Derwen College educational book series Barney is a specialist education centre & Echo produced by PCCGB was for young people with learning donated to local schools and book difficulties and disabilities. It clubs were hosted in-store to equips young people aged 16-25 encourage parents and carers to with the skills they need to be spend one-on-one time reading independent and prepares them with their children. for the workplace. Students are For the second year, we were given work experience Customer Wellbeing proud to sponsor and support opportunities in local Premier Keep Britain Tidy’s national Inn sites, which hopefully then anti-litter campaigns, which in become permanent positions 2016 was the Clean for the in our hotels across the country. Queen campaign. To make the training as effective as possible, space in the college Outputs and Successes was converted to look like a Premier Inn hotel. • As part of reading week, 500 of our Costa store teams Building on the success of this donated educational books current format, we are now looking to local schools. at opportunities to partner with similar colleges and to strategically •6 00 of our Costa stores took develop the programme further. part in the Clean for the Queen Learn more here Anti-Litter campaign. • 1 2,000 community hours were Outputs and Successes volunteered by Costa team •S ince the partnership began Environment members this year. in 2013, 26 students have been • The Costa Community through the programme. 26 Programme received gold in the •F ive students have gone on Corporate Engagement Awards. to take up permanent roles •C osta attained Two Star with Premier Inn. Sustainable Restaurant students through the Association Rating for the Derwen programme second year running, which is an “excellent” sustainability 11 Whitbread PLC Sustainability Report 2016/17
Customer Wellbeing As a values-led business, we are committed to ensuring Team and Community our supply chain reflects the principles we uphold on a day to day basis. Customer Wellbeing 1st 21% Reduction in sugar UK hotel and restaurant chain to be Marine Stewardship Council across Costa Ice range (MSC) certified Environment Good Egg Award – commitment to Cage- Mapped risks of free whole shell eggs by modern slavery in our 2020 and ingredient egg global supply chain by 2025 12 Whitbread PLC Sustainability Report 2016/17
Customer Wellbeing continued Our Strategic Approach customers are better educated Making sure our customers have when making choices around what they are eating and drinking. Team and Community the utmost confidence in the integrity of our products is at the They are increasingly looking for heart of our Customer Wellbeing healthier and lighter options and strategy. We acknowledge that our menu ranges should reflect environmental risks and global changing consumer tastes. We are inequality are making operating a committed to introducing and business more complex, however updating foods that reflect new we remain fully committed to and emerging consumer needs ensuring our products and and preferences and to clear and services are sourced responsibly transparent choices for customers. and ethically with the wellbeing We are actively reformulating of our guests and customers at dishes to make them healthier the heart of every product. Our where possible, whilst working strategy takes a two-pronged with our supply chain to do so, as approach: Customer Wellbeing well as providing greater choices and Responsible Sourcing. The in our new menus, together with Customer Wellbeing former ensures our hotels, improved nutritional information Healthier restaurants and coffee shops offer available on our websites. products that offer a healthy nutritional balance, and the latter As operators of 650 restaurants maintains a traceable, sustainable and over 2,200 coffee shops in the food choices, sugar, UK, we offer our customers choice and ethical supply chain. salt and saturated and transparency through our fat reduction Customer Wellbeing work on: At Whitbread, we recognise the • Removing and reducing: ongoing concern childhood reformulation of the food obesity presents to our society. and drink that we serve. We are committed to working in • Introducing credible healthier partnership with Government and choices. industry partners to ensure • Providing clear, meaningful and 44 progress is made on this important easily accessible information for issue. We also understand that our guests. Environment products have had salt reduced 13 Whitbread PLC Sustainability Report 2016/17
Customer Wellbeing continued Sugar reduction has been a key Outputs and Successes priority for Costa and significant •W e have achieved 21% less reductions have been made in our 42% Team and Community sugar in our Costa Ice range. drinks range. We have publicly •W e now use 42% less sugar in committed to reducing added our Chai Latte which had the sugar across our beverage range highest added sugar on our sugar reduction by 25% by 2020. We also launched menu. This has been achieved in Chai Latte the trial (in selected stores) of our without any changes in taste and It’s All Good range, a selection of quality and have been well lighter food alternatives specifically received by our customers. Our for our customers who are looking Costa food range also includes for a change from the traditional products which have fewer than sandwich lunch. We are also 250 kcals per portion. working towards the government set salt reduction target. •A t our restaurants, our children’s food and drink offer has been positively received by the Soil Association in their Out to Lunch survey where Beefeater and Customer Wellbeing Brewers Fayre were recognised for their improvements to the quality and nutrition of the food offered. We are continuing to work with them so we can build on this achievement. 1 of your 5 a day Environment 14 Whitbread PLC Sustainability Report 2016/17
Customer Wellbeing continued Responsible Sourcing the risks of modern slavery across Whitbread is committed to its business. This has been achieved by undertaking detailed Team and Community sourcing products responsibly and we work with suppliers who can risk mapping of its food and both meet the quality and quantity beverage, supplies and services, STOP THE TRAFFIK of product we require, and source their products according to the and property supply chains and supporting the organisation to has also provided bespoke standards we set. Our Responsible Sourcing ‘Policy’ defines Whitbread’s develop its response to identified risks. training to the procurement minimum standards and the basic principles of co-operation that we This helps us ensure we know where our supply chain is most department across all brands; require from all of our suppliers and business partners. at risk of modern slavery and forced labour, have the right tools training was delivered to all Modern Slavery Act in place and the right processes in place for dealing with issues if supplier-facing staff, including We are a values-led organisation and we treat our employees they are identified. Through our partnership, we directors, heads of buying, equally and respect their human created a heat map of forced Customer Wellbeing rights. It is important these values labour risk, which we have used to senior buyers, buyers and are reflected in our supply chain and we have gone to great lengths prioritise our ethical audit schedule, making sure that our buying administrators. Through to ensure that this is the case. We believe the Modern Slavery Act is resource and efforts are focused, targeted and deliver the maximum the adoption of this systemic one of the most important pieces of responsible business legislation positive impact possible. We are now working through the results to be implemented in recent times, to develop a strategic response for approach, Whitbread and have established an important each supplier identified as high risk. partnership with Stop The Traffik demonstrates leadership and third party ethical auditing To support our work in this area and provide more detail of our companies. STOP THE TRAFFIK in its sector. has worked closely with Whitbread work, we have also published our first modern slavery report, which to proactively identify and address can be found here. Environment 15 Whitbread PLC Sustainability Report 2016/17
Customer Wellbeing continued Our coffee is Commodities Outputs and Successes 100% We currently source many • To reduce risk within our supply Team and Community different products from our chain, each supplier identified as suppliers around the world, across high risk is now being taken Rainforest a number of commodities, each through a process of individual facing their own ethical and supply chain analysis including Alliance CertifiedTM sustainability risks. We have an independent third party audit. worked with sustainable sourcing • 100% of our coffee is Rainforest experts and appropriate NGOs to Alliance CertifiedTM. identify and create definitive •A ll of the fish we buy directly is policies for our high risk sustainably sourced and we were commodities (cotton, coffee, awarded the Marine Stewardship timber, palm oil, meat and fish). Council (MSC) Chain of Custody Our Product Specific policies Standard. This makes us the ensure that we minimise our largest hotel and restaurant impact on the planet and the chain in the UK to serve MSC welfare of the animals in our certified fish. supply chain is protected. Customer Wellbeing • In September 2016, Whitbread We remain committed to achieving announced a commitment to our Group 2020 target of having move to only purchase cage-free our critical commodities 100% whole shell eggs by 2020 and accredited against robust ingredient eggs by 2025. As a cage Committed to purchase standards. Last year we introduced result, we have been awarded the a new system for measuring and Compassion in World Farming monitoring our critical commodities Good Egg Award. supplier base which has helped us free make good progress against our •W orking in Partnership with targets. However, we realise we Cotton Connect, we have have more to do, and are also mapped our cotton supply chain for Premier Inn down eggs and ingredient egg working to improve our audit to the farm level. and assurance processes. by 2025 •W e have developed our Animal Welfare Policy further with specific KPIs for measuring our Fish suppliers’ performance against Environment the standards we set. Chain of Custody Marine Stewardship Council (MSC) certified 16 Whitbread PLC Sustainability Report 2016/17
Environment We know our Group strategy for growth will only be Team and Community realised if we remain committed to reducing negative impacts on the environment. 18.7% 1 2,000 Customer Wellbeing reduction in carbon Costa stores in the UK footprint (since target offering cup recycling was set) 96.8% We have committed to purchase* 100% of waste diverted Environment from landfill renewable energy 1 Included in the boundary of our carbon footprint: Scope 1 = Gas, across the Group LPG, Fuel Oil, F-Gas, Company cars and Scope 2 = Electricity. Full emissions data is available on Page 101 of Annual Report 2016/17. * In owned and managed hotels, restaurants and coffee shops in the UK.
Environment continued We produce Our Strategic Approach New Roastery 700 We are constantly challenging Our new state-of-the-art Roastery Team and Community ourselves to become more in Basildon, opened its doors in environmentally sustainable, and March 2017. This new site has million aim to embed our thinking quadrupled our roasting capacity throughout the business. As our and is producing around 11,000 growth strategy progresses and tonnes of coffee a year which is we open more coffee shops, around 700 million cups of coffee. cups of coffee a year restaurants and hotels, our Sustainability was an integral part challenge is to ensure that we of the design and build process continue to manage our energy and we are proud that it is the first and environmental impact industrial process site to be built effectively. We do this through to BREEAM Outstanding. It is one energy efficiency, reducing our of the most sustainable Roasteries carbon emissions and diverting in the world with many on-site waste from landfill. By investing in efficiency mechanisms new technologies and ways of which enable us to reduce working, we are able to test and our carbon footprint. Customer Wellbeing demonstrate higher sustainability standards, whilst also setting Outputs and Successes challenging targets to drive further •F ull energy efficient LED 30% momentum. We have recently lighting scheme. announced that 100% of our • Electric car charge points. energy in owned and operated sites is now from renewable • Zero waste to landfill. reduction in sources. We are thrilled that we •O n site renewable electricity energy to roast a have achieved our 2020 carbon generating solar panels. tonne of coffee reduction target and will refocus • Rainwater harvesting. our efforts over the coming year. Environment 18 Whitbread PLC Sustainability Report 2016/17
Environment continued Take Away Cups bio-bean As the first signatory of the Paper This year, Costa announced its Team and Community Cup Manifesto, Costa is committed partnership with bio-bean, a clean to tackling cup recyclability. In technology company that recycles Coffee grounds February 2017, we launched our waste coffee grounds into biofuels. nationwide cup recycling scheme Our new partnership will enable recycled across across 2,000 Costa stores. We are thousands of tonnes of waste 800 pleased that we have been able to coffee grounds to be diverted to take the lead in this area as it is the bio-bean’s facilities from over 800 first of its kind amongst coffee stores nationwide. Learn more here. Launch of nationwide Costa Stores shop retailers. In addition, Costa We look forward to updating on cup recycling scheme now offers 25p off all barista made our progress in next year’s report. drinks when using a reusable cup across at one of our stores. Outputs and Successes 2,000 Costa stores (February From April 2017, we launched a new, reusable cup. We also Challenge, where a variety of • We have recycled over 3,000 tonnes of waste coffee this year supported the Hubbub Square Mile from over 800 of our Costa Coffee shops, which as of June Customer Wellbeing 2017) businesses have introduced coffee 2016, is now being recycled by cup recycling facilities in London. bio-bean. Whilst there is more work to be done in partnership with the wider industry and the Paper Cup Manifesto, which we will continue to lead. We will continue to invest heavily in new cup innovation and hope to find a long-term, sustainable solution to this complex issue. 25p Outputs and Successes • Since the launch of our nationwide recycling scheme we have recycled 10% of take off all barista made drinks Environment away cups sold in the first three when using a reusable cup months of the scheme. in our stores •W e are undertaking research with Sheffield University to further investigate cup recyclability and mapping where cups are disposed of by consumers. 19 Whitbread PLC Sustainability Report 2016/17
Environment continued £3.1m Investing in Efficiency Costa Express During 2016/17, we have continued This year, Costa Express was Team and Community to invest in renewable and on-site awarded the ISO14001 invested in Premier Inn generation in our Premier Inns. International Standard, which Energy consumption represents demonstrates a best practice energy efficiency programmes approach to environment significant costs across the entire throughout the year business, saving energy helps management. To meet the increase profits as well as protect standard requirements, sustainable our natural resources and the measures have been applied environment. We are proud to say across every aspect of Costa that we have electricity generating Express. solar panels in over 90 of our hotels and combined heat and Outputs and Successes power units in over 20. This year, •O ur Costa Express coffee we installed 15,000 new energy machines now have insulated efficient LED lights across 100 boilers to make them more Premier Inn sites and voltage efficient and reduce energy optimisation across 61. We also usage resulting in energy savings Customer Wellbeing executed a 44-site pilot of around 400 watts per day. 15,000 programme to control and •T he Costa Express fleet which optimise how we use our major supplies the machines uses power consuming assets. These telematics to enable the planning have shown significant energy LED lights installed savings and will be at the heart team to route the field teams effectively. They are also working of our energy reduction strategy. to reduce maintenance callouts We also incorporate key strategic to lessen the environmental environmental measures in new impact of the vehicles and sites as part of our strategy for encourage efficient driving by sustainable development, for measuring fuel economy. example heat recovery in our Energy in room heating systems. Outputs and Successes efficient • £3.1m has been invested in projects across our hotels and Environment restaurants which has delivered Costa Express £0.4m of revenue benefits in this year, and £0.85m revenue benefit coffee machines per annum from 2017/18, as well as reducing our CO2e emissions by 3,300 tonnes this year. •O ur employee engagement programme has aided this reduction in energy consumption. 20 Whitbread PLC Sustainability Report 2016/17
Future Strategy Our new strategy ‘Force for Force for Good - a New Direction Strong values, a clear code of we examined wider external trends that may impact our business and Good’ will help us be an ever conduct and robust ethical principles underpin how we do sustainability aspirations. Our analysis consisted of in-depth greater place to work. business and are reflected in our interviews, incorporated outputs Future Strategy approach to Sustainability. Our from recent desk top research, existing programme has been very and the results of an externally successful, but we have recently commissioned social and undertaken a review of its environmental meta-trends review. activities. We are creating forward Eight material issues were rated looking, long term sustainable and interviewees asked to state brands. To do this, we need to be the areas where Whitbread could ahead of the curve and prepared set a higher level of ambition. Our for future business, social, most important material issues consumer and environmental (outlined in our GRI table) form trends. To achieve this, we have the basis of our new strategy. For reviewed and built on the success definitions of our material issues of our current programme and please refer to our GRI Table. developed a new Sustainability Strategy - ‘Force for Good’. Force for Good Strategy We have grouped our new Materiality strategy into three key pillars - To ensure our new Force for Good Opportunity, Community and strategy meets stakeholder Responsibility. Within each area, expectations we conducted an we’ve set long term strategic in-depth materiality assessment to commitments that we believe will understand the views of our senior help us reach our goal of enabling business leaders, external partners, people to live and work well. We NGO’s and customers. will review these commitments every year to make sure we stay The materiality assessment looked on track and focused on what at 32 sustainability categories matters. aligned to the Sustainable Development Goals. In addition, We are currently working through detailed key performance indicators for each commitment and will be reporting progress against these in next year’s Sustainability Report. 21 Whitbread PLC Sustainability Report 2016/17
Future Strategy continued Always Doing Business the Our Strategy aligns with the OPPORTUNITY COMMUNITY RESPONSIBILITY Right Way Sustainable Development Goals Our new strategy underpins the (SDGs) and we will work over the way we do business and defines coming year to embed them A place where Making a meaningful Treating people further into our Sustainability our vision of Sustainability. Our Future Strategy everyone can reach contribution to the and our planet programme. people are key to delivering our their potential – no customers and with respect commitments and we need to Supporting our Force for Good barriers to entry, no communities we serve enable everyone to play their part. Strategy is our enhanced limits to ambition We remain committed to Governance framework. Strong communicating our performance sustainability governance is not No matter who you We’re a big team here We rely on the transparently and will continue to only important for embedding are or where you’re from, – a team of 50,000. And environment and the report on our sustainability our new strategy but for managing you’ll always be welcome when each one of us hard work of thousands with us. Our coffee plays our part, we can of people in our supply performance on an annual basis. risks effectively, enabling business shops, hotels and make huge difference for chain to bring our We adhere to the principles of the continuity and sustainable growth. restaurants are accessible our customers and products and services to Global Reporting Initiative (GRI) Led from the top of the and inclusive so that communities near and our customers. So we Standards. We will review and organisation, our new Sustainability everyone can enjoy our far. Whether it’s putting take our responsibility to update our materiality assessment Steering Group, is chaired by our hospitality or join us in a our energy and passion both people and planet every year to ensure it reflects General Counsel and our CEO great place to work. We into fundraising for seriously. We set changes in our business as well as attends every meeting. The believe in giving people charities, finding new standards to ensure our socio-economic and environmental Steering group sets and monitors the chance to shine. ways for our sites to suppliers operate trends. We will conduct our next our strategic objectives and With the best training serve the community or responsibly and with materiality analysis in 2018. For policies, as well as identifying any and development helping our customers integrity. From coffee Whitbread, robust transparency improvements that need to be made. programmes in the make informed choices cups to carbon, we’ll find also includes participating in the business, we’re the place for a healthier life, our opportunities to make a Dow Jones Sustainability Index you can build your career. impact on people and positive impact for the (DJSI) which for this year we communities will be environment across our achieved 71%. Our Commitments: life-changing. whole supply chain. And we’ll make sure that our •W e will have industry Our Commitments: suppliers and the people leading training and •W e will make a positive who work with us are development schemes contribution to the always treated fairly and •W e will be the most with respect. communities we serve inclusive hospitality business •W e will raise £30m for Our Commitments: our chosen charity •W e will champion the •W e will source partners by 2021 employment of under- responsibly and represented groups •W e will support with integrity the wellbeing of our customers •W e will reduce our environmental impact •W e will always do business the right way 22 Whitbread PLC Sustainability Report 2016/17
Our Performance We aim to be a leader in developing sustainable business practices within our sector and have already made great progress this year on our 2020 targets. Our Performance Pillars 2020 Target Progress against 2020 targets Target Status By 2020 we will have: Teams and 5,000 apprenticeships 2 2,309 Communities 7,500 work experience placements 3 3,863 6,500 employment placements 4 3,399 £10 million raised for Great Ormond Street Hospital Children’s Charity £8.9m £15 million raised for 100 Costa Foundation School projects 5 Circa £12m Customer Whitbread’s critical product commodities 100% accredited against robust standards 215 critical suppliers on-boarded to Wellbeing our Responsible Sourcing Programme. Reduced added sugar in all Costa drinks by 25% 6 -13% Reduced added sugar in Costa Ice Range by 30% 7 -21% Reduced salt in Costa sandwich range by 5% -2% Environment Reduced carbon by 15% relative to sales turnover (against a 2014/15 baseline) 8 18.73% Reduced water use by 20% relative to sales turnover (against a 2014/15 baseline) 9 6.1% Increased direct operations recycling rate to 80% across hotels, restaurants and coffee shops 66.3 10 on track/delivered behind track target missed 2 Apprentice figures stated against 2014/15 baseline is the same since WISE began as we started tracking this in the same year. 3 Work experience placement figures stated against 2014/15 baseline. 4,039 work experience placements have been delivered since WISE began. 4 Employment placement figures stated against 2014/15 baseline. 4,450 employment placements have been delivered since WISE began. 5 £12m was raised for 72 schools since start of Costa Foundation. 6 All barista-made drinks on sale on menu in UK excluding trials. Based on average added sugar per portion (g). 7 All barista-made ice (cold) drinks on sale on menu in UK excluding trials. Based on average added sugar per portion (g) 8 This is a Group target and applies to both UK and international. Our target of a 15% reduction in carbon was surpassed when we reached 18.7% this year. This is a reflection of our ongoing commitment to reduce our emissions and is also due to the decarbonisation of the UK power grid. Plans to work with landlords to build more energy-efficient sites will produce further reductions in carbon. 9 We are working towards achieving our target of 20% improvement in water efficiency, having achieved a reduction of 6.1% per £m turnover this year. We continue to invest in grey water recycling systems, low flow taps and shower heads, low flush toilets and low water-use appliances to ensure that we minimise water use. 10 We are on track to reach our target of 80% recycling rates from direct operations having reached 66.3%. This year has seen the introduction of recycling coffee grounds and paper cups to ensure we minimise waste whilst promoting recycling. We are also currently diverting 96.8% of waste from landfill, leaning towards zero waste to landfill. Plans to further increase this include looking at additional food waste options, developing a circular economy strategy (with particular focus on food packaging) and targeting plastics which we estimate constitute 30% of our waste stream. 23 Whitbread PLC Sustainability Report 2016/17
Partners Partners Registered charity no. 1160024 24 Whitbread PLC Sustainability Report 2016/17
Assurance Statement Whitbread has commissioned Corporate Citizenship to provide assurance against the GRIPrinciples for Defining Report Assurance Statement Quality. The data relates to Premier Inn and Restaurants and Costa in the United Kingdom and international operations where Whitbread has a majority stake. The assurance covers the Whitbread financial year 2016/17. The assurance complies with the ISAE 3000 standard. This is the first occasion we have commissioned assurance of our social as well as our environmental data. The full statement can be found here. 25 Whitbread PLC Sustainability Report 2016/17
Registered office: Whitbread PLC Whitbread Court Houghton Hall Business Park Porz Avenue Dunstable Bedfordshire LU5 5XE 01582 424200 whitbread.co.uk
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