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Responsible Business Report 2019 Delivering True Hospitality for everyone
IHG | Responsible Business Report 2019 1
Introduction Our culture Our hotels Our communities Our performance
Welcome
With hotels in thousands of communities globally,
our business and brands touch the lives of millions
of people every day.
Ensuring the actions we take and experiences we
create reflect a deep commitment to responsible
business is crucial to our reputation, growth and
future success.
By recognising and respecting others, protecting
the environment and giving back to communities
in which we operate, we ensure IHG’s purpose of
True Hospitality for everyone means everyone.
IHG | Responsible Business Report 2019 2
Introduction Our culture Our hotels Our communities Our performance
Contents
1-15
Introduction
16-25
Our culture
26-31
Our hotels
32-36
Our communities
37-43
Our performance
Welcome 1 Doing business responsibly 17 Developing our hotel colleagues 27 Our True Hospitality for Good programme 33 Our performance 37
Contents 2 Human rights 19 Carbon and energy 28 Skills and education 34
Chair and CEO Q&A 3 Responsible procurement 21 Water 29 Disaster relief 35
About IHG 5 Making IHG a great place to work 23 Waste 30 Giving for Good month 36
2019 highlights 6 Valuing diversity and inclusion 24 Technology and innovation 31
2018-2020 responsible business targets 7
Our strategy 8
Governance 9
Risk management 10
Materiality 11
UN Sustainable Development Goals 12
Stakeholder engagement 14
Further information online at: Jump to:
IHGplc.com
Science-based targets Water
–– Our brands See page 28 stewardship
–– Find out about IHG’s history See page 29
–– Explore our culture
–– Download our Annual Report
and Form 20-F 2019
Switching to bulk amenities
Follow us on LinkedIn
See page 30
IHG | Responsible Business Report 2019 3
Introduction Our culture Our hotels Our communities Our performance
Chair and CEO Q&A
Growing
What does Responsible Business
Q
mean to IHG?
in the PC: Every action we take for our brands, colleagues,
guests and investors requires us to act with
right way
integrity, responsibility and strong governance.
Our reputation and long-term growth aspirations
are built on this commitment, and we appreciate
that stakeholders increasingly expect success to
be delivered in ways that protect our environment
Ensuring IHG protects and enhances its and give back to local communities.
reputation as a responsible business is Our colleagues are passionate that our purpose
central to our purpose of providing True of True Hospitality for everyone really does mean
Hospitality for everyone, and to our ability everyone and is used as a force for good. Whether
to operate and grow in the right way. IHG’s it is the development of our daily operations,
Chair, Patrick Cescau, and CEO, Keith community or environmental programmes,
Barr, discuss our approach, progress third-party partnerships, tools or policies, we
in 2019 and priorities for 2020. recognise the need to consistently review and
adapt our approach to stay relevant and effective.
What role do IHG’s colleagues play
Q
in delivering Responsible Business?
PC: The type of culture we have at IHG informs
everything else about us as a business. Our people
shape that culture daily – whether by promoting
workplace diversity through our employee-led
resource groups, giving back to communities
through Giving for Good month, or engaging
with the values, tools and training we put in place
to help colleagues do the right thing and
make a difference.
It’s important the tone is set by the Board and in
2019 we designated a Non-Executive Director to
focus on workforce engagement, helping ensure
we have a cross-section of perspectives on key
company matters. Relationships are important, and
as a predominantly asset-light, franchised business,
we need to engage with all colleagues and our
Watch Keith Barr’s review
of the year in more detail at:
owners if we are to consistently operate and
www.ihgplc.com grow sustainably and responsibly.
IHG | Responsible Business Report 2019 4
Introduction Our culture Our hotels Our communities Our performance
Chair and CEO Q&A continued
How would you rate progress against your What other achievements are What are you focused on for the future IHG listed in the top
Q Q Q
10
2018-2020 Responsible Business Targets? you most proud of in 2019? when it comes to Responsible Business?
KB: Having finished the penultimate year of our KB: 2019 was a really busy year of commitments PC: We’re an ambitious company. We’ve set 2030
targets, we’re firmly on track to meet our goals. and exciting partnerships. Leading our industry as
the first global hotel group to commit to switching
science-based targets to reduce our greenhouse
emissions, and as part of our work in this area FTSE 100
companies
Working closely with our hotels, the introduction
all our brands to bulk-size bathroom products was we are now developing a plan to meet the
of a Carbon Metric has helped us deliver a 5.9%
a great step toward reducing our plastic waste, requirements of the Task Force on Climate
reduction in our carbon footprint per occupied
building on the commitment we made in 2018 to related Financial Disclosures (TCFD).
room to date – an important achievement. As we for female leadership
remove all plastic straws from our global estate too. representation at an
continue to accelerate the number of hotels we All this is informing the work we’ve started on our
Executive Committee level
open annually, we are committed to tackling the Our Renovation Donation Initiative in the US and post-2020 Responsible Business Targets, which
challenge of ensuring we grow in ways that Canada has been very effective in redirecting will contribute toward the achievement of the 2030
manage and reduce our environmental footprint. furniture and goods from renovating hotels to UN Sustainable Development Goals and ensure
charities rather than landfill, and we also signed that the actions we take create the right long-term
We also continue to nurture our diverse and
a fantastic partnership with Junior Achievement approach for IHG both operationally and culturally.
inclusive culture, including through programmes
Worldwide, to give more young people a taster
that drive greater gender equality. Linked to this, Alongside our targets, we will continue to push
of what it is like to work in our industry and pick
we were proud to see IHG again listed in the top the agenda where it matters most, reflecting the
up new skills on the way.
10 FTSE 100 companies for female leadership changing expectations of our guests, colleagues
representation at an Executive Committee level In Australia, we partnered with OzHarvest to divert and investors. Collaboration will always be key
and their direct reports in the 2019 Hampton food waste from our hotels to local communities to this, and our work with several industry bodies
Alexander Report. via a network of charities, and in the Middle East we and partners in areas as diverse as anti-human
kicked off an AI technology pilot with Winnow that trafficking, waste reduction and increasing female
can reduce food waste by tracking usage and leadership remain an important focus for us.
better informing future purchasing choices.
We’ve also put a lot of focus on our Human Rights
programme, further developing our Human Rights
Policy and launching a new, free e-learning module
for all colleagues around the world to help combat
human trafficking.
There’s such huge potential for a business of our
size and so the challenge is to identify solutions that
can be embedded into our brands and operations
at scale, with the support of our owners.
IHG | Responsible Business Report 2019 5
Introduction Our culture Our hotels Our communities Our performance
About IHG
Total hotels in the IHG Owned, leased and Across more than 100 countries, By targeting high-value markets
System (rooms) managed lease hotels we operate an asset-light with unmet consumer demand,
(rooms)
5,903
business model, predominantly we aim to create scale positions
Our operations 26 How our business works
managing and franchising hotel with brands that deliver long-
(883,563) (6,336)
brands on behalf of third-party term value for both IHG and
hotel owners. our stakeholders.
Franchised hotels (rooms) Whether we franchise to, or Due to our asset-light approach,
Total hotels manage hotels on behalf of the number of owned, leased
4,870 in the pipeline (rooms) hotel owners, depends largely and managed leased hotels we
1,918
on market maturity, owner have has dramatically reduced
(614,974) preference and in certain from more than 180 hotels in
(283,043)
cases the particular brand. 2003, to just 26 in 2019.
Managed hotels (rooms)
Brand ownership
1,007
Hotel IHG capital marketing and
Business model ownership intensity Employees distribution
(262,253)
Franchised Third party Low Third party
IHG and third
Managed Third party Low
party IHG
Owned and leased IHG High IHG
Our brands
Our asset-light business model worked across IHG branded
means that we do not employ hotels and corporate offices
Mainstream Upscale Luxury
colleagues in franchised hotels, globally as at 31 December 2019.
nor do we control their day-to- However, as at the same date,
Our employees day operations, policies or IHG actually employed 14,436
procedures. That being said, people worldwide, which
IHG and our franchised hotels comprises of those individuals
are committed to delivering a employed in our corporate
consistent brand experience, offices, central reservations
conducting business responsibly offices, owned hotels and some
and delivering our purpose managed hotels. For the
of providing True Hospitality purposes of this report, when
for everyone. we refer to our employees it is
defined as this group.
When considering the Group’s
entire estate of 5,903 hotels, Learn more about
our business here
more than 400,000 people www.ihgplc.com/en/about-us/
how-our-business-works
IHG | Responsible Business Report 2019 6
Introduction Our culture Our hotels Our communities Our performance
2019 highlights
5.9%
reduction in our carbon
footprint per occupied room from
Bulk amenities
First global hotel company to
commit to moving all brands from
miniature bathroom amenities
to bulk solutions
3.6%
reduction in water
use per occupied room
in water stressed areas
from 2018-2019 on a 2017
2018-2019 on a 2017 baseline baseline
188,000 Junior Achievement 100%
score on the Human
Rights Campaign’s
annual Corporate
hours Worldwide Equality Index in the
US for sixth time
Employee 25,222
Launched global partnership to help young
volunteered by colleagues across the globe people build skills and experience in hospitality
share plan
New share plan launched
for all corporate employees
people
supported around the world through
community impact projects
Science-based
targets
Committed to setting greenhouse gas emission
reduction targets in line with climate science
Top 10
Hampton-Alexander Review listed
IHG as one of the top companies in
Global Best
Employer
Aon-Hewitt Global
Best Employer
the FTSE 100 for female representation
among our senior leadership
IHG | Responsible Business Report 2019 7
Introduction Our culture Our hotels Our communities Our performance
2018-2020 responsible business targets
Progress Environmental sustainability
Target
Community impact
Target
Our people
Target
Responsible procurement
Target
against our 6-7%
Reduce carbon footprint
30,000-
40,000
Increase
diversity
Increase
supplier audits
2018-2020 per occupied room
Individuals provided with
hospitality skills training
Increase diversity in terms
of gender and nationality or
Increase supplier risk profiles and
audits for preferred suppliers
targets Progress
through IHG® Academy
Progress
ethnicity of IHG Senior Leaders
Progress Progress
Over a two year period we have In 2019, 15,081 people benefitted In 2019, female representation Continuation of supplier risk assurance
reduced our carbon footprint by from IHG Academy taking in our Senior Leadership was at programme, with remediation plans
5.9% per occupied room, with the total to 28,181. 36% vs our 2017 baseline of 37%. now underway for those suppliers
a 3.7% reduction in 2019, from found to have gaps in their risk
a 2017 baseline. assessments.
Target Target Target Target
Six projects $3,000,000 Increase Increase
Launch two water stewardship
projects each year
Contributed to community
impact projects female ethical supplier
representation awareness
Increase number of females Roll out new training for
working in General Manager and corporate colleagues and hotels
Operations roles in managed hotels
Progress Progress Progress Progress
In 2019, we launched water In 2019, we contributed $1.3m In 2019, we increased the percentage In 2019, we launched a mandatory
stewardship projects in to community impact projects, of females in General Manager and programme for all employees
Beijing and Bali. taking our total to $2.5m. Operations roles from 24% to 26%, to further increase their ethical
up from 22% in 2017. awareness on how to spend
responsibly.
Target Target Target
100,000 Employee IHG green
Colleagues involved
in IHG’s community impact engagement criteria
activities each year Track and report employee Increase suppliers that
engagement each year meet IHG green criteria
Progress Progress Progress
160,313 colleagues engaged In 2019, IHG achieved an average In 2019, 45% of new contracts
in community impact engagement score of 87%, a 1% through our tendering processes
activities in 2019. improvement on 2018 and up 2% were awarded to an IHG Green
since 2017, 11% above Kincentric’s Supplier.
See pages 38-41
for more information top quartile benchmark.
IHG | Responsible Business Report 2019 8
Introduction Our culture Our hotels Our communities Our performance
Our strategy
Responsible Our approach starts with our purpose…
business True Hospitality for everyone
strategy and is guided by our
corporate strategy…
…which we deliver responsibly
across three pillars…
Our approach to responsible business
underpins our entire company strategy,
operations and brands. Having the right Culture Our hotels Communities
1 2
commitments, governance and culture We pride ourselves From our direct We understand
in place, shapes who we are as a business IHG’s
on a respectful and hotel operations, to that our success and
and is central to our ability to deliver our strategic responsible culture, our relationship with the well-being of those
3
purpose of True Hospitality for everyone.
5 model which guides our third-party owners and who work in and around
decisions and how we our supply chain, we our hotels are closely
4 work, and underpins our consider the entire hotel linked, and we’re using
With our asset-light model, we grow our
purpose to provide True lifecycle when looking our scale and global
business in high-potential markets by
Hospitality for everyone. at how to best operate reach to shape a positive
consistently ensuring our brands, loyalty 1 Build and leverage scale
responsibly. future for everyone.
programme, systems and technology combine 2 Strengthen loyalty programme
to deliver great guest experiences and strong 3 Enhance revenue delivery
See page 16 See page 26 See page 32
returns for hotel owners. 4 Evolve owner proposition
5 Optimise our preferred portfolio
Central to the successful delivery of our strategy of brands for owners and guests
is our commitment to responsible business,
which ensures that alongside our hotel owners
and partners, we grow in the right way and
sustainably for the long-term.
From the shared values we promote and the
culture we create, to how we operate and grow,
to our contribution to local communities, We measure progress through our 2018-20 targets in four areas...
we have clear procedures, policies and
programmes in place to guide us. Environmental Community Our Responsible
sustainability impact people procurement
See page 37 See page 38 See page 39 See page 41
for more information for more information for more information for more information
IHG | Responsible Business Report 2019 9
Introduction Our culture Our hotels Our communities Our performance
Governance
Responsible
Every day, our people around the world
support a culture of responsible business.
business
This begins with our Board, and is embedded IHG Group Board
by our CEO and Executive Committee, who are
accountable for promoting and reinforcing it.
governance The Group Board has overall responsibility
for and sets IHG’s strategic direction.
Corporate
The Board is supported by its other principal Nomination Remuneration
Audit Committee Responsibility
committees, the Audit, Corporate Responsibility, Committee Committee
Committee
At IHG, we recognise the importance Nomination and Remuneration Committees,
of maintaining the highest standards who assist the Board in carrying out its functions,
of governance to support our culture, overseeing the delivery of strategic objectives,
driving sustainable value for shareholders,
our values and our commitment to In 2019, the key responsibilities and focus In 2019, a Responsible Business Governance
whilst ensuring the business is managed areas were to: Committee was formed to support our Board
conducting business responsibly. responsibly. and Executive Committee. The committee is
——Considering the Group’s Corporate
Our Corporate Responsibility Committee made up of Senior Leaders who oversee our
Responsibility Strategy, given developments
reviews and advises the Group Board on key day-to-day responsible business activities
in environmental, social and governance
IHG’s corporate responsibility objectives in areas including: Cybersecurity and
(ESG) considerations and the need to look
and strategy, including its impact on: Information Security, Procurement, Global Risk
beyond the Group’s 2018-2020 targets;
environmental, social, community and human Management, Human Resources, Legal,
rights issues; its approach to sustainable ——Monitoring the delivery of the Responsible Operations and Corporate Responsibility.
development and responsible procurement; Business targets for the year, with a focus This committee meets quarterly to drive
and stakeholder engagement in relation to on the Group’s environmental, community collaboration across the business, ensuring
the Group’s approach to responsible business. and diversity targets; that we meet our ambitions, external
commitments and targets.
The committee meets three times a year ——Reviewing the Group’s approach to
and in 2019 it was chaired by Jill McDonald, responsible business in the supply chain,
a Non-Executive Director (NED). Other NEDs including supplier audits and the Supplier
who sit on the committee are Anne Busquet, Code of Conduct;
Luke Mayhew and Malina Ngai. The Group’s
——Reviewing the Group’s Human Rights
Executive Vice President of Global Corporate
o view our Corporate Responsibility
T
programme and approving the Human
Affairs and Vice President of Corporate
Committee report, click here Rights Policy; and
Responsibility attend all meetings and our
Group Chair and CEO regularly attend ——Overseeing responsible business
committee meetings. stakeholder engagement.
On 1 January 2020, Arthur de Haast was
appointed as an independent Non-Executive
Director of IHG and will now sit as a member
of the Corporate Responsibility Committee.IHG | Responsible Business Report 2019 10
Introduction Our culture Our hotels Our communities Our performance
Risk management
Our growth ambition in a fast-moving and ——cultural, succession and retention risks Risk management supports Our discussions of risk also take place within
our innovative business environment and the competitiveness of director and decision making a context of increasing scrutiny of the impact
means that we must consider risk as executive remuneration (Remuneration of our business on our stakeholders, and our
Our risk management and internal control
a central part of the definition and and Nomination Committees). longer-term sustainability. We have therefore
system is fully integrated with the way we run
split out our consideration of external factors to
execution of our strategy. While the Board oversees the risk management the business and how we create and protect
recognise both the risks relating to political and
system to ensure that risks and opportunities value in pursuit of our objectives.
The Board’s role in risk management are appropriately identified and managed to an
economic headwinds on our growth ambitions
– stewardship and partnership Our culture, values and behaviours, establish (for example disruption in key markets and
acceptable level, it works in partnership with
authorities, capabilities and appropriate trade wars) and also the requirement to
The Board is ultimately accountable for the the Executive Committee and Senior Leaders
incentives for empowered and agile decision- anticipate and respond appropriately to
effectiveness of our risk management and to maintain and, where necessary, accelerate
making across our portfolio of risks by teams the risks and opportunities relating to our
internal control systems, and is supported by the understanding of key risk topics.
across IHG, supported by functional expertise. environmental and social responsibilities.
the Audit Committee, Executive Committee
Our enterprise risk management framework
and delegated committees. Our regional and Formal and informal monitoring, reporting and The Risk and Assurance team has continued
adopts a mitigate/transfer/accept approach,
functional leaders, supported by the Risk & assurance arrangements, enable the Board to coordinate assessments of the principal
taking into account the potential impact on
Assurance team, conduct strategic planning and Executive Committee to maintain ongoing risks facing the Group, including those which
the ability of the Group to execute and deliver
and business performance reviews throughout oversight of key areas of uncertainty and the would threaten its business model, future
our objectives and strategy.
the year which monitor emerging risks – new effectiveness of our risk management and performance, solvency or liquidity and
or changing factors which require further Risk appetite internal control arrangements. reputation. These risks are formally reviewed
consideration to determine the potential with the Group’s Directors on a bi-annual basis
significance to our business. Our governance IHG’s risk appetite is visible through the nature IHG’s principal risks and considered in more detail through the
framework and committee agendas establish and extent of risk taken by the Board in pursuit and uncertainties activities of the Board and committees,
procedures for Board members to receive of strategic and other business objectives. We however risks are also discussed as an integral
Our risk profile is structurally similar to that of
information from the Executive Committee and cascade this appetite through the goals and part of decision making across the year.
a year ago, although the context within which
Senior Leaders and a range of other internal targets we set, our Code of Conduct and other
we operate is highly dynamic reflecting the A broader description of our approach to risk
and external sources on emerging risks. global policies, our formal Delegation of
cyclical nature of our industry and global management and our principal risks, can be
Authority policy including the governance found on page 46 to 53 of the IHG 2019
During 2019 the topics have included: macroeconomic uncertainties.
structure of approval committees, decisions Annual Report and Form 20-F.
——many long-term industry and we make and how we allocate resources.
macroeconomic risk factors (within It evolves with the IHG strategy.
Board strategy meeting and committee
discussions), often alongside management’s Risk trend and speed of impact Principal risk – assessment of trend and speed of impact
own presentations of plans and projects; More gradual
——discussion of risks relating to longer-term We assess whether the risk area is stable More gradual Rapid
sustainability, shifting societal expectations, or dynamic in its impact and/or likelihood
—— Channel management and technology —— Cybersecurity and information governance
human rights and our evolving (inherent risk trend), and the rate at which
Dynamic
there could be a material impact on IHG. —— Accelerate growth —— Preferred brands and loyalty
responsibilities across our supply chain
More gradual
The trend and speed of impact are —— Macro external factors —— Leadership and talent
(Corporate Responsibility Committee);
——emerging tax, treasury and regulatory risks, summarised in the diagram. —— Environmental and social mega trends —— Legal, regulatory and ethical compliance
for example relating to privacy and data
—— Safety and security
Stable
protection (Audit Committee);
—— Financial management and control systemsIHG | Responsible Business Report 2019 11
Introduction Our culture Our hotels Our communities Our performance
Materiality
Our materiality
Culture
Materiality matrix – 2019
1 Safety and security
process
2 Cybersecurity and information governance
1 3 Human rights
4 Labour rights
2
5 Employee well-being
6 Training and development
To continue meeting the changing 3 7 Responsible attitudes and ethics
expectations of our stakeholders, we 4
8 Responsible business governance
updated our materiality matrix in 2019 9 Diversity and inclusion
to ensure that as a business we can Hotels
make the greatest positive contribution 11
10 Energy and carbon
for our guests, communities and 14 10 11 Waste
environment. 12 9 7 5 12 Responsible procurement
8 13 Water
15 13
Importance to stakeholders
6
16 Communities
14 Socio-economic impact
15 Respecting local cultures
16 Community activities
Medium High
Relevance to IHG
Working with a third-party, we undertook a The assessment identified a long list of more In 2019, a total of 16 material issues were
detailed materiality assessment to identify than 500 issues that were refined, grouped identified (17 in 2018). The list of issues includes
and prioritise the key responsible business and categorised. refinement, consolidation and the addition
issues relating to our core business activities. of new issues, based on the outcomes of the
Issues were assessed against their relevance
assessment. From a reporting perspective,
Our materiality process adheres to best- to IHG’s business model, corporate strategy
we only cover issues that are deemed to
practice external standards and frameworks and principal risks and ranked accordingly.
be of a medium to high importance to our
including GRI Standards, DJSI and SASB. The assessment also considered the
business. Each issue is covered in detail
The scope of the assessment covers all areas importance of issues to key stakeholders.
within this report.
of our business model, whilst taking into A list of these stakeholders, and how
account our asset-light structure we took action to address their needs, We will continue to conduct annual materiality
can be found on pages 14-15. assessments and use the outcomes to guide
our approach to reporting, future responsible
business strategy and external
communication.IHG | Responsible Business Report 2019 12
Introduction Our culture Our hotels Our communities Our performance
United Nations Sustainable Development Goals
The United Nations Sustainable Development Goals
SDG6:
(SDGs) set out a series of global ambitions to end
Clean water
poverty, fight inequality and injustice, and tackle
and sanitation
climate change by 2030. Whilst recognising the
importance of all the SDGs, we believe that IHG,
using its power of scale and global reach, can Why is this important?
make the biggest contribution to seven of the goals. With 35% of IHG hotels located in water-stressed areas, we
want to ensure that communities living around our hotels have
access to safe water, sanitation and handwashing facilities.
What we did in 2019
——Reduced our water use per occupied room
in water stressed areas by 3.6% since 2017.
——Completed a water stewardship project in Delhi
and launched new projects in Bali and Beijing.
SDG8: ——Worked with partners to distribute soap to
Decent work and communities in need.
economic growth ——Identified key water quality and quantity risks.
Why is this important? SDG10:
The global travel and tourism industry employs one in Reduced
10 people globally and contributes 10.4% to global GDP. inequalities
As IHG continues to grow strongly around the world, we
are in a unique position to support thousands of jobs globally.
Why is this important?
What we did in 2019 We’re a global business with a global outlook. With people
——Spent $102m with diverse local suppliers. working in hotels and offices in more than 100 countries, our
——Provided 15,081 people across 732 hotels with training colleagues represent multiple nationalities, cultures, religions,
and development opportunities through the IHG Academy. races, sexualities, abilities, backgrounds and beliefs.
——Partnered with Junior Achievement to develop the IHG
What we did in 2019
First Look curriculum, providing hotel work experience
——Following the launch of our Global Diversity & Inclusion (D&I)
events for young people around the world.
Board in 2018, we launched local D&I councils to ensure
——In 2019, we opened another 411 hotels, helping to create local voices are represented.
thousands of jobs in local communities either directly
——Worked with NGOs to support and employ colleagues
or indirectly.
with disabilities.
——Increased the number of females in Senior Leadership
positions in hotels through our Rise mentoring programme.IHG | Responsible Business Report 2019 13
Introduction Our culture Our hotels Our communities Our performance
United Nations Sustainable Development Goals continued
SDG 11: SDG13:
Sustainable cities Climate action
and communities
Why is this important? Why is this important?
Our hotels operate in thousands of communities across the With hotels operating 24 hours a day and servicing the needs
globe and we want to ensure those millions of people who live of guests, industry energy consumption represents around
and work around our hotels will be living in a sustainable future. 1% of global greenhouse gas (GHG) emissions, which we
are determined to play a part in reducing.
What we did in 2019
——Utilised the IHG Green Engage™ system to implement What we did in 2019
sustainable property solutions covering carbon, energy, ——Reduced our carbon footprint
water and waste usage. per occupied room by 3.7% since 2017.
——Supported 25,000 people impacted by natural disasters ——Set each of our hotels around the world a carbon
and worked with our hotels to ensure that they are prepared reduction target.
to play an active role in the event of a disaster. ——Committed to setting science-based targets.
——Brought 160,000 colleagues together for our annual
Giving for Good month to support our local communities.
SDG17:
Partnerships
for the goals
SDG12:
Responsible
consumption Why is this important?
and production Collaboration with our third-party hotel owners, colleagues,
industry peers, NGOs and governments across the globe
Why is this important? is paramount if we want to end poverty, fight inequality
We’re mindful of the resources we use as an industry and injustice, and tackle climate change by 2030.
and we map out the biggest areas of waste within our
operations, identifying ways to reduce, re-use and recycle. What we did in 2019
——Collaborated with our hotel owners and teams to embed
What we did in 2019 our approach to responsible business across our estate.
——Became the first global hotel group to commit to switching
——Worked with industry peers to develop collective solutions to
all brands from miniature bathroom amenities to bulk
key sustainability challenges through our membership to the
solutions during 2021.
International Tourism Partnership (ITP), the World Travel &
——Launched a green supplier scorecard to assess supplier Tourism Council (WTTC), American Hotel & Lodging
environmental credentials. Association (AHLA) and the Global Business Travel
——Launched AI technology in 24 hotels to reduce food waste. Association (GBTA).
——Joined the Ellen MacArthur Foundation ‘Circular Economy ——Drove meaningful action to address the UN SDGs through
100 network’. our contribution to the Business in the Community (BITC)
Global Goals Leadership Team.IHG | Responsible Business Report 2019 14
Introduction Our culture Our hotels Our communities Our performance
Stakeholder engagement
We collaborate and engage with a wide
range of stakeholders important to our
business to ensure we can work towards
common goals and create shared value.
Here is a summary of how we engaged Stakeholder Shareholders Hotel owners Colleagues Guests and
with these stakeholders in 2019. and investors corporate clients
Our shareholders are Thousands of hotel owners More than 400,000 people Millions of guests visit our
increasingly integrating own and operate our hotels. work in our corporate offices, hotels every day. They look
environmental, social and They are integral to our and managed and franchised at us as a global business, as
governance (ESG) factors into reputation and to our hotels. They represent a operators, and as destinations,
their investment decisions, long-term success. The diverse set of opinions that and ask what role we can play
and we welcome the through these relationships help us shape our approach in driving positive change
opportunity to be in regular we aim to affect change on to responsible business and through our business.
dialogue with them on a issues that are relevant to understand the needs and
number of topics. them and to us as a Group. sentiments of our millions
of guests.
Engagement ——Engaged with investors ——Engaged owners through ——Engaged with our ——Through our ‘A Greener
activities in a variety of ways on regional conferences, corporate colleagues Stay’ programme, IHG®
in 2019 ESG topics, including our regular meetings and through a number of Rewards Club members
AGM, meetings with IHG conversations. channels and events can forgo housekeeping,
Senior Leaders, Board ——In partnership with the including our intranet, reducing their energy
members, and our IHG Owners Association, conferences, learning and water usage
Investor Relations teams, we co-manage the summits, Town Halls associated with linen
investor presentations Renovation Donation and blogs. cleaning.
and by writing to Initiative, whereby hotels ——Brought 160,000 ——Our IHG Green Engage
them directly. undergoing renovations colleagues together system automatically
——Worked with a number in the US and Canada for our annual Giving reports environmental
of rating agencies and donate their used fixtures for Good month. data to almost 60% of
organisations including and fittings to NGOs. ——Achieved an average our corporate clients
ShareAction, MSCI, employee engagement requesting it through the
Sustainalytics , CDP, score of 87% through Global Business Travel
RobecoSAM (Dow Jones our bi-annual survey. Association (GBTA).
Sustainability Index), ——We report our
——Commenced Non-
ISS and FTSE Russell. sustainability data to
Executive Director-led
employee interface Ecovadis and CDP
sessions across annually, sharing our
geographies to better ratings with our
understand workforce corporate clients.
engagement
(Voice of Employee).IHG | Responsible Business Report 2019 15
Introduction Our culture Our hotels Our communities Our performance
Stakeholder engagement continued
Stakeholder Suppliers NGOS, governments Industry associations Academic institutions
The provision of goods and and community Collaboration across the IHG is a thought leader within
services by our suppliers organisations industry is key to ensuring that the travel and tourism industry.
is critical to our ongoing we all work towards common We regularly collaborate and
We engage NGOs,
operations and we want goals that not only create engage with academic
governments and community
to ensure we engage with shared value, but also drive institutions across the globe
organisations to ensure the
suppliers who share the same greater momentum behind to share best practice and
programmes and policies
commitment to responsible a common purpose. contribute to the development
we have in place are meeting
business as we do. of responsible business
the needs of our communities solutions for our industry
and guests. and others.
How we ——Suppliers are required to ——We are a member of the ——As a founding member of ——Through our IHG
engage confirm their acceptance UN Global Compact and the International Tourism Academy programme,
to our Supplier Code of are committed to aligning Partnership, we continue we engage with many
Conduct at the supplier our operations, culture to collaborate to tackle academic institutions
on-boarding stage. and strategies with its 10 environmental issues and across the globe to
——In 2019, we introduced universally accepted build hospitality skills. supplement students’
the IHG Green Supplier principles. ——As a member of the World classroom-based
scorecard, which helps ——Joined the Tourism Travel and Tourism Council learning.
us understand the Child-Protection Code (WTTC), we support the ——Colleagues across the
environmental credentials of Conduct (The Code) 0scars action plan, to business regularly
of all prospective IHG in 2019 to benefit from encourage members participate in lectures,
suppliers going through ECPAT-USA’s expertise to adopt and accelerate seminars and panel
our RFP process. on addressing human sustainability programmes discussions with many
——To guide and educate trafficking and child and share best practices. academic institutions
our employees on how sexual exploitation. ——In advance of the 2020 across the globe.
to spend responsibly, ——Engaged with Super Bowl, we
in 2019 we launched a governments to ensure collaborated with ‘It’s
mandatory education that the industry can a Penalty’ on activities
programme. help shape and influence designed to educate
government policy guests on the issues
and initiatives, including of human trafficking.
the UK Government’s
Department for
Environment, Food and
Rural Affairs and the US
House of Representatives
Select Committee on
the Climate Crisis.IHG | Responsible Business Report 2019 16
Introduction Our culture Our hotels Our communities Our performance
Our culture
Building a culture of
responsible business
We pride ourselves on a respectful
and responsible culture, which is
central to delivering True Hospitality
for everyone. With our global reach,
we recognise the importance of
ensuring our workforce embodies
the communities in which
we operate.
Our policies and standards set out
our position on social, environmental
and ethical issues and we ensure
that our expectations are clear to
all those that we work with, be that
our colleagues, owners, investors
or suppliers.
IHG colleaguesIHG | Responsible Business Report 2019 17
Introduction Our culture Our hotels Our communities Our performance
Doing business responsibly
From the shared values we promote and Safety and security Our team of global intelligence specialists use an
the culture we create, to how we operate We take the safety and security of guests, intelligence-led, threat-based security approach
and grow our business, we have clear colleagues and visitors to IHG branded hotels very to monitor the risks and threats posed to our hotels. Today, we operate in a world
polices, programmes and procedures seriously. We manage safety and security through Risks include terrorism, changing political with many interconnected
landscapes, digital security and natural disasters. technologies, which places an
to help guide us each and every day. a global management system that includes Brand even greater importance on the
Safety Standards and a suite of risk guidance, Our well-tested crisis management system enables
us to bring the necessary skills and expertise management and protection of
training and toolkits that are available to all hotels. data. We regularly review and
together so that we can quickly direct resources
update our policies and
IHG employs a team of global risk specialists to and support exactly where it is needed worldwide. protocols; and we educate our
coordinate and monitor a safety and security colleagues on the protection
management system. This system is designed to Privacy and information security against data and cyber threats.
provide an appropriate level of control to mitigate The privacy and security of personal data is very David Jordan
against a systematic issue with safety and security important to us. We want everyone including Chief Information Security Officer, IHG
in our managed and franchised hotels. guests booking via our reservation channels,
IHG hotels are encouraged and supported to build members of our loyalty programmes, colleagues,
greater levels of risk maturity, beyond mandated shareholders and others to trust that their
levels of safety (Brand Safety Standards), through information is appropriately managed. We have
access to a large range of guidance, tools and policies and procedures in place regarding how
training resources available to all hotels via personal data can be used by our corporate offices
IHG’s Global Risk online learning centre. and managed hotels, as well as information
security standards.
In 2019, we relaunched our e-learning training for
colleagues on handling information responsibly,
which was completed by over 68,000 colleagues
in our corporate offices and managed hotels. This
training covers topics such as password and email
security, using personal data in accordance with
our policies and privacy commitments, how to
work with vendors and transferring data securely.
During our global cybersecurity month we ran a
number of colleague events which included a
variety of activities to raise awareness of cyber
threats and mitigation strategies. We continue to
develop our privacy and security programmes to
address evolving requirements and take account
of developing best practice. The Board and Audit
68,000+
Committee regularly receive updates on our
privacy and information security programmes.
completions of our handling
information responsibly e-learningIHG | Responsible Business Report 2019 18
Introduction Our culture Our hotels Our communities Our performance
Doing business responsibly continued
Code of Conduct Bribery and financial crime
The bedrock of our culture is our Code of Conduct Bribery and any form of financial crime, including
(Code), which sets out our commitment to improper payments, money laundering and tax Our Code champions our
values, setting out our
operating honestly and with the highest ethical evasion or the facilitation of tax evasion, are not
commitment to doing business
standards. The Code helps us to act responsibly permitted at IHG under any circumstances. This responsibly and the principles
and sets out the value we place on being trusted also applies to any agents, consultants and other for all of us to work by.
by our employees and guests, those who do service providers who work on IHG’s behalf. Our
Helen Jones
business with us, and the communities we work Anti-Bribery Policy sets out IHG’s zero tolerance Vice President,
in. The Code is an introduction to our key global approach to bribery and corruption. It is applicable Ethics and Compliance, IHG
policies, including human rights, diversity and to all Directors, IHG employees, and our managed
inclusion, accurate reporting, information hotels and is accompanied by a mandatory
security, anti-bribery and environment. anti-bribery e-learning module.
All employees working in IHG corporate offices, Our Gifts and Entertainment Policy supports our
reservation centres and managed hotels must approach to anti-bribery and corruption. It sets
comply with the Code and the policies and out reporting and approval thresholds for gifts and
procedures it refers to. However, the principles, entertainment given or received, and applies to all
spirit, and purpose of the Code are relevant Directors, IHG employees and our managed hotels.
to all of IHG and we expect those we do business
IHG is also a member of Transparency International
with, including our franchisees, to uphold
UK’s Business Integrity Forum and participates
similar standards.
in its annual Corporate Anti-Corruption Benchmark.
The Code is publicly available (www.ihgplc.com) The results from this are used to help measure the
and also displayed on our intranet. It is supported effectiveness of the anti-bribery and corruption
by a mandatory e-learning module for employees programme and identify areas for continuous
working in IHG corporate offices, reservation improvement.
centres and managed hotels. In 2019, new
processes were put in place to ensure this module Reporting concerns
is automatically populated in colleagues’ learning It is extremely important that our people feel
plans, including new starters. Our Board and comfortable reporting ethical concerns. To facilitate
Executive Committee, along with employees this, we have a confidential reporting channel
across the organisation, have affirmed their which provides colleagues with a means to share
commitment to the Code of Conduct. any ethical concerns they may have. Colleagues
To view our Supplier Code, visit: are made aware of this through regular internal
ihgplc.com/policies communications, including posters displayed in
staff areas, training, and through a dedicated
website (www.ihgethics.com). Regular reporting
68,000+
on the channel is provided to our Board.
colleagues have completed
our Code of Conduct
e-learning moduleIHG | Responsible Business Report 2019 19
Introduction Our culture Our hotels Our communities Our performance
Human rights
Respecting human rights is a vital part of Risk assessment Human rights policy
our commitment to responsible business In 2018, we undertook a human rights impact We significantly updated our Human Rights Policy
and fundamental to achieving the UN assessment across IHG’s operations, covering our in 2019. It sets out our commitment to respecting
SDGs. We understand the importance of supply chains, hotels and corporate offices. In line human rights in accordance with the Universal
ensuring that the human rights of all our with expectations of the UN Guiding Principles, Declaration of Human Rights, the International
colleagues, guests and communities are the assessment included: Covenant on Civil and Political Rights and the ILO’s
protected, and encourage those who we Declaration on Fundamental Principles and Rights
——Saliency mapping – assessing actual and
do business with, including our suppliers, at Work. Our approach is also informed by the
potential risks of IHG’s operations against
owners and franchisees, to prevent, Guidelines for Multinational Enterprises of the
internationally recognised human rights,
Organisation for Economic Cooperation and
mitigate and address adverse impacts including the International Bill of Rights and
Development (‘OECD’), the UN Global Compact
on human rights. International Labour Organization (‘ILO’)
and the UN Guiding Principles on Business and
Core Labour Standards; and
Human Rights (‘UN Guiding Principles’).
——Gap analysis – review of IHG’s existing policies
and processes to determine the degree to Training and identifying risk
which identified risks are being managed. In 2019, we took the opportunity to develop our
approach to human rights training to focus on
The impact assessment found that IHG has
those colleagues and parts of our business where
systems in place to manage multiple human rights
human rights impacts are likely to be greatest.
risks. However, areas where IHG could improve
We made available a new, free training for all
included: management of labour risks and, in
IHG-branded hotels and corporate colleagues
particular, responsible recruitment and labour rights
called ‘Preventing Human Trafficking’. The training,
risks; and human rights risks present in the wider
developed by leading NGOs ECPAT-USA and
IHG business ecosystem including those related to
Polaris, is designed for frontline hotel colleagues
hotel construction and development. We are using
and explains what trafficking is and how to spot the
the findings from the assessment to develop our
signs. It is also important for corporate colleagues,
human rights strategy and have already undertaken
particularly those who work with our hotels, to
Supporting Sustainable a number of actions in 2019, including updating
Development Goals: be aware of human trafficking risks and our
our Human Rights Policy, piloting a market-level
commitment to combat it. To date, more than
assessment and rolling out additional training
44,000 colleagues have completed the training.
and guidance for our corporate offices and
IHG-branded hotels. To help further support colleagues to identify
risks, we have a training session on human rights,
modern slavery and human trafficking for use
by our hotels to provide face-to-face training to
colleagues. All hotels, whether owned, managed
or franchised, have access to this information in
multiple languages.IHG | Responsible Business Report 2019 20
Introduction Our culture Our hotels Our communities Our performance
Human rights continued
Working together Business in the Community (BITC) Case study
We strongly believe that collaborative initiatives Through our early careers employability Global sporting events
are a powerful and effective way to combat human programme, IHG® Academy, we continue to IHG was a founding member
of the International Tourism We work closely with colleagues in operational roles
rights abuses. Through industry and cross-industry support human trafficking survivors. We are helping to provide enhanced training, raise awareness of the
Partnership (ITP), and has
initiatives, we can identify how to address systemic provide people from all walks of life, including available tools and review operational procedures
played a key role in working
risks, scale up best practice and provide remedy survivors of human trafficking, with hospitality to mitigate any identified risks where necessary.
collaboratively to share best
to victims of modern slavery. skills to help them improve their livelihoods. practice and tackle common In advance of the 2020 Super Bowl in Miami, IHG
issues and help build a better intensified communication and work with area hotels
International Tourism Partnership (ITP) Business and Social Responsibility (BSR) future for all. to ensure colleague completion of the company’s
We are members of the ITP Human Rights Working We regularly attend the BSR human rights mandatory anti-human trafficking training. We also
Madhu Rajesh
working group meetings to consult with experts partnered with non-profit organisation, It’s a Penalty,
Group and provided input on the ITP/ILO Qatar Director, International Tourism
on a variety of activities designed to educate guests
Project, which focuses on improving migrant and cross-industry peers on best practice Partnership (ITP)
and increase awareness of the issue of human
workers’ rights in Qatar and has resulted in and challenges.
trafficking before the event.
reforms of the kefala system.
The Tourism Child-Protection
Gangmasters and Labour Code of Conduct
Abuse Authority (GLAA) IHG joined the Tourism Child-Protection Code
Case study
We collaborated with the GLAA on designing a of Conduct (The Code) in 2019 to benefit from
hospitality protocol for identifying and reporting ECPAT-USA’s expertise in addressing human Hotel taster days with BITC
forced labour cases in the UK. trafficking and child sexual exploitation risks Through a partnership with Business in the
within the hospitality industry. Community and our IHG Academy employability
programme, in 2019, we held events in two of our
UK hotels to help survivors of human trafficking learn
more about the different opportunities a career
in hospitality can entail and build their confidence
to get back into employment.
View our 2019 Modern Slavery Statement
ihgplc.com/modernslaveryIHG | Responsible Business Report 2019 21
Introduction Our culture Our hotels Our communities Our performance
Responsible procurement
The provision of goods and services by Supplier Code of Conduct
our suppliers is critical to our ongoing To ensure that our suppliers act with the same
operations and we want to ensure we integrity and respect as we do, in 2019 we updated
engage with suppliers who share the our Supplier Code of Conduct (‘Supplier Code’).
same commitment to responsible It sets out the requirements, principles and values
business as we do. that IHG has adopted to promote ethical conduct
in the workplace, safe working conditions in the
supply chain, treatment of persons with respect
and dignity, and environmentally responsible
practices. The changes have been informed by the
Universal Declaration on Human Rights, Guidelines
for Multinational Enterprises of the Organisation for
Economic Cooperation and Development, the Ten
Principles of the UN Global Compact and the UN
Guiding Principles on Business and Human Rights.
Our Supplier Code has been approved by the
Corporate Responsibility Committee and sets out
our requirement that suppliers demonstrate that
they act with integrity and respect for human rights
3,688
Our supply chain activities are split into two and the environment. We expect our suppliers to
categories – corporate supply chains and hotel adhere to these standards, both within their own
supply chains. Our corporate supply chain covers business and across their supply chains. In total,
suppliers have signed procurement for our corporate goods and services as of 31 December 2019, 3,688 suppliers have
the Supplier Code. focuses on items such as technology and signed the Supplier Code.
professional services. Procurement of goods and To view our Supplier Code, visit:
services at the hotel level covers all items required ihgplc.com/policies
Supporting Sustainable for opening, renovating and operating a hotel, such
Development Goals: as food and beverage, furniture, cleaning products,
linen and electrical goods.
As our hotels are largely owned by independent
third party owners, these hotels are responsible
for managing their own independent supply
chains. In certain cases, IHG provides a centralised
procurement programme for both managed and
franchised hotels, such as IHG® Marketplace in the
Americas region (for US, Canada, Mexico) and IHG
Mall in Greater China. IHG also provides purchasing
support and leverages procurement platforms for
managed hotels in some countries within EMEAA.IHG | Responsible Business Report 2019 22
Introduction Our culture Our hotels Our communities Our performance
Responsible procurement continued
Policies and training Diversity in the supply chain Sourcing food responsibly
Our Global Procurement Policy is in place to help We recognise the importance and benefit With a wide variety of dining options available
It has been great to see our across our hotel brands, we are focused on
guide and educate corporate employees on how of ensuring our workforce represents the
Responsible Procurement
to spend responsibly, and in 2019 we launched a communities in which we operate. At IHG, sourcing our produce sustainably and ethically,
function take shape, following
programme for all employees to further increase its formation in 2018. We have we celebrate our diverse and inclusive culture, meeting our guests’ expectations.
their ethical awareness. The virtual training covers worked across the business and we seek to work with suppliers that share
IHG has worked with The Humane League,
specific elements of risks and opportunities that to ensure that our responsible the same mindset.
a leading farm animal protection non-profit
are important for employees to be aware of, business practices, values and
Through our partnership with leading NGO CARE organisation to commit to sourcing 100% cage-free
such as ethics and sustainability. In 2020, we will ambitions are translated across
our supply chain.
International UK, and key suppliers to our hotels, eggs throughout our US, Canadian and European
continue our employee engagement programme
we are exploring the social impacts that can be operations no later than 2022. This is part of an
and provide more in-depth education on Laura Simmonds
gained through creating more gender-inclusive overall commitment to source only cage-free eggs
responsible procurement. Head of Responsible
Procurement, IHG
workplaces, by carrying out detailed supply-chain across our entire global estate by 2025. During
Supply chain risks mapping and gender risk analysis exercise 2019, we provided education and training materials
of the textile industry. to all our hotels to help them in sourcing cage-free
We continue to progress our supplier risk eggs. We have also begun a mapping exercise to
assurance programme by reviewing suppliers’ identify supplier availability in our markets to enable
responses to our enquiries about their governance, us to meet our commitment.
human rights and environmental practices, and
requesting corrective actions be put in place where We are committed to 90% of our top seafood
there has been a deviation from our expectations. products being sustainably sourced. Included
Strategic suppliers receive hands-on support from in this commitment is the prohibition of shark fin
IHG in the form of business performance reviews being served in our hotel bars and restaurant.
to promote value realisation, mitigating risk
and creating healthy supplier partnerships.
We will continue to partner with our suppliers,
45%
managing supply chain risks related to
sustainability issues.
Green suppliers
In 2019, we introduced the IHG Green Supplier
Scorecard, which helps us understand the
environmental credentials of prospective IHG of new contracts through our tendering processes
suppliers going through our tendering process. were awarded to an IHG Green Supplier
The programme’s criteria poses sustainability
$102m
related questions on raw materials, manufacturing
methods, transportation and the use phase of the
product, which we subsequently use to assess
potential suppliers’ green credentials.
spent with diverse suppliers in 2019 vs $71m in 2018You can also read
