Sustainability Report 2020 - Booking Holdings
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BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Contents Introduction 03 People Management and 34 Employee Engagement Materiality Assessment and 08 Stakeholder Engagement Customer Privacy and Data 49 Protection 2020 Sustainable Travel 12 Insights Community Engagement 54 Facilitating Sustainable 15 Corporate Governance, 60 Travel Ethics and Compliance Human Rights 21 About This Report 66 Improving Environmental 25 Performance 2
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Introduction A Note From Our CEO 2020: MAKING PROGRESS TOWARDS A BETTER WORLD We began 2020 with expectations of continued global economic We agree. As a business, we strive for sustainability to manifest in growth, initiatives to combat climate change and reduced inequality. varying assets of our business operations – from understanding our No one imagined that we would lose 2.5 million lives in a global role in protecting and improving the environment, to addressing the pandemic and our travel industry would be shut down in many parts issues of diversity and inclusion, to making sure tourism is a force of the world. The impact of the COVID-19 pandemic on the travel for good and not destructive to communities. In this report, we lay industry has been transformational. We learned to live and work out the progress we made throughout 2020 on the sustainability differently, and with this came a realization that we could change front, and the changes we are committed to making, though we the status quo to a much greater degree. This is one of the few good acknowledge that significant work lies ahead. things that has come out of the pandemic crisis, because change While the devastation the pandemic wrought on the travel industry is needed in so many areas. caused us to postpone some of our sustainability projects in 2020, As a travel business, we work in an industry that we believe makes we are pleased that we were able to accomplish a number of key the world better. When Mark Twain wrote The Innocents Abroad as initiatives. a collection of his reflections on a five month trip to Europe and the In 2020, we created a formal sustainability department within Middle East just four years after the end of the U.S. Civil War, he said: Booking Holdings. While there were already dedicated sustainability “Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many teams within our individual brands, the addition of this new G LE N N D. F O GE L of our people need it sorely on these accounts. Broad, wholesome, department has helped to unify and support efforts across our entire GLENN CHI E F E D. FOGEL XECUT IVE charitable views of men and things cannot be acquired by vegetating organization. A coordinated approach to sustainability across all of CHIEF C OFFI EXECUTIVE OFFICER E R & PRESIDENT & PRESIDEN T in one little corner of the earth all one's lifetime.” our brands will help us achieve progress on numerous fronts. 4
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Introduction A NOTE FROM OUR CEO (CONT.) As part of this synchronized process, one achievement The unprecedented challenges of 2020 shined a that I am particularly proud of is Booking Holdings spotlight on many issues affecting the world that need becoming operationally carbon-neutral in 2020. This change. We hope that through this report, you see is a significant milestone for our business, and one we our efforts to help drive change. This is only just the were working towards even prior to the pandemic. beginning for us, but we are pleased we are moving We intend to remain carbon neutral in our operations forward to cultivate a healthier, more sustainable and moving forward, and look forward to making progress more inclusive world for everyone. on our sustainability strategy, including diversity and inclusion and sustainable travel. GLENN D. FOGEL 5
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Introduction Company Overview Booking Holdings is the world’s leading provider of online travel and related services, catering to consumers and local partners in more than 220 countries and territories through six primary consumer-facing brands: Booking.com, Priceline, Agoda, Rentalcars.com, Kayak and OpenTable. The company’s mission is to make it easier for everyone to experience the world. It had $35.4 billion in gross bookings (the total dollar value, generally inclusive of taxes and fees, of all travel services booked by the company’s customers, net of cancellations) in 2020. Headquartered in Norwalk, Connecticut, Booking Holdings has more than 300 offices around the globe employing more than 20,200 people. Booking Holdings’ common stock trades on the Nasdaq Stock Market under the ticker BKNG. 6
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Introduction Company Brands Booking.com is a global online leader in Priceline is a leader in online discount travel. Agoda is a leading global online connecting travelers with the widest choice HQ: Norwalk, Connecticut accommodations provider based of incredible places to stay. in the heart of Asia. HQ: Amsterdam, the Netherlands HQ: Singapore Rentalcars.com is operated as part of KAYAK provides an online price comparison OpenTable is a leading brand for booking Booking.com and offers online rental service (often referred to as a “meta-search”) online restaurant reservations. car reservation services. that allows consumers to easily search and HQ: San Francisco, California HQ: Manchester, England compare travel itineraries and prices. HQ: Stamford, Connecticut 7
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Materiality Assessment and Stakeholder Engagement Introduction In 2020, Booking Holdings performed its first A subset of stakeholders from different Booking sustainability materiality assessment to determine Holdings brands was selected for a mapping the most material environmental, social and exercise. This group represented senior governance topics related to the business. management and employees in key functions across the brands who have regular interaction with The topics included in the assessment were one or more of the broader stakeholder groups. determined through a process that included A survey was conducted with these stakeholders to research on material topics within the industry, prioritize the topics based on their materiality, and sustainability rankings, societal developments, and this prioritization was validated by expert interviews. relevant themes in the media, as well as topics raised by stakeholders throughout the year. 9
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Materiality Assessment and Stakeholder Engagement The outcome of this assessment informed Booking Diversity and inclusion Human rights Holdings’ strategic sustainability direction and guided Promoting and supporting a diverse workforce that Respecting and supporting human rights in our own us in the setup of this report. The results indicate that is inclusive for all employees. operations and in our value chain. the company’s sustainability priorities are aligned with the majority of our sustainability efforts. The Employee health and well-being Sustainable tourism sustainability topics that were shown as a priority by the assessment are: Fostering an environment that supports the physical Mitigating the negative effects of the tourism and emotional health of our employees. sector as a whole on the climate and overtourism, Compliance, ethics, and integrity and amplifying the benefits of tourism. Engaging customers on sustainability Ensuring compliance with laws and regulations Volunteering and charitable donations and conducting our business with integrity. Engaging customers on sustainability and stimulating sustainable travel choices. Supporting local communities through corporate Data privacy and security giving and employee volunteering. Environmental impact of offices and operations Protecting our customers' data and ensuring the measures needed to prevent security breaches. Managing the environmental impact of our offices and operations, such as energy, water, and waste. 10
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Materiality Assessment and Stakeholder Engagement Stakeholder Engagement Booking Holdings actively engages in nongovernmental organizations, industry and regulatory authorities of the countries constructive dialogue with stakeholders to groups and multilateral organizations). The in which it operates, such as the European learn which topics are most important to company takes an integrated approach Commission and Parliament, international them and to help the company prioritize toward stakeholder engagement by organizations like the Organisation for issues and take action where appropriate. continuously assessing its role in society, Economic Co-operation and Development As a result, the Booking Holdings brands its products and services, its business (OECD) and the United Nations, travel and can align these important topics with the performance and any other relevant topics tech industry bodies, hotel associations, company’s strategy and business where – on both a brand level and a Booking cities/destinations and multi-stakeholder necessary. Holdings level. platforms. In all business activities, Booking Holdings Booking Holdings engages with takes the interests of all its stakeholders policymakers and academics, regulatory into consideration. These stakeholders and government authorities and include employees, customers, civil society organizations (including stockholders, business partners and nongovernmental organizations, labor suppliers, as well as society at large unions and industry associations). These (governments, regulatory authorities, include the governments, legislative bodies 11
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT 2020 Sustainable Travel Insights 12
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT 2020 Sustainable Travel Insights Introduction In 2020 Booking.com conducted research on sustainable travel. While 2020 was an unprecedented year for the travel industry and travelers, the research reveals that travelers have the ambition and willingness to make more sustainable travel decisions in the future. “I think collaboration is our biggest opportunity in the travel industry, working together to tackle the big questions and putting aside commercial competition when it comes to addressing bigger-picture challenges such as climate change, waste, nature and culture conservation, social equality and equitable wealth distribution. To do this, we need to give consumers more options, more meaningful and trustworthy information, and tools that they can use to make good travel decisions. Then we can turn these big challenges into simple steps that everyone can use to improve how they travel – such as traveling light, with trust, slowly and carefully – then, collectively, we can make major changes.” DR. ANNA SPENCELEY Board member of the Global Sustainable Tourism Council and chair of the IUCN World Commission on Protected Areas Tourism and Protected Areas Specialist Group 13
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT 2020 Sustainable Travel Insights 82% Important 4% Not Important 72% 58% 54% 14% Neutral The percentage of travelers who think of travelers were more determined of travelers say that witnessing the sustainable travel is important to make sustainable choices in 2020 environmental impact of tourism while on while traveling, compared to 2019 vacation has caused them to make more eco-friendly choices in their everyday lives 10% Less likely 70% More likely 20% 52% 49% 69% The added likelihood a traveler will choose of travelers feel annoyed when an of travelers feel that it is harder an accomodation if it has implemented accommodation stops them from being to make sustainable choices on vacation sustainble practices as sustainable as they would like to be than in their everyday lives Note: See page 70 for research data points 14
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Facilitating Sustainable Travel 15
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Facilitating Sustainable Travel Introduction Booking Holdings believes as a company that intentions, both from consumers and partners, play it has a responsibility to help ensure the world an important role in the complex path to a more remains worth experiencing and to promote sustainable future. a more sustainable travel industry – culturally, To make sustainable travel choices easier for environmentally, and socioeconomically. If done everyone, Booking Holdings is focusing its efforts with respect for the world’s local communities, on two key areas that ultimately rely on each other environments and biodiversity, travel can broaden to succeed: horizons, reduce barriers, and bring people closer together. However, building a truly sustainable travel 1. S upporting the company’s partners to become industry will take time, coordination and concerted more sustainable, which in turn increases the effort. Through product innovation, partner support number of sustainable travel offerings; and and industry collaboration, Booking Holdings is committed to making sustainable travel easier for 2. Supporting the company’s customers to make millions of customers worldwide. sustainable choices. Fortunately, as highlighted in the 2020 Sustainable To do this, Booking Holdings is increasing the Travel and Future of Travel research, consumers selection of sustainable experiences that it offers are increasingly focused on making sustainable on its platforms by working with partners to make travel choices. Booking Holdings’ partners are it simple for them to share their sustainability also looking at ways to improve their businesses practices with the company. The company aims to for the future, and 2020 was no different. These support and facilitate its partners’ efforts to make 16
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Facilitating Sustainable Travel INTRODUCTION (CONT.) their products and operations more sustainable Booking Holdings understands that this will be a through a variety of formats, including knowledge- journey for all industry participants and that everyone sharing events, global sustainability forums and will be learning together as they take small steps educational resources. By continuously improving toward making the industry sustainable. the company’s offerings, Booking Holdings ensures that its partners are able to showcase their efforts “We see the need to create a framework to customers and can reap the benefits through for sustainability in the travel industry increased consumer demand. that demystifies the topic for both partners and consumers. In doing that, Booking Holdings is also focusing on impact we have the immense opportunity to and efficiency, developing scalable solutions and develop a framework that can unify the leveraging existing sustainability initiatives. This industry. That’s the beauty of working requires validation from experts and research on on this topic at Booking Holdings. both customers and partners. For instance, guest Together, as a group, we have the insights help tailor Booking Holdings’ approaches and ability to test solutions across the help the company understand what friction points it has so it can better define what role it can play in entire industry and be one step closer solving them in a scalable way. To support them as to making sustainable travel easier for they navigate the current travel landscape, Booking everyone.” Holdings is also adjusting its resources and content to MARIANNE GYBELS reflect the impact of COVID-19 on the industry. Director of Sustainability at Booking Holdings 17
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Facilitating Sustainable Travel Progress In 2020, Booking Holdings’ largest brand, Booking.com, The company has also made it easier for partners to led by the United Nations Environment Programme set goals to build a knowledge base around share data by creating a dedicated sustainability page and the United Nations World Tourism Organization sustainability and share it with its partners. This meant in its partner-facing product. On the Booking.com in collaboration with the Ellen MacArthur Foundation. first learning from customers, partners and industry Partner Hub, partners can now find the newly The initiative is aimed at finding a systemic solution research and then using these insights to launch launched Sustainability Handbook, which shares the to global plastic. In collaboration with the Sustainable educational content to support partners on their benefits of adopting sustainable practices and how Hospitality Alliance, Booking.com also piloted a journey to become more sustainable. This involved to implement them. new webinar series in Oceania covering the role of offering partners a scalable solution to display their sustainability in the current travel climate and the Booking.com’s product team is also in the process of sustainability efforts, which would then be visible benefits of sustainable hotel design. evaluating the best way to present sustainable travel to guests during the booking process. It was also information to consumers. This includes displaying Agoda, with its international business center in important to set the foundations for sustainable individual practices, such as reducing water waste, Bangkok, also advanced the sustainability journeys supply and to collect initial sustainability information as well as enrollment in first-party or third-party of its partners. The Agoda Sustainability Forum was from accommodations across the business. eco-certification programs. Customers can now see launched in 2020 in partnership with the Tourism To achieve this goal, Booking.com worked with third- sustainability information for hundreds of thousands Authority of Thailand and World Wide Fund for Nature party experts to create a framework for gathering and of properties on Booking.com. (WWF) Thailand. This forum included the pilot of a sharing partner sustainability information. Booking.com new sustainability webinar series,“Plastics in Hotels: Booking.com is also working to start new initiatives developed this approach as part of our role as a Trends and Best Practices,” and more than 170 hotel with leaders in the field of sustainability. The company founding partner of the Travalyst coalition, a non- partners from 20 cities in Thailand were invited. was among the first signatories of the Global Tourism profit initiative that aims to deliver unified standards Agoda also expanded its Gold Circle Awards, which Plastic Initiative, which was launched in 2020 and is for sustainability reporting across the tourism industry. 18
“We take so much care to share all relevant information with guests in the booking process to inspire them before their stay with us. It’s a step in the right direction to be able to share more information on our sustainability practices, as it is an element that is so key to our identity at Hotel Jakarta. We also believe that sustainability adds to the guest experience, and we want them to know that it’s possible to provide a luxurious stay while also being sustainable. We hope to see this type of transparency increase across the industry and continue finding more ways to represent our sustainability efforts on the Booking.com product.” NICO EVERS General Manager at Hotel Jakarta 19
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Facilitating Sustainable Travel PROGRESS (CONT.) recognize partners that provide guests with the best “Travelers are interested in making more sustainable rates, availability and flexibility, by sending a “green gift” to 888 partners in Japan, Thailand and Indonesia. travel choices, but with many different factors The green gift equates to five trees planted on a affecting the amount of CO2 a flight emits, it is partner’s behalf across two WWF Thailand projects: nearly impossible to figure it out on your own. We the NEWtrees Project in Indonesia and the FLR349 launched our Least CO2 sorter to add even more Project in Thailand. This expanded on a 2019 initiative, rewarding partners’ efforts while also increasing useful information to our search results.” awareness of rainforest protection and resulting in PER CHRISTIANSEN 4,440 trees being planted. Vice President of EMEA Marketing at KAYAK Also in 2020, KAYAK launched its Least CO2 sorter, which enables customers to see the environmental impact of their flight, making it easier for travelers to make more sustainable flight decisions. KAYAK has launched this product in the United Kingdom, France, Germany and Poland, and through its subsidiary company, Momondo, in Denmark, Sweden, Germany and the United States. 20
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Human Rights 21
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Human Rights Introduction As part of Booking Holdings’ mission to make it easier for everyone to experience the world, the company empowers customers to choose for themselves where they go and what they do once they get there. Booking Holdings recognizes its responsibility to educate and inform customers, and to do what we can to ensure that human rights are respected. Thus, the company is working to protect and advocate for human rights with its partners, customers and colleagues. 22
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Human Rights Approach In 2020, the company began developing a Booking Holdings Human Rights Statement and is also in the process of formulating human rights – guiding principles, which aim to align its brands on best practices. Through these efforts, Booking Holdings strives to equip itself with the knowledge and resources to prevent infringement on the rights of others. As a result, the company is able to address any adverse human rights impact that may be created through the way its customers, partners and employees experience the world, and inform and educate customers about potential risks while traveling. 23
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Human Rights Progress Booking Holdings’ progress in 2020 on its human rights goals included the completion of a human rights risk assessment. With our mission to make This consisted of a review of internal policies, interviews with key department leads and research on industrywide risks and it easier for everyone to stakeholder expectations. The assessment also identified which areas of the business were the highest priority in terms of experience the world comes potential impact on human rights. the responsibility of respecting Booking Holdings is in the process of developing internal guidelines and risk mitigation procedures related to human rights. the human rights of all the These will outline the company’s approach to understanding and lessening the risks present across its supply chain. Going forward, parties and stakeholders that Booking Holdings will continue maturing its processes to further assess the human rights impact across its operations and, in 2021, we serve.” aim to implement and launch a publicly available Human Rights Statement. EDUARDO ANDRADE Senior Vice President of Global Compliance and Ethics Officer at Booking Holdings 24
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance 25
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance Introduction Global warming accelerated by human-made remains poised to resume them once employees greenhouse gas emissions has the potential to harm return to offices. all life on Earth. Today, travel and tourism account for The office closures did, however, give Booking.com more than 5% of global greenhouse gas emissions, the opportunity to focus on the foundational pillars according to the U.N. World Tourism Organization. of its sustainability strategy. This included renewable As an industry leader, Booking Holdings recognizes energy procurement, the business travel program its responsibility – and potential – to reduce the and waste processing. In 2020, Booking.com created industry’s carbon footprint, beginning with improving a renewable energy policy for its offices and data its own environmental performance. centers. This policy helps ensure that Booking.com’s In 2020, Booking Holdings achieved its most purchase of green energy directly contributes to ambitious goal to date: becoming carbon neutral. increasing the clean energy supply in local markets Booking.com aimed to reduce its operational and reducing operational reliance on fossil fuel. The emissions by 10% and eliminate single-use plastic halt of business travel also created an opportunity to products in its global offices. To do so, Booking.com reflect on how business travel might function in the planned to make energy efficiency improvements in future: When are face-to-face meetings necessary, six of its highest-emitting offices, encourage energy- and what can be achieved virtually, at a distance? efficient behaviors among colleagues and address Finally, while the process of eliminating single-use its business travel footprint. These plans were plastics was put on hold, the office management postponed due to pandemic-related office closures team was able to redirect its focus to implementing from the beginning of 2020, but the company recycling in offices that do not currently have it 26 in place.
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance Plastic Reduction and Waste Streaming Plastic reduction and waste streaming are – replacing plastic bottles with cans and the latter, a data destruction certification key components of Booking Holdings’ trading items in plastic packaging for is provided. Booking.com extended its overall environmental performance paper-packed alternatives. Booking.com contract with a third-party e-waste services strategy. Before pandemic-related also developed a policy for any furniture supplier to recycle, refurbish and resell office closures, Booking.com had left over after an office is closed or whenever possible. already eliminated single-use plastics in relocated, which became highly relevant In 2020, Agoda partnered with GEPP, a approximately two-thirds of its offices in 2020 and will continue to be in 2021. Bangkok-based social enterprise tackling around the world. Because plastic usage The new policy stipulates that functional waste management issues. Together, they differs widely, the solutions for plastic leftover furniture remain with the landlord piloted the collection and management reduction were made on a case-by-case for future use or that it be donated, of recyclables on four floors of Agoda’s basis. For instance, in Booking.com’s therefore preventing as much furniture as largest office, located in Bangkok, a city headquarters in Amsterdam, the business possible from being discarded or sent to without a uniform recycling program. removed single-serving packages entirely landfills. Agoda aims to scale this across 13 of the and overhauled its catering program to Agoda and Priceline implemented office’s 16 floors in 2021. This represents reduce waste. In the Asia-Pacific region, electronics recycling programs, where a significant step toward implementing a solutions included replacing plastic lunch out-of-use equipment such as keyboards, viable waste management process in a city boxes with biodegradable ones and – in monitors and laptops can be refurbished where recycling remains a challenge. the many offices with vending machines and resold or dismantled for recycling. For 27
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance PLASTIC REDUCTION AND WASTE STREAMING (CONT.) 2020 E-WASTE PROGRAM In 2021, Booking.com will implement restaurants. In normal operations, these 27% 11% 30% 17% 72% 22% 45% 15% recycling programs in all offices in cities restaurants feed close to 4,000 employees 18% 20% 33% with municipal recycling programs daily and therefore have enormous 8% 67% 71% 13% and in buildings that enable the proper potential impact on food waste reduction. 31% 63% 1% 32% processing of waste, to ensure that any The results of the measurement exercise 54% 52% waste separation done by the teams has will inform future food and beverage 34% 14% 25% its intended impact. In preparation, programs and help put measures in 14% 11% Booking.com mapped these factors for place that further reduce food waste in each of its global offices. In the future, the restaurants. In 2020, Booking.com ou / rs k op / s rs rs ty em or ne se pt ks ito ve te ili s s w ob La oo la r in r st el ive on the company plans to deploy innovative was able to finish implementing waste Se et Pr Sy M eb N M D ot solutions like Agoda’s partnership with streaming in 70% of its Amsterdam offices N isc M GEPP to address recycling in the with improved messaging for employees, remaining offices. with the remaining 30% ready to go when A-grade: Sales refurbishment C-grade: Part harvest offices reopen. program FlexIT (sold in parts) & recycling Booking.com also began measuring food waste in all its Amsterdam office B-grade: Sales in batches Agoda Recycling Program to brokers 28
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Materiality Assessment and Stakeholder Engagement Improving Environmental Performance SHORTLIST OF TOPICS CONT. Carbon Emissions Reducing its carbon footprint is a crucial part of in accordance with the company’s newly developed Booking Holdings taking responsibility for the renewable energy policy. environmental impact of its business. One effort is In 2021, Booking.com, which has the majority of to properly measure and address carbon emissions operational emissions for the group, is reducing its over which the company has direct operational emissions and increasing its energy efficiency by: control. Thus, the company is disclosing in this report its Scope 1 and 2 carbon emissions, which 1. Continuing to convert standard grid mix energy come from its offices and data centers, and Scope contracts to renewable energy contracts; 3 emissions from its business travel flights, and the plans in place to address them. In future, the 2. Carrying out the postponed efficiency upgrades company will look to address Scope 3 emissions in the highest-emitting offices; and from the supply chain. 3. Supporting staff in increasing their energy While Booking Holdings saw a 23% reduction in efficiency both in the office and at home. carbon emissions from offices and data centers in Furthermore, in 2021 the data center teams will 2020 compared to the 2019 figure, this reduction continue to prepare for significant optimization, can mainly be attributed to office closures and the which will not bring reductions in 2021 but are halt of business travel due to the pandemic. Some expected to bring significant reductions in energy reductions can also be attributed to the conversion use and emissions in the coming years. Finally, a of grid energy contracts to green energy contracts, continued reduction in emissions is expected due 29
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance 2020 OPERATIONAL OFFICE & DATA CENTER CARBON EMISSIONS (CONT.) EMISSIONS Consumption & Emissions* (including the emissions from offices, data centers Energy consumption (MWh) Emissions (Metric Tons CO2e) & business travel flights) *Note: The 2019 consumption and emission data 257,377 TOTAL SCOPE 1, 2 & 3 (METRIC TONS CO2e) for offices and data centers has been recalculated to 257,377 189,713 meet the revised methodology mentioned in "About This Report" on page 69. For this reason, both 55,923 131,895 189,713 173,809 173,809 the figures reported last year and the recalculated 131,895 Scope 1 2,373 51,335 66,219 57,270 figures for 2019 are displayed in this graph. 66,219 57,270 44,367 51,335 44,367 Scope 2 41,994 2018 2019 (report 2019 (new 2020 Scope 3 11,556 2018 2019last (report year) 2019 (new methodology) 2020 last year) methodology) GREENHOUSE GAS BOOKING.COM EMISSIONS BY SOURCE RENEWABLE ENERGY 2020 29% of Booking.com' office area is powered 56% 56% by renewable energy 24% 21% 24% 21% Office Office Business Travel BusinessFlights Travel Data Centers Data 29% Flights Centers 30
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance CARBON EMISSIONS (CONT.) to the ongoing restrictions on business travel and applied additional quality criteria in its selection to the continued closure of offices, both temporary mitigate some of the risks associated with carbon and permanent. offsets, such as leakage or lack of additionality. In addition to increasing our emission reporting Booking Holdings created the carbon-offset capabilities and strengthening plans to reduce strategy with the idea that, while the company is our energy use and carbon emissions, Booking offsetting the past emissions of its operations, it Holdings achieved carbon neutrality in 2020 can simultaneously address the negative impacts and has committed to continuing to be carbon of the travel industry. Therefore, Booking Holdings neutral in its operations from 2020 and beyond. identified three pathways for offsets in 2020: To that end, in 2020, a carbon offset strategy was 1. S upporting the global transition to renewable developed with great care. While carbon offsets energy, are a viable temporary solution to compensate for emissions that have not yet been reduced, Booking 2. Supporting biodiversity and ecotourism; and Holdings believes it must always offset in support of an emission-reduction plan rather than in its place. 3. The transformation of landfill waste. In 2020 – the first year of purchasing carbon Scope 1 and 2 emissions have been offset, along offsets – Booking Holdings opted to offset only with Scope 3 business travel flight emissions, via projects certified as Gold Standard or Verified through six carbon-offset projects around the world Carbon Standard to ensure high quality and impact. that support these pathways. In addition to these certifications, Booking Holdings 31
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Improving Environmental Performance Carbon Offset Projects Ejuva Small-Scale Solar Energy Project, Orb Energy Solar, India Pichacay Landfill Gas to Energy Project, Namibia Ecuador Orb Energy is bringing rural and semi- This project contributes to the urban populations up the energy ladder This joint project between Dutch diversification of Namibia’s energy mix; reduces by making household solar technology accessible in engineers and the municipality of Cuenca carbon emissions by producing green, emission- India, where the largely coal-powered grid struggles processes the waste at the Pichacay landfill to free electricity; and promotes employment and to cope with the increasing demand for energy. generate electricity. In addition to preventing the skills development during both construction and Since the creation of this project, it has led to more emissions that would have been released from operation. This project demonstrates the positive than 100,000 solar energy installations and created the landfill and greening the Ecuadorian grid, this effects of solar development in Namibia and 400 skilled jobs, mainly in rural areas. project contributes to the improvement of the neighboring countries, where projects like these are waste management system and creates local jobs. Guacamaya Small-Scale Hydropower only starting to develop. Program, Honduras Bangkok Kamphaeng East Landfill Gas Southern Cardamom REDD+ Project, to Electricity Project, Thailand These new small-scale, run-of- Cambodia river hydropower plants supply clean energy Thailand’s first landfill gas project is This project protects 497,000 hectares to Honduras’ widely dispersed, rural and located at the city’s main landfill site, which accepts of tropical rainforest in southwest Cambodia. The underdeveloped communities. The technology approximately 5,000 tons of waste per day from project has also expanded its associated ecotourism guarantees minimal impact on surrounding nature. Bangkok. As Thailand has no formal recycling program that not only increases income for the 28 In addition, reforestation and afforestation activities scheme to prevent the increasing amount of villages in the rainforest’s vicinity but also reduces have been implemented alongside environmental waste sent to landfill, this project creates a viable the illegal deforestation that occurs in the region. education programs for the local communities. alternative to processing this waste. 32
“While many of the programs and initiatives we had intended to implement over the course of the year were put on hold due to global office closures, it also gave us a unique opportunity to reimagine certain aspects of our approach to create a strong yet flexible foundation for the future. Instead of only focusing on quick reductions, our ambition is to create a sustainable office portfolio, no matter how our office landscape might continue to evolve over the coming years. This is a direct ask from our own people. They feel responsible to contribute their bit to a sustainable world, including their working environment.” MARNIX MALI Director of Real Estate and Workplace Services at Booking.com 33
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement 34
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement Introduction The talent, experience and passion of employees drive Booking Holdings’ business success and company culture. That is why Booking Holdings deems it so important to offer the right support and constantly improve our people management. The challenges of 2020 were immense. Booking Holdings had to close offices, find ways for employees to effectively work from home and endure the immensely difficult process of reducing its workforce around the world – all while navigating the ongoing uncertainty and rapid change of the pandemic. Yet while most of the company’s connection was virtual, Booking Holdings was still able to provide a supportive working environment for employees. 35
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement Diversity, Inclusion and Belonging Booking Holdings values the unique contributions, In addition to each brand’s anti-discrimination Agoda set up a Diversity and Inclusion Council realities and experiences of its people and policies, Booking Holdings is establishing an to empower employees to build a more inclusive communities and strives to be a positive influence for integrated Global Anti-Harassment and Anti- environment and make meaningful changes change. To that end, increasing diversity and inclusion Discrimination Policy across our entire organization. within the organization. The council is made up efforts across the business has been a top priority. We Across all our brands, we are also committed to of key employees across Agoda and is focused on work with our brands to provide a work environment pay equity, regardless of gender, race or ethnicity. recruitment biases and leadership engagement. where our employees feel connected, valued and With the help of our independent compensation In 2020, the council successfully launched a pilot able to deliver their best. consultant, Mercer, we conduct pay equity studies training program on being an effective ally for every other year, and in the off years, we work on inclusion. All employees have access to the new Across all our brands, Booking Holdings runs several remediation plans to address outliers. “allyship” webpage and its educational resources. initiatives that support our diversity and inclusion Nearly 20 Customer Experience Group (CEG) team efforts, such as the Women in Leadership program. Through Agoda Life Groups, introverted colleagues members and 95% of employees on the People team For example, Booking.com successfully participated tried to tackle the challenges they may have in the completed the pilot training course. Participants and completed the fourth cohort of the Women in workplace and received enhanced training and reported a 96% satisfaction rate, and 90% can now Leadership program, where the program focused on development. Agoda Life Groups are employee-led recognize good allyship behaviors after completing high-performing women at the director to VP level. resource groups aimed at educating, connecting the training module. Additionally, Agoda ran its local women’s leadership and inspiring employees. There are more than 20 program, which is aimed at helping women develop active Agoda Life Groups, including Women@agoda, Agoda also launched a survey to better understand skills such as executive-level communications, the LGBTQ+ group Colors@agoda, Better Together accessibility for its employees with disabilities. Using networking and other critical managerial skills. The (kickstarted from the Black Lives Matter movement) the findings, the company plans to advance its end-of-year project for that program involved pitching and a wide range of sports interest groups. commitment to ensuring that every employee is 36 inclusion ideas to senior business leaders.
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT Male Female 78% 78% 78% 78% People Management and Employee Engagement WOMEN HEADCOUNT In Technology - Overall ByNot Not Not Provided Gender -Provided Overall, 2020 Provided DIVERSITY, INCLUSION AND BELONGING (CONT.) Male Male Female Male Female Female 0.1%0.1% 22% Not Provided 22% 22% 22% 78%78% 78% 78%78% 78%78% 78% Male 78%78% 78% Female 78% 20,239 Notes: 0.1% Male Male Male 20,239 2020 Q1 2020 Q2 2020 Q3 Female Female 2020 Female Q4 78% 78% 78% 78% 49.5% Male 49.5% 20,239 Headcount Headcount Headcount 50.4%50.4% Female “Not provided” sections represent less than 1% and scores are rounded to the nearest whole number but remain 49.5% Headcount 50.4% statistically de minimis. 22%22% 22% 22%22% 22% 22%22% 22% 22%22% 22% Male Female *Leadership is defined as extended leadership team (ELT), 22%2020 22%2020 22%2020 22%2020 Gender by Brand, 2020 which includes the company's senior leadership and extends 2020 Q1 Q1 2020 Q12020 Q2 Q2 2020 Q2 2020 Q3 Q3 2020 Q3 2020 Q4 Q4 2020 Q4 71% 71% 71% 70% 1 to 4 levels below the chief executive officer of each brand company (depending on the number of employees within 2020 Q1 2020 Q2 2020 Q3 2020 Q4 49.44% 49.44% 47.71% 47.71% 47.66% 47.66% each brand) LEADERSHIP* 49.44% 47.71% 47.66% By Gender 50.56% 50.56% 52.29% 52.29% 52.18% Male Male Female Male Female Female 29% 29% 29% 52.18% 30% 50.56% 52.29% 52.18% 71% 71% 71% 71% 71% Male 71% 71% Female 70%70% 2020 Q1 2020 Q2 2020 Q3 2020 Q4 71% 71% 71% 70% 57.98% 57.98% 55.52% 55.52% 69.53% 69.53% 29%29% 29% 29%29% 29%29% 30%30% 57.98% 55.52% 69.53% 42.02% 42.02% 44.48% 44.48% 30.47% 30.47% 29% 29% 29% 30% 20202020 Q1 Q1 2020 Q120202020 Q2 Q2 2020 Q220202020 Q3 Q3 2020 20202020 Q3 Q4 Q4 2020 Q4 42.02% 44.48% 30.47% 37 2020 Q1 2020 Q2 2020 Q3 2020 Q4
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement DIVERSITY, INCLUSION AND BELONGING (CONT.) appropriately supported in the workplace in 2021. In 2020, Booking.com’s “Diversity has always been a core Agoda is also adding inclusion as a topic in its annual commitment to an value of Booking.com. As we rank employee engagement survey to better understand even more inclusive the need for further inclusion initiatives and get working environment at the top of the Financial Times feedback on its three employee resource groups: was recognized by the Financial Times, which Diversity Leaders list for 2020 – an LGBTQ+, gender equality and social justice/equality. awarded Booking.com first place in its Diversity award ranked by colleagues – it Early in 2020, Rocketmiles, a part of Agoda, formed Leaders ranking, which is based on employee is clear that diversity remains at evaluations. There was also growth in grassroots an employee-led committee to discuss issues and the heart of the company. What’s employee initiatives, new training and updated provide monthly updates to the company regarding policies. Furthermore, 85% of all managers and 100% even more heartening is knowing proposed initiatives. The committee created a of all recruiters have now completed unconscious that the data behind this ranking dedicated Slack channel to provide a safe space for does not hide the voices of bias training. employees to share diversity and inclusion challenges. To get an outside perspective, a diversity consultant Booking.com also held its third Technology Playmaker underrepresented groups, instead was hired to audit the company’s diversity practices Awards, an initiative to recognize the achievements giving them additional weight.” and develop action points for improving them. of women in tech and celebrate diversity of all kinds CHUCK STEPHENS Dedicated office hours were set up with experts across the global technology sector. Awards were so employees could share their experiences in a given in nine categories, with a total prize fund of Director of Inclusion, Diversity & Belonging and Well-Being at Booking.com private setting. $67,000, plus one Technology Playmaker of the Year award, which included a $12,000 prize. Almost 850 38
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement DIVERSITY, INCLUSION AND BELONGING (CONT.) nominations were received, with the 10 winners candidates. It has created more than 300 BBI Women Impacting Priceline and Panorama (Women selected from among 45 finalists spanning 20 questions for all job competencies used to screen in Tech in India). A group for Black employees will be countries. candidates. Cultural fit is also evaluated objectively formally launched in 2021. using Priceline’s values and associated BBI questions. In 2020, Priceline continued to focus on examining Priceline’s onboarding program, Embark, has been Additionally, hiring managers and interviewers will its people processes to ensure fair and equitable reimagined to be virtual and thus now available go through formal training on BBI and inclusive consideration, to build a workforce that more closely globally. Thus, for the first time, all Mumbai hiring practices in 2021. To further drive inclusion mirrors the customers it serves and hopes to serve, employees were able to participate. As Priceline has and belonging, two employee resource groups were and to create an environment where everyone feels expanded its global footprint, it has made great efforts created to support women and gender equality: welcomed, valued and able to thrive and contribute. to build the understanding of cultural differences into To that end, all of Priceline’s job descriptions were its processes, including creating a guide for hiring in rewritten to ensure the use of inclusive language. India, customized communications tools, a tailored Priceline also formed relationships with key external orientation for new hires in Mumbai and benefits that partners to drive a steady and robust pipeline of meet the unique needs of its Indian colleagues. diverse candidates. All recruiters are now evaluated Education and building awareness continue to be on whether they provide diverse slates of candidates critical components of Priceline’s diversity, equity to hiring managers, and external partners are and inclusion strategy. The organization offers contractually held to that same standard. programming around nationally recognized months Priceline has begun phasing in behavioral-based of celebration like Black History Month and globally interviewing (BBI) to its talent acquisition protocol recognized holidays and celebrations like Diwali to ensure a more objective means for evaluating 39
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement DIVERSITY, INCLUSION AND BELONGING (CONT.) and International Women’s Day. All people leaders end, KAYAK and OpenTable advanced their inclusive To ensure that all of their marketing assets met the at Priceline have received a full day of inclusive hiring process in 2020, first by conducting an audit highest diversity and inclusion standards, KAYAK and leadership training. In 2021, individual contributors will to evaluate the hiring and retention journey and OpenTable defined best practices and conducted go through training on understanding unconscious then by launching an interview policy that required an audit of their current assets in North America. bias, and leadership will take a deep dive into the active consideration of at least two candidates from They held training sessions for their marketing and topic of gender inequality. In the wake of the George underrepresented groups. So far, this has been rolled product teams on how to implement these new best Floyd tragedy, a menu of learning options was out in the United States, with the United Kingdom practices and ran a pilot in the United States to learn created to deepen understanding of unconscious and Latin America planned for phase two in 2021. how to better scale for global campaigns. This pilot bias, privilege and systemic racism. All people leaders Interview certification is required for all interviewers, is ongoing for their assets in the Europe, Middle East had a performance goal to consume at least three requiring them to undergo basic legal and inclusion and Africa regions. pieces of content from those options, share what training before they can interview candidates. Booking Holdings’ employee reporting system they learned with their teams and commit to taking KAYAK and OpenTable are also diversifying their job received several reports that mentioned discrimination action as a result of those lessons. board postings and partnering with underrepresented or alleged behavior described as discriminatory. KAYAK and OpenTable also strive to reflect the groups such as historically Black universities in the Upon investigation, none of the allegations were diversity of the societies in which everyone lives United States. From 2020 onward, all employees substantiated as an act of discrimination. However, and works. To achieve this goal, both brands are will receive mandatory training on allyship, inclusion one of these reports did reveal a proven allegation of working to ensure they have a pipeline of candidates and equality, with anyone at director level and above improper conduct (not discrimination), which resulted for open positions that are representative of all the required to receive unconscious bias training. The two in appropriate disciplinary action. communities they serve, and that once employees companies also reviewed senior executive positions are hired, that they feel fully supported. To that across their subsidiaries and have sought to increase 40 representation of underrepresented groups.
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement Training and Development Despite the challenges of relocating the majority start thinking about employees through the customer To further support employees in their career of operations from offices to homes, Booking experience lens. Throughout 2020, engagement development, KAYAK and OpenTable launched Holdings’ brands remained committed to employee tool kits were shared with all Agoda offices every Your Career Journey, a new program that enables development. Booking.com continued to develop month. Each explored a different theme and provided employees to request feedback at any time, its skills-centric learning culture, which became practical guidance and key resources to employees track one-on-one meeting topics and create a especially important during this time of upheaval and and leadership teams, including corporate social development plan with their managers. change. Contributing to this culture, Booking.com responsibility (CSR) engagement information. To support employees and managers with the move worked to enable all employees to upskill and learn from office to home as the primary place of work, more easily while at work by providing tailored Priceline developed a guide on effective remote learning opportunities throughout 2020. working techniques. Alongside this, the company In 2020, Agoda launched its Agoda Grow Boost created an engagement strategy that utilized Slack Program, which provides online content to as a channel for lighthearted, engaging employee- employees just before their 18-month tenure that centered content. In Mumbai, Priceline released encourages them to drive career conversations with a dedicated hiring manager guide to highlight the their managers. A virtual global Career Conversations nuances and norms of Indian culture, providing Workshop was launched in parallel, equipping guidance on how to hire and lead effectively across managers to better support employees with their cultures and time zones. career development. In May 2020, a webinar titled In addition, Priceline created a discussion guide for “Enhancing Employee Experience” was delivered to all people leaders to hold effective one-on-ones with 40 members of the People team to enable them to 41
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement TRAINING AND DEVELOPMENT (CONT.) their employees to better manage performance and “Travel opens doors to different cultures, different goal attainment, as well as to understand how they can better support the needs of each employee. people and life-changing experiences, putting diversity, equity and inclusion at the heart of To improve on career development opportunities for its employees, Priceline updated all its materials everything we do at Priceline. For all employees related to competencies and competency to flourish and to serve a diverse customer base, frameworks to facilitate greater “self-serve” for we are continually examining and adjusting our interested employees and their managers. This included assessment tools tailored to each processes to ensure that all voices are heard framework, an individual development plan template and heard equally. To us, diversity, equity and and sample, and a menu of sample development inclusion are not just concepts, but values we actions for each competency (with emphasis on strive to live out every day, both as a team and as relationship- and experiential-based development strategies). a business.” BRETT KELLER CEO at Priceline 42
BOOKING HOLDINGS / 2020 SUSTAINABILIT Y REPORT People Management and Employee Engagement Health and Safety Booking Holdings considers employee Booking.com’s Global Security and Priceline made a number of changes to safety and well-being to be of the highest Resilience team, in conjunction with Real its offices during the pandemic to ensure importance across the entire company. Estate and Workspace Services, established a safe place for the essential workers As lockdown measures forced business a global return-to-the-office protocol. This who remained and to prepare for an operations to move from offices to homes, was implemented to ensure a safe and eventual return for all. These changes all brands worked quickly to make sure healthy office environment in countries included adding touch-free functions employees were safe, healthy and able to where lockdown restrictions were being to break rooms and bathrooms, adding do their jobs under the quickly changing eased. sanitizing stations throughout the office circumstances. At Booking.com, for Agoda took a similar hands-on approach and removing furniture to adhere to social example, a COVID-19 support network to working from home. The company distancing. was set up via International SOS, giving quickly equipped more than 700 managers employees who contracted the virus with guidance and resources on managing access to medical specialists who could remotely, ensuring that engagement and provide advice and assistance. Anonymous morale were maintained and reflecting information was shared with corporate Agoda’s core values. Agoda’s Customer security to enable contact tracing and to Service teams launched CEG Leadership help reduce potential exposure of staff. Connect, a portal for management resources such as team-building activities. 43
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