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.
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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.
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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.
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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 systems
 IHG | 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.
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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.
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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.
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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 colleagues
 IHG |  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-learning
 IHG |  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 module
 IHG |  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/modernslavery
 IHG |  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 2018

 IHG |  Responsible Business Report 2019 23

Introduction Our culture Our hotels Our communities Our performance

Making IHG a great place to work

We are a people business. Whether Our values As one team, we work to a set of values we believe
someone is a guest staying in one of our are important to IHG and our guests. These values
hotels, an owner investing in our brands, guide everything we do – from how we work
or they are joining us as an employee, together, to how we support and recognise our
people, and make sure they learn new things
their choices are shaped by our people.
and grow.
A diverse and inclusive culture plays
a critical role in how we work better Do the Aim
right thing higher Developing and rewarding talent
together, growing our business and It is important that everyone feels part of an
delivering on our purpose of providing inclusive and safe environment. We empower our
True Hospitality for everyone. people to develop and try new things by offering
guidance and support and ensuring that they have
the tools and resources necessary to grow their
Show
careers. We make all these tools available through
we care an online learning suite including MyLearning,
Awards
Harvard ManageMentor and face-to-face
training sessions.
Throughout the year, line managers and mentors Voice of the employee
frequently meet with their employees, giving The evolution of our culture and nurturing of talent
them the opportunity to gather feedback on is critical to IHG’s long-term success, and the Board
Celebrate Work better their performance and discuss their career follows this closely through regular updates. In
difference together development and aspirations. 2019, we appointed a designated Non-Executive
To support IHG’s growth, we work to a set of Director to ensure the Board’s engagement with
behaviours that enable our people to perform IHG’s workforce, with several forums providing
at their best and develop their capabilities. a valuable cross section of views that ensures
Throughout 2019 we held a number of virtual a colleague voice is represented on key matters.
learning summits for our corporate employees
around the world, to come together to learn more Employee engagement
about growth behaviours and how we can live by Twice a year, we measure employee engagement
them every day. Through the summits, employees through Colleague HeartBeat, our way of
heard from world-class speakers, explored and understanding how our employees feel about
applied tools and exchanged views and ideas where they work and involving them through their

87%
including using best practice examples of how feedback in how we can continue to improve.
they have demonstrated the behaviours. In 2019, we achieved an average engagement
score of 87% which gained us recognition from
Supporting Sustainable We want to ensure that all our employees feel Aon-Hewitt as Best Employer benchmarked
Development Goals: recognised for their efforts and contributions. against industry scores.
In 2019, we launched a new share plan for all
corporate employees, which gives them the
average employee
engagement score, 11% opportunity to invest in IHG’s growth.
above Kincentric’s top
quartile benchmark.
 IHG |  Responsible Business Report 2019 24

Introduction Our culture Our hotels Our communities Our performance

Valuing diversity and inclusion

9/10
We’re a global business with a global Our colleagues should feel included, valued and
outlook. With people working in hotels respected – not just because it’s the right thing
and offices in more than 100 countries, to do, or the best way to behave – but because
our colleagues represent multiple people are the best version of themselves when
they feel these things. When that happens,
nationalities, as well as the many cultures,
employees are empowered to speak up with the
religions, races, sexualities, abilities, employees think we value diversity
and offer a work environment that’s diverse ideas, opinions and perspectives that spark
backgrounds and beliefs that make open to individual differences the innovation IHG needs. This is important to the
the world such an interesting place. guest experiences we create, and to how we
It makes for a diverse and inclusive

36%
empower employees to go above and beyond
culture we’re proud of. for our owners and for IHG, as we embark on
ambitious growth plans.
In 2018, we launched our Diversity & Inclusion
Board, which, led by CEO Keith Barr and Senior
Leaders from across IHG, is helping to shape
of the Executive Committee our priorities and go even further in this space.
and their direct reports globally Alongside our own plans, the Board worked with
are women Case study
Accenture as an independent external partner,
Pride in IHG to gain a different perspective on our business
To showcase our support for the LGBTQ community, and help us identify areas to improve.
in June we joined the global celebrations of Pride by
turning the IHG logo rainbow and sharing stories of
In 2019, we put local D&I councils in place, who
#IHGpride across our corporate channels, showcasing work with our talent teams to roll-out initiatives in
how we live our purpose of providing True Hospitality market. The councils represent the voice of regions
for everyone. Spearheaded by our Out & Open and specific markets, making sure we listen to
Employee Resource Group in Atlanta, US, we created employees and engage on local priorities and
a suite of materials that colleagues could use to action areas.
celebrate Pride locally.
In 2019, our Kimpton hotels launched an event series Promoting diversity
for the NGO, The Trevor Project called ‘Brunch Out To help increase the diversity of our leadership and
with Trevor’. The multi-city series hosted Drag shows talent, we’re focused on rolling-out programmes
during Pride weekends, with 100% of the ticket sales
that provide support to areas of the business that
and auction items supporting the organisation. More
need it the most. This includes Rise, our mentoring
than 500 attendees raised over $130,000 for The
Trevor Project. initiative for aspiring female General Managers. As
part of this commitment, in 2019, we extended our
For the past six years, IHG has been awarded
a Best Place to Work for LGBTQ Equality and
Rise mentoring programme to Europe, China, India,
Supporting Sustainable the Middle East and the Americas.
earned a perfect 100% score on the Human Rights
Development Goals:
Campaign Foundation’s Corporate Equality Index
(CEI) in the US.
 IHG |  Responsible Business Report 2019 25

Introduction Our culture Our hotels Our communities Our performance

Valuing diversity and Inclusion continued

We are committed to reviewing and updating our Strengthening a culture of inclusion IHG is a proud signatory to:
recruitment practices to ensure they are accessible Employee networks are voluntary, employee-led
to all. We have piloted changes such as the use groups that promote workplace diversity. These We’re proud to support Leonard
of diverse slates and interview panels, which we groups shine a light on the value of inclusion,
Cheshire and their Change 100
plan to scale globally in 2020. We have also added programme for talented
harness the energy and passion of our colleagues, students and graduates with
a ‘report this job’ button on our careers site to strengthen workplace culture and accelerate talent
enable users to report any jobs that are deemed The 30% Club, signalling IHG’s commitment to disabilities. Internships are
development. We worked hard in 2019 to expand ensuring 30% of our Senior Leaders are female. crucial for any graduate when
inappropriate, including those with gender the global footprint of our existing Employee We are currently exceeding this target. they’re starting out on their
bias, racial or age discrimination. Networks, together with establishing new ones. career, as it demonstrates that
We work with several charities and NGOs globally IHG currently has nine employee networks they have that real workplace
to employ and create a supportive environment for globally, including: experience. For us, it offers a
fresh perspective on how we do
colleagues with disabilities. The Holiday Inn Singapore
Lean In things, looking at how we can
Orchard City Centre has been recognised by the
improve as a business and
United Nations for its work to support colleagues Lean In’s mission is to empower women to achieve UN LGBTI Standards for Business, which focuses
recruit more employees
with disabilities. Approximately 12% of colleagues their ambitions. Lean In circles are small peer on tackling discrimination against lesbian, gay,
with a disability.
have a disability and the hotel invests in providing groups that meet regularly to learn and grow bi, trans and intersex people.
Jean-Charles Denis
training for managers to adjust to the different ways together. Members can also receive lasting career
Vice President Commercial
of communicating with persons with disabilities, development opportunities via a mentorship Europe, IHG
including giving more regular feedback, supervision programme.
and encouragement to colleagues with disabilities.
Out & Open
In the UK, Change 100 is a programme run by Women in Hospitality’s Diversity in Hospitality Recognition
Out & Open provides employees with a platform Travel and Leisure Charter, a 10 point action
charity Leonard Cheshire Disability, which creates
to participate in LGBTQ focused conversations plan that ensures diversity and inclusion not
three month paid work experience opportunities
and activities, and support their local LGBTQ only remain a priority but that we openly
with top employers for talented students and
community. Members are employees identifying track progress towards our goals.
graduates with disabilities. For the past three years,
as LGBTQ+ or allies supporting LGBTQ+ individuals.
we have worked with Change 100 to bring on
board 20 interns in our UK corporate offices. BERG
In 2019, we rolled out Conscious Inclusion training Black Employee Resource Group (BERG) is a
for our Senior Leaders, equipping them with the collection of professionals who support and The CEO Action for Diversity & Inclusion is the
knowledge and skills to build a more inclusive empower one another and advocate for the largest CEO-driven business commitment to
environment. Building on this success, we will take interests and development of black employees. advance diversity and inclusion within the
the training to corporate colleagues and managed workplace.
hotel General Managers in 2020. BBX
Baby Boomers & GenXers (BBX) is a network that
We are an organisation committed to fostering a
aims to provide members with resources to share
culture where everyone feels supported to be at
their wealth of experience and insight, leading to
their best and work smarter. In 2019 we started the The Valuable 500 is a global initiative that calls
opportunities for professional development.
roll-out of new global flexible working guidelines on 500 businesses to commit to placing disability
to all corporate colleagues, empowering them to inclusion on the leadership agenda and take
make decisions around how and when they work. action to promote disability inclusion.
 IHG |  Responsible Business Report 2019 26

Introduction Our culture Our hotels Our communities Our performance

Our hotels

Our hotels and

colleagues are
focused on bringing
great brands to life
for millions of guests
As well as creating the right
experience, we’re taking the right
steps to help our hotels to operate
sustainably and responsibly.

InterContinental Bali
 IHG |  Responsible Business Report 2019 27

Introduction Our culture Our hotels Our communities Our performance

Developing our hotel colleagues

Our colleagues are the ones who To enable our hotel colleagues to be at their best Across our Crowne Plaza, Holiday Inn, Staybridge
bring our brands and purpose of True and deliver great guest experiences, we provide Suites and Candlewood Suite brands, we
Hospitality for everyone to life, build the necessary tools, support and understanding introduced Brand Service Pathways in 2019,
relationships with guests and work with of all our brands to ensure that our colleagues a tailored learning approach to differentiate
and hotels can perform strongly. the service culture across individual brands.
hotel owners to drive performance.
Learning tools Fuse
IHG’s hotel colleague learning platform, We also have a global online learning platform
MyLearning, is available to all hotel colleagues in for all hotel General Managers (GMs) called Fuse.
multiple languages and across digital platforms. This brings our network of GMs together in an
It gives people the chance to track their personal online social community to share best practice,
learning journey, and allows managers to easily seek advice and complete professional
review progress. Through the online platform, development courses. GMs can also access a
colleagues can access IHG Frontline, bite-sized range of other resources from onboarding
online videos, activities and learning support curriculums and learning plans to specific,
materials, which educate them about IHG, our flexible online learning modules.
brands, ways of working, and how to enhance
performance that improves guest satisfaction.
We offer all our hotel colleagues True Hospitality
Service Skills training so that guests can expect
a consistently great experience delivered by
colleagues trained in True Attitude, True
Confidence, True Listening and True
Responsiveness.

Case study

Future Leaders
Each year, a new cohort of hospitality graduates
join our Future Leaders course. During a two-year
programme, we embed and develop exceptional talent
within IHG, working across our Operations, Finance
and Revenue Management functions. On completion
of the programme, the graduates take on managerial
Supporting Sustainable positions within the company.

414,000
Development Goals:

Courses completed by
colleagues on IHG Frontline
 IHG |  Responsible Business Report 2019 28

Introduction Our culture Our hotels Our communities Our performance

Carbon and energy

The global hotel industry accounts for We’re committed to reducing Given our scale and operations across more than Task Force on Climate-related
absolute scope 1, 2 and 3 100 countries, we believe the best approach to
more than 18 million hotel rooms across Financial Disclosures (TCFD)
greenhouse gas emissions from reducing and managing carbon emissions comes
the globe. With hotels operating 24 hours our owned, leased and managed Building on the work we have done to set our
a day, servicing the many needs of guests, from working hand-in-hand with all our hotels and
hotels by 15% by 2030* science-based targets, we have made a formal
third-party owners to change our own behaviours,
the energy consumption across the commitment to implement the recommendations
before considering to purchase carbon offsets.
industry represents around 1% of total We’re reducing scope 3 of the Task Force on Climate-related Financial
global greenhouse gas (GHG) emissions. greenhouse gas emissions from For the past six years, we have set and tracked Disclosures (TCFD) and in 2020 we will be
our franchised hotels by 46% against carbon reduction targets for our hotel developing a disclosure roadmap for the
per square metre by 2030*
estate. Our current 2018-2020 targets set out coming years.
*from a 2018 base year our ambition to further reduce our carbon per
occupied room by 6-7% and since 2018, we
reduced our footprint by 5.9% on a 2017 baseline.

Hotel carbon metric

During the year, a hotel carbon metric was included
for the first time, putting carbon reduction as one
of 10 key measures for our hotels. To help hotels
achieve their target, we provided training and
resources, sharing guidance and best practices in
achieving energy efficiency and carbon reduction.
Using the IHG Green Engage platform, (see page
31) hotels have constant visibility of progress and
suggestions of actions to take.
We are proud of the efforts our hotels have taken
to reduce their carbon emissions per occupied
room. However, whilst this is common practice to
follow an intensity target in our industry, as climate Case study
science continues to evolve we want to take
Six Senses Fiji
our ambitions further.
For Six Senses, being sustainable is not something

Supporting Sustainable
Science-based targets that it does; it is who they are. At Six Senses Fiji,
they have developed a number of sustainability
Development Goals: In 2019, we set 2030 science-based targets to programmes that include conserving energy and
reduce our greenhouse gas emissions. Looking at

5.9%
rainwater for the long term. They make their own
our ambitious long-term growth plans, including high-quality drinking water in a reverse osmosis
a pipeline of nearly 2,000 hotels, setting science- plant and refinery, grow organic produce and use
based targets is a stretch ambition, but one that wormbased septic tanks. The resort and residences
we recognise the importance of. We are committed are designed to use solar power and is home to one
to working very closely with our third-party hotel of the largest off-grid solar installations using Tesla
battery packs in the Southern Hemisphere. Energy
owners so that we can collaborate to grow
reduction in carbon footprint per from the sun is used to power the resort and any
sustainably, transitioning to a low carbon industry.
occupied room from 2018-2019 excess power is used for the desalination plant.
on a 2017 baseline
 IHG |  Responsible Business Report 2019 29

Introduction Our culture Our hotels Our communities Our performance

Water

Water stress impacts over 40% of the Water stewardship

global population and is anticipated to To truly have an impact on water it is imperative
rise further, according to the UN. More to understand what is happening at catchment
than 1.7 billion of the world’s population level, taking a very localised approach to water
currently live in river basins, where water stewardship. This is reflected in our 2018-2020
use exceeds its recharge, and the problem targets, with a focus on delivering six water
will get worse as the population grows. stewardship projects.
To ensure the approach we are taking is robust,
Building on our 2016 comprehensive water we became members of the Alliance for Water
risk assessment, in 2019, we refreshed our Stewardship (AWS) and aligned our methodology to
risk mapping, encompassing our entire their certification programme. During 2019, we worked
global estate of open and pipeline hotels, with AWS on the ground in India, China and Indonesia,
to ensure we are continuing to identify to undertake comprehensive water catchment
areas that are facing, or at risk of facing assessments, helping us to identify interventions that

3.6%
can improve water quality and availability.
water scarcity.
We completed a project in Okhla, a suburb of audits, solutions have been implemented at the
Delhi, which faces several challenges including an InterContinental Beijing – Beichen that have already
insufficient water supply, improper sewage systems seen a reduction of water use per occupied room
and poor sanitation facilities. In the community, by 7%. Building on this work, a local stakeholder
there had been low levels of education and committee has been created to identify innovations
awareness of water sanitation, as well as a lack of that can be rolled out across hotels in Beijing reduction in water use per
local infrastructure. In partnership with the Center and more widely across Greater China. occupied room in water-stressed
for International Projects Trust (CIPT), a local NGO, areas since 2017
our hotels hosted 12 workshops with more than UN CEO Water Mandate
400 people from across the community to learn Building on the work done in 2019 to evaluate
more about water, sanitation and hygiene (WASH) our approach to responsible business and current
programmes. Through the project, collectively water stewardship projects, our CEO, Keith Barr
our hotels have reduced their water consumption has signed a commitment of membership to the
by 12%. A local community stakeholder group has UN Global Compact, CEO Water Mandate. This
been created and innovations have been identified represents a pledge to six core commitments that
Supporting Sustainable that can be worked on collaboratively. To further mobilises business leaders on water, sanitation,
Development Goals: our efforts in India, we are proud to be partnering and the UN Sustainable Development Goals.
with WaterAid to bring more WASH programmes
to communities across the country. New projects
China’s capital, Beijing, is another city that faces We recognise how important collaboration,
severe water stress. In 2019 we partnered with education and awareness are to achieving our own
AWS and 11 hotels across the city to hold training sustainability goals as a business. We will continue
and workshops with colleagues to help them share to partner with AWS to use our findings from
their challenges and potential solutions to reduce Delhi, Beijing and Indonesia to work with local
their water usage. Through the session and on-site communities and implement important
interventions across these locations and beyond.
 IHG |  Responsible Business Report 2019 30

Introduction Our culture Our hotels Our communities Our performance

Waste

200m
Every day in our hotels around the world, Bulk bathroom amenities Furniture
millions of items are used, from food and In July 2019, building on our 2018 pledge to remove Our Renovation Donation Initiative has grown
plastics to linens and soaps. We see a real plastic straws from our hotels, we announced our steadily in its second year. In collaboration with
opportunity to help our guests have a more intention to remove single use miniature bathroom the IHG Owners Association and charity partner IHG is significantly reducing the
sustainable stay by reducing levels of waste amenities from our entire estate, across all brands. Good360, the partnership sees IHG-branded 200 million bathroom miniatures
in our properties. We currently use an average of 200 million of these hotels undergoing renovations or property used in hotels annually.
tiny toiletries every year, and by switching to bulk-size improvements in the US and Canada donate
The global nature of our business means that products during 2021, we will significantly reduce our furniture, fixings and equipment to community
tackling waste is not easy, but it’s something plastic waste. IHG was the first global hotel group organisations. Nearly 30 hotels have donated more
to make this commitment and we are delighted to than $325,000 of goods to 14 different community
we have worked hard to address in 2019.
have seen a number of industry peers follow suit. organisations, helping to furnish veterans’ housing
Working with representatives across the units, women’s support centres and youth facilities,
business we have mapped out the areas Reduce, reuse, recycle among other causes.
of waste to prioritise, considering Our spirit of collaboration sees many hotels
environmental impact, operational working with specialist organisations that are Linens
requirements and guest experience. taking an innovative approach to waste reduction, Through our partnership with a local social
focusing on soap, furniture, food and linen. enterprise, HuiLing and eight InterContinental
Hotels across China, we have recycled more than
Food waste 1.1 tonnes of hotel linens, upcycling them into new
In Australia, we’ve partnered with the charity products including shopping bags, aprons and
OzHarvest to enable our hotels to divert food waste hand towels. Through the programme, the
going to landfill by donating it to local communities products are made by 90 people from local
across Australia. We are also working with Winnow communities in and around our hotels who
Solutions (see page 31) to use technology to track, have learning disabilities, providing training
measure and reduce food waste at some of our and education and a stepping stone
hotels in the Middle East. to start their careers.

Soap recycling Plastic bottles

Several of our hotels are choosing to partner As we continue to focus on plastic waste, some of
with not-for-profit organisations to recycle soap our hotels in Europe have been trialling alternatives
and guest room amenities, so that they can be to plastic water bottles and we hope to work with
distributed to communities in the developing world suppliers to find alternatives for all our markets to
and help reduce the risk of disease. Working with individual, non-recyclable plastic water bottles.
Clean the World in the Americas, Soap for Hope in
Asia and SoapAid in Australia. Participating hotels
Supporting Sustainable have recycled soap, helping to produce 255,000
Development Goals: soap bars for people in some of the world’s most
impoverished communities.
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Introduction Our culture Our hotels Our communities Our performance

Technology and innovation

Approximately 83% of our 5,903 hotels IHG Green Engage Our partnership with Winnow Solutions has seen
are franchised and that means we’re in Ellen MacArthur Our online sustainability platform, the IHG Green us implement their AI technology in 24 properties
constant dialogue with our hotel owners CE 100 Network Engage system, helps our hotels measure, report across the Middle East to test and learn the
who operate and own these properties We also want to look for ways to and manage their use of energy, carbon, water potential food reduction savings that can be
reduce, reuse or divert waste that achieved through better visibility of food waste.
to influence and drive innovations. and waste, minimising their overall utility costs
is generated in our hotels and look Our hotels have been able to better forecast, plan
for collaboration opportunities to
and environmental impact.
and replenish buffets to deliver cost savings and
We consider each stage of the hotel achieve this. In 2019, we were the We make it a global standard for all hotels to utilise a reduced environmental footprint.
lifecycle to find more sustainable first hospitality business to join the the platform and we recognise their progress
solutions that can be amplified and Ellen MacArthur CE 100 Network,
through four levels of certification. The tool provides In Europe, we have also seen our hotels start to
rolled out at scale. Technology plays an which will help IHG connect with
more than 200 Green Solutions – sustainable and use Too Good To Go, a unique app that connects
other businesses and find circular its customers with left over food to purchase for
important role, enabling us to collaborate solutions to our waste efficient actions that hotels can implement to
reduce their environmental footprint. a small cost. This is a great solution for hotels,
with our hotel teams and find new reduction efforts.
incentivising food waste diversion
solutions that can achieve a more Keeping the disturbance of animals, plants and through monetisation.
circular approach to waste management. their natural habitats to a minimum is important
to us. Through the tool, we have a set of In 2020, we will be rolling out Winnow and Too
recommendations aimed at preserving and Good to Go to more markets and more hotels,
protecting on-site local flora and fauna and the building a community of properties using
wider regional ecosystems affected by our technology to reduce their food waste and
operations. This includes advice on management sharing best practices and learnings.
of green spaces and long-term strategies for
protecting local habitats.
To ensure the quality of participation in the IHG
Green Engage system, hotels that reach any level
of certification undergo a third-party assurance
process, administered by Deloitte. In addition, our
Supporting Sustainable environmental performance data is independently
Development Goals: verified through Lloyd’s Register Quality Assurance
(LRQA), in accordance with ISO 14064 – 3:2006.

Innovations
Within our voco brand, many hotels have been
sourcing their duvets and pillows with filling
that is made from recycled plastic water bottles.
To date over a million water bottles have been
diverted and put into our bedding.
Across 32 of our hotels in Europe, we have
furnished guest areas with a carpet using a yarn
made from recycled plastic bottles and fishing nets.
 IHG |  Responsible Business Report 2019 32

Introduction Our culture Our hotels Our communities Our performance

Our communities

We are proud that

our hotels are very
much at the heart
of communities
around the world
We want to ensure our purpose
of providing True Hospitality
for everyone is felt beyond
the everyday operations
of our business.

Student from Atlanta, Georgia, US taking part in our IHG First

Looks Days in partnership with Junior Achievement Worldwide.
 IHG |  Responsible Business Report 2019 33

Introduction Our culture Our hotels Our communities Our performance

Our True Hospitality for Good programme

Our communities
Our commitment to help and care Our three focus areas
Colleague
for people comes naturally impact
to a business
Across the globe our colleagues are passionate about Launched in 2018, our True Hospitality for Good
which stands for providing Truecommunity
many local Hospitality projects, charities and NGOs,
Our hotels are at the heart of programme uses the power of our scale and global
thousands of communities and
for everyone. We are proud
and weto bethem
give at thea say in how we support causes all reach to shape a positive future for generations
play an active role in giving back.
heart of local communities and
around the recognise
world.
True Hospitality for Good
to come.
the opportunity we have to make a real delivers a framework for
Charitable partnerships
difference to others. community support, not just for
Giving for Good month IHG but for each and every one We use our scale and the skills we have as a
Community “I am incredibly inspired
impact
September 2018 saw our first Giving for
of our hotels. Working together, business to form strategic charitable partnerships
Good month in support of True Hospitality by the thousands of
for Good. IHG colleagues were invited to we’re ensuring we deliver that can help to make a difference in the communities
make a positive contribution to others colleagues that came
2018-2020 targets through volunteering, doing their bit for the together to join in our first
employability programmes where we operate. These partnerships help us to
environment, or doing something extra to through hospitality skills deliver action on hospitality skills building, disaster
$3m take care of their health and well-being. Giving for Good month.
A passion to help and care building and supporting
Contributed to community impact From the food kitchens of Atlanta and the relief and environmental sustainability.
projects around the world from beaches of the UAE, to the Swiss mountains for others is at the heart of in times of need.
2018-2020. and rivers of China, nearly 130,000 IHG
colleagues took part in Giving for Good all we do and central to our Catherine Dolton Volunteering
$1.2m contributed to community
impact projects in 2018.
month. For every colleague that got purpose of True Hospitality Vice-President, Global Corporate
involved, IHG contributed funds to one of
for everyone. I am proud of In 2019, as part of new volunteering guidelines,
Responsibility, IHG
100,000
our 11 charity partners on their behalf,
donating a total of $400,000 over the
course of the month. IHG’s list of charity
the dedication everyone we have given corporate employees two days in
Colleagues involved in IHG’s global
community impact activities each year partners was specially curated to support has shown for the worthy addition to their annual leave to take time out from
causes that tie closely to our business, causes we supported
from 2018-2020.
including building skills and education in the work to support causes that matter most to them.
139,942 colleagues involved in hospitality industry and providing aid when around the world.”
community impact activities in 2018. disasters strike. Keith Barr
As well as providing support for worthy causes,
For further progress in detail against
all of our 2018-2020 targets, please Volunteering
Chief Executive Officer, IHG volunteering can play an important role in talent
see our Performance pages: 33 to 36. During Giving for Good month alone, our
colleagues volunteered more than 125,000
attraction, development and retention, building
True Hospitality for Good hours of their time to support worthy causes. strong teams and a range of other transferable skills.
In 2018, IHG transitioned its support from We recognise that volunteering plays an
the IHG Foundation to a newly created important role in developing and retaining
communities and charitable giving talent, building strong teams and a range of
other transferable skills.
Giving for Good month
programme, True Hospitality for Good.
Building on the work done with the IHG Every year we dedicate September to doing good

Our communities
Foundation, this programme provides
colleagues in our hotels and offices with a for others, with colleagues volunteering, taking care
greater say in how we support important
causes around the world. Together, our aim of the environment, or taking part in health, fitness
is to work with IHG charity partners to help
change lives for the better through building and well-being activities. Every colleague who takes
skills and education in hospitality, and
supporting communities when disasters
part is able to choose from one of four global
strike. causes they would like IHG to donate to on their
In China, we partner with the China
Soong Ching Ling Foundation to support our
behalf through our existing charity partnerships.
communities through the True Hospitality
for Good Fund.
Working with charity and NGO partners to make positive local change, on a global scale.

Get involved!
truehospitalityforgood.com

IHG | Responsible Business Report 2018 31

 IHG |  Responsible Business Report 2019 34

Introduction Our culture Our hotels Our communities Our performance

Skills and education

With one in 10 jobs on our planet being IHG Academy Youth Career Initiative (YCI)
in the travel and tourism industry, we’re The IHG Academy provides opportunities for local We want to help empower community organisations
passionate about the opportunities it people from all walks of life to build their knowledge on the ground to build hospitality skills. To enable During my internship I got a lot
of responsibilities, learned to
can offer. We want to open doors for and skills, improve their employability and start this, we have provided an IHG Foundation legacy
work hard and I learned to
everyone, with opportunities to build a career in our industry. grant to YCI, run by the International Tourism
motivate the room attendants.
hospitality skills and education that Partnership (ITP), to create an open source,
As we continue to open new hotels, we have a Because of this great
can change lives for the better. bespoke hospitality curriculum that can be used opportunity, I have changed
pressing business need to identify and develop by any community group around the world. as a person and I can say that
talented people who will staff and manage them.
this internship will bring me
We do this through: school outreach By working with local communities and in further in the future!
programmes that offer hotel work partnership with others, we help develop skilled,
Merle Getkate
experience opportunities; a bespoke motivated and engaged colleagues who are
IHG Academy participant,
hospitality curriculum that educates committed to providing the consistently great Hotel Management School
young people furthest from employment; experience that our guests expect. Maastricht
and IHG donations to employability- Within a global framework, each IHG Academy is
focused charities around the world. unique, ensuring that the programme meets the
needs of the local community it serves. All IHG
Academy programmes operate together with local
community organisations and education providers
to offer participants real experience of working in
a hotel or one of our corporate offices. In 2019, Case study
15,081 people benefited from the programme
Bottomless Closet
in 80 countries worldwide.
Through a partnership with the InterContinental New
York Barclay hotel and a local NGO, Bottomless Closet,
Charitable partnerships
we are funding a programme to support more than
During 2019, we continued to build partnerships 200 disadvantaged women across the New York area
with community organisations focused on helping to enrol on a hospitality skills programme involving
build employability skills and showcasing the training days, interview guides and workshops.
potential of a career in hospitality. Programme participant Sherese told us about the
support she has had: “It was the hotel’s chef who
Junior Achievement encouraged me to get a food handler’s license and be
Across nine markets, IHG hotels have teamed an apprentice at the bakery. I didn’t know I could do
up with our charity partner Junior Achievement that because baking for me was just a simple hobby.
to open their doors for ‘IHG First Look’ work I’m so glad I got it and that someone told me I don’t

15,081
have to rely on just one career path – I have choices
experience days. At these events, students get
now. It’s very motivational, speaking with someone
Supporting Sustainable to learn more about the industry, meet colleagues
and hearing them say “No, you can do it.”
Development Goals: working in our hotels and take time to think about
their future career aspirations. Nearly 200 students
are already participating in the programme, with
overwhelmingly positive feedback underlining
the importance of providing first hand experiences people benefited from
in the world of work for young people. the IHG Academy
 IHG |  Responsible Business Report 2019 35

Introduction Our culture Our hotels Our communities Our performance

Disaster relief

At the very heart of IHG is a passion to Working with some incredible charity partners, Case study
help and care for others. We touch the we ensure that during natural disasters, support
and funds are available to help our hotels and
Assam, India
lives of millions of people every year The financial support provided
communities prepare and deliver emergency The state of Assam in north-eastern India was engulfed by IHG allowed our team to
and are passionate about protecting by heavy floods in July 2019, affecting an estimated
response when needed. provide affected households
colleagues and guests in times of need. 5.3 million people, many of whom already live in poverty. with vital intermediary support
These charity partners include the British Red Vulnerable households across 30 districts were and help recover in the absence
Cross, American Red Cross, Canadian Red Cross, displaced and forced to seek temporary shelter. of a regular income. Without this
Care International UK and China Soong Ling IHG were quick to respond with life-saving financial cash assistance, these families
Foundation, who together support millions support. This funding helped CARE International UK would have been subjected to
of people across the world suffering from the coordinate an emergency response and provide reducing their regular food
aftermath of disasters, and are constantly preparing essential disaster relief alongside local NGO partner, intake to be able to meet other
Morigaon Mahila Mehfil (MMM). The initiative included urgent, emergency needs.
in case another occurs. These are charities that
supporting 255 families who were identified as Wasi Md Alam
continue to help people and communities, whether
displaced and vulnerable with unconditional Acting Head, Disaster
that is saving lives or helping people get back cash assistance. Management Unit,
on their feet.
CARE India
As members of the British Red Cross Disaster Relief
alliance, we help enable swift response to disasters
where it is needed most and drive education
and innovation in responding.

Supporting colleagues
Unfortunately, as a global business, our colleagues
are sometimes impacted by natural disasters too.
To help them, we operate a colleague assistance
fund that can provide emergency money to help
them in the critical few days following a disaster.

25,000
people supported following natural disaster
 IHG |  Responsible Business Report 2019 36

Introduction Our culture Our hotels Our communities Our performance

Giving for Good month

It’s in our nature as a business to care for

others. That’s what our True Hospitality
for Good programme is all about. With
A record breaking year
In 2019, we were proud to see 160,000
colleagues get involved in Giving for Good
188,000
hours volunteered
over 400,000 colleagues all over the month, up from 130,000 the year before.

160,000
world, we recognise the opportunity to
As well as the impact their efforts made
use our global scale to make a difference directly, every colleague who participated
to others and shape a positive future chose from one of four important causes
for generations to come. (waste reduction, water and sanitation, colleagues came together
to do good deeds
hospitality skills building and disaster relief)

88
In September, we encourage all and IHG made a donation to our charitable
of our colleagues to get involved in partners working on that cause in recognition
our Giving for Good month. This is an of their efforts.
opportunity for them to give back and In support of the month, colleagues across countries across the world
make a positive difference to their local the Americas teamed up for a virtual volunteer

$400,000
community through volunteering, activity with the American Red Cross called
going green or taking part in an activity Missing Maps. Helping to map the most
focused on health and well-being. vulnerable places across the globe, the
volunteering activity enables international donated to our charity partners
and local NGOs to better respond to crises in
these areas. In the Hinthada area of Myanmar,
colleagues identified 409 buildings and made
2,449 changes to the map to better track
where people live in relation to potential
hazards and natural disasters.
In Thailand, 200 colleagues at the the Holiday
Supporting the Sustainable Inn Phuket Resort participated in a major
Development Goals: beach clean-up activity, collecting waste along
the beach, keeping the local landscape clean
and contributing towards our going green
initiative as part of giving for good month.
 IHG |  Responsible Business Report 2019 37

Introduction Our culture Our hotels Our communities Our performance

Our performance

We measure our progress

through our 2018 – 2020 Target Progress in 2019 What’s next?

6-7%
responsible business ——Over a two year period, we have ——Continue to reduce our carbon
targets, in the areas of in reduced our carbon footprint by footprint across our entire estate.
the areas of environmental Environmental 5.9% per occupied room, including ——Partner with owners and our hotels
sustainability; community sustainability Reduce carbon footprint a 3.7% reduction in 2019, from to share best practices to help
impact; our people; and per occupied room a 2017 baseline. drive greater reductions.
responsible procurement. ——Work to meet the requirements
of Task Force on Climate-related
Financial Disclosures (TCFD).

6 projects
——We launched a project in Beijing ——We will continue to partner with
in partnership with the Alliance for AWS to use our findings from
Water Stewardship (AWS) and the Delhi, Beijing and Bali with local
Launch two water stewardship projects InterContinental Beijing- Beichen, communities and implement
each year. In 2019, we launched water to hold training and workshops with important interventions across
stewardship projects in Beijing and Bali
11 hotels to share challenges and these locations and beyond.
solutions to reduce their water ——Launch Water Stewardship
usage. Solutions implemented at Projects in Mexico and
the InterContinental Beijing- Beichen Saudi Arabia.
have driven a water reduction of 7%
per occupied room.
——We are working with AWS in Bali and
have completed a water stewardship
assessment at the Hotel Indigo
Seminyak Beach to help identify
potential interventions and actions.

Not started
Below target
On track to achieve
 IHG |  Responsible Business Report 2019 38

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Target Progress in 2019 What’s next?

30,000–40,000 ——In 2019, 15,081 people benefited

from the IHG Academy across
——Build on the IHG Academy
programme offering through
Community impact Individuals provided with hospitality 1,573 programmes in 80 countries. launching the Internship Pathway
skills training through IHG Academy
——Since 2018, 28,181 people have in 16 hotel-ready languages.
benefited from the IHG Academy. ——Continue to drive quality growth in
the programme through enabling
our regional teams to measure
impact through a robust reporting
solution and convert IHG Academy
hires into employees for 2021
and beyond.

$3m
——In 2019, we contributed $1.3m ——Work with our charitable partners
community impact projects around to deliver hospitality skills building
the world taking our total to $2.5m. and disaster relief assistance.
Contributed to community
impact project

100,000
——In 2019, 160,313 colleagues took ——Identify ways to enhance our
part in community impact activities. programme and encourage
even more participants for our
Colleagues involved in Giving for Good month and
IHG’s community impact corporate volunteering.

Not started
Below target
On track to achieve
 IHG |  Responsible Business Report 2019 39

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Target Progress in 2019 What’s next?

Increase diversity ——In 2019, female reprsentation in

our Senior Leadership was at 36%
——Will launch Conscious Inclusion
training to all corporate colleagues
Our people Increase diversity in terms of gender vs 2017 baseline of 37%. and managed hotel General
and nationality or ethnicity of IHG
Senior Leaders ——Our Executive Committee female Managers, equipping them with
membership increased from 22% the knowledge and skills to build
to 30% with the appointment of a more inclusive environment.
Nicolette Henfrey as Executive ——Further support the development
Vice President, General Counsel of employee networks, providing
& Company Secretary. communities of colleagues with
——Lead Supporter and active member a platform to build inclusive
of Women in Hospitality, Travel & relationships and further
Leisure (WIHTL). Four IHG Senior professional development.
Leaders were profiled in the WIHTL
Women to Watch Index 2019.
——In January, 2020, we became
signatories to The Valuable 500
and CEO Action for Diversity
& Inclusion.
——Rolled out Conscious Inclusion
training to IHG’s Senior Leaders.

Not started
Below target
On track to achieve
 IHG |  Responsible Business Report 2019 40

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Target Progress in 2019 What’s next?

Increase female ——Increased the percentage of females

in GM and Operations roles from
——Continue to scale our Rise
mentoring programme,
Our people continued
representation 24% to 26%.
——Rise, our female mentoring initiative
increasing the number of
participants benefitting
Increase number of females working in from involvement each year.
General Manager and Operations roles for aspiring female General
in managed hotels Managers was launched in all
key markets, with close to
100 participants.
——Launched D&I councils in local
markets to represent the voice of
colleagues in regions.
——Report this job button added on
careers site to report any jobs that
are deemed inappropriate, including
those with gender bias.

Employee ——We measure employee engagement

through our bi-annual survey,
——Improve our talent acquisition
systems and services to position
engagement Colleague HeartBeat, and corporate,
managed hotel and customer
IHG as a leading employer and
deliver a great hiring experience
Track and report employee reservations office employees are for candidates.
engagement each year
invited to take part. The overall score ——Continue to drive a high-
was 87%; 11% above Kincentric’s top performance culture across
quartile benchmark. IHG through embedding
performance and reward practices.
——Further drive the adoption
of improvement to our human
resources systems, to further
our ability to attract, develop
and retain talent.

Not started
Below target
On track to achieve
 IHG |  Responsible Business Report 2019 41

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Target Progress in 2019 What’s next?

Increase ——A self-assessment programme

has been rolled out to all IHG
——We will continue to partner with our
suppliers, managing supply chain
Responsible
procurement
supplier audits Marketplace suppliers. risks related to sustainability issues
and also expand the scope beyond
Increase the percentage of supplier ——We have been reviewing suppliers’
risk profiles and supplier audits for responses to our enquiries about this group by entering into the next
IHG preferred suppliers their governance, human rights phase of our programme.
and environmental practices and
requesting corrective actions to
put in place where there has been
a deviation from our expectations.

Increase ——We launched a mandatory

programme for all employees.
——In 2020, we will continue
our colleague engagement
ethical supplier The virtual training and resources programme and provide more

awareness cover specific elements of risks

and opportunities that are important
in-depth education on responsible
procurement.
Roll out new training for corporate for employees to be aware of.
colleagues and hotels

IHG green criteria ——We introduced the IHG Green

Supplier scorecard, which helps
——We will further enhance the
Green Supplier scorecard with
Increase the percentage of suppliers us understand the environmental an increased focus on circular
that meet IHG green criteria credentials of prospective IHG economy.
suppliers going through our
RFP process.
——45% of new contracts through our
tendering processes, were awarded
to an IHG Green Supplier.

Not started
Below target
On track to achieve
 IHG |  Responsible Business Report 2019 42

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Environmental performance data

Carbon Footprint Water

Carbon footprint per IHG’s water use in water-stressed
occupied room (kgCO2e) and non-water-stressed regions
Water-stressed 46%
across the estate (%)
Non-water-stressed 54%
2015** 30.84

2016** 29.36

2017* 28.37

2018* 27.71
Water-stressed 46%
2019 26.70
Non-water-stressed 54%

IHG’s total carbon footprint (tCO2) 2019 Energy Consumption IHG’s water use per occupied IHG’s total water consumption
(Total MHh) room across the global estate (%) across the global estate (m3)

Scope 1 Scope 2

2015** 438,943 2015** 1,896,344 2015** 0.60 2015** 97,241,307

Fuel 6,109,751
2016** 426,870 2016** 1,914,276 Electricity
2016 ** 7,738,090
0.62 2016** 105,666,389
Heat 246,824
2017* 479,280 2017* 1,863,266 Steam
2017 * 235,339
0.59 2017* 106,014,071
Cooling 219,605
2018* 508,617 2018* 1,949,694 2018* 0.59 2018* 110,577,509

2019 529,093 2019 2,008,037 2019 0.58 2019 114,828,334

Scope 3 Fuel 6,109,751

Electricity 7,738,090
2015** 2,689,708 Heat 246,824
Steam 235,339
2016** 2,708,920 Cooling 219,605

2017* 2,729,418

2018* 2,734,980

2019 2,758,518 * As IHG’s System size is continually changing and the number of hotels reporting data to
the IHG Green Engage™ system increases annually, we have restated data.

** Data not restated as baseline has been set at 2017 for our 2018-2020 target
 IHG |  Responsible Business Report 2019 43

Introduction Our culture Our hotels Our communities Our performance

Our performance continued

Environmental performance data Social performance data

Waste IHG Academy Gender profile of employees

IHG’s waste per occupied rooms (kgs) Individuals provided with hospitality skillls training As at 31 December 2019 Male Female Total
through the IHG Academy
Total general waste Total food waste
Directors 7 4 11
2017* 2.50 2017* 0.77 2015 9,287 Executive Committee 7 3 10

2018* 2.56 2018* 0.72 2016 11,985 Executive Committee

direct reports 40 23 63
2019 2.47 2019 0.70 2017 13,633
Senior managers
2018 13,531
Total recycling Total composting (including directors
2019 15,081 of subsidiaries) 102 34 136
2017* 0.47 2017* 0.04
All employees
2018* 0.49 2018* 0.06 Total funds donated to Colleagues supporting (whose costs were
community impact projects ($m) communty impact projects
borne by the Group
2019 0.56 2019 0.07 or the System Fund) 6,498 7,938 14,436
2018 1.2 2018 139,942

Total waste
2019 1.3 2019 160,313

2017* 3.77

2018* 3.83

2019 3.80

* As IHG’s System size is continually changing and the number of hotels reporting data
to the IHG Green Engage™ system increases annually, we have restated data.
InterContinental Hotels Group PLC
Broadwater Park, Denham
Buckinghamshire UB9 5HR
United Kingdom
Tel +44 (0) 1895 512 000
Web www.ihgplc.com
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