Holiday Inn 2009 Annual Report Download - page 29

Business review 27
Through Green Engage, our online sustainability tool, we are
working to deliver real emissions cuts through new and better ways
to design, build and run our hotels. Launched in March 2009, Green
Engage enables us to track and report on our key environmental
impacts. It also allows our hotels to identify the most appropriate
solutions to their local environmental risks. The system is helping
us work towards our strategic aim of making a night with IHG more
carbon efficient.
Analysis of a representative sample of our portfolio of managed
and owned hotels demonstrated up to a 10% reduction in energy
consumption in 2009.
Green Engage is being rolled out progressively across our entire
hotel estate and currently has over 900 hotels using the system.
In addition to making it more intuitive, we are supporting the
system with a new training package for our staff and hotel owners
called ‘Green Engage – the fundamentals’. In 2009, 300 people took
the course and we plan to roll it out further in the coming year.
Regulation and legislation
IHG is exposed to increasing legal environmental measures,
particularly on regulation of greenhouse gas emissions and
other resources.
In 2010, our UK operations will have to comply with a new carbon
trading scheme, the Carbon Reduction Commitment. This will
compel companies to monitor energy use and purchase carbon
allowances corresponding to CO2emissions.
To address these and other complex regulatory requirements, we
have set up a Carbon Strategy Team. We review our carbon strategy
regularly with the CR Committee and have discussed this issue
with our independent owners’ group, the IAHI, to ensure our
franchise business partners are fully engaged.
Responsible tourism means creating opportunities
for local people
Travel and tourism generates more than 9% of global GDP
(Source: World Travel and Tourism Council). However, sometimes
as little as 10% of the money spent on holiday remains in the
destination economy (Source: International Tourism Partnership).
We are currently reviewing our community activities so that IHG
can have an even greater positive impact on the communities
in which we operate. Our revised Community Strategy will be
launched in 2010.
Given the economic downturn, our focus this year has been on
maximising the benefits we bring to local economies via direct and
indirect employment, taxes paid, local purchasing and donations
to community projects.
Green Engage recommends that hotels take actions such as
forming partnerships with local businesses, employing local
people, and supporting local community projects. It also surveys
their grass-roots activities, such as in-kind donations, grants
and volunteering programmes.
Developing countries are often unable to benefit from tourism
opportunities because they lack a skilled workforce. We train
potential employees in our communities and work with local
and regional Chambers of Commerce and trade and industry
associations to support workforce development. In China, we
launched the IHG Academy, working with renowned educational
institutes in the region. The IHG Academy provides hospitality
training for local people and subsequently offers them employment
within our growing portfolio of hotels. We now have 25 Academies
in 11 locations, with 5,000 students enrolled.
Awards
Our activities won several awards this year, including:
• 2009 Hotel Visionary Award from Hospitality Technology
magazine for Green Engage;
• Worldwide Hospitality Awards for Best Initiative in
Sustainable Development 2009 – for Green Engage
and the Innovation Hotel;
• The National Business Travel Association recognised our
commitment to supporting societal needs and reducing
our environmental impact at its first annual Corporate Social
Responsibility Awards this year; and
• our sound corporate governance was recognised in a survey
of the top 100 companies listed on the London Stock
Exchange, conducted by consultancy firm Resources Global
Professionals – IHG was ranked third. This included high
ratings for our compliance, capacity and commitment to
excellence in corporate governance across a range of areas,
including community, environment and people issues.
Policies and Code of Ethics
Amongst the Group’s core values is the concept that all employees
should have the courage and conviction to do what is right.
We have detailed policies on the environment, human rights
and the community and we have a global Code of Ethics and
Business Conduct.
The Code of Ethics and Business Conduct consolidates and
clarifies expected standards of behaviour and communicates the
ethical values of the Group. It states clearly that IHG’s reputation
is built upon the trust and confidence of our stakeholders and
is fundamental to our operations worldwide. A Confidential
Disclosure Channel also provides employees with a means to
report any ethical concerns they may have. The Code is applicable
to all employees and is available on the Company’s website at
www.ihgplc.com/investors under corporate governance.
BUSINESS REVIEW