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2007Sustainability Report

Intercontinental Hotels Group

1401 Pennsylvania Avenue N.W. Washington, D.C. 20004 | Phone : (202) 628 9100

Willard InterContinental,The Next 100 Years

We choose to Believe

We choose to Care

We choose to Act

We choose to Believe

We choose to Care

We choose to Act

Our commitment to Sustainable Development:The Willard InterContinental Hotel will further distinguish itself as the

premier hotel in Washington DC by making sustainabilitya part of the Willard experience.

Guests, employees, shareholders, our local community and our environment will all benefit from our strategy which considers the social,

environmental and economic impacts of all we do.

Our commitment to the Willard legacy:The Willard InterContinental hotel has an obligation to live up to its historic

legacy and enter the 21st century a leader in hospitality. It must further sustain a much larger responsibility as a leader in sustainable hospitality.

Our daily business must reflect the Triple Bottom Line, or the "3 P's".

Our commitment to our word:Simply put, it is the results that matter.




Sustainable Development (SD) is not an opportunity but a responsibility. At the Willard InterContinental this statement has been so well understood that our SD plan is branded Willard InterContinental, the next 100 years. We are only at the beginning of our long Sustainable Development journey which started in May 2005.

The Willard enjoys an incredible legacy which is summarized in its vision as America's Hotel due to its location between the two most powerful political institutions of the world - the White House and the US Congress - and its history. Abraham Lincoln stayed there as President elect in March 1861; Ulysses Grant popularized the term lobbyist in the lobby of the Willard in the 1870's; Calvin Coolidge received the oath of office and ran the country from the Willard for three weeks in August 1923; Martin Luther King Jr finished his famous speech ‘’I have a Dream’’ at the Willard before delivering it on the steps of the Lincoln Memorial in August 1963; among many other monumental events vital to the rich history of the United States.However, we cannot just look in our rear view mirror. We feel that we have an obligation to our industry and our world to show the way through Sustainable Hospitality by ensuring that the legacy of our property remains strong in the years to come.We were encouraged in that direction by our management company's (IHG- InterContinental Hotels Group) commitment to Corporate Responsibility and are totally supporting its core purpose of Great Hotels Guests Love and by the support of the ownership company, The Willard Associates which we thank here.

Our aim is to prove that One can make a difference and there is no other ambition than to encourage all our peers to join in ensuring that the hotel industry meets its responsibility to make the world a better place for future generations. The hotel industry is wonderful, with a bright financial future, but hoteliers should never forget that they have a strong impact on the environment –creation of waste and energy consumption- and that properties benefit from their local communities thus their responsibility toward helping them in return.This is why the Triple Bottom Line of Economic Prosperity, Social Responsibility and Environmental Protection is totally embedded in the Willard InterContinental's strategy.

Our efforts would not have come to fruition without the engagement of our colleagues at the hotel and they should be congratulated for their commitment to going beyond their usual responsibilities with great enthusiasm.We wish to thank Envirelation for their work in establishing this first Sustainability report.

Letter from Herve HoudréLetter from Hervé Houdré

Hervé HoudréGeneral Manager

Willard InterContinental


We at EnviRelation are proud to release our first hotel-specific sustainability report. The Willard InterContinental Hotel's Sustainability Report represents the culmination of years of thought, insight and application at the Willard InterContinental, of which we are proud to be a part. It also marks the first exhibition of EnviRelation's thoughts on hotel sustainability tracking and reporting, built upon our Emissions Reporting platform.

The Willard's efforts are noteworthy for the hospitality industry for a number of reasons. To begin, it is more common to see properties in natural destinations that have such deep sustainability commitment, rather than luxury urban hotels. The second most noteworthy differentiator is the Willard's holistic interpretation and strategy – not just program – for sustainability. The strategy for pursuing sustainability at the Willard is designed in a way that will perpetuate the commitment long after its designers have left. Sustainability will truly be part of what the Willard is.

Our goal for this report is to set a clear standard for sustainability reporting for the hospitality industry, including calculation methodologies. EnviRelation understands that the complex relationships between hotel owners, managers, tenants and brands create a convoluted delineation of responsibility for sustainability impacts. We also recognize that the industry can influence and mitigate the impacts of its suppliers, though it cannot be held accountable for them. We aim to set a standard for the industry dealing with these issues and to create best-in-class reports that are compatible with internationally accepted guidelines such as the Global Reporting Initiative.

We hope you enjoy this report, and welcome any feedback or questions you may have. We hope that you will value us as a voice in helping the hospitality industry manage its sustainability frontier.

Sincerely,

Walker LunnEnviRelation.

Letter from EnviRelationLetter from EnviRelation


The Willard InterContinental

The Willard First Sustainability Report

The Sustainability Frontier

Leadership towards Sustainable Development

Management for Sustainable Development

Environmental Responsibility

Social Responsibility

Conclusion

Appendix List

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7

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Table of ContentsTable of Contents


The Willard InterContinental is one of Washington, DC's oldest and finest luxury hotels. With a deep role in America's history, the hotel is a centerpiece to Washington, DC culture and politics.

The Willard InterContinental Hotel is located in the heart of Washington, DC, only a block away from the White House. The hotel is managed by InterContinental Hotels Group (IHG), with their Americas office based in Atlanta, Georgia.

The Willard is one of the top hotels in Washington, DC. Its lodging accommodations include 332 elegant rooms with 40 suites. The hotel boasts Café du Parc, a French bistro, the Willard Room, a turn-of-the-century fine dining room featuring American and European cuisines, the Round Robin Bar, and its famous “Afternoon Tea” in Peacock Alley.

The Willard epitomizes world-class hospitality as the hotel of choice for heads of state and leaders of the world's business, cultural, social and political sectors.

AwardsOn November 15th, 2007, the Willard was awarded the IH&RA Environmental Awards for Hospitality Sustainable Development for the hotel's commitment to sustainability in its “The Next 100 Years” program.

Did you know?

Martin Luther King, Jr. finished his famous “I Have a Dream” speech while staying at the Willard Hotel.

Learn more about the Willard's rich history in Appendix A, “Historical Notes.”

The Willard InterContinentalThe Willard InterContinental

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This report covers the sustainability activity of the Willard InterContinental for the calendar year 2007, with comparisons from 2006 and 2005. As the first Hotel Responsibility Report for the Willard, it encompasses, consolidates and systematizes preceding efforts and activities in order to create a platform for continued annual reporting.

This report is meant to provide a comprehensive review of the Willard's “Sustainability.” Sustainability, in its broader definition, is meant to encompass “People, Planet and Profit.” This report addresses the Willard's relationship with these elements. The report is focused on the operational impact of the Willard. It does not address sustainability impacts related to capital expenditures such as construction or renovations.

In preparing sustainability reports, EnviRelat ion uses internat ional ly accepted outline suggestions from the Global Reporting Initiative (GRI) and the

Sustainable Development is also explained by a concept – Triple Bottom Line - created by John Elkington in the book Cannibal with Forks: “In its broadest sense, the triple bottom line captures the spectrum of values that organizations must embrace - economic, environmental and social. In practical terms, triple bottom line accounting means expanding the traditional company reporting framework to take into account not just financial outcomes but also environmental and social performance – economic prosperity, social equity and environmental protection”.

The Willard First Sustainability ReportThe Willard First Sustainability Report

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Why doesn't this report consider the impact of capital expenses?The existence of a hotel involves three main parties; owners, managers, and brands. In any given hotel, these three parties may overlap as the same, or each entity may be separate from the other. The areas of control of each party dictate the responsibility for the impacts created. For this report, the management team has asked for their own sustainability report. The report focuses on the items that the management team has direct control over. Items such as capital expenses, which are traditionally controlled by owners, are excluded.

Learn more about hotel-specific reports from EnviRelation's Hospitality Standards.


World Resources Institute's (WRI) Greenhouse Gas Accounting Protocols. To enrich the report relevance, EnviRelation has developed and is continuing to elaborate on its Hospitality Standards, an industry-specific sustainability reporting resource. Sections in this report relating to specific criteria set out in the GRI are labeled for reporting clarity.

This report is a single hotel report. Only efforts and impacts controlled by the management of the Willard are included. Other hotels either managed or owned by InterContinental are not included within the boundary of this report.

Due to the private nature of the ownership company, a separate entity from InterContinental (the management), proprietary and confidential information, such as certain financial data, are withheld from this report.

Impact calculations are based on EnviRelation's Emissions Management Services. This reporting uses real-time business and consumption data from the Willard against the leading calculation tools and methodology to produce the most precise and accurate greenhouse gas emissions and environmental impact data available.

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The sustainability frontier presents a broad array of impacts, risks, and opportunities. The definition of sustainability encapsulated by the phrase “People, Planet, Profit,” only begins to explain the broad-sweeping considerations of sustainability.

People refers to the many stakeholders involved in the Willard's operation. It includes owners, managers, employees, guests, vendors and contractors, and neighboring businesses, residents and the broader community. In the case of the Willard, which is leading the way toward sustainability for the hospitality industry, people also includes the many hotel professionals around the world watching and learning the best practices that the Willard has to teach. A sustainable operation relates to people in ways that are value-laden. It uplifts people and provides them with experiences, resources, memories, or contributes in other meaningful ways, promoting through its relationships.

Planet refers to the Willard's relationship with the natural environment, which is also a primary stakeholder. Commitment to environmental sustainability is a complex mission to execute. Every product purchased and service performed by the hotel and its stakeholders has an environmental impact. The pressing global environmental issues businesses like the Willard are working to manage can be traced back to two major threats; global warming and loss of biodiversity. An environmentally-sustainable business or lifestyle means that existence does not rely on the contribution to these issues or the destruction of the natural environment.

Profit is a critical component to a sustainable business. No business can exist in perpetuity if it is losing money. Sound fiscal performance that can build a lasting enterprise is the most basic building block to a sustainability commitment. Transparency to all stakeholders is an important attribute to this. Commitment to a governance and transparency mechanism such as the Sarbanes-Oxley act or internal accounting procedures setting the foundation for success.

The Willard relates to each of these areas in three dimensions. These degrees of sustainability-related impacts, risks and opportunities are categorized by “Scope.”

The first degree, Scope 1, includes items over which the Willard has direct control. Scope 1 items are driven by

The Sustainability FrontierThe Sustainability Frontier

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the Willard's purchases and operation. Items such as propane and natural gas consumption, waste disposal, rainwater and storm water management, and urban heat effect are Scope 1 examples of environmental impact. Employee compensation and education are Scope 1 examples of people impact.

The second degree, or Scope 2, is reserved exclusively for those impacts, risks and opportunities associated with off-site power generation purchased by the Willard.

Finally, Scope 3 sustainability-related impacts, risks and opportunities are those over which the Willard is involved with indirectly. Examples of this would include, but are not limited to, transportation of guests, employees, or products purchased by the hotel, fertilizer run-off from non-organically farmed products purchased by the hotel, or practices of the Willard's vendors. Scope 3 is the broadest area, but also the one over which the Willard has the least control and, therefore, responsibility. As an enterprise committed to sustainability, the Willard is undergoing efforts to influence this area of its sustainability impact. All efforts in this regard should be recognized and acknowledged as beyond the Willard's direct responsibility and are purely examples of their effort to lead change.

The largest risk presented in the people arena is the rising cost of living in the Washington, DC area. Nationally, food and fuel are on the rise. Under these pressures, being a gainful employer may grow increasingly expensive and difficult.

The Willard's largest areas of environmental impact are its purchasing sources (Scope 3), waste generation (Scope 1), and electricity consumption (Scope 2).

Global warming presents more direct risks to the Willard than does loss of biodiversity. The impacts of global warming may dramatically increase operating costs for the Willard. Energy prices may rise and the profile of heating and cooling days may shift, squaring the effect on operating costs of the building. Most recently, food prices and the cost of transporting goods have increased significantly. Global warming threatens to increase the instability of both fuel prices and crop yields, exacerbating this problem. Simultaneously, biodiversity loss could damage crop yields, and even nutritional content and disease resistance.

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What is “Scope?”

The concept of “Scope” is used as defined in the World Resources Institute's “Greenhouse Gas Accounting Protocol,” but extended the concept to all areas of sustainability initiatives, not just those dealing with greenhouse gas emissions.For more information, visit www.wri.org.


The Willard's foresight and practivity will help prepare it for any risks presented by these forces of change. Sustainability efforts that focus on energy management, procurement, and other risk-assessment and mitigation measures will position the Willard to make the most of future changes.

These impacts all present equally compelling opportunities. As a landmark and a leader in the industry, the Willard has already shown its value in leading change and managing impacts across all three scopes. The following report presents the Willard's vision for sustainability and illustrates the many initiatives being undertaken by the Willard to take advantage of these opportunities.

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“To be recognized as the premier hotel in Washington, DC and within InterContinental Hotels and Resorts in terms of exceeding our guest expectations, being the employer of choice and maximizing shareholder value. To model a culture that promotes Sustainable Development ideals and quality improvement processes that is the benchmark for the industry” is the Willard InterContinental Hotel's mission statement. The shared vision at the Willard is to be “America's hotel.”

The governance and management of sustainable development efforts at the Willard has been an i n c l u s i v e , d e m o c r a t i c p r o c e s s . T h r e e interdepartmental sustainable development teams were formed with a total of 30 participants. These teams crafted messages and worked through the executive committee of the hotel to refine their messages. Refined messages were reviewed and approved by the general manager.

LeadershipLeadership towards Sustainable Development

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General Manager: The “Citizen Hotelier” Until the late 1970s General Managers were “innkeepers”, their best sales and marketing tools being the quality of their teams and the service delivered to their customers. In the 80s they became “businessmen/women” as they had to be more creative and sales oriented to develop the revenue lines as well as being focused on expenses so as to deliver better profits. Since the 90s they are “asset managers”, ensuring that every square inch of their property delivers revenue and profit on behalf of owners focused on better Returns On Investment (ROI). At the beginning of the 21st century they must add two other bottom lines to the economic bottom line: Social Responsibility and Environmental Protection, thus creating the fourth generation of General Managers: “the citizen hoteliers.”

T h e g u i d i n g p r i n c i p l e o f S u s t a i n a b l e Development is “development that meets the needs of the present without compromising the ability of future generations to meet their own needs. Sustainable Development recognizes the interdependence of environmental, social and economic systems and promotes equality and justice through people empowerment and a sense of global citizenship. Whilst we cannot be sure what the future may bring, a preferable future is a more sustainable one”. Brundtland Report, 1987


The Willard believes that a sustainable development strategy is a responsibility of the hotel industry. The Willard hopes to lead the industry to go beyond the opportunities in marketing and public relations by addressing real impacts. Hotels create substantial waste and a considerable amount of energy, wherever they are located. According to the Pew Center, buildings account for 43% of greenhouse gas emissions in the US.

Why Sustainable Development at the Willard InterContinental? The Willard InterContinental hotel is an industry leader and historical legacy; a prominent landmark in the nation's capital with deep historical roots and influence. This significance marks an obligation to live up to its legacy and remain a hospitality leader. Its deep-rooted history gives the Willard the opportunity to be a beacon for the future, casting light on a new path for the hospitality industry: sustainable development, business, and hospitality.

This hotel is giving direction in the area of sustainable development to the industry, to the city, to the nation and to the world. The Willard believes:

“Our world, our Earth, our peoples will be facing major issues in the future as the planet becomes smaller, the natural resources become scarce and the needs of all become larger. Governments, businesses and private individuals have a shared responsibility for the future of our descendants. Let us face this responsibility and be the leader in developing a long-term strategy, not for the next five years, but for the next one hundred years. That strategy is based on sustainable development.”

Sustainable Development Mission StatementAs part of its sustainable development governance program, the Willard has created a sustainable development mission statement. The mission statement is:

“To model a culture that promotes Sustainable Development ideals and quality improvement processes that are the benchmark for the industry.”

The Three P's Economic prosperity, social responsibility, and environmental responsibility are the “Three P's” of sustainability's triple-bottom-line perspective. InterContinental Hotels and Resorts, North America has adopted the three P's as a result of the Willard's leadership.

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Economic ProsperityThe Willard will deliver superior value to its stakeholders and guests through the responsible application of natural, technical and human resources, and the pursuit of excellence in all that they do.

“It is necessary to show shareholders and Board members that the strategy which is being rolled out is focused on improving the bottom line. Therefore all calculations demonstrating the savings on a long-term basis are important. They will be centered on energy savings, waste reduction and cost reduction by implementing water and other commodity controls, the reduction of potential liabilities and risks and employee retention. On the revenue side one must show the increase of business from clients who are particularly keen on using SD friendly companies.”

Social ResponsibilityThe Willard will be an inspiring place for both guests and staff, and will take a leadership role in improving its local and global community.

“Social responsibility, meaning that a company guarantees that it will be a fair employer and treat its employees with respect, encourages employees to join and stay with a company. They will feel proud of being associated with a leader in the industry, and with a company at the forefront of corporate citizenship. Most of the time employees will be involved in the efforts of a company. It is quite common to see them not only supporting the effort, but enticing the company to go further in its endeavors.”

Environmental ResponsibilityThe Willard will continually reduce its impact on its local and global environment through minimizing waste, maximizing efficiency, and purchasing goods that do not endanger the world's natural resources.

“Caring about the environment is nowadays the responsibility of all governments and all peoples. It is as well the duty of all businesses and executives. Environmentally related ideas should be weighed and considered at company level, but in effect be implemented at the unit level. As well corporate office should be in full support of the effort. Hotels should all be encouraged to apply to ISO 14001 certification – an environmental certification.”

ValuesThe Willard's seven values underline everything the Willard does, including its sustainable development mission. These values are:

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Accountibility: We are dedicated to performing our assigned tasks with excellence and to deliver outstanding results

Education & Development: We provide everyone the opportunities, knowledge and skills to grow both personally and professionally

Empowerment: We have the authority to take ownership, anticipate needs and make decisions that exceed our customers' expectations on first contact

Integrity: We believe in honesty, ethical behavior, respect and trust

Professionalism: We are an action-oriented team of savvy experts who are passionate and quality driven

Sustainable Development : We are committed to Economic viability, Social and Environmental responsibility

Work Smart: We encourage innovation, proactivity, agility and a safe work environmentWinning Ways

InterContinental Hotels Group's values are also part of the Willard's culture

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Do the right thing

Show we care

Aim higher

Celebrate difference

Work better together


The Willard has designed a “Roadmap” to achieving its sustainability goals. The roadmap outlines economic, social and environmental initiatives and goals. Initiatives are set for each goal, with metrics for measurement and specific, metric-related targets to be achieved each year. These targets provide guidance for the Willard from 2008 until 2012.

Economic ProsperityThe Willard has identified two categories of Economic goals for itself; governance and economics. The Willard will measure its governance performance against InterContinental Hotel Group (IHG) Control Self Assessment and Sarbanes Oxley Act compliance. It will measure its economic performance against consumption reductions in kilowatt hours per occupied room, cubic feet of gas per occupied room, and gallons of water per occupied room.

GovernanceTwo areas have been identified as goals for the Willard's governance practices, each directly addressing accounting integrity and excellence.

IHG Control Self AssessmentThe Willard aims to improve its compliance by 1% each year, starting at 96% in 2008 and finishing at 99% in 2011. A score of 95.3 was achieved in 2007. This is a new goal, and no results are available for 2006.

Sarbanes Oxley ActUnder IHG’s guidance, the Willard aims to maintain 100% compliance with the regulations set forth by the Sarbanes Oxley Act, continuing with its 100% compliance for 2007.

GRI Economic Performance

Indicators

ManagementManagement for Sustainable Development

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GRI EC1:Due to the fiduciary responsibility that InterContinental Hotels owes to the ownership of the Willard, profit and loss data is withheld from this report for confidentiality.

GRI EC2


EconomicsThe Willard's operations-driven, climate-related economic risks and opportunities are primarily created by its consumption of fossil fuels as they relate to greenhouse gas emissions and global warming, and water consumption and disposal as it relates to local water supply concerns. Risks and opportunities are presented in all degrees; Scope 1, 2 and 3 impacts. Despite control and responsibility being limited to Scope 1 and 2 impacts, the Willard is taking steps to address select Scope 3 impacts that it believes should be addressed by the industry as a whole.

Three consumption-related economic indicators have been selected for the Willard's economic goals; electricity, gas and water. A 1% reduction per year goal has been set for each of these categories.

Electricity ConsumptionElectricity falls under Scope 2. Although a hotel cannot control the emissions created by power producers selling into the grid, it may chose to purchase renewable energy credits, develop onsite generation capacity, or engage in energy management practices that reduce its energy demand. Of these strategies, the Willard has chosen to purchase wind power credits for all hotel electricity not used by Café du Parc and the hotel's water chillers. The Willard is also engaging in an active energy management program with reduction goals.

The Willard aims to use a total of 86.8 kilowatt hours (kWh) per occupied room in 2008, while reducing this figure to 83.4 kWh in 2012.

In 2006, the Willard achieved a 13% reduction in electrical usage by replacing 80% of the light bulbs in the property with compact fluorescent bulbs. The reduction is the equivalent of removing 98 cars from the road for a year. In 2007, the hotel used 87.7 kWh per occupied room, 18.5% over the goal of 74 kWh per occupied room. Some of this overage is caused by a 10% increase in heating degree-days and the addition of a new restaurant, Café du Parc.

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Washington, DC produces 20% less Carbon Dioxide per MWh as the United States average. Most of the Washington, DC's power is generated by nuclear power and coal from the region. The Willard's decision to purchase 100% wind power offsets these emissions generated, since wind is a clean energy source. Source: eGRID2006 Version 2.1

1096922 879

1556 1421 1363

0200400600800

10001200140016001800

LbCO2e per MwH

GHG Emissions by City

Lb

CO

2e

pe

r M

wH


GasThe use of natural gas falls under Scope 1 because the hotel burns the fuel directly onsite. Gas consumption in 2007 was 242,903 CCF, representing a 14% increase of 2006 levels. This is 2.63 CCF per occupied room, 17% over the goal. Much of this is due to the additional gas use in the new Café du Parc. From a price risk perspective, the average price of gas has risen 7% from 2004 to 2007, peaking at $1.81 per CCF in 2006. The Willard has a goal of 1% reduction in gas per occupied room. This would result in a decrease from 2.6 CCF per occupied room in 2008 to 2.5 CCF per occupied room by 2012. This reduction would equate to a total reduction of approximately 9,368 cubic feet of gas annually, or 57 MTCO e. 2

WaterThe Willard has a goal to reduce water consumption, in terms of both real water consumption and water consumption per occupied room. Since 2004, real water consumption has increased only 3% despite the addition of a new restaurant, Café du Parc. Water consumption per occupied room has increased 7% since 2004 to the 2007 levels of 320.6 gallons per occupied room.

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0

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2004 2005 2006 2007

Water Consumption

gal/occ room

gal/avail room

Linear (gal/occ room)


OtherProject Green's waste reduction efforts have had a significant impact. In 2006, waste generation was reduced by 22%. Thirty percent of this reduction was created by increased recycling recovery rates, 1% by food waste composting, and the remaining 68% by waste minimization efforts. Recycling increased 205%. In 2006, 101 tons were recycled and 2 tons of food wastes were composted. In 2007, recycling increase 5% to 105.17 tons, and food waste recovery for composting increased to 27.48 tons. Waste grew from 807 tons in 2006 to 870 tons in 2007.

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The Willard believes environmental responsibility in the context of a hotel means both addressing the environmental impact of the hotel's operations as well as contributing to local environmental clean-up and stewardship efforts. They are addressing their global and local impact with Project Green and Project Blue. Project Green relates to their impact on land, conservation, biodiversity and global warming. Project Blue addresses their relationship with water.

Project Green includes ten initiatives. They take forward thinking steps in addressing both local and global environmental opportunities. They include:

wAdopting Pershing ParkwWaste ReductionwISO CertificationswSustainable Food and Beverage OfferingswImprove Environmentally Friendly Hotel Room Concept in a City HotelwReduction of Paper Consumptionwincrease Green Products Purchasing, and wSupport the National Park Foundation planting of Cherry trees in Washington, DC

Project Blue is an effort to create a water conservation fund that addresses local and global water quality and scarcity concerns. Supporting the Earth Conservation Corps's efforts to clean the Anacostia, a local river feeding into the Potomac and ultimately southern Chesapeake Bay is the most prevalent local example. To address a national and a global water issue, the Willard has partnered with Running Strong to support the creation of water wells in a Native American reserve in South Dakota, as well as partnering with Playpumps International to sponsor water wells in Africa.

Material UsageThe goal for paper usage is to decrease consumption from 327 cases a year in 2007 to 225 cases a year in 2012. This 31% reduction will save 36 trees according to the Environmental Defense Fund’s Paper Calculator (assuming 30% recycled content) and reduce carbon emissions by 17.1 MTCO e.2

The Willard's goal is to expand the list of sustainable menu items from 20% in 2008 to 60% by 2012.

Environmental Responsibility Environmental Responsibility

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GRI EN

GRI EN1GRI EN2GRI IM6GRI IM7


Sustainable menu considerations include sourcing local, organic foods that reduce the use of chemical fertilizers and keep food miles to a minimum, selecting sustainably farmed or harvested fish that does not deplete damaged fishery stocks or populations, and other environmental and humane issues. 1400 gallons of green products will be purchased in 2008, moving up to 2200 gallons by 2012.

EnergyNatural gas, gasoline and diesel fuel onsite consumption are Scope 1 energy sources. Electricity falls under Scope 2. In 2006, natural gas accounted for 21.1% of energy-driven greenhouse gas emissions, diesel for .04%, electricity for 78.9%. A total of 6,160.8 MTCO e were emitted by energy sources. In 2006, the Willard's 2

net Greenhouse Gas Emissions Per Occupied Room (GEPOR) was 228.59 lbs of CO (includes emissions and 2

offsets from waste activity).

In 2007, energy-driven gross greenhouse gas emissions increased to 7,114.2 MTCO e, 2

al though net emiss ions decreased 8% to 8,316.0 MTCO e, or 196.9 lbs 2

per occupied room. This reduction is largely due to the purchase of wind energy credits. Wind energy credits offset 2,253.9 MTCO e in 2

2007, accounting for 83% of all of the Willard's greenhouse gas emissions offsets that year. Some is also due to the Wi l lard 's comprehensive emissions moderation plan, which includes measures such as replacing windows and an energy management system.

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GRI EN3GRI EN4GRI EN5GRI EN6

GRI EN7

GRI EN8

GHG Emissions Per Occupied Room (GEPOR)

350

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0

243.9228.6

196.9

2005 2006 2007

PO

UN

DS

OF

CO

e ²


WaterThe Willard's “Project Blue” addresses water related concerns. It consists of three direct water reduction efforts as well as local, national, and global water efforts.

Water reduction programs include a guest voluntary linen re-use program, a voluntary guest donation of $1 per room per night at check-in, and the purchasing of local mineral water from RESTORE. Savings from laundry reduction and the funds raised from the guest donations will be used for supporting cleaning efforts at the Anacostia River and a create water wells in South Dakota and Africa. RESTORE supports the Chesapeake Bay Relief Partnership with a portion of its profits and donates $2.00 per case purchased to the Earth Conservation Corps.

The Willard consumed 320.6 gallons of water per occupied room in 2007, up from 287.1 in 2006, from the public utility, and an additional 5.95 galons of water per occupied room in the form of bottled mineral and still water. All of the water used by the hotel is drained into the city system. Washington, DC is serviced by a combined sewer system that carries both gray water from the buildings in the area as well as storm water. Due to the system design, some water overflows into the Potomac and Anacostia Rivers during storm surges when combined sewer overflow (CSO) events may occur. Composting food scraps rather than disposing of food through garbage disposals feeding into the sewer system reduces the normal load placed on the system, thereby increasing its capacity to handle a storm surge event without overflow. In 2006, WASA experienced a CSO volume of approximately 2.5 billion gallons of water.

BiodiversityAs an historic urban hotel, the Willard has little direct impact on biodiversity. The hotel is not located on or near any protected areas or areas of high biodiversity value within or outside of protected areas. The nearest area of biodiversity is Pershing Park, which is adjacent to the entrance of the hotel and contains gardens and benches.

Activities operating a luxury hotel that most impact biodiversity are food procurement programs and disposal, product purchases, and energy consumption.

Food purchases have significant biodiversity impacts. Industrial-style agriculture that overloads the soil with chemical fertilizers results in nitrogen run-off, a leading cause of “dead zones” Improper field and crop rotation can result in nutrient depletion from the soil. Many people believe that genetically modified crops and the use of pesticides can have unforeseen effects on genetic diversity of crops and their effect on human health.

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GRI EN9

GRI EN10GRI EN21

GRI EN11

GRI EN12


To avoid these results and ensure biodiversity in our food supply, the Willard is committed to using sustainably grown and organic foods. Their goal is to grow from 20% of all menu items considered sustainable in 2008 to 60% by 2012. Sustainable menu considerations include sourcing local, organic foods that reduce the use of chemical fertilizers and keep food miles to a minimum, as well as selecting sustainably farmed or harvested fish that do not deplete damaged fisheries stocks or populations.

Composting food wastes further contributes to biodiversity preservation. Because of the combined sewer system in Washington, DC, diverting food out of the sewer reduces combined sewer overflows during storm surges because it reduces the load placed on the system. Additionally, the final product, compost, is an environmentally friendly, organic soil amendment that can be used to reduce the application of chemical fertilizers with artificial nitrogen loads. Not only is the amount of synthetic material applied to the land reduced, but the higher water-retention characteristics of the compost hold more nitrogen and water in the soil, resulting in less waste and less nitrogen run-off contributing to dead-zones.

Other products purchased have a strong relationship with the survival of biodiversity. Paper requires logging, which can be reduced or avoided using recycled paper. Glass and metal containers, computer parts, and other goods purchased and consumed on monthly or annual basis require mining that is often habitat-destroying surface mining. Energy consumption may have similar results for operations using energy from oil or coal.

The Willard has a number of programs to mitigate these Scope 3 impacts, as well as to directly protect and restore habitat. Because it is an old, urban hotel, the Willard must look off-site

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What is Biodiversity?According to Conservation International, biodiversity is “the variety of plants and animals and other living things in a particular area or region. Biodiversity is important because plant and animal species interact and depend upon one another for food, shelter, oxygen, and soil enrichment.”Learn more at:www.biodiversityhotspots.org.

Dead ZonesThe Chesapeake Bay has a “dead zone” that is hundreds of square miles in the summer.A “dead zone” is an area of water that has low dissolved oxygen levels, also known as hypoxia. The low oxygen level can damage aquatic life, while anoxic water, or water with no oxygen, will kill most aquatic inhabitants.“Dead Zones” are probably caused by sewage treatment and agricultural run-off. Reducing waste water, garbage disposal use, and supplementing compost for synthetic fertilizers can all help reduce the growth of local dead zones.Learn more from the Chesapeake Bay Foundation, at www.cbf.org.

GRI IM5

GRI EN13


to find ways to address biodiversity concerns. A partnership with the Alice Ferguson Foundation helps to preserve farmland in Maryland at the Hard Bargain Farm as well as promotes their river clean-up programs and efforts to drive Washington, DC to be waste free (www.fergusonfoundation.org). The hotel has adopted Pershing Park, a small urban park adjacent to the entrance of the hotel. Hotel volunteers regularly clean and maintain the park, keeping it litter free and helping the garden to grow. The decision to use RESTORE mineral water supports Chesapeake Bay restoration, and the water funds they are establishing will help preserve and restore potable water and aquatic life.

According to the International Union for the Conservation of Nature, 23% of all vertebrate species evaluated are threatened, as well as 51% of invertebrates and 70% of all plants. Addressing biodiversity concerns through these partnerships is essential to reducing the number of threatened species.

To manage Scope 3 impacts at the source, they are working on procurement policies and with their vendors. Part of this is an application for ISO certification, which will be followed shortly after with working with their vendors to see that they also meet ISO criteria.

Emissions, Effluents and WastesThe Willard's greenhouse gas emissions are driven by waste disposal in Scope 1, purchased & consumed electricity in Scope 2, and many diverse drivers in Scope 3.

Waste generated at the Willard had a gross carbon footprint of 3,928.4 in 2007. MTCO e emissions in year 2007 2

24

10%

0.18%

3%

0.03%

1%

23%

51%

70%

50%

39%

2007 IUCN Red List: Table 1

Table 1: Numbers of threatened species by major groups of organisms (1996–2007)

Vertebrates

Invertebrates

Plants

Others

TOTAL

Number threatened in 2007,as % of species described

Number threatened in 2007,as % of species evaluated**

GRI EN14

GRI EN16GRI IM8


(93.2 pounds per occupied room), a 10.9% increase from 3,540.7 (87.0 pounds per occupied room) in 2006. 12.0% of these emissions (472.7 MTCO e) have been offset through recycling and composting programs in 2

2007.

Electricity consumption generated 4,858.3 tons of emissions in 2006 (119.4 LbCO e/OCRM), and 5,626 2

MTCO e (133.2 LbCO e/OCRM) in 2007. The purchase of wind energy through Pepco Energy Services has 2 2

offset guestroom emissions starting June 1, 2007, leaving the Willard with a net greenhouse gas emissions of 79.9 LbCO e/OCRM from electricity usage, a reduction of 33.1% from 2006. 2

Scope 3 emissions are driven by items such as:sEmployee CommutessGuest TravelsVendor TravelsVendor ProductionsProduct Purchase Production

Of these emissions, EnviRelation Hospitality Standards suggest that hotels accept responsibility within their sphere of environmental influence for scope 3 emissions generated by employee commutes because the delivering of room nights and meals characterizes the service industry as having its employees play a vital role in the guest experience. It is not uncommon for hotel employers to offer transportation programs, making this a good fit for impact mitigation.

The Willard's employees traveled a total of 269,405 miles to and from work. Of this figure, 110,060 or 41% of the miles came from transportation by car, 125,600 or 47% from public transportation, and 33,745 or 13% from walking or bicycle riding. The total carbon emissions generated from employee transportation in 2007 was 80.9 MTCO e, equaling .16lb of carbon generated per occupied room.2

To reduce greenhouse gas emissions, the Willard has embraced waste reduction programs, recycling, food composting, purchased wind power, and has taken account of the commuting methods and associated emissions of all of its staff.

They have a goal of reducing waste generation while also increasing recycling and composting rates. Their objective is to decrease waste to 775 tons in 2008 and down to 715 tons by 2012. Part of this will come from increasing recycling to 115 tons for 2008 to 135 tons by 2012. Combined with a goal of 30 tons of food waste composted by 2012, the Willard's targeted net recycling rate for 2012 is 18.75%.

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GRI EN17GRI EN29

GRI EN29

GRI EN18

GRI EN22GRI EN26

Initiatives tomitigate environmenta

impacts of productsand services, and

extent ofimpact mitigation.

The informationfor this indicator is

integrated throughout the report.


Great steps have been made towards these goals. Waste was reduced by 22%, from 1029 tons of waste in 2005 to 807 tons in 2006. The recycling program grew by 205%, with 101 tons recycled in 2006. Additionally, the hotel began composting food scraps in February of 2006.

The Willard's primary products are room nights and meals. However, some of the products available at the Willard are products in the traditional sense and have life-cycle impacts that leave with the guest. Sundries or other items sold in the hotel's gift shop, as well as guest room amenities that guests may leave the property with present retail-style product-stewardship challenges.

Direct emissions (scope 1 emissions) from the Willard's operations, generated from the use of natural gas and diesel from backup power generation, totaled 1,485.1 MTCO e in 2007, or 35.2 LbCO e per 2 2

occupied room.

Indirect emissions (scope 2 and 3 emissions) from the Willard's operations, generated from electricity use, waste generation and employee transportation, totaled 9,554.9 MTCO e in 2007. 2

Net indirect emissions were reduced 10.3% when compared to 2006 (83,99), because of the purchase of wind power and increased recycling and composting efforts.

26

GRI EN 16

41%

12%

47%

Total Employee Transportation by Method

Cars

Walking/Bicycle

Public Transportation

2005 2006 2007

Composted 0 2,6 27,5

Landf illed 1028,7 806,8 870,4

Recycled 32,8 100,6 105,2

0

200

400

600

800

1000

1200

Tons

Year

Waste Disposal History

Composted

Landfilled

Recycled

TO

NS

47% 41%

12%

GRI EN 16

GRI EN27


27

Natural Gas14%

Electricity51%

Paper Waste6% Comingled Waste

27%

Other2%

Breakdown of Willard Carbon Emission Sources, 2007


Four initiatives have been set to achieve social responsibility objectives. Project CARE addresses community and workplace quality-of-life concerns. Project COMMUNICATE is designed to educate stakeholders about their sustainability efforts. Project EDUCATE is their avenue for providing enrichment and education programs for children. Finally, Project HEALTH is the hotel's way of promoting healthy living and habits towards employees, and later to include guests.

Labor Performance

Workforce CharacteristicsThe Willard employs 376 people. The average commute for employees of the Willard is 15.7 miles. 59% of the workforce is male and 41% is female. The ethnic breakdown of the Willard is 27% African-American, 26% Asian, 23% Latino, 21% White, and 3% Other.

Compensation PracticesAll full time employees receive medical, dental and eye healthcare, paid vacation, personal days, holidays and a 401k. These benefits are available to part-time employees who work 32 hours or more a week.

Health & SafetyTo manage workplace safety, the Willard has a safety committee that meets once a month. The committee has managers from all departments. Each month, the committee walks the property to discuss safety issues. They also provide a daily review of any workplace accidents and report how long it has been since a workplace accident.

Calculating Employee CommutesTo assess the commute-related emissions from the Willard, members of each department were asked to report the number of miles traveled by car or van (taking into consideration the average occupancy of the vehicle), motorbike, walking or biking, bus, and rail or subway. EnviRelation's Hospitality Standards suggest that hotels consider the impact of commuting to work, in order to understand and mitigate those impacts.

Social ResponsibilitySocial Responsibility

28

GRI SR

GRI LA1

GRI LA3


Human Rights Performance

Contractor RelationsThe Willard plans to obtain ISO 14001 certification in 2008, and to follow it with ISO 22000 certification in 2009/2010. Once it has achieved ISO certification, the Willard will begin to work with suppliers and contractors to ensure that they meet a baseline set of requirements. The Willard has already provided many of its vendors with a set of standards that it expects them to uphold.

Vendors have the opportunity to provide the Willard with insight, too. The Sustainable Development Advisory Board is a panel of roughly 10 members representing various vendors. This panel meets once a year to discuss the Willard's sustainability objectives and how the vendors can work to help meet them. As part of this process, the board is provided with the opportunity to share their insight and programs and offer their own experience and suggestions to the Willard.

Fair LaborThe Willard does not have any collective bargaining agreements in place. The Willard ensures that it continuously offers fair compensation and healthcare packages by benchmarking them against industry standards on an annual basis. No child, compulsory, or other illegal form of workforce or labor practice is used.

To go above and beyond, the Willard is planning to develop a workplace quality index during 2008 and work towards significant improvement against those criteria over the following years.

Finally, the Willard takes an active role in supporting the health of its team members. For Project HEALTH, the Willard hopes to improve cardiovascular health, boost energy levels, and bring on the many benefits of healthy living. The Willard has partnered with the American Lung Association to offer smoking cessation aid and resources. With the Willard Road Runners program, the Willard's goal is to have staff run or walk an aggregate total of 500 miles each year. The “Employee Extreme Makeover” program is an effort to help coworkers lose weight and quit smoking.

Local RelationsThe Willard has a strong community service program, Project CARE. This project consists of three programs. First, the Willard actively supports employee community service actions. The hotel hopes to have a total of 66 staff members participate in community service activities, with a total of 1,100 hours volunteered in 2008. The

29

GRI HR2GRI SCM1GRI SCM2

GRI SCM2,4

GRI HR5GRI HR7GRI IM2

GRI HR8


hotel has set a 2012 target of 97 volunteers contributing 1600 hours. Previous efforts have included AIDS walks for the Whitman-Walker Clinic, Walk for the CURE, and a toy drive that donates toys to the Children's National Medical Center.

Society Performance

Public Benefit ServicesThe Willard is a historical landmark with a history deeply rooted in development of America as it is today. By maintaining its original function, the Willard has offered significant public service over the decades. The economic value of these contributions is difficult to calculate. The Willard has contributed to intangible infrastructure. Just one example is the term “lobbyist.” This word purportedly comes from President Ulysses S. Grant's tenure, when he would relax in the lobby of the Willard with a cigar and brandy and be approached by people seeking favors. Another example is Martin Luther King, Jr.’s “I Have a Dream,” speech, which was finished in the Willard.

The public space at the Willard, such as the lobby, has contributed to America's history since the opening of the hotel.

Community PartnershipsThe Willard has been a member of the local community for decades. To play its role as a business citizen of Washington, DC, the Willard has partnered with a number of local and regional organizations to help address community concerns. Each partnership provides a way for the Willard to help promote the work of the partner organizations, enrich the working experience of employees of the Willard, and advance the Willard's own social goals.

30

GRI EC8

GRI SO1


Partners

31

The partnership with the American Lung Association is a smoking cessation program funded by settlement money paid out by tobacco companies to the American Lung Assocation. Eight workers from the Willard quit smoking in the first year of the program, through support such as cessation patches and help phone numbers. The American Lung Association also partnered with the US Justice Department and the Washington, DC neighborhood of Adam's Morgan for its smoking cessation efforts

American Lung Association

The Willard has partnered with the National Park Service in its effort to clean and help maintain Pershing Park, a small urban park near the entrance of the hotel. Through this partnership, the Willard is also promoting “Arts in the Park,” an effort to highlight local artists through a monthly event offering art displays, and lessons and workshops. Guest Services, Inc and the Corcoran Gallery of Art and College of Art and Design are also partners in this effort.

National Park Service

Earth Conservation Corps

Project BLUE, the Willard's water-focused efforts, are aided by a partnership with the Earth Conservation Corps. Money raised from Project BLUE efforts are donated to the Earth Conservation Corps. In turn, the Corps offers river patrol tours of the Anacostia River to Willard employees and works to keep the Anacostia clean.


32

Alice Ferguson Foundation

The Alice Ferguson Foundation is a local environmental education and action group that maintains an organic farm, the Hard Bargain Farm, on the shores of the Potomac and sponsors regular trash-free events such as clean-ups and multi-stakeholder meetings. AFF sells organic eggs to the Willard and chefs from the Willard visit the farm to offer cooking classes to children there.

Chesapeake Bay Recovery Partnership

The Chesapeake Bay Recovery Partnership is a public-private partnership between the Oyster Recovery Partnership and the State of Maryland Department of Natural Resources. Donations are made to the Partnership through the use and sale of RESTORE bottled water at the Willard.

United States Environmental Protection Agency

The US EPA has highlighted the Willard for its use of 100% wind power, as well as a pilot for energy conservation.

The Willard helps the Children's National Medical Center by sponsoring toy and gift drives, and donating turkeys during the holidays.

Children's National Medical Center


33

Guest InclusionProject EDUCATE also teaches about sustainability. The Willard provides a conservation tips booklet for guests to help raise awareness about the Willard's sustainable development programs.

To further guest inclusion, Project COMMUNICATE involve the creation of e-newsletters, the Willard's sustainable development website (www.willarddc.com/sd), and the creation of a sustainable development TV channel for the hotel's in-house programming. The website has comprehensive information about their environmental programs and efforts, while the TV channel will be an in-house program featuring information about corporate social responsibility, highlighting the practices of regional businesses and the hotel's vendors and partners as well as giving an opportunity to companies involved in SD to showcase their efforts.

St. Jude Children's Research Hospital

The Willard is planning to undertake an annual fundraiser for St. Jude Children's Research Hospital. Current plans are to launch a luncheon & fashion show in March 2009, and to continue it annually.


Product Responsibility Performance

Customer Health and SafetyThe Willard essentially offers two services; food and beverage, and lodgings. Each of these services has life cycles with health and safety impacts at each stage.

To address the life-cycle concerns from its food services, the Willard is focusing on purchasing organic products, preferring in-season local items and items grown or raised humanely or ethically.

The Willard's Project GREEN includes a program to “improve environmentally friendly hotel room concept in a city hotel.” This new model of a luxury guestroom will be introduced throughout the hotel with an upcoming renovation, and will address many of the lifecycle health and safety concerns associated with a lodging product. The room design will be inspired in part by feedback from the newly launched survey.

TransparencyThe Willard features its efforts in several formats to help guests understand what the hotel does as well as the broader concerns about sustainability and the health and safety impacts of the hotels services. Information regarding food purchases is often included in the menu. Broader program details are included on their sustainability website (www.willarddc.com/sd). Finally, this report is a large effort to help guests gain a better understanding of the impacts staying at the Willard will have.

For additional information, please visit www.willarddc.com/sd.

For information on IHG's Corporate Responsibility strategy, please visit www.ihgplc.com/index.asp?pageid=8.

34

GRI PR1

GRI PR3


This has been the Willard InterContinental Hotel's first annual sustainability report. It has included both performance worthy of accolades, and performance needing improvement. More importantly, it is an honest representation of the Willard's commitment towards sustainability and the effect of the actions being taken.

Clear improvements in environmental performance have been made. From reducing electricity consumption and purchasing renewable energy to reducing net greenhouse gas emissions and landfilled waste, the Willard has seen great success. The hotel has only fallen short on a few goals, and their disclosure of these show the integrity with which they are approaching their sustainability commitment.

The Willard's “Roadmap” sets clearly defined goals for performance and addresses pressing environmental impacts. The initiatives and partnerships being undertaken by the hotel are more than impressive; they are laudable. The Willard is addressing multiple environmental and social issues, locally and globally. Its partnerships are promoting some of the finest organizations to excel at what they are best at. From children's health and smoking cessation to African water concerns, the Willard has selected pertinent issues facing the global community.

From its partnership with vendors, development and implementation of a “green room” concept, to the opportunity for clearly calculating financial risk created by global environmental issues or educating staff and guests alike about sustainability, it is difficult to say what ambition is the Willard's most exciting or holds the most promise.

ConclusionConclusion

35


AppencesAppendices

Appendix A: Historical NotesAppendix B: The Willard's 2007 Emissions Management Report Snapshot Appendix C: Envirelation's Hospitality Standards on Greenhouse Gas Emissions Management Appendix D: Glossary of Terms

IIIIIVVII


The first group of three Japanese ambassadors to the United States stayed at the Willard with seventy-four other delegates in 1860, where they observed that their hotel room was more luxurious than the U.S. Secretary of State's house. It was the first time an official Japanese delegation traveled to a foreign destination, and many tourists and journalists gathered to see the sword-carrying Japanese.

From February 4 to February 27, 1861, the Peace Congress, featuring delegates from 21 of the 34 states, met at the Willard in a last-ditch attempt to avert the Civil War. A plaque from the Virginia Civil War Commission, located on the Pennsylvania Ave. side of the hotel, commemorates this courageous effort. Later that year, upon hearing a Union regiment singing "John Brown's Body" as they marched beneath her window, Julia Ward Howe wrote the patriotic "Battle Hymn of the Republic" to the same tune.

On February 23, 1861, amid several assassination threats, detective Allan Pinkerton smuggled Abraham Lincoln into the Willard during the weeks before his inauguration; there Lincoln lived until his inauguration on March 4, holding meetings in the lobby and carrying on business from his room.On March 27, 1874, the Northern and Southern Orders of Chi Phi met at the Willard to unite as the Chi Phi Fraternity.

Many United States presidents have frequented the Willard, and every president since Franklin Pierce, including George W. Bush, has either slept in or attended an event at the hotel at least once; the hotel is hence also known as "the Residence of Presidents".

It was the habit of President Ulysses S. Grant to drink brandy and smoke a cigar while relaxing in the lobby. It was here that he popularized the term "lobbyist", as Grant was often approached by those seeking favors. This term became synonymous with Washington politics.

Plans for Woodrow Wilson's League of Nations took shape when he held meetings of the League to Enforce Peace in the hotel's lobby in 1916.

Calvin Coolidge ran the country from his guestroom as he lived at the hotel for three weeks in August 1923, while

Appendix AAppendix A: Historical Notes

I


Warren G. Harding's widow vacated the White House.

Several hundred officers, many of them combat veterans of World War I, first gathered with the General of the Armies, John Joseph "Black Jack" Pershing at the Willard Hotel in Washington, D.C., on October 2, 1922 formally established Reserve Officers Association (ROA) as an organization.

The first recorded meeting of the American Association for Cancer Research was convened at the Willard on May 7, 1907.

The National Press Club was founded at the Willard in 1908.

Martin Luther King, Jr. finished his famous "I Have a Dream" speech in his hotel room at the Willard in 1963 the evening before he made it on the steps of the Lincoln Memorial.

Among the Willard's many other famous historic guests are P. T. Barnum, Mark Twain, Walt Whitman, General Tom Thumb, Samuel Morse, the Duke of Windsor, Harry Houdini, Gypsy Rose Lee, Gloria Swanson, Emily Dickinson, Jenny Lind, Charles Dickens, Mae West, Bob Fosse. The Willard continues as a frequent host to many famous luminaries of today, including celebrities, business and political leaders.

II


Appendix BAppendix B: The Willard's 2007 EmissionsManagement Report Snapshot

III


Scope

Greenhouse Gas Emissions MetricGreenhouse Gases which are accounted for and included:

1.Carbon Dioxide (CO )2

2.Methane (CH4)3.Nitrous Oxide (N20)4.Hydrofluorocarbons (HFC)-134a

All are converted to their respective Carbon Dioxide Equivalents (CO e) measured in metric tons, as a standard 2

according to EPA conversion coefficients.

The World Resources Institute's Greenhouse Gas Protocol defines three scopes of greenhouse gas emissions:

·Scope 1 – Direct GHG emissions occur from sources that are owned or controlled by the company, such as emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process equipment.

·Scope 2 – Emissions from the generation of purchased electricity consumed by the company, but physically occur at the facility where the electricity is generated. Purchased electricity is defined as electricity that is purchased or otherwise brought into the organizational boundary of the company.

·Scope 3 – Emissions which are a consequence of the activities of the company, but occur from sources not owned or controlled by the company (activities are extraction and production of purchased materials, transportation of purchased fuels, use of sold products and services, etc.)

Adapting the WRI's GHG Protocol to the hospitality industry, EnviRelation in its Hospitality Standards marks the boundaries for which properties should account and measure their carbon footprint as an industry. Greenhouse gas emissions are calculated by summing the emissions generated in the following categories:

Appendix CAppendix C: Envirelation's Hospitality Standards onGreenhouse Gas Emissions Management

IV


·Scope 1 – Emissions from Fuel usage directly in property or in its vehicles or equipment (backup generators, burners powered with natural gas)

·Scope 2 – Emissions from electricity purchase and usage ·Scope 3 – Emissions from employee transportation to and from work(shared, public, or private), and

emissions from solid waste generation

In the case that laundry services are outsourced by the hotel, energy input required to wash linens is calculated by an industry standard, and added to the property's scope 2 emissions from electricity generation.

In the case of a full-service property, restaurant emissions are included in the calculations, even if the restaurant is outsourced to a third-party operator, since the restaurant is still located on-site and hotel guests make up a significant proportion of its customers.

Note: comparative E2MS reports measure hotels of similar structures (full-service with restaurants, function space, commercial or retail space, etc.) which are identified in each report.

The following emissions sources are not accounted for the E2MS methodology:

·Emissions generated from the energy required to distribute potable water to the property, or its treatment and discharge off-site

·Emissions generated from supplier activities other than laundry services·Emissions generated from the construction of the hotel·Emissions generated from any capital expenditures; the E2MS reporting is strictly operations-based·Emissions resulting from corporate or regional offices to which the property reports are not counted

within the scope of emissions reporting. Note: EnviRelation is in the process of setting benchmark values to allocate emissions per property based on corporate or

regional support entities, which will be incorporated into the E2MS reporting system at a future date.

Calculation Methodology

ElectricityData analyzed based on GHG emissions from sub-regional averages of Carbon Dioxide emissions per MwH of electricity generated based on the region's mix of fuel sources, as made available in EPA's eGRID, from latest data set in 2004, compiled in 2006.

Gasoline

V


Emissions from gasoline taken from EPA Transportation and Air Quality Figures of CO emissions February 2

2005, converted to metric tons of Carbon Dioxide Equivalents (MTCO e).2

Employee Transportation Data analyzed based on employee data of transportation methods and mileage, from which monthly averages were used to calculate annual mileage by transportation type. Values were classified as falling under three methods of transportation:

1.Car – single emissions, calculated based on the EPA Transportation and Air Quality Figures of CO 2

emissions – February 2005, for carbon emissions per mile in passenger vehicles2.Bus/Rail/Subway – GHG emissions calculated by inverting gasoline savings by use of public

transportation figures from the American Public Transportation Association to estimate gasoline usage equivalents by public transportation methods.

3.Walking/Bicycle – zero GHG emissions

Other FuelsData analyzed based on figures of GHG emissions resulting from the burning of fuels other than crude oil and gasoline are calculated based on figures of greenhouse gas emissions (using low heating values), published from the World Resources Institute, December 2007.

Solid WasteAll waste generated from the property's operations is documented and its emission accounted for at the moment of its disposal.

Data analyzed based on figures of GHG emissions resulting from solid waste components, with their corresponding coefficients depending on type, and averaged into seven major categories: glass, plastic, paper, metal, food scraps, other organic, rubber. When waste is not available in a specific category, it is classified as mixed waste. GHG emissions coefficients were taken from EPA's Waste Reduction Model (WARM), May 2006.Note: in the case of specific materials recycling such as phone books, computers, or batteries, specific calculations are made at the time of their disposal, with their specific coefficients. These values are then joined together whenever the disposal occurs under the category of other waste. Calculations invert the WARM coefficients for carbon offsets based on reduction of materials, designating the same value of GHG emissions generated from the consumption of materials as part of the property's total Scope 3 emissions.

VI


For recycling programs and food waste composting, data was analyzed based on tonnage of materials recycled and composted, with their corresponding WARM coefficients to calculate the offsets per category of waste. Note: in most cases, the value of GHG emissions offset by recycling is inferior to the value generated in their production and consumption.

Carbon OffsettingValues for GHG offsetting taken from programs implemented and carbon credits purchased.

For other methods of carbon offsetting such as reducing consumption in comparison to an established baseline, such reductions are not considered offsets in E2MS reporting, since the results of reduction efforts will be demonstrated in the decreasing of a property's overall MTCO e emissions at the time of measurement.2

Auditing MethodologyThis report is prepared in its entirety by EnviRelation, LLC, a third-party organization. Information provided by the Willard contained herein has not been verified by EnviRelation, a neutral reporting body.

VII


Baseline – The specific moment (month, year, date, etc.) in which values of consumption, emissions, production, etc. are documented and registered, from which future values will be measured and compared. The most important example is that of the Kyoto Protocol, where nations signing used the baseline year of 1990, with the objective of reducing greenhouse gas emissions by 5.2% below 1990 levels by the year 2012.

Carbon Footprint – A certain amount of gaseous emissions that are relevant to climate change and associated with human production or consumption activities.

Carbon Offset – Financial instrument representing a reduction in greenhouse gas emissions as measured in metric tons of carbon dioxide equivalent (CO e). One carbon offset represents the reduction of one metric ton of 2

carbon dioxide, or its equivalent in other greenhouse gases.

CCF – Hundred Cubic Feet. This refers to the denominator used to measure natural gas consumption.

Cooling Days – Measures how high the average daily temperature is relative to a reference temperature such as 18C / 65F (or how many degrees of cooling are required).

Dead Zone – An area of water that has low dissolved oxygen levels, also known as hypoxia. The low oxygen level can damage aquatic life, while anoxic water, or water with no oxygen, will kill most aquatic inhabitants.

GEPOR – Greenhouse Gas Emissions Per Occupied Room. An industry measurement standard for the net emissions (generated minus offset) resulting in a night’s hotel stay, measured in pounds of carbon dioxide equivalent (LbCO e)2

GHG – Greenhouse Gases. Gases present in the atmosphere which reduce the loss of heat into space and therefore contribute to global temperatures through the greenhouse effect.

GRI – Global Reporting Initiative. Currently one of the world's most recognized standards in sustainability reporting guidelines. Guidelines are the most common framework used in the world for reporting. More than

Appendix DAppendix D: Glossary of Terms

VIII


1000 organizations from 60 countries use the Guidelines to produce their sustainability reports. consist of principles and disclosure items (the latter includes performance indicators). The principles help reporters define the report content, the quality of the report, and give guidance on how to set the report boundary. Principles include those such as materiality, stakeholder inclusiveness, comparability and timeliness. Disclosure items include disclosures on management of issues, as well as performance indicators themselves, which form the base of the Reporting Framework. There are other elements such as Sector Supplements and National Annexes that respond to the needs of specific sectors, or national reporting requirements.Note: Currently, the GRI does not offer a specific hotel industry supplement. EnviRelation, through its Hospitality Standards, looks to work with the industry to develop such standards in order to ensure standardized and meaningful sustainability reporting throughout the industry.

Heating Degree Days – Measure developed as a way to relate each day's temperature to the demand for fuel to heat buildings. Heating Degree Days are calculated by finding the day's average temperature by adding the high and low temperatures then dividing by two.

ISO 14001 – Environmental management standards that exist to help organizations minimize how their operations negatively affect the environment (cause adverse changes to air, water, or land), comply with applicable laws and regulations).

ISO 22000 –Standard developed by the International Organization for Standardization dealing with food safety

LbCO e – Pounds of Carbon Dioxide Equivalent. The same metric as MTCO e, but expressed in pounds 2 2

instead of metric tons.

MTCO e – Metric Tons of Carbon Dioxide Equivalent. This figure represents the total amount of greenhouse 2

gases released into the atmosphere as a common metric so that emissions can be directly compared as a standard for a Carbon Footprint. MTCO e standardizes the four greenhouse gases taken into account: Carbon 2

Dioxide (CO ), Methane (CH ), Nitrous Oxide (N O), and Hydrofluorocarbon (HFC)-134a. 2 4 2

Net Carbon Footprint – The net amount of MTCO e emissions, calculated as the gross emissions minus any 2

direct or indirect carbon offsetting.

Occupied Room – An industry metric differentiating between the number of rooms a hotel has on any given night and the number of rooms occupied by guests on any given night.

OCRM – An abbreviation for occupied room.

IX

Interested? Want to Learn More? Want to Sign On?Give us a call: (202) 465-4802 Send us a fax: (202) 465-4812

Send us an email: [email protected] us mail: EnviRelation, LLC

PO Box 3711Washington, DC 20007

Report prepared by:

2007 sustainability report - hospitality net · pdf fileintercontinental hotels group...

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