whitbread corporate responsibility report 2014

8/10/2019 Whitbread Corporate Responsibility Report 2014

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Five years of being Good Together

Corporate Responsibility Report 2014

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WhitbreadCorporate Responsibility Report 2013/14 2

IN THE LAST FIVE YEARS WE HAVE

REDUCED CARBON

EMISSIONS BY 32.8%

SAVED OVER 54 MILLION KWHIN ENERGY

INVESTED 20 MILLION IN ENERGYSAVING TECHNOLOGIES RETURNINGOVER 6 MILLION

DIVERTED 23,000 TONNES

OF WASTE FROM LANDFILL

FROM OUR HOTELS AND

RESTAURANTS

AWARDED 1,101

APPRENTICESHIPS

REDUCED WATERCONSUMPTION BY28.2%

CORPORATE RESPONSIBILILTY HIGHLIGHTS - 2013/14

3,000 NEW JOBS CREATED

RELATIVE TO SALES CARBONEMISSION EFFICIENCY IMPROVEDBY 10.3% PTS

OUR HOTELS AND RESTAURANTSHAVE DIVERTED 94.6% OF WASTEFROM LANDFILL

COSTA HAS DIVERTED 67% OFWASTE FROM LANDFILL

557 APPRENTICESHIPS AWARDED

7.7% REDUCTION IN WATER USERELATIVE TO SALES

3 MILLION RAISED TO DATE

1.5 MILLION RAISEDTHIS YEAR

TOTAL REVENUE 2,294.3M UNDERLYING BASIC EPS 179.02P

UNDERLYING PROFIT BEFORE TAX

411.8M

GROUP RETURN ON CAPITAL 15.3%

CASH FLOW FROM OPERATIONS

601M

43,000 EMPLOYEES

22 MILLION GUESTS IN THE UK

c.65,000 PREMIER INN ROOMSBY 2016

c.75,000 PREMIER INN ROOMSBY 2018

COSTA TO ACHIEVE 2BN GLOBALSYSTEM SALES BY 2018

FINANCIAL OVERVIEW 2013/14 OUR GROWTH MILESTONES

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OUR VISION IS TO GROW LEGENDARY BRANDS BY BUILDING A STRONG CUSTOMER

HEARTBEAT AND INNOVATING TO STAY AHEAD. ITS OUR WINNING TEAMS

THAT MAKE EVERYDAY EXPERIENCES SPECIAL FOR OUR CUSTOMERS SO THEY

COME BACK TIME AND TIME AGAIN, DRIVING PROFITABLE GROWTH. OUR GOOD

TOGETHER PROGRAMME MAKES US A FORCE FOR GOOD IN OUR COMMUNITIES.

We use the diagram below to illustrate our vision.

Profitable GrowthWinning Teams

A force for good

CustomerHeartbeat

Good Together focuses on three pillars

WE WANT TO MAKELIVES BETTER

WE CARE ANDWE KNOW OUR

CUSTOMERS CARE

IT MAKES GOODBUSINESS SENSE

TO BE MOREEFFICIENT ANDSAFEGUARD OUR

ENVIRONMENT

WHITBREAD PLC IS THE OWNER OF THE UKS FAVOURITE HOTEL CHAIN, PREMIERINN, AND THE UKS FAVOURITE COFFEE SHOP, COSTA, AS WELL AS RESTAURANTBRANDS BEEFEATER, BREWERS FAYRE AND TABLE TABLE.

FOR THE

ENVIRONMENT

mak ing l i ves bet t er

8 PREMIER INNINTERNATIONAL HOTELS

2,900+ COSTA STORESIN 30+ COUNTRIES

OVER 400 RESTAURANTSACROSS FIVE BRANDS

3,500+ COSTA EXPRESSMACHINES

670 UK PREMIER INNS55,000+ ROOMS

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This means that we are serious aboutsustainability. We know its the rightthing to do for our environment and forfuture generations. It also makes goodbusiness sense because we know thatour people and our customers care.We employ some 43,000 people atWhitbread and they want to be part of

a company which is making a positivecontribution to their community above and beyond simplymaking money. There are three themes to our Good Togetherprogramme our teams and communities, customer wellbeingand reducing our impact on the environment.

TEAMS & COMMUNITIESWhitbread is a highly people intensive business. The key to oursuccess is delivering a consistently brilliant experience for the22 million customers who visit our establishments every month.We can only achieve this through the hard work, training andmotivation of the 43,000 people who deliver that experience toour customers. Our ambitious growth plans mean that we arecreating 3,000 new jobs in the UK every year. We aim to deliverbest in class training and development programmes to buildtheir skills and support their career progression. In 2013/14 wehelped 557 Premier Inn team members gain an apprenticeship

and are targeting 3,000 apprenticeships, along with 4,500work placements for young people in the UK, by 2018.

We are immensely proud of the work that our teams do tosupport charitable and local causes. This year alone theyve raisedover 3m towards our chosen charities of Great Ormond StreetHospital and the Costa Foundation. Additionally, they undertakehours of volunteering work each month and raise much-neededfunds for local charities, which Whitbread is delighted to supportthrough our raise and match funding programme.

CUSTOMER WELLBEINGWe aim to give customers the information they need to makethe best choices for themselves and for the wellbeing of ourcommunities. It is also our responsibility to ensure that theproducts and services that we deliver consistently meet ourown high standards, including the entirety of our supply chain.We serve 22 million customers a month across our hotels,restaurants and coffee shops and that means we have a realopportunity to inform, educate and impact consumer attitudesto sustainability. We are leading in our work on responsiblesourcing and will only work with suppliers who share ourvalues and source their products responsibly according to

the standards we set. This year we have undertaken a numberof measures to ensure our customers can have the utmostconfidence in the integrity of our meat products. This includesrigorous and regular independent testing of our products, aswell as imposing an industry-leading set of quality controlstandards on our suppliers, which means we can trace theorigin of all our meat products.

ENERGY & ENVIRONMENTWhitbread is a company that is growing ... fast. We have setambitious growth milestones to increase the number of PremierInn UK rooms to around 75,000 and to double the size of Costawith global system sales of 2bn by 2018. Our challenge is toensure that, as we grow, we reduce our carbon footprint andminimise our energy usage, water consumption and productionof waste. The new hotels, restaurants and coffee shops that weopen are an opportunity to incorporate green technology andways of working to test and demonstrate higher sustainabilitystandards. We continue to invest in refurbishing or retrofittingour existing estate with energy efficient building materials andequipment.

Tackling climate change and doing more to improvesustainability and resource efficiency are major issues affectingall business sectors. As the UKs largest hospitality company,

we aim to be a leader in developing sustainable businesspractices within our sector. We are especially proud to be thefirst hospitality company in the UK to receive the prestigiousCarbon Trust Triple Award for achievements in carbon, waterand waste reduction across all hotels and restaurants.

WORKING TOGETHER TO MAKE A DIFFERENCELaunched back in 2009, our Good Together programme hasrapidly gained momentum and is making a real differenceto how we do business at Whitbread. We are committed toworking together and sharing knowledge with our peers,partners, Government and NGOs to seek new and better waysto achieve our Good Together goals.

We have laid out some ambitious Good Together targets andare on track to deliver them. This is a great tribute to thepassion, commitment and hard work of all our teams throughoutWhitbread. I would like to thank them all for their contributionto making Whitbread a force for good in all our communities.

Kind regards

Reduce carbon emissions by 25%* Reduce carbon in our supply chain by 10% Zero waste to landfill Reduce water consumption by 25%* Achieve accreditation and sustainable supply of tea,

coffee, timber, palm oil, fish, meat

Raise 7.5m for Great Ormond Street Hospital

Costa Foundation to educate 50,000 children and have50+ school projects in coffee growing communities

10,000 qualifications delivered to team members inWhitbread Hotels and Restaurants

Enhanced skills training delivered to 20,000 teammembers in Costa

2017 Goals

*from Whitbread direct operations and based on 2009 baselines

GOOD TOGETHER IS OUR CORPORATE RESPONSIBILITY PROGRAMME AND IT IS A FUNDAMENTALAND INTEGRAL PART OF HOW WE DO BUSINESS AT WHITBREAD. WE AIM TO BE A FORCE FORGOOD IN ALL THE COMMUNITIES IN WHICH WHITBREAD OPERATES.

INTRODUCTION FROM THE CEO

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We believe we can make a difference by creating opportunities for peopleto get into work; helping people to learn new skills and develop their careers;supporting local communities through volunteering and raising vital funds forGreat Ormond Street Hospital Childrens Charity and the Costa Foundation.

TEAMS & COMMUNITIES

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* British Hospitality Association data


INVESTING IN PEOPLE AND

BUILDING A SKILLED WORKFORCE

The nature of our business requires a large workforceand we currently employ over 43,000 people(of whom 39,000 people are hourly paid). Ourworkforce is set to grow as we invest 5bn over thenext five years in an ambitious organic growthprogramme to extend our Premier Inn and Costa

brands, creating a further 2,500 - 3,000new UK jobs per annum.

The UK hospitality industry is the fourthlargest employer in the UK, accounting for

more than 2.7 million jobs, and is set to create 300,000 newjobs by 2020*. Our industry is often a first entry job for youngpeople going into the workplace, so they can have limited basicskills and experience. Its also an industry where, given the righttraining and development, employees can progress quickly into

senior roles across the industry.

At Whitbread we have a young workforce. 48% are aged 16-25 years and 60% of the people we recruit every year arebetween 16-25 years old. Many are from the NEET population(not in employment, education or training). They often lackthe confidence or the necessary skills so we need to invest intraining to ensure they are job ready and continue to increasetheir skills and progress in their roles.

Ensuring that we have capable, confident and engaged teamsto deliver a consistently excellent service for our customers iscritical to our success. We recognise the importance of investingin training and development to build high quality teams andhelp employees to increase their skills and their pay as theyprogress in their careers.

50% OF PREMIER INNS 8,000 NEWJOBS WILL GO TO 16-25 YEAR OLDSWHO ARE LONG-TERM UNEMPLOYED

WE INVEST 12 MILLION A YEARON TRAINING

We believe we have the opportunity and the responsibility tosupport young people into employment and invest in buildingtheir skills and careers. This not only makes lives better forpeople living and working in the communities where weoperate, but also benefits our customers and shareholders,ensuring we provide great customer service and will deliver onour ambitious growth plans.

2017 TARGET 2013/14 PERFORMANCE PROGRESS TO DATE

Whitbread Hotels and Restaurants -10,000 qualifications (including 3,000apprenticeships)

Costa - enhanced skills training to 20,000team members

434 qualifications (this covers the firstthree months of 2013/14 as we pausedthe programme to relaunch it under theWISE programme)

5,700 team members plus 920 managersreceived enhanced skills training

7,049 qualifications

14,382 team members and managersreceived enhanced skills training

Whitbread are building a sustainable

and quality recruitment strategy which

will reduce future turnover and inspire

and develop their team. It is invaluableto be working with an employer that

understands that by doing the right

thing and by giving back to community,

they drive their business

performance as a direct return

Ufi Ibrahim CEO of the British Hospitality Association

Jessica French is a team member at the Birmingham NewStreet Premier Inn. She is currently completing the first yearof a 3 1/2 year apprenticeship programme to achieve a HigherApprenticeship in Hospitality Management, with the goal ofpreparing her to run her first hotel

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OUR GROUNDBREAKING WISE PROGRAMME

In 2012 we were delighted to secure Employer Ownershipfunding from Government of 4.3 million for ourgroundbreaking skills and employment programme which wecall WISE Whitbread Investing in Skills and Employment. ThisGovernment funding bolsters our own four-year 15 million

commitment to attract thousands of people to build greatcareers at Whitbread, and improve their skills and employmentpotential in the hospitality sector.

WISE challenges traditional training and education routesin the hospitality sector by using an innovative in-houseemployer-devised qualification system which can offer nationalaccreditation standards. Our WISE programme is focused oneducating, engaging and employing people who are often from

difficult backgrounds. It is focused on four key areas.

HELPING PUPILSAND STUDENTS INEDUCATION TO GET TOKNOW MORE ABOUT WORK.

SUPPORTING PEOPLE NOT IN EDUCATION,EMPLOYMENT OR TRAINING TO GET INTOWORK.

SUPPORTING OUR TEAMS TO DEVELOPSKILLS AND GAIN QUALIFICATIONS.

WORKING WITH OUR SUPPLIERS TO HELPTHEM PUT IN PLACE SIMILAR PROGRAMMES

IN THEIR BUSINESS.

WISE helps us to build an accessible

and trained pool of talent which

is urgently needed to deliver

our ambitious growth plans

Andy Harrison, CEO

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Whitbread first launched an apprenticeship pro-

gramme in 2010 and since then has helped 1,101

people achieve an apprenticeship.

Our apprenticeship programme is focused on developing

skilled, confident and competent employees and matching theirskills to the our needs as an employer. We use both on andoff job learning so that, in addition to enhancing a range ofskills and development beyond basic competences, apprenticesdevelop key social and life skills as well as knowledge andskills for key academic subjects, notably Maths and English.

557 TEAM MEMBERS ACHIEVED ANAPPRENTICESHIP IN 2013/14

738 APPRENTICES CURRENTLY IN LEARNING

At Premier Inn we deliver the Hospitality ServicesApprenticeship, where apprentices follow a structuredprogramme with monthly workshops to support theirlearning and help keep them on track. They get to workin two departments combining food and beverage,

reception, housekeeping or kitchen.

Our apprenticeships are unique because they are managed,delivered and assessed in-house, which means they have theintegrity of a college course, but the practical application,structured supervision and contextualised learning of beinghosted in a fast-paced business environment.

We work with our awarding organisation ICQ whooperate a learning management system that enablese-portfolios and remote assessment, providing accurate,reportable and insightful data on apprentice progress.

As part of the apprenticeship programme, we provide afunctional skills programme which is delivered via our partners,Creative Learning Partners. This programme supports learnersto achieve functional skills in English and Maths to both Level1 and 2, depending on the need of the individual and the

requirements of the apprenticeship framework that they areundertaking. The 3-4 month programme is a blend of onlinelearning and face to face support, with each of the delegatesreceiving individual tutoring. At the end of the programme theytake an exam as well as an in-workshop assessment of speakingand listening.

IN 2013/14 154 ENGLISH AND 154 MATHSFUNCTIONAL SKILLS QUALIFICATIONS WEREACHIEVED

CASE STUDYWe believe that everyone has the potential to learn, bemotivated and be inspired to give the best service tocustomers, however difficult their personal circumstancesmay be. Take Naomi Hollens, originally a room attendant

at Premier Inn, Tonbridge, who has not only gained theexpertise, competence and discipline to be an outstandingteam member, but also gained enormously in her personallife. On completion of her Intermediate apprenticeship,Naomi was nominated and won Home Counties RegionalApprentice of the Year in 2014.

Her manager said: Naomi has completely transformedher life, and the lives of her children. She is a completelydifferent person to the timid young single mother who firstbegan working as a room attendant in Premier Inn to earnenough money to pay the bills. She is now an articulate,confident person and a role model for her children. Shereceives countless compliments from guests and the teammembers who have watched from the side-lines as shewent on the apprenticeship journey. A truly inspiring youngwoman and an ambassador for apprentices everywhere.

Naomi herself describes her apprenticeship journey aslife-changing and says I wouldnt change it for theworld, and cant wait to start a new journey. Working withPremier Inn isnt just a job or a little step for me nowits an opportunity to grow and my team members and mymanager have become my family.

Building on the success of the Premier Inn scheme, werelooking at developing apprenticeship programmes for Costaand Whitbreads restaurant brands, as well as launchingapprenticeships for internal support teams including BusinessAdministration, the Contact Centre, Digital and Logistics.

INTERMEDIATE equivalentto 5 GCSEs NVQ Level 2 inHospitality Services

Functional English and Maths,if required. 5 off-site trainingdays. Full buddy support at

site. Training in 2 departmentsover 12 months.

ADVANCED equivalentto A-Level NVQ Level 3 inHospitality Supervision andLeadership

Optional alignment foremployees enrolled on toShooting Stars Bronze Level2 Functional English andMaths if required. 5 off-sitetraining days. Full site support.Specialise in a department.

HIGHER equivalent to thefirst year of a degreeNVQ Level 4 in HospitalityManagement

10 off-site residentialManagement DevelopmentProgramme workshops.Full site support. Offers aroute into Shooting Stars(internal managementdevelopment programme).

APPRENTICESHIPS

34% OF WHITBREAD APPRENTICES GAINPROMOTION WITHIN 15 MONTHS

5% OF APPRENTICES PROGRESS TO MANAGEMENTWITHIN 15 MONTHS

APPRENTICES WHO STARTED IN 2011/12 HAVEINCREASED THEIR EARNINGS BY 10.21% OVER ANATIONAL PAY INCREASE AVERAGE OF 1.5%

Apprentice Kara McCarthy taking a guests order at theBirmingham New Street Premier Inn

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Aimed at 1118 year old students to help them Get toknow about work

Hospitality is a great industry, offering people the opportunityof an exciting and worthwhile career. At Whitbread we want

to reach out to 11-18 years in schools, colleges and universitiesto promote hospitality as a career and inspire the companymanagers of the future.

WORKING WITH BELIEVE IN YOUNG PEOPLEWorking with our partner,the work-experience charityBelieve in Young People,we undertake visits to UKsecondary schools to talkabout the opportunities that

hospitality and Whitbread have to offer. The Believe in YoungPeople programme combines academic and practical skillsdevelopment with in-built careers planning, matching youngpeoples attributes and skills. The programme is integratedinto the school curriculum and provides a combination ofwork-related lesson plans, work experience, careers talks and

apprenticeships. In 2013/14 our site managers visited 294schools, colleges and universities.

In addition to school visits, we have structured 5-10 daywork experience placements for 14-16 year old school pupilswhere they can come into a Costa Coffee or Premier Inn andgain a good understanding of what it is like to work in thoseenvironments. In 2013/14 Believe in Young People matched 155individuals to a structured work experience placement witheither Premier Inn or Costa.

We also offer a 48-week work placement programme for youngpeople studying hospitality related courses at college anduniversity, which enables them to apply their studies in a workenvironment and gain real life transferable skills in the sector.In 2013/14 11 students undertook a 48 week work experienceplacement programme.

To support our Costa and Premier Inn site managers to facil itatea work experience placement, we have developed a tool-kitfor managers which gives them advice on how to make sureit is a valuable, interesting and enjoyable two weeks for theindividual.

Whitbread has worked with Believe in Young People to launchtheir online portal, which is a website and database available toschool and colleges. It enables tracking of all work experienceopportunities and records all feedback on individual students,thereby building up a talent bank for companies to draw upon,and giving the students greater visibility of what companieshave to offer. Focused on the hospitality sector, this is the firstof its kind in the UK and is being extended to more companiesin the sector.

CASE STUDYBethany White is 17 and attends The Green School inLondon, which is working with Believe in Young People.Bethany completed two weeks of work inspiration at thePremier Inn London Hammersmith.

I really enjoyed my work experience placement. Notonly did I get to learn about the operation of the hotel,I also found out about the diverse range of companiesthat Whitbread own, such as Costa Coffee and Beefeater,and the careers available within those companies. Theplacement was really hands-on and after briefing, the teamgave me some key tasks and responsibilities which boostedmy confidence. I really enjoyed working in hospitality. Thepaperwork I had to complete at the end of a working daywas really useful and helped me reflect on the skills I hadlearnt and how I could fit them into everyday life at school,home and in my future career.

Aimed at individuals of all ages who are not ineducation, employment or training to help them Getinto work

We work with a number of partners Job Centre Plus,

Springboard, sector based work academies and The PrincesTrust to provide structured work placements for people whoare out of work and not in education or training. These peopleare often from difficult backgrounds and can be young peoplewith learning difficulties, offenders and ex-offenders, a historyof homelessness, or substance misuse.

WORKING WITH THE PRINCES TRUSTThe Princes Trust refer individuals who arebetween 17-24 years old as potential candidatesto undertake a work placement with Costa orPremier Inn. Costa and Premier Inn then screencandidates before offering a taster day forthem to come in, understand more about thebusiness and be interviewed. The Princes Trustarrange logistics, attendance and transport forthe successful candidates and after ten days of

work ready development provided externally, they are offereda two week placement in Costa or Premier Inn. Each placementis given structured support during their work experience,followed by a guaranteed interview and feedback at the endof the placement. The ultimate goal of this partnership is toemploy successful candidates into the business.

In 2013/14, 45 young people benefited from the Princes TrustGet Into Hospitality programme with Premier Inn and Costa,which ran in Bristol, Glasgow, Manchester and Southampton.24 of the young people supported went on to gain apermanent role with us.

Costa also ran a Princes Trust Get into Coffee programmein Bedfordshire in March/April 2013. 12 young people startedthe programme and of the nine people who completed thecourse, five of them were offered positions in a Costa store.

CASE STUDYLisa McMullan felt life before The Princes Trust programmehad little hope. I had just left prison, been out of work, hadno GCSEs and a criminal record. I didnt think I could everget a job. Lisa had been expelled from school at 14 andfelt lost. As a primary carer for her mother, Lisa had a lot ofresponsibility at home for a young person and this madecompleting school and college courses difficult. When shegot mixed up with the wrong crowd and became involvedin a crime which resulted in her time in prison, Lisa feltthere were no options left for her and lost all confidence.

Finding out about The Princes Trust partnership with Costawas a turning point for Lisa. During the two weeks Lisadeveloped her team work and presentation skills, practised

interviews with volunteers and completed a Level 2 FoodHygiene qualification. Lisa feels that the main benefit wasthe increase in her confidence, I felt confident that I couldactually do something. Lisa was offered a job within aCosta during the second week of her placement. Lisa isstill working at Costa and is now an Assistant Manager.She also continues to support The Princes Trust to inspireother young people to get involved and benefit from theopportunities available to them.

WORK EXPERIENCE WORK PLACEMENTS

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WORKING WITH JOB CENTREPLUSAcross the UK, Premier Inn site managersare working to build effective partnershipswith their local Job Centre Plus in order to

generate a flow of candidates for work placements. In 2013/14we have provided:

265 two week work placements, followed by a guaranteedinterview through our partnership with Job Centre Plusand Springboard. 31% of these have secured permanentemployment with us.

549 individuals attended sector based work academies,whereby individuals attend two weeks in a classroom,learning work readiness skills like communication, team workand health and safety, followed by a work placement in ourorganisation with a guaranteed interview and reference.196 individuals were hired as result.

WHY WORK PLACEMENTS WORK!

INDIVIDUALS CAN

Learn new skills, demonstrate existing skills

Gain practical experience

Improve employability skills such as communication,

team work and reliability

Meet new people and make connections

Increase their readiness for work

Get insight into the world of work

COMPANIES CAN

Access new talent

Be seen as a great place to work

Build a skilled and engaged workforceSupport their local communities

Build and promote a diverse workforce

Save on recruitment costs In 2013/14 we saved

443,146 thanks to the number of people who

joined us in a permanent role following their work

placement.

WERE TARGETING 4,500 WORKPLACEMENTS BY 2017

CASE STUDY

Work placements are also available at the Premier InnCustomer Contact Centre in partnership with Luton JobCentre. Recently, Daniel Wyatt was offered a role as anInbound Reservation Agent as part of a work placementscheme. Daniel was unemployed and looking for workfor four months, which he found heartbreaking. Havingcompleted a two week placement with Premier Inn, he saidI found the training very engaging and great to be part of.I found it a really positive experience which has changedmy perspective for the better. I have now been workingunder the supervision of some great advisers at CentralReservations for the last few weeks and Im thoroughlyenjoying the role. I would definitely recommend thistraining to anyone looking for work and I look forward tothe challenges ahead.

Going to prison was a wake up call for Leon White, who hadbeen unemployed, depressed and drifting aimlessly for threeyears. With support from The Princes Trust, he managed to getback into work, securing a job with Premier Inn

THE BIG HOSPITALITYCONVERSATION

The Big Hospitality Conversation is a joint initiative that wasset up in 2012 between the British Hospitality Association,Springboard and Business in the Community. It brings togetherinfluential industry leaders from top hospitality businessesincluding Premier Inn, Compass, Accor and Marriott, and ischaired by Patrick Dempsey, OBE, who is the Managing Directorfor Whitbread Hotels and Restaurants.

Its aim is to stimulate debate and action on driving employabilityand skills in the hospitality sector so that companies - large,medium and small offer young people more quality workexperiences, more jobs and more apprenticeships.

To date over 35,000 pledges have been made by the membercompanies to provide young people with experience and jobopportunities in the hospitality industry and the aim of The BigHospitality Conversation is to create 60,000 job opportunitiesfor 16-24 year olds by 2016.

Every year a number of regional Big Hospitality Conversationsare hosted across the UK, where business leaders, politiciansand young people gather to talk about the opportunities thatexist in hospitality and what more can be done to help youngpeople gain skills and build careers in hospitality. In September2014 the 20th Big Hospitality Conversation took place atLondons City Hall, supported by the Mayor of London, BorisJohnson.

We have to find new and better ways

to invest in tomorrows talent and

find routes into the industry for

young people

Patrick Dempsey, OBE, MD, Whitbread Hotels & Restaurants

WORK PLACEMENTS

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Shooting Stars is the integral partof Whitbreads talent planningand success process, focused onsupporting the progress of high

potential team members and managers, helping them progress

into their next roles and become future leaders. 80% of all internalroles within Whitbread are expected to be filled through internalprogression and this training programme is designed to developthe managerial skills and behaviours required of world classleaders. Shooting Stars is widely implemented throughout thebusiness and centres on providing a challenging yet supportivelearning environment; one that will stretch team membersthinking and behaviour.

All five Shooting Stars levels are aligned to nationally recognisedqualifications and Whitbread is evolving the programme furtherby offering externally benchmarked and accredited qualifications.

Whitbread Hotels & Restaurants celebrated the success of 584Shooting Stars in 2013/14

CASE STUDY

David Marr is living proof that our Shooting Stars trainingand development programmes are effective, both for thebusiness and for personal development. David startedworking at Premier Inn over seven years ago as a Food andBeverage Manager. Reflecting on his training, David saidI was attracted to Premier Inn because of the developmentopportunities within the organisation. The Shooting Starsprogramme helped me to understand and stretch mymanagement skills, as well as giving me the time in myday job to apply and practise the new techniques I hadlearnt. Shooting Stars Gold was a significant step up andhas really stretched and challenged me. Today my roleis Cluster General Manager and I am responsible for 10hotels in London and Edinburgh. I am in no doubt as to thepositive impact the Shooting Stars Programme has had onmy career.

Costas Shooting Stars programme supports team memberswho have been recognised as having the potential to progress.It supports the development of a Barista Maestro to anAssistant Manager. The course explores leadership behaviours,core business skills, builds on technical skills, and how to coachand lead an engaged team that puts the customer at the heartof a store.

In 2013/14 Costa celebrated the success of 465 Shooting Startrainees.

Costa also runs a Rising Stars programme, which supportsthe development of an Assistant Manager to a Store Managerrole. The course gives a delegate the training to develop thebehaviours to be the best Store Manager possible and buildson the knowledge and understanding of technical skills alreadybuilt as an Assistant Manager.

In 2013/14 163 assistant managers completed the Rising Starsprogramme.

E-LEARNINGWith teams working round the clock, every day of the week,we find that e-learning is an ideal tool for providing consistent,cost effective learning opportunities to everybody. E-learningcan be targeted to a specific group of trainees, is interactive

and engaging, and allows people to learn at their own pace aswell as being great for the environment.

E-learning courses include Security Awareness, Say No toLandfill, Say No to Carbon and mandatory courses on Healthand Safety, Disability Discrimination and Foundation FoodSafety. 500 of these were completed in Polish.

35,000 E-LEARNING COURSESCOMPLETED

MANAGEMENT DEVELOPMENTIn addition to the Shooting Stars programme, Whitbread offersa wide range of internal management development workshops,ranging from legislative training, technical skills, behaviouraltraining and leadership skills. In 2013/14 Premier Inn launcheda new recruitment training programme to give managers theknowledge and skills to recruit new teams to the business,who are a great fit for our culture. Over 2,300 managers weretrained across the UK in 2013/14, with a further 5,800 individualmanagers planning training in the year ahead. Furthermore,Premier Inn and Costa began a new development programmefor high potential senior management in order to stretch themto even bigger roles in the future.

GRADUATESGraduates are viewed as potential future leaders of our businessand Whitbreads thriving future depends on them. Our largestgraduate intake occurs within our Premier Inn brand, where theHotel Operations Leadership Development Programme will see78 graduates employed and developed across the UK who, bythe end of the year-long development programme, will have

accountability for leading a team and running their own site.As a group, Whitbread support centre employs and developsa further 11 graduates within the HR, finance, marketing andproperty teams working across Costa, Premier Inn Corporateand Restaurants.

Whether our graduates are based operationally or within thesupport centre, they are guided and motivated by a buddy, aline manager as well as a mentor, and our graduates are putthrough their paces building on the theoretical knowledgelearnt at university and enhancing it with world class hands-ontraining.

CASE STUDYJonathan Slack is a graduate who has relished the PremierInn graduate programme. He said I believe it is a hugecommitment for a company to promise so much in a short

time frame. Premier Inn have delivered on every promisemade. The graduates have had a great deal of exposure tosenior leaders, giving us a rounded understanding of thebusiness and its vision, and we have had time, training anddevelopment to become the best in our field. This makesme feel valued, reinforcing that this isnt just a 12-monthprogramme, but this is the start of a long successful careerwith Premier Inn.

OUR TRAINING AND DEVELOPMENT PROGRAMMES

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RESTAURANTS FOOD & BEVERAGE

SKILLS ACADEMIESOur Restaurants business has invested more than 1 million since2011, when it established three Food and Beverage Academiesin Hockley Heath, Manchester and Swindon. The pace of trainingthrough-put has gained significant momentum and 6,599 traineeswent through the three establishments during 2013. By the endof 2014 we anticipate having trained a further 7,000 individuals,resulting in over 22,000 chefs, kitchen and restaurant managersbeing trained in three years to meet our customers needs.Courses range from food product information and cooking,through to presentation and customer service, with computersuites and interactive classes teaching delegates about brandactivity and menu information.

CASE STUDYLiam Browning, 24, has worked for Brewers Fayre for two

years. Ive grown to love working for Whitbread and theopportunities they provide us he says. My plan was tostart at the bottom, learn and move up. Liam startedon the bar before moving into the kitchen. After a yearhe was promoted to Kitchen Supervisor, but he is notstopping there. Ive always loved cooking. I always wantedto advance and Ive put myself forward to my GeneralManager for the progression into the Food and BeverageAcademy and hope Ill be successful.

COSTA COFFEE ACADEMIES

Costa has also built its own network of Coffee Academiesaround the country, welcoming thousands of baristas a yearand offering a variety of training courses.

In 2013/14 5,700 team members successfully completedtraining. Costas coffee expertise courses include:

BARISTA MAESTRO2,115 SUCCESSFUL TRAINEES

A one day, interactive workshop followed by completion of askills workbook and project on coffee standards. The workshopprovides delegates with expert coffee knowledge, includingthe coffee journey, extraction theory and how to independentlyrun a successful espresso tasting session. The workshop alsofocuses on training and coaching skills, providing a foundationtheory, understanding and practise for delegates.

COFFEE CHAMPION830 SUCCESSFUL TRAINEES

A one-day practically based workshop held at a Costa trainingacademy, to ensure all techniques are practised. Throughoutthe day delegates get both a theoretical and a practicalunderstanding of the quality of drink required by Costacustomers.

COFFEE AMBASSADOR896 SUCCESSFUL TRAINEES

A one-day workshop to increase the breadth and depth of

coffee knowledge and skills, so that attendees feel confident totalk about and demonstrate Costas brand standards and canact as ambassadors for coffee excellence.

OUR SKILLS ACADEMIES

Restaurant team members attending the Food & Beverage SkillsAcademy at Swindon

Baristas learn how to make the perfect handmade coffee at ourCoffee Academies

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CHANGING LIVES FOR THE BETTER

With over 43,000 team members working across our brands,we have a great opportunity to make lives better throughfundraising for charitable causes.

We are tremendously proud to support our two chosencharities of Great Ormond Street Hospital Childrens Charityand the Costa Foundation. In the past year, our teams havedone a fantastic job raising millions of pounds that will go tohelp and support children in the UK and around the world.

Astrid, a patient at Great Ormond Street Hospital for children

As well as supporting our chosen charities, we know thatmany of our team members have their own charities that theyare passionate about, and we want to recognise and supportthem in their charitable giving and fundraising efforts. To dothat we have two schemes Give & Match and Raise & Match.

GIVE & MATCHWhitbreads Give & Match scheme allows team membersto donate from their gross salary every month to theirchosen charity.

They can donate to any UK charity they support and thescheme is completely voluntary and confidential. Thedonation also receives tax relief at the 20%, 40% or 45%rate as applicable.

The company will then double match each team membersfirst months donation and pay all of their future monthlyadministration fees, which means the charity will receivethe total donation in full every time.

In 2013/14 we had 14% of team members who donated350,143 to charities through Give & Match (payrollgiving).

RAISE & MATCHRaise and Match is a scheme that supports team membersfundraising in their own personal time for charities andgood causes they are personally passionate about.

If they have worked for Whitbread for more than 12 monthsand raise 250 or more, Whitbread will match for up to

a maximum of 750 for an individuals fundraising effortsand 1,500 for group fundraising efforts. The money raisedmust be for a charity or not for profit organisation based inthe UK. We make it very simple for our team members toapply for these funds, and as long as they meet the criteriathey can apply every year within Whitbreads financial year.

In 2013/14 Whitbread team members received matchfunding of 115,069 that benefited 65 charities.


2017 TARGET 2013/14 PERFORMANCE PROGRESS TO DATE

7.5 million raised for Great OrmondStreet Hospital Childrens Charity.

Costa Foundation to educate 50,000children and build 50+ schools in coffee-growing communities.

1.48 million.

1.5 million raised, funding 10 schoolprojects.Over 8,000 additional children ineducation.

3 million.

7 million raised, funding 46 schoolprojects, giving 32,000 children access toeducation in Costa Foundation schools.

Children at Adame Yirgachefe have the opportunity to continuelearning after classes by using the fully stocked library andstudy hall

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In 2012 Whitbread Hotels andRestaurants announced its long-term charitable commitment to GreatOrmond Street Hospital ChildrensCharity. Team members from WHR

voted overwhelmingly to select thecharity as the companys charitypartner and after just one year ofincredible fundraising from teammembers, guests and suppliers, we hadraised over 1 million.

IN 2013 WE PLEDGED TO RAISE 7.5MILLION BY 2017 TO HELP BUILD THEPREMIER INN CLINICAL BUILDING

Great Ormond Street Hospital (GOSH) is the UKs leading centrefor treating seriously ill children. The charity raises money tohelp rebuild and refurbish the hospital, provide vital up-to-date equipment and fund research into pioneering treatments

for children suffering with the rarest, most complex and oftenlife-threatening conditions. All funds raised by WHR will gotowards a new state-of-the-art clinical facility, the Premier InnClinical Building, which is due to open in 2017. The Premier InnClinical Building is part of the hospitals ongoing programmeto redevelop some of its oldest buildings, replacing outdatedwards with world class facilities which will be more spaciousand have room for a parent to sleep by their childs bedside.The building will provide much needed new in-patient wards, anew surgery centre, a respiratory centre and a specialist centrefor children with severe skin conditions and infectious diseases.

The passion and creativity of our site teams has helped raise780,529 in 2013/14, with team members from Premier InnEdinburgh taking a sponsored dip in the freezing cold watersof the Firth; the Portsmouth team organising a triathlon andManchester team members and regional managers taking part in

the Mount Kilimanjaro trek.

Premier Inn team members from Edinburgh at the top of MountKilimanjaro

SUPPLIERS GET ON BOARD

Companies in the WHR supply chain have thoroughly engagedwith the fundraising campaign, raising money and giving giftsin kind to support our appeal. For the past two years the annualsupplier conference and gala dinner has raised funds with asilent auction and raffle, and has been supported by celebritiessuch as Vernon Kay, Jo Brand and impressionist Jon Culshaw.In addition the 2014 annual golf day provided a great opportunityfor suppliers to play a round of golf on a championship course atthe Forest of Arden, which raised 70,000. All this outstandingeffort resulted in 113,208 being generously donated throughsupplier chains during 2013/14.

To date thousands of team members from up and down the UKhave carried out multiple fundraising activities, many of whichhave been hugely ambitious, some of which have been innovativeand others just plain fun. Activities have included triathlons,swim-a-thons, cycle rides and family fun days. Their efforts have

been supported by outstanding contributions from customersand suppliers. With a further 1.48m being raised during 2013/4alone, WHR is delighted that the appeal has raised a total of 3.04million since the partnership was announced.

3 MILLION RAISED SO FAR

THANK YOU! 360,000 DONATED BYPREMIER INN GUESTS WHEN MAKINGA BOOKING ONLINE

At the Charity Golf Day we were fortunate to have a GOSHparent, Katy Beeden, to speak about her daughter, Emma, whoat just age 7 was diagnosed with acute kidney failure. The familyhad to spend over 20 months travelling back and forth to thehospital for treatment, which included dialysis. Emma receiveda kidney transplant at the hospital in 2009 and is doing very wellnow. Katy motivated team members and suppliers enormouslywith her story.

In addition to hearing GOSH patient family members speakat events and conferences, Whitbread have establishedrecognition tours of the hospital for team members who havegone the extra mile with their fundraising. During these tours

they have met hospital staff, patients and family members andhave been inspired further to continue with their fundraising.

ACTIVITY 2013/14

Team fundraising 780,529

Give & Match (Payroll Giving) 13,602

Raise & Match 16,389

Premier Inn Guest Donations 360,000

Suppliers 113,208

Beefeater Kids Menu Donations 27,131Whitbread Contribution MatchFunding

171,553

GREAT ORMOND STREET HOSPITAL

Families, including my own, are so

grateful to Whitbread and all of their

teams who not only raise lots of money

but also awareness around the

country for Great Ormond Street

Katy Beeden, mother of GOSH patient, Emma

The visit made me feel so proud to

fundraise for this great charity. Seeing

the families and their children has made

me feel more determined to raise even

more money. Our support will make

a better work space for the nurses

and doctors and will help make

patients stays as comfortable

as possible

Michala Maughan, The Leeds Bradford Cluster Administrator

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Many coffee growingcommunities are situatedin remote rural areas insome of the worlds mostunderdeveloped and poor

countries. As a consequence, children in coffee growingcommunities frequently have limited or no access to education.At Costa we recognise that the farmers and co-operatives thatgrow coffee are an integral part of our business and success,which is why in 2006/07 we started the Costa Foundation togive something back and support these communities. In 2012Costa set an ambitious goal of aiming to raise 5 million for theCosta Foundation by 2017.

50 SCHOOL PROJECTS BY 2017,PROVIDING 50,000 CHILDREN WITHA SAFE, HIGH QUALITY EDUCATION

The Costa Foundation is committed to building properlyconstructed schools, using high quality materials in order toprovide a safe place for education for generations to come.

Each school delivers the national curriculum of their country, inaddition to life changing social education through after-schoolclubs that offer subjects such as health awareness, includingHIV and Aids education; gender equality; communication andmedia studies; sports and local cultural studies. The benefit ofthis education is shared a lot further than the school gate. In2014, for instance, trustees of the Costa Foundation visitingEthiopia learnt about the evolving and progressive attitudesof the young girls and their families, as result of education,and how the community elders were even adopting modernattitudes and challenging old traditions such as early marriage,giving hope to the next generation.

THE COSTA FOUNDATION AIMS ARE TO

advance education

prevent or relieve povertyadvance health practices and help save lives

advance environmental protection and improvement

FUNDRAISING ACTIVITY

AMOUNT RAISED2013/14

Equity store fundraising 455,862

Franchise store fundraising 65,922

Events 75,682

Give & Match payroll giving 4,047

Sales from Costa products Costa Foundationbiscuits, travel mugs and key rings

665,470

Other customer donations (inc. Gift Aid) 6,665

Whitbread contribution including match

funding and donation from Costa profits

296,300

COSTA FOUNDATION

CASE STUDYTwo new nursery schools in Vietnam. Nursery schools areneeded in Vietnam, as children are no longer allowed accessto formal education unless they can speak Vietnamese. By

providing these facilities for indigenous ethnic communitieswho speak their own local dialect, and by ensuring that thenursery schools have Vietnamese speaking teachers, this workis opening the door for a decent primary school education forhundreds of Vietnamese children. Hoa Hong Nursery School inCu Kuin district has six classrooms, kitchen, admin block anda playground for 180 children aged three to six. The schoolhas been awarded a distinction for the quality of its teachingby the local education authority a mere four weeks after itopened; a remarkable achievement. Da Sar Nursery Schoolin Lac Duong district offers four classrooms, kitchen, adminblock and playground for 150 children also aged three to six.

During 2013/14 more than 1.5million was raised by Costa tosupport The Costa Foundation. More than 600,000 of thiscame from the commitment and fundraising efforts of Costa

team members in stores and support offices. With the supportof customers, business partners, suppliers and of course thehard work of Costa team members, this year the charity hasbeen able to commit to another ten projects in coffee growingcommunities across three continents.

CHILDREN WITH ACCESS TO EDUCATION

JOBS FOR TEACHERS, ASSISTANTS,

ADMINISTRATORS, COOKS AND GENERAL STAFF

COUNTRIES ON THREE CONTINENTS

SCHOOLS WITH NEW COMPUTER SUITES

CLASSROOMS

500

8

13

32,000

46

FUNDRAISING FOR THE COSTAFOUNDATION HAS INSPIRED TEAMSALL OVER THE WORLD

In July 2014, 32 climbers and 15 support team members departedfrom all four corners of the UK and Europe to climb Ben Nevis inScotland, Scafell Pike in England and Mount Snowdon in Wales.The aim was to raise enough money to build at least threeclassrooms in Uganda. Team Equity broke the Costa record for

top to top time by achieving all three mountains in just over 22hours, a brilliant effort from all involved. This years efforts haveraised well-over 20,000.

A team of Costa employees and Costa business/franchisepartners in the Middle East took part in the gruelling Deadto Red 2013 challenge. The team ran 280km in relay from theDead Sea, across the desert to the Red Sea in under 24 hours,raising over 8,000 for the Costa Foundation.

Other fundraising events in the year included the CostaEnterprise Tour of Britain that raised 8,000, while the Costateam at Premier Inn Kings Cross hit upon the novel idea ofselling bricks in return for donations to help build a school.The team dressed up as builders with hi-vis vests, hard hats andwheelbarrows full of bricks and built, with the help of customersand guests, a paper brick wall in the Costa stores front window.Children in remote farming communities in Guatemala continue

to learn about their own cultural heritage, as well as gaining newskills like computer literacy

290

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2013/14 saw Costa launch a UK-wide local community partnershipinitiative encouraging store teams to give support to localcommunity projects and get involved in local causes that matterto their customers. This support can come in the form of givingfunds, space and time. For example, stores will grant access to

the store space out of hours for local community groups; storeteams can volunteer their time within working hours to supportlocal projects and can donate small amounts of funds to localgroups to help facilitate activity.

The initiative in its pilot stage started in September 2013 and hasalready supported over 240 activities up and down the countryand over 1,500 hours have been volunteered by Costa teams.During 2014/15 the programme is building pace and scale, withall company owned sites aiming to participate by the years end.

Case Study Giving Funds

The Costa store in Ripon presented local pre-schoolPuddleducks with 850 towards new outdoor play facilitiesin a surprise awards ceremony, after it was the victim ofa devastating theft. Puddleducks outdoor equipment

was stolen and found dumped and broken in a villagegraveyard earlier this year and, despite fundraising efforts,the pre-school had a shortfall of 150 to replace the stolenequipment. After Costa Ripon Store Manager Adele Buckleheard that the pre-school was missing the 150 required andthat staff and parents were looking to raise an additional700 to update the play area, the team at Costa stepped inand donated the entire 850.

84 STORES DONATING SPACE161 STORES DONATING FUNDS67 STORES DONATING TIME

INTERNATIONAL CASE STUDIES

Dr Clown in Poland

During the festive season of 2013, the Costa team in Polandworked to support hospitalised children through the localcharitable foundation and the work of Dr Clown. By sellingtraditional gingerbread Christmas decorations for thecharity, the Costa team helped Dr Clown visit sick childrenand bring laughter therapy to assist in their recovery.

Employment in India

The Costa business in India has an employment programmeto actively hire team members with different abilities, suchas visual or hearing impairment. Currently 15% of the teamcome from this group and the business aims to increase thisto 20% in the near future.

COSTA SUPPORTS WORK PRO-GRAMMES IN PRISON GIVING TIME

Costas growing Work Inclusion programme during 2013/14

has involved Costa managers working closely with prisons inMilton Keynes and Aylesbury to develop employability skills inprisoners, and the experience required for making superb coffee.The programme, co-ordinated by Milton Keynes college, hasbeen so successful that plans are being laid to roll the modelout with Costa, to support prisoners across England, Wales andScotland.

IN 2013/14 COSTA GAVE 72 HOURSOF TRAINING IN 3 PRISONS, HELPINGMORE THAN 250 PRISONERS

The first session saw Costa managers in early 2013 deliver abasic Barista course in Aylesbury prison. They taught prisonersa range of coffee skills, from the very basics of coffee making tothe more complex creation of a perfect flat white. The prison hasits own coffee machine and prisoners were able to access thisduring lesson times and also while running a coffee shop. Theaim was to up-skill prisoners in time for their release date. MiltonKeynes college then requested another session in Springhillprison for prisoners who were on day release and undergoing afull customer service catering course. Due to the success of thisprogramme, they were invited back again to Springhill, but thistime to the high security prison Grendon.

COSTA CONNECTING WITH LOCALSCHOOLS CREATING OPPORTUNITIESTO LEARN

During 2013/14 a new Costa website specifically for teachers,created by teachers, was launched. www.costaforschools.comhas been developed to provide school teachers in UK secondaryschools with the resources they need to support the deliveryof certain parts of the national curriculum in Geography. It alsohelps Costas team members and coffee experts to connectwith their local schools to create links. Store managers regularlydeliver inspirational talks to their local schools on the work ofcoffee farmers and the journey of the coffee bean, as it makesits way around the world and into cups within households andcoffee shops all over the world.

The www.costaforschools.com website includes informationabout coffee, community and farming, with information fromCosta, Rainforest Alliance and the Costa Foundation. It offersdownloadable resources, giving teachers and students knowledgeand materials to enable more young people to understand theorigins of our day to day commodities and the challenge ofsustainable farming. Currently the website focuses on the deliveryof Key Stage Three Geography, taught in all of the UKs 5,000+

secondary schools. Over time, the material will be added to targetthe teaching resources for primary and sixth form.

COSTA IN LOCAL COMMUNITIES

The prisoners were engaged, right

from the beginning. Its a very exciting

and rewarding experience, going into

the prison and seeing how important

education and re-education is to these

guys. We can give them a little hopeand a chance of something

better on release from prison

Kieron Whiley, Store Manager, Costa Oakgrove Milton Keynes

A community board - Keeping locals informed about theactivities and support that Costa is providing to their community

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WhitbreadCorporate Responsibility Report 2013/14 17WhitbreadCorporate Responsibility Report 2013/14 17

With 22 million customers welcomed every month into our hotels, restaurantsand coffee shops, it is vital that we not only offer them an excellent experience,but that we also ensure they are buying goods and services they can trust andthat we offer them a great choice of food and drink, which includes healthiereating options.

CUSTOMER WELLBEING

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RESPONSIBLE SOURCING

AS A BUSINESS WE HAVE SETAMBITIOUS GROWTH, MILESTONES.TO ACHIEVE THIS GROWTH WE NEEDA HEALTHY AND BUOYANT SUPPLYCHAIN THAT CAN GROW WITH US

That means working with suppliers who can meet the qualityand quantity of product we require. Crucially, it also means thatwe only want to work with suppliers who share our values andsource their products responsibly according to the standards weset, which include upholding human rights, food safety, ethicalsourcing and animal welfare legislation, supply chain security tominimise food fraud and not polluting the environment.

To instill these practices throughout all stages of our supplychain, we have been working closely with our suppliers toestablish a responsible sourcing strategy. As part of thisprocess we conducted a sustainably-focused risk assessmentof our supply chain and identified ten priority areas at specificproduct category levels.

Working collaboratively with NGOs, trade bodies and our ownsuppliers, we have developed policy documents for each of theten product areas, which are:

In todays world, supply chains can be long, global and complex.To navigate in such a landscape requires a clear vision, afocused strategy and a collaborative approach. Only by workingtogether can we tackle the highly complex sustainability andresourcing challenges that we face as a large multinationalbusiness and achieve mutually beneficial outcomes for us, oursuppliers and our customers.

At Whitbread we source over 1,000 individual product lines fromnearly 200 suppliers around the world and our customers needto be confident that the people who produce and make theseproducts are well treated and work safely, without damagingthe environment around them.

As the UKs largest coffee shop chain and with over 1,100 storesacross 30 countries overseas, we sell 420 million cups of coffeea year around the world.

Costa has worked with the Rainforest Alliancesince 2008 and today 100% of the coffee beanssourced for all our drinks come from RainforestAlliance certified farms. This includes coffeebeans for Costas at home range of roast and

ground and Tassimo products and TwiningsEveryday Tea that is served in our UK stores.

Since March 2014 Costa hot chocolate, our biggest sellingchocolate based drink, has used 100% Rainforest Alliancecocoa powder, making Costa the first coffee shop brand tohave coffee, tea and hot chocolate from Rainforest Alliancecertified sources. Our new premium chocolate drink, Belgianhot chocolate, which was launched in March 2014, is suppliedby Barry Callebaut, the worlds largest supplier of Belgianchocolate, and is sustainably sourced from cocoa farmer co-operatives in West Africa.

Its not easy but making responsible

sourcing an integral part of your

business model can be a great source

of competitive advantage and the

risks of not so doing can be

potentially disastrous to a

companys reputation

Simon Ewins, Director of CSR, Whitbread Hotels & Restaurants All our coffee and tea is Rainforest Alliance certified

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Timber is at the heart of many properties that webuild and operate. Our new Premier Inn hotels andrestaurants regularly utilise timber frames in theirdesign and construction and we source manythousands of items of wood-based furniture forour Costa coffee shops.

We are committed to promoting the sustainabilityof forests and responsible sourcing of natural resources whilstcomplying with national and local legislation relating tosourcing practices. We welcome the enforcement of the EUTimber Regulations and consider the FSC (Forest StewardshipCouncil) and PEFC to be the most comprehensive and widelyrecognised and accepted forest products certification systemsglobally. In April 2014 we announced our commitment to onlyuse the products and services of Structural Timber Associationmembers in all future timber-based projects, which ensurematerials and services of the highest quality, are certified toFSC and PEFC standards and are priced competitively.

Costa uses around 300 million takeaway paper cups a year.These all come from card made of PEFC sustainable wood pulpfrom forests in Northern Europe. The thermal cover is made ofrecycled content and the lid is 100% recyclable.

Palm oil production poses significant social andenvironmental risks, including land conversionleading to loss of biodiversity, and carbon dioxidegeneration. It is also a highly complex supplychain, where supply is often intermingled at everystage of production, making it difficult to traceand influence the conditions under which 100% ofpalm oil supply is sourced.

Although all our restaurants kitchens now use rapeseed oilfor cooking, we remain consumers of palm oil, as it is includedin many of the products we source. Were committed tocontinually increasing the amount of sustainable palm oil in oursupply base and using an independently verified internationalmulti stakeholder certification process (RSPO) to assureprocurement of the most sustainable materials. In the past yearwe have been working with AAK (one of the worlds largestvegetable oil manufacturers) to build a sustainable Palm Oil

Policy. This collaborative approach is to ensure that our PalmOil Policy is both realistic and achievable for our suppliers toadhere to.

World fish stock and marine habitats areincreasingly vulnerable due to an increase infishing and in particular, the use of irresponsibleand unsustainable fishing methods. Were workingalongside our suppliers to ensure that all fish andseafood in our supply chain is sourced sustainably,using responsible fishing methods that ensuremarine ecosystems, and that healthy populationlevels of targeted species are protected in orderto safeguard future fish and seafood supplies.

On our menus we have both wild-caught and farmed fish,which are certified by different organisations. Therefore we are

committed to supporting and giving preference to wild-caughtfish and seafood, certified against the MSC Chain of Custodyand Line and Pole standards in our hotels and restaurantsand Costa respectively. For farmed fish and seafood we givepreference to product that is certified against GlobalGAPstandards. Unfortunately, certifying against GlobalGAPstandard is not always possible and therefore for farmed fishthere are a number of certification bodies to which our suppliersand producers comply. These are ThaiGap, Alaska SeafoodCertification and the standards of the Aquaculture StewardshipCouncil, all of whom require responsible aquaculture farmingpractices at all times.

At Whitbread we have undertaken a number ofmeasures to ensure our customers can have theutmost confidence in the integrity of our meatproducts. This includes imposing an industry-leading set of quality control standards on oursuppliers, which means we can trace the origin of allour meat products. We also conduct rigorous andregular independent testing of our products and, asa result, have one of the strictest testing regimes inthe industry.

We require that all our suppliers comply with animal welfarelegislation as a minimum requirement and they are expected tosource their products from farms that uphold the principles ofthe RSPCAs Five Freedoms to ensure the health and welfare ofanimals throughout our supply chain.

At Costa all meat is sourced from British farms, unless specificingredients are sourced for their provenance

In the UK Costa uses Red Tractor assured sugarfor its sugar sachets. The Red Tractor assuranceensures that the sugar is from UK grown Britishsugar beet and travels minimum miles from fieldto factory. It also guarantees that it is producedby UK farms that meet production standards

on safety, hygiene, animal welfare and theenvironment.

Cotton represents nearly half the fibre usedto make clothing, linen and textiles worldwideand 75% of the worlds production comes fromdeveloping countries in Asia and Africa. Withmassive quantities of water and chemicalsneeded for cotton production, it is importantthat the cotton used within our supply chain isethically and sustainably sourced. Working withkey expert organisations such as the BetterCotton Initiative (BCI), we are ensuring that ourResponsible Sourcing and Sustainable Cottonpolicies reflect industry best practice and that oursuppliers comply with them at all times.

Soya milk, as an alternative to cows milk, is animportant part of our Costa business and weredetermined that we can not only source soy inline with our Responsible Sourcing Policies, butthat we also dont need to compromise on thetaste and quality of the product. Were workinghard with our soy suppliers to understand thejourney soy takes from the field all the way intothe delicious drinks our customers know and lovewithin Costa.

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MENU DEVELOPMENT

AS A RESPONSIBLE COMPANY, WE AIM

TO SERVE SAFE, GOOD QUALITY AND

SUSTAINABLY SOURCED FOOD AND

DRINK. WE WANT TO MAKE IT EASY FOR

OUR CUSTOMERS TO CHOOSE HEALTHIER

EATING OPTIONS, AS WELL AS INDULGING

IN THE OCCASIONAL TREAT

All our brands are working to improve the nutritional profileof the food and drink they serve. This includes reducing salt,total and saturated fat, sugar and added sugar content wherethey can, without impacting on product safety and quality, andbalancing this with customers desire for an indulgent treat. Allmenus are free from artificial transfats, MSG, GM products andingredients, irradiated ingredients and mechanically-recoveredmeat. As a signatory to the Governments Responsibility Dealon Public Health, we continue to work towards meeting targetsfor salt and saturated fat reduction, calorie reduction, removalof transfats and alcohol awareness.

The Costa food development team have reduced the calorieand sugar content of their Ice Cold Costa drinks range with 150kcals less in Creamy Coolers and a new range of low-sugar IcedLemonades

NUTRITIONAL INFORMATION

Customers increasingly want to know the nutritional content ofthe food and drink they are consuming and Costa was the firstUK coffee shop to launch nutritional labelling (including allergeninformation) on all its food, either on the price card for sweetfood, or on the packaging and shelf edge labels when wrapped. InPremier Inn and Restaurants, all nutritional information, includingallergen information, is available to customers on the brandwebsites.

Costa offers a choice of gluten-free products in both savoury andsweet food ranges, including their Gluten-Free Christmas Cake,which have been approved by the Coeliac Society UK. A numberof gluten-free products have been introduced into Premier Innrestaurants, including sauces and bread.

Restaurants are actively working on making childrens mealshealthier. We have increased fresh vegetables across all menus,reduced the number of fried dishes, hidden vegetables in theSpaghetti Bolognese and Cottage Pie dishes, whilst their 100%beef burger has no added fillers, preservatives or salt

In September 2014 the Sustainable RestaurantAssociation, working in partnership with Costa,launched a pioneering new ratings scheme tosupport and guide the UKs more than 10,000cafes on their sustainability journey. This newrating for cafes considers not only the coffeethat is served, but also a cafes entire operations

in reducing their environmental impact, treatingtheir staff fairly and supporting their localcommunity.

As more people are diagnosed with

coeliac disease, which will require

them to follow a strict gluten-free

diet for life, the demand for gluten-

free products will continue to

increase. We are very pleased

to see that Costa has responded

to the challenge of this growing

market with the launch of this

new gluten-free wrap

Sarah Sleet, CEO of Ceoliac Society UK

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The first UK hospitality company to receive the prestigious Carbon Trust TripleAward for significant achievements in carbon, water and waste reduction yearafter year.

ENERGY & ENVIRONMENT

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WHITBREAD IS COMMITTED TO LEADING THE UK HOSPITALITY SECTORIN THE TRANSITION TO A LOW CARBON ECONOMY AND TO INCREASINGINVESTMENT IN PROVEN GREEN TECHNOLOGIES

IN 2013/14 WE INVESTED OVER 4 MILLION IN ENERGY SAVING INITIATIVESTHAT HAVE SAVED OVER 1.3 MILLION, 10 MILLION KWH OF ENERGY AND5500 TONNES OF CARBON

2017 TARGETS 2013/14 PERFORMANCE PROGRESS TO DATE

25% reduction in carbon emissions by2017 and 10% carbon reduction in our

supply chain.

Reduce water consumption by 25%.

Zero waste to landfill.

Relative to sales, carbon emissionefficiency has improved by 10.3% pts

year on year whilst opening 3,540new bedrooms, 114 coffee shops and8 restaurants. We now stand at a 32.8%reduction in carbon intensity from our2009 baseline and have hit our targetthree years early.

We have achieved a 7.7% reduction inwater use year on year, relative to sales.We have reduced water usage by 28.2%from our 2009 baseline, which puts uswell on track to meet our target by 2017.

94.6% of waste from all our hotels andrestaurants diverted from landfill. 67% ofwaste from Costa.

We are reviewing our medium termenvironment strategy in view of

this success and will develop newprogrammes and targets for releasein 2015.

We are developing the next phase of ourwater reduction strategy and will launchnew targets in 2015.

We are developing a new waste strategyand targets for release in 2015.

Whitbread are leading the way

on carbon reduction initiatives

in the industry

Peter Charlsworth, Carbon Statement

ENERGY

Energy keeps our hotels, restaurants and coffee shopsrunning. Our job is to make sure that we make our businessas energy efficient as possible and mitigate energy wasteby using less power and fuel to achieve the same result. Wepurchase energy at lowest term cost with assured continuoussupply and buy a proportion of electricity from renewablesources. We are increasing this year on year. Our target by

2017 is to reduce the energy consumption of our buildingsand sites by 70% over 2009 baseline. We have alreadydoubled the amount of renewable energy purchased to 32%of all the energy we buy, reducing Whitbreads dependencyon fossil fuel generated electricity.

BUILDING SUSTAINABLY

At Whitbread we are committed to making sure that wegrow responsibly and everything we build is to the highestsustainable standards. This means: We continue to invest in refurbishing or retrofitting our

existing estate with energy efficient equipment and buildingmaterials.

We have the monitoring and measurement in place to gauge

our use of carbon intensive energies. We set and achieve challenging energy and carbon targets

across our estate. We engage our teams along the way to make a difference.

CARBON IN OUR SUPPLY CHAIN

We have a target to reduce carbon in our supply chain by10% by 2017 and we want to work closely with our suppliersto achieve even more energy efficiency to leverage commerialsavings and minimise environmental impacts. To do that, wehave started a project using a credit360 system that centralisesa way to collate, manage and report on the sustainabilityperformance of our suppliers. This will give us a baseline of thecarbon footprint in our supply chains and help our suppliers

to reduce carbon within their operations. Next steps will beto deliver a set of tools and workshops to enable suppliers toreduce carbon within their operations by looking at monitoringand measuring energy efficiency.

BUILDING A SUSTAINABLE FUTURE

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R&D GREEN HOTELS

In 2012 we built and opened the Premier Inn Barry in Glamorganwhich was awarded the BREEAM Excellent rating, making it one

of the greenest and most energy efficient sites in South Wales.

In 2010 we opened two of the UKs most green budgetPremier Inn hotels The Tamworth Premier Inn in Staffordshireand Burgess Hill Premier Inn and joint site Acorn Beefeaterrestaurant in West Sussex. These set a first for the lowestpossible CO2 and water footprint of a standard hotel andrestaurant and have set a benchmark in the industry forsustainable new build. On average, the two hotels usebetween 40% less energy and water than Premier Inns ofa similar size.

Premier Inn Burgess Hill was the UKs first green budget hotel

Since 2010 we have opened 20 new pilot low carbon hotels andrestaurants and continue to innovate in terms of sustainablehotel design and construction.

These R&D green hotels are helping us to set new targetsand sustainability measures for all our new build hotels andrestaurants, which aim to have:

Timber frame construction using sustainably sourced wood Grey/rain water recovery Sealed low U value windows with mechanical vents Gravity recharging lifts Key-cards in all rooms Bird and bat boxes at every site Self build to BREEAM Very Good standard

In November 2014 we open our first hub by Premier Inn hotel inSt. Martins Lane, London, which will use 30% less energy thancurrent building regulation and have a 100% renewable energysupply

RETROFITTING OUR EXISTING ESTATE

Were also taking the learnings from our new builds to applyacross our existing estate of 670+ Premier Inns and 400

restaurants. We renew and refurbish our buildings on a regularbasis, which provides us with a significant opportunity put inplace cost effective and innovative technologies, both big andsmall, to reduce carbon emissions and save energy.

Our existing estate contributes over 200,000 tonnes of CO2a year. Since 2010 we have spent over 20 million on energyefficiency projects across our entire portfolio.

By installing super high insulation across ourproperty estate, were saving around 20% per site

on gas usage and reducing heat loss by up to 20%.

When it comes to lights, weve replaced 80,000energy-inefficient light bulbs with LED lamps,

saving over 1.5m and 7,000 tonnes of CO2.

The following sites have been rated BREEAMexcellent: Tamworth, Staffordshire BurgessHill, West Sussex Barry, South Wales Edmonton London City, Aldgate.

The following sites have been rated BREEAM very good: Exeter Honiton Rd Paignton Weston-Super-Mare BristolLewins Mead Wrexham Wigan Perth Harrogate LondonLeicester Sq Stansted Airport London Blackfriars Solihull London Waterloo Ipswich Dorchester Aberdeen Airport Birmingham Exchange Buildings Fleet Waterfront Woking

Their work in Bodmin and across

the country to make sure that their

businesses are as resource efficient

as possible is a fantastic example

of what other companies can do

to improve their environmental

performance

Dan Rogerson, Environment Minister and North Cornwall MP

CARBON IN WHITBREAD HOTELS & RESTAURANTS

We are testing the UK industrys first Gamma fuel celltechnology boiler to preheat hot water supply at our PIGlastonbury hotel whilst generating on site electricity

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Handling over 41 million cases per year, our fleet of Keune &Nagel vehicles are kept busy and in 2013 they travelled around13 million miles.

Working with our outsourced logistics providers, Kuehne

+ Nagel (food and consumables), Tradeteam (who deliverdrinks to our restaurants) and Howard Tenens (for CostaExpress machines), we are actively reducing the CO2emissionsassociated with the fleet in a number of ways.

Weve invested in double decked trailers, meaning that we cancarry more stock in any one journey and weve purchased 16dual fuel vehicles for our Kuehne + Nagel fleet. These use ablend of liquefied natural gas (LNG) and bio methane 60/63%of the time and traditional diesel only 37/40% of the time. Weexpect to save around 16-20% of the CO2emissions per vehicle.Were continually looking at ways to innovate and are pilotingour first fully electric vehicle in London.

We use a telematics system to record the environmentalperformance of every driver. This monitors and scores thedriver in terms of harsh braking, excessive acceleration andidling, use of cruise control and vehicle over revving. This isthen fed back to each driver at the end of their shift and isdemonstrably changing driving styles.

A new Manchester-based 165,000 sq.ft warehousing centrewill service the north of the UK, while existing operations atWellingborough will service the south. This better infrastructureremoves most of the bulk trunk vehicle journeys between thenorth and south, which equals reduced transport costs and lessenvironmental impact.

Costa Expresss partner, Howard Tenens, runs 85% of their fleeton dual fuel, helping deliver significant carbon savings. Theyhave three national grid connected refuelling stations, as well asa stand-alone bio methane tank at Andover. The bio-methaneis produced by a miniature anaerobic digestion plant, which

uses organic waste from Howard Tenens customers, includingCosta. This gas is then captured, cleansed and used to run thevehicles.

THE LATEST SLIPSTREAM BODY DESIGN

DELIVERS MORE THAN 5% FUEL SAVINGS

LOGISTICS ENCOURAGING OUR TEAMS TOHELP SAVE WASTE, WATERAND ENERGY

If we are going to meet our ambitious targets to reduce theamount of carbon, water and waste in our business then weneed our 43,000 team members to help. After all, lots of little

actions can make a big difference. Weve been investing intraining and educating our teams to to reduce carbon, waterand waste and every site receives its own energy managementreport so they can better monitor, measure and control theenergy they use.

Our Good Together Environmental Pack is issued to everymanagement team. It is a fun, interactive toolkit, packed withcards and stickers that give jargon-free information about eachenvironmental aspect of our business and hints and tips abouthow to reduce energy impacts.

TURNING THE LIGHTS OFF IN UNOCCUPIED

ROOMS CAN SAVE A HOTEL 350 A YEAR

Every Costa store has fridge magnets with top tips for savingenergy and technical teams are always on hand with energyefficiency advice. Costa has also created The Good Guide,which aims to help teams understand the importance of goodenergy, water and waste management. Last year, the guide anda supporting training programme was trialled in 40 sites. Thetrial proved positive, with proven reductions in energy usageand we are now looking at rolling out the programme to therest of the estate in 2014/15.

Our hotels and restaurants use fun, interactive 80s style computergames to encourage simple behavioural change and get teamsinterested and engaged in how to save energy. Response to theSwitch it Off Street and Carbon Space Invaders games hasbeen tremendous over 4,000 team members played CarbonSpace Invaders in the first week alone!

OVER 25% OF WHR TEAM MEMBERS HAVE

COMPLETED THE NEW ENVIRONMENTAL

SAY NO TO CARBON AND SAY NO TO

LANDFILL ONLINE TRAINING MODULES

Mandatory online learning modules delivered via WHRsAcademy e-learning platform focus on multi-stream wasterecycling systems and also general environmental awareness.

Through our Good Together

programmes were doing

more by using less

Chris George, Head of Energy & Environment,

Whitbread Hotels and Restaurants

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LAST YEAR WE PRODUCED AND SOLD15 MILLION PREMIER INN ROOMS,47 MILLION MEALS, 400 MILLIONCUPS OF COFFEE THATS A LOT OFFOOD, DRINK AND CONSUMABLESTHAT WILL GET THROWN AWAY.

Managing what we produce and what we use that becomes waste

is important to our customers, our teams and the environment

and we are committed to minimising waste and recycling

wherever possible. Whats more, there is a commercial benefit

as it also means we can reduce operational costs from annual

rises in landfill tax.

Working with our partners, Veolia Environmental Services,in just five years weve made a tremendous improvement toour waste and recycling efforts. In 2013/14 we succeeded indiverting 94.6% of waste from all hotels and restaurants. InCosta we achieved 67% and the Costa Roastery diverted 100%of the waste it produced from landfill.

WERE SAVING AROUND 40,000EVERY MONTH IN LANDFILL TAXES BYDIVERTING WASTE FROM LANDFILL

We use a four stream waste collection service in our hotelsand restaurants. Using colour coded bins, our teams segregateall waste into four areas mixed recycling, food waste, glassand general waste.To date, on average 78% of the bins in theWHR estate are dedicated to mixed recycling, food waste andglass, whilst 22% are for general waste. All the food waste weproduce in our restaurants is diverted from landfill and sent foranaerobic digestion.

In Costa UK we directly manage less than half of the wasteproduced from the entire store estate. This is because for manyof our Costa stores, the choice of waste management contractoris the responsibility of the local authority or shopping centrelandlord where the store is situated. In Costa we have a twostream system which ensures that stores segregate their organic

waste (including coffee grounds), which is then transported todesignated collection sites, where it is collected for processingas a biomass fuel source. Once the organic waste has beenremoved from the store, all other dry waste goes into mixedrecycling which consists of paper, card, plastic and cans.

WASTE

The underlay in our Premier Inn carpets comes

from recycled Costa coffee bean hessian sacks.

Costas recyclable cup is double lined, stopping

the habit of double cupping and reducing paper

cup usage by 10%.

In restaurants we recycled over 800,000 litres of

used cooking oil.

When Costa introduced a new uniform in 2013, werecycled all of the old uniforms into materials such

as industrial cloths and car door insulation, saving

9 tonnes of uniform from going to landfill.

Last year we launched new Forest Stewardship

Council certified packaging for our food in Costa,

which has saved over 18 tonnes of paper annually.

In 2013 we were awarded the Carbon TrustStandard for Waste Management for ourrobust approach to waste measurement andmanagement and annual reductions.

LAST YEAR WE PRODUCED AND SOLD15 MILLION PREMIER INN ROOMS, 47MILLION MEALS AND 400 MILLIONCUPS OF COFFEE THATS A LOTOF FOOD, DRINK AND CONSUMABLESTHAT WILL GET THROWN AWAY.

WERE SAVING AROUND 40,000EVERY MONTH IN LANDFILL TAXES BYDIVERTING WASTE FROM LANDFILL

Colour coded bins help our teams to separate waste

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We were one of only eight global businesses to be awarded theCarbon Trust Standard Water certification for demonstrating aclear commitment to delivering water savings and promoting waterconservation in the way we measure, manage and reduce water use.

We use water in all aspects of the day-to-day running ofour hotels, restaurants and coffee stores, from washing

vegetables, bed linen and towels, to providing our guests withpower showers, warming tall Costa latte glasses and roastingour coffee at the Costa Roastery in Lambeth. We look at allopportunities to safely reduce water consumption by changinghow we think about it, use it and eliminate water waste.

As we open new hotels, restaurants and coffee shops andretrofit existing ones, we implement a number of water savinginitiatives and technologies to ensure that we monitor andmanage our water usage as best as we can. These includerainwater harvesting, which captures and filters rainwater anduses it for non-potable applications, and greywater systemsthat use recycled shower and bathwater to flush toilets.

Premier Inn is establishing a presence in the Middle Eastand India and as we build the new hotels, were addressingspecific geographic and environmental impacts on the localenvironments. The Premier Inn Abu Dhabi International Airportopened in 2013 and is the first hotel to use greywater harvestingin the region

WEVE INTRODUCED MORE WATER

EFFICIENT TAPS AND SHOWERHEADS

ACROSS OUR BUSINESS

In Costa, new sensor taps are fitted with an electromechanicallyoperated solenoid valve to prevent continuous leaks and thetap water is aerated. These measures result in 65% savings onthe previous tap. Whilst in Whitbread Hotels and Restaurants,low flow water efficient model taps save on average five litres aminute and showe

whitbread corporate responsibility report 2014

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