Sustainable development at Accor

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1 Sustainable development Department June 2010 TOURISM AS A FACTOR IN SUSTAINABLE GREEN GROWTH? Sustainable development at Accor WORKSHOP ON SUSTAINABLE DEVELOPMENT STRATEGIES AND TOURISM FRIDAY, 18 JUNE 2010 OCDE CONFERENCE

2 Accor in brief Accor, a major global group and the European leader in hotels, as well as the global leader in services to corporate clients and public institutions, operates in nearly 100 countries with 150,000 employees. It offers to its clients over 40 years of expertise in two core businesses: Hotels, with the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis, all seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Lenôtre; Services, with 32 million people in 40 countries benefiting from Accor Services products in employee and public benefits, rewards and motivation, and expense management.

3 The Earth Guest program At the heart of Accor s sustainable development strategy: the Earth Guest program The Earth Guest program federates Accor s actions on social and environmental responsibility A visual identity and a motto: 8 priorities divided into 2 projects EGO Local development Energy ECO Child protection Water Fight against epidemics Waste Balanced food Biodiversity

4 FOCUS EARTH GUEST DAY RESPONSABILITY LOCAL DEVELOPMENT ENERGY SAVINGS BIODIVERSITY TOOLS ACT HIV BIODIVERSITY: MY HOTEL IN ACTION CLIENTS CERTIFICATION EARTH GUEST DISCOVERY PLANT FOR THE PLANET

5 Earth Guest day The Earth Guest program A mobilization day for sustainable development Every April 22 (World Earth day) Local and collective actions carried out by employees Around the 8 priorities of the Earth Guest program In 2009: 77 countries took part

6 Local Development The Earth Guest program At stake 1 billion people live below the world poverty line - 1$ per day 75 % of them live in the countryside on their sole agricultural income 1 adult out of 5 is illiterate objectives Support to local partnerships in new countries Continue to support fair trade initiatives in new countries, within Hospitality and Services Where we are Several long term partnerships with associations 17 countries serve fair trade products Our achievements in 2009 Support to the fight against poverty by promoting the creation of micro farms with Agrisud in Cambodia since 2004 Fair trade: - products in hotels in 17 countries (tea, coffee, cocoa, wine or sugar) tons of products bought in France in 2009 (+8% vs 2008) - In France: Accor is the 1st buyer, hypermarkets and supermarkets aside - Accor Services: affiliation of fair trade food shops in gift vouchers network in Austria and Spain

7 Energy The Earth Guest program At stake The world s total primary energy supply has doubled in 35 years. Greenhouse effect: the temperature rise will be between 1.4 and 5.8 C in the 21st century. In 2008, Accor consumed 4.8 million MWh: - A consumption equivalent to that of Rotterdam - A night in one of the group s room emits an average of 12 kg of CO2, the equivalent of a 100 km trip in car objectives 10% reduction of energy consumption per room in owned and leased hotels 100% of owned and leased hotels equipped with low consumption bulbs 200 hotels equipped with solar panels Where we are - 7.8% energy consumption per room in owned and leased hotels versus % of owned and leased hotels equipped with low consumption bulbs 99 hotels equipped with solar panels to produce domestic hot water Our achievements in 2009 Integration of energy issues from construction: - Opening of Etap Hotel Toulouse Aéroport, which has been designed to be three times more energy efficient than current heating regulations require. - Opening of Pullman Sydney in Australia, which consumes 40% less energy than a conventional hotel. - Suitehotel Issy les Moulineaux (opening in 2011) will be HQE certified (High Environmental Quality) - Ibis China: environmental analysis of the building process and possible improvements Launch of the 2009 Energy savings mission in 5 objectives

8 Biodiversity The Earth Guest program At stake 25% of mammals, 11% of birds, 20% of fish, 13% of plants are threatened by extinction. Biodiversity erosion observed over the past 50 years has never been equaled by natural phenomena objectives All hotels to take part in environmental-protection or tree-planting initiatives. 10 Accor Services units take part in environmentalprotection or tree-planting initiatives. Where we are 77% of hotels take part in environmentalprotection or tree-planting initiatives. Our achievements in 2009 Organic food hotels offer products coming from organic agriculture - Novotel Australia: organic products in all breakfast buffets Partnerships - France: between Etap Hotel and Bird Protection League since 2006, to raise guests and employees awareness of biodiversity protection. - Togo and Senegal: partnership with the associationocéanium Dakar to take endangered fish species out of the menus - Italy: partnership Mercure/Slow Food to raise guest awareness on terroir, cultural and natural diversity; Argentina: vegetal wall at Novotel Buenos Aires

9 Sustainable development at Accor Implementation tools

10 ACT-HIV Tools A turnkey tool for hotels and services managers International operational tool to implement within the hotel to fight against HIV/AIDS Pragmatic approach that can be adapted depending on the countries (economical, political and cultural background) to be as efficient as possible A 6-step action plan 1. Work together with local partners (associations, NGOs, International organizations) ; 2. Bring together, motivate employees ; 3. Inform to know the disease ; 2010 objective Deployment of ACT-HIV in all hotels and Accor Services business units 4. Prevent, bring awareness, propose condoms and detect ; 5. Accompany; 6. Consolidate Where we are Roll-out in progress Our achievements Presentation of the tool to HR committees to implement the approach : South America, New-Zealand and Fiji, France, Belgium, Luxembourg, Germany, the Caribbean, Vietnam Translation of ACT-HIV in Chinese and Thai ACT-HIV was awarded the 2008 Grand Prix Axa Santé

11 Biodiversity: My hotel in action Tools A practical guide made with the IUCN Objective: make it easier for hoteliers to protect biodiversity - Creation of an internal working group made of operational and support team members - Many concrete actions written from Accor hotel managers experiences - Booklet financed by Accor and the French Ministries of Sustainable development and of Foreign Affairs A content that gives answers on many issues Presentation of biodiversity: definition, usefulness, impacts of a hotel What actions can be implemented? In the restaurant, decoration, green spaces, skincare and spa products, gift shops and in the destination where the hotel is located. Technical fact sheets made by TRAFFIC, an intelligence network on the sales of natural species: fish, timber, plants, Where we are October 2008: issue of the guide and start of internal diffusion Our achievements October 2008: launch of the guide during the IUCN s World Conservation Congress

12 Sustainable development at Accor Communication to clients

13 Certifications Transversal projects At stake More than 130,000 sites in 140 countries are ISO certified. Accor s action To reinforce and give more credibility to its environmental approach, Accor has led its brands into international certification programs validated by external auditors objective Obtain environmental certification in 20% of Accor establishments. Where we are Almost 10% of establishments have obtained sustainable development certification. Our achievements in 2009 ISO ibis hotels certified in 17 countries - 14 CWL sites certified in Europe - 8 Thalassa sea & spa sites - Accor Services France, UK and Netherlands head offices certified - Lenôtre: certification of the Pré Catelan restaurant Green Globe - 50 Novotel hotels certified and 80 other are preparing for certification in 22 countries Green Key Eco-Rating Program - All Canada hotels are certified

14 Responsible travel Transversal actions At stake Thousands of companies implement their sustainable development policy in more and more comprehensive way that also includes their travel policy. Accor s action In order to spread sustainable development principles among our customers (especially the business ones) and to meet the growing demand, Accor is working on its travels offer. Where we are Earth Guest Discovery program (responsible incentive), in process in 10 hotels Some pilot hotels on carbon report and offset display Our achievement Earth Guest discovery, Accor s responsible incentive travel offer: - Activity that allows the discovery of local cultures and economies, of heritage beauty and surrounding nature : 8 hotels integrate the program Carbon report and offset - Novotel London West (UK) and Mercure hotels in Australia offer GHG emission offset through the financing of projects that promote renewable energy production and reforestation programs.

15 Plant for the Planet in hospitality Plant for the Planet Accor invents a new concept: «Here, YOUR towels plant trees!» For each 5 reused towels, Accor plants 1 tree in the region Reusing towels becomes more motivating A transparent and satisfying project for the guest A concrete and federating project for the staff Accor acts to make it work Plant for the Planet is rolled out in the Group s 4,000 hotels, beginning end of 2008 Training sessions for teams are organized (short movie, role-plays )

16 The reforestation projects Plant for the Planet Planting will begin in 2009 The 7 projects have been chosen were chosen for their capacity to carry out planting action while developing local economic activity. Kinomé, a company dedicated to protecting and restoring the world s forests, will assess the follow-up, quality and progress of the projects, thanks to audits on the filed, in link with the NGOs. Romania: Partner with schools to plant trees in Transylvania USA: Replant trees in burnt forests and raise the awareness of school children to the protection of the forest Indonesia: Plant trees in the region of Glandang and contribute to the employment and education of local populations Brazil: Afforest the banks of the São Francisco River, raise the awareness of the local population to the preservation of its environment and develop beekeeping Senegal: Plant trees to combat desertification and develop local agricultural activity Thailand: Afforest the natural park of Khao Yai, open a locally managed tree nursery and an environmental education centre Australia: Afforest the banks of the Hawkesbury Nepean River, maintain local jobs