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Table Of

Contents
1 Introducing This Report
3 Messages From Senior Leaders
From Executive Chairman
From CEO
6 Snapshot Of 2014
8 Langham Hospitality Group
About Us
Our Vision And Values
11 Feature: Engaging Our Stakeholders
Approach
Stakeholders And Us
Future Steps
19 Caring For Our Guests
Voice-of-the-Customer for Meetings & Events
Next Era Of Guest Satisfaction Survey
Results of Surveys Measuring Customer Satisfaction
22 Supporting The Community
Partnerships
Art
Children
Environment
Local Community
29 Caring For Our Colleagues
Healthy And Safe Working Environment
Fair Working Environment
Happy Working Environment
Learning And Career Development
34 Governance And Accountability
Internal Control
Corporate Ethics
36 Protecting The Environment
Managing Our Environmental Impacts
Reducing Our Environmental Footprint
Enhancing Environmental Awareness
45 Appendices
Appendix 1 – Materiality
Appendix 2 – List Of GRI Standard Disclosures
INTRODUCING
THIS REPORT
Introducing this Report 02

Introducing this Report


This is the fourth sustainability report for Langham Hospitality
Group (LHG), which contains Standard Disclosures from the
Global Reporting Initiatives (GRI) Sustainability Reporting
Guidelines version G4. It covers the actions we have taken
during the calendar year 2014 to strengthen sustainability The report covers all properties in full operation, under the
values that are important to LHG and its key stakeholders. management of Langham Hospitality Group, during the
This report reviews our current systems and performance, reporting period (see Langham Hospitality Group section).
and sets out our environmental and social objectives for the Quantitative data and qualitative information cover all our
coming years. direct business activities unless otherwise indicated. This
account of our activities does not include data from our
The report also focuses on the sustainability issues material to development and investment activities, and properties that
Langham Hospitality Group’s commercial activities. We have were no longer under our management during the reporting
identified and evaluated the environmental and social impact period.
associated with our business operations, and the hospitality
industry in general. For more details about the materiality of LHG is a wholly owned subsidiary of Great Eagle Holdings
the report, please refer to Appendix 1 – Materiality. The and links to information regarding our financial and corporate
list of the GRI Standard Disclosures and their location in this governance policies and performance are provided through
report is provided in Appendix 2 – List of GRI Standard the corporate website (greateagle.com) as well as past
Disclosures. annual reports.

For any enquiries and feedback regarding this report, please


contact the Group Director of Sustainability at sustainability.
mgr@langhamhotels.com.

About the Report Feature


Collaboration is what we see in stakeholder engagement. As stated
in Wikipedia, Collaboration is working with others to do a task and
to achieve shared goals. A shared goal is the expected outcome of
successful stakeholder engagement. Beginning with this report, we
will share our work and results of stakeholder engagement exercises
beginning with an introduction.
MESSAGES FROM
SENIOR LEADERS
Messages from Senior Leaders 04

From Executive Chairman


The objective of our annual Sustainability Report is to set clear
strategies and structure for Langham Hospitality Group to
better manage our CONNECT initiatives and our impact on
the environments in which we operate. We are proud of the
ongoing efforts of our 8,000 colleagues who demonstrate
their commitment to our corporate social responsibility
priorities, as exemplified in their ownership and involvement
of individual programmes at the corporate and hotel levels.

Their efforts have been made possible with a transparent As always, we understand that there is still room for
articulation of our goals, and the alignment of our standards improvement and that more work needs to be done to
with those from internationally-recognised organisations such further involve our stakeholders, colleagues and partners to
as EarthCheck and Leadership in Energy and Environment meet our social and environmental requirements. To that end,
Design (LEED) that reflect the company’s aim to achieve more we will continue to balance our commercial responsibilities
sustainable operations in the longer term. In particular, we with our environmental governance, and I would like to
have seen a welcome increase in Gold and Silver certification personally thank all who have contributed to our successful
in EarthCheck for our hotels in Auckland, Boston, Hong CONNECT journey in the past year.
Kong, London, Los Angeles, Melbourne, and Shanghai.

Dr. K S Lo
Executive Chairman
Messages from Senior Leaders 05

From CEO
In this year’s Sustainability Report, we focus on the main
theme of collaboration to highlight our key stakeholders –
colleagues, suppliers, and community – that support our CSR
goals. It is through this collective sharing of ideas and efforts
that it was made possible last year for Langham Hospitality
Group to reduce energy and water intensity by 12% and 9%
respectively, and 9,500 hours devoted to community service
by our colleagues.

As we continue to expand the number of hotels and brands The constant input and feedback from our colleagues
in the group, it is more important than ever to demonstrate and stakeholders have been invaluable in formulating and
high standards of ethical behaviour and pursue excellence enhancing our sustainability efforts, and we thank everyone
in environmental responsibility. While we have made good for their part in supporting our goals. Moving ahead, we are
progress in raising awareness of our CONNECT programmes stepping up our long-term commitment and vision which
in the past year, especially for Earth Hour and Langham will guide us on this journey to achieve a responsible and
Volunteer Week, we need to maintain our progress and sustainable corporate citizenship.
achievements on the longer-term basis.

Robert Warman
Chief Executive Officer
SNAPSHOT
OF 2014
Snapshot of 2014 07

Snapshot of 2014
CONNECT in 2014
CONNECT is our corporate social responsibility programme the neighbourhoods where we operate. We have identified
and implies that we want our colleagues to realise the four priorities: Governance, Environment, Community and
connection between our initiatives and the environment Colleagues, which form the framework to address the most
and society, so that we can all collectively act responsibly relevant corporate responsibility issues to our business.
every day and contribute to the sustainable development of

Business

8,000 5.5 million 94.53


Operated over Serving over Our Guests rated our hotels
8,000 guest rooms 5.5 million guest nights at average 94.53 out of 100
(same as 2013) (4.4 million in 2013) in Review Metrix
(94.30 out of 100 in 2013)

Environment

185 MJ 12% reduction


Consumed 185 MJ energy per Guest in Energy Intensity
Night (211 MJ per Guest Night in 2013)

350 L 9% reduction
Consumed 350 L water per Guest Night in Water Intensity
(386 L per Guest Night in 2013)

Colleagues

8,000 colleagues 4.32 8.4


Employed nearly Our colleagues rated reported accidents
8,000 colleagues (approximately LHG at average per 100 employees
7,000 colleagues in 2013) 4.32 out of 5 (9.2 in 2013)
(4.29 in 2013)

Community

9,500 hours USD 520,000


Our colleagues devoted Hotels and colleagues contributed over USD 520,000 to
9,500 hours to community service charitable organisations and communities (including in-kind,
(8,500 hours in 2013) pro-bono and cash contributions) (USD 280,000 in 2013)
LANGHAM
HOSPITALITY GROUP
Langham Hospitality Group 09

About Us
Langham Hospitality Group encompasses a family of
distinctive hotels under the Langham Hotels and Resorts,
Cordis and Eaton brands with more than 30 projects currently
either confirmed or in the development stage of negotiations
in Asia, Europe, North America and the Middle East. Langham
Hospitality Group is a wholly-owned subsidiary of Great Eagle
Holdings (Stock Code: 0041) which was founded in 1963 and Our Vision and Values
listed on the Hong Kong Stock Exchange in 1972. Great Eagle
Our first vision statement, introduced in 2008, was strongly
Holdings is also selected as a constituent member of the
hospitality related as “Know our Guest, Build Great
Hang Seng Corporate Sustainability Benchmark Index for four
Memories”. We work tirelessly to be the definition of
consecutive years.
hospitality by knowing our guests better than our competitors
and building greatest hotel memories. The whole organisation
is focused on learning about our guests and their needs, and
utilising this knowledge to build lasting and unforgettable
memories for them such that we are recognised to be the
new definition of hospitality.

In 2014, we evolved Langham Hospitality Group’s mission


as “We will be recognised as the leading and visionary
hospitality group in the world by offering unique brands
for different market segments and building guest loyalty”
with the aim of articulating a common future picture of
the organisation to every colleague. To cascade the same
message across different continents and among our growing
number of colleagues, the senior management team also
formulated an easily communicated document covering
the overall business model, operations model as well as the
leadership model. Various learning and quality systems were
designed to make our culture sustainable. The global launch
will be in 2015 and we will share the details in next year’s
report.
Langham Hospitality Group 10

Brand Development Where We Operate

One of LHG’s key strategies is deploying unique brands EUROPE:


targeting different market segments. In 2014, a clear brand The Langham, London
structure was elaborated. Langham Hotels and Resorts is our
brand committed to delivering guests with unmatched levels PACIFIC:
of luxury. Hotels that deliver a luxury experience in a classical The Langham, Auckland
style are named “The Langham”, while hotels delivering a The Langham, Melbourne
contemporary style in the luxury sector are named “Langham The Langham, Sydney
Place”.
NORTH AMERICA:
Langham Hotels & Resorts The Langham, Boston
The Langham, Huntington, Pasadena, Los Angeles
Langham Hotels and Resorts represents the epitome of luxury.
The Langham, Chicago
Hotels under the brand are defined by “The Art of the Stay”
through their impeccable service with poise, timeless art and
Langham Place, New York, Fifth Avenue
design, and by their captivating experiences.

Experience classic grandeur and utter serenity at The Chelsea Hotel, Toronto
Langham. Be inspired by understated contemporary elegance
at Langham Place. Two different styles, but one commitment ASIA:
to delivering guests with unmatched levels of luxury and China
pampering at every one of our hotels across the globe. The Langham, Shanghai, Xintiandi
The Langham, Shenzhen

Langham Place, Beijing Capital Airport


Langham Place, Guangzhou
Langham Place, Ningbo
Langham Place, Xiamen

Eaton Luxe, Shanghai, Nanqiao


Eaton Luxe, Shanghai, Xinqiao

Hong Kong
The Langham, Hong Kong

Langham Place, Hong Kong

Eaton Hong Kong

India
Eaton Smart, New Delhi Airport Transit Hotel

Corporate Office
Hong Kong

Regional Office and Global Sales Offices:


Beijing, Chicago, Hong Kong, Sydney, New York,
Shanghai, Singapore, London
FEATURE: ENGAGING
OUR STAKEHOLDERS
Feature: Engaging Our Stakeholders 12

Approach
Stakeholders are around us at every moment. We define our stakeholders as
people who can affect our business or who are affected by us. They can be guests
staying in our hotels, bell colleagues carrying luggage upon guest arrivals, or
suppliers delivering fresh produce to our kitchens every day. There is no doubt that
engaging with stakeholders is a factor in the success of our business. Effectively
engaging stakeholders will become the direction of our Corporate Commitments
to be reinstated in 2015.

Who are our stakeholders?


We serve millions of guests, manage thousands of suppliers and employ 8,000
staff, in addition to other stakeholders across four continents. It is important for
us to develop an effective and feasible approach in our stakeholder engagement
exercise in the coming years. After several brainstorming sessions with senior
leaders in the company, the following key stakeholder groups were identified as
having the most significant impact on our operations and were prioritised. We are
and will continue to work with them at different engagement levels on relevant
corporate responsibility issues.

Guests

Suppliers

Community

Colleagues
Owners

Media
Feature: Engaging Our Stakeholders 13

What do we mean by engagement?


Engaging people is one of our business strengths. We have defined engagement
into three levels of objectives – INFORM, COMMUNICATE and INVOLVE. INFORM
means a one-way communication to our stakeholders that allows them to
understand our business and hotels. This is also the foundation for building higher
levels of engagement. COMMUNICATE describes the two-way conversation with
stakeholders for the purpose of building relationships and trust. Stakeholders
provide feedback to us, and we listen, respond and further actions are taken when
appropriate. INVOLVE is the highest level of engagement. Stakeholders are part of
our business through collaboration with the intention of mutual benefits.

Partner for mutual


Involve benefits

Establish Relations &


Communicate Trust

Inform Understanding

The short-term goal of our stakeholder engagement exercise is strengthening the


foundation for a higher level of engagement. Relevant corporate responsibility
issues should be INFORMed and COMMUNICATEd with different stakeholder groups
at a global level through Corporate Office and at a local level through individual
hotels. In the long run, we will ensure stakeholders’ needs are being met.

Why do we engage?
Stakeholders are people who can affect our business or who are affected by
us, so we need to understand these interactions. By communicating with our
stakeholders, we have the opportunity to understand their views and explain our
perspectives. More importantly, our sustainability strategy shall be driven by striking
a balance among the concerns of our key stakeholders. Creating shared value for
our stakeholders will be the driving force in running our business innovatively and
sustainably.

How do we engage our stakeholders now?


We reach out to our key stakeholders in many different ways for business purposes.
We INFORM our stakeholders through a variety of channels including corporate
and hotel websites, emails, newsletters and publications, press releases and news
coverage, and marketing campaigns. We COMMUNICATE through social media,
surveys, meetings and visits, etc. The level of INVOLVEing our stakeholders in our
businesses is at a nascent stage except for one stakeholder group – colleagues. We
have been INVOLVEing our colleagues at all grades of business improvement using
tools such as Q League (strategic team), Langham Logic (process improvement
tool) and Think Pink (idea collecting platform) to advance both our business and
colleagues’ capabilities.
Feature: Engaging Our Stakeholders 14

Col
st le ag
G ue ue
s
Email Newsletter

Survey Survey

Website

Supplier
Press

Suppl iers
code of
releases conduct
Media

LHG Meeting
Media trip & visits

Social Media

Volunteering Meeting

Donation News NEWS


Co
m rs
mu e
nit
y O wn

Sustainability issues such as energy and water savings, waste recycling, healthy
lifestyles, and colleagues’ health and safety were raised occasionally through these
engagement channels. We will infuse important sustainability issues into current
channels ensuring they are prioritised and broadening their scope in how we
address matters that are of important concern to our stakeholders. In 2014, the
Group took on a few initiatives to advance the engagement approach to certain
stakeholders with more details shared below.

Stakeholders and Us
Stakeholder Group 1: Guests
Guests are the centre of our business. Our hotel news and marketing promotions
INFORM guests through direct and indirect communication channels, from
traditional (e.g. face-to-face meeting, press releases) to modern methods (e.g.
social media, electronic direct marketing). When guests are staying with us, they
are captivated through the five senses and best service of our colleagues. The
experience of Guests’ staying with us and using our products and services are
our top concern. We COMMUNICATE with our guests by listening to them and
collecting their feedback on our service quality through various voice-of-the-
customer platforms (e.g. online surveys, comment cards). Their comments are
followed up on by our colleagues.

It is in our nature to fully ENGAGE with our guests. The next step is to integrate
green and CSR messages into these channels and communicate them to our
guests. We ENGAGE our guests by offering sustainable lifestyle opportunities
through our group-wide “Guests of the Earth” and CONNECT Conference
initiatives. Local green and social programmes in hotels such as Earth Hour and
Green Monday are normally shared through press releases and social media to our
guests. Guest comments on these initiatives or their preferences for a sustainable
lifestyle have not been gathered proactively. This is one of the areas that we should
be working on improving in the future.
Feature: Engaging Our Stakeholders 15

Case worth sharing: Green LUCK Banquet in Hong Kong


We ensure that our guests enjoy their special occasions at our hotels
and that they are not only memorable, but also eco-friendly. In Hong
Kong, our hotels continued their efforts to ENGAGE our guests in a
sustainability-inspired lifestyle at their special occasion by adding the
Green LUCK programme into their banqueting services. Green LUCK is
a programme initiated by Green Monday to promote healthy and green
banqueting with no waste, no shark fins and a bias for vegetarian dishes.

Our catering and banqueting teams worked closely with the wedding and
banqueting guests, where we helped guests to collect, store and donate
all surplus food from their event, to share with those in need through local
food donation partners. In addition to the seamless logistics that ensure
the quality of donated food, banqueting guests are well-informed about
the programme before the leftover food is removed from the tables. Their
positive feedback was received directly by our banqueting colleagues.
By offering green banqueting options, we can help to create not only a
memorable event, but also promote a sustainable lifestyle for our guests.

For guests who take part in the Green LUCK programme, the hotel will
help them collect, store and donate all surplus food from their event

Stakeholder Group 2: Media


The media is our partner to keep in touch with our guests. Our media includes
print, news, published, digital, advertising and social media. We have dedicated
public relations teams managing our relationships with the media at the
international, national, regional and local levels. We regularly INFORM and
COMMUNICATE with the media through press releases, interviews, press events
and media trips. We kept a low profile in our green and community programmes
in the early stages of our sustainability journey to avoid any misconception
of greenwashing. We also fully understand that transparency is important in
building trust with our stakeholders. After years of environmental monitoring and
certification by third parties in our hotels, we first introduced “corporate social
responsibility” to be one of the mandatory topics for our hotel’s public relations
department in 2013. Increased media COMMUNICATION in sharing our CONNECT
stories from our hotels and corporate office was observed in these past few years.

The next step is to ENGAGE them. The media was selected as one of the
stakeholder groups with whom we will take proactive action by involving them
in refining our CONNECT strategy and planning. This stakeholder engagement
exercise will be rolled out in 2015 to all hotels and corporate office as we believe
that corporate social responsibility issues are local as well as international and we
should ENGAGE and learn from different perspectives. We will share the details
about this exercise in the 2015 report.
Feature: Engaging Our Stakeholders 16

Stakeholder Group 3: Community


We are committed to making positive and lasting impacts on
the communities in which we work and live. The community
that we refer to includes charity organisations or the hotel’s
partners in volunteering, industry (e.g. business and hotel/
tourism associations), neighbours (e.g. city council), and Environmental experience sharing with representatives from Macau
Environmental Bureau, Macau Government Tourist Office and Macau
academic institutions (e.g. schools and colleges). Whilst you Green Hotel Awardees
may find out more about how we contribute to the charity
organisations in the Supporting the Community section of
this report, we talk about how we ENGAGE with our other
community stakeholders in this section.

As a business operator which hires hundreds of people locally,


we have established close relationships with industry through
on-going dialogue; and membership in the stakeholder
network. For instance, we hold a number of positions and
memberships with the following local business associations:

• Founder member of the Considerate Hoteliers Association


in London

• Executive Committee member of the Hong Kong Hotel


Association

• Executive Committee member of the Karangahape Road


Business Association in Auckland

• Member of the Futian District Environmental Protection


Industry Association in Shenzhen

• British Chamber of Commerce member in Shanghai

We also maintain a close relationship with EarthCheck, which


is the internationally recognised environmental management
and certification programme service provider for our industry.
Food waste experience tour for Junior Chamber International Hong Kong
Our hotel human resources teams have also built up solid – Ten Outstanding Young Persons Awardees
relationships with educational institutions for years. We
participated at student networking events and career days
at the leading hospitality colleges in the cities where we
operate. We hosted internship programs for hospitality
colleges. We also showcased our best environmental practices
through hotel tours and experience sharing seminars.

We occasionally INFORM our community partners about


our green and community initiatives and achievements as
they should rightly be COMMUNICATEd and ENGAGEd
with for extended collaboration and to create shared values.
The community is identified as being part of the 2015
stakeholder engagement exercise in our hotels. Working with
industry, neighbours and schools helps our understanding
of their CSR priorities and concerns, while sharing our ideas
and ENGAGEing them in our CONNECT programme. The Green hotel tour for students from Baptist University, Hong Kong
outcomes of the stakeholder engagement exercise will be
shared in our 2015 report.
Feature: Engaging Our Stakeholders 17

Case worth sharing: EarthCheck Inner Circle


We were honoured to participate and host the third
EarthCheck Inner Circle meeting at Langham Place,
Mongkok, Hong Kong in 2014. EarthCheck Inner
Circle is an invitation-only think-tank session designed
for global experts to meet in one spot and share best
practices. Sustainability leaders from the hospitality
industry and academic experts joined together to not
only share our sustainability challenges, but also to
discuss current solutions to these challenges alongside
measures for building tourism resilience. We were
further honoured to share our green hotel practices
and the values of managing our environmental risks
through the EarthCheck system.

Stakeholder Group 4: Colleagues


Engaging our colleagues is important for us in attracting through newsletters, Daily Legends, SHOWTIMEs and
and retaining the right talent, delivering on our vision Townhall meetings. The hotel CONNECT Committee serves
and objectives, and helping colleagues achieve their full as the platform to COMMUNICATE CONNECT messages to
potential and realise self-growth at work. Communicate, colleagues in all departments. In this regard, colleagues are
Communicate, Communicate is one of our core values and well informed with CONNECT information – at both the
drives us to develop an effective and human communication group and hotel levels.
system among all our hotels.
We also listen to our colleagues through the My Colleague
We prefer face-to-face and verbal COMMUNICATION with Survey. In 2014, we first introduced three questions related
our colleagues. Every day, all colleagues start their day of to CONNECT programmes into the My Colleague Survey.
work with SHOWTIME (daily briefing) and sharing of the The results were very encouraging with over 90% of our
Daily Legend (daily newsletter) in the hotels. Every quarter, all colleagues fully supporting our environmental and community
colleagues are required to attend the Townhall meeting (all service initiatives, with about 50% thinking that our
colleagues briefing) presented by senior management. Every works were ahead of our competitors. The
year, all colleagues participate in the My Colleague Survey first survey result provided us with a baseline
(employee survey) to express their opinions and thoughts. to understand the general opinion of our
colleagues. Next, we will explore how we can help
CONNECT has been integrated into the internal colleagues feel INVOLVED in social responsibility
communication system gradually over the past few years. issues that matter to them.
We INFORM colleagues on the hotels’ CONNECT information

Case worth sharing: Langham Logic


Our colleagues were encouraged to participate in Langham Logic projects where
colleagues from different departments and levels work together to solve cross
departmental process issues or improvement. Langham Logic is our process
improvement tool to help make operational processes easier. For instance, our
hotel in London noticed an opportunity to enhance the recycling rate by proper
waste segregation. Waste came from guest rooms, the kitchen, restaurants
and offices. Led by the hotel’s green champion, the project team involved
representatives from housekeeping, food and beverage, kitchen, stewarding,
engineering, finance, human resources and quality. The team concluded that the
recyclables should be collected in the correct containers. After setting up recycle
bins, visible signage, and improved staff awareness, there was an increased
percentage of on-site recycling from 65% to 73%. Recycling behaviour was also
implanted in our colleagues.
Feature: Engaging Our Stakeholders 18

Stakeholder Group 5: Suppliers


Suppliers are important industry partners for hotels. Their
products and services enable us to deliver our hospitality
services to our guests. Every year, we manage thousands
of suppliers on food and non-food products, and critical
business services. We work closely with our suppliers to
ensure that their products and services are meeting our
standards. Since 2013, we introduced sustainable supply
chain management in phases following the initiative of
our parent company. We focused on raising the corporate
social responsibility awareness of our significant suppliers
by communicating with them about our Supplier Code of
Conduct. We also developed our Responsible Purchasing
Policy and internal guidelines over the past two years (for
details please refer to the Environment Section).

We believe that a more constructive dialogue with suppliers


is essential for our CONNECT programme in the long run.
ENGAGing them in delivering greener and better products to
our guests is the process of creating shared values that shall Stakeholder Group 6: Owners
benefit both parties. Engagement exercises with suppliers
will be planned in the coming years. Owners are our investors and definitely an important
stakeholder. We build a secure relationship with owners
based on the sharing of goals and objectives of both parties
through timely and open communication. We INFORM our
owners through regular reporting and business analysis. We
meet and COMMUNICATE with owners regularly on project
development and operation phases to ensure the hotels are
meeting the owners’ expectations and that we promptly
address any of their concerns. We recognise their expectation
to have a fair return on their investment in our hotels. More
than this, we should share the same vision with our owners
to run our business sustainably. We will engage our owners
by sharing our CONNECT strategy for managing sustainability
across the business.

Future Steps
The purpose of stakeholder engagement is incorporating What we did in 2014?
stakeholders’ views into the company’s sustainability strategy,
in other words staying in business through managing • Defined stakeholder engagement model of Langham
risks and identifying opportunities. We have built strong Hospitality Group.
relationships with key stakeholders in the last decade, and
• Integrated corporate social responsibility questions in
the relationship should be further extended to areas of
annual My Colleague Survey.
sustainability. We may not be the pioneer but we do want to
do it right in the first place. Therefore, we will take a step-by-
step approach.
Group Objectives in 2015
• Introduce stakeholder engagement model at Senior Leaders
Conference

• Continue engagement exercise at group level

• Launch stakeholder engagement exercise to all hotels


CARING FOR
OUR GUESTS
Caring for Our Guests 20

We make every effort to proactively listen to our guests through a wide range
of communication channels such as direct contact points, online surveys, social
media and feedback cards, among others. This valuable information allow us to
understand the expectations of various guest segments including hotel guests,
meeting planners, social event participants, restaurant patrons and spa guests.

Voice-of-the-Customer for Meetings


and Events
We provide dedicated services for numerous meetings and social events every
year. Since 2012, we have been collecting feedback from our meeting planners to
evaluate their experience on our services during the sales, event planning, event
delivering, and billing stages. The survey is delivered in electronic format from
the contract stage through the planning phase, from meeting commencement
through meeting end. The survey is applicable for meeting, catering, wedding
and social events at all our hotels. The survey results are analysed and enable our
teams to continuously monitor and improve our performance.

Next Era of Guest Satisfaction Survey


Our Online Guest Satisfaction Survey is an important tool for us to collect direct
feedback from our guests and also verify their level of engagement. It supports
us to identify opportunities for improvement, drive innovation in our product and
exceed guest expectations. To align with our corporate vision in building guest
loyalty as our focus, 2014 was the year to prepare ourselves for the new era of
our guest satisfaction survey. We streamlined our survey and also conducted pilot
testing on measurements of the Net Promoter Score (NPS) and Defect Free Index
(DFI) in our survey.

We always seek ways to improve the survey experience for our guests. In 2014,
we analysed previous guest data to prepare ourselves for a survey revamp in 2015.
The objective was to provide a more guest-friendly interface by delivering a shorter
yet more precise survey to our guests. We strongly believe that a shorter survey
encourages our guests to give us valuable feedback; and also allows us to focus
on the most impactful touch points for our guests.

Guest loyalty is measured by the NPS which is a leading metric widely adopted by
companies. It is critical for our company’s long-term success because loyalty has
a positive impact on our business. Hence, we introduced the NPS in our survey in
late 2014 to start collecting data and feedback to gear our focus on increasing the
number of “promoters”, i.e. those guests that love us and will recommend us to
their friends and anyone else who will listen.

Defect elimination is one of the key factors to increase guest loyalty. Therefore,
we proactively promote a culture of zero defects, service prevention and recovery
internally. To evaluate its effectiveness, DFI is measured by our guests’ opinions
during their stay with us through the online Guest Satisfaction Survey. In 2015,
we will launch the modified survey for our guests and continue to use the NPS
and DFI to track our guests’ loyalty, so that these measures will become the key
performance indicators for all hotels in 2016. We will also further explore an
integrated solution with other voice-of-customer channels covering multiple survey
types, including social media. We believe this can be a more powerful platform
that could further strengthen our capabilities in analysis and recommendation.
Caring for Our Guests 21

Results of Surveys Measuring Customer Satisfaction


Our Voice-of-the-Customer methods are used to provide definitive information
that we can act on to enhance our product and service offerings and improve
our guest loyalty in the long-term. The online surveys contain detailed questions
designed to obtain both quantitative and qualitative opinions. Figure 1 indicates
the positive trend of how our guests have enjoyed staying with us over the past
four years.

Social media and other web-based platforms are another important means of
communication with our guests in the past few years. Figure 2 indicates a positive
trend in our guest satisfaction results on social review sites.

Figure 1 Figure 2
Online Guest Satisfaction Survey results (2011-2014) Social media review results (2011-2014)

85 84.8

84.5 84.2 95
94.53
84 83.7 94.5 94.30
94.18

83.5 94
82.9
83 93.5
92.97
82.5 93

82 92.5

81.5 92
2011 2012 2013 2014 2011 2012 2013 2014

I have a great memory of this hotel Social Media Customer Review Score

2011 2012 2013 2014

Langham Hotels 92.97 94.18 94.30 94.53


th th
Ranking 4 out of 10 4 out of 14 3rd out of 14 3rd out of 14

Selected luxury brands include:


Peninsula Hotels, Mandarin Oriental, St. Regis, Four Seasons Hotels & Resorts, Park Hyatt, Shangri-la Hotels & Resorts, Taj
Hotels, Grand Hyatt, Intercontinental Hotels & Resorts, Fairmont Hotels & Resorts, Loews Hotels, The Ritz Carlton Hotels
and Le Meridien.
SUPPORTING THE
COMMUNITY

We are committed to
making positive and lasting
impacts on the communities
in which we work and live.
Supporting the Community 23

We are not strangers in the communities in which we operate. In the past two
years, we issued a Community Engagement Policy with guidelines to guide
our hotels on how to contribute to local communities through multiple means
including donations and visits, free or in-kind sponsorships, and employee
volunteering. In 2014, our colleagues contributed 9,567 hours of community
service and our hotels sponsored non-profit organisations worth approximately
US$520,000.

Staff hours serving the community

2012 2013 2014

4,911 8,482 9,567

The spirit of serving the community by our colleagues has been cultivated in every
The Langham Hong Kong
hotel. We will review our current community service strategy to make them more partnered Redress on The EcoChic
meaningful and sustainably sound in the coming year. We shall also strive to build a Design Award

stronger relationship with the community and achieve our commitment to making
positive and lasting impacts on the communities in which we work and live.

Partnerships
We believe in building strategic partnerships for community investment that yield
enduring advantages to both our partners and to us. Since the launch of the
CONNECT programme in 2011, we have been identifying the right partners and
projects that our hotels would support. This approach was unsuccessful since
colleagues at our hotels were passionate about different social issues. We believe
that our community partnerships ought to be supported by both the company
and our colleagues. For this reason, we have moved on over the last two years to
look for charity partners by region with one main intention – that our colleagues
have the opportunity to be involved and witness the positive impacts on their
local community through this ongoing partnership.

Hong Kong
At Housekeeping Station, children
Our Eaton, Langham Place, The Langham hotels as well as our Group’s Corporate learnt and practiced skills of tidying
Office in Hong Kong have been partnering with HOPE worldwide Hong Kong up beds and folding shirts.
since 2013. HOPE worldwide is an international charity organisation with a local
presence that operates a community centre serving children from underprivileged
families. In 2014, we jointly organised “The Six Pillars of Character Workshop:
Happy Summer in Hotel”. Fifty children from local low-income families were
invited to enjoy a buffet lunch and engage in six learning stations in the hotels.
The learning stations were designed and managed by our colleagues based on the
Six Pillars of Character – trustworthiness, respect, responsibility, caring, citizenship,
and fairness.
Supporting the Community 24

North America and London


We took a slightly different approach for our hotels in North
America and London. Instead of working with a single charity,
our hotels in these regions were encouraged to partner
with organisations local to each hotel but working for the
same cause – children with illnesses. It was a coincidence
that a number of our hotels have already built relationships
with their local children’s hospitals or charities that help
children with cancer or other serious diseases. Our colleagues
supported this cause by serving their time and effort in
helping children in their communities. We believe that this is
the right direction to start building a coherent impact through
our efforts in contributing to the local communities where we
operate.

Our hotels partnered with the following charity organisations


which help children with illnesses:

• Bear Necessities Paediatric Cancer Foundation in Chicago


Softball Game supporting Easter Seals by The
Langham, Boston
• CampOouch in Toronto

• Easter Seals in Boston

• JDRF (Juvenile Diabetes Research Foundation) in


Pasadena and Toronto

• Ronald McDonald House in Chicago

• SickKids Foundation in Toronto

Our next step is strengthening these partnerships and also


developing new partnerships for the regions of China and the
Pacific.

Juvenile Diabetes Research Foundation (JDRF) Ride at


Chelsea Hotel, Toronto

Colleagues from The Langham, Chicago helped at


Ronald McDonald’s House

Colleagues from The Langham, Huntington, Pasadena


participated at JDRF “Walk to Cure Diabetes” at the Rose Bowl in
Pasadena
Supporting the Community 25

Mosaic Artwork in Vauxhall Park

Art
We all have “Art” in us. Since we defined art as one of our
focus areas in our community activities for the last two years,
we wanted the artistic talents of our colleagues to bring
positive changes to the neighbourhoods in which we operate.
For example, we took part in a community activity where we
created mosaic artworks on park benches in Vauxhall Park,
London to encourage people from the neighbourhood to
make use of the outdoor space.

Art is a way to express our feelings and is sometimes used for


therapeutic purposes. Although we are not experts in art or
in therapy, we can offer our assistance to vulnerable children
in crafting their art pieces. This year, we supported children
at Griffin Primary School in London during an Art Workshop
run by Kids Company. Throughout the day, we helped 8-10
year olds create monster masks, using inspiration from their
favourite animals and fictional characters. An abundance of
colourful materials were provided, resulting in 60 hand-made,
unique masks for the children to take home.
Art Workshop with Children in London

Art workshop for children in Hong Kong

Art is also a common language for human beings. Our


innovative colleagues from Eaton, Hong Kong delivered an
art workshop to underprivileged children in Hong Kong with
the message of protecting the environment. We engaged in
storytelling to explain the importance of protecting Mother
Earth, and then taught the children to create an artwork with
a house and a sunflower using toilet paper rolls and milk
cartons.
Supporting the Community 26

Our hotel at Shanghai, Xintiandi hosted a painting


competition themed Langham in Angels’ Eyes with the
support of the Wuliqiao Local Community. The “Angels”
were the children who had intellectual disabilities and
infantile autism from Luwan Special Needs Education School.
This competition was aimed at encouraging the Angels to
express their impressions of Langham through painting after
a hotel tour of in-house contemporary Chinese artworks. The
Angels’ paintings will be used by the hotel in the near future
to help make further contributions back to the school.
Langham in Angels’ Eyes competition in Shanghai

Children
We support children from different backgrounds through
volunteer services and sponsorship because we believe that
our work can have positive impacts. Since 2013, our hotel in
Shenzhen has initiated the “Compose Music Dream” project
to sponsor musically talented children from underprivileged
families, fulfilling their dreams. To further support this
ongoing project, we held several fundraising events and grew
this meaningful project to include our guests and the local
community. At the charity auction event, we enjoyed the
marvellous piano performances by talented children involved
in this project. We anticipate witnessing their musical talents
fully developing through our programme.

Taking care of migrant children is a common social issue in Compose Music Dream Charity Auction in Shenzhen
major cities in China. These are a group of children typically
less privileged than their peers. Our colleagues in China often
support them by engaging them in workshops, visits, donations
and parties. We also supported Sun Village which is a non-
governmental organisation in Beijing and hosted a “family”
for children of prisoners. Our volunteers helped out at the Sun
Village farm which was an income source for the children’s tuition
and other expenses.

We are always pleased to bring happy memories to children,


particularly those with illnesses. Our hotel in Xiamen initiated a
now ongoing partnership with a local charity that takes care of
autistic children. Through regular visits and volunteer activities Chocolate class for migrant children in
Shenzhen
with the children, we created opportunities for them to meet
with people, make new contacts and friendships, while at
the same time strengthening the sense of responsibility in our
colleagues. Our hotels in Sydney and Melbourne continued
their partnership with the Make-a-Wish Foundation to help
make every eligible child’s wish come true.

Care for Autistic


Children in Xiamen

Managing farm for Sun Village in Beijing

Fundraising activity for Make A Wish Setting up new reading room at a migrant
Foundation in Sydney children school in Beijing
Supporting the Community 27

Environment Garden to Table activity at St Marys School in Auckland

The best way of engaging people in protecting the


environment is by opening their eyes to realise the pertinent
issues around them and to also help them cherish nature.
In the second year of our partnership with Garden to Table,
our team from The Langham, Auckland worked hard all day
digging and building new gardens for growing fresh fruit
and vegetables around a local primary school. Our colleagues
worked with this charity which aimed at helping the schools
to grow, harvest and prepare their own fresh seasonal foods,
in order that students can grow up with an appreciation of
a healthy lifestyle, good eating habits and the importance of
sourcing fresh local produce.

Food is important to people and to us in particular as we


cook and serve thousands of dishes every day – for guests
and colleagues. We dislike seeing edible food going to waste.
Perhaps this is why the Food Angel food preparation activity
is one of our most popular community services in Hong
Kong. We have been donating vegetable trimmings to Food
Angel, and also helped out one day with food preparation
and the packing of over 500 meal boxes for distribution to
underprivileged families in the community.

We continued sending our colleagues to clean beaches and


gardens for the community. With the increasing occurrence of
natural disasters hitting cities, we realised that more support
was needed to restore our communities to be as beautiful
as they were before and make them less vulnerable to the
next natural disaster. Our colleagues worked in a park in Colleagues helped out at Food Angel in Hong Kong

Manhattan’s Harlem neighbourhood to tidy it up, worked to


reinforce the shore from further erosion, and repaired softball
fields. We also helped clean up the Franklin Children’s Garden
that had sustained considerable damage from the ice storm
that hit Toronto last December.

New York Cares Day


Supporting the Community 28

The Royal Children’s Hospital Good Friday Appeal in Melbourne

Local Community
We opened our arms by helping other needy people in our
communities. Apart from charity runs and serving meals
for the homeless, we built lasting memories for the elderly.
Working together with Contact the Elderly, The Langham,
London hosted an Afternoon Tea with local senior citizens
who lived alone with little or no support from friends,
family or statutory services providing a time for sharing and
camaraderie. In another example of pure joy, our hotel in
Hong Kong with its partners helped thirteen married couples
aged between 64 and 87 years walk down the aisle in
wedding gowns witnessed by celebrants, their friends and
families. This meaningful event also aimed to highlight the
dramatic growth of the divorce rate in Hong Kong and to
raise awareness of today’s generation to rethink the meaning
of marriage.

Afternoon tea with the Elderly in London

Elderly Wedding Party in Hong Kong

Overview on Group Objectives


What we did in 2014?
• Identified regional partnerships for Hong Kong, North America and London.

• Reported the community investment by the group.

Group Objectives in 2015


• Build stronger relationships with the current regional partnership programmes.

• Review the strategy on employee volunteering.

• Identify long-term community partnership opportunities for China and the Pacific regions.
CARING FOR
OUR COLLEAGUES

We are committed to
providing a healthy, safe,
fair, and happy working
environment for our
colleagues.
Caring for Our Colleagues 30

In 2014, we had approximately 8,000 colleagues in 18 major cities worldwide.


Our goal is to recruit and retain the right talents. We aim to do this by providing
a healthy, safe, fair and happy working environment. We also train and develop
our colleagues to ensure they have the right capabilities to help us to achieve our
vision.

Healthy and Safe Working Environment


Ensuring the safety of our colleagues is always at the top of our agenda. In 2014,
we reviewed our Groupwide Occupational Health and Safety Policy to define our
global commitment to workplace health and safety. The Policy stipulates that all
hotels must maintain their health and safety systems with policies, committees,
training and incident reporting. The system is implemented and monitored by the
senior management, human resources management and security departments
of our hotels. We review the effectiveness of the system in the hotels through
Key Performance Indicators (KPI) systems, looking at the injury rates and
numbers of lost days. We are pleased to observe a decreasing trend in health
and safety related KPIs in the past three years, and there were no deaths due to
work activities. We will continue to improve on our performance to ensure our
workplace is safe for each and every one our colleagues and guests.

KPI 2012 2013 2014

Lost time injury frequency rate (number of reported


27.6 18.8 15.8
lost-time accidents for every 1 million working hours)

Incident rate 13.5 9.2 8.4


(reported accidents per 100 employees)

In addition to the Group Policy, the Workplace Health and Safety Week,
which is our global awareness programme, was organised for a second
year. A week in the fourth quarter was designated to increase colleagues’
awareness and promote the importance of workplace health and safety
in the hotels. In addition to the internal awareness campaign, another
objective was to introduce the risk assessment concept to colleagues.
We advocated our colleagues not only to practice the safety preventive
measures, but to also understand the purpose and importance of these
measures.

We also introduced several employee wellness programmes in our hotels.


For example, the employee benefits package for our hotel in London
De-stressing massages in The Langham, Auckland
was updated with a wellness section, and a weekly free-of-charge circuit
fitness training and running programme was arranged in addition to
several discounted back therapy, reflexology and chiropodist sessions for
our colleagues. Eaton, Hong Kong joined the Smoking Cessation Program
for the Workplace to encourage an environment that helps people to
stop smoking. In the view of the positive feedback from these wellness
programmes, corporate wellness will be the theme for the Workplace
Health and Safety Week in 2015.

Five-colour coded “Health Tips” cards based on the Chuan Spa 5


elements distributed to colleagues in The Langham, Shenzhen
Caring for Our Colleagues 31

Fair Working Environment


A fair working environment should be one free of discrimination, harassment,
bullying and victimisation. We made this commitment by stating it in our reviewed
Group Employee Rights and Equal Opportunities Policy, which was issued in 2014.
We are also committed to promote equal access to employment.

Positive feedback on fairness has been received in our Colleague Satisfaction


Survey. For instance, 80% of colleagues agreed that the hotel provides equal
opportunities to all colleagues; and 76% of colleagues believed that they were
fairly rewarded and recognised for good performance, as reported in the 2014
survey. Our next step is the review of current procedures and training at our
corporate office and our hotels to ensure compliance with the revised policy.

Workforce Profile 2012 2013 2014

Workforce Total employees 5,065 6,979 7,813


Full time employees 89% 89% 90%
Gender Female employees 45% 47% 48%
Male employees 55% 53% 52%
Age Age profile of workforce
<20 2% 2% 2%
20-29 39% 38% 38%
30-39 28% 26% 26%
40-49 19% 19% 19%
50 or above 13% 15% 15%
Expatriates 4.3% 3.0% 2.9%
Senior Executive 13% 13% 12%
General Workforce 3.8% 2.5% 2.5%

Notwithstanding the substantial growth of our workforce, by 60% in three years,


the diversity profile remained fairly stable. As an equal opportunity employer, it is
also worth mentioning that the number of female employees became closer to the
number of male employees in our general workforce. We will look into the gender
diversity of our senior executives and report on it next year.
Caring for Our Colleagues 32

Happy Working Environment


A happy working environment is not defined by the company, but by our
colleagues. We can better ensure we provide a happy place to work if we
listen to the voices of our colleagues and act on what they are telling us. Our
Colleagues Satisfaction Survey has been running since 2005, and has become a
core communication channel every year. We appointed an independent research 5
4.29 4.32
company to conduct the survey and analyse the results so as to ensure neutrality 4.14 4.21 4.23
and confidentiality. 4

This year, there were 88% of all eligible colleagues who completed the survey
from 21 properties. The Colleague Satisfaction index has shown a gradual increase 3
in the past five years, and it has increased by 14.6% from 3.77 out of 5 in 2005
when we first started this survey to 4.32 in 2014. 2

The analysis of the survey showed that our colleagues have a strong and real sense
of achievement working in our Company. Opportunities for improvement and 1
corresponding action plans were reviewed and implemented in hotels to ensure
continual improvement in the engagement of our colleagues. To reach the next 0
level in engaging our colleagues, the survey approach will be reviewed for 2015. 2010 2011 2012 2013 2014

Learning and Career Development


Our colleagues are our most valuable asset, with this in mind our learning and
development programmes ensure our colleagues have the right skill sets and
knowledge needed to grow our business now and in the future.

We continue offering the Langham Curriculum Certification, which is our global


learning syllabus for different levels of staff. In talent development, we set
up the Advanced Programme for Executives (APEX) to support high potential
managers take the leap to senior executive roles. The China Management Trainee
(CMT) development programme, on the other hand, helped to identify potential
new graduates to groom their careers in the hotel industry. In performance
management, the PRIDE system mandates that each colleague has a performance
appraisal at least once a year with their line manager to review their performance
and set clear goals and development plans for the year ahead.

In last year’s report, we shared the results of our key performance indicators
related to learning and development for the first time. Both indicators, which
are the number of training hours per employee and the percentage of eligible
employees who received an annual performance review in 2014, increased when
compared to 2013. Moreover, positive feedback in the learning and development
BE
SE TTE area has been received from colleagues. In the 2014 Colleague Satisfaction Survey,
RV R 82% of colleagues rated their opportunities to advance their skills and knowledge
IC
E for career development as good or very good.

KPI 2013 2014

Training hours per employee 31.6 34.3

% employee received performance review 91% 93%


Caring for Our Colleagues 33

In 2014, our work concentrated on designing a new series of training programmes


for service excellence and service mindsets. Our new customer service training
series is called PASSION. The series aims to excel our service to drive guest loyalty.
The series of training modules covers the following skill sets: to know our guests;
service principles to gain guest satisfaction; techniques to handle difficult service
situations; and service management for supervisors.

Turning Oops to Wow training at The Langham, Chicago

We will revamp our orientation programme, which is called the First60


Certification Programme, to be launched globally in 2015. The PASSION series is a
part of the First60 Certification Programme.

Overview on Group Objectives


What we did in 2014?
• Launched the group-wide Employee Rights and Equal Opportunities Policy,
Occupational Health and Safety Policy and Code of Ethics.

• Reviewed existing procedures to align with these updated policies.

• Pilot tested the re-launch of Langham Curriculum Certification and Customer Service Training Series.

• Introduced risk assessment.

Group Objectives in 2015


• Review Human Resources Policies and Procedures including those with updated policies.

• Review workforce demographic data

• Introduce corporate wellness during Workplace Health and Safety Week

• Re-launch Langham Curriculum Certification and Customer Service Training Series.

• Global launch of First 60 Certification programmes


GOVERNANCE AND
ACCOUNTABILITY

We are committed to
operate our business with
integrity and in accordance
with the highest ethical
standards.
Governance and Accountability 35

Operating responsibly is not simply about supporting the environment, community


or our colleagues. It also implies conducting all aspects of our business in an
ethical manner and being recognised as reliable by our business partners and
guests.

Internal Control Corporate Ethics


Being a wholly owned subsidiary of Great Eagle Holdings We are committed to maintaining good corporate
Limited, we adhere to a high standard of corporate governance and business integrity in our business activities.
governance practices which are critical to business integrity To ensure our commitment is in alignment with industry best
and to maintaining business partners’ trust in us. Langham practices, the Code of Ethics was updated and endorsed by
Hospitality Group is governed by the Executive Committee our Senior Executives, and rolled out to all hotels in 2014.
and chaired by the Chief Executive Officer. The Executive The Code explains what is expected of our colleagues,
Committee reports directly to the Executive Chairman of the including Executive Committee members, in connection
Group, who is also the Chairman of Great Eagle Holdings with their official duties. The Code provides guidance on
Limited. acceptance, soliciting or offering of advantages, declaration
of conflicts of interest, fraud and bribery, gambling, fair
The Executive Committee leads the CONNECT Programme dealing, and handling confidential information. Relevant
with support from the Global CONNECT Champions, the standard operating procedures will be reviewed and updated
Group’s Director of Sustainability and our dedicated hotel in accordance with the Code.
champions. One of the Global CONNECT Champions is the
Group’s Vice President of Human Resources who is also an The Code is introduced to all new employees through
Executive Committee member. compulsory induction training. Colleagues also receive regular
communications, refresher training, and team briefings on
The Executive Committee is also accountable for the various aspects of our compliance programme, depending on
implementation of the Group’s internal controls, risk their role. All colleagues are also aware that they have a duty
management and finance reporting to ensure compliance to report any breaches of our Code of Ethics.
with legislation, industry best practices and company
policies and procedures. The Executive Committee members Additionally, one of the Global CONNECT Events relates to
also review the remuneration structure at high levels and internal review and training on a selected topic that concerns
endorse the compensation and benefits packages of senior corporate ethics. In 2014, data privacy was selected to be
management. The Group also abides by the internal control the topic, as there was increasing concern globally about
systems of Great Eagle Holdings Limited. the handling of private data of customers. Through this
activity, we aimed at fostering an improved awareness among
colleagues of the risks of data privacy, and also driving
continuous improvements by sharing the best practices
among the hotels.

We will conduct interviews reviewing our employee rights and


equal opportunity practices in 2015, following the issuance
of our updated policy. We have also observed that some of
our hotels have implemented outstanding corporate ethics
programmes which can be shared among our hotels. To do
this, we shall develop a shared platform on these best ethics
practices.

Overview on Group Objectives


What we did in 2014?
• Launched the group-wide Code of Ethics.

• Internal Code of Ethics review on data privacy.

Group Objectives in 2015


• Reviewed existing procedures to align with Code of Ethics.

• Require Code of Conduct review on employee rights and equal opportunity.

• Develop internal best ethical practices sharing platform.


PROTECTING
THE ENVIRONMENT

We are committed to
becoming a role model
amongst hospitality
operators for environmental
impact, awareness and
reduction.
Protecting the Environment 37

We are committed to becoming a role model among hospitality operators in regards to


environmental impact, awareness and reduction. The priority is not only in operating
our properties in the most efficient and least wasteful manner, but we see it as our
responsibility to engage our colleagues and guests in thinking about greener lifestyles.
Changing our behaviour to pose less harm to the environment is a continuing mission.

Managing Our Environmental Impacts


We have developed a robust system to manage our environmental impact in the
past few years. The following chart demonstrates how the system is in place at
both the group and hotel levels.

Management Approach for the Environment

CONNECT
Environment

Group Hotel
Environmental Environmental
Policy Policy

Hotel Key
Environmental Performance
Goals Indicators (KPIs)

EarthCheck*

Group Guidelines
(e.g. Responsible Purchasing,
Sustainable Design)
Hotel’s
Environmental
Group Environmental Standard Operating
Standard Operating Procedures
Group Global Procedures Hotel
CONNECT Environmental
Champions Direc tor Champion /
of Sustainability Committee
Group Standardised
Orientation Orientation and
EarthCheck Toolkit Awareness Training
Training and at Hotels
Templates

Managing
Environmental
Footprint
(Energy, water, greenhouse
gas emission, waste)

Environmental
Sustainability Performance Data
Reports
EarthCheck
Benchmarking and
Audit
Protecting the Environment 38

EarthCheck and Third Party Recognitions


We have engaged our hotels in the sustainability journey
through our partnership with EarthCheck since 2008.
EarthCheck is the leading international sustainability
benchmarking and certification service for the travel and
tourism industry. Achieving EarthCheck certification is one of
our hotel’s key performance indicators.

In 2014, we have twelve hotels certified or registered to the


EarthCheck programme. It is anticipated that there will be
more Gold Certified hotels in 2015 as their sustainability
efforts will have been recognised for more than five years.
Their successful stories will be shared in the next report.

• Langham Place, Mongkok,


Hong Kong (new)

• The Langham, Auckland

• The Langham, London (new)

• Eaton, Hong Kong

• The Langham, Boston

• The Langham, Hong Kong

• The Langham, Melbourne

• The Langham Huntington,


Pasadena, Los Angeles

• The Langham, Shanghai,


Xintiandi (new)

• Langham Place,
Beijing Capital Airport (new)

In addition to EarthCheck, our hotels have also achieved


various international and local green recognitions. The
Chelsea Hotel, Toronto achieved 4 out of 5 ratings on both
the Green Key Eco-Rating Program and Green Key Meetings
Program organised by the Hotel Association of Canada.
The Tourism Administration Office of Huangpu District has
• Chelsea Hotel, Toronto officially recognised The Langham, Shanghai, Xintiandi as
a Green Hotel with a Gold Leaf rating. The Green Hotel
• The Langham, Sydney designation is the National Standard for environmental hotel
ratings in China by the National Tourism Administration of the
People’s Republic of China. The Langham, Auckland attained
the Qualmark Enviro Award in addition to recognition “for
environmental and sustainable contributions at the G20
Sustainable Global Leaders Forum”. The Langham, London
holds the Green Tourism Silver Certification. Langham Place,
Mongkok, Hong Kong successfully renewed its ISO 14001
certification in 2014.
Protecting the Environment 39

Performance Monitoring
Environmental performance data from hotels is collected and
Group Annual Energy Consumption
analysed internally through the group’s intranet. In this era of
data overload, we are after not only data accuracy, but also
in improving the overall efficiency and user-friendliness of our Intensity (MJ per guest night) Actual Consumption (GJ)
systems. Our reporting system was developed to align with
00
EarthCheck’s benchmarking requirements, and was further 0 0,0
250 1,2
enhanced to generate internal reports for our Chief Engineers 221.55 00
to help monitor their hotels’ utility performance and cost. 201.6 210.6 0 0,0
1,0
200
In 2014, our hotels achieved their most efficient performance 185.0 00
0,0
level in the four years since 2011, when we started reporting 80
150 00
on our environmental performance. The total energy and 0,0
water consumption of the group increased by 10% and 14% 60
in 2014 compared with 2013. This was due to the group’s 100 00
0,0
expansion and business growth in 2014. Our energy and 40
water intensity decreased by 12% and 9% as compared to 00
50 0,0
20
the previous reporting year. The associated generation of
greenhouse gas emissions from energy use in our hotels was
0 0
116,749 tonnes (about 21 kg CO2e per guest night) in 2014. 2011 2012 2013 2014
We will continue to deliver on our commitment to protect the
environment by reducing our environmental footprint. Note: Energy consumption data were revised due to (i) inclusion of
purchased steam and chilled water from two hotels in North America,
and (ii) consistency in unit used for energy.

Group Annual Water Consumption

Intensity (L per guest night) Actual Consumption (CuM)

00
0 0,0
450 2,5
385.7 00
400
360.91 366.1 0 0,0
350
349.6 2,0
00
300 0 0,0
1,5
250
00
200 0 0,0
1,0
150
00
100 0,0
50
50
0 0
2011 2012 2013 2014
Protecting the Environment 40

Reducing Our Environmental Footprint


Resource Conservation
We always identify energy and water saving opportunities through
optimising the efficiency of plants and equipment in our newly
opened hotels, whilst upgrading the plants and equipment in older
hotels. The Langham, Shanghai, Xintiandi completed a series of
energy and water conservation projects which brought significant
savings to the hotel without affecting the high standard of service
quality to their guests. The projects included boiler condensate
recovery, boiler furnace descaling, steam pressure adjustments, heat
insulation installation for their swimming pool and glass wall, LED
light retrofitting, sensor controls for water taps and lighting, and
cooling tower enhancements. The team estimated that a reduction of
30% in energy costs, and 20% in water consumption was achieved.

Langham Place, Beijing Capital Airport enhanced their heating,


ventilation and air-conditioning (HVAC) system by introducing
controls for the circulating pumps according to outdoor
temperatures, and using cold outdoor air to cool their cooling
tower seasonally. Together with these enhancement projects and
LED retrofitting, it is estimated that over RMB 600,000 was saved
annually. Similar projects were implemented in other “younger”
hotels like our Langham Place Hotel in Ningbo.

In 2014, the renovation of 103 guest rooms was completed at The


Langham, Hong Kong. The project was aimed at enhancing the
overall guest experience, as well as the installation of energy and
water conservation features such as LED light fittings, dual flushing
systems, and water saving sanitary fitting appliances for bathrooms.
The hotel also implemented a small-scale renewable energy project
on the rooftop. Solar energy was collected and stored in a battery
to support the water mist system which was designed to increase
efficiency in the chiller plant, particularly during the very hot summer
in Hong Kong. LED lighting at corridor in The Langham, Shanghai, Xintiandi

Newly renovated bathroom in The Langham, Hong Kong


Protecting the Environment 41

Waste Management Upstream and Downstream Influence


While food balance is a global issue, our focus is also in Our environmental footprint is not limited to our operation.
reducing food wastage in our hotels. We use the 3Rs principle The life cycle of a hotel before it begins operations is the
in handling our food waste – Reduce wastage, Reuse in some ‘design and build’ stage. Sustainable Design Guidelines were
other area or donate to charities, or lastly Recycle through therefore developed and integrated into our Design Control
composting. From our past experience, surplus food is often Documents for different brands. The guidelines serve as the
found at events and banquets. To address this concern, starting point to guide our staff, consultants and contractors,
our hotels in London and Hong Kong partnered with Plan investors and their advisors upon the project development
Zheroes and Green LUCK Banquet initiative by Green Monday and refurbishment of our hotels in a more environmentally
respectively to donate leftover food from events to charities. and socially responsible manner.

Guest amenities are also another area for improvement in We extended our commitment to purchase responsibly. Upon
our waste management. Starting from 2014, The Langham, the issuance of our Responsible Purchasing Policy a year ago,
Melbourne collected and sent all used soap from guest rooms we finalised the guidelines which provide further support
to the Rotary Club. The soaps were delivered to the soap to our colleagues on selecting materials, where practical
factory where they were ground down and melted to make and possible, that have a minimum adverse impact on the
new soaps. The new soaps were then sent to countries to environment and welfare of the people and communities
help where they were needed. Moreover, all used slippers, where the product/raw material is produced. Taking this
shampoo and body wash bottles were donated to the one step further to demonstrate the implementation of the
Salvation Army for the needy. guidelines, we will explore the opportunity of introducing a
sustainable dining menu programme for all our hotels.
We also look into green initiatives that can engage our guests
and enhance their experience while staying at our hotels. For
example, our hotel in Ningbo offered our guests the option
of newspapers in print or digital versions. Guests can use
an iPad from the Front Office to read different newspapers
and magazines through their partnership with PressReader,
a digital newspaper and magazine service. In 2015, we
will explore the opportunity to introduce additional green
initiatives to the hotels’ Brand Standards.

Partnership with Green LUCK Banquet in Hong Kong


Protecting the Environment 42

Enhancing Environmental Awareness


Training
We continued to roll out the comprehensive EarthCheck
toolkit and training pack to hotels beyond Beijing and
Shanghai, where we first piloted the programme in 2013.
In 2014, training was delivered to our hotels in Toronto,
New York, Chicago, Shenzhen, Guangzhou and Hong Kong.
The training objectives are to introduce the EarthCheck
Standard and benchmarking requirements, and engaging
our colleagues in all functions to develop an internal
environmental management system by adapting the
EarthCheck toolkit to become hotel specific.

Earth Hour at The Langham,


Training attendees included colleagues from finance, public relation, sales & Shanghai, Xintiandi
marketing, concierge, security, human resources, food and beverage, and our
chefs.

Developing the CONNECT knowledge of our champions


is also a key focus to enhance their competencies and in
supporting their role in the hotel. Sustainability is a broad
topic and can lead to confusion if the issues are not clearly
explained. An e-learning course with several modules was
therefore developed to put the CONNECT Programme in
direct and simple messages which can be easily shared by our
hotels’ champions.

Yoga class at The Langham, Chicago Green Fashion Show at The Langham, Shenzhen
Protecting the Environment 43

Awareness
Simple actions and messages can create strong influences on our colleagues and guests.
We continued supporting the global environmental event, Earth Hour, for the fourth
consecutive year. As one of our four global CONNECT events, all our hotels around the
world turned off their lights for one hour on 29th March to symbolise our commitment
to protecting the environment. We should go beyond the hour by introducing
Loving Earth Month next year. During Loving Earth Month, there will be a series of
environmental activities to engage our colleagues and guests by taking simple actions or
passing out simple messages.

Individual hotels organised various green awareness programmes throughout the year.
For example, the Chuan Spa at our hotel in Chicago hosted a monthly complimentary
yoga class for the public in the hotel’s outdoor plaza from June to August. Another great
example was the “Green” fashion show which took place at the annual colleagues’ party
at The Langham, Shenzhen. Colleagues designed and made fashionable clothes from
waste generated by the hotel.

Overview on Group Objectives


What we did in 2014?
• Integrated and improved consistency on environmental data collection and analysis

• Integrated sustainable design guidelines into Design Control Document

• Launched responsible procurement guidelines to all hotels

• Completed EarthCheck toolkits for new hotels and delivered toolkits training for hotels in the US

• Integrated CONNECT into orientation for all general hotel staff

What we will do in 2015?


• Introduce green initiatives into Brand Standards, including the new brands

• Introduce Loving Earth Month as Global CONNECT Event

• Explore the opportunity of sustainable dining menu programme

• Complete the competence training packs for champions


Appendices
Governance and Accountability 45

Appendix 1 – Materiality
We focus our CONNECT activities and reporting of the sustainability issues of greatest concern to Langham Hospitality Group’s
commercial activities. Based on the Global Reporting Initiatives (GRI) G4 guidelines, we identified the environmental and social
aspects which are also reference to the EarthCheck standards for accommodation sector, and Hong Kong Exchange Clearing’s
Environmental, Social and Governance Reporting Guide.

Materiality Map
High priority Medium priority Low priority
HKEx Disclosure Reporting status /
Material Issues GRI Guide EarthCheck Priority comments

Cross-theme
Stakeholder engagement • • • √
Risk management • • • Report by 2017
Supply chain • • • √
Economic
Economic performance • √
Economic contribution to local
• • Report by 2017
communities
Responsible sourcing • • √
Local purchasing • √
Environmental
Resource scarcity • • • Report by 2020
Energy • • • √
Water • • • √
Biodiversity • • Report by 2020
Climate change • • • √
Waste • • • √
Local air pollution • • • Report by 2020
Sustainable hotel design • • √
Sustainable food • • √
Social – Labour
Talent recruitment and retention • • • √
Employee welfare and benefits • √
Workplace health and safety • • √
Learning and development • • √
Employee rights and equal
• • • √
opportunity
Diversity and inclusion • • Report by 2015
Social – Human rights
Security Practices • Report by 2018
Accessibility • • Report by 2018
Human trafficking & sex tourism • Report by 2020
Social – Society
Community partnership • • • √
Employee Volunteering • • √
Anti-corruption • • √
Anti-competitive behaviour • Report by 2015
Social – Product Responsibility
Guest satisfaction • √
Food safety and hygiene • • Report by 2016
Guest safety and security • • Report by 2016
Governance / Ethics • • √
Data privacy • • √
Governance and Accountability 46

Appendix 2 – List of GRI Standard Disclosures


This following table provides cross-references to the Global Reporting Initiatives Sustainability Reporting Guidelines version G4.
It is a framework of internationally accepted guidelines and principles for companies and organisations to report on corporate
responsibility and sustainability performance.

General Standard Disclosures


General Standard Disclosures Report Sections / Comments

G4-1 Statement from the most senior decision-maker of the organization. Messages from Senior Leaders
G4-3 Name of the organization. Langham Hospitality Group
G4-4 Primary brands, products, and/or services. Langham Hospitality Group
G4-5 Location of organization’s headquarters. Langham Hospitality Group
G4-6 Number of countries where the organization operates. Langham Hospitality Group
G4-7 Nature of ownership and legal form. Langham Hospitality Group
G4-8 Markets served. Snapshot of 2014
G4-9 Scale of the reporting organization. Snapshot of 2014
G4-10 Total number of employees. Caring for Our Colleagues
G4-12 Describe the organisation’s supply chain. Feature: Engaging Our Stakeholders
G4-13 Significant changes during the reporting period. Nil
G4-15 List externally developed economic, environmental and social Feature: Engaging Our Stakeholders
charters, principles or others.
G4-16 List memberships of association. Feature: Engaging Our Stakeholders
G4-17 List all entities included in the organisation’s consolidated financial Langham Hospitality Group
statements or equivalent documents.
G4-18 Process for defining report content and aspect boundaries. Introducing this Report
G4-19 List all material aspects. Appendix 1 – Materiality
G4-22 Effect of any restatements of information provided in previous Nil
reports.
G4-23 Significant changes from previous reporting periods in the scope, Nil
and aspect boundary.
G4-24 List of stakeholder groups engaged by the organization. Feature: Engaging Our Stakeholders
G4-25 Basis for identification and selection of stakeholders with whom to Feature: Engaging Our Stakeholders
engage.
G4-26 Organisation’s approach to stakeholder engagement. Feature: Engaging Our Stakeholders
G4-28 Reporting period. Introducing this Report
G4-29 Date of most recent previous report. 2014
G4-30 Reporting cycle. Introducing this Report
G4-31 Contact point for questions regarding the report or its contents. Introducing this Report
G4-32 “In accordance” option GRI Content Index. Appendix 1
G4-34 Governance structure of the organization. Governance and Accountability
G4-36 Appointed an executive-level position with responsibility for Governance and Accountability
economic, environmental and social topics.
G4-39 Indicate whether the Chair of the highest governance body is also Governance and Accountability
an executive officer.
G4-41 Processes for highest governance body to ensure conflicts of interest Governance and Accountability
are avoided and managed.
G4-49 Process for communicating critical concerns to the highest Governance and Accountability
governance body.
G4-56 Organisation’s values, principles, standards and norms of behaviour. Langham Hospitality Group
Governance and Accountability
Governance and Accountability 47

Specific Standard Disclosures


Disclosures on Management Reporting status /
Material Aspects Approach (DMA) and Indicators comments

Economic G4-EC1 Direct economic value generated and distributed. Refer to Annual Report 2014
of Great Eagle Holding Ltd
Economic DMA Market presence. Snapshot of 2014
Economic G4-EC6 Proportion of senior management hired from the local Caring for Our Colleagues
community.
Energy DMA Protecting the Environment
Energy G4-EN3 Energy consumption within the organisation. Protecting the Environment
Energy G4-EN5 Energy intensity. Protecting the Environment
Energy G4-EN6 Reduction of energy consumption. Protecting the Environment
Energy G4-EN7 Reduction of energy requirements of products and Protecting the Environment
services
Water DMA Protecting the Environment
Water G4-EN8 Total water withdrawal by source. Protecting the Environment
Emissions DMA Protecting the Environment
Emissions G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1). Protecting the Environment
Emissions G4-EN16 Energy indirect GHG emissions (Scope 2). Protecting the Environment
Emissions G4-EN18 GHG emissions intensity. Protecting the Environment
Effluent and waste DMA Protecting the Environment
Compliance DMA Protecting the Environment
Employment DMA Caring for Our Colleagues
Labour/management DMA Caring for Our Colleagues
relations Feature: Engaging Our
Stakeholders
Occupational Health DMA Caring for Our Colleagues
and Safety
Occupational Health G4-LA6 Rates of injury, occupational diseases, lost days, and Caring for Our Colleagues
and Safety absenteeism, and number of work-related fatalities by
region and by gender.
Training and DMA Caring for Our Colleagues
Education
Training and G4-LA9 Average hours of training per year per employee by Caring for Our Colleagues
Education gender, and by employee category.
Training and G4-LA10 Programs for skills management and lifelong learning Caring for Our Colleagues
Education that support the continued employability of employees
and assist them in managing career endings.
Training and G4-LA11 Percentage of employees receiving regular performance Caring for Our Colleagues
Education and career development reviews, by gender.
Diversity and Equal DMA Caring for Our Colleagues
Opportunity
Diversity and Equal G4-LA12 Composition of governance bodies and breakdown Caring for Our Colleagues
Opportunity of employees per employee category according to
gender, age group, minority group membership.
Local Community DMA Supporting the Community
Local Community G4-SO1 Percentage of operations with local community Supporting the Community
engagement.
Anti-corruption DMA Governance and Accountability
Anti-corruption G4-SO4 Communication and training on anti-corruption Governance and Accountability
policies and procedures.
Anti-corruption G4-SO5 Confirmed incidents of corruption. Nil in 2014
Product and Service DMA Caring for Our Guests
Labelling
Product and Service G4-PR5 Results of surveys measuring customer satisfaction. Caring for Our Guests
Labelling
Customer Privacy DMA Governance and Accountability
LANGHAM HOSPITALITY GROUP
www.langhamhospitalitygroup.com ©2014 Langham Hospitality Group all rights reserved.

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