Case study: How Mandarin Oriental Hotel Group decarbonises its operations
As an international hotel investment and management group with deluxe and first class hotels, resorts and residences in sought-after destinations around the globe, operating 29 hotels and eight residences in 19 countries and territories, Mandarin Oriental Hotel Group is committed to decarbonising its operations, through a number of strategies and initiatives. Tweet This!
This case study is based on the 2016 Sustainability Report by Mandarin Oriental Hotel Group published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
Abstract
Mandarin Oriental Hotel Group seeks to integrate sound sustainability practices and principles into the lifecycle of its properties, including operations. In order to decarbonise its operations, Mandarin Oriental Hotel Group took action to:
- carry out energy audits
- apply retro-commissioning
- use LED lighting
- implement energy management systems
- promote behavioural changes
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With this case study you will see:
- Which are the most important impacts (material issues) Mandarin Oriental Hotel Group has identified;
- How Mandarin Oriental Hotel Group proceeded with stakeholder engagement, and
- What actions were taken by Mandarin Oriental Hotel Group to decarbonise its operations
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What are the material issues the company has identified?
In its 2016 Sustainability Report Mandarin Oriental Hotel Group identified a range of material issues, such as guest engagement on sustainability, supply chain management, human rights and diversity, biodiversity, local community impacts. Among these, decarbonising its operations stands out as a key material issue for Mandarin Oriental Hotel Group.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Mandarin Oriental Hotel Group engages with:
| Stakeholder Group | Method of engagement (in 2016) |
| Guests
| · Guest Satisfaction Survey · Solicitation of Direct and Target Feedback to Inform Quality Programmes |
| Colleagues
| · Colleague Engagement Survey · Career Development Plans and Performance Reviews · Hotel Corporate Responsibility Committees · Safe, Sound and Sustainable Programme |
| Owners and developers
| · Close Partnerships and Regular Communications Throughout Design, Development, Construction and Management of Properties |
| Local communities | · Participation in Local Stakeholder Groups Including: – Hotel Associations – Chambers of Commerce – Business Development Councils – Convention and Visitors’ Bureaus and Promotion Organisations – Travel and Tourism Associations – Community Benefit Organisations – Local Heritage Preservation Initiatives – Training and Local Talent Retention Organisations – Local Collectives for Recycling – Employer Organisations and Professional Associations |
| Shareholders | · Ongoing and Routine Discussions With the Controlling Shareholder Jardine Matheson Group on Financial Performance, Risk Management and other current issues · Financial and Sustainability Reporting · Shareholder Feedback Mechanisms |
| Vendors, suppliers and contractors | · Supplier Meetings to Discuss Sustainable Sourcing Opportunities · Food and Beverage Conference · Partnerships with Local Farmers, Ranchers and Fisheries |
| Industry peers and trade associations | · Participation in World Travel and Tourism Council’s Task Force on Industry Strategies for Climate Change · Participation in Industry Hotel Carbon and Water Measurement Initiatives · Monitoring and Evaluating Industry Corporate Responsibility Initiatives |
| NGOs and outside advisors | · Interviews and Panel Discussion to Discuss Opportunities to Improve Corporate Responsibility Programmes and Reports |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Mandarin Oriental Hotel Group organised a stakeholder panel that integrated perspectives from several organisations, which included Conservation International, the International Tourism Partnership, National Geographic Traveler, the United States Green Building Council and the World Wildlife Fund.
What actions were taken by Mandarin Oriental Hotel Group to decarbonise its operations?
In its 2016 Sustainability Report Mandarin Oriental Hotel Group reports that it took the following actions for decarbonising its operations:
- Carrying out energy audits
- Mandarin Oriental Hotel Group conducts, as part of its Safe Sound and Sustainable programme, energy audits, according to ASHRAE’s (American Society of Heating, Refrigerating and Air-Conditioning Engineers) Procedures for Commercial Energy Audits. These audits consider each hotel’s particular requirements and target specific mechanical functions, such as chilled water or hot water production.
- Applying retro-commissioning
- When a testing and commissioning process implemented as part of a project handover has been ineffective or a specific area of concern is identified during an energy audit, Mandarin Oriental Hotel Group applies a retro-commissioning process. The retro-commissioning process is also implemented, more comprehensively, when there are significant operational changes, because of renovations or extensions of a property.
- Using LED lighting
- Mandarin Oriental Hotel Group has set a goal of switching to LED lighting in all its hotels by 2020. Accordingly, it has installed LED lighting in guestrooms, banquet areas, restaurants, corridors, parking garages and back-of-house areas across its hotels and residences.
- Implementing energy management systems
- Today, 88 per cent of Mandarin Oriental Hotel Group’s hotel rooms are equipped with automatic systems that reduce energy consumption when guestrooms are unoccupied. In addition, as part of its guestroom renovation, Mandarin Oriental, Washington DC upgraded its smart, in-room energy management systems.
- Promoting behavioural changes
- Mandarin Oriental Hotel Group seeks, through regular measurement and monitoring, using sub-metering when possible, to encourage behavioural changes. Hence, management at One Hyde Park (the Group’s residences in London) started monitoring utility consumption of all residents’ apartments and investigate abnormal usage. As a consequence, some simple behavioural change opportunities were identified for landlord-controlled areas, along with opportunities to reduce costs for residents.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standards addressed in this case are:
1) Disclosure 302-1 Energy consumption within the organization
2) Disclosure 302-3 Energy intensity
3) Disclosure 305-4 GHG emissions intensity
Disclosure 302-1 Energy consumption within the organization corresponds to:
- Sustainable Development Goal (SDG) 7: Ensure access to affordable, reliable, sustainable and modern energy for all
- Business theme: Energy efficiency, Renewable energy
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Energy efficiency, Transport
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: Energy efficiency
Disclosure 302-3 Energy intensity corresponds to:
- Sustainable Development Goal (SDG) 7: Ensure access to affordable, reliable, sustainable and modern energy for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 12: Ensure sustainable consumption and production patterns
- Business theme: Energy efficiency
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: Energy efficiency
Disclosure 305-4 GHG emissions intensity corresponds to:
- Sustainable Development Goal (SDG) 13: Take urgent action to combat climate change and its impacts
- Business theme: GHG emissions
- Sustainable Development Goal (SDG) 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development
- Business theme: Ocean acidification
- Sustainable Development Goal (SDG) 15: Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
- Business theme: Forest degradation
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References:
1) This case study is based on published information by Mandarin Oriental Hotel Group, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page
3) https://g4.globalreporting.org/Pages/default.aspx
4) https://www.globalreporting.org/standards/gri-standards-download-center/
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