Responsibility Report - Carlson
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Responsibility Report - Carlson

Contents1 Introduction2 Rezidor in Short4 Message from the President and CEO5 Rezidor Responsibility Timeline6 Stakeholders and Policy7 Organisation and Tools9 Pillar 1: Taking responsibility for the health and safetyof employees and guests11 Interview with Eirik Bergvoll, General Manager12 Pillar 2: Respecting social and ethical issues in thecompany, as well as in the community15 Interview with Niara Mohamed,Responsible Business Coordinator16 Pillar 3: Reducing our negative impact on the environment19 Interview with Bob Burns, Regional Engineer20 Environmental Certifications21 Summary of Progress24 Global Compact Compliance25 About the ReportSince June 2007, Rezidor’s corporate charity organisation isWorld Childhood Foundation. Through various fund-raisingactivities at hotel and corporate level, the company raisedTEUR 60 for Childhood in 2010. Read more on page 14.

INTRODUCTIONRezidor’s Responsible Business programme builds on the principles of sustainable developmentand the triple bottom-line, where all hotels shall strive to take economic, social, ethical andenvironmental issues into consideration when making decisions in their everyday work.The purpose of this Rezidor Hotel Group2010 Responsibility Report, published in conjunctionwith the 2010 Annual Report, is tohelp our key stakeholders to value, assess andunderstand the operations of The RezidorHotel Group with regard to three pillars of theResponsible Business programme.The three pillars ofResponsible Business1. Taking responsibility for health andsafety of employees and guests2. Respecting social and ethical issuesin the company, as well as in thecommunity3. Reducing our negative impact onthe environment.Origins of Responsible BusinessTaking responsibility for the environment andlocal community has been an important partof Rezidor’s broader commitment to sustainabledevelopment since our first environmentalpolicy in 1989. In 2001, this commitmentwas fortified and placed within the scope ofthe award-winning Responsible Business programme.Fully aligned with the company’score business objectives, Rezidor’s ResponsibleBusiness programme was instated toincrease awareness and readiness to handlerisks and reduce costs, but also as a means tocapture opportunities in the process ofachieving the goal of being an industry leaderwith solid long-term profitability.At Rezidor, we acknowledge that thesafety and security of our guests, employeesand property is an imperative aspect of hoteloperations. Maintaining the necessary levelsof safety and security is dependent on theeveryday actions of every employee at everylevel in every hotel and every Rezidor office inevery country. We have a structured riskmanagement formula entitled TRIC=S whichpromotes proactive behavior throughout thecompany. TRIC=S stands for Threat assessment+ Risk mitigation and management +Incident response preparedness + Crisis management,communications and continuity =Safe and Secure hotels.The Rezidor Hotel Group | Responsibility Report 2010 1

Rezidorin shortThe Rezidor Hotel Group is one of the fastest growing hotel operators in the world.The hotels in our portfolio are operated underthree core brands, Radisson Blu, Park Inn byRadisson and Hotel Missoni. We develop andlicense Radisson Blu and Park Inn by Radissonin Europe, the Middle East and Africa (EMEA)under Master Franchise Agreements withCarlson, a global, privately held hospitalityand travel company. Hotel Missoni, is operatedunder a worldwide licensing agreementwith the Italian fashion house Missoni. By theend of 2010, Rezidor had more than 310hotels (circa 66,000 rooms) in operation andalmost 100 hotels (circa 21,500 rooms)under development in more than 60 countriesacross EMEA.Rezidor is focusing on hotel management.Currently, all hotels in Rezidor’s portfolio areeither operated by Rezidor itself under alease or a management agreement, or by aseparate operator using one of the Rezidorbrands under a franchise agreement. ResponsibleBusiness programme is encouraged at allhotels, including franchised properties, andcorporate offices.Rezidor Responsibility Performance Indicators2010 2009 2008 2007Energy/m 2 (kWh) Radisson Blu 285 279 292 308Energy/m 2 (kWh) Park Inn by Radisson 304 290 308 350Water/ Guest Night (litres) Radisson Blu 433 415 461 475Water/ Guest Night (litres) Park Inn by Radisson 327 358 375 403Waste/ Guest Night (kg) Radisson Blu 1.49 1.69 1.70 1.74Waste/ Guest Night (kg) Park Inn by Radisson 1.39 1.51 1.77 2.16Medallia Guest Satisfaction Environmental Conscientiousness 8.1 7.9 – –Climate Analysis Employee Satisfaction score 86.7 85.7 85.1 85.1Average 3T Monitor Safety and Security self-audit score 92.9 93.7 92.3 91.42 The Rezidor Hotel Group | Responsibility Report 2010

Rezidor hotels in operation in 20102 11115262058 24 2518472143210711721472221243 1215111111111142112311411 11211111156511511111Others4 1The Rezidor Hotel Group | Responsibility Report 2010 3

Message from the President and CEOWelcome to one ofthe “World’s MostEthicalcompanies”2010 was Rezidor’s third consecutive record year of hotel openings and we are proud that more andmore places around the world are discovering that our hotels are great places to stay, great places towork and that we have great brands for owners to invest in.Profitable growth is key to the long term successand stability of our company, but onelook at the finite and sometimes seeminglyshrinking size of our planet and the resourcesit contains always reminds me of the sharedresponsibility we have to take care of oursmall, spinning sphere.Rezidor has a long history of being aresponsible company with environmental andsafety and security programmes that startedwell over 20 years ago and that have beendeveloped, improved and expanded continuallyever since. For this we are grateful to ourmotivated employees who deliver ResponsibleBusiness each day and to our owners who havealigned their operations with our approach andwhose support of our efforts is invaluable.The success and value of these programs isalso benefitting our brands globally as CarlsonHotels Worldwide in 2010 adopted the Livingand Leading Responsible Business trainingprogrammes developed by Rezidor. An agreementwas also signed with Carlson to developsafety and security programmes jointly, combiningresources for the benefit of all guests,employees and owners of our brands globally.Today, we openly acknowledge that alongwith our increasing size, which may give usgreater visibility and influence in the marketplace,we have an increased opportunity totake on an even greater share of that responsibility.Especially in our interconnected andinterdependent world, we feel that powerand influence can be used not to becomeeven more powerful and influential, but tobecome more responsible.Therefore one of the real highlights for methis year was when Rezidor was chosen asone of the World’s Most Ethical Companiesby the Ethisphere Institute.We will continue our commitment towardsexpanding our company responsibly anddeveloping, operating and franchising hotelsthat will be seen as positive examples providingexcellent, sustainable services andemployment opportunities in their communities.Kurt Ritter, President & CEO4 The Rezidor Hotel Group | Responsibility Report 2010

Rezidor Responsibility Timeline1988• Creation and adoption of the SAS InternationalHotels Safety and Security Standards1989• First environmental policy driven by SASGroup1996• Launch of the Radisson SAS environmentalprogramme with 24 action points• Founding member of the InternationalHotels Environment Initiative1997• Safety and Security Manual replaced byEmergency Management Binder in a riskassessment format allowing it to be used inall properties2001• Launch of the Responsible Businessprogramme encompassing the three pillarsof health and well-being, social and ethicalresponsibility, environmental responsibility• Responsible Business Coordinatorsappointed and trained• First Responsible Business Training initiatedwith 35% of staff trained by year-end• Monthly reporting of energy, water andwaste• Save the Children becomes corporatecharity organisation2003• Launch of Hotels Environment ActionMonth (now Responsible Business ActionMonth)• Radisson Blu Plaza Hotel, Oslo, is firstRezidor property to receive third partyenvironmental certification with theNordic Swan eco-label• Rezidor becomes chair of InternationalHotels Environment Initiative ExecutiveCommittee2004• Awarded “Worldwide Hospitality Award forEnvironmental Protection”• Development of internet based databasefor environmental legislation with self-auditand quarterly updates• Carlson Companies signs ECPAT Code ofConduct against sexual exploitation ofchildren2005• First Rezidor Responsible Business Awardgiven to Radisson Blu St Helen’s Hotel,Dublin, at Annual General Managerconference2006• Responsible Business programme awardedHOFTEL Owner-Friendly Innovation of theYear2007• Launch of Responsible Business BestPractice database• World Childhood Foundation becomescorporate charity organisation• Rezidor is first international hotel group tooffer guests carbon offsetting• Emergency Management Binder renamedRisk Management Binder and directly linkedto introduction of 3T Monitor Online RiskManagement program and the TRIC=Sformula2008• Roll-out of new Living and LeadingResponsible Business training for allemployees• Launch of• Monthly TRIC=S reports distributed to allGeneral Managers.• Rezidor one of the founding members ofUnited States State Department OverseasSecurity Advisory Council (OSAC) HotelSecurity Working Group.2009• Signed up to the United Nations GlobalCompact2010• We are named one of the “World’s MostEthical Companies” by the EthisphereInstitute• Half of hotels are eco-labelled and counting• Entered agreement with Carlson companiesfor Rezidor to lead a joint effort to furtherdevelop and align safety and securityglobally for the companies and their brands.The Rezidor Hotel Group | Responsibility Report 2010 5

Stakeholders and PolicyStakeholders and PolicyAs a dynamic international hotel company with three core brands operating andunder development in over 60 countries, we recognise that we have an impact ona wide selection of stakeholders, either directly or indirectly.The basis for identifying and selecting our keystakeholders with regard to Responsible Businessrelates primarily to the extent to whichwe influence or impact them: economically,socially and environmentally. We attempt toestimate the interdependence between Rezidorand these stakeholders and focus ourefforts where we have the potential to makea difference. However, our stakeholders mayhave differing, even contradictory expectations,so we must work hard to balance these.Thus the table below lists our key stakeholders,our main policy objectives in relation toeach, and what we believe to be their expectationsin relation to Rezidor.These objectives below are realisedthrough suggestions for actions, reinforcedby performance-based targets. The Summaryof Progress table from page 21 lists ourkey performance indicators, commitmentsand targets and achievements for the year2010.Stakeholder Responsible Business Policy ExpectationsEmployeesCustomersProperty OwnersShareholdersSuppliersAuthoritiesCommunityEnvironmentWe shall educate and facilitate for our employees to makea conscious decision in favour of environmental, ethical andsocial issues in their private and work lives.We shall inform and make it easy for our guests to participatein Responsible Business related activities at our hotels.We shall work together with property owners to find innovativesolutions that satisfy our economic, environmental and socialobjectives.We shall provide shareholders and investors with timely, accurateand transparent information on Responsible Businessrelated risks and opportunities.We shall strive to purchase products that have a reduced environmentalimpact during their lifecycle, from suppliers thatdemonstrate environmental and social responsibility.We require our managers to abide by local and internationallegislation, especially regarding labour laws, health and safety,human rights and the environment.We shall take an active role in the international responsiblebusiness community, and contribute to the local communitieswhere we operate.We shall do our utmost to continuously improve our performancein the areas of energy, water, chemicals, and resourceconsumption, and waste generation in order to reduce ournegative impact on the environment.Fair and equal treatment; secure and safe working environment;training and career progress; fair pay.Leading service; good value for money; flexible approach; environmentallyresponsible; good global coverage; benefits andgenerous loyalty programmes.Good returns from property management; high level ofsecurity.Transparent information; sound strategy and corporate governance;high return on investment; minimisation of risks.Fair and equal treatment; value-based pricing.Compliance with rules and regulations; financial contributions(taxes and fees).Forming an active and responsible part of society; sponsorshipsof projects; contribution to infrastructure; contribution toattractiveness of destination.Reduced consumption of energy, water, and chemicals;resource-efficiency; biodiversity protection; minimisation ofwaste and emissions; responsible; purchasing; sustainabletransport.6 The Rezidor Hotel Group | Responsibility Report 2010

Organisation and ToolsOrganisationResponsible Business endeavours to capitalise on both top-down and bottom-upapproaches to ensure maximum engagement and greatest impact.BoardThe Rezidor Board is fully committed to not only supporting the company’s Responsible Business programme but the Board alsoactively helps drive development of the programme. This active involvement has played a key role in expanding the scope of theResponsible Business and making it an integral part of all hotel operations. Corporate OfficeRezidor has a dedicated Responsible Business department providing hotels with ongoing support to implement Responsible Businesspractices. The Responsible Business department in turn collaborates with other key departments such as Safety and Security andHuman Resources as well as Technical Development, Sales and Marketing, Food and Beverage, Business Development and Finance toensure Responsible Business is integrated into all aspects of Rezidor’s operations. The Corporate Responsible Business Departmentreports to the Executive Committee. Regional Responsible Business CoordinatorsThere is also a regional framework in place for Responsible Business, supporting the hotels at a regional level and providing a liaisonbetween the hotels and the corporate Responsible Business team. This helps ensure Responsible Business is integrated consistently acrossall regions; all employees are fully engaged in the programme; and the capturing of bottom-up efforts. The 15 Regional Responsible BusinessCoordinators meet twice a year, where they are informed about and discuss the most recent developments and plans for theResponsible Business programme. General ManagerThe General Manager of the hotel is ultimately responsible for the hotel’s Responsible Business activities and our General ManagerCertification Programme, which is mandatory for all General Managers, includes a dedicated Responsible Business session as well asspecific sessions on security and Crisis Management. Responsible Business CoordinatorThe Responsible Business Coordinator leads the Responsible Business Team consisting of employees from different departments and alllevels at each hotel. Together they review current practices and implement Responsible Business across all departments and reporttheir progress to Corporate Office.The Rezidor Hotel Group | Responsibility Report 2010 7

Organisation and ToolsResponsible Business ToolsResponsible Business ManualLet’s take responsibilityResponsible Business TrainingOur unique Living Responsible Business andLeading Responsible Business training modulesare mandatory for every Rezidoremployee within 90 days of their arrival. LivingResponsible Business is a 2.5 hour energetic,practical and interactive mandatorysession for all employees at all levels. It aimsto help participants understand our impactand how each individual can make a differencein their daily life, both at home and atwork. Leading Responsible Business is anadditional model targeting Heads of Departmentsand General Managers to ensure theylead by example and empower employees toget involved.Responsible Business ManualThe Responsible Business Manual begins withthe very first steps that involve the appointmentof a Responsible Business Coordinator,the creation of a Responsible Business Team,and the assessment of initial environmentaland social performance of a hotel. It alsoincludes information on how to organiseeffective Responsible Business meetings,progress with Action Plans that are tailormadeto fit each hotel, and suggestions onhow to best communicate results externallyand internally. In addition, once hotels havetruly progressed towards the level ofResponsible Business excellence, the Manualincludes guidance on how hotels can receiverecognition for their outstanding achievements.Responsible Business IntranetOur continuously updated intranet containsinformation about standards and policies;reporting requirements and guidelines; acomprehensive best practice database; collateraland communication templates; fundraisingtips for World Childhood Foundation;information on certification and awards andother useful resources.Safety and Security ToolsAll of our hotels have access to our onlineself-audit risk management tool that guidesthem through the Four Cornerstones ofGuest Safety, Employee Safety, Fire Safetyand Operational Security, helping them toensure their internal policies, training programs,awareness and preparedness areunder continuous review. Additionally, thesystem links them directly to a library of goodpractices developed and implemented at ourhotels. Monthly TRIC=S reports are sent to allhotels and corporate offices showing developingthreat trends, incident patterns, statusof risk mitigation programs and other information.These reports are also linked to thelibrary or external resources where hotels canacquire further knowledge or resources toassist them in staying ahead of the threatcurve.8 The Rezidor Hotel Group | Responsibility Report 2010

Pillar 1Pillar 1:Taking responsibility for the healthand safety of employees and guestsRezidor strives to provide a responsible and healthy environment forour guests and employees.Healthy hotelsOur Responsible Construction and RenovationGuidelines demand high indoor air qualityand accessible rooms and facilities. 48% ofhotels are now completely smoke-free andwe are continually increasing the number ofnon-smoking guest rooms from the current80%. We also facilitate the well-being of ourguests by offering exercise and sport facilitieswith gyms, swimming pools and spas. Moreover,we endeavour to ensure that we providefresh and wholesome food. We continue tooffer a wide variety of healthy options at ourrestaurants. Our hotels endeavour to accommodateguests with food allergies, and 33%of hotels have allergy tested guest rooms.Hotels also increasingly offer organic (67%)and fair trade (86%) products. Within ourconcepts such as RBG and Fillini, ResponsibleBusiness is incorporated through the eliminationof unsustainable ingredients such asbluefin tuna and the promotion of local seasonalfood.Keeping people safe and secure –it’s TRIC=S without magicRezidor has a safety and security programmedesigned to protect guests, employees andowners’ investments while maintaining oreven enhancing guest and employee satisfaction.The acronym TRIC=S stands for the followingformula: Threat Assessment + RiskEvaluation and Mitigation + IncidentResponse Preparedness + Crisis Management,Communications and Continuity =Safe, Secure and Sellable hotels.We have a structured risk managementagenda with proactive behaviour, gatheringand sharing information throughout the company.The lines of communication regardingsafety and security issues are kept open andthe focus is on prevention. In addition tonews and media monitoring, Rezidor maintainssubscriptions to third party risk analysisand alert services. We also encourage ourhotels to actively engage in safety and securityrelated forums on a local level.Brain Food is a new nutritional formulaour Danish hotels have developed formeetings and conferences in close cooperationwith Christian Bitz. The producthelps ensure that all meeting participantsremain healthy and alert all the waythrough a meeting. We serve food thatkeeps blood sugar levels stable and providesoptimal nutrition for the brain, soyour meeting participants maintain a highdegree of brain activity and reactivity.Fresh locally sourced ingredients are mostnutritional. They taste the best, and arebest for the environment, so naturally,they form the basis of the food we prepare.At Rezidor we understand that maintainingthe high levels of safety and security thatguests, employees and owners rightfullyexpect is only achievable through the everydayactions of every employee at every levelin every hotel in every country. One of thefoundations of the programme therefore isEmployee Safety. We encourage employeesto report dangers or aberrations, take immediateaction to prevent injury or damage, andto follow-up and ensure that dangers areremoved and abnormalities corrected.The ChallengesWe also acknowledge that the hotel andtourism sector is highly dependent on thepublic’s perception of health and securityrisks. Security scares can reduce demand forhotel and tourism services. We believe thatby having a dynamic and robust safety andsecurity program and by openly engaging ourstakeholders, we can help ensure that perceptionis based on the reality of the fact thathotels today are very safe and comfortableplaces to stay.The Four Cornerstone Building Blocksfor TRIC=SIn the mid-1990’s we took steps designed toalign the Safety and Security programmemore closely with our operations when wedesigned building blocks that make up thefour cornerstones of our programme: GuestSafety and Security, Employee Safety andSecurity, Fire Safety and Operational Security.To remove some of the taboo and mystiquethat often surrounds security-relatedissues, we defined very simple, understandablegoals for each cornerstone: No guestshould become ill, injured or suffer loss duringtheir stay; No employee should become ill,The Rezidor Hotel Group | Responsibility Report 2010 9

Pillar 1injured or suffer loss at work; The risk of fireshould be kept to a minimum and we shouldbe able to detect fire quickly and limit anydamage caused and; for Operational Security:we should be able maintain uninterruptedhotel operations and have plans in place tolimit the impact of a disruption both in lengthand degree. Simple, understandable, doable.The Evolution of TRIC=STraditionally, safety and security was aboutplanning appropriate responses to incidentsthat could occur. Incident response howeveris only part of the equation that creates aformula for cementing the four cornerstonestogether into a solid foundation for safe andsecure hotel operations. A one size fits allmanual is not sufficient support to our diversecollection of hotels. Instead we use an onlineself-audit system linked directly to a libraryof good practice examples collected from ourhotels. The self-audit routinely guides hotelsthrough a comprehensive and completereview of their local safety and security programhelping them keep policies updated,implement procedures adapted to their needsand means, and complete training programmesregularly for their staff. In 2010 arecord 250 hotels used this tool and at yearendthere was an average 96.3 compliancewith set objectives. Amongst the 250 hotelsthere is also a growing number of franchiseproperties for whom the system is madefreely available.Yes I Can! – Always CareYes I Can! is our company vision at Rezidorand the “Always Care” motto for our Safetyand Security programme was inspired by thisvision of taking personal responsibility andshowing “Yes I Can” hospitality. “Always Care”says that if we care about people, care aboutproperty and care about the world around us,we will also take personal responsibility inprotecting these vital elements in our lives.It is therefore everyone’s responsibility to“Always Care”.Communicating at all levelsThe success of our Safety and Security programmeis meeting the ongoing challengeswe face, monitoring threat developmentsfrom pandemics to crime to terrorism, globallyand locally, whether they are slowly bubblingup under the surface or rapidly burstingonto the scene. Every month we thereforeshare a TRIC=S report with all of our hotelsand operational units. It includes an overviewof our threat assessments, input on the riskmanagement programme, examples of incidentsand prevention activities as well asinformation on crisis management and communicationstraining and other informationrelating to the safe and secure operations ofour hotels and our company. The simplereport is linked directly to support documentsand by clicking the links the hotels canquickly learn more about how a threat couldaffect them, how a risk can be removed ormitigated and how hotels have handled incidentssuccessfully. This keeps our programmevery dynamic, allows us to learn from eachothers’ experiences and helps us to continuouslyimprove the information and the goodpractice library our hotels can access. Thereports are very much a result of a two-waycommunication between the individual hotelsand the corporate offices they report to.Cooperation at all levelsWe advise our hotels to play an active role intheir local community crime prevention programs,regional or national hotel associationsand other groups that can help them adapttheir safety and security programs to meetlocal needs and requirements as well as toshare information and good practice that canbenefit others.At corporate level Rezidor is an originalmember of the US Overseas Security AdvisoryCouncil (OSAC) hotel security workinggroup and actively involved in other programssuch as serving on ASIS International’s Hotel,Entertainment and Tourism Council and contributingto a United Nations InterregionalCrime and Justice Research Institute projectto develop a handbook on public-privatepartnership models.Tomorrow’s TRIC=SWe live in a world of real-time communicationsand a world where responsibility forensuring safety, security and protection ofinfrastructure is increasingly being shiftedfrom government offices and agencies to theprivate sector. This brings a new wave ofchallenges where we not only have a duty tocare but we must perform this duty knowingthat our actions will be visible. Our TRIC=Sprogramme has been developed to meetthese new demands of transparency andaccountability.An external review of our Corporate Securityand the TRIC=S programme by the UKbased consultancy firm BGN Risk in 2009concluded: “This model is providing value formoney but more importantly it is protectingcompany assets, employees and customers.”We feel confident that the built in dynamicsin our programs will assist us in continuing tomeet the challenges we face.In their review, BGN Risk also stated thatour program was versatile, functionally relevant,scalable for expansion and could beapplied in any location. In November 2010 anagreement was signed so Rezidor will assistCarlson with the further development of corporatesafety and security processes and willbring the corporate safety and securityguidelines of both companies closer togetherproviding a global umbrella of safety, securityand resilience for our brands.10 The Rezidor Hotel Group | Responsibility Report 2010

Pillar 1Eirik Bergvoll, General Manager at RadissonBlu Hotel in JohannesburgThe Soccer World Cup in South Africa was a successful test ofthe Rezidor Safety and Security System.“A structuredResponsibleBusinessapproach isfundamentalfor success inAfrica”-The planning for the safety and securityfor the Soccer World Cup 2010 in SouthAfrica started one year before the event,says Eirik Bergvoll, General Manager atRadisson Blu Hotel Sandton in Johannesburg.The World Cup was a practical test ofRezidor’s TRIC=S formula, which stands forThreat assessment + Risk evaluation + Incidentresponse capability and + Crisis managementpreparedness = Safe and SecureHotels. TRIC=S is part of the ResponsibleBusiness programme and has been practicedfrom the opening of the hotel in 2008.Prior to the World Cup numerous securitydelegations from corporations and celebritiessuch as royalties and heads of statesconducted security site inspection of thehotel. During the event they had their ownsecurity details that needed to be coordinatedwith the Radisson Blu securityarrangements.Before and during the World Cup thehotel used the expertise of OSAC (OverseasSecurity Advisory Council) of the USDepartment of State. During the event thehotel management received daily updatesfrom OSAC as well as security briefs relatedto the event’s security. The Radisson BluHotel also stayed in close liaison with thelocal authorities and other hotels in thearea. Everything went perfectly well andthe guests and employees were happy duringthe sporting event.-The local organisers did a fantastic job,says Eirik Bergvoll, to avoid problems withlogistics deliveries were made during thenight.Generally, guests are expecting high levelsof safety and security to be able to havea good and safe visit experience. Training ofall employees in safety and security is of theutmost importance to keep up the highstandard of Rezidor. TRIC=S is considered tobe an industry-leading initiative and hasgained international respect.After the event the safety and securitymanagement team of the hotel collectedfrequently asked questions and made astandard presentation that could be usedfor any potential customer to get a quickoverview of safety and security at thehotel. This presentation is now also used byother hotels in the group as Rezidor’s bestpractice.The Rezidor Hotel Group | Responsibility Report 2010 11

Pillar 2Pillar 2:Respecting social and ethicalissues in the company, as well asin the communityThere is no doubt that the highlight for Responsible Business at Rezidor in 2010 was ourrecognition by the Ethisphere Institute as one of the “World’s Most Ethical Companies” (WME).This is the fourth year Ethisphere, a thinktankdedicated to the creation, advancementand sharing of best practices in business ethics,corporate social responsibility, anti-corruptionand sustainability, has published theWME rankings. Through in-depth researchand a multi-step analysis, Ethispherereviewed thousands of nominations fromcompanies in over 100 countries and 36industries in order to determine the winners.“Rezidor’s promotion of a sound ethical environmentshines within its industry and showsa clear understanding that operating underthe highest standards for business behaviourgoes beyond goodwill and “lip-service” and isintimately linked to performance and profitability,”said Alex Brigham, Executive Directorof the Ethisphere Institute. “This year’sWorld’s Most Ethical Companies award wasmore competitive than ever, because companiesrealise that making ethics a priority iscritical amidst a tough economic environment.”Thus we are very proud that our pledge tobuild our company on a solid ethical foundationhas been acknowledged. Taking responsibilityis at the core of how we operate andwe have already demonstrated the strengthof our commitment through our signing ofthe United Nation’s Global Compact, theworld’s largest voluntary corporate responsibilityinitiative, in 2008. In signing the GlobalCompact we committed to aligning our operationsand strategies with ten universallyaccepted principles in the areas of humanrights, labour, environment and anti-corruption.A description of the policies and processeswe have put in place to enforce theseprinciples can be found on page 24.Code of EthicsWe believe the strength of a company startswith a deep commitment to ethics from thetop and is sustained with an unwavering dedicationto these same high standards fromemployees at every level. To guide hotel andregional office staff, management andemployees alike, about how we want to operateour business and our way of life, Rezidorlaunched a Code of Ethics in spring of 2008.The Code of Ethics and Business Conductcontains rules and guidelines for our businessconduct and responsibilities vis-à-vis colleagues,customers, guests, suppliers, shareholders,authorities and the world at large.Every employee is introduced to Rezidor’sethical culture and Code of Business Ethicsthrough the Living Responsible Businesstraining programme. This foundation isexpanded and promoted widely within Rezidorfrom the STAR supervisor developmentprogramme, to internal audit training and allthe way up to our internal General ManagersCertification Programme. It is furthermorereflected in the “Always Care” motto of thegroup’s Safety and Security programme.Any employee with concerns or questionsabout the Code is encouraged to raise thesedirectly with their supervisor. Serious or sensitiveconcerns regarding the Code or a possiblebreach of the Code can also be reportedanonymously through Thisis managed by a third-party, Ethics Point,which ensures that reports are swiftlybrought to the attention of the appropriateperson or persons at Rezidor. In 2010 weenhanced this website to ensure employeesare confident of its independence and arecomfortable reporting their concerns.Transparency and Anti-CorruptionRezidor does not make any contributions orgive other support, direct or indirect, topolitical parties or individual politicians. TheThe Code of Ethics in short:1. We respect the law2. We show respect for all persons inall situations3. We think ethically4. We act fairly5. We do not discriminate againstanyone for any reason6. We are honest and transparent7. We are loyal to our employer8. We do not exploit the company’sresources9. We think of safety at all times10. We take care of the Earth12 The Rezidor Hotel Group | Responsibility Report 2010

Rezidor Hotel Group receives no direct norsignificant financial subsidies from governmentalorganisations in the countries wherewe operate hotels. However it is worth notingthat many hotels receive financial assistancefor Responsible Business initiatives in otherforms, for example:• Not only did Radisson Blu Hotel Baselreceive nearly TEUR 12 in support from thestate for new more efficient windows andlightening protection, the city of Basel alsorewards employers for reduced energyconsumption through their social insurancecontributions which resulted in a benefit ofover TEUR 12 for the hotel in 2010.• Together with Sund Resurs and City Akademin,Radisson Blu Hotel Malmo received agrant of TEUR 93 for a diversity managementproject.• In 2010 Radisson Blu Hotel Karsruhereceived a subsidy of TEUR 5 and a taxrebate of TEUR towards the installation of acombined heat and power generator andthey expect to benefit from a further TEUR31 over the coming years.• During 2010 Radisson Blu Resort & Spa,Malta Golden Sands received a grant of30% towards a new reverse osmosis plant;a grant of 50% worth TEUR 7 on the installationof three way valves on the property’sair conditioning units and a grant of 50%worth TEUR 11.5 towards the cost of newsegregated waste bins and a waste compactor.In some regions where Rezidor operatesthere are high risks related to corruption,thus the Code of Business Ethics is a valuabletool and management and staff are trained inthis regard. These issues are also covered inour internal control procedures. Rezidor takessubstantial measures to ensure that the ethicalbehaviour stated in the Code of Ethics isa core value in all business relationships. In2010 we also enhanced the governance programmefor our operations with a new anddedicated anti-fraud policy. The RezidorHotel Group has not had any significant incidentsregarding corruption or bribes causinglegal actions during 2010.Empowering EmployeesRezidor aims to be the employer of choice forour people. We care for our employees,involve them in our planning and decisionmakingprocesses and ask for their feedback.Our annual Climate Analysis, a group-wideemployee satisfaction survey conducted byan external independent party, shows us thatwe are on the right track. Since 1991, thefirst year when the analysis was conducted,and even during the challenging times of theglobal downturn, Rezidor ‘s Employee SatisfactionScore has steadily increased and currentlystands at 86.7– an outstanding resultwithin our industry and other service industriesworldwide.Taking into account all hotels, under allcontract types, a total of over 35,000employees were working under the Rezidorbrands during 2010. During the last year over2,500 jobs were created with the vast majorityof employees hired from local markets.The company counts no less than 140nationalities amongst the workforce, 57% ofwhich is male. All employees receive regularperformance and career developmentreviews at least on a yearly basis. Personnelcosts, such as wages, training and benefits,are by far the largest cost for the company,54.3% amounting to MEUR 278.9. Moreinformation on payroll cost and the split ofthese costs per country can be found underNote 10 of the Rezidor Annual Report 2010.Rezidor pays fair wages according toindustry standards and had no legal breacheswith regard to labour legislation last year.Rezidor respects the rights of employees tojoin trade unions if they so choose and tobargain collectively in accordance with locallaws. Pursuant to the European Union Directiveon works councils (94/45/ EC, the“Works Council Directive”) Rezidor hasestablished a European Works Council, whichhas been entered into by and between representativesof our central management andemployee representatives. This frameworkhelps regulate information and co-dependencyissues. Annual meetings are held,where issues such as the company’s finances,performance, future ventures and other paramountissues, are discussed with employeerepresentatives. Rezidor strives to handle alloperational changes in a transparent andopen fashion, with the goal of giving theemployees fair influence. When taking overan existing hotel, we endeavour to retain themajority of the employees of the earlier hotelbrand.Equal OpportunitiesA strong understanding and respect of culturaldifferences is essential to Rezidor’s successas we employ no less than 140 differentnationalities and we operate hotels in over 60countries. Diversity amongst the workforcein our hotels is as old as the hospitality industryitself. Experience across different hotelsand different countries is an integral part ofPillar 2any hospitality career. The Rezidor HotelGroup supports transfers throughout thehotels in all countries, enabling its employeesto grow with the company and to developthemselves. As much as we perceive ourguests to be individuals with individual needsand wishes, we also perceive our employeesto be individuals with individual backgroundsand cultures. Employees are hired for theirattitude and willingness to serve the guest.Cultural differences enable us as an employerand as a host to cater to the needs of our clienteleon an individual basis even better. Rezidor’sEqual Opportunities Policy states thatno discrimination due to age, race, religion,gender or disability is allowed, and all ourhotels have routines in place to ensure thisis the case.People Development and TrainingRezidor has for many years successfullyfocused on having a positive effect on thebottom-line through active people management.We offer a range of tools in order toattract and retain talented people by hiringattitude and training skills.Yes I Can! is also the driving force behindour company’s award-winning 5-step peopledevelopment programme. This programme isour tool to bring each of our employees to hisor her full potential, it respects the local culturalvalues of our 35,000 employees in over60 countries in which we operate, and itlooks after individual needs and different setsof skills and experiences. Our 5-Step PeopleDevelopment Programme is at the heart ofRezidor’s people development strategy. Thisprogramme allows for every ambitiousemployee to aim for the top, thanks to oursimple – but efficient – policy of recruitingfrom within. The programme covers five levelsof increasingly more advanced trainingand includes the mandatory New Hire Orientation,On-Job Skills, Yes I Can! and LivingResponsible Business.The Mentor Mentee programme waslaunched in 2000 to ensure that the inhabitantknowledge within the group will be takencare of and passed on to the future generationof General Managers. In 2010, 25 Menteeswere appointed to their first time GeneralManager assignment, representing up to30% of the General Manager appointmentsfor the year. Yet again during 2010, 95% ofRezidor General Managers came from withinthe company.The Business School @ Rezidor is an integratedpart of the 5 Step People DevelopmentProgramme since 1996. The BusinessSchool @ Rezidor has a wide range of coursesThe Rezidor Hotel Group | Responsibility Report 2010 13

Pillar 2Positive impact on an Egyptian CommunityNiara Mohamed, Responsible BusinessCoordinator at Radisson Blu Resort in Egypt“ResponsibleBusiness andcommunitywork isimportantbecause welive with thecitizens andthe hotel isdepending oncommunity.We are notalone”-Part of the Responsible Business objective isto have a positive influence and impact on thelocal community, says Niara Mohamed,Responsible Business Coordinator at RadissonBlu Resort, El Quseir in Egypt. She is thecoordinator between the hotel and the communityregarding social, ethical and environmentalissues. The resort runs a unique communitydevelopment centre with training forlocal people and opportunities for visitors toparticipate in the local culture.Here Niara tells us about the social andenvironmental activities conducted by thehotel in the community as part of ResponsibleBusiness Action Month in September:El Quseir Hospital DevelopmentProjectRadisson Blu Resort organised a repair campaignin cooperation with the city council forthe intensive care unit of El Quseir hospital.The resort assisted by sending its engineeringteam with maintenance supplies and providingthe intensive care unit with medicaldevices as well as mattresses, bed sheets andpillows. Managers from surrounding hotelswere invited to a conference arranged at theRadisson Blu Resort to share best practiceand to collect money for the hospital.HIV & Hepatitis C ConferenceIn partnership with the Ministry of Health andthe Health Directorate of the Red Sea a HIV &Hepatitis C conference was hosted to raiseawareness amongst staff and locals. The initiativewas a huge success with over 75 peopleattending. The Radisson Blu Resort providedtransport for people locally andeveryone attending the conference was providedwith information leaflets to share themessage further.Charity donation to people in needA charity donation event was organised atthe Resort in association with the NationalEgyptian Charity organisation Resala ElQuseir. As part of a wider campaign by Resalato raise funds for those in need, the hotelprovided 50 meals for members of the localcommunity in El Quseir and also collectedclothes donations from staff and guests,which were then distributed to the poor.Clean-up initiative at the beachEvery year one or two big clean-ups arearranged together with the Resala Association,RSEC Centre, Roaya Association, ElQuseir Sports Committee, El Quseir CityCouncil and the other hotels in the area. Theresort provided all volunteers with a t-shirt,gloves, garbage bags, refreshments andtransport to and from the beach. There wereabout 100 people cleaning from the participatingorganisations, as well as hotel staff andguests.Children’s Art exhibition to helplocal communityAn art exhibition was arranged in cooperationwith the Administration of Education andRoaya Association. The exhibition involvedthe display and sale of more than 150 piecesof children’s art from all of the local schools inEl Quseir. The proceeds of the sales wenttowards helping the local community. Theexhibition also serves to encourage talentedstudents to show their works. Funds raisedwere also given to the school to help developthe artists and buy new materials and equipmentfor the art department.Other examples of Communityinvolvement-Every year we are inviting handicapped childrento the hotel for the Handicap Day celebration,says Naira. Orphans are also invitedevery year to do activities in the hotel. Otherexamples of community involvement aredevelopment centre on jobsite training forstudents and entrepreneur training for thehotels school courses.The Rezidor Hotel Group | Responsibility Report 2010 15

Pillar 3Pillar 3:Reducing our negative impacton the environmentRezidor continues to focus on resource efficiency with regard to energy, water and wasteand widespread eco-labelling of hotels has allowed us maintain our strong environmentalperformance in 2010.Our continuous improvement was recognisedin 2010 through our inclusion in both theOMX GES Sustainability Nordic Index and theOMX GES Sustainability Sweden Index. GESInvestment Services – Northern Europe’sleading research and service provider forResponsible Investment – and NASDAQOMX, the world’s largest exchange company,calculate a number of sustainability and ethicalindexes on the Nordic markets, providinginvestors with an objective and reliablebenchmark for responsible investments. TheNordic Sustainability Index highlights the 50best rated companies on the Nordicexchanges, while the Sweden Index comprisesthe 30 best rated on the Stockholmexchange. Thus the indexes identify the leadingcompanies in terms of sustainability andRezidor is proud to be recognised for monitoringnot just the bottom line but the triplebottom line of environmental, social and economicperformance.At hotel level, we continued to pursuethird-party environmental certifications in2010 to ensure hotels are doing their utmostto reduce our environmental impacts. Thisyear 57 hotels received a respected eco-labelsuch as the Nordic Swan or ISO 14001 bringingour total number of eco-labelled hotels to150. For the most part, regional certificationsor eco-labels have been selected to ensurehotels perform to their maximum potential intheir respective countries, and also to takeinto account consumer awareness of theseschemes. In fact one challenge encounteredalong the way is the unavailability of environmentalcertifications or eco-labels in certainregions where Rezidor operates. Thus we areactively working with environmental organisationincluding Green Key to develop criteriaand pilot schemes at Rezidor properties. In2010 we helped introduce the Green Keylabel to Bahrain, Russia Saudi Arabia and theUnited Arab Emirates. A full list of certificationscan be found on page 20.Responsible Constructionand RenovationRezidor works actively to enhance resourceefficiency and to measure, monitor andreduce its carbon footprint and this requirescooperation with property owners, constructorsand architects. At the same time, inorder to minimise environmental impact andpromote efficient resource use from thebeginning of new projects, the use of smartdesign and best available technology is essential.To this end, our Responsible ConstructionEnergy/m 2 , kWh Water/guest night, litres Waste/guest night, kg5005002.54004002.03003001.52002001.01001000.5007 08 09 10Radisson Blu07 08 09 10Park Inn by Radisson007 08 09 10 07 08 09 10Radisson BluPark Inn by Radisson007 08 09 10 07 08 09 10Radisson BluPark Inn by Radisson16 The Rezidor Hotel Group | Responsibility Report 2010

Pillar 3 – Environment Pillar 3Park Inn StuttgartThe sustainability of the Südtor building,which includes the recently opened Park InnStuttgart, was a primary objective in theplanning stages. During the development ofthe building the following targets were set:• Highest possible insulation quality of thebuilding exterior, which is now 23% belowthe energy saving regulations, to minimisethe primary energy consumption of theentire building.• The use of energy efficient and low emissiongas powered facilities to produce theentire power and hot water demand for thebuilding as well as to contribute the excesspower into the local power grid.• The use of sustainable building materialswithout polluting elements in order to prolongthe life of the building.During the construction phase this criteriawas applied to ensure the sustainability of theentire project and minimise the biologicalimpact of the materials used. For the exteriorwalls as well as the ceiling structure a reinforcedconcrete without chemical additiveswere used which have been complimentedwith maintenance free fibred concrete panelsto achieve the high insulation specifications.In addition, the fully insulated flat roof is grasscovered. For the interior which includes floortextiles and components, interior walls the aircondition channels and ceiling finishes, onlymaterials without negative biological andecological impact. All installed maintenancefree windows throughout this building projectare 100% sound proof, at the highest insulationstandards and airtight.Not surprisingly this hotel has made significantsavings as a result of these measures.Use of energy saving light bulbs throughoutthe hotel as well as low voltage bulbs in publicarea where dimming is required results in anenergy saving of approximately 60%. Watersavingcisterns throughout the building useapproximately 10% less water in comparisonto regular cisterns. Low emission gas poweredfacilities heating a cooling entails a 0.2%CO 2emission and energy efficiency of around98%.The German Society for Sustainable constructionestablished extensive criteria toassess sustainable buildings which are at thehighest standard and exceed by far the existinglaw & regulation requirements. The certificationmarks are classed into Bronze, Silverand Gold. During a pre-assessment visit forthe Office part of the building a Silver Certificationwas achieved instantly. The same criteriacan be used for the Hotel part of thebuilding. An air quality measurement withoutfurniture achieved already excellent resultswhich confirm the use of sustainable materialsand their effective impact on the building aswell as the positive influence on the hotelguests.The Rezidor Hotel Group | Responsibility Report 2010 17

Pillar 3and Renovation Guidelines advise owners,developers and hotels how to best managetheir land in a productive and sustainablemanner.In 2010 Rezidor expanded the RegionalEngineering structure to include Germany inaddition to France and the UK. This structureaims to capitalise on regional synergies and tohave a direct impact on the bottom line as aresult of improved operational efficiency.There have been no environmentally relatedfines or spills at hotel or corporate level in2010.EnergyThe energy consumption of Rezidor hotelsconsists primarily of electricity, district heating,heating oil, natural gas, and LPG gas with22% of hotels using renewable energy tovarying degrees. Energy costs as a share ofRezidor’s total costs is 5.7% (5.6), and during2010 we spent TEUR 29,494 (25,658) onenergy related costs for leased hotels. Living& Leading Responsible Business training andan increasing proportion of eco-labelledhotels contributed to greater energy efficiencyin 2010. However, due to a significantrise in occupancy during the year, our traditionalperformance indicator energy permetre squared shows a slight increase.Rezidor is committed to contributing to mitigatingclimate change by continuouslyimproving the energy-efficiency of our operations.To this end 90% of guest rooms are fittedwith low-energy light bulbs; 70% of guestrooms have key card controlled power andlight-ing; 71% of hotels use occupancy sensorsor motion detectors to control lighting inintermittent use areas. At the same time 71%of hotels have a Building Management Systemin place and energy efficiency is an importantpart of the role of the Regional Engineeringstructure.EmissionsRezidor’s greenhouse gas emissions resultprimarily from our energy consumption andmainly consist of carbon dioxide emissions.We have calculated our emissions each yearsince 2006 in conjunction with the EdinburghCentre of Carbon Management. Theseassessments focus on energy related emissionsonly, as accurate conversion factors forwaste disposal or not yet widely available.Conversion factors used for energy sourcesare based on the World Business Council forSustainable Development Greenhouse GasProtocol and guidelines from the CarbonTrust. An assessment of the greenhouse gasemissions of Rezidor’s operations was undertakenin February 2011, based on 2010 data.In 2010, emissions from electricity, naturalgas, heating oil, district heating and LPG gasfor the 218 properties for which Rezidor hascomprehensive data amounted to 408,943tons CO 2equivalent. Our carbon footprint hasthus increased in absolute terms which is tobe expected with the large number of hotelsopened last year.As the bulk of our emissions come fromenergy and in this case electricity use, ourefforts to decrease emissions are concentratedon working towards energy efficiencyand shifting to renewable energy sources.Again we are particularly sensitive to theenergy sources used in the countries in whichwe operate hotels and the availability ofrenewable sources in the grid, which is why anumber of hotels are generating their ownenergy through technology such as photovoltaicpanels.WaterIn order to reflect the growing importance ofwater conservation in 2010 Rezidor adjustedhotel water reporting to include all waterused on site. Water for outdoor leisure facilitiesand irrigation are now taken into accountacross all regions. Thus, although water consumptionper guest night decreased by anoutstanding 9% for Park Inn by Radisson, wesee a slight increase for Radisson Blu whichhas more resort properties. In any case weremain confident of our water conservationefforts and our performance for both brandsis still far below the International TourismPartnership benchmark for environmentalexcellence. Ongoing employee training contributedto improved and more water-efficientroutines in housekeeping, kitchens andleisure facilities. In addition to conservingwater it is essential Rezidor manages thequality of the water we discharge. This can bein the form of grey water which has beenused in showers and sinks and still is relativelyclean. 6% of hotels have systems which canreuse this water to flush toilets while a numberof properties in hotter climates use thiswater for irrigation. At the same time, ourhotels frequently use rain water and evencondensation water for irrigation.Wastewater can also be in the form ofblack water which comes from toilets and issent directly to a sewage treatment plant forprocessing. In any case it is essential that weendeavour to avoid water contamination,through chemical use in housekeeping orkitchen residue for example, as much as possible.In order to reduce cleaning chemicalwaste we use pre-set dosage systems forcleaning chemicals. In the kitchen area, 91%of the hotels have a fat separation device inplace, to ensure that fat residue does enterthe water system.WasteSolid wastes are generated by many activitiesin our hotels like food preparation, prepackageditems consumed, guest waste, cleaningetc. We are proactively seeking to reduce ourresidual waste which would otherwise be sentto landfill or incineration. As part of LivingResponsible Business training, employees aretrained in waste management and the wastehierarchy: Reduce, Reuse, Recycle; and areempowered to make improvements wherethey see fit. 87% of hotels have a dedicatedwaste-sorting area while 66% of hotels havewaste-sorting equipment on house-keepingtrolleys. 67% of hotels return packaging tosuppliers while 40% of hotels provide wastesortingfacilities for guests in public areas. Wealso aim to purchase products that generateminimal waste through setting central andregional purchasing policies and avoiding disposableitems as much as possible. For example94% of hotels have refillable amenity dispensersin public washrooms.In 2010 we saw a 12% reduction in wasteper guest night at Radisson Blu propertieswhile at Park Inn by Radisson hotels thereduction was 8%. We believe these reductionswere achieved mainly due to the influenceof stricter waste management legislationin a number of countries, stringent recy-clingcriteria as part of environmental certificationsand increased employee awareness.Working with SuppliersA large part of our social and environmentalimpacts is derived from those of our suppliers.As an international hospitality companywe use a vast variety of products and themajority of our material use is in the form ofproducts we purchase from suppliers. Controllinghow and what we buy is an importantpart of our Responsible Business strategy. Forsome products where we buy large quantitiesand where we perceive the negative environmentalimpact to be high, we have set strictenvironmental performance demands. Moreover,all suppliers are required to sign Rezidor’sSupplier Code of Conduct and have theopportunity to further profile their ResponsibleBusiness performance to hotels throughRezPIN, Rezidor’s central purchasing programmeonline platform. Thus we try to positivelyinfluence our suppliers by providingincentives to develop environmentally soundproducts produced in a responsible way.18 The Rezidor Hotel Group | Responsibility Report 2010

Pillar 3Bob Burns, Regional Engineer at Park Inn,Heathrow, LondonThe Lighting programme alone saves approximately490 ton CO2 emissions per year“We are notsaving fortoday butsaving fortomorrow.We should beaware of thelong termbenefit”As part of its Responsible Business Programme,Park Inn Heathrow has undertaken ahuge task to change all the light bulbs in thehotel to long life energy saving light bulbs.-This project alone results in a reduction of948,761 kWh of electricity and a financialsaving of $80,000, says Bob Burns, DistrictEngineer at Park Inn Heathrow, London. Carbondioxide objectives are set every year andthe lighting project will result in 492 tons CO 2reduction in one year. That was a key factorwhen the hotel was recently awarded Goldstatus by the Green Tourism BusinessScheme.The 900 bedroom hotel implements a widevariety of initiatives to conserve energy andwater and to reduce waste. Bob Burns is alsoresponsible for other hotel propertiesbetween Wales and Birmingham and reviewsthe properties as part of the ResponsibleBusiness programme on an annual basis. Bobhas a task force role where he shares hisexpertise and experience by visiting otherRezidor Hotels about to be opened, forexample the Radisson Blu Resort & Spa Hotelin Dubrovnik and the Radisson Blu WaterfrontHotel in Stockholm.-We conduct yearly engineering audits,where we go through the building from roofto basement examining for example thetechnical condition of water storage tanks,electrical and heating systems, and the insulation,says Bob. After the inspections areport is written about things that need to bedone. The property manager and chief engineerdecide which measures to be taken,described in the Rezidor action plan. Theseengineering audits will be further spread toEurope and Russia.According to Bob, the main environmentalissues are utility usage such as water, gas andelectricity, and waste management. As mentionedbefore Park Inn Heathrow has successfullyconverted lighting and as a resultmade huge energy savings and obtained substantialcost reductions in one year. Thewaste consists mainly of food waste. Byincreasing recycling Park Inn Heathrow hassignificantly reduced the amount from 9 tonsto landfill per week to 5–6 tons per week.At the monthly staff information meetingsbriefs are also given on environment, waterand, light bulbs in addition to practicalreminders such as switching lights off. Theobjective is to change attitudes and behaviourby information and training. A trainingprogramme is planned for all engineers at theRezidor Hotels in the UK in 2011.The 13 hotels In the Heathrow Airport areameet regularly to share best practice.-Rezidor is considered to be the industryleader in Responsible Business and we areproud to share information to improve forexample waste removals and to be transparentand open minded about other environmentalissues, concludes Bob Burns.The Rezidor Hotel Group | Responsibility Report 2010 19

Environmental CertificationsEnvironmental certificationsEntreprise Ecodynamique (1)Radisson Blu EU Hotel, BrusselsGreen Hospitality Award, Ireland (11)Radisson Blu Hotel, Dublin Airport - Platinum AwardRadisson Blu Farnham Estate Hotel, Cavan - GoldAwardRadisson Blu Hotel & Spa, Cork - Gold AwardRadisson Blu Hotel & Spa, Galway - Gold AwardRadisson Blu Royal Hotel, Dublin - Gold AwardRadisson Blu St. Helen’s Hotel, Dublin - Gold AwardRadisson Blu Hotel & Spa, Limerick - Silver AwardRadisson Blu Hotel & Spa, Sligo - Silver AwardRadisson Blu Hotel, Cork Airport – Silver AwardRadisson Blu Hotel, Athlone - Bronze AwardRadisson Blu Hotel, Letterkenny - Bronze AwardGreen Globe (3)Park Inn MuscatRadisson Blu Hotel, Dubai-Media CityRadisson Blu Resort, El QuseirGolden Leaf Green Hotel Certificate (1)Radisson Blu Hotel, Beijing, ChinaHungarian Green Hotel Award (2)Park Inn SarvarRadisson Blu Béke Hotel, BudapestNordic Swan Eco-label (33)DenmarkRadisson Blu Falconer Hotel and Conference Centre,CopenhagenRadisson Blu H. C. Andersen Hotel, OdenseRadisson Blu Royal Hotel, CopenhagenRadisson Blu Scandinavia Hotel, AarhusRadisson Blu Scandinavia Hotel, CopenhagenFinlandRadisson Blu Hotel, EpsooRadisson Blu Hotel, OuluRadisson Blu Marina Palace Hotel, TurkuRadisson Blu Plaza Hotel, HelsinkiRadisson Blu Royal Hotel, HelsinkiRadisson Blu Royal Hotel, VaasaRadisson Blu Seaside Hotel, HelsinkiNorwayRadisson Blu Airport Hotel, OsloRadisson Blu Atlantic Hotel, StavangerRadisson Blu Hotel Nydalen, OsloRadisson Blu Hotel, ÅlesundRadisson Blu Hotel, BodoRadisson Blu Hotel, TromsøRadisson Blu Plaza Hotel, OsloRadisson Blu Polar Hotel, SpitsbergenRadisson Blu Royal Garden Hotel, TrondheimRadisson Blu Royal Hotel, StavangerRadisson Blu Scandinavia Hotel, OsloSwedenPark Inn, SolnaPark Inn, UppsalaRadisson Blu Arlandia Hotel, Stockholm-ArlandaRadisson Blu Hotel, LinkjøpingRadisson Blu Hotel, MalmøRadisson Blu Royal Park Hotel, StockholmRadisson Blu Royal Viking Hotel, StockholmRadisson Blu Scandinavia Hotel, GøteborgRadisson Blu SkyCity Hotel, Stockholm-ArlandaRadisson Blu Strand Hotel, StockholmAustrian Ecolabel (2)Park Inn Uno City, ViennaRadisson Blu Palais Hotel, ViennaThe Green Tourism Business Scheme, UK (13)Park Inn Heathrow, Gold AwardPark Inn Manchester Victoria, Gold AwardRadisson Blu Hotel, Edinburgh, Gold AwardRadisson Blu Hotel, Glasgow, Gold AwardRadisson Blu Hotel, Stansted Airport, Gold AwardRadisson Blu Portman Hotel, Gold AwardPark Inn Peterborogh, Silver AwardPark Inn Russell Square, Silver AwardPark Inn Telford, Silver AwardRadisson Blu Hotel, Belfast, Silver AwardRadisson Blu Hotel, Leeds, Silver AwardRadisson Blu Hotel, Liverpool, Silver AwardRadisson Blu Hotel, Manchester Airport, Silver AwardThe Green Key (60)BahrainThe Diplomat Radisson Blu Hotel, Residence & SpaBelgiumRadisson Blu Hotel, HasseltRadisson Blu Park Lane Hotel, AntwerpRadisson Blu Royal Hotel, BrusselsEstoniaPark Inn Central, TallinnRadisson Blu Hotel Olumpia, TallinnRadisson Blu Hotel, TallinnFrancePark Inn, ArcachonPark Inn, Charles de Gaulle AirportPark Inn, Lyon OuestPark Inn, MacônPark Inn, NancyPark Inn, NicePark Inn, OrangeRadisson Blu Ambassador Hotel, Paris OpéraRadisson Blu Hotel at Disneyland Resort, ParisRadisson Blu Hotel, Aix les BainsRadisson Blu Hotel, BiarritzRadisson Blu Hotel, Champs ElyséesRadisson Blu Hotel, LyonRadisson Blu Hotel, MarseilleRadisson Blu Hotel, NiceRadisson Blu Hotel, Paris-BoulogneRadisson Blu Hotel, Toulouse AirportRadisson Blu Le Dokhan’s Hotel, Paris TrocaderoRadisson Blu Le Metropolitan Hotel, Paris EiffelThe Regent Grand Hotel, BordeauxLatviaRadisson Blu Daugava Hotel, RigaRadisson Blu Elizabete Hotel, RigaRadisson Blu Hotel Latvija, RigaRadisson Blu Ridzene Hotel, RigaLithuaniaPark Inn, KaunasPark Inn, KlaipedaRadisson Blu Astorija Hotel, VilniusRadisson Blu Hotel Lietuva, VilniusRadisson Blu Hotel, KlaipedaNetherlandsRadisson Blu Hotel, Amsterdam AirportRadisson Blu Hotel City Centre, AmsterdamPolandRadisson Blu Centrum Hotel, WarsawRadisson Blu Hotel, GdanskRadisson Blu Hotel, KrakowRadisson Blu Hotel, SzczecinRadisson Blu Hotel, WroclawRussiaPark Inn, NevskyPark Inn, PribaltiyskayaPark Inn, PulkovskayaRadisson Royal Hotel, St PetersburgRadisson Sonya Hotel, St PetersburgSaudi ArabiaPark Inn, Al KhobarAl Muna Kareem Radisson Blu Hotel, Al MadinahRadisson Blu Hotel, JeddahRadisson Blu Royal Suite Hotel, JeddahRadisson Blu Hotel, RiyadhRadisson Blu Hotel, YanbuUnited Arab EmiratesPark Inn, Abu Dhabi Yas IslandRadisson Blu Hotel, Abu Dhabi Yas IslandRadisson Blu Hotel, Dubai Deira CreekRadisson Blu Hotel, Dubai-Media CityRadisson Blu Residence, Dubai MarinaRadisson Blu Resort, SharjahISO 14001 (21)GermanyRadisson Blu Gewandhaus Hotel, DresdenRadisson Blu Hotel, BerlinRadisson Blu Hotel, CologneRadisson Blu Hotel, CottbusRadisson Blu Hotel, FrankfurtRadisson Blu Hotel, HamburgRadisson Blu Hotel, Hamburg AirportRadisson Blu Hotel, HannoverRadisson Blu Hotel, KarlsruheRadisson Blu Hotel, NeubrandenburgRadisson Blu Hotel, RostockRadisson Blu Media Harbour Hotel, DüsseldorfRadisson Blu Resort, Schloss FleesenseeRadisson Blu Resort, RügenRadisson Blu Scandinavia Hotel, DusseldorfRadisson Blu Schwarzer Bock Hotel, WiesbadenThe Regent, BerlinSwitzerlandRadisson Blu Hotel, BaselRadisson Blu Hotel, LucerneRadisson Blu Hotel, St. GallenRadisson Blu Hotel, Zurich Airport20 The Rezidor Hotel Group | Responsibility Report 2010

Summary of progressSummary of ProgressResponsible BusinessPolicyResponsible BusinessObjectivesResponsible BusinessIndicatorsCommitments and Targetsfor 2010Achievements 2010EMPLOYEESWe shall educate and facilitatefor our employees to make aconscious decision in favour ofenvironmental, ethical andsocial issues in their privateand work lives.1.Increase employee awarenessregarding Responsible BusinessAvailability of user-friendlyResponsible Business tools foremployeesAvailability of timely, practicaland actionable information onsafety and security issues thatimpact hotelsEnsure workers (in particularmigrant workers) are informedof their rightsInclude Responsible Business inOn-Job Skills Training CalendarEnsure all hotels regularlyreceive updated information onthreat assessments, risk mitigationmeasures, incident responsepractice and crisis managementMy Rights @ Rezidor documentsfor hotels in Middle East andEgyptTowel Programme trainingincluded for July12 TRIC=S reports were sent toall hotels -one each month2.Foster a responsible workingenvironmentPercentage of hotels that complywith local labour lawAll hotels to comply with locallabour law (working hours, freedomof association, equal,opportunities and non-discrimination)All hotels comply with locallabour lawOverall Employee SatisfactionClimate Analysis score of 85 oraboveClimate analysis result increasedfrom 85.7 to 86.7Employee Satisfaction withregard to Responsible Businessand EthicsClimate Analysis Ethical Standardsscore of 87 or aboveClimate Analysis Ethical Standardsresult increased from 87.3to 88.3Percentage of hotels that havemade information on rezidorethics.comavailable toemployees95% of hotels to make informationon availableto employees97% of hotels make informationon available toemployeesProvide expert specialist trainingopportunities especially in countrieswhere this may not bereadily availableWork with colleagues in othermajor hotel groups to facilitateregional safety and securitytrainingsFree, two day high-level securitymanagers training in Doha,Qatar for 100 security managersfrom the Middle East regionincluding 10 participants and1 trainer from RezidorCUSTOMERSWe shall inform and make iteasy for our guests to participatein Responsible Businessrelated activities at our hotels.3.Increase customer awarenessregarding the Responsible Businessprogramme and our hotels’achievementsNumber of hotels obtaining thirdparty certificationPercentage of hotels integratingResponsible Business into Salespresentations40 new hotels to obtain thirdparty certification85% of hotels to integrateResponsible Business into Salespresentations57 hotels obtained third partycertification85% of hotels have integratedResponsible Business into theirSales presentationsPercentage of hotels withResponsible Business page onhotel website70% of hotels to have a ResponsibleBusiness page on hotelwebsite72% of hotels have a ResponsibleBusiness page on hotel websiteResponsible Business included inGuest Satisfaction programmeResponsible Business to beadded to Medallia Guest Satisfactionprogramme for Park InnResponsible Business to beadded to Medallia GuestSatisfaction programme for ParkInn by Radisson4.Provide Responsible Businessactions that are easy for gueststo participate inPercentage of hotels providingrefillable amenity dispensers inpublic washroomsPercentage of hotels makingbattery collection boxes availablefor guests95% of hotels to provide refillableamenity dispensers in publicwashrooms75% of hotels to make batterycollection box available forguests94% of hotels provide refillableamenity dispensers in publicwashrooms85% of hotels make battery collectionbox available for guestsPercentage of hotels facilitatingwaste sorting by guests40% of hotels to provide waste-sorting facilities for guests40% of hotels provide wastesortingfacilities for guests5.Provide a healthy environmentand offer healthy, nutritiousorganic and fair trade food andbeveragesPercentage of hotel rooms thatare non-smokingPercentage of non- smokinghotels (guest rooms and publicspaces)80% of hotel rooms to benon-smoking45% of hotels to benon-smoking80% of hotel rooms arenon-smoking48% of hotels are non-smokingPercentage of allergy-testedrooms30% of hotels to provideallergy-tested rooms33% of hotels provide allergytestedroomsThe Rezidor Hotel Group | Responsibility Report 2010 21

Summary of ProgressResponsible BusinessPolicyResponsible BusinessObjectivesResponsible BusinessIndicatorsCommitments and targetsfor 2010Achievements 2010AUTHORITIESWe require our managers toabide by local and internationallegislation, especiallyregarding labour laws, Healthand Safety, human rights andthe environment.11.Zero number of incidents of noncompliancewith regard toResponsible Business-relatedlegislative demands and internationalagreementsNumber of hotels reportingbreaches to Responsible Business-relatedlegislationPercentage of hotels performingResponsible Business legal selfauditNo legal breaches to ResponsibleBusiness-related legislation100% of hotels to performself-audit where available0 hotels reported legal breachesto Responsible Business-relatedlegislation99% of hotels performed legalselfaudit where availableCOMMUNITYWe shall take an active role inthe international ResponsibleBusiness community, and contributeto the local communitieswhere we operate.12.Have a positive influence andimpact on the local and internationalcommunityAmount of money raised forcorporate and local charitiesNumber of hotels participating inResponsible Business ActionMonth in September each yearRaise TEUR 75 for World ChildhoodFoundationRaise TEUR 350 for local causes220 hotels to participate inResponsible Business ActionMonthTEUR 60 raised for World ChildhoodFoundationTEUR 360 raised for localcauses234 hotels participated inResponsible Business ActionMonthPercentage of hotels organisingemployee volunteering for charityor community80% of hotels to organiseemployee volunteering forcharity or community76% of hotels organisedemployee volunteering forcharity or communityENVIRONMENTWe shall do our utmost to continuouslyimprove our performancein the areas of energy,water, chemicals and resourceconsumption, and waste generationin order to reduce ournegative impact on the environment.13.Reduce dependence on fossilfuels and become more energyefficient in all areas of operationwithout sacrificing the guestexperience and comfortExpansion of Regional EngineeringstructurePercentage of hotels with PreventiveMaintenance Programmein placeEnergy - kWh/m 2Expand Regional Engineeringstructure to one new country98% of hotels to have PreventiveMaintenance Programme in place2% reduction in Energy use measuredas kWh per metre squaredfor both Park Inn and RadissonBluRegional Engineering structureextended to Germany97% of hotels have PreventiveMaintenance Programme inplaceEnergy use measured as kWhper metre squared increased by2% for Radisson Blu and 5% forPark Inn due to increased occupancyPercentage of hotels usingrenewable energy30% of hotels to use renewableenergy22% of hotels using renewableenergy14.Conserve water whenever possiblewithout sacrificing theguest comfort and discharge”clean” waterWater - litres /guest nightAdjust water reporting toinclude all water used on siteAdjusted reporting showsdecrease of 9% for Park Innwhile Radisson Blu with moreresort properties increased by4%15.Decrease the amount of residualwaste generated (going to landfill/ incineration)Residual waste: kg/guest night2% reduction in waste generationmeasured as kg per guestnight for both Park Inn andRadisson BluResidual waste measured as kgper guest night decreased by12% for Radisson Blu and 8% forPark InnThe Rezidor Hotel Group | Responsibility Report 2010 23

Global Compact ComplianceGlobal Compact ComplianceHuman RightsRezidor Systems and ProcessesPrinciple 1: Businesses should support and respect the protection of internationallyproclaimed human rights; andPrinciple 2: make sure that they are not complicit in human rights abuses.• Code of Business Ethics• Living & Leading Responsible Business training• Employee Handbook• Supplier Code of Conduct• Code of Business Ethics• My Rights @ Rezidor•• Policy on the Facilitation of Prostitution• Supplier Code of ConductLabourPrinciple 3: Businesses should uphold the freedom of association and theeffective recognition of the right to collective bargaining;Principle 4: the elimination of all forms of forced and compulsory labour;Principle 5: the effective abolition of child labour; andPrinciple 6: the elimination of discrimination in respect of employment andoccupation.• Human Resources Guidelines• Employee Handbook• European Workers Councils• Supplier Code of Conduct• Code of Business Ethics• Supplier Code of Conduct• Code of Business Ethics• ECPAT Code of Conduct• Supplier Code of Conduct• Human Resources Guidelines• Employee Handbook• Living & Leading Responsible Business training• Policy on Recruitment and Selection• Transfer Policy• Policy on Sexual Harassment and Illicit Activities• Social Networking Policy• Supplier Code of ConductEnvironmentPrinciple 7: Businesses should support a precautionary approach to environmentalchallenges;Principle 8: undertake initiatives to promote greater environmental responsibility;andPrinciple 9: encourage the development and diffusion of environmentallyfriendly technologies.• Responsible Business Policy• Responsible Construction and Renovation Guidelines• Global Compact Caring for Climate• Responsible Business Policy• Responsible Construction and Renovation Guidelines• Living & Leading Responsible Business training• Rezidor List of Restricted Substances• Supplier Code of Conduct• Responsible Construction and Renovation Guidelines• Supplier Code of ConductAnti-CorruptionPrinciple 10: Businesses should work against corruption in all its forms,including extortion and bribery.• Risk Assessment Policy• Global Information Security Policy• Anti-Fraud Policy• Internal Audit• Supplier Code of Conduct24 The Rezidor Hotel Group | Responsibility Report 2010

ABOUT THE REPORTAbout the ReportThe purpose of this Rezidor Hotel Group 2010 Responsibility Report, in combinationwith the 2010 Annual Report, is to help shareholders and other key stakeholders tovalue, assess and understand the operations of The Rezidor Hotel Group with regardto three pillars of the Responsible Business programme.We have an ongoing dialogue with our stakeholdersand we report what we consider tobe of particular interest to those we deemkey: employees, customers, property owners,shareholders, suppliers, authorities, communityand environment. Thus the Rezidor 2010Responsibility Report describes the mostmaterial and relevant sustainability aspects ofour operations, not the full range of actionsand data.Scope and Boundaries of the ReportRezidor has limited the reporting boundariesto areas in which the company has full controlover data collection and information quality.Downstream impacts are generally excluded– as we do not at present dispose of reliabletools to measure these. The numerical dataspecified in this report refers to the year2010, unless otherwise stated. Monthlyenvironmental reporting and the annual StatusReport, compiled by the managementteam at each hotel, form the foundation forRezidor’s Responsible Business reporting.The reporting is based on year-end figures,meaning that all hotels in operation byDecember 31st were asked to report. Consequently,some hotels report full-year data,while properties that opened during 2010,report only for the months they were inoperation. Hotels that discontinued operationswith Rezidor during the year are notincluded. During 2010, 28 hotels came intooperation under managed and leased agreements,as well as 4 hotels under franchisedagreements. Meanwhile, 2 managed orleased and 4 franchised hotels left the systemin 2010. Due to the fact that the reportingbase changes from year to year, we use keyperformance indicators which are based onsurface area (m 2 ) or occupancy (guest nights)as these are the dominating factors affectingenergy use, water consumption and wastegeneration. This also allows us to report ourperformance in a fair and transparent mannerfrom year to year.The scope of this report covers Rezidor asa group, providing examples from operationsregardless of brand. However, due to thesmall number of hotels operated under theRegent (3), Country Inn (2) and Hotel Missoni(1) during 2010, data from these hotels islimited, while the focus is on Radisson Bluwith 200 hotels and resorts and Park Inn byRadisson with 103.Responsible Business programme isencouraged at all hotels, including franchisedproperties, and corporate offices. For 2010,39% of franchised hotels completed theResponsible Business Status Report while 9%completed the monthly EnvironmentalReport.Routines for MonitoringHotels are asked to report their ResponsibleBusiness performance in two differentreports. Overall compliance with, and progresstowards, the 15 objectives of theResponsible Business programme (see page21) is assessed through the annual ResponsibleBusiness Status Report questionnaire. TheStatus Report is an internet-based databasemanaged by an external consultant (alsoavailable through Rezidor’s intranet), andcontains 66 questions touching on all relevantareas of the Responsible Business programme.The questionnaire used is inspiredby the UN Global Compact and the GlobalReporting Initiative guidelines. Environmentalperformance data (e.g. energy, water andwaste) is collected on a monthly basisthrough an Excel based database linked toRezidor’s comprehensive accounting andfinancial system. The data requested hasexpanded slightly since the launch in 2002,while the reporting periods have also beenadjusted over the years. Data is checkedinternally before consolidation with hotelsasked to justify or explain significant deviations.Reporting is mandatory for managedand leased hotels. Moreover, at year-end85% of hotels had a Responsible Businessspecific Action Plan in place for 2011. TheseResponsible Business Action Plans areupdated yearly. At the same time, 89% of thehotels have also incorporated ResponsibleBusiness related targets into their overallBusiness Plan.Hotels are also able to use Rezidor’s exclusiveon-line self-audit system that guidesthem through a review of all key elements inthe Four Cornerstones of Guest Safety andSecurity, Employee Safety and Security, FireSafety and Operational Security. One sectionof questions is released to the audit eachquarter, so at the end of the year hotels willhave reviewed the entire programme. Theself-audit is more than box-ticking; it is like aliving manual since each question is directlylinked to a library of good practice examplescollected from the hotels themselves. Theself-audit is freely available to all hotels,including franchises. In 2010, over 210 propertieswere actively using the system to helpkeep their internal safety and security policies,procedures and training programs up todate.Accounting Principles and VerificationFinancial data presented in the ResponsibilityReport is derived from audited annualaccounts. For all external reporting, currenciesare converted into Euro. Accountingprinciples for financial reporting, as well asthe conversion rates used, are stated in theRezidor Hotel Group 2010 Annual Report.The Responsibility Report has not been independentlyreviewed by auditors or any otherthird party.The Rezidor Hotel Group | Responsibility Report 2010 25

TitleThe Rezidor Hotel Group is one of the most dynamicand fastest growing hotel companies in the world.The group currently features a portfolio of morethan 400 hotels with 87,000 rooms in operation andunder development in over 60 countries across Europe,the Middle East and Africa.Rezidor operates the core brands Radisson Blu andPark Inn by Radisson – as well as Hotel Missoni, a newlifestyle brand which is developed worldwide followinga licence agreement with the iconic Italian fashionhouse Missoni.Rezidor ‘s long-standing, wide-ranging and awardwinningResponsible Business programme contributedto the group being named one of the World’s MostEthical Companies in 2010.For more information, visit www.rezidor.comIf you have any comments, queries or questions, please contact:Christiane Reiter, Director Corporate Communicationchristiane.reiter@rezidor.comRenu Snehi, Director Corporate Communicationrenu.snehi@rezidor.comThe Rezidor Hotel GroupCorporate OfficeAvenue du Bourget 44B-1130 BrusselsBelgiumTel: +32 2 702 9000Fax: +32 2 702 9300IV The Rezidor Hotel Group | Responsibility Report 2010

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