1

Corporate Responsibility at IHG 28th June 2010

2

4,476 PROPERTIES (Global)

3,830 “FRANCHISED”

640 “MANAGED”

3,509 PROPERTIES (Americas)

3,278 “FRANCHISED”

231 “MANAGED”

Who is IHG?

3

Two Years Ago …

4

5

What have we learned in two years …

6

7

Corporate Responsibility Business Drivers

Customers

&

Employees

Corporate

&

Government business

Government

regulations

Carbon

Cost protection

&

Value creation

Competitive threat

8

Corporate Responsibility Messagesin Media

9

Corporate Responsibility MessagesIn Polit ics

10

Corporate Responsibility MessagesFrom Clients

ISO 14001 & UN Global Compact with external certification

Ecomagination

Reduce CO2 emissions by 40%

Reduce CO2 emissions by 10%

Reduce facility emissions by 10% per vehicle

Reduce total global emissions by 7%

Reduce GHG intensity by 30%

Reduced facility emissions by 6.7% since 2002

11

Corporate Responsibility MessagesFrom Employees

Am interviewing poss emplye who we like for ###. Is asking really detailed ?s about IHG CSR. Can u call me? Can only wait a couple of mins. Tx.

12

12

Green Business DriversOur Guests

Turbo-Advocates

Blocked Believers

Traditional Advocates

Unapologetic Eco-Skeptics

37%

40%

11%

12%

13

2008 - 2009

Building the Foundation

• Policy

• Measurement

• Management

• Standards

• Technical Understanding

• Consumer Insight

Now

Innovation & Collaboration

• Introduce products to

market

• Community strategy

• Pilot management

systems

• Decide brand–specific

CR plans

• Add value partnerships

How IHG is responding

14

IHG and Xerox

15

Measure

• Site

• Water

• Products & Materials

• Waste

• Envelope

• Mechanical

• Electrical

• Operations

Manage Report

• Energy

• Water

• Waste

• Carbon

• Benchmarks

• Property Goals

• Brand Targets

• Corporate Performance

• Hotel 360°°°°• Google Earth

IHG’s Green Engage

16

15-25 % Energy

Savings

IHG green measure, manage & reporting benefits

17

Recognition for IHG’s CSR

• National Business Travel Association (NBTA) awarded its CSR award to IHG in 2009

• 2009 Hotel Visionary Award from Hospitality Technology Magazine for Green Engage

• 2009 CSR Innovation Award from Hotel Magazine

• Eco-lodging Award at the China Hotel Investment Summit (CHIS)

• ‘Best Corporate Responsibility Report in sector’ 2009

• Worldwide Hospitality Award for best initiative in sustainable development 2009

• Most admired leisure and hospitality company for the third year running at Management Today's Britain's Most Admired Companies Awards 2009

• Condé Nast Traveller 2009 World Savers Award for Willard InterContinental Washington DC

18

19

The Potential of Sustainability

20

The Potential of Sustainability – Really

21

22

New Value Creation – new products

23

It’s not just CR in building design …

24

25

The Stages of Grief … The Stages of “Green”

Denial

Anger

Bargaining

Depression

Acceptance

… it’s really just about enduring change …

26

The Stages of Grief … The Stages of “Green”

Denial

Anger

Bargaining

Depression

Acceptance

“Al Gore is wrong/lying/has an agenda”

“I don’t believe this will significantly change how

we do business.”

“Stupid Al Gore!”“I have enough to worry

about without this!”

“Well, I’ll be green, but I am not listening to Al Gore.”

“I’ll be green, but I have limited resources … what

can I stop doing?”

“I have to buy a #@#$ hybrid.”

“How do I “green”______?”

“I want to buy a #@#$ hybrid.”

“Green” = table stakes

27

The Stages of “Green”

Denial

Anger

Bargaining

Depression

Acceptance

Three Observations• Downturn: “Green” became a “go to” area• After: What will stick?• … and …

28

Measure

• Site

• Water

• Products & Materials

• Waste

• Envelope

• Mechanical

• Electrical

• Operations

Manage Report

• Energy

• Water

• Waste

• Carbon

• Benchmarks

• Property Goals

• Brand Targets

• Corporate Performance

• Hotel 360°°°°• Google Earth

IHG’s Green Engage – who needs a pilot?

29

Words that come back to haunt …

“CSR initiatives aren’t any different than finance initiatives, brand initiatives, development initiatives, etc. …”

-Paul Snyder1,000s of occasions

30

The Stages of “Green”

Denial

Anger

Bargaining

Depression

Acceptance

Three Observations• Downturn: “Green” became a “go to” area• After: What will stick?• … and …

31

The Stages of “Green” … Final Observation

Denial

Anger

Bargaining

Depression

AcceptanceParadigm Shift

32

Paradigm Shift

Denial

Anger

Bargaining

Depression

AcceptanceParadigm Shift

• Non-linear progress

• New approaches to understanding not considered valid before

• Can’t be in/understand two paradigms at once

CSR

Brand/Marketing

HR

CSR

Strategy Finance

Operations

33

Want to Learn More?www.ihg.com/responsibilit y

WWW.ihg.com/innovation

34

Questions?