Mandarin Oriental has announced its latest sustainability achievements and strategic initiatives, as outlined in its annual sustainability report. Over the past year, the company has significantly enhanced its Environmental, Social, and Governance (ESG) Policies, reinforcing its commitment to a more sustainable future.
Group Director of Sustainability and Area Vice President of Operations Torsten van Dullemen said that one of the company's guiding principles at Mandarin Oriental is delivering service excellence while acting responsibly for the planet.
"We are proud of the steady progress we have made in measuring our sustainability impact, both positive and negative, which provides necessary transparency to all our stakeholders, ultimately driving our accountability as an organisation and highlighting opportunities for ongoing improvement," said Dullemen.
One of the key highlights of the Group's sustainability journey is the disclosure of climate-related financial risks in its first-ever Task Force on Climate-related Financial Disclosures report, released in 2022. A sustainability risk assessment was conducted for the Group's portfolio, highlighting climate, water, socioeconomic factors, and biodiversity risks and identifying opportunities to put into practice. By proactively addressing these risks, the company is demonstrating its proactive approach to climate change mitigation.
To strengthen its sustainability governance structure, Mandarin Oriental established a dedicated sustainability department in 2022. This department oversees the brand's sustainability initiatives, ensuring effective communication and collaboration throughout the organisation.
As part of its commitment to transparent reporting, Mandarin Oriental utilises the Greenview Portal, a robust sustainability data management system. Furthermore, the company is progressing toward aligning itself with the industry criteria set by the Global Sustainable Tourism Council (GSTC), further reinforcing its commitment to global sustainability standards.
Mandarin Oriental's environmental commitment has yielded impressive results. Significant carbon, energy, and water intensity reductions against 2012 baselines have been achieved across the portfolio. With a 30 percent carbon intensity reduction, 31 percent energy intensity reduction, and 16 percent water intensity reduction, Mandarin Oriental is on track to meet its Environmental Group Targets for 2030.
The Group continues to measure and report on its greenhouse gas activities. Scope one emissions were reduced from 16 percent in 2012 to 12 percent in 2022, while Scope two emissions increased slightly from 84 percent to 88 percent over the same period, which may be attributed to a mixture of using more electricity rather than gas or diesel in our kitchens as well as for heating, and some hotels using heating from city sources. Although Scope Three emissions reporting is still in progress, Mandarin Oriental actively collaborates with industry peers to develop a comprehensive framework, a joint initiative between Greenview, Sustainable Hospitality Alliance, the World Travel and Tourism Council and others.
The company's dedication to energy efficiency is exemplified through regular energy audits conducted in its hotels at three-year intervals. Each hotel has its own detailed Energy Audit Action Plan based on the latest energy audit conducted. In 2022, Mandarin Oriental performed six energy audits per the guidance from the American Society of Heating, Refrigerating, and Air-conditioning Engineers, resulting in estimated future savings of US$1.1 million annually.
The Group's relentless pursuit of eliminating single-use plastics has been highly successful, with 99 percent of single-use plastics eliminated across all operations in 2022, excluding supplier packaging. This concerted effort is estimated to avoid more than 930 metric tons of plastic waste annually, showcasing Mandarin Oriental's strong commitment to responsible waste management.
Furthermore, Mandarin Oriental has prioritised responsible procurement, particularly in crucial priority categories such as endangered seafood, coffee, tea, cocoa, vanilla, and paper. The company achieved a meaningful milestone by attaining 100 percent responsibly sourced status in these categories, verified by Lloyd's Register Quality Assurance, an independent third-party assurance provider.
