Primary: Future Ready transformation: portfolio simplification & operational efficiency HP's Future Ready Plan (announced Nov 2022, running through FY2025) targets digital transformation, portfolio optimization and operational efficiency. HP has reduced portfolio complexity, improved continuity of supply, and cut structural cost through headcount reductions (~7,000 roles). Savings are partly reinvested into growth areas and people.
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Primary: Product circularity & repairability HP cites increasing exposure to regulatory requirements around product circularity, product energy efficiency, repairability, reuse, recyclability and take-back. HP proactively evaluates and replaces materials in products and supply chain considering substances of concern, regulatory requirements and customer preferences.
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Dependent: Climate transition risk in product portfolio HP acknowledges transition risks including shifting customer preferences and carbon pricing regulations. Failure to manage transition risks could diminish customer demand. HP expects continued compliance burdens and indirect costs from suppliers passing on compliance costs.
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Hospitality Alliance for Responsible Procurement (HARP) founding member IHG is a founding member of HARP (2023), facilitated by EcoVadis. In 2024 kicked off a decarbonisation learning plan for high-emitting suppliers, expanded EcoVadis programme to 188 suppliers globally, and piloted supplier audits in AMER and EMEAA.
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No removals strategy; reforestation via Mastercard Priceless Planet partnership IHG does not retire carbon credits or use durable removals (DAC, BECCS, etc.) as part of its inventory — confirmed 'No' for project-based credits retired in the reporting year. The firm's nature-positive activity is limited to a Mastercard/Priceless Planet Coalition partnership (2023-2025), where transactions over $50 at select US IHG hotels raised $3m supporting Conservation International's pledge to restore 100 million trees across 18 reforestation projects on six continents. This is positioned as community engagement rather than as a carbon removals strategy or offset retirement.
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Primary: Energy efficiency measures (ECMs) in existing hotels IHG identifies implementing energy-conservation measures across existing hotels as a top decarbonisation lever. Five ECMs were embedded into Brand Standards in 2024: minimum chiller efficiencies, guest-room management systems, pool covers, variable-speed AHU fans, and hot-water heat pumps. Estimated savings ~70,000 tCO2e/year and ~$27m. Adoption of ECMs is part of the LTIP for Executive Directors (5% weighting), with threshold target of 80% of hotels adopting and max target 100%.
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Primary: Pioneering low-carbon new-build hotels The Low Carbon Pioneers programme (launched July 2024) brings together energy-efficient hotels operating with no fossil fuels combusted on-site (backup generators <5% of annual energy) backed by renewable energy. Each must obtain Green Key or LEED/BREEAM/EDGE certification within 12 months of opening. LTIP target (5% weighting): threshold 10 hotels open/under construction, max 15 hotels. Used to test, learn and share findings to inspire wider adoption.
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Dependent: Franchise hotel energy decarbonisation (Scope 3 cat 14) Franchise hotels represented 73% of IHG's hotel rooms in 2024 and ~52% of total emissions (3.4 MtCO2e of 6.5 Mt). IHG has no operational control over these, so decarb relies on indirect levers: brand standards, IHG Green Engage data platform (mandatory monthly reporting), Hotel Energy Reduction Opportunities (HERO) tool, and General Manager performance plans tied to energy reduction. The asset-light model and franchisee small-business constraints (limited credit access, no equivalent regulatory pressure) are cited as the biggest barrier to hitting the 2030 SBT.
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Dependent: Supplier engagement via EcoVadis and HARP IHG is a founding member of the Hospitality Alliance for Responsible Procurement (HARP, 2023). Partnered with EcoVadis to assess 188 suppliers globally on working conditions, energy/GHG, biodiversity and forests. In 2024 IHG kick-started a decarbonisation learning plan for high-emitting suppliers including a webinar, and began piloting supplier audits in Americas and EMEAA. All new corporate suppliers must accept the Supplier Code of Conduct, which sets expectations to reduce energy/GHG, water, plastic waste, and support biodiversity.
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Single-use plastic elimination brand standards In 2024 IHG introduced two new brand standards to eliminate plastic water bottles from guest rooms and meetings/events across all Europe hotels by December 2025. Brand standards globally require replacing bathroom miniatures with full-size amenities. Greater China brands updated to use recycled/bamboo guest-room amenities by June 2025.
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