Mandarin Oriental, a global leader in luxury hospitality announces its latest sustainability achievements and strategic initiatives, as outlined in its annual sustainability report which is now available on the brand website in text and audio formats. Over the past year, the company has made significant enhancements to its Environmental, Social, and Governance (ESG) Policies, reinforcing its commitment to a more sustainable future.
“One of our guiding principles at Mandarin Oriental is delivering service excellence while acting with responsibility for our planet,” says Torsten van Dullemen, Group Director of Sustainability and Area Vice President Operations. “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.”
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, which was released in 2022. A sustainability risk assessment was conducted for the Group’s portfolio, highlighting climate, water, socioeconomic factors, and biodiversity risks and identified 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 plays an essential role in overseeing 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 in progress of 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 reductions in carbon intensity, energy intensity, and water intensity against 2012 baselines have been achieved across the portfolio. With a 30% carbon intensity reduction, 31% energy intensity reduction, and 16% 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 gases activities. Scope 1 emissions were reduced from 16% in 2012 to 12% in 2022, while Scope 2 emissions increased slightly from 84% to 88% 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 3 emissions reporting is still in progress, Mandarin Oriental actively collaborates with industry peers to contribute to the development of a comprehensive framework – a joint initiative between Greenview, Sustainable Hospitality Alliance, the World Travel & 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 in line with the guidance from the American Society of Heating, Refrigerating, and Air-conditioning Engineers, resulting in estimated future savings of US$1.1 million per annum.
The Group’s relentless pursuit to eliminate single-use plastics has been highly successful, with 99% 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 key priority categories such as endangered seafood, coffee, tea, cocoa, vanilla, and paper. The company achieved a meaningful milestone by attaining 100% responsible sourced status in these categories, verified by Lloyd’s Register Quality Assurance, an independent third-party assurance provider.