What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

A few days ago. 2018 Issuer Disclosure Report on Environmental, Social and Governance Practices, released by The Stock Exchange of Hong Kong Limited (“Stock Exchange”) in December 2019

It is noted that in "Environmental, Social and Governance (ESG) Reporting Guidance" ("Guidelines") in Appendix 27 of Main Board Listing Rules, responsibility for product B6 is to disclose 8 aspects . in social sphere Lower level

In fact, it has always been difficult for reporting issuers to understand and achieve compliance disclosures by those responsible for B6 products

Especially for issuers whose business is not related to physical "products", it is often difficult to relate this to their own business and disclosure requirements

CECEP and Hong Kong Green Finance Association jointly released research report "ESG New Era: Enterprise Perspective and Practice in China Market" in 2019.

They noted that quality of products and services will be one of top five challenges for ESG in medium to long term.

At same time, in revised version of "Guidelines", officially published by Stock Exchange in December 2019, responsibility for disclosure of information at public level was increased to "disclose or explain"

As market places more emphasis on product and service liability and stock exchange continues to tighten disclosure requirements, we're bringing together industry profiles and business characteristics of each industry in this series of articles to provide in-depth research and liability disclosure policies per product

Continued from China Energy Conservation Haoxin September 2020 article "Interpretation of Product Responsibility in Industry" on biotechnology industry

We reviewed previous B6 product liability issuer liability disclosures in hospitality industry and summarized three main areas of disclosure, and in this article we will detail relevant examples.

Guest experience

For hospitality issuers, making guests feel at home is undoubtedly most important part of their business, and this is also focus of B6 Product Liability Disclosure

In addition to disclosing its guest experience management policy, an issuer may also disclose its mechanism and process for collecting and analyzing guest feedback in an ESG report

Methods for responding to guest complaints, customized services and activities according to customer needs, etc., as well as disclosing relevant data such as guest satisfaction and number of guest complaints, and demonstrating its effectiveness in improving guest experience in a transparent and objective form. way

There is a thematicresearch

Shangri-La (0069.HK)

Since 2018, Shangri-la has been using an independent third party platform, TrustYou, to count guest reviews.

Dynamically measure guest satisfaction. Shangri-La collects general experience data (including staff, check-in, check-out, breakfast, room and bathroom, etc.) from guests after they check in

Integrate data into TrustYou CompIndex score for each hotel, combine internal and external rating data, and compare scores from other peers

Comprehensive evaluation. Shangri-La regularly reports its ratings to hotels so that hotel staff can improve service plans and continuously improve quality of guest experience.

In addition to disclosing guest satisfaction scoring mechanism in 2019 Sustainability Report, Shangri-La has also disclosed relevant score and participation rate data to increase transparency in guest experience

Example:

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

Shangri-La Sustainability Report 2019

Case Study:

Hotel Hong Kong Shanghai (0045.HK)

In 2013, hotels in Hong Kong and Shanghai launched Prestige Heritage 2020 Vision, focusing on seven areas: guest engagement, employee engagement, community engagement, business operations, new construction and renovation projects, supply chain, management and governance. Direction and goals of development

In terms of guest experience, The Hongkong and Shanghai Hotels have revealed their hotel ratings in 2019 Corporate Responsibility and Sustainability Report

As well as policy and activity cases formulated according to culture, style, history and requirements of guests in different regions, demonstrating their practical actions and benefits in improving guest experience

Example:

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions
What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

Picture 2

Hong Kong & Shanghai Hotel, 2019 Corporate Responsibility and Sustainability Report

Guest health and safety

Health and safety of guests is another important issue for hospitality industry, which covers a wide range

Including general security of hotel building, fire safety, food safety, emergency response such as conflict and crime, etc. At same time, if issuer's hotel property provides services other than accommodation, such as sports and leisure

You may also want to consider disclosing relevant security mechanism in ESG report

As COVID-19 pandemic rages around world in 2020, stakeholders should focus on how hospitality issuers can protect guest health during pandemic

Prevent spread of new coronavirus in hotel. In addition to relatively traditional direction of disclosure mentioned above, issuers in hospitality industry may also consider disclosing information about measures to prevent spread of disease and improve sanitation in their hotels in future

There is also a case study

Fosun Tourism (1992.HK)

As a resort operator, Fosun Tourism discloses its policies to ensure safety of hotel operations and safety of guests in ESG report

Actions, system processes and calls. Fosun Tourism has implemented an Environment, Health and Safety (EHS) employee training system and regularly conducts emergency drills

Improve emergency mechanism, expand emergency response capabilities and ensure safety of hotel staff and guests

In addition to revealing its overall security management system, Fosun Tourism has detailed mechanisms and processes for preventing, managing and controlling each hotel's security risks in 2019 ESG Report

Fosun Tourism has also disclosed relevant safety requirements for swimming pools, water activities, skiing and other sports in hotels.

Including additional guest health requirements, clothing and carrying items, lifeguard requirements, first aid procedures, ski safety management measures, etc. to ensure guest safety

At same time, in response to security risks associated with geographical location of some hospitality businesses, Fosun Tourism has also disclosed following

“Parts of Group’s operations are subject to extreme weather conditions and Club Med resorts are scattered around world and therefore subject to varying climatic conditions

When developing a contingency plan for extreme weather conditions, we took into account impact of extremesmall weather conditions (storms, high temperatures, hurricanes, etc.) on attractiveness of resort environment for risk management

For Club Med along coast and Atlantis Sanya, we focus on strong winds and typhoons and develop countermeasures for different levels of strong winds and typhoons

Example:

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions
What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

Look at fig. 3

Fosun Tourism "ESG Report 2019"

Analysis

Shangri-La (0069.HK)

Due to food safety risks, Shangri-La announced in its 2019 Sustainability Report that it has updated its food service provider management plan in 2019.

And its various requirements for food service providers, including obtaining ISO 22000/GFSI and other accreditation certificates, passing third-party audits, and passing hotel hygiene audits

At same time, Shangri-La also announced that in 2019, 87 hotels received ISO 22000 Food Safety Management System or HACCP (Key Food Safety Management System Certification) certification, which reflects their work and achievements in food safety products with objective data.

Example:

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

Picture 4

Shangri-La Sustainability Report 2019

Protecting guest information

According to Global Risk Report 2020 published by World Economic Forum, information security and cybersecurity are included in list of top global risks, respectively

The hospitality industry processes a large amount of sensitive personal information every day when guests check in and make reservations. Therefore, protecting information security and privacy of guests is also a key disclosure of B6 product responsibility

In addition to disclosing relevant internal policies, issuer may also disclose relevant employee training and system builds to more fully demonstrate company's information security efforts

In a case study

Fosun Tourism (1992.HK)

As a resort operator, Fosun Tourism discloses its policies, measures, system procedures and cases in ESG report to ensure safe operation of hotel and guests

Fosun Tourism has implemented Environment, Health and Safety (EHS) employee training system, regularly conducts emergency drills, improves emergency response mechanism, enhances emergency response capabilities, and ensures safety of hotel employees and guests.

In addition to revealing its overall security management system, Fosun Tourism has detailed mechanisms and processes for preventing, managing and controlling each hotel's security risks in 2019 ESG Report

Fosun Tourism has also disclosed relevant safety requirements for swimming pools, water activities, skiing and other sports in hotels.

Including additional guest health requirements, clothing and carrying items, lifeguard requirements, first aid procedures, ski safety management measures, etc. to ensure guest safety

At same time, due to security risks associated with geographical location of some hotel enterprises

Fosun Tourism also disclosed following information:

“Parts of Group’s operations are subject to extreme weather conditions and Club Med resorts are scattered around world and therefore subject to varying climatic conditions

When developing a contingency plan for extreme weather conditions, we took into account impact of extreme weather conditions (storms, high temperatures, hurricanes, etc.) on attractiveness of resort environment for risk management purposes

For Club Med along coast and Atlantis Sanya, we focus on strong winds and typhoons and develop countermeasures for different levels of strong winds and typhoons

Example:

What is hotel ESG data, and development of hotel industry ESG has these disclosure directions

Picture 5

Fosun Tourism "ESG Report 2019"

Summing up:

Looking at disclosures of many hotel industry issuers, importance of product liability issues such as safety and customer satisfaction has always been relatively high

Through a more complete and objective product liability disclosure, issuers can more effectively respond to concerns and expectations of various stakeholders

And demonstrate your efforts and achievements in field of ESG and fulfillment of social obligations in order to increase stakeholder confidence in issuer in order to promote sustainable business development

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