HMSHost Sustainability Overview

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1 HMSHost Sustainability Overview AAAE Airports Going Green Conference November 15, 2010 Linda Dunn VP Supply Chain & Analysis HMSHost 1

2 Topics HMSHost Introduction Scope Of Sustainability HMSHost Sustainability Process & Areas Of Focus Key Initiatives Chicago O Hare Example What s Next 2

3 HMSHost Snapshot A recognized industry leader who creates innovative dining and shopping at airports and on motorways worldwide. Operates in nearly 100 airports around the globe and at over 80 travel plazas in North America. Holds an unmatched portfolio of over 250 favorite local and locally inspired, regional, international and proprietary brands. 3

4 4 What s Sustainability?

5 As Broad Or Narrow As You Want To Define It Fair And Responsibly Sourced Products Composting Non-caustic Chemicals Reduction Of Hazardous Waste Protecting Biodiverse Habitats Recycling Reduction Of Non-hazardous Reduced Development Waste Greenhouse Gases Reuse Renewable Energy Certificates Responsible Forestry Nutritional Well Being Renewable Energy Local Products Food Security Fighting Poverty Food Safety Smaller Carbon Footprint Reduction Of Waste Reclaimed Materials Reduction Of Ozone Depleting Substances Employee Safety Reduced Economic Subsidies Organic Products Water Conservation 5

6 Sustainability Is The Next Great Innovation Arena Social Values Technology Sustainability Initiatives Regulation Community Needs 6

7 7 HMSHost Sustainability Process & Areas Of Focus

8 HMSHost Sustainability Platform Process Sustainability Platform 1. Strategic Planning 2. Areas Of Focus 3. Corporate & Operations Driven Initiatives 4. Measurement 8

9 Integration With HMSHost Mission Making the traveler s day better Creating a fresh, engaging sense of place at each airport with dynamic national, authentic local, and innovative proprietary restaurants and retail shops Providing unsurpassed customer service with genuine hospitality Reassuring guests that the company providing their dining and retail choices has a sustainable, responsible foundation 9

10 Areas Of Focus And also Making the day better for the future generation of travelers through focusing on: Reducing our environmental impact Providing food and beverage options that address nutritional wellness Partnering with the communities we serve to build a better future 10

11 Our Sustainability Mission Engage all stakeholders to join the journey to become more sustainable even if their actions begin with smaller steps. 11

12 Opportunity Assessment Drives Initiatives Design & Construction Offerings Operations Partnerships - Materials -Suppliers -Logistics -Equipment - Products & Supplies - Suppliers - Distributors & Logistics -Waste -Processes/ Procedures - Conservation - Authorities - Brands - Charitable Organizations -Building Practices -Design -Policies & Procedures - Communications - Education/ Training - Events - Communities - Communications 12

13 13 HMSHost Key Initiatives

14 Design & Construction Initiatives Our designing and building practices are significantly altered with the increased focus on sustainability. Energy Efficient Equipment & Lighting LED Lighting Compact Fluorescent Lighting Energy Saving Kitchen Equipment Natural Lighting Recycled/Reclaimed Materials Counter Tops Glass Existing Materials In The Space Reclaimed lumber 14 More Earth-Friendly Materials Soy Stained Concrete Sustainably Harvested Wood

15 State Of The Art Welcome Center Built Delaware Welcome Center to achieve Silver LEED (Leadership in Energy and Environmental Design) Certification. 15

16 State Of The Art Welcome Center Green Building Materials Recycled content (ceiling tiles, countertops, concrete, steel, asphalt) Locally manufactured where possible (within 500 miles of the site). Half of the wood certified by the Forest Stewardship Council Daylight/Lighting Control Designed with Daylight Harvesting Equipped with a lighting control system & motion detectors in restrooms Hazardous Spill and Bio-Retention Basin Absorbs and removes pollutants from the water Indoor Air Quality Interior products have no volatile organic compounds (VOCs) Geothermal Heat Pump (each well is 300 feet deep) Recycling Systems and Waste Management About 75 percent of the construction waste was recycled or reused 16

17 State Of The Art Welcome Center Fifty Anti-idling Stations Electric Vehicle Charging Stations - Infrastructure for car electrification accommodated within the site design 17

18 Offerings Initiatives HMSHost F&B and Retail bags have an additive to make them degradable HMSHost restaurant menus printed with 20% recycled paper Added contract for cooking oil recycling, testing closed oil technology systems & investigating composting technologies and equipment In Spring of 2011, HMSHost will move to a spring water bottle that uses a minimum 10% of recycled PET 18

19 Offerings Initiatives Reducing Paper Products Implemented SCA Tork Xpressnap 25% reduction in napkin usage Green Seal certified (100% recycled, nonbleached) Based on purchases, our environmental savings is the equivalent of 7.4 M gallons of water saved and over 18,000 trees Reduced Thickness Of Back Of House Paper Moving Ahead With A State Of the Art Hand Dryer To Replace Towels In Bathrooms Slated for Q at over 80 locations GreenSpec approved equipment qualifies for LEED points 19

20 Offerings Initiatives HMSHost Culinary R&D Group is focused on balanced nutritional offerings and special diet needs. Lower Sodium Options (e.g., Olive Oil & Balsamic Vinegar Decanter Set) Transfat Free Cooking Oil More Vegetarian Options Better For You Snack Options 20

21 Offerings Product & Branded Partners Sustainability commitments of our dining & shopping partners are important and partnership opportunities are explored. California Pizza Kitchen Committed to reducing energy and carbon emissions Worked with HMSHost to reduce unnecessary waste Starbucks (Starbucks will share initiatives today) Shared Planet Platform Worked with HMSHost on more sustainable building Coca-Cola Live Positively Platform Worked with HMSHost on USO campaign 21

22 Operations Initiatives ReBook Program Our Retail Bookstores collect and recycle books. 22

23 Operations Initiatives Awareness Over 70 in-store television displays in our Retail stores help us drive consumer awareness of sustainability. 23

24 Operations Initiatives - Coffee Grounds Over half of HMSHost locations with Starbucks recycle coffee grounds (airport grounds, nurseries, wineries, etc ) 24

25 Operations Initiatives HMSHost benchmarks our units regarding sustainable initiatives & implemented an operation conservation checklist Recycled items have a big impact (annual figures) Cooking Oil - Nearly 1.5 M gallons of cooking oil Cardboard - Over three quarters of our locations recycle 5 M pounds of cardboard Milk jugs Over 1 M milk jugs Bottles/Cans Over 6 M bottles Printer cartridges Nearly 50 K cartridges 25

26 Partnerships Feeding America Local Foodbanks Our Trash Bins May Not Be As Full As They Used to Be Fortunately Many Members of Our Community Are!!! 1 in 4 children lives in a food-insecure household 26

27 Partnerships Local HMSHost participates in local clean up efforts 27

28 Partnerships Local and local and national initiatives and events. 28

29 29 HMSHost Chicago O Hare Example

30 Chicago Example Wicker Park Low VOC Paint Utilize Natural Light LED Lighting LED Signage Solid Surface Countertops with Recycled Material Reuse Existing Terrazzo Flooring 30

31 Chicago Example Tortas Frontera LED Signage & Lighting Low VOC Paint 31 Solid Surface Countertops with Recycled Material Reclaimed Oak Barn Wood

32 Chicago Example Recycling/Reuse Our recycling efforts at Chicago O Hare make a large impact and continue to grow: HMSHost installed a specially designed container to allow for recycling of cooking oil we recycle over 100,000 gallons per year We reuse over 20,000 pallets per year at the branch The cardboard we store and recycle at the branch amounts to over 200,000 pounds of cardboard per year. Recycling it instead of putting it in landfills saves over 900 cubic yards of landfill space and the equivalent of emissions from the consumption of 38 k gallons of gasoline. 32

33 Chicago Example Sustainable Partners Starbucks Coffee Concept Partner (Starbucks will share initiatives today) Local initiatives Example of joint focus - new sustainable build store HMSHost constructed in baggage claim Rick Bayless Frontera Local Chef Partner Founder of the Frontera Farmer Foundation, an organization that supports small local farmers Active in Share Our Strength, a hunger advocacy organization Example of joint focus sustainable build elements and offerings Testa Produce Produce Partner New warehouse will be first LEED Platinum food distribution facility in the U.S. and includes its own wind turbine, biodiesel distribution fleet, partially vegetated roof, and solar-powered water heating and focus on local products. Example of joint focus purchase local produce like Portabello mushrooms, button mushrooms, Red B and Yukon Gold Potatoes. 33

34 Chicago Example Ciao Gourmet Market Our proprietary Ciao market concept fully incorporates a sustainability platform. 34

35 Chicago Example Ciao Gourmet Market Fair Trade/ Give Back Products Better For You Products Gluten Free Products Organic Products Vegan Products Kosher Products Re-useable Shopping Bag 35

36 Chicago Case Example Bringing It Local HMSHost is working with Future Growing on an at airport local produce concept. 36

37 Chicago Case Example Community Ties Below is the HMSHost team helping to raise money for Special Olympics Illinois and we also were happy to donate food and beverages for the worthy event. 37

38 38 What s Next

39 Future Developments... Increased suppliers and viable options to become more sustainable More impartial third party data and organizations to assist restaurateurs and retailers in their sustainability efforts Progress made on cross contamination and space constraint issues Greater sharing of best practices and collaboration (e.g., SAM and this conference) Increased emphasis by all stakeholders and significant progress by restaurant and retail tenants over time Innovation Innovation Innovation 39

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