Clean Water Challenges, Risks & Mitigation Shangri-La Hotel & Resorts

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Clean Water Challenges, Risks & Mitigation Shangri-La Hotel & Resorts UN Round table Discussions, Bangkok 25 August 2016 Woon Swee Tong, Dir. Of Engineering

Global Challenges a perspective Source: Internet - Global Future Studies & Research - The Millennium Project

Our Hotels & Resorts Water Supply Sources 100% Municipal/city supplied the majority of hotels 100% In-house produced Desalination plant remote resorts Combination of water supply: City + Desalination Plant + Other Sources Other Sources In-house Sewage Treatment Plant Rainwater Harvesting Plant Truck-in water

Major Water Challenges & Risks for the Hotels External Factors Diminishing Sources drying up of natural sources rivers, lakes, wells Availability consistency from Municipal supply?, Reliability at contracted volume, pressure, seasonal variations Quality to WHO standards? need further in house treatment?quality of untreated trucked-in supply? Etc

Major Water Challenges & Risks for the Hotels Internal Challenges External factors as above driving availability, reliability, quality Unaccounted Use lack of metering, tracking/trending, benchmarking Underground Leaks timely tracing and repairs Operational Wastage attitudes, training, discipline Water Unit Rates varied: subsidies too low rates, high rates Poor Hydraulic Systems Design oversized pumps, pressures

250,000 Shangri-La Hotels & Resorts Reduction in Average Annual Water Use Per Hotel, Cu Mt 200,000 214,774 206,444 205,162 182,481 172,351 167,735 150,000 100,000 50,000-2010 2011 2012 2013 2014 2015

Main Areas of Water Use in Hotels & Resorts Potable Water Guestrooms basins, showers, bathtubs kitchens, swimming pool, water features etc Quality to WHO standards with UV treatment at outgoing after storage tanks Flushing Water Water closets cistern and flush valves Urinals auto sensors and self closing taps Quality preferred treated recycled STP water Potable water if STP not available Standards Water basins - < 6 liters/minute Showers < 12 liters/minute Standards WCs - 4.5 to 6 liters/minute Urinals 1.5 liters/minute Kitchen Sinks <12 liters/minute

Main Areas of Water Use in Hotels & Resorts Irrigation Garden and landscape External area washing Quality preferred treated recycled STP water Potable water if STP not available Standards Preferred auo-controlled irrigation system Fittings and hoses to be water tight Cooling Tower Make-Up blowdown Quality preferred treated recycled STP water Potable water if STP not available Standards Metered to monitor make-up rate for evaporation and blow down loss Taps flow rate <12 liter/min

Group s Mitigation Measures Constant Standards Review adopt more stringent and mandatory National codes? Kitchen taps 6 liters/min instead of 12 liters/min Basins 4 liters/mon instead of 6 liters/min Showers 9 liters/min instead of 12 liters/min Benchmarking and Aggressive Reduction Targets 1 st 5 years 2011-2015 Group Water Reduction Target (next slides) 2 nd 5-years 2016-2020 Group Water Reduction Target Monitoring and Analytic Tools sub-metering, trending and analysis Management Drive Management involvement Best Practices New Technologies research, adopt and implement

Water Footprint (KL/ business unit) Shangri-La Group s First 5 Years Reduction Plan Reduce Water Consumption Intensity by 20% - 2010 as Base Year Actual Achievement at end of 2015-28% Target 5 Years Trend Actual 5 Years Trend 1.00 0.95 0.90 0.85 0.80 0.98 0.98 0.95 0.88 Base line Intensity 0.92 0.89 0.83 0.80 0.86 28% Reduction 0.83 0.75 0.72 0.70 0.69 0.65 0.60 2010 2011 2012 2013 2014 2015

Next 5 years : 2016 to 2020 Group Water Target 15% reduction in Water Intensity (Cu.Meter per Business Unit) with 2015 as Baseline Level 1.2 Actual Target 1.0 0.8 0.98 0.88 0.83 0.80 0.72 2016 YTD 0.69 0.69 0.6 0.67 0.65 0.63 0.61 0.59 0.4 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Base Year

Summary Global Challenge water right in there!! Water Supply Sources for Hotels & Resorts Major Water Challenges & Risks Reduction in Shangri-la Hotels Annual Consumption Main Areas of Water Use Shangri-La Group Mitigation Measures Reduction Targets Achievement for 1 st and 5-years plan and new target for next 5 years Think Out of the Box.?

Out of the Box? 5-Star Deluxe Operations. Remove Bathtub in Guestrooms to Reduce Water Consumption?

THANK YOU