Corporate Responsibility at Hilton Worldwide

Corporate Responsibility at Hilton Worldwide CONFERENCE OF TOURISM & HOSPITALITY: THE HIGHWAY TO SUSTAINABLE REGIONAL DEVELOPMENT Best Western Congress Hotel, Yerevan, Armenia June 28 30, 2013 Armin Zerunyan Country General Manager, Full Service Hotels Hilton Worldwide

Sustainable Tourism and Global Trends Drivers for change Shrinking resources / environmental problems Economic uncertainties Social unrest Shifting consumer expectations Consumers do not specifically look for sustainability they are expecting it from tourism businesses G. Lipmann s Green Growth 2050 vision Travelism Tomorrow : sustainable mobility + sustainable products + sustainable lifestyles 1

What does Prof. Lipman s Travelism Tomorrow suggest? The sector represents some five per cent of the global economy directly, and another five per cent through the indirect economy wide impacts of its supply chain (WTTC, 2011). International arrivals have increased from 25 million to 940 million between 1950 and 2010 (UNWTO, 2011a; UNEP, 2011a:414). The UNWTO forecasts international arrivals to reach between 1.7 and 1.9 billion by 2030 (UNWTO, 2011b:20). A green growth vision in tourism encompasses sustainable destinations, sustainable mobility and sustainable lifestyles. All stakeholders must be engaged: on the supply side it is air, land and water transport, accommodation, tour operators and tourist attractions and on the demand side travelers themselves.

What does Prof. Lipman s Travelism Tomorrow suggest? In the absence of a global multilateral solution, the industry has responded to these realities in a fragmented way and frankly with high aspirations and much lower indications of how to achieve them in the real world. To paraphrase Thomas Friedman s (2008) book Hot, Flat and Crowded, what is required is reduced dependence on so called black energy, i.e. oil or coal, and replacing it with clean energy, i.e. solar, wind, tidal and clean, safely sited, nuclear. Travelism cannot make the change in isolation, but can be a lead catalyst for change in other sectors. The sector has deep supply side linkages into agriculture, manufacturing, construction and service sectors; and immense consumer communication and marketing interface on the demand side. Consequently any change process must in part be bottom up and be based on the lived reality of local people.

Hilton Worldwide Overview Hilton Worldwide is the leading global hospitality company, spanning the lodging sector from luxurious full-service hotels and resorts to extended-stay suites and mid-priced hotels Our brands are comprised of more than: - 3,900 hotels - 650,000 rooms Hilton Worldwide is the largest hospitality company in the U.S. by number of rooms Since 2007, Hilton Worldwide has surpassed all major hotel companies in global room growth Waldorf Astoria Orlando 4

Hilton Worldwide Brands Luxury Full-Service Focused-Service Timeshare 5

Hilton Worldwide in Turkey Where we are today! Brand Open Pipeline Total Properties Rooms Properties Rooms Properties Rooms Conrad 1 590 0 0 1 590 Waldorf 0 0 0 0 0 0 Hilton 10 3,108 3 1,346 13 4,454 DoubleTree by Hilton 6 1,068 2 272 8 1,340 Hilton Garden Inn 5 880 11 1,822 16 2,702 Hampton by Hilton 2 184 6 744 8 928 Total 24 5,830 22 4,184 46 10,014 6 June 2013 6

Our Mission, Vision and Values We will be the preeminent global hospitality company the first choice of guests, team members and owners alike. To fill the earth with the light and warmth of hospitality. Conrad N. Hilton Hospitality Integrity Leadership Teamwork Ownership Now 7

Hilton Worldwide Corporate Responsibility To fill the earth with the light and warmth of hospitality.

HW Corporate Resonsibility Set Priorities in a Global Context Delivering Business Impact, Meeting Stakeholder Expectations, and Operating in a Changing World 9

Travel with Purpose Create Societal Impact Education & Life skills Workforce Development & Career Pathways Diversity & Inclusion Local Economies Community Service Basic Needs (Food & Shelter) Disaster Preparedness & Relief Global Commerce Cultural Experiences Managing Natural Resources (Energy, Carbon, Waste, Water) Restoration and Awareness Human Rights Providing shared value to our business and communities 11

Travel with Purpose Tools and Programs for Success Structures & resources for alignment Commitment Support programs Awareness raising Networking Driving sustainable growth through Partnerships Managing risk and issues External communication 12

Creating Opportunities Delivering great guest experiences Supporting hospitality education internally and externally (education, training and mentoring) Building rewarding careers Supporting our business partners Fostering diversity & inclusion Being the employer of choice 13

Creating Opportunities Partnerships Books For Kids The Books for Kids Foundation promotes literacy among all children with a special emphasis on low-income and at-risk preschool-aged children. Room to Read Room to Read believes all children, regardless of gender or background, have a right to education, and by empowering children through this lifelong gift, they help people around the world achieve their full potential. International Youth Foundation The International Youth Foundation (IYF) is a global organization that seeks to realize the power and promise of young people. 14

BRIGHT BLUE FUTURES A GLOBAL COMMITMENT TO YOUTH DEVELOPMENT AROUND THE WORLD Hilton Hotels & Resorts brand wide community relations program focused on providing stability & hope to youth in every community where we live and work.

Strengthening Communities Supporting job opportunities and economic growth in the areas where we operate 800 jobs in Turkey by 2014 Providing expertise and resources to address social issues and critical needs (hunger, shelter) Protecting human rights and preventing child trafficking Responding to disasters HW matched donations to help in relief efforts in response to the earthquakes in Turkey 16

Strengthening Communities Partnerships GlobalGiving GlobalGiving is a leading international charity fundraising website that connects donors to global organizations and supports the exchange of funds needed to improve communities around the world. ECPAT As a subscriber to ECPAT's Code, Hilton Worldwide implements policies that condemn child trafficking and exploitation and provides training to help team members identify and report illicit activities. 17

Celebrating Cultures Sharing and preserving the history and unique heritage of the diverse communities where we operate in Supporting local cultures and promoting cultural exchange and experiences Fostering understanding and connections Each of our hotels reflects the culture, food and people of its location, providing unique cultural experiences 18

Celebrating Cultures Partnerships DonorsChoose.org DonorsChoose.org is an online charity that makes it easy for anyone to help students in need. Global Kids Global Kids is an educational organization that works to ensure urban youth have the knowledge, skills, and experiences they need to succeed in school, participate effectively in the democratic process, and achieve leadership in their communities and on the global stage. 19

Living Sustainably The first major hospitality company to require and mandate a property-level measure of sustainability, LightStay TM Improving hotel performance while reducing our environmental footprint and protecting the world we live in for future generations 2008 2014 targets to reduce: Energy by 20% CO 2 emissions by 20% Waste output by 20% Water by 10% Repurpose Restoration of natural heritage, habitats and resources Guest engagement providing sustainable guest services 20

Living Sustainably Partnerships Global Soap Project The Global Soap Project collects unused bars of soap from hotels around the world and reprocesses it into new bars that are given to populations at risk of sanitation and hygiene-related disease. Good360 As the world's largest online donation marketplace, Good360 leverages the latest technological and social networking developments to create new and engaging online solutions that strengthen non-profits and expand corporate citizenship. Sundance Institute The Sundance Institute is a global, non-profit organization dedicated to the discovery and development of independent artists and audiences in film and theatre. BSR BSR works with its global network of nearly 300 member companies to build a just and sustainable world via i.e. Centre for Sustainable Procurement. 21

Living Sustainably LightStay Proprietary system Calculates and analyzes sustainability performance Measures multiple utility and operational metrics Property-to-Property social networking tools Assists in driving efficient hotel design and construction Enables the impact of any meeting or conference held at a Hilton Worldwide property to be measured Provides impact data that customers can use in their own sustainability reporting 22

Living Sustainably ISO Certification All hotels worldwide awarded ISO 9001 certification for Quality Management Systems and ISO 14001 certification for Environmental Management Systems International standards, assessed by a third-party certification body One of the first multinational organizations to certify its entire system One of the largest ever volume certifications of commercial buildings 23

Living Sustainably Our Results 2008-2011 Reduction of energy consumption by Reduction of CO 2 generation by Reduction of waste output by Reduction of water consumption by 9.7% 10.9% 23.3% 7.5% US$147M projected savings from efficiency Is It Authentic? YES. Results have been independently audited. We commissioned DEKRA Certification, Inc. & DNV KEMA to perform third-party audits. Just like a financial statement, we verify externally our overall system, process and results. This extensive audit determined LightStay a best-in-class system for measuring sustainability performance. 2400+ Hilton Worldwide properties using LightStay (estimated savings adjusted for weather and occupancy against the 2008 baseline). 24

Living Sustainably Team member engagement 25

External Communication www.hiltonworldwide.com/corporate-responsibility 26

Key messages Think globally act locally Sustainability is important in tourism and hotel operations We recognize the positive impact we can make on a more sustainable future locally and globally through responsible operation practices Practical sustainability solutions are available, well tried and known to deliver: Operational efficiency and assistance in pre-empting legislation Improved environmental performance Competitive advantage to the business Enhanced experience for the customer and better quality of service Social, environmental and economic benefits to the business and local community By active involvement in sustainability practices we offer our customers a choice of being responsible while travelling We know that being responsible makes good business sense 27

Thank you!