BUILDING
-
BETTER TOMORROW,
TODAY
2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 2 |
Table of Contents
Approach to Sustainability | 11 |
People | 20 |
Diverse Workforce | 21 |
The Associate Experience | 30 |
Human Rights | 36 |
Community Impact and Service | 38 |
Planet | 41 |
Commitment to Green | 42 |
Climate and Energy | 48 |
Water | 50 |
Waste | 51 |
Responsible Sourcing | 52 |
Performance | 54 |
Corporate Governance | 55 |
and Ethical Behavior | |
ESG Governance and Oversight | 56 |
Risk Management | 57 |
Data Security and Privacy | 58 |
Public Policy and Political Activity | 59 |
Appendices | 60 |
Sustainability Policies | 61 |
Performance Tables | 62 |
GHG Emissions Methodology | 63 |
SASB Index | 64 |
TCFD Index | 67 |
Choice Hotels 2023 Environmental, Social and Governance Report
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 3 | |
Letter from CEO Patrick Pacious
For more than 80 years, Choice Hotels International, Inc. has put people first. Our vision to bring people together and enable their success provides the foundation for us to champion our franchise owners, support our associates, elevate the guest experience, and give back to our local and global communities.
Every day, we advance our vision through our sustainability strategy and initiatives as we work to further embed sustainability principles throughout our organization.
This past year was pivotal for our business and our sustainability journey. We completed the integration of the Radisson Hotels Americas business within a year of acquisition, a testament to our team, as well as our experience and expertise. We also opened our new worldwide headquarters in North Bethesda, Maryland, designed with sustainability and associate wellbeing in mind.
After analyzing Choice's climate-related risks and opportunities, we published our findings in our inaugural Task
Force on Climate-RelatedFinancial Disclosures (TCFD) report.We also signed a public commitment letter with the Science Based Targets initiative to set science-basedtargets to reduce our greenhouse gas emissions. We increased support and resources for our franchisees through our refreshed Room to be Green program, which provides a more ambitious pathway to creating more sustainable hotels. We also strengthened our approach to human trafficking prevention with refreshed training and resources available to our associates and franchisees.
With the integration of Radisson Americas, we seized the opportunity to enhance the associate experience and wellbeing, while reinforcing our inclusive, people-centered culture. We are taking a holistic approach to support the evolving needs of our associates, including adding new associate benefits. Our Choice Resource Groups continued to advance our focus on diversity, equity and belonging and we welcomed the Green Team, a new associate resource group dedicated to driving environmental awareness.
Our sustainability practices aren't just good for our communities and the planet - they are also good for business. Finding new ways to reduce water and energy use at our Choice-branded hotels, for example, can benefit the environment while also boosting our franchisees' bottom lines. We are proud of the progress we made in 2023 and look forward to continuing our evolution and growth, all while keeping people at the forefront of our efforts, welcoming every guest everywhere their journey takes them.
Patrick Pacious
President & CEO
Choice Hotels 2023 Environmental, Social and Governance Report
PEOPLE | PLANET | PERFORMANCE | APPENDICES | |
About This Report
We are proud to present the Choice Hotels International (Choice) 2023 Environmental, Social and Governance (ESG) Report, which details the advancement of our sustainability initiatives during fiscal year 2023 (January 1, 2023 to December 31, 2023). All references are to the 2023 fiscal year unless otherwise stated.
This report highlights our journey and progress as we aim to build a lasting legacy of sustainability and wellbeing for our franchisees, associates, guests, communities and world.
Choice acquired Radisson Hotel Group Americas (Radisson) in 2022 and the integration of the business was completed in December 2023. References to "our associates" include all corporate employees; any references pertaining to managed hotel employees are
clearly identified.
Sustainability Frameworks and Disclosures
This report was prepared in alignment with Sustainability Accounting Standards Board (SASB) Hotel & Lodging standards. We also align certain practices with principles, standards and frameworks contained in the United Nations Sustainable Development Goals (SDGs), the United Nations Universal Declaration of Human Rights, the Carbon Disclosure Project and the Task Force on Climate-related Financial Disclosures (TCFD). The inaugural Choice TCFD Reportwas published in December 2023.
Choice Hotels 2023 Environmental, Social and Governance Report
4
Cambria Hotels Boston Downtown - Seaport, MA
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 5 | |
Materiality
This report may use certain terms, including "material," "materiality," "significant" and other similar terms, to refer to environmental, social and governance issues that are important to Choice and our stakeholders. Used in this context, these terms are not intended to be construed in accordance with the U.S. federal securities laws or any other laws of the United States or any other jurisdiction, or as these terms are used in the context of financial statements and financial reporting. Matters considered material for purposes of this report may not be considered material in the context of our financial statements, reports with the SEC, or our other public statements, and the inclusion of information in this report is not an indication that such information is necessarily material to us in those contexts.
As the basis of this report, we've conducted a materiality assessment to understand the most significant environmental, social and governance issues for us and our stakeholders. Sustainability and corporate responsibility topics are considered material for us if they influence the judgment and decisions of our internal and external stakeholders, as well as have an impact on them and our business.
This report and its content are not substitutes for financially material information provided in Choice's SEC filings including, but not limited to, our Annual Reports on Form 10- K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Choice Hotels 2023 Environmental, Social and Governance Report
Forward-Looking Statement
This report includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our environmental, social and governance ambitions, goals, targets, initiatives, commitments and activities, as well as our future operations and long-term strategy. These forward-looking statements are based on management's current beliefs, assumptions and expectations regarding future events, which, in turn, are based on information currently available to management. We caution you not to place undue reliance on any such forward-looking
statements. Forward-looking statements do not guarantee future performance and involve known and unknown risks, uncertainties and other factors. These and other risk factors are discussed in detail in the company's filings with the Securities and Exchange Commission (the SEC), including, but not limited to, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 6 | |
About Choice
Choice is one of the largest lodging franchisors in the world.
The challenger in the upscale segment and a leader in midscale and extended stay, Choice® has nearly 7,500 hotels, representing almost 630,000 rooms, in 46 countries and territories. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay and economy enables Choice® to meet travelers' needs
in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® loyalty program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks.
$1.54 billion | ~18,000 | |
annual revenue full year 2023 | franchise owners | |
>1,800 | >64 million | |
global corporate associates | Choice Privileges | |
plus nearly 1,000 hotel | loyalty members | |
employees in the | ||
managed division | ||
>7,500 | ||
open hotels globally |
- More than 630,000 rooms in approximately 46 countries and territories
- 14 managed hotels (inclusive of 4 owned hotels)
- 10 fully owned hotels
- 6 open partially owned hotels through joint ventures
- 57% average domestic occupancy rate
- More than 3.5 million square feet of total area of managed and owned lodging facilities
Radisson Blu Toronto Downtown, ON, Canada
Choice Hotels 2023 Environmental, Social and Governance Report
PEOPLE | PLANET | PERFORMANCE | APPENDICES | |
7
History of Innovation
1941 | 1995 | |
Choice | 1983 | First hotel |
becomes | website with | |
nation's first | First global | real-time |
hotel chain | marketing and | rate and |
reservations | availability | |
system | information |
2008
First hotel company to launch a soft brand
2015 | ||
New Corporate | ||
logo and identity | ||
Launched pricing | ||
optimization | ||
2009 | solution to drive | |
Choice develops | RevPAR | |
first hotel app | ||
for iOS |
2017
The first hotel company to develop a new cloud-based central reservation system in the last 30+ years
2019
The first hotel company to partner with Google to book a hotel on Google Assistant
2023
1970
First to offer guests 24-hour,toll-free reservations
1984
First to offer non- smoking rooms in every hotel
2005
First cloud- based property management system
2014
Forbes top 100 most innovative growth companies
First hotel company to offer instant book on TripAdvisor
Econo Lodge becomes the first economy brand to implement a sustainability program across the full system
2016
The first hotel company to offer immediate in- app gift card downloads
Radisson Blu Mall of America becomes the first hotel in the world equipped with the CleanO2 / CarbinX™ carbon capture technology
More information about Choice can be found in our 2023 Proxy Statementand on ourCorporate Social Responsibilitywebsite.
Choice Hotels 2023 Environmental, Social and Governance Report
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 8 | |
2023 Sustainability Highlights
Joined the American Hotel & Lodging Association (AHLA) No Room for Trafficking Advisory Council, which unites leaders across the industry in the fight against human trafficking.
Refreshed our corporate and franchisee-facing human trafficking prevention training.
Revamped and expanded our Room to Be Green program, enhancing Level 1 brand standards and adding more ambitious standards at each level.
Expanded our Total Rewards benefits program with a focus on integrated associate wellbeing.
Choice Hotels 2023 Environmental, Social and Governance Report
Publicly committed to setting near-term science based targets for reducing our greenhouse gas emissions
Launched our 12th Choice Resource Group, the Green Team, an employee-led group focused on driving awareness and engagement with sustainable practices.
Opened our new worldwide headquarters in North Bethesda, Maryland, designed with sustainability and associate wellbeing in mind.
Published our inaugural TCFD | |
Report, including conducting | |
scenario-based workshops to | |
assess climate-related risks | Radisson RED Miami Airport, FL |
and opportunities | |
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 9 | |
2023 Sustainability Goals
FOCUS AREAS | GOALS | STATUS | 2023 PROGRESS | |
Drive hotel adoption and engagement with property-level utilities | ||||
tracking dashboard, helping hotels identify opportunities for | ||||
reducing energy and water usage and costs: | In Progress | More than half of the domestic system has adopted | ||
the dashboard. | ||||
• | 100% adoption by owned and managed hotels by end of 2025 | |||
• | 90% adoption by franchised hotels by end of 2025 | |||
Environmental | ||||
Sustainability | Phase out single-use polystyrene products across domestic brands1 | Achieved | Polystyrene products have been eliminated from the | |
by end of 2023 | brand standards for all applicable brands. | |||
In Progress | Bulk amenities are included in the refreshed Room to Be | |||
Make bulk amenities standard across domestic brands2 by end of 2025 | Green Level 1, which is a brand standard across all brands2. | |||
The new requirements go into effect on Jan 1, 2025. | ||||
100% of our suppliers in the U.S. offer cage-free | ||||
eggs products. | ||||
Responsible Sourcing | Provide the hotels in our system with suppliers of cage-free eggs, | In Progress | 100% of the all-day dining restaurants at our | |
in order to source 100% of eggs used (shell, liquid and egg products) | ||||
managed hotels serve cage-free eggs products. | ||||
from cage-free sources globally by end of 2025 | ||||
Globally, approximately 13% of our hotels' total egg | ||||
spend is from cage-free eggs. | ||||
Sustainability Reporting | Align disclosures with SASB, TCFD and CDP in annual reporting by | Achieved | This goal was achieved ahead of schedule in 2023. | |
end of 2025 | ||||
- Does not apply to the Ascend Hotel Collection and Radisson Collection, which are soft brands.
- Does not apply to extended stay brands, which do not provide amenities on a daily basis, or the Ascend Hotel Collection and Radisson Collection.
Choice Hotels 2023 Environmental, Social and Governance Report
PEOPLE | PLANET | PERFORMANCE | APPENDICES | 10 | |
FOCUS AREAS | GOALS | STATUS | 2023 PROGRESS |
Strive to increase representation of associates who identify as | In progress | ||
a member of a traditionally underrepresented racial/ethnic | |||
demographic to 40% by end of 2027 | At the end of year one, we have seen improved | ||
Strive to increase demographic representation in senior | metrics for each of the workforce diversity, equity | ||
and belonging goals. | |||
Diverse Workforce1 | leadership levels2 by end of 2027 to 50% women and 22% leaders | In progress | |
who identify as a member of a traditionally underrepresented | |||
racial/ethnic demographic | |||
Achieve 0% differential in pay equity based on gender or racial | Achieved | Continue to monitor, evaluate and take action as needed | |
identity at the corporate level | to maintain 0% differential in pay equity. | ||
Strive to increase the percentage of newly awarded franchise | In progress | ||
agreements involving underrepresented minority owners by 50% | |||
by end of 2025 | |||
Diverse Hotel Ownership1 | At the end of year one, we have seen improved metrics | ||
Strive to increase the percentage of newly awarded franchise | In progress | ||
for each of the diverse hotel ownership goals. | |||
agreements involving women owners by 50% by end of 2025 | |||
Of financial incentives available for owners, strive to provide $25 million | In progress | ||
to women and/or underrepresented minority owners by 20253 | |||
- For all applicable focus areas, the goals are aspirational. Choice does not consider protected class status in employment or contracting decisions.
- Senior Director level and above; pertains to U.S.-based corporate associates.
- Contracts with entities 50%+ owned by underrepresented minorities and/or women are included toward these goals.
Choice Hotels 2023 Environmental, Social and Governance Report
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Choice Hotels International Inc. published this content on 23 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2024 20:24:23 UTC.