Sustainability: Businesses Creating Value · •Laguna Bintan (BT Bintan, Angsana Bintan, Golf)...

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Sustainability: Businesses Creating Value

UNWTO High Level Regional Conference on Green Tourism

3 May 2012

Michael Kwee Coordinating Director Banyan Tree Global Foundation Limited


Who is Banyan Tree?

What is Banyan Tree Global Foundation? All rights reserved. No reproduction, copy or transmission without prior written consent


• Over 9,000 associates representing more than 55 nationalities • Over 50% of top management is non-Singaporean

• 30 hotels and resorts • 65 spas

• 82 retail galleries • 2 golf courses

Singapore-listed Banyan Tree Holdings is a leading developer, designer and operator of premium resorts, hotels, spas, and galleries

•Three award winning brands:

Who is Banyan Tree?


Sustainability arm of Banyan Tree, directing and guiding the continual process of the overall commitment to CSR Manages & administers funds contributed for externally focused sustainability efforts •Associate organization of Banyan Tree

•Established in 2009

•Based in Singapore

•Leadership: – Chairperson: Ms. Claire Chiang

– Co-Chairperson: Mr. Ariel Vera

– Chief Financial Officer: Mr. Eddy See

– Coordinating Director: Mr. Michael Kwee

Banyan Tree Global Foundation


What is Sustainability / Corporate Social Responsibility?



Triple Bottom Line: •Sustainable economic development •Minimise negative environment impacts •Achieve positive contributions to society How a corporation interacts with society at large Businesses exist to CREATE VALUE • Value for consumers: Deliver goods and services • Value for investors: Generate returns on investment • Value for employees: Provide a setting conducive to

productivity • Value for community: Secure the license to operate

What is Sustainability?


“…most of the observed increase in global average temperatures since the mid-20th century is very likely due to the observed increase in anthropomorphic green house gas concentration”

- IPCC’s 4th Assessment Report (2007)

Why is Sustainability Important?



Adapted from Caux Roundtable (2007)

Tangible Values

Intangible Values

Financial Capital

Tangible Assets

(Generally Audited Financial Information)

(Generally reported Non-financial Information)

Reputational Goodwill

Labor

Brand loyalty

Sustainability

Human Capital

Community support

Satisfaction, Engagement, and

Motivation

The Challenges Facing Sustainability

Environment



Banyan Tree’s Efforts


Bang Tao Bay before Laguna Phuket…

before Laguna Phuket…

Bang Tao Bay after Laguna Phuket…

…after Laguna Phuket

The Banyan Tree Genesis



Green Imperative Fund

Fund raising mechanism

Opt-out guest contribution

• US$2 per room night, Banyan Tree

• US$1 per room night, Angsana

Hotel matching contribution

• Matching guest room night contribution dollar for dollar

• Maintain a contribution of at least 1% of previous year’s profits


CSR1: Resource Conservation

Purpose:

Reduce Energy / Water / Waste sent to Landfill

Target: Add 1 resource conservation

initiative per year.

EarthCheck: •Banyan Tree Lijiang •Banyan Tree Ringha • Laguna Bintan (BT Bintan, Angsana Bintan, Golf) •Banyan Tree Ungasan •Angsana Velavaru •Banyan Tree Mayakoba • Laguna Phuket (Banyan Tree, Angsana, Outrigger, Laguna Holiday Club, Golf, LRH Office, LSC Community) •Banyan Tree Vabbinfaru •Banyan Tree Madivaru •Banyan Tree Seychelles •Angsana Ihuru •Maison Souvannaphoum Hotel • Singapore HQ- Office


Resource Conservation Metrics


Silver Certified: •2008 •2009 •2010 •2011

Example: Banyan Tree Lijiang

Gold Certified: 2012 (first in China)


CSR1: Cycle of Sustainability

WALK the Talk: Commitment to Sustainability &

CSR WORK the Talk:

Implement Operational Frameworks

CHECK the Work: Monitor &

Benchmark our performance

REPORTING: Report the outcomes

CONTINUALLY IMPROVE: Isolate areas for

improvement, implement programs to improve


CSR2: Greening Communities

Raise awareness of climate change

Target: Plant 2,000 trees per year Achieved, 2007 thru 2011:

Purpose:

147,111 trees planted


CSR3: Seedlings

Empower Youths via Mentorship & Scholarship

Target: 3 additional young people into the program every 2 years.

Achieved, 31 Dec 2011: • 55 young people • 55Active mentors • 43 Trained mentors • 12 Mentor Trainers

Purpose:


Environmental Value Social Value Economic Value

Banyan Tree Spa: Spa Academy

Educating on locally grown ingredients reduces emissions from import

Providing training and career path for highly skilled global employment market

Secure supply of trained & expert Spa Therapists to support global expansion

Banyan Tree Gallery: Elephant Dung Paper products

Producing products from waste materials rather than consuming new materials

additional income for traditionally low wage earning mahouts

Viable products for sale via global Banyan Tree Gallery retail network

Banyan Tree Phuket: Laguna Childcare Centre

Reduces transport for associates’ children to attend accredited childcare centre

Provides access to leading Childcare centre in Phuket for associates’ children

Additional benefit for employment raises loyalty & enhances productivity by better work life integration

Banyan Tree & Angsana Maldives:

Turtle Head Start

Protects endangered Green Sea Turtle population

Protects marine environment upon which over 80% of jobs are dependant

When guests better understand thriving reef ecosystems, their experience increases significantly

Value Creation


“Resorts in the Third World have both the potential to be agents of social and economic development in less developed areas, or as a source for friction and alienation within the local economy”

- Mr Ho KwonPing, 1992 Banyan Tree Founder & Executive Chairman


Parting thoughts


Thank you!

For more information on Banyan Tree’s sustainability efforts & initiatives, please visit:

www.banyantreeglobalfoundation.com

and

www.banyantree.com/csrpublications

Sustainability: Businesses Creating Value · •Laguna Bintan (BT Bintan, Angsana Bintan, Golf)...

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