WYNDHAM WORLDWIDE SUSTAINABILITY REPORT

Transcription

1 WYNDHAM WORLDWIDE SUSTAINABILITY REPORT

2 TABLE OF CONTENTS INTRODUCTION EXECUTIVE STATEMENTS A. SUSTAINABILITY REPORT OVERVIEW a) Report Overview b) Sustainability Guidelines B. DRIVING FINANCIAL CAPITAL WYNDHAM WORLDWIDE Who We Are and How We Do Business a) Company Profile b) Governance c) Board of Directors d) Ethical Conduct e) Human Rights f) Our Values, Policy and Sustainability Strategies g) Wyndham Green Sustainability Framework C. DRIVING STAKEHOLDER VALUE a) Stakeholder Chart D. DRIVING NATURAL CAPITAL ENVIRONMENT a) Wyndham Green Overview b) Global Green Council c) Examples of Driving Innovation d) Environmental Performance 1) Targets and Goals 2) Global Footprint E. DRIVING HUMAN CAPITAL a) Associates b) Diversity 3) Work with Associates and Customers 4) Driving Value to Suppliers 5) Complying with Regulations i) Associate Opinion ii) Count on Me! iii) Work Life Balance iv) Be Well Program v) Professional Growth vi) Building Tomorrow s Leaders i) Workforce ii) Supplier c) Women on their Way d) Wishes by Wyndham F. AWARDS AND RECOGNITION G. GRI CONTENT INDEX H. GRI LEVEL STATEMENT I. ASSURANCE 2

3 Statement by Stephen P. Holmes, Chairman and CEO EXECUTIVE STATEMENTS Stephen P. Holmes, Chairman and CEO The Right Honourable Brian Mulroney, member, Board of Directors As the global market continues to grow and integrate, the hospitality industry has an increasing ability to shape innovation on the world stage. Driving change in how we operate around the world and increasing knowledge among millions of associates, customers, and guests, Wyndham Worldwide, is excited to be a leader in the global movement reducing the collective environmental impact of the hospitality industry. This commitment to global sustainability comes at a time of both exciting growth and serious economic challenges facing our industry. In 2010, the World Travel and Tourism Council estimated the travel and tourism economy accounted for 9.2 percent of global GDP, providing 235 million jobs or 8.1 percent of global employment. As one of the world s largest hospitality companies, we understand our important role, and the impact we can have on the industry. With over 58 brands in nearly 100 countries, we leverage the versatility of our unique hospitality portfolio of hotels, vacation exchange, vacation rentals, and vacation ownership to drive sustainable, profitable growth. Such change is generated through collaborative partnerships, and at Wyndham Worldwide, we are fortunate to have individuals throughout all levels of our company who combine their passions, talents, and expertise in developing innovative sustainable solutions. Our sustainable practices are developed through our Wyndham Green program, now in its fifth year as one of the top five strategic priorities at Wyndham Worldwide. With a focus to deliver triple bottom line results for our people, planet and profits, Wyndham Green works to encourage engagement among all our key stakeholders and provide the mechanism to turn innovative ideas into achievable results. Inherently how we do business, innovative thinking is part of the fabric of our company, with ideas and passion that have driven Wyndham Worldwide to become one of the world s largest and most successful hospitality companies. Throughout this report, we highlight just a few examples of the innovation that have enabled our company, and our sustainability strategies, to grow considerably in a relatively short period of time. While this is our first official sustainability report, our commitment and success in developing environmentally-responsible practices is far from a new concept for Wyndham Worldwide. Our sustainable legacy begins in the histories of many of our company s hospitality brands, such as Netherlands-based Landal GreenParks, which has embraced and adopted sustainable practices since its founding in We are incredibly proud of these legacies, for they have helped shape our sustainability vision that is captured in our inaugural sustainability report. For Wyndham Worldwide, this report is another important step of a larger journey, where we continually set our goals higher for our people, our company, and our planet. 3

4 The Right Honourable Brian Mulroney, member, Board of Directors Mary Falvey and Faith Taylor Wyndham Worldwide is fortunate to have the Right Honorable Brian Mulroney serve on its Board of Directors. He has been a Director since Wyndham Worldwide was listed on the NYSE in August Mr. Mulroney was Prime Minister of Canada from 1984 to 1993, and is currently Senior Partner at the Montreal-based law firm, Ogilvy Renault. Throughout his career, Prime Minister Mulroney has displayed the finest attributes of a visionary. As Prime Minister of Canada, Brian Mulroney s close relationship with US President Ronald Reagan and President George H. W. Bush resulted in a landmark treaty on acid rain. In 2006, he was named the Greenest Prime Minister in Canadian History by the Corporate Knights, a magazine focused on corporate responsibility. He was honored for his positive environmental impact for helping to improve air quality, maintaining biodiversity, and reducing pollution. In addition to establishing the Acid Rain Accord under Prime Minister Mulroney, the Canadian Government also established the Canadian Environmental Protection Act, the Canadian Environmental Assessment Act, the Great Lakes Action Plan, and the Convention on International Trade in Endangered Species, as well as ratifying the Montreal Protocol. Wyndham Worldwide is proud to have an environmental steward and leader such as Mr. Mulroney on its Board of Directors. His dedication and commitment is reflected by the legacy he established in Canada during his tenure as Prime Minister. Mr. Mulroney has participated and provided input into the Company s Wyndham Green sustainability program. He has stated, the direction Wyndham Worldwide has taken to focus on sustainability since the Company began life as a public company in 2006 has been impressive. We have made tremendous progress and it continues to be a strategic focus that will make a lasting impact. Wyndham Worldwide has benefitted from Mr. Mulroney s insight and guidance as we continue to build our sustainability program for current and future generations. Faith Taylor, vice president of Sustainability and Innovation and Mary Falvey, executive vice president and chief human resources officer Our first sustainability report marks an important milestone for something that started as a grassroots initiative five years ago and today has grown into an industry-leading global policy and program. Our commitment is based on the people in our organization who continue to make Wyndham Green the viable, profitable, and successful enterprise that makes a difference every day. Through their innovative spirit, every associate has a voice and a role in Wyndham Green and the sustainable change we drive to create value and conserve our natural resources. As one of the world s largest hospitality companies, we believe Wyndham Worldwide plays an important role in advancing sustainability innovation. This report helps evaluate our efforts and guide our progress for the future to meet the ever evolving needs of our business, our customers, and our planet. Throughout this report we have highlighted how innovation is integrated into the fabric of our company with this symbol: 4

5 A SUSTAIN- ABILITY REPORT OVERVIEW REPORT OVERVIEW During the past five years, Wyndham Worldwide has continued to develop its sustainability practices and innovation through its Wyndham Green program, with the results of these efforts captured in this inaugural sustainability report. Wyndham Green published Global Best Practices reports in 2009 and 2010 to share results of sustainability initiatives across the Company s business units and locations around the world. These reports provided a foundation to communicate progress as the tracking and measurement of the Company s global environmental footprint continued to develop. This first sustainability report provides further detail on the overall sustainability strategy, core values and performance of the Wyndham Green program, with a primary objective to quantify environmental results, while measuring progress in line with industry standards yet, customized for our organization. Our Business Model - Wyndham Worldwide is among the largest hospitality companies in the world encompassing the Wyndham Hotel Group, Wyndham Exchange & Rentals, and Wyndham Vacation Ownership. Combined with our corporate and support locations around the world, the scope and scale of our Company is unique in our industry, with a broad range of assets encompassing hotels, timeshare resort properties, and vacation rentals, as well as corporate offices, data and call centers. Accordingly, we must define our metrics and data as we report our global footprint to our stakeholders, which are as equally diverse as our businesses. They encompass associates, officers, shareholders, industry partners, vendors, and customers, and include our hotel franchise owners, timeshare owners, and the millions of guests around the world. Scope of Our Report - To ensure an accurate reflection of our unique portfolio and wide global reach, we carefully established the boundaries and scope of this report by implementing a market test assessing our methodology and process. We define our boundaries to include facilities of which we have operational control, and implement and track our results through a customized eco-software program. We have also followed the World Resources Institute and the World Business Council of Sustainable Development Greenhouse Gas Protocol standards to define and quantify our Scope 1 and 2 greenhouse gas emissions (GHG) and will not report on our Scope 3 emissions at this time. We view this inaugural report as a baseline to build upon moving forward. For example, in measuring water usage and conservation, we have an initial focus on a limited portion of our portfolio, which we plan to expand in future reports. For Wyndham Worldwide, our commitment to sustainability is a journey, and a destination. Our first sustainability report provides us with the framework in which we will continue to measure and improve on our successes for years to come. 5

6 A Sustainability Guidelines We have developed the content of this sustainability report in line with the Global Reporting Initiative (GRI) G3.1 Guidelines, and plan to report biannually. This report s content, topics, and performance indicators represent the most material issues to our organization and to our stakeholders as identified through our governance structure of our Wyndham Green Council in partnership with our corporate groups, business units and strategic partnerships. This process led to our key priorities of our ongoing programs which were used to define the content in this report and adapted to the GRI guidelines. These groups participated in the development of the report to arrive at the final set of performance indicators. Many of our programs have been developed together with our stakeholders. We expect that our key stakeholder groups, as identified in section C, will utilize this report to better understand our sustainability program. Being our first report, we look forward to defining and building future content from the feedback received. This report covers our wholly-owned, leased, and managed assets primarily for the calendar years. It includes information on key issues of our supply chain and collective information from the Wyndham Green Council, the Global Best Practices Reports, and input from leaders cross-functionally across the Company, as well as our external partners. Two years of data have been included where possible, and independent consultants and auditors have been engaged in reporting our Scope 1 and 2 energy and GHG emissions data. The financial data prepared for the report is derived from the Wyndham Worldwide Form 10-K. We are declaring the report at a C level based on a GRI application level check listed on page 53 and assurance was sought on our GHG emissions. Deloitte & Touche LLP conducted a review, in accordance with attestation standards established by the American Institute of Certified Public Accountants, to provide a moderate level of assurance on our Statement of Greenhouse Gas GLOBAL BEST PRACTICES Emissions for the year ended December 31, Their Independent Accountants Review Report can be found along with our Statement of Greenhouse Gas Emissions for the year ended December 31, 2010 in appendix I. For more information about the Global Reporting Initiative, please visit We welcome stakeholder feedback on this report at green@wyn.com GLOBAL BEST PRACTICES 2009 GLOBAL BEST PRACTICES GLOBAL BEST PRACTICES 1 6

7 B DRIVING FINANCIAL CAPITAL HOW WE DO BUSINESS COMPANY OVERVIEW This initial sustainability report reflects the uniquely diversified business model of Wyndham Worldwide and demonstrates how sustainability aligns with the Company s key strategies. With our operations encompassing hotels, vacation exchange, vacation rentals, and vacation ownership (timeshare), insight into the scope of the business units provides the best foundation by which to analyze and evaluate our efforts and how innovation and collaboration has played such a crucial role in our sustainability progress. Driving financial capital and growing our cash flow and operating margins are a strategic priority for Wyndham Worldwide. Wyndham Hotel Group is the world s largest hotel company based on the number of properties, franchising in the upscale, midscale, economy and extended stay segments of the lodging industry and providing hotel management services globally for full-service hotels. Wyndham Exchange & Rentals is the world s largest member-based vacation exchange network with 3.8 million members and the world s largest global marketer of serviced vacation rentals with nearly 93,000 properties in approximately 100 countries. Wyndham Vacation Ownership is the world s largest vacation ownership business, as measured by the number of vacation ownership resorts, individual vacation ownership units and owners of vacation ownership interests. Wyndham Vacation Ownership develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its three primary consumer brands, CLUB WYNDHAM, WorldMark by Wyndham, and Wyndham Vacation Resorts Asia Pacific. Wyndham Worldwide was formed on July 31, 2006 as a result of a spin-off from Cendant Corporation. While Wyndham will celebrate its fifth anniversary in 2011, many of its hotel, vacation exchange and rental, and vacation ownership businesses having long and proud histories. In Wyndham Hotel Group, both the Howard Johnson and Ramada hotel brands opened for business in Today, the Wyndham Hotel Group is the world s largest hotel company, with 7,190 franchised hotels and 609,600 hotel rooms worldwide.* Established in 1974, RCI pioneered the timeshare exchange concept and remains the industry s global leader today as part of Wyndham Exchange & Rentals. With nearly 97,000 properties around the world, Wyndham Exchange & Rentals is also the global leader in serviced vacation rentals and boasts many of the world s most renowned vacation rentals brands with rich histories starting as early as Hoseasons in 1940, Landal GreenParks in 1954 and Novasol in * As of March 31,

8 B Company Overview CLUB WYNDHAM, WorldMark by Wyndham and Wyndham Vacation Resorts Asia Pacific, began vacation ownership operations in 1980, 1989 and 2000 respectively, and as of December 31, 2010, Wyndham Vacation Ownership had developed or acquired more than 160 vacation ownership resorts throughout the United States, Canada, Mexico, the Caribbean and the South Pacific that represent approximately 20,500 individual vacation ownership units and more than 800,000 owners of vacation ownership interests. Many of our brands have legacies in sustainability practices that precede the formation of Wyndham Worldwide. Landal GreenParks is one of the oldest green brands in the Wyndham Worldwide portfolio. Sustainability is a key element of their mission statement; it is incorporated into their work flow and touches upon the essence of how the parks coexist in their natural environments. They have implemented a 100-item green savings checklist overseen by energy officers, use an E-view energy management system, and help to preserve the biodiversity of over 250,000 acres of parks near Landal GreenParks in partnership with Natuurmonumenten. Wyndham Rio Mar Beach Resort & Spa, Rio Grande, Puerto Rico Wyndham Vacation Resorts, Pagosa Springs, Colorado, USA The Wyndham Hotel and Resorts brand developed the Earth Smart linen re-use program in the 1980 s. This consumer linen reuse program is still implemented today at properties throughout the Wyndham Worldwide portfolio. The histories and experience of these brands serve as the foundation for the current and on-going efforts of the Wyndham Green program. Wyndham Vacation Rentals, Grand Mayan, Cancun, Mexico 8

9 B Strategic Priorities Wyndham Worldwide at a Glance* (please see page 40 of our Form 10K for external reporting metrics and footnotes) As of 12/31/2010 As of 12/31/2009 During 2010, we derived 74% of our revenues in the U.S. and 26% internationally. Approximately 60% of our revenues come from fees that we receive in exchange for providing services. We refer to the businesses that generate these fees as our fee-for-service businesses. Net Revenues Operating Expenses $3.85 Billion $3.75 Billion $2.95 Billion $2.92 Billion Our mission is to be the global leader in travel accommodations and welcoming our guests to iconic brands and vacation destinations through our signature Count On Me! service. Our strategies to achieve these objectives are to: Total Assets Employees $9.42 Billion $9.35 Billion 26,400 24,600 Increase market share by delivering excellent service to drive business customer, individual consumer and associate satisfaction. Grow cash flow and operating margins through superior execution in all of our businesses. Rebalance the Wyndham Worldwide portfolio to emphasize our fee-for-service business models. Attract, retain and develop human capital across our organization. Hotels Number of hotel rooms Vacation Exchange & Rentals Average Number of Members 7,210 7,190* 7,114 7, , ,600* 597,700 3,753,000 3,782,000 Support and promote Wyndham Green and Wyndham Diversity initiatives. Gross Vacation Ownership Interest Sales $1.46 Billion $1.32 Billion * As of March 31, 2011 Source: 10K

10 B Wyndham Worldwide at a Glance 2010 REVENUES BY TYPE** 12% 11% 5% 44% 28% Service & Fees Membership & Membership Fees Franchise Fees Consumer Financing Other VOI Sales 2010 NET REVENUES BY REGIONS** (In millions) REGIONAL BREAKDOWN (HOTELS)* REGION 2011 U.S. 5,880 Canada 468 Europe/Middle East/Africa 354 Asia/Pacific 386 Latin/South America 102 Total 7,190 * As of March 31, 2011 ** As of December 31,

11 B Wyndham Hotel Group As the world s largest hotel company, Wyndham Hotel Group works to engage with its key customer base of independent hotel owners and operators in developing and sharing sustainability best practices. Since the majority of branded properties are not directly managed by Wyndham Hotel Group, and the operational processes of reducing consumption and impact vary by property, an important component of Wyndham Green continues to be active communication to this important stakeholder group. Hotel owners are represented on the Wyndham Green Council to develop and share best practices, and hotel management teams are offered ongoing education on sustainable development, outlining the business benefits and practical applications at the property-level. Together, Wyndham Green and Wyndham Hotel Group have developed a series of sustainable guidelines that provide economic and environmental benefits. With thousands of affiliated hotels, the main focus for Wyndham Hotel Group has been on energy efficiency, with programs on lighting efficiency and linen re-use to reduce water and energy usage. We continue to communicate with franchisee owners in order to keep developing and improving sustainability standards that meet the evolving needs of hotel owners and their management teams. A history of innovation at Wyndham Hotel Group includes the development of the Women on Their Way program in Recognizing the importance of and embracing female travelers, the Women on Their Way program has grown and expanded into the industry s leading female traveler resource. Wyndham Hotel Group By The Numbers Approximately 7,190 franchised hotels and 609,600 hotel rooms worldwide. Wyndham Hotel Group franchised brands represent nearly 10%* of U.S. hotel room inventory and operates one of the industry s largest loyalty programs**, Wyndham Rewards. * As of December 31, 2010 ** Based on the number of participating properties as of December 31,

12 B Wyndham Exchange & Rentals From the time that RCI invented the concept of vacation exchange and revolutionized the timeshare industry more than 35 years ago, innovation has been at the core of Wyndham Exchange & Rentals. Today, the company continues its innovative spirit by constantly working to improve member engagement and increase value for its customers. In fact, this past March RCI received the prestigious American Resort Development Association Circle of Excellence (ACE) Innovator Award from the American Resort Development Association (ARDA) for its efforts to transform the vacation exchange experience for timeshare owners. Wyndham Exchange & Rentals applies that same passion for innovation when it comes to sustainability. As a worldwide leader of vacation exchange and serviced vacation rentals, the business unit encourages its associates, clients, members and customers to join in its green initiatives. In January 2009, Wyndham Exchange & Rentals was the first Wyndham business unit to form a global green council to develop guidelines, best practices and programs to help support environmental sustainability through education, conservation, recycling and recognition. Some of the accomplishments of the green council include: RCI publications produced in North America are now printed on Forest Stewardship Council (FSC) certified paper, while the resort directory in Asia is now published on a CD instead of in print. RCI member confirmations and notifications are now sent via (where an address is available) instead of postal mail in most cases, eliminating the need for millions of sheets of paper each year. Associates in Latin America have taken part in reforestation efforts by actively working to collect and germinate seedlings from various types of trees such as apple, guava, peach, lemon or orange. Wyndham Exchange & Rentals created The Caught Green Handed award to recognize associates doing something green such as car-pooling, riding a bike to work or using a coffee mug as opposed to a paper cup. In 2010, RCI Pacific launched the Go Green Awards, the first eco-resort certification program to recognize affiliated resorts for outstanding green practices. Plans for similar award programs are now under way in Europe and U.S./Canada, and will eventually be launched globally. Wyndham Exchange & Rentals By The Numbers Industry leading vacation exchange with 3.8 million members worldwide. Approximately 97,000 vacation properties located in nearly 100 countries. Innovation is at the core of Wyndham Exchange & Rentals and its RCI brand which invented the concept of vacation timeshare exchange over 35 years ago. Today, RCI is the global leader in vacation exchange, and through its innovative spirit, has continued to improve member engagement and increase value for its customers. RCI received the American Resort Development Association Circle of Excellence (ACE) Innovator Award for its RCI Weeks Program, which transformed the vacation exchange experience for timeshare owners. 12

13 B Wyndham Vacation Ownership The vacation ownership model supports the environment by providing a viable sustainable alternative to individual second vacation homes. A consolidated vacation timeshare location is a more efficient use of building materials and operating expenses. Additionally, with ownership and marketing by the developer, there is a greater increase in occupancy and use of the resort, versus second homes that often sit idle. Wyndham Vacation Ownership facilities maintain compliance with environmental, health, and safety codes and regulations. This singular management of many properties ensures a higher rate of regulation compliance compared to hundreds of individual and disparate properties and management. In addition to the overall management, each vacation ownership facility has a large and diverse owner constituency, who are engaged and encouraged to collaborate with resort management to reduce environmental impact and increase awareness of sustainability strategies. Wyndham Vacation Ownership is an industry leader, being one of the first to develop a green certification program for their resorts focused on sustainability. For the last three years, this program has developed practical solutions that have made a positive economic and social impact. This program, which was the first of its kind in the industry, received an ARDY Award from the American Resort Development Association (ARDA) for Green Sustainability within a Company. Innovation can take shape in any number of ways. At Wyndham Vacation Ownership, innovative thinking led to the development of a new business model called, Wyndham Asset Affiliation Model, known as WAAM. This fee-forservice timeshare sales model is designed to capitalize on the large quantity of newly developed, nearly completed or recently finished condominium or hotel inventory within the current real estate market without assuming the significant cost that accompanies new construction. This business model offers turn-key solutions for developers or banks in possession of newly developed inventory, which we sell for a fee through our extensive sales and marketing channels. The business model also enables Wyndham Vacation Ownership to conserve resources by redeveloping existing land and buildings into timeshare assets. Wyndham Vacation Ownership By The Numbers: The industry and timeshare ownership market leader, with more than 160 vacation ownership resorts serving nearly 815,000 owners throughout United States, Canada, Mexico, the Caribbean and the South Pacific. 13

14 B Governance & Board of Directors In 2006, as Wyndham Worldwide was preparing to spin from Cendant Corporation, the Chairman and CEO, Stephen P. Holmes, had the unique opportunity to reflect on what was important to him as a leader and what values he thought would build a strong foundation for the newly formed company. Steve s vision is reflected in the Core Values of Wyndham Worldwide: Act with integrity in all that we do: Without integrity, the foundations of business and life crumble. Respect everyone, everywhere: Diversity and inclusion are viewed together at Wyndham Worldwide. Being inclusive expands our horizons and our society. Provide individual opportunity and accountability: As leaders, we need to actively include diversity in our thought process. Improve our customers lives: Whether we are helping our hotel franchisees or resort affiliates with their businesses or creating memorable experiences for the guests visiting our properties we strive to improve their lives through their interaction with us. Support our communities: As a large company, we provide employment that helps out the communities in which we operate. But the Wyndham philosophy is that is not enough. We need to give back to our communities to improve the world around us. We have created the Wishes by Wyndham program which embodies our philanthropic donations including the use of our time to help others. Board of Directors Our Board of Directors is comprised of seven members, six of whom are independent directors, as defined by the rules of the New York Stock Exchange. Our independent directors bring experience, oversight and expertise from outside the company and our industry, with the Chairman and CEO providing company-specific experience and expertise. Stephen P. Holmes is Chairman of the Board and Chief Executive Officer of Wyndham Worldwide. Our board believes that the combined role of Chairman and CEO promotes strategy development and execution, and facilitates information flow between management and the board, all of which are essential to effective governance. At Wyndham Worldwide, diversity is a fundamental value of how we do business, and the composition of our Board of Directors reflects that philosophy. Our board has Caribbean American, Hispanic and female representation. The Board committees study and consider key issues in depth and bring recommendations to the full Board. The Board committees consist of: Audit, Compensation, Executive and Corporate Governance. As part of the Corporate Governance Board, areas of focus include our carbon footprint, sustainability goals and compliance. Board of Directors: Michael H. Wargotz, Myra J. Biblowit, James E. Buckman, Stephen P. Holmes, Brian Mulroney, Pauline D. E. Richards, George Herrera 14

15 B Governance (continued) Wyndham Worldwide s Corporate Governance mechanisms are structured to ensure the integrity of our Core Values. The Board of Directors, through the Corporate Governance Committee oversees, and is updated about the performance and compliance of the Wyndham Green and Corporate Social Responsibility programs. Chairman and CEO Stephen P. Holmes and the Right Honourable Brian Mulroney are members of the committee and provide input into the strategy and direction of the program. The Chief Human Resources Officer attends the Corporate Governance Committee and it is led by our Executive Vice President and General Counsel. The Vice President of Sustainability oversees the sustainability department, and reports into the Chief Human Resources Officer. The Sustainability Department oversees the development of policies and strategies. Its key role is to share best practices, facilitate and coordinate initiatives across the enterprise and build and develop internal and external resources. The department also oversees the tracking and measuring of the carbon footprint, legislative compliance and communication/ reporting of the program. The Wyndham Green Council has a Sustainability Leadership Council that includes key Executive Officers such as the Chief Human Resources Officer for Wyndham Worldwide, and CEOs as well as Senior Leadership members in the business units and representatives from core functional areas. They develop and implement the Wyndham Green Strategic Plan with over 200 members of the Global Green Council worldwide. They also work with external stakeholders like franchise to help develop and implement programs. Our Codes of Conduct hold Wyndham employees and Board of Directors accountable for acting ethically and with integrity as we continue to roll out our sustainability program globally. 15

16 B Ethical Conduct Ethical Conduct and Compliance Wyndham Worldwide continues to achieve success not only for what we do, but how we do it. The dedicated efforts of associates at every level of our company who embody our culture of responsible and ethical practices reflect the strong values that guide our company. Our approach to ethical practices begins with our Chairman and CEO, and cascades throughout the company. The Business Principles, the company s Code of Conduct and Ethics, provides guidance on ethical issues and promotes a lawful and ethical business environment for Wyndham and its employees. As a result of our governance and ethics efforts, Wyndham Worldwide has been listed in Ethisphere Institute s 2010 and 2011 List of the World s Most Ethical Companies. The designation is awarded to companies that have demonstrated leading ethics and compliance programs compared to industry peers. Compliance: As Wyndham Worldwide employs people and conducts business all around the world, our operations are also subject to many different laws, customs, and cultures. All associates are required to obey the law and comply with specific standards relating to legal obligations, ethics, and business conduct. Wyndham Worldwide maintains ongoing accountability process and procedures to monitor and report on compliance with these directives. In addition, stakeholders such as franchisees, resort developers, and supply chain vendors, are also required to operate in a manner which is compliant with all applicable laws and subject to certain operating standards. Our ethical behavior takes precedence over profits, sales or other such standards of success. Toward that end: 1. We are committed to ensuring that we are law-abiding citizens of any country in which we operate and will not intrude into the political affairs of any country, nor cause or permit any employee to take any action that would knowingly result in the violation of any laws or regulations; 2. We recognize that each one of us is responsible and accountable for maintaining an adequate system of internal controls over all areas of our own responsibility; 3. We recognize that each one of us occupies a position of trust with the Company and, as such, has a duty of loyalty to the Company. We each must therefore ensure that we are free from the influence of any potential or actual conflicting interests when we represent or act on behalf of the Company. For all of our associates, including our Directors, to carry out our above commitments, the Business Principles sets forth policies and procedures concerning material aspects of compliance and ethics. Topics range from Employee Responsibilities, Open Door Communications, Health and Safety, Workplace Violence, Protecting Our Information, records and systems, to Antitrust, Intellectual Property and Community Service. Wyndham Worldwide delivers training in support of its Ethics and Compliance programs in a variety of formats tailored to its audience and business needs. In addition to instructor led sessions organized for programs, Wyndham Worldwide has formalized its training schedule for associates on ethical topics. For more information, see our Compliance and Ethics Training Plan, and our Business Principles. 16

17 B Human Rights In 2007, the Wyndham Worldwide Board of Directors adopted a Human Rights Policy Statement. Our view on human rights reflects the Company s commitment to conduct its business in a manner consistent with these principles and to protect human rights within the Company s sphere of influence. In addition, the Company s core values work to further develop its culture as one committed ethical business practices and good corporate citizenship. Protection of the Rights of Children Wyndham Worldwide condemns all forms of exploitation of children. The Company does not recruit child labor, and supports the elimination of exploitive child labor. Wyndham Worldwide also is supportive of laws duly enacted to prevent and punish the crime of sexual exploitation of children. Wyndham Worldwide will cooperate with law enforcement authorities to address any such instances of exploitation of which the Company becomes aware. Protection of the Rights of Employees Wyndham Worldwide acknowledges the human rights of its employees throughout the globe and endeavors to provide a safe and healthy working environment for all of its employees. Wyndham Worldwide supports the elimination of all forms of forced, bonded or compulsory labor, the freedom of association and the right to choose a collective bargaining representative, if desired. Wyndham Worldwide further supports and upholds the elimination of discriminatory practices with respect to employment and occupation, and promotes and embraces diversity in all aspects of its business operations. Wyndham Worldwide is an equal opportunity employer and does not discriminate either directly or indirectly against employees or prospective employees on the basis of race, color, religion, sex, sexual preference/ orientation, citizenship, marital status, veteran status, national origin, age or disability, or against any other protection established by applicable law or regulation. The Company embraces the unique combination of talents, experiences and perspectives of each employee, making its success possible. More information about our governance committees, policies, and codes of conduct are available on our Investor Relations section of our website. 17

18 B Our Values, Policy and Sustainability Strategies At Wyndham Worldwide, our values drive our strategies. With values that include improving our customer s lives, supporting our communities, and improving the world around us, Wyndham Green is among the top five strategic priorities for the Company today. Advanced by a dedicated department focused on global sustainability across the organization, the Wyndham Green Policy serves as the foundation of the Company s global sustainability efforts, which are focused on delivering a triple bottom line benefitting people, profits and the planet. This report illustrates our alignment of driving financial capital and how we do business, driving natural capital in improving our environment, and driving human capital to benefit our stakeholders and communities. The Wyndham Worldwide Corporate Social Responsibility efforts focus on key strategic programs that include diversity, Corporate Giving, and providing an exceptional environment for associates to achieve their personal and professional goals. We educate, train and communicate with our partners to drive value not only for us but also for them. WYNDHAM GREEN SUSTAINABILITY POLICY Wyndham Worldwide is committed to sustainability, which by definition means meeting the needs of the present without compromising the ability of future generations to meet their own needs. We understand the impact our Company has on the natural resources of the earth. The core values at Wyndham Worldwide include our commitment to conserve resources, preserve natural habitats and prevent pollution, to act with integrity and improve our customers lives, and to support the communities around the world in which we work, live and play. Wyndham Green supports those values by delivering Triple Bottom Line benefits by focusing on the following: People (Human Capital): Treating our associates and communities fairly, as well as saving the environment and improving health with clean air and water. Profits (Financial Capital): Implementing innovative programs and practices that reduce energy and in turn expenses, or generate new revenues from sustainable products and services. Planet (Natural Capital): Conserving the earth s resources and our natural environment by recycling, reusing and reducing the consumption of resources. 18

19 B Wyndham Green Sustainability Framework Wyndham s Sustainability Focus ENERGY CONSERVATION RECYCLING/REUSE WATER CONSERVATION INNOVATION EDUCATION COMMUNITY Wyndham s Sustainability Strategy Working with our employees, customers, shareholders and local communities to minimize our environmental impact and improve our communities. Developing best practices in programs, products and services. Setting environmental impact targets and measuring performance. Complying with local, state and federal environmental laws. Wyndham s Sustainability Vision Drive sustainable value to our associates, consumers, customers and shareholders by delivering economic and social benefits while protecting and enhancing our environment for current and future generations Wyndham s Top 5 Business Strategies Increase Market Share By Delivering Count On Me! Service To Drive Customer, Consumer and Associate Satisfaction Grow Cash Flow And Operating Margins Through Superior Execution in All of Our Businesses Rebalance the Wyndham Worldwide Portfolio to Emphasize Our Fee-for-Service Business Models Attract, Retain and Develop Human Capital Across Our Organization Support and Promote Wyndham Green and Wyndham Diversity Initiative Wyndham s Core Values ACT WITH INTEGRITY RESPECT EVERYONE EVERYWHERE PROVIDE INDIVIDUAL OPPORTUNITY & ACCESSIBILITY IMPROVE CUSTOMER S LIVES SUPPORT OUR COMMUNITIES 19

20 C DRIVING STAKEHOLDER VALUE As a global public company with operations in over 100 countries, there are numerous key stakeholder and constituency groups driving the continued success of Wyndham Worldwide. We define our stakeholders as those who play an integral part in the existence of our business, including: Shareholders Associates Customers: - Franchise Owners - Timeshare Owners - Suppliers - Guests - Global Industry and Policy Partners collaborative efforts and continued engagement of our franchise owners is an important distinction for the Wyndham Green program. With two core businesses encompassing timeshare exchange and vacation rentals, Wyndham Exchange & Rentals has a wide range of stakeholders, including associates, developers, property owners, members and guests. Wyndham Exchange & Rentals maintains a number of educational and recognition programs to illustrate the benefits of sustainability and engages its associates and business partners in its green initiatives. Our stakeholders, such as shareholders, associates, and supply chain partners play an important and distinct role in the advancement and operations of our company, and as such, are significant drivers of our sustainability program. Our diversified business model also provides our business units with a unique set of core customers and stakeholders. The vast majority of the hotel properties that are associated with the Wyndham Hotel Group are independently owned and operated by franchise owners and hotel development companies. With responsibility for the daily management and overall facility operations, these valued customers are critical to the continued success of our business, and play a role in driving the strategy and direction of our global sustainability efforts. The Wingate By Wyndham, Henderson, Nevada Wyndham Vacation Ownership is the market leader in timeshare resorts, with our timeshare owners as our key stakeholders. Owners are provided sustainability education, and kept apprised of Wyndham Green initiatives through regular communications and at annual owner meetings. For example, Wyndham Vacation Ownership properties each have environmental programs, and together, have partnered with the Arbor Day 20

21 C Driving Stakeholder Value Foundation to educate the families and their children about biodiversity and conserving our rain forests. With operations in over 100 countries, Wyndham Worldwide is an industry leader and global corporate citizen maintaining important relationships with industry, government, and community and civic organizations around the world. These relationships further connect and integrate our businesses in the communities where they operate, allowing the Company to play a role in improving the lives of those we serve, and drive local and global commerce, hospitality, and social policy. Our stakeholders consist not only of the associates we employ, but also our customers. Wyndham Worldwide customers include timeshare owners, franchisees and developers as well as the guests that stay in our properties. We also work with external customers such as academic institutions, governments and NGOs. Finally, our shareholders keep us focused to make a difference and drive for results. Our stakeholders have been an integral partner in helping us develop and implement the Wyndham Green program. Progress of our work with stakeholders these past two years is outlined below. Investors Governance Committee Board of Directors Sustainability Reporting Wyndham Worldwide Silver LEED Certification Caught Green Handed Associates Wishes by Wyndham Count on Me! Career Management Wyndham Diversity Be Well Health and Wellness Sustainability 101 Training Wyndham Green Council Women On Their Way Developers Timeshare Owners Guests Franchisees Government World Travel and Tourism Council Environmental Protection Agency International Tourism Partnership American Hotel Lodging Association United States Green Building Council 21

22 C Stakeholder Chart STAKEHOLDER GROUP Associates CHALLENGES & OPPORTUNITIES Educate our associates about sustainable development Provide practical tools and programs for employee involvement Stimulate employee involvement and spread enthusiasm PROGRESS Wyndham Green Council Our Council was structured to train, educate, track and motivate our associates to develop and implement innovative solutions around the world. The Caught Green Handed program recognizes associates who have provided triple bottom line benefits within the Wyndham Rental & Exchange and Wyndham Vacation Ownership businesses. Sustainability 101 Training this learning module educates associates on the basics about a carbon footprint and outlines proven business practices currently being implemented in Wyndham Worldwide locations around the world. Education over 20,000 worldwide associates have been trained in 2009/2010 through various initiatives run by the Wyndham Green Council. Other programs that drive value to our human capital include: Count on Me! service culture, Be Well Health and Wellness programs, Wyndham Diversity, Leadership and Career Management and Training, Wishes by Wyndham charitable efforts and University Relations. Shareholders Demonstrate Wyndham Green s top-down and grassroots approaches to sustainability Provide mechanisms for informing and influencing shareholders about sustainability Governance of the program through the participation of the Global Green Council Senior Leadership team and the Corporate Governance Committee. The Global Best Practices document was distributed to highlight progress and program success. The first GRI Sustainability Report demonstrates the on-going commitment to track and measure Wyndham Worldwide s environmental footprint. This past year, Wyndham Worldwide received Leadership in Energy and Environmental Design (LEED) Silver Interior Certification from the U.S. Green Building Council (USGBC) for the new 250,000 square foot Corporate Headquarters located in Parsippany, New Jersey. Wyndham Worldwide was awarded the Green Pioneer award from ConEdison Solutions for purchasing 100% of the buildings electricity from wind power generation. Customers - Owners and Franchisees Gain buy-in on best practices where the Company does not have operational control Demonstrate the ROI of initiatives that require capital expenditures Stimulate stakeholder involvement and spread enthusiasm The Eco-Resort recognition in Australia, began by Wyndham Exchange and Rentals to drive sustainable practices in resort development, is one of the first in the industry. To date, Wyndham Hotel Group affiliated with over 350 sites worldwide that have received state, national or global certification such as Green Key, Green Globe, LEED and others. 22

23 C Stakeholder Chart (continued) STAKEHOLDER GROUP Customers - Owners and Franchisees (con t) CHALLENGES & OPPORTUNITIES (con t) PROGRESS The Green Franchisee Advisory Board was formed in 2010 as a cross-brand team of 12 members where both brand owners and general managers showcase, test and share best practices to advance sustainability in the hotel group portfolio. The Wyndham Hotel Group 2010 Global Conference offered various training and educational workshops about the Wyndham Green Program, impacting almost 6,000 franchisees. The Champions of Green Panel was a group of franchisees that shared experiences on implementing sustainable practices at their properties. Customers - Guests Customers - Suppliers Customers - Timeshare Owners Educate and motivate guests about their role in reducing environmental impacts during their stay Leverage the Company s expertise to help guests to be more sustainable even after their hotel stay Improve practices related to sustainable sourcing Work with suppliers to develop more environmentally friendly, diverse and socially responsible products Educate and motivate owners about their role in reducing environmental impacts Provide measurable performance mechanisms for timeshare owners to improve the energy efficiency and reduce the environmental impact of their homes Earth Smart and other Re-linen programs have been rolled out across 90% of the Wyndham Hotel Group global franchise and managed hotel portfolio. Wyndham Green s Program for Kids was designed to teach children about the environment and how they can positively impact the world around them. The Green Supplier Survey was created to identify eco-products, services and vendors with whom Wyndham Worldwide can partner. The Green Supplier Program was implemented, offering sustainable products, services and programs to those within the Wyndham Worldwide family. The Wyndham Supplier diversity program offers certified minority, womenowned and other diverse groups the opportunity to seek potential business and add value in cost, quality or revenues. Sustainable practices were included in the Home Owners Association training and education initiatives during the annual meetings. Wyndham Vacation Ownership received the ARDY Award from the American Resort Development Association (ARDA) for a Green Sustainable Company program for their development of a green certification program, one of the first of its kind focused on sustainability in the industry. Almost 100% of all Wyndham Vacation Ownership resorts have received internal certification from installation of energy efficient lights, water efficient fixtures and using green cleaning supplies and eco-friendly laundry detergents. As of today, more than 20 resorts have received state green certification. The Wyndham Worldwide vice president of Sustainability led a panel at the 2010 ARDA Annual Conference to highlight the business benefits of sustainable practices. 23

24 C Stakeholder Chart (continued) STAKEHOLDER GROUP Customers - Global Partners CHALLENGES & OPPORTUNITIES Encourage participation in the industry s activities to promote sustainability Engage academic institutions to conduct further research in sustainable hospitality PROGRESS World Travel and Tourism Council Wyndham Worldwide contributed to the development of Leading the Challenge on Climate Change, which outlines global policies for the travel and tourism industry. World Business Summit Wyndham Worldwide participated in the development of the global travel and tourism policy and initiatives outlined in The Copenhagen Call. International Tourism Partnership The Company participated in the rollout of global resources such as the Environmental Management for Hotels, Sustainable Hotel Siting, Design and Construction, Going Green Guide and ongoing development of best practices for the industry. In 2010 Wyndham Worldwide joined The Clinton Global Initiative (CGI), with leaders from all sectors of society to discuss and make commitments to action on global issues of pressing concern. U.S. Green Building Council (USGBC) The Company participated in the development of the Hospitality Existing Building program and hosted the New Jersey Green Gala at Wyndham s corporate headquarters. The Wyndham Worldwide VP of Sustainability serves on the board for the USGBC of NJ and heads the hospitality committee. American Hotel Lodging Association The Wyndham Worldwide VP of Sustainability chairs the Environmental and Engineering Committee and participates in the Green Task Force outlining industry best practices such as the AHLA Green Guidelines. Environmental Protection Agency Wyndham Worldwide participates in the Energy Star portfolio program and trained over 600 hotels about the EPA Portfolio Manager program in North America. Academic Institutions The Company has active partnerships and involvement with Cornell University, Fairleigh Dickinson, Wharton and The University of Pennsylvania, Cambridge Climate Leaders and Harvard focusing on Sustainability Roundtables, panels and research related to sustainability and other leadership and educational programs. NGOs In 2010 Wyndham Worldwide supported organizations such as the Plastic Free Ocean and the Arbor Day Foundation. The Company offers Arbor Day Specialty Coffee in over 130 Wyndham Vacation Ownership Resorts. This is shade-grown coffee grown under tropical rainforests by local farm cooperatives in Peru and is Rain Forest Alliance Certified. Wyndham Worldwide has made a commitment to use 200,000 pounds of this coffee for the next several years. 24

25 D DRIVING NATURAL CAPITAL ENVIRONMENT Wyndham Green Program Driving natural capital and improving our environment physically and socially is a key focus of the Wyndham Green program. Wyndham Worldwide initiated Wyndham Green as a strategic priority after assessing global trends, analyzing stakeholder impacts, and identifying opportunities to develop innovative solutions aligned with the Company s core values. As one of the top five strategic priorities for Wyndham Worldwide, the Wyndham Green program is led by a Global Green Council and overseen by the Sustainability Department within the Corporate Services Group. Through Wyndham Green, the department provides information and policies to implement the sustainability strategic plans and programs. Today the Wyndham Green program spans many countries and touches stakeholders both internally and externally through innovation, ongoing training, education and communication. Climate Change, Resource Scarcity, and the Travel and Tourism Industry Travel and tourism is one of the largest industries in the world. In 2010, the travel and tourism economy accounted for 9.2 percent of global GDP and provided 235 million jobs, or 8.1 percent of global employment, according to the World Travel & Tourism Council (WTTC). As a major hospitality company in the travel and tourism industry, Wyndham Worldwide contributes to these effects by operating lodging facilities or buildings and uses transportation and products to provide services. These sectors emit greenhouse gases that contribute to global warming and climate change. A key driver is population growth, causing resource scarcity and in turn, advocacy impacting the environment. Climate change and resource scarcity may present the following risks to our businesses: Increased natural disasters in areas where we operate our properties and franchise our brands Rising costs of fuel, energy, and water Reduced travel from increasing costs to consumers, and natural disasters affecting availability Increased regulatory legislation which may inhibit growth and negatively impact operational profitability under current business practices The Wyndham Green sustainability program enables the Company to evaluate risks, educate key stakeholders and track our progress. Wyndham Worldwide has worked with WTTC since 2008 to define the policies and goals for the industry by participating in the development of the report Leading the Challenge on Climate Change, which outlines policies and goals for the travel and tourism industry. The report was launched in February 2009 and has since been communicated to policymakers at all levels, including the United Nations Framework Convention on Climate Change (UNFCCC) and the wider industry. The 25

26 D Driving Natural Capital Environment The Company has also participated in Cambridge s Programme for Sustainability Leadership to further provide input into policies, and participated at the Copenhagen Summit. Wyndham Worldwide has also participated in summits in new emerging markets like China and Dubai to share best practices and guidance about climate change and the benefits of sustainability. Furthermore, the Vice President of Sustainability and Innovation for Wyndham chairs the Environmental and Engineering Committee for the American Hotel Lodging Association and also participates in the Green Task force where they have developed industry guidelines and participated with various nonprofit, government and hospitality stakeholders to support and develop policies and initiatives for the industry. Further, the company has also participated in research, roundtables and meetings with institutions like Cornell University, Fairleigh Dickinson, and U.S. Government Agencies. Wyndham Worldwide is an active member of International Tourism Partnership (ITP) and the United States Green Building Council (USGBC) where we work in partnership with stakeholders to discuss and outline sustainable solutions and metrics for the industry. Education about climate change is offered to associates worldwide and includes global best practices to facilitate the implementation of the program. The focus on climate change, throughout the organization, both internally and externally, seeks to provide solutions and programs to move the industry forward. 26

27 D Global Green Council The Wyndham Green Council has representatives from across the Company, including Wyndham Worldwide Corporate Services and all of the business units. The Green Council is comprised of over 200 associates from cross-functional departments in each business unit in over 20 countries. The goals of this global collaboration and integration are to achieve results, both locally and globally, through recognized best practices to drive end results. Each business unit has a dedicated plan specific to their operations while also aligned with the overall Wyndham Green global program. Innovations, experiences, and best practices are regularly shared across the Company, and published annually in the Global Best Practices document to communicate results. 27

28 D Global Green Council Buildings and Facilities and seating Project Profile Led by the corporate real estate team, Wyndham Worldwide walks the talk when it comes to sustainable facilities. The team focuses not only on the six core strategies of energy and water conservation but also on recycling and reusing resources as well as focusing on our communities, education and driving innovation. They developed the corporate headquarters according to LEED standards and received commercial interior Silver LEED certification. Wyndham Worldwide Headquarters LEED STRATEGIES & RESULTS Water-efficient plumbing fixtures - 25% less water used Construction waste management - 88% diverted from landfill Energy performance exceeding ASHRAE requirements - 16% energy savings lighting, 17% energy savings HVAC, 74% Energy Star equipment and appliances Recycled content in suspended ceilings, carpet, metal studs, sheet rock, furniture case goods, seating, particle board, and wood doors Low-emitting materials such as paints, sealants, carpets, and composite wood, system furniture Third party commissioning of critical building systems On-site storage and collection of Recyclables Greenguard furniture specified throughout the Facility Long term lease Irrigation system controls Regional materials including furniture case goods, carpet, metal studs, paint, gypsum ceiling tiles 100% Greenpower alternative fuel source Educational tours Site amenities reduce overall carbon footprint The Company purchases 100% of its electricity from wind power for their corporate headquarters. In 2010, the corporate headquarter received the Energy Star rating of 85 demonstrating operational excellence and the Corporate Commitment award from the USGBC of New Jersey for their good works. Today associates, owners, developers and investors have come to the corporate headquarters and attended educational tours of the LEED-certified facilities. Wyndham Worldwide Headquarters - 22 Sylvan Way, Parsippany, NJ WyndHAm WorldWide HeAdquArterS PArSiPPAny, new jersey 16% energy savings - lighting 18% energy savings - HVAc 74% energy Star equipment & Appliances 25% less water use 88% of construction waste diverted from the landfill leed facts Wyndham Worldwide inc. Headquarters Parsippany, new jersey leed commercial interiors certification awarded january 8, 2010 Silver 27 * Sustainable Sites 2/7 Water efficiency 1/2 energy & Atmosphere 5/14 materials & resources 6/14 indoor environmental quality 9/17 innovation & design 4/5 *Out of a possible 59 points 28

29 D Examples of Driving Innovation Best Practices Renewable Energy Driving Product Innovation The Vineland Ramada Inn is one of the first in the Wyndham Hotel Group family to use solar power for its hotel. According to associates within the hotel, the solar farm will generate approximately 620,620 kilowatts of power each year enough to power about 50 normal family households. In addition to this, it also prevents the emission of 863,220 pounds of carbon, 4,717 pounds of sulfur and 1,552 pounds of nitrogen. Environmental Leadership Driving Brand Innovation Started in 1954, Landal GreenParks is one of Wyndham s oldest green brands in Europe with more than 70 holiday parks and almost 11,000 bungalows, villas and apartments in the Netherlands, Germany, Belgium, Australia, Switzerland and the Czech Republic. Sustainability is a key element of their mission for their bungalows. Many of the parks have renewable energy generated from waste. They also use energy-efficient lighting and management systems, as well as grey water management at some of their facilities. They have also partnered with Natuurmonumenten to maintain the biodiversity of over 250,000 acres of wetlands and estates. Green Certification Driving Industry Innovation Wyndham Vacation Ownership has taken the leadership position in the industry by rolling out over the last 2 years an internal certification program across its over 160 resorts and touching almost 815,000 timeshare owners. This is one of the first green certification programs focused on sustainability in the industry that demonstrates how timeshare facilities can implement a sustainability program. The program not only focuses on reduction of energy, water and waste but also programs that involves owners and guests as well as using green cleaning and laundry detergent products. To date almost 100% of our over 160 resorts have received certification. Ramada Plaza Hotel Anaheim, California Landal Esonstad in Anjum, Province of Friesland, Netherlands Wyndham Vacation Resort Bonnet Creek, Orlando, Florida 29

30 D Environmental Performance Wyndham Worldwide s vast global footprint allows the Company to play an important role in reducing emissions and environmental impact in communities around the world. Wyndham Green works to continually reduce the Company s impact by focusing efforts and developing solutions around the areas of Energy Conservation, Recycle and Re-Use, Water Conservation, Education, Community, and Innovation. For more information about our initiatives that we have implemented globally to reduce our environmental footprint please see the Wyndham worldwide Global Best Practices (GBP) brochure at Energy Conservation Wyndham Worldwide corporate offices around the globe are working together to reduce energy consumption. Through increased awareness, innovation and teamwork we are establishing initiatives targeting new, energy-saving alternatives. Recycle and Re-Use Offices worldwide are adapting green practices to reduce the amount of glass, paper and plastic waste they generate, from substituting printed correspondence with , to the addition of single-stream recycling bins, to using FSC-certified recycled paper. Water Conservation Each of the three branches of Wyndham Worldwide is addressing ways to reduce water use throughout its brands and office buildings, by using products and implementing services that promote cleaner water as well as more conservative and efficient consumption. Education Wyndham Worldwide s corporate offices around the globe are educating staff on the importance of green thinking. From informative newsletters to team-building to finding alternative commuting solutions, Green Teams educate and inspire their fellow workers to spread the word. Community From recycling programs, to purchasing organically grown products, to the construction of a green headquarters building, the favorable impact of Wyndham Worldwide s green initiatives and the positive example they set reach far beyond the local level. Innovation From awareness programs, to nonpolluting heating fuel, Wyndham Worldwide employees are developing and implementing innovative solutions that inspire others to do the same. 30

31 D 1. Environmental Performance Targets and Goals Set Environmental Targets, Measuring and Tracking Performance The first step to reducing our environmental footprint is to measure impact. From there reductions targets can be set and performance tracked. The most material environmental aspects from operations are energy consumption and the resulting greenhouse gas emissions, which were prioritized in The Company therefore set out to understand its global environmental footprint with the following in mind: the globe are participating in the use of the software. The system has been developed to be flexible and scale. It is available in 10 languages and currencies, and provides weather normalization to allow for comparisons among properties globally. The Wyndham Green Toolbox is a single consistent source of information and allows the Company to track, measure and report on its global assets around the world. The tool helps not only improve the accuracy of the data but to quantify the results in real time. Greenhouse Gas Emissions for Scope 1 and 2. The 2010 global carbon footprint is 398,385 metric tons of CO 2 e equivalent 15 metric tons of CO 2 e per employee.0098 metric tons of CO 2 e per square feet ENVIRONMENTAL KEY PERFORMANCE INDICATORS INDICATOR 2010 OVERARCHING OBJECTIVES GOALS Direct Scope 1 (MWH)** 475,100 Quantify Wyndham s global environmental footprint for owned, managed, and leased properties. Gather accurate and complete information for global footprint. Indirect Scope 2 (MWH)** Total Energy (MWH) 512, ,943 Establish a baseline that can be improved over time to generate cost savings and environmental leadership. Set a Corporate sustainability performance target Report a robust carbon footprint that encompasses Scope 1 & 2. Reduce CO 2 e by 20% by 2020 with interim goal of 12% by 2016 by energy per square foot using 2010 as a baseline. Intensity by sq footage (MTCO 2 e/sq. ft.) Direct Scope 1 MT CO 2 e Indirect Scope 2 MT CO 2 e Total Water (Hotel Only in gallons) , , , ,881,891 Develop the Wyndham Green Toolbox Eco-Software System The Wyndham Green Toolbox Eco-Software is a system developed by Wyndham Worldwide in 2010 to manage the corporate sustainability efforts in GHG emissions, energy, waste, and water. Today the managed, owned and leased facilities within the Wyndham Worldwide portfolio around Measure the 2010 Environmental Footprint Wyndham Worldwide s environmental footprint has grown along with the expansion of our businesses. At the same time the company has begun to implement long term goals to reduce our overall consumption. Our long term goal is to reduce our emissions by 20% by 2020, with an interim goal of 12% by 2016 based on energy efficiency. Certified Facilities* Renewable Energy Sites 490 *(includes internal and external certification programs) **(we estimate that over 95% of our energy comes from nonrenewable resources) Wyndham Worldwide total energy in joules in scientific notation: Scope 1: x10^15 joules, Scope 2: x10^15 joules and Total: x10^15 joules 9 31

32 D 2. Environmental Performance Global Footprint The Wyndham Worldwide global footprint is driven by our facilities and 97% comes from electricity and natural gas/fuels. Focusing on our managed assets, Wyndham Vacation Ownership with the timeshare resorts contributes 60% of the overall emissions followed by our hotels. Most of our business is in North America and 77% of our carbon footprint comes from North America, followed by EMEA at 13% Emissions by Type (MTCO 2 e) 2010 Emissions by Region (MTCO 2 e) 2010 Emissions by Business Unit (MTCO 2 e) 32

33 D 3. Environmental Performance Work With Our Associates & Customers Continued development and success of the Wyndham Green sustainability program is driven by the Company s stakeholders, whose ideas, efforts, and passions are valued and supported through a series of awareness initiatives, educational programs, and recognition efforts. Driving Value to Associates: Sustainability 101 Training Offered in 10 languages, Sustainability 101 is an online learning module educating the basics of a carbon footprint, and outlining proven business practices implemented throughout Wyndham Worldwide. During the past years over 35% of our global associates have been trained. Education Through high profile recognition of key dates during the year, over 20,000 associates, representing 76% of the global workforce, gained awareness and insight on sustainability practices during such events as Earth Hour, Earth Day, Arbor Day, the Wyndham Worldwide Global Green Day, and through new hire orientation and the on-boarding program. WYNDHAM GREEN KIDS Wyndham Green Kids Program - designed to engage our stakeholders and teach their children about the environment, community, and world. The program was developed to educate families about caring for the planet using the six core strategies. Wyndham Green has partnered with the EPA and Energy Star to bring awareness to the children about the planet and the importance of sustainability. Driving Value to Customers: Franchisees and Owners - At Wyndham Hotel Group, the Green Franchisee Hotel Advisory Board was formed in cross-brand hotel owners and general managers showcased and shared green practices to advance sustainability in the hotel group portfolio. A Champions of Green peer panel for hotel franchisees was held at the 2010 Wyndham Hotel Group Conference, providing hotel owners and developers with firsthand accounts from colleagues on implementing sustainability initiatives. Caught Green Handed - Wyndham Exchange & Rentals initiated the Caught Green Handed recognition program to acknowledge associates who have made a contribution to sustainability practices. The program has been further adopted by Wyndham Vacation Ownership. 33

34 D 4. Environmental Performance Driving Value to our Suppliers Wyndham Worldwide relies on strong, collaborative supplier partnerships to provide goods and services for use around the globe by our hotels, vacation resorts, timeshare exchange affiliates, and for internal consumption. Wyndham Worldwide s Strategic Sourcing department strives to obtain the highest quality products and services offering the best possible value. The objective is to implement an approach to engage sustainable suppliers throughout the Wyndham Worldwide culture as an effort to remain committed to conserving resources and preventing pollution. Providing sustainable product and service options is a key consideration of the Strategic Sourcing process, and aligns with the Company s commitment to sustainability and reducing our carbon footprint. The Green Supplier initiative was established to partner with suppliers and vendors who have a similar commitment to sustainability and protecting the environment, while increasing the number of sustainable products offered to customers. Further diversification of the supply chain enables Wyndham Worldwide to become more competitive and grow the Company s presence in emerging markets through partnerships while enhancing the commitment to the communities in which we work and live. GREEN SUPPLIER GOALS Continue to increase Green spend across Wyndham Worldwide Increase Green supplier awareness corporation-wide Recognize Green excellence Include Green suppliers in every RFP, where possible Continue focused outreach to the green supplier community Expand Green Suppliers internationally (UK and China) 34

35 D 4. Environmental Performance Driving Value to our Suppliers In addition Wyndham Worldwide is committed to working with participating vendors to make the supply chain more sustainable. A good example is the partnership with Cintas outlined below: The sustainable PRODUCT Regeneration Suiting DESCRIPTION Green Uniform made from plastic recycled bottles METRIC 8,101 Front Desk Uniforms have been used and this is made from liter plastic bottles. This is equal to recycling 114,962 bottles using 66% less energy and 90% less water per uniform front desk uniform at Wyndham Hotels and Resorts is made from 25 two-liter plastic bottles. Key Cards Cascade Green Paper Goods Recycled cards made from 87% pre-consumer recycled product Bathroom tissue made of 100% virgin fibers and facial tissue made from 100% recycled fibers Over 1.3 million key cards have been used Saved over 1.7 million lbs of water and over 57,839 CO 2 e Led by the Strategic Sourcing department and Sustainability team, the Wyndham Hotel Group and Wyndham Vacation Ownership teams rolled out the first green uniform program in the hospitality industry. Through a partnership with Cintas, a uniform and apparel provider, suits were developed for the front desk staff that were spun from recycled plastic bottles. Each piece of uniform is made from approximately 12.5 two-liter plastic bottles and requires 66 percent less energy and 90 percent less water to produce than a standard uniform per the EPA. The following is a list of some of the sustainable products Wyndham Worldwide has supported. These products have enabled us to make a global impact on our supply chain. Eco-lab Oasis and Formula 1 housekeeping and laundry products The BIC Round Stic Ecolutions pens Arbor Day Specialty Coffee Guest Room Laundry Bags Eco-Cups Low phosphate laundry detergent Pens made from 74% pre-consumer recycled plastic Shade grown coffee farmed by local coops in Peru with Arbor Day and the Rain Forest Alliance Certified PLUS designation. Each bag is made from 100% biodegradable and recycled content Each cup is made of recycled content, such as Virgin Pulp and recycled paper. Each cup is compostable and degradable. Saved 48.4 million gallons of water, and 9.1 million kwh hours of electricity and reduced plastics waste by 26,700 pounds Over 378,000 pens and recycled plastic used Over 80,000 pounds have been used saving the rain forest and also providing coop jobs to families in Peru 720,000 Bags have been used 52,432,600 eco-cups have been used saving waste to landfill 35

36 D 5. Environmental Performance Comply with Regulations 5. Comply with local, state and federal environmental and climate laws Recognizing there currently is no consensus or global accord on climate change, Wyndham Worldwide maintains flexibility in its approach to ensure compliance with the diverse environmental and climate regulations in the communities we operate. In partnership with our consultants and government council, we track and monitor compliance worldwide against continuallyevolving legislation related to sustainability and climate change. Tracking Green Legislation and Carbon Trust UK The United Kingdom is a global leader in significant carbon legislation. Today, Wyndham Worldwide is complying with the Carbon Reduction Commitment program in the United Kingdom, the first of its kind in Europe. Through Wyndham Green Council and Program, properties are able to track and comply with the growing legislation, further driving our capability to innovate solutions to the changing environment. 36

37 E DRIVING HUMAN CAPITAL SOCIETY Wyndham Worldwide associates directly employed approximately 26,400 associates in 2010 up 7.3% over This includes full and part-time employees globally. Wyndham Worldwide employs approximately 26,400 people in over 100 countries and has been nationally recognized for providing an exceptional workplace. The Company drives benefits to human capital by offering programs promoting health and wellness, professional growth, diversity and leadership development Associate Opinion Survey Wyndham Worldwide actively seeks feedback from associates on topics ranging from communication to work life balance. The Associate Opinion Survey is an important tool used to identify, measure, and prioritize the issues that influence the engagement of our associates. Measuring engagement is important because it is a combination of perceptions that have a positive impact on behavior. When associates are fully engaged, they are productive, committed, conscientious, and willing to go the extra mile which can directly impact the bottom line. The 2009 Associate Opinion Survey showed a 73% favorable engagement rating across all Wyndham Worldwide business units. Count on Me! - Culture each and every day while an associate is a part of the Wyndham Worldwide family. Integrated into the fabric of how we operate, the Count On Me! culture and its genuine adoption by associates has helped drive the success of many sustainable initiatives. Wyndham Worldwide Associate Demographics The mission of Wyndham Worldwide is based on our Count On Me! service culture, where each associate embraces accountability in serving the needs of our customers, community, and each other. The Count on Me culture begins with the interview and on-boarding process, and continues 37

38 E Associates Work Life Balance Associate Work Life Balance Wyndham Worldwide is committed to offering programs that focus on nutrition, exercise, lifestyle management, physical and emotional wellness, financial health and the quality of the environment in which we work and live. We believe that health and wellness invoke both professional and personal productivity, achievement and fulfillment. To help associates lead healthier lifestyles while balancing family, work and other responsibilities, several initiatives are offered including: weight management, stress reduction, work/life balance education, fitness programs and financial planning workshops. Most programs are offered at little or no cost to associates and are available to their families as well. These programs are all branded under the Be Well Embracing a Healthy Lifestyle program. For instance: The Medical, Dental and Vision Care plans offer choices between a number of coverage options for associates and their eligible dependents. The plans are designed to balance broad coverage with affordability, with Wyndham Worldwide covering most of the costs to participate. In addition, we offer no cost preventive care through our medical plans. Flexible Spending Accounts for Health Care allow the associate to pay for eligible medical expenses not covered under the health plans, as well as Dependent Care for expenses related to the care of young children or elderly parents. Long-Term Disability is provided at no cost to associates and provides income coverage for disabilities that continue beyond 26 weeks. Business Travel Accident Insurance, provided at no cost to associates by Wyndham Worldwide, covers accidental death while traveling on company business, including travel to and from work. Basic Life and Personal Accident Insurance is provided at no cost to associates by Wyndham Worldwide. Supplemental Life Insurance for associates, their spouses and dependents is available at a competitive cost. Supplemental Personal Accident Insurance is also available. Retirement Planning The Wyndham Worldwide Employee Savings 401(k) Plan encourages associates tax-favored retirement saving through a Company matching contribution. A wide variety of investment options are offered. Other Benefit and Key Resources The Educational Assistance Program encourages personal growth and self-improvement by providing financial assistance with the cost of continuing education. The Employee Assistance Program is a free, confidential, off-site counseling service provided to associates and family members facing such issues as marital problems, financial concerns, and child and elder care issues. Adoption Reimbursement provides assistance to qualifying associates who adopt a minor child. 38

39 E Associates Be Well Program Wellness Programs Health Fairs and Biometric Screenings: Health Fairs are held annually at larger office sites. During these health fairs and at other points during the year, biometric screenings are offered, which capture vital health statistics that our associates can share with their doctors. Be Well Health Services: At several corporate locations there is a Be Well Health Services office which is staffed by a nurse practitioner who provides no cost treatment for episodic illnesses and injuries. This is a convenient, free of charge service available to all associates. Wellness Advisor: Wyndham Worldwide has a full-time wellness advisor who is responsible for creating and maintaining wellness programs and resources. Wellness Council: The Wellness Council is comprised of a diverse group of associates across the organization and is under the guidance of the wellness advisor. This group has been put together to provide feedback and recommendations to enhance our wellness programs and resources across the organization. Registered Dietitian: At the corporate office, a registered Dietitian is available on a monthly basis to provide nutritional counseling for a reduced fee. This service is available to all associates and is widely utilized for general nutritional counseling as well as nutritional counseling for specific medical conditions. No Cost Education Webinars: During the course of the year, a variety of no cost webinars on exercise, nutrition, wellness and family/life balance are offered. These webinars appeal to a wide variety of the associate population. Lifestyle Management Program: Wyndham Worldwide values the health of all associates and is committed to providing a workplace that supports a healthy lifestyle. In the on-going quest to offer a variety of programs that support wellness goals, the Be Well Lifestyle Management Program was implemented in This program is free to all associates and designed as an ongoing weight management benefit option. Chair Message and Meditation: Chair massage is offered on a weekly basis at several Wyndham Worldwide locations. Meditation classes are also offered throughout the year at several locations. These resources are part of the stress management tools available to associates at Wyndham Worldwide. No Cost Flu Shots: Flu clinics are held each year at many of the larger locations. In addition, flu vouchers are made available to associates not located in an area where a clinic is offered. These vouchers allow associates to obtain a free flu shot at a wide variety of locations. Tobacco Dependency Programs: Tobacco Dependency Programs are offered at several large locations and are available to all associates at no cost. These programs include six weeks of nicotine replacement therapies and support resources. Lactation, Meditation and Prayer Rooms: Lactation, meditation and prayer rooms are available at many sites, and at other locations, accommodations can be made upon request. No-Cost Onsite Fitness Facilities: Several offices offer an on-site, no cost health and fitness facility which is staffed with fitness trainers. Associates can utilize the fitness centers at times that best fit their schedule. Cafeterias and Vending Machines: Wyndham Worldwide ensures that there are a variety of healthy choices made available in the on-site vending machines and cafeterias. In addition, the cafeterias and vending machines are regularly audited. Active for Life: In partnership with the American Cancer Society, all US based associates are eligible to participate in the Active for Life challenge. Screenings: A variety of screenings are regularly offered at larger locations and include testing for blood pressure, bone density, cholesterol, glucose and skin analysis. 39

40 E Associates Professional Growth Success Matters Developed from feedback received in the 2009 Associate Opinion Survey, the Success Matters program helps associates align their actions to company strategy by focusing their time and energy on the projects that matter most to the success of the Company, their personal success, and the value they drive to Wyndham Worldwide shareholders. This tool helps foster two-way communication between individuals and their managers and co-workers. Success Matters enables associates to create their S.M.A.R.T. goals, development plan and performance appraisals online. Associates can also track progress towards personal success while completing their development plan throughout the year. MyLearning WYNDHAM WORLDWIDE UNIVERSITY MyLearning MyLearning is Wyndham Worldwide s Global Learning Management System. As a global organization, it serves as the vehicle to deliver training to associates around the world. With MyLearning, associates are able to complete online learning, virtual and instructor-led training. Business Skills courses provide learning assets for professionals, offering support for the broad variety of skills needed to develop internal competencies. Business skills courses employ a variety of instructional strategies to engage learners with high levels of interaction. The business skills solution areas are: Professional Effectiveness; Management and Leadership; Sales and Customer-Facing Skills; Project Effectiveness; Finance; HR and Administration and Business Strategy and Operations and Compliance. Through 2010, 64% of associates have completed on-line courses. Smarter U program here at Wyndham Worldwide Parsippany Campus Wyndham Worldwide and the International School of Hospitality and Tourism Management at Fairleigh Dickinson University (FDU) collaborate to develop associates by offering flexible class schedules to allow participants the benefits of the classroom experience. The majority of classes are offered on-site at the Wyndham Worldwide headquarters in Parsippany, NJ. There are also independent study and distance learning options available for a select group of courses. Bachelor of Arts in Individualized Studies Hospitality Management The Bachelor of Arts in Individualized Studies with a specialization in hospitality management is a 120-credit baccalaureate program designed for adult learners. It provides adult learners with an undergraduate degree grounded in the liberal arts with a specialization in hospitality management. Master of Science in Hospitality Management Studies The Master of Science degree in hospitality management studies is structured to meet the educational needs of adult learners working in the hospitality industry. This 36-credit course of study is designed to provide a program of study that meets the requirements for a professional master s degree. For working adults seeking to upgrade their professional skills to enhance their careers, the degree program increases analytical, managerial and leadership competencies and will provide graduates with the requisite preparation for career advancement in various hospitality-related professional areas. To-date, 142 associates have been accepted into the Smarter U program. 40

41 E Associates Building Tomorrow s Leaders Wyndham Worldwide has established partnerships with selected institutions of higher learning that are aligned with our business operations, and offer educational programs that closely match the business goals and direction. The Company is committed to attending partner campuses and partner-related events during the course of the school year and aims to provide our partners early information about our programs and opportunities. Current College partners include: Bethune-Cookman University Bucknell University Cornell University Fairleigh Dickinson University Rutgers University Florida State University Purdue University University of Central Florida Learning from Leaders Once a month, associates at the Parsippany campus have the opportunity to hear from Wyndham Worldwide senior leaders regarding topics such as change management, relationship building, effective leadership and financial acumen topics. These sessions are 45 minutes in length in an intimate setting, and as of 2010 approximately 250 associates have participated in these programs. Leading Your Organization The main objective of this one-week customized program is to provide associates with the opportunity to build the leadership capabilities needed to support the Wyndham Worldwide 2011 Strategic Focus. A fully integrated set of competencies and skills are addressed in the training through the active involvement of both individual and team activities. Most importantly, the program provides the opportunity to build leadership capabilities through a variety of assessments and interaction with nearly 30 colleagues across the organization. 155 Vice Presidents have completed the program (note this number includes attrition.) The objectives of the program include: Build awareness and commitment. Understand and embrace courageous leadership. Enhance organizational synergy and operational excellence. Strengthen the leadership capabilities for more strategic responsibilities. Wharton Global Leadership Program A partnership with the prestigious Wharton School of the University of Pennsylvania, the Wharton Global Leadership Program provides a unique opportunity for Wyndham Worldwide leaders to discuss best practices, issues, and trends amongst each other and with Wharton students and faculty. Over 220 associates have participated in the program. Wyndham Worldwide Executive Program in Orlando, Florida 41

42 E Diversity Diversity, a strategic focus at Wyndham Worldwide, is a fundamental part of how we do business in the global marketplace. From the professional development and inclusive environment provided to all associates, to the business relationships we develop and products and services we purchase diversity defines Wyndham Worldwide business practices and operating philosophy. Areas of Focus incorporated in our Diversity inclusion Strategy include: Associates, Customers & Guests; Franchisees & Developers; Vendors & Suppliers and Stakeholders. Key components of the strategy include: program, The Wyndham Worldwide Diversity and Inclusion Leadership Workshop. To date, over 800 Wyndham Worldwide leaders have attended this program globally at locations across the United States, Mexico, Hawaii, Denmark and the United Kingdom. Marketing and sales programs directed to all individuals reflective of our commitment to represent and embrace the diversity of our guests at our more than 70,000 locations in 100 countries. Partnerships with external organizations, including, for example, The American Hospitality and Lodging Association (AH&LA); The American Resort Developers Association (ARDA); The National Association of Black Hotel Owners, Operators and Developers (NABHOOD); and The Hispanic Association for Corporate Responsibility (HACR). A focus on adding diversity to our employee base at all levels of our organization. This has led to partnerships and programs with The National Association of Black, Hispanic, Asian and Women MBAs, Careers for the disabled; and Veterans Across America. A diversity and inclusion education curriculum. Programs are targeted to associates at every level in the organization, including our signature Wyndham Worldwide Diversity Training Program 42

43 E Workforce Diversity As one of the world s largest hospitality companies, Wyndham Worldwide strives for the people within the Company to be as diverse as the services the Company provides around the globe. Diversity in talent, thought, and experience keep Wyndham Worldwide an exceptional travel partner, a successful company, and a great place to work. We strive to cultivate a global workforce where individuals from a wide array of backgrounds, with different experiences and viewpoints, are valued. As a result, they Company boasts a culture rich in diversity where personal accountability, professional growth opportunities and recognition for a job well-done are everyday occurrences. As the workforce evolves to reflect the growing diversity of our communities and the global marketplace, our efforts to understand, value, incorporate, and embrace differences is increasingly important. Wyndham Worldwide fosters a work environment in which all individuals are treated with respect and dignity. We are an equal opportunity employer and do not discriminate either directly or indirectly against employees or prospective employees on the basis of race, color, religion, sex, sexual preference/orientation, citizenship, marital status, veteran status, national origin, age or disability, or against any other protection established by applicable law or regulation. We will make reasonable accommodations for eligible disabled applicants and employees in compliance with applicable laws and regulations. We are committed to actions and policies to assure fair employment, including equal treatment in hiring, promotion, training, compensation, termination and disciplinary action and will not tolerate unlawful discrimination either directly or indirectly by our employees or agents. Associate Business Groups Wyndham Worldwide sponsors a number of Associate Business Groups (ABGs). ABGs are comprised of groups of associates situated around the globe with common interests and areas of passion. These groups include: Fuerte Members of this group are focused on the professional development of individuals and businesses important to the Hispanic Community. SPECTRUM Members of this group engage in and support business matters of interest to the African American Community. Veterans Across America The goal of this group of individuals is to develop mentoring partnerships with male and female veterans who are looking to enter the workplace after serving our country. Women On Their Way (WOTW) The largest and longest standing of the Wyndham Worldwide Associate Business Groups, WOTW is committed to supporting the development and advancement of women across the organization. Current locations include the United Kingdom, Mexico, Ireland and various cities in the United States. Diversity Recruiting Diversity Recruiting is one component of the Diversity and Inclusion Strategy that links to our focus on Associates. In 2010, the Diversity recruitment strategy included a mix of the following: placing job postings on over 90 Job Boards that target diverse populations, showing images of diversity in recruitment campaigns, partnering with college campus diversity groups and professional organizations such as the National Black MBA, the National Hispanic MBA, the Asian MBA, Diversity and Careers Magazine, Women MBAs, and more, etc. Wyndham Worldwide has participated in over 90 Diverse Job boards and postings, colleges and universities, developed targeted media and participated in career fairs and networks such as the Hispanic and Black MBA. 43

44 E Supplier Diversity Wyndham Worldwide s formal supplier diversity initiative was launched in 2008 with a mission to develop and implement an approach to supplier diversity which becomes self-reinforcing and part of our daily culture, ultimately achieving results that add value by reducing costs, improving quality and/or increasing revenue through the identification and use of high-caliber certified diverse suppliers, wherever appropriate. Our all-inclusive supplier diversity initiative offers certified minority, womenowned and other diverse groups the opportunity to seek potential business prospects. The five pillars of Wyndham Supplier Diversity: Strong top management commitment Vibrant Supplier Diversity Council/Champion Structure Top notch Strategic Sourcing management Stakeholder involvement and relationship building Proactive involvement in all aspects of supplier diversity These five pillars allowed our Supplier Diversity Council to oversee an increase from 1.8 percent diverse spending in 2008 to 6.8 percent in 2009 and 10.3% in Introducing supplier diversity upfront and early in the procurement process while implementing strategic sourcing initiatives resulted in many noteworthy success stories including: Selected a Hispanic minority business enterprise (MBE) to be our sole manufacturer of terry and linen throughout Wyndham Worldwide Added three MBE s (Asian, Hispanic, and African American) to our approved suppliers list for commercial printing, producing 25% coverage Added two MBE s (Asian Americans) to our list of approved suppliers for operating supplies and equipment (OS&E) to where we now have 40% coverage in this area 22% diverse spend with multiple minority and women-owned suppliers in the furniture, fixtures, and equipment (FF&E) area Selected an African American MBE, to be our managed staffing service provider across Wyndham Worldwide, a multi-million dollar initiative Selected a Hispanic MBE to be one of four signage suppliers across Wyndham Worldwide, another multi-million dollar initiative We also understand that a critical part of our proactive approach is diverse business community outreach. In that regard, Wyndham is a proud sponsor and corporate member of the following national certifying bodies: National Minority Supplier Development Council (NMSDC) Women Business Enterprise National Council (WBENC) National Gay & Lesbian Chamber of Commerce (NGLCC) United States Pan Asian American Chamber of Commerce (USPAACC) We also proudly sponsor and are a corporate member of these national groups: United States Hispanic Chamber of Commerce (USHCC) Member, Procurement Council Advisory Board, United States Hispanic Chamber of Commerce 44

45 E Women On Their Way Women on Their Way is the hospitality industry s longest-running branded program entirely dedicated to female travelers. Since the program s launch in 1995, Wyndham has supported women travelers as they ve emerged from a niche market to a formidable force, listening and responding to women s feedback. This has resulted in a better hotel experience for all travelers; including the addition of various amenities to hotel rooms such as coffee makers, full length mirrors and healthier room service menus. Women on Their Way is an online resource for business and leisure travelers to find everything they need to plan and book their next trip. The website, includes expert advice on destinations, hotels, timeshare resorts and vacation rentals, plus special deals and packages as well as blogs from passionate female travelers. From healthier room service items to helping design the Wyndham ByRequest program, Women on Their Way has changed how travelers spend their time on the road. While once a single hotel chain program, Wyndham Worldwide expanded the program across all brands and businesses offering over 87,000 hotels, vacation rentals and resorts in 100 countries. Today, Wyndham Worldwide is committed to women travelers more than ever. Ideas and suggestions from women are key in improving the hotel travel experience for everyone - not just women. Women on Their Way takes pride in being a community to its customers and has a long history of its commitment to women and their families. Key components of the WOMEN ON THEIR WAY program include: the hotel industry s first Web site for women travelers, the site includes great content on where to go and what to do, and blogs and reviews of properties within the Wyndham Worldwide family of brands Wyndham ByRequest - Women have been key participants and contributors to formulating the unique personalized services available to guests, including free long distance calls and your favorite snack and beverage upon check-in. WOTW Awards Program - Women on Their Way has partnered with the American Resort Development Association (ARDA) to recognize a woman within the hospitality industry through the ACE Women on Their Way Award. WOTW also recognizes and celebrates women who are volunteering in the communities through a partnership with We TV and the We Do Good Awards. Associate Program the award winning Women on Their Way Associate Program is open to all associates within the Wyndham Worldwide family and focuses on career and leadership development, as well as networking. Wyndham Worldwide has incorporated Women on Their Way into all facets of a guest s stay. In fact, the program s original Women Travelers Advisory Board is responsible for innovations such as a courtesy call alerting guests to room service and healthier options on the room service menu, and complimentary Toiletries You Forgot, among others. Additionally, Wyndham was the first company to spearhead research into this market segment, partnering with New York University s Preston Robert Tisch Center for Hospitality, Tourism and Sports Management. The program is also the founding sponsor of the Women s Leadership Initiative for meeting planners through Meeting Professionals International, a key force in the hospitality industry. Wyndham once again took action by implementing and funding academic scholarships and research to help meeting planners in the industry and help its members realize their fullest potential. As evidenced by women business travelers who recognize and appreciate the program s efforts, Wyndham continues to lead the industry s women travel market with innovative programs and opportunities for women and their families. 45

46 E Wishes by Wyndham We support the communities in which we live, work and play. It is in that giving spirit that Wishes by Wyndham was created. Wyndham Worldwide s philanthropic program is working to better the lives of children by creating partnerships with likeminded organizations. Through our global efforts, we are working together to support children around the world through in-kind donations, volunteer hours and by raising both funds and awareness. Wyndham Worldwide has adopted three signature charities that we are supporting across the Company: Association of Hole in the Wall Camps, Christel House International and Starlight Children s Foundation. Our associates around the world collaborate on this shared mission while also supporting local charitable efforts through various fundraising events as well as a paid day off for volunteering at a non-profit of their choice. our signature charities include: Association of Hole in the Wall Camps ( is an organization which provides recreational activities to children with serious illnesses, helping them build self-confidence and resilience. Recent programs included a Camp Boggy Creek event near Orlando, Florida, where we donated cooler bags filled with popsicles for the campers. A successful mini golf event was held at the 2007 Wyndham Championship, the Company donated funds to the Victory Junction Gang Camp, and employees at a recent Leadership Summit built rocking chairs for Camp Boggy Creek campers. Christel House International ( was founded in 1998 by Christel DeHaan, co founder of Wyndham Worldwide owned RCI and a Women on Their Way board member. Christel House builds and operates learning centers in impoverished neighborhoods with the goal of creating sustainable social and educational impact, improving the lives of impoverished children around the world by giving them educational and job opportunities, community support, health care, and counseling. Learning centers are located in India, Mexico, South Africa, Venezuela and the United States as well as a Christel House Scholars Program in Serbia. Starlight Children s Foundation ( works to improve the quality of life for children with chronic and serious illnesses and life-altering injuries by providing entertainment, education and family activities that help them cope with the pain, fear and isolation of prolonged illness. Starlight has relationships with more than 1,300 hospitals treating children. Programs include family outings, in-hospital entertainment technology and playrooms, online communities and interactive websites, and educational programming. The Wishes by Wyndham Foundation, funded by Wyndham Worldwide, financially supports not only the three signature charities but various other local and national non-profit organizations including, but not limited to: Big Brothers and Big Sisters, The Boys and Girls Club, The First Tee, the Red Cross of America and the Special Olympics of New Jersey. 46

47 F AWARDS AND RECOGNITION Wyndham Green Awards 2010, 2009 Top 15 Greenest Companies in Media, Travel & Leisure sector Newsweek Greenest Big Companies Newsweek 2010, 2009 Climate Counts; Wyndham Worldwide ranked Top 5 in the industry by consumers. 2010, 2009 EPA Green Power Partnership Parsippany Campus Facility 2010 LEEDership Award for Wyndham Vacation Ownership 2010 LEED Silver Interior Certified Parsippany Corporate Office 2010 Energy Star Award for corporate facility 2010 U.S. Green Building Council of New Jersey Corporate Commitment Award 2010 Environmental Stewardship Award from the Department of Environmental Protection Corporate Headquarters 2009 Lodging Hospitality Chain Leader Award 2009 Con Edison Green Pioneer Award 2009 Two Tomorrows Top 10 Sustainability 2010 ARDA Innovation Award 2009 Green Hotel Lodging Award 2010 EPA Green Power Partnership 2010 Cornell University Honorable Mention Green Innovation Wyndham Worldwide Awards: 2010 Working Mother 100 Best Companies 2010, 2009, 2008 Fortune Magazine s The World s Most Admired Companies 2009 Top 15 Companies for Women in the August/September issue of PINK magazine 2010, 2009 Named to Diversity Inc s Top 25 Noteworthy Companies 2009 HSMAI s Adrian Award Gold Winner in the category of Loyalty Program 2010, 2009 Diversity and Careers Magazine Diversity Choice Award 2010, 2009 Latina Style Top 50 Companies for Diversity 2010 Morris County Hispanic-American Chamber of Commerce s LARGE CORPORATION OF THE YEAR Wyndham Worldwide 2010 Morris County Hispanic-American Chamber of Commerce s PRESIDENT S AWARD Jose Nido, Vice President, Global Supplier Diversity, Wyndham Worldwide 47

48 F Awards and Recognition 2010 Florida Minority Supplier Development Council s CORPORATION OF THE YEAR Wyndham Worldwide 2010 Florida Minority Supplier Development Council s BUYER OF THE YEAR Shelly Hurst, Procurement Manager, Wyndham Worldwide 2010 United States Minority Business Development Agency/Florida Minority Business Opportunity Center s CORPORATE LEADERSHIP AWARD Jose Nido For complete information on all the awards and recognition from our individual properties around the globe, visit 48

49 G GRI CONTENT INDEX GRI Reference GRI DISCLOSURES AND PERFORMANCE INDICATORS DESCRIPTION Location Coverage 1.1 Statement from the most senior decision-maker of the organization 3 FULL 2.1 Name of the Organization Cover FULL 2.2 Primary brands, products, and/or services 7-13, 10-K* FULL 2.3 Operational structure of the organization, including main divisions, 7-13, 10-K FULL operating companies, subsidiaries, and joint ventures 2.4 Location of Organization s Headquarters Back Cover FULL 2.5 Number of countries where the organization operates, and names 10, 10-K FULL of countries with either major operations or that are specifically relevant to the sustainability issues covered 2.6 Nature of ownership and legal form 10-K FULL 2.7 Markets served (including geographic breakdown, sectors served, 9-10, 10-K FULL and types of customers/beneficiaries) 2.8 Scale of the Organization 9-10, 10-K FULL 2.9 Significant changes during the reporting period regarding size; N/A FULL structure or ownership (no changes) 2.10 Awards received in the reporting period FULL 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 6 FULL 3.2 Date of most recent previous report (if any). N/A FULL (1st Report) 3.3 Reporting cycle (annual, biannual, etc.) 6 FULL 3.4 Contact point for questions regarding the report or its contents. Back cover FULL 3.5 GRI Process for defining report content 5-6, 15, 19 FULL 3.6 Boundary of the Report 5-6 FULL 3.7 Any specific limitations on the scope or boundary of the report 5-6 FULL *(Wyndham Worldwide 10K can be found at 49

50 G GRI Content Index GRI Reference DESCRIPTION Location Coverage 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other 5-6, 10-K FULL entities that can significantly affect comparability from period to period and/or between organizations. 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying 5, 31, FULL estimations applied to the compilation of the Indicators and other information in the report Explanation of the effect of any re-statements of information provided in earlier reports, N/A FULL and the reasons for such re-statement. (1st Report) 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement N/A FULL methods applied in the report. (1st Report) 3.12 Table identifying the location of the Standard Disclosures in the report FULL 3.13 Policy and current practice with regard to seeking external assurance for the report. 6, PARTIAL 4.1 Governance structure of the organization 14-15, Proxy FULL Statement*** 4.2 Indicate whether the Chair of the highest governance body is also an executive officer. 14, FULL Proxy Statement 4.3 Number of members of the highest governance body that are independent and/or non-executive members FULL Proxy Statement 4.4 Mechanisms for shareholders and employees to provide recommendations or direction 15-17, 37, 41, FULL to the highest governance body Proxy Statement 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided FULL Proxy Statement 4.7 Process for determining the composition, qualifications, and expertise of the members of the highest 10-K, FULL governance body and its committees, including any consideration of gender and other indicators of diversity. Proxy Statement 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant 18-19, 31 FULL to economic, environmental, and social performance and the status of their implementation Processes for evaluating the highest governance body s own performance, particularly with respect Proxy Statement FULL to economic, environmental, and social performance. ***(Wyndham Worldwide Proxy Statement can be found at 50

51 G GRI Content Index GRI Reference DESCRIPTION Location Coverage 4.13 Memberships in Associations 24, FULL 4.14 List of stakeholder groups engaged by the organization , FULL 4.15 Basis for identification and selection of stakeholders with whom to engage FULL EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, 9, 10-K PARTIAL donations and other community investments, retained earnings, and payments to capital providers and governments EC2 Financial implications and other risks and opportunities for the organization s activities due to climate change 10-K, FULL EN3 Direct energy consumption by primary energy source 31 FULL EN4 Indirect energy consumption by primary source 31 FULL EN5 Energy saved due to conservation and efficiency improvements , GBP** FULL EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy 31-36, GBP FULL requirements as a result of these initiatives EN7 Initiatives to reduce indirect energy consumption and reductions achieved , GBP FULL EN8 Total water withdrawal by source 31 PARTIAL EN16 Total direct and indirect greenhouse gas emissions by weight 31-32, FULL EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 30-36, GBP FULL EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation , GBP FULL LA1 Total workforce by employment type, employment contract, and region 37, 10-K PARTIAL LA4 % of employees covered by collective bargaining agreements 10-K FULL LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their 39 PARTIAL families, or community members regarding serious diseases. LA10 Average hours of training per year per employee by gender, and by employee category. 22, 23, PARTIAL LA11 Programs for skills management and lifelong learning that support the continued employability of employees FULL and assist them in managing career endings. LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, 14, PARTIAL age group, minority group membership, and other indicators of diversity. **(Wyndham Green Global Best Practices (GBP) document can be found at 51

52 G GRI Content Index GRI Reference DESCRIPTION Location Coverage HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures PARTIAL taken to contribute to the effective abolition of child labor. HR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, PARTIAL and measures to contribute to the elimination of all forms of forced or compulsory labor. SO5 Public policy positions and participation in public policy development and lobbying PARTIAL 52

53 H GRI LEVEL STATEMENT 53

54 I ASSURANCE Wyndham Worldwide Corporation Deloitte & Touche LLP conducted a review, in accordance with attestation standards established by the American Institute of Certified Public Accountants, to provide a moderate level of assurance on Wyndham Worldwide Statement of Greenhouse Gas Emissions for the year ended December 31, Statement of Greenhouse Gas (GHG) Emissions for the year ended December 31, 2010 Global CO 2 e Emissions (metric tonnes) BY SCOPE: Scope 1 Scope 2 Total Scope 1 & , , ,385 See accompanying Notes to Statement of GHG Emissions Notes to Statement of GHG Emissions for the year ended December 31, 2010 Note 1: GHG Reporting Policies Wyndham is one of the world s largest hospitality companies across six continents. Through our three business units - Wyndham Hotel Group, Wyndham Vacation Ownership, and Wyndham Exchange & Rentals we offer individual consumers and business customers a broad array of hospitality products and services as well as various accommodation alternatives and price ranges through our premier portfolio of world-renowned brands. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 26,400 employees globally. These greenhouse gas (GHG) emissions disclosures have been prepared for the reporting year of January 1 to December 31, Wyndham has designated 2010 as its base year for future year reporting purposes. This is the same as the Company s financial reporting period. Scope 1 and 2 GHG emissions information has been prepared in accordance with the World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition (the GHG Protocol). 54

55 I Assurance A summary of the key disclosure policies is set out below. Greenhouse gases All GHG emissions figures are in metric tonnes of carbon dioxide equivalents (CO 2 e) and include four of the six greenhouse gases covered by the Kyoto Protocol carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O) and hydrofluorocarbons (HFCs). Perfluorocarbons (PFCs), and sulphur hexafluoride (SF 6 ) emissions have been omitted from our reporting as they are not a material source of greenhouse gases for the business. GHG Reporting Scope and Boundary The Statement of GHG includes Scope 1 (direct) and Scope 2 (indirect) emissions that have been reported for operations within the organizational boundary described below. Specifically: Our Scope 1 emissions includes all GHGs emitted directly from the company s activities, which includes natural gas, propane, fuel oil, diesel, owned/leased fleet fuel usage and refrigerant use. Our Scope 2 emissions includes indirect GHG emissions from consumption of purchased electricity and limited district chilled water. GHG emissions have been reported for the entities where the Company has operational control (as defined by the GHG Protocol). GHG emissions that pertain to the organizational and operational boundaries have been reported for the global operations for owned, managed and leased locations including administrative space, sales, data and call centers, resorts, bungalows and managed hotels; which in total includes 435 properties in Acquisitions or divestments that occurred in 2010: Wyndham Exchange & Rentals Acquisitions Hoseasons - acquired in March 2010, and emissions associated with our operational control are included in the Statement of GHG Emissions as of the acquisition date. ResortQuest - acquired in September 2010, and emissions associated with our operational control are included in the Statement of GHG Emissions as of the acquisition date. James Villa Holidays - acquired in November 2010, emissions associated with our operational control will be included in the Statement of GHG Emissions as part of corporate real estate in Wyndham Hotel Group Acquisitions Tryp acquired in June 2010, operates as a franchise under Wyndham Hotel Group and is not currently included in the boundary of operational control. 55

56 I Assurance GHG Emission factors The carbon dioxide emissions and equivalents associated with the activities noted above have been determined on the basis of measured or estimated energy and fuel use, multiplied by relevant carbon emission factors. EMISSIONS SOURCE Scope 1 - Global EMISSION SOURCE TYPE Natural gas, diesel, propane EMISSION FACTOR EMPLOYED Intergovernmental Panel on Climate Change (IPCC) National GHG Inventory Guidance 2006 Default Emission Factors for Stationary Combustion in the Commercial/Institutional Category Published emission factors were used to calculate emissions from operations. Scope 1 - Global Scope 1 - Global Refrigerants Diesel, gasoline IPCC Second Assessment Report (SAR) 1996 California Climate Action Registry General Reporting Protocol Version 2.1 Jan 2009, Emissions Factors for Mobile Combustion Scope 2 - U.S. Electricity US Environmental Protection Agency (EPA) Emissions & Generation Resource Integrated Database (egrid) 2007 Scope 2 - Canada Electricity Canadian National Inventory (2008) Scope 2 - Rest of world Electricity International Energy Agency (IEA) International Electricity Emission Factors, 2006 and 2009 except electricity emission factors for the Bahamas, Grand Cayman, and Puerto Rico: which is Certified Emission Reduction Unit Procurement Tender (CERUPT) 2005-Netherlands factor for Caribbean Islands with diesel-fired electricity. Scope 2 - Global Chilled Water U.S. Energy Information Administration (EIA), Voluntary Reporting of GHG, Appendix N, Emissions Factors for Stream and Chilled/Hot Water 56

57 I Assurance Methodology For Scope 1 and 2, primary usage data is used to calculate GHG Emissions. The primary data is collected through an environmental management system (EMS) for period end December 31, The EMS then calculates the associated emissions through the application of appropriate GHG emission factors, as described in Emissions Factors above. Wyndham developed a detailed quality assurance/ quality control process to ensure data accuracy and completeness. For 2010, Wyndham has collected approximately 90% of the actual data based on square footage which exceeded our internal target of collecting at least 80% actual data. Data estimation was required for the remaining portion. types. For vacant space, the energy intensity proxy was derived from the Commercial Buildings Energy Consumption Survey (CBECS). Note 2 Emissions by Greenhouse Gas Type for the year ended December 31, 2010 Global Metric Tonnes of CO 2 e Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) HFCs Total , ,286 8, ,385 For those sites that provided only partial data, the data for the missing months were estimated by prorating the missing data based on the available monthly data for that specific site. Where no data was available for a particular site, an estimate was calculated using energy intensity as a proxy for energy use based on the building type and using Wyndham s energy intensity for similar buildings types for which data was available. In those circumstances where an energy intensity proxy for a particular building type was not available due to lack of data, the overall energy intensity average for Wyndham was used. Where square footage was not available, a proxy was calculated from Wyndham s actual data or similar building Global Metric Tonnes Carbon Dioxide (CO 2 ) Methane (CH 4 ) Nitrous Oxide (N 2 O) HFCs Total , ,598 57

58 I Assurance Deloitte & Touche LLP 600 Renaissance Center Suite 900 Detroit, MI USA Tel: INDEPENDENT ACCOUNTANTS REVIEW REPORT Board of Directors, Shareowners, and Stakeholders Wyndham Worldwide Corporation Parsippany, New Jersey We have reviewed the accompanying Statement of Greenhouse Gas ( GHG ) Emissions of Wyndham Worldwide Corporation (the Company ) for the year ended December 31, The Company s management is responsible for the Statement of GHG Emissions. We conducted our review in accordance with attestation standards established by the American Institute of Certified Public Accountants. A review consists principally of obtaining an understanding of the nature of the Company s GHG emissions, applying analytical procedures, considering environmental assumptions, methods, and findings and making inquiries of persons responsible for environmental and operational matters. It is substantially less in scope than an examination, the objective of which is the expression of an opinion on the presentation. Accordingly, we do not express such an opinion. A review of the Statement of GHG Emissions is not intended to provide assurance on the Company s compliance with laws or regulations. Environmental and energy use data are subject to inherent limitations, given the nature and the methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary. Based on our review, nothing came to our attention that caused us to believe that the Statement of GHG Emissions of Wyndham Worldwide Corporation for the year ended December 31, 2010 is not presented, in all material respects, in conformity with the Greenhouse Gas Protocol published by the World Business Council for Sustainable Development and the World Resources Institute, Revision March June 7, 2011 June 9,

59 22 SYLVAN WAY, PARSIPPANY, NJ WyndhamWorldwide.com For further information about this report please send to: Sustainability Department Please send inquiries to 59