CORPORATE SOCIAL RESPONSIBILITY REPORT 2015 2016 TRAVELING TOGETHER FOR A BETTER WORLD
TABLE OF CONTENTS Executive Statements and Overview Message from our CEO Perspectives from Leadership Company and Report Overview Strategy and Governance Corporate Social Responsibility Strategy Governance Materiality and Engagement Materiality Stakeholder Engagement Global Partnerships Planet Protecting Natural Capital Focus and Performance - Energy and Emissions - Water - Waste - Education - Community - Innovation People Enhancing Human Capital Count On Me! Learning and Development Diversity Be Well Wyndham Philanthropy Community Programs Places Building Better Communities Ethics and Human Rights Risk Management Partnering With Our Suppliers Performance Awards and Recognitions 2013-2015 Performance Tables Content Indexes and Assurance GRI Content Index Independent Assurance Statement Wyndham Worldwide Corporate Social Responsibility Report 2
A MESSAGE FROM STEPHEN P. HOLMES With the widest range of places to stay, Wyndham Worldwide welcomes people to experience travel the way they want. With our unmatched portfolio of hotels, vacation ownership, and unique accommodations, such as vacation exchange, holiday parks, and managed home rentals, there s simply no one else like us in the hospitality industry. Since our launch in 2006, we have been guided by our core values, consistently aligning our business and financial performance with the responsible way we operate to drive value for those around us. Our holistic integration of Corporate Social Responsibility (CSR) into our business has been an important driver of our success, operating in a way that cares for people, strives to preserve our planet, and provides places for guests to stay that are socially and environmentally responsible. As you will see reflected in this report, we are working to use our global footprint and our talent to act as positive agents of change for our associates, our partners, our guests and our communities, allowing us to develop new programs and accomplish major milestones: Through our innovative, custom-designed eco-software, the Wyndham Green Toolbox, we have developed a seamless way to continuously measure our carbon and energy usage across a wide range of managed and owned properties. Effective tracking enabled us to achieve our goal to reduce carbon emissions by 20% six years ahead of schedule and establish a new goal to reduce carbon and water usage by 25% by 2025. Reflecting our culture of giving and service, our Wyndham Rewards members donated over 8.4 million loyalty points to charities; our timeshare owners donated over 200,000 units of food to community food banks; and more than 3,500 of our associates participated in at least one full-day volunteer activity. Continuing our commitment to diversity in our supply chain, we achieved a 16.2% diversity spend rate and were recognized by Diversity Inc. as one of the top 10 programs in the country; Proving a healthy bottom line begins with a healthy workforce, more than 35% of our associates earned wellness credits by completing health assessments which in turn lowered their medical costs. Establishing a global network of Compliance Champions leaders who provide guidance for associates on business conduct and compliance. Award-winning CSR programs and initiatives have resulted in being named the 2016 Industry Leader and Gold Class Distinction for Excellent Sustainability Performance by RobecoSAM; being named to the CDP Climate Change A-List; and being among the 2016 World s Most Ethical Companies by Ethisphere Magazine, 2016 FORTUNE World s Most Admired Companies, and DiversityInc s Top 50 Companies for Diversity. Our culture drives us to never rest on any success, and continue achieving great and tangible results. We are further defining what CSR means at Wyndham Worldwide and challenging our thinking of what success looks like for us in the years ahead in delivering great experiences for our customers, results for our shareholders, and service to the world around us. STEPHEN P. HOLMES CHAIRMAN AND CEO WYNDHAM WORLDWIDE -1 EXECUTIVE STATEMENTS AND OVERVIEW Wyndham Worldwide Corporate Social Responsibility Report 3
PERSPECTIVES FROM LEADERSHIP As one of the largest and best performing hospitality companies in the world, we have developed a culture committed to innovation and doing business in a way that our associates, shareholders, guests and partners can be proud of. We operate in a way that aspires to care for people, preserve our planet, and provide places to stay that are socially, environmentally, and economically responsible. Our teams work every day to maximize our social benefits and minimize the environmental impact of doing business. Through innovation and the focus on achieving meaningful change, we continue to set higher expectations for ourselves in delivering great experiences for our customers and strong results for our shareholders, in ways that are responsible and drive value for those around us. MARY FALVEY, CHIEF HUMAN RESOURCES OFFICER At Wyndham Worldwide, we continue to be the world hospitality leader making a positive global impact by aligning our strategies to drive responsible growth. Our corporate culture is the foundation of our Corporate Social Responsibility program called Traveling Together for a Better World and reflects our spirit of giving. At the core of our business is creating value for our business and society, and in turn creating solutions for a sustainable future. A few examples include: Saving an estimated US $68 million since 2010 through efficiency projects that reduced our carbon emissions by 21% and water use by 18% as well as insuring that 27% of our $2.2 Billion supply chain meets our Wyndham Green criteria. Launching the first fly neutral corporate business program in the industry with United Airlines and purchasing over 268,000 pounds of coffee with Arbor Day over 268,000 pounds of coffee saving over 26 million trees annually. Partnering with the World Travel and Tourism Council to develop the industry guidelines for Environmental, Social and Governance reporting to address the growth of shareholder and investor review of non-financial corporate performance. Increasing our philanthropic giving to $7.2 million in 2015 and announcing a three-year partnership with Save the Children to leverage our global footprint and expertise. Our goal is to help the 286 million youth and children that live on less than $4.00 a day. These examples demonstrate not only how we have created shared value during the past year, but also how we continue our commitment to be a leader for good in the industry. FAITH TAYLOR, SENIOR VICE PRESIDENT, CORPORATE SOCIAL RESPONSIBILITY OFFICER EXECUTIVE STATEMENTS AND OVERVIEW Wyndham Worldwide Corporate Social Responsibility Report 4
THE COMPANY OVERVIEW One of the world s largest hospitality companies, Wyndham Worldwide provides a broad range of accommodations, products and services for both consumer travelers and business-to-business customers across the globe through its three business units. Unlike other hospitality companies, our diverse portfolio transcends multiple hospitality and lodging segments, including hotel franchising and management, timeshare development and sales, serviced vacation rentals, and timeshare exchange. Wyndham Hotel Group is the world s largest hotel company based on number of hotels and is one of three hospitality business units of Wyndham Worldwide (NYSE: WYN). As both a leading hotel brand franchiser and hotel management services provider, the company s global portfolio consists of nearly 8,000 properties and approximately 679,100 rooms in 73 countries under the following brands: Dolce Hotels and Resorts, Wyndham Grand, Wyndham Hotels and Resorts, Wyndham Garden Hotels, TRYP by Wyndham, Wingate by Wyndham, Hawthorn Suites by Wyndham, Microtel Inn & Suites by Wyndham, Ramada, Baymont Inn & Suites, Days Inn, Super 8, Howard Johnson, Travelodge and Knights Inn. Wyndham Rewards, the company s guest loyalty program, offers more than 45 million members the opportunity to earn and redeem points at thousands of hotels across the world. Nearly 8,000 hotels representing approximately 683,300 rooms Wyndham Destination Network is the world s largest provider of professionally managed, unique vacation accommodations from houseboats and cottages to rental homes and timeshare resorts. Its network comprises more than 112,000 properties in over 100 countries and consists of a collection of renowned brands including RCI, The Registry Collection, Wyndham Vacation Rentals, Hoseasons, Landal GreenParks, Novasol, cottages.com and James Villa Holidays. Last year, Wyndham Destination Network sent more than 13 million people on the vacations of their dreams. Over 3.8 million vacation exchange members More than 112,000 professionally managed properties in over 100 countries Wyndham Vacation Ownership the industry and timeshare ownership market leader, develops, markets, and sells vacation ownership interests and provides consumer financing to owners through its network of 213 vacation ownership resorts serving nearly 900,000 owners throughout the United States, Canada, Mexico, the Caribbean, South America and the South Pacific. Brands include CLUB WYNDHAM, WorldMark by Wyndham, CLUB WYNDHAM ASIA, WorldMark South Pacific Club by Wyndham, Shell Vacations Club, Margaritaville Vacation Club by Wyndham and WYNDHAM CLUB BRASIL ṢM Approximately 897,000 owners and over 210 resorts -3, -4, -6, -8, -9-17 EXECUTIVE STATEMENTS AND OVERVIEW Wyndham Worldwide Corporate Social Responsibility Report 5
THE COMPANY OVERVIEW Our mission is to increase shareholder value by offering the widest range of places to stay thereby allowing customers to experience travel the way they want. Our collective brands provide travelers with more than 120,000 places to stay in more than 100 countries on six continents. Our strategies to achieve these objectives are to: Strategically allocate capital to expand our fee-for-service business models; Increase cash flow and profit through superior execution; Develop innovative services and products to meet the evolving needs of customers; and Further develop our world class capabilities by strengthening our brands, attracting and developing the best talent and investing in technology. We also provide value-added services and products and support and promote green and diversity initiatives to enhance the travel experience of the individual consumer and to drive revenues to our business customers. 37,700 Approximate number of employees worldwide Wyndham Worldwide by the Numbers Over 5 Billion US dollars in Total Net Revenues in 2015 7,810 Hotels globally in the WHG portfolio Over 12 Million Active members in the Wyndham Rewards loyalty program 77% Of revenues in the United States 213 Wyndham Vacation Ownership resorts in the U.S., Canada, Mexico, South America, the Caribbean and the South Pacific 3.8 Million Vacation exchange members globally 678,000 Hotel rooms on six continents Creating a Values-Centered Company In 2006, as Wyndham Worldwide was preparing to list on the NYSE, the Company had the unique opportunity to develop a vision reflective of what was necessary to build a strong foundation for the future. The same values that defined us when Wyndham Worldwide was established 10 years ago remain the foundation for our strategy today and remains a strong driver of our culture as reflected in the Core Values of Wyndham Worldwide: Act with integrity in all that we do Respect everyone, everywhere Improve our customers lives Support our communities Provide individual opportunity and accountability Our strategy is anchored by each of our five core values, and delivered through targeted efforts with accountability across the enterprise. -8, -9, -17, -56 EXECUTIVE STATEMENTS AND OVERVIEW Wyndham Worldwide Corporate Social Responsibility Report 6
REPORT OVERVIEW Our sixth annual Corporate Social Responsibility Report illustrates our alignment with our overall corporate strategy which includes three pillars of focus on our People, Planet and Places where we do business. For more information about the Global Reporting Initiative, please visit www.globalreporting.org. We welcome stakeholder feedback on this report at green@wyn.com. Global Reporting Initiative: To define report content, we utilized the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines and its materiality principles to determine which topics to cover and prioritize in the report. A GRI Content Index is included in the Report. UN Sustainable Development Goals: To assist readers, we have also provided a content index, which maps report content to relevant goals with the UN Sustainable Development Goals framework for 2030. Report Boundary: Our 2015 Report covers all business units: Wyndham Worldwide (WWW), Wyndham Destination Network (WDN), Wyndham Hotel Group (WHG) and Wyndham Vacation Ownership (WVO). For environmental performance data, we report on facilities in which we have operational control, which are our owned, leased and managed properties. Data Assurance: Deloitte & Touche LLP conducted a review of selected GRI indicators including our Statement of Greenhouse Gas Emissions in accordance with attestation standards established by the American Institute of Certified Public Accountants. Their assurance report can be found at the end of the report. We also worked with our internal audit team to review our carbon and water data to provide confidence in the accuracy of the data. Approximately 95% of our data is actual and 5% is estimated. Value of Reporting: Our Corporate Social Responsibility Report provides us with the framework in which we reflect on our performance in 2015, but also enables us to identify opportunities to improve on past successes and create further value for the Company and stakeholders through our efforts and programs. WYNDHAM WORLDWIDE SUSTAINABILITY REPORT WYNDHAM WORLDWIDE SUSTAINABILITY REPORT 2012 2013 2010 2011 WYNDHAM WORLDWIDE SUSTAINABILITY REPORT 2012-2013 2012 WYNDHAM WORLDWIDE SUSTAINABILITY REPORT 2011 WYNDHAM WORLDWIDE SUSTAINABILITY REPORT GOLDMAN SACHS SUSTAIN GOLDMAN SACHS SUSTAIN 2013-2014 2014-2015 SUSTAINABILITY REPORT 2013 2014 Wyndham Worldwide Sustainability Report 1 WYNDHAM WORLDWIDE SUSTAINABILITY REPORT WYNDHAM WORLDWIDE SUSTAINABILITY REPORT -31, -18 EXECUTIVE STATEMENTS AND OVERVIEW Wyndham Worldwide Corporate Social Responsibility Report 7
CORPORATE SOCIAL RESPONSIBILITY STRATEGY At Wyndham Worldwide we are committed to Corporate Social Responsibility, our focus is: Traveling Together for a Better World As a global leader our journey reflects our culture of strong values, signature Count On Me! service and spirit of giving. We believe we can improve the world by leveraging our hospitality expertise and mobilizing our scale by engaging our businesses and people to be positive agents of change throughout the hospitality industry. We define corporate social responsibility as driving growth and innovation by creating shared value not only for our associates and guests, but also for our communities and the greater society. We deliver triple bottom line benefits to our: People Count On Me! To Enhance Our Lives We respect and celebrate our diversity, enable our wellbeing and provide benefits and opportunities for growth. For our communities we are committed to safe and secure environments where we deliver social and economic benefits through our spirit of giving. Impact Goals Enhancing the lives of 1 million people in the communities where we work and live by 2025. Planet - Count On All! To Preserve our World We are committed to reducing our environmental footprint, preserving our natural resources and developing innovative solutions to manage climate change. Reducing our carbon and water by 25% by 2025. Places Count On Us! To Build Better Communities We provide places to stay that help to drive local, social and economic benefits from the money spent and jobs created by our businesses, partners, associates and guests. We are committed to conducting our businesses with high ethical standards, free from human trafficking and using products and services sourced responsibly. Leading our businesses ethically and responsibly in the communities where we work and live. Wyndham Worldwide Receives Industry Leader, Gold Class from RobecoSAM Wyndham Worldwide was once again recognized by RobecoSAM for our effort in sustainability. This year the Company was named a Gold Class Sustainability Leader in the 2015 Sustainability Yearbook, an improvement over last year s Silver Class rating, as well as an Industry Leader. The Sustainability Yearbook lists the world s most sustainable companies in each industry and provides thought-provoking snapshots of the main trends, challenges and opportunities with the aim to bridge the gap between corporate sustainability and sustainability investing. In addition to being within the top 15 percent of their industry, companies need to achieve a score within 30 percent of the best-performing company in their industry to be included. Wyndham Worldwide is the only company in the world recognized with RobecoSAM s Gold Class sustainability rating in the Hotels, Resorts & Cruise Lines sector. -14 STRATEGY AND GOVERNANCE Wyndham Worldwide Corporate Social Responsibility Report 8
CORPORATE SOCIAL RESPONSIBILITY STRATEGY At Wyndham Worldwide, our values drive our primary corporate social responsibility strategies, which are also pillars of the Company s core business strategic priorities: Focus DIVERSITY, HUMAN RIGHTS, WELLNESS, PHILANTHROPY, ETHICS, ENVIRONMENT & SUSTAINABILITY Strategy Working with our associates, customers, shareholders and local communities to minimize our environmental impact and improve our communities and customers lives. Developing and disseminating best practices in programs, products and services. Setting environmental and social impact targets and measuring performance. Complying with evolving local, state and federal laws. Vision Drive value to our associates, consumers, customers and shareholders by delivering economic, environmental and social benefits for current and future generations. Business Strategies Strategically allocate capital to expand our fee-for-service business models; Increase cash flow and profit through superior execution; Develop innovative services and products to meet the evolving needs of customers; and Further develop our world class capabilities by strengthening our brands, attracting and developing the best talent and investing in technology. Core Values ACT WITH INTEGRITY RESPECT EVERYONE EVERYWHERE PROVIDE INDIVIDUAL OPPORTUNITY & ACCOUNTABILITY IMPROVE CUSTOMERS LIVES SUPPORT OUR COMMUNITIES Wyndham Worldwide s Corporate Social Responsibility program focuses on key strategic programs to reduce our environmental footprint, provide an exceptional culture for associates to achieve their personal and professional goals and make positive impacts within our communities. To deliver our program, we focus on three key pillars: our people, planet and places. We emphasize innovation and partnership with our suppliers, franchisees, and key stakeholders. Throughout this report we have highlighted how innovation is integrated into the fabric of our company with this symbol. -14 STRATEGY AND GOVERNANCE Wyndham Worldwide Corporate Social Responsibility Report 9
GOVERNANCE Wyndham Worldwide s corporate governance mechanisms are structured to ensure the integrity of our Core Values. Our 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 Board of Directors: Michael H. Wargotz, Myra J. Biblowit, Executive Officer of Wyndham Worldwide. The Board James E. Buckman, Stephen P. Holmes, Brian Mulroney, believes that the combined role of Chairman and CEO Pauline D. E. Richards, George Herrera promotes strategy development and execution, and facilitates information flow between management and the Board, all of which are essential for effective governance. At Wyndham Worldwide, diversity is fundamental to our 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. Wyndham Worldwide is also fortunate to have The Right Honourable Brian Mulroney, who was Prime Minister of Canada from 1984 to 1993, serve on its Board of Directors. As Prime Minister, Mr. Mulroney was recognized for environmental leadership named the Greenest Prime Minister in Canadian History for legislative efforts to improve air quality, maintain biodiversity, and reduce pollution. Environment and Social Oversight The Board of Directors, through the Corporate Governance committee, oversees and is updated on the performance and compliance of the Corporate Social Responsibility programs: Our CEO serves on the Corporate Governance committee and provides input into the strategy and direction of our Corporate Responsibility program. Our Chief Human Resources Officer and Senior Vice Presidents of Corporate Social Responsibility, Diversity, Ethics, and Wellness provide updates to the entire board and the Corporate Governance committee. Within our Board s Corporate Governance committee, areas of focus include our annual goals related to social and environmental performance, associate development and compliance. On behalf of the Wyndham Worldwide Board of Directors, we are proud of our Company s progress in exploring and adopting innovative environmental practices that work to reduce costs and increase efficiencies while improving the world around us. As global markets continue to grow and integrate, the travel and tourism industry has an increasing ability and responsibility to help shape sustainability innovation on the world stage. As a hospitality leader, Wyndham Worldwide continually seeks partnerships that aim to reduce the industry s environmental impact, while increasing the engagement of the millions of people we serve and work with around the world. - THE RIGHT HONOURABLE BRIAN MULRONEY, MEMBER, BOARD OF DIRECTORS -14, -34 STRATEGY AND GOVERNANCE Wyndham Worldwide Corporate Social Responsibility Report 10
GOVERNANCE The Corporate Social Responsibility (CSR) Leadership Council Wyndham Worldwide has established the CSR Leadership Council, which includes key Executive Leaders and the Chief Executive Officers of Wyndham Vacation Ownership, Wyndham Destination Network and Wyndham Hotel Group as well as Senior Leadership members in the business units and representatives from core functional areas. The CSR Leadership Council is responsible for developing and implementing the Wyndham Worldwide Corporate Social Responsibility Strategic Plan and is led by the Senior Vice President of CSR. It also oversees and engages with each business unit s Councils and external stakeholders, such as franchise owners, homeowner associations and vendors to help develop and implement programs: BOARD OF DIRECTORS/ EXECUTIVE OFFICERS Corporate Governance Committee and Board of Directors CSR LEADERSHIP COUNCIL STRATEGIC PARTNERSHIPS Academic, NGO, Suppliers, Government WYNDHAM CSR WORKING GROUPS WYNDHAM CSR COUNCIL GOALS: TRAIN, EDUCATE, TRACK, MEASURE AND COMPLY Wyndham Philanthropy Program Ethics & Compliance Human Rights Strategic Sourcing HOME OWNERS ASSOCIATIONS AFFILIATES AND HOMEOWNERS FRANCHISEE ADVISORY BOARD The CSR Leadership Council 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 social programs and the environmental footprint, legislative compliance and communication/reporting of the program. -14, -34 STRATEGY AND GOVERNANCE Wyndham Worldwide Corporate Social Responsibility Report 11
MATERIALITY Environmental, Social and Economic Materiality Matrix Guided by the Global Reporting Initiative s materiality principles and approach, we continue to engage with industry experts and stakeholders to assess the materiality of key economic, social and environmental topics for our industry and our Company. Hotel and Tourism Industry Matrix in Collaboration with the International Tourism Partnership Wyndham Worldwide has worked in partnership with the International Tourism Partnership (ITP) since 2014. More than 15 international hotel companies and more than 280 internal and external stakeholders provided a voice for environmental, social and economic issues in the hospitality industry. Further we conducted a stakeholder dialogue event where we talked about key challenges related to water consumption and labor standards/human rights. We recognize that our long-term business interests are fundamentally linked to environmental, social and economic stability. But the core questions remain: what is material and what is most relevant to our industry? Guided by these surveys and follow-up interviews an industry assessment of the most material issues for hotels operations are as follows: Environmental, Social and Economic Materiality Matrix Degree of Internal and External Stakeholder Concern Money Laundering Anti-competitive Behavior Solid Waste Freedom of Association Local Sourcing Animal Welfare Biodiversity Charitable Giving Data Privacy Bribery & Corruption Child Labor Forced Labor Staff Development Climate Change & Emissions Food Waste Purchased Goods Local Communities Preservation of Local Heritage Transportation Construction Materials Health & Safety Labor Standards Energy Use Water Consumption Sex Trafficking Water Pollution Local Economic Development Environmental, Social and Economic Initiatives Building upon these preliminary findings, we plan to continue active industry engagement through our affiliations with the International Tourism Partnership and the World Travel and Tourism Council to prioritize and address key issues so that we can drive leadership to address critical sustainability topics for hotels and the travel and tourism industry. MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 12
MATERIALITY Materiality Matrix for Wyndham Worldwide To develop our materiality matrix, we surveyed a sample representation of our stakeholders. Our results were also informed by additional stakeholder engagement efforts, which included our participation in the stakeholder engagement exercise in collaboration with the International Tourism Partnership to identify the most material social and environmental issues for the travel and tourism industry as well as from external information and research from World Travel and Tourism Council (WTTC). LONG-TERM ECOMONIC TRENDS/ISSUES BUSINESS ETHICS ENVIRONMENTAL MANAGEMENT: ENERGY AND WATER USE, WATER POLUTION, BIODIVERSITY AND FOOD WASTE RISK AND CRISIS MANAGEMENT: BRIBERY, CORRUPTION AND CYBER SECURITY Potential or Actual Stakeholder Concern OCCUPATIONAL HEALTH AND SAFETY HUMAN RIGHTS AND SEX TRAFFICKING/FORCED LABOR COMMUNITY ENGAGEMENT AND CHARITABLE GIVING IMPACT FROM PRODUCTS AND SERVICES: LOCAL SOURCING AND PURCHASED GOODS TRANSPORTATION AND CONSTRUCTION MATERIALS HUMAN CAPITAL MANAGEMENT AND LABOR STANDARDS CLIMATE STRATEGY CORPORATE GOVERNANCE INNOVATION An Ongoing Journey Potential or Actual Impacts to Wyndham Worldwide For Wyndham Worldwide, our commitment to Corporate Social Responsibility is a journey. As such, we strive to continue to align our strategies, programs and reporting to the topics of highest materiality. We also expect our industry and company materiality assessments to continue to evolve in response to ongoing stakeholder feedback and development in the field of environmental, social and governance programs. -18 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 13
MATERIALITY In our Corporate Social Responsibility Report, we aim to focus our disclosures to address key topics that have been identified as of medium or high impacts to our business and concern to our stakeholders. Defining Our Focus Areas Our assessment of materiality informs our Company s CSR focus areas and current goals: CSR Focus Areas Material Topics Goals Environment & Sustainability Community & Philanthropy Diversity & Inclusion Ethics & Human Rights Health & Wellness Climate Change Energy and GHG Emissions Sustainable Sourcing Water Waste Biodiversity Renewable Energy Associate and Community Investment Employee Diversity and Equal Opportunity Supplier Diversity Ethical Conduct Anti-Corruption Regulatory Compliance Protection of Children from Exploitation Human Rights in Operations Supplier Labor and Human Rights Practices Employee Wellness Occupational Health & Safety Customer Health & Safety Reduce greenhouse gas emissions and water consumption per square foot by 25% in 2025 from 2010 baseline Plant 1 million trees by 2017 and purchase over 250,000 lbs. of shade grown coffee a year Procure 30% of our $2.2 Billion spend from suppliers who meet our Wyndham Green Supplier criteria by 2020 Generate 10% of total electricity through onsite renewable energy by 2035 Positively impact 1 million people by 2025 through our corporate social responsibility programs Support diversity and inclusion in our workforce through our program, partnerships and six associate business groups Continue to promote a culture of ethics and compliance from the top-down across all operations Partner with industry to proactively address human trafficking and other human rights issues in the travel and tourism industry and train/educate our owned managed and leased assets by 2018. Maintain Health and Safety Management System to protect health and safety of employees and guests Continue to advance employee wellness through our award-winning Be Well program Have 50% of U.S. based associates complete a health assessment, biometric screening and/or annual physical by year end 2016 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 14
MATERIALITY Aligning to the UN Sustainable Development Goals We have also applied the principles of materiality to the UN Sustainable Development Goals framework, prioritizing action toward the following goals: Goals How We Plan to Execute Tracking Our Progress Support low-income families and micro-enterprises through our community programs, education initiatives and procurement activities Charitable contributions Clothing donations Percentage of spend from diverse suppliers Address hunger through our community programs Promote nutrition among associates and guests Support suppliers that engage in sustainable agriculture practices Partner with organizations that address public health issues, including hygiene and alcoholism Continue to advance associate wellness through our awardwinning Be Well program Charitable contributions Food donations Percentage of spend from green suppliers Cage-free eggs and sustainable purchased seafood Number of people provided access to improve hygiene through donations to the Clean the World program Number of people and families struggling with addiction reached through affiliation with Shatterproof Participate in initiatives to build and enhance skills in local communities Provide our associates with ongoing educational and talent development opportunities Number of people reached through our affiliations with Save the Children, Christel House and Step Up for Students Number of future hospitality workers provided with training opportunities Continue to promote diversity and provide leadership opportunities among our female associates Support initiatives that empower women and girls through our community programs Develop women-owned businesses through Wyndham Diverse Suppliers Program Develop targeted programs to address water challenges for locations with identified water risks Achieve 2025 target to reduce water consumption and continue to invest water efficient technologies Percentage of spend from women-owned businesses Percentage of females in senior management at Wyndham Worldwide Number of women provided equal pay through the Arbor Day Foundation Water reduction per square foot (2011-2015) Number of children helped by Wyndham s installation of water filtration systems in China Provide local hiring opportunities in the travel and tourism industry as we continue to expand across the globe Be at the forefront on industry initiatives to address human trafficking and human rights issues in the travel and tourism industry Strictly enforce our Supplier Code of Conduct Embark on a multi-decade journey to reduce our greenhouse gas emissions in alignment to what is required to limit the rise in global temperatures to no more than 2 Celsius compared to pre-industrial temperatures Increase amount of renewable energy in our portfolio and purchase credible carbon offsets Support supply chain innovation through Wyndham Green procurement programs Promote and expand best practices for biodiversity protection across our properties Partner with suppliers to make a meaningful impact to protect forests and biodiversity Number of jobs created globally and in emerging markets and/or areas in high unemployment Number of people trained and educated through affiliations with the International Tourism Partnership, Polaris Project, ECPAT, and Sabre. Carbon reduction per square foot (2011-2015) Amount of renewable energy generated Reach of carbon offsets including those from business travel in collaboration with Avis and United and used at corporate assets Percentage of spend from green suppliers Millions of rainforest acres preserved through affiliation with Arbor Day Foundation Acres of wetlands protected in partnership with Natuurmonumenten Continue to advance sustainable development through active participation in industry initiatives with the World Travel and Tourism Council, International Tourism Partnership, Department of Energy, Clinton Global Initiative and other global partners Number of people reached through global partnerships Reach of projects to advance industry standards and best practices specific to travel and tourism such as, hotel carbon and water incentives, as well as the industry s environmental, social, governance reporting guidelines. MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 15
STAKEHOLDER ENGAGEMENT Wyndham Worldwide s approach to stakeholder engagement is designed to be inclusive, strategic and resultoriented to respond to the key topics of greatest concern and opportunity. Throughout the year, we actively engage with our associates, shareholders, suppliers, communities and customers. As a result of the Company s diversified business model, each business unit has a unique set of customer stakeholders, which includes our third-party hotel owners and franchisees, timeshare owners and hotel and vacation rental guests. Additionally, we are active participants in leading industry associations and promoters of academic research to solve global environmental, social and economic challenges. ASSOCIATES Wyndham Diversity Be Well Wyndham Green CSR Council Members Training and Development Associate Business Groups Wyndham Worldwide Health & Safety Compliance & Ethics COMMUNITIES Wyndham Worldwide Charitable Foundation Wyndham Championship Wish Day & Volunteerism Serious Fun Children s Network Starlight Christel House Arbor Day Foundation One Foundation Save the Children GLOBAL PARTNERSHIPS Clinton Global Initiative U.S. Department of Energy's Better Building Challenge World Travel and Tourism Council International Tourism Partnership American Resort Development Association American Hotel Lodging Association United States Green Building Council Universities STAKEHOLDER ENGAGEMENT SUPPLIERS Wyndham Green Suppliers Wyndham Diversity Suppliers Global Strategic Suppliers SHAREHOLDERS Investors Governance Committee Board of Directors CSR Reporting/Rating Wyndham Worldwide External Certifications/Awards/LEED/GreenKey CUSTOMERS Developers Timeshare Owners Guests Franchisees/Owners Affiliates -24, -25 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 16
STAKEHOLDER ENGAGEMENT Associates As a values-centered company that strives to lead through best-in-class service to all stakeholders, associate engagement is critical to deliver economic, social and environmental benefits to all stakeholders across each of our business units. Engagement Objectives Educate our associates about sustainable and diverse programs. Provide practical tools and programs for associate involvement. Stimulate associate involvement and spread enthusiasm. Educate our associates about LEED certified buildings. 2015 Outcomes Engaged associates at each business unit through Global Green, Wellness and Diversity Councils. Continued to offer and expand our Associate Business Groups globally including more than 4,800 members. Over 75% of global associates completed the Sustainability 101 training in 2015. Obtained associate feedback through annual Opinion Survey, 83% participation. Continued to make advancements for our Count On Me! service culture, Be Well, Diversity & Inclusion, Leadership, Career Management and Training programs. 1,667 hours of energy and water management training was completed by the WVO Resort team. Engaged associates through building tours and Lunch & Learn s targeting CSR initiatives. Held a CSR Town Hall across North America with our CEO of Wyndham Worldwide and Wyndham Hotel Group and Chief Human Resources Officer as well as SVP of CSR. Recognized associates for sustainable practices through the Caught Green Handed award. Shareholders As a publicly traded company, our responsibility to deliver stakeholder value influences all of our efforts. We strive to serve our shareholders through strong corporate governance and risk management practices in addition to transparency on environmental, social and governance performance. Engagement Objectives Demonstrate Wyndham Green s top-down and grassroots approaches to sustainability. Provide mechanisms for informing and influencing shareholders about Corporate Social Responsibility. 2015 Outcomes Continued to report annually on sustainability and corporate social responsibility performance through Wyndham Worldwide s Corporate Responsibility website, 10K, Proxy Statements, GRI reports, CDP Climate Change Reports, Dow Jones Sustainability Indices and other reviews. -26, -27 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 17
STAKEHOLDER ENGAGEMENT Suppliers Wyndham Worldwide engages with suppliers representing both our direct spend and those utilized by our third party franchisees. The Company s critical suppliers include our information technology providers. Our franchisees critical suppliers include food and beverage, staff uniforms, cleaning and sanitary supplies and other goods and services providers used for daily operations at franchised hotels and properties. The Company believes that great opportunities exist to foster innovation, manage risk and promote our values through supplier engagement: Engagement Objectives Improve practices related to diverse and sustainable sourcing. Work with suppliers to develop more environmentally friendly, diverse and socially-responsible products. 2015 Outcomes Continued to execute on targets to increase spend on Green and Diverse suppliers. Hosted fourth Wyndham Hotel Group Global Conference inviting more than 150 suppliers to participate and identified vendors with Green and Diversity designations. Recognized suppliers through the Vendor and Distributor of the Year awards as well as awarded Diversity and Green Supplier of the Year award. Screened all new suppliers on environmental, labor practices and human rights through Wyndham Green and Diversity Supplier survey and Supplier Code of Conduct enforcement. 27% of our $2.2 billion spend meets the Wyndham Green criteria. In 2015, Wyndham Worldwide achieved a 16.2% diverse spend rate. Communities Wyndham Worldwide has a proud legacy of supporting communities and families. Through our focus on corporate social responsibility and the Wyndham Worldwide Charitable Foundation, we engage to create positive impacts and to respond to needs that impact the communities we serve. Engagement Objectives Enhance the quality of childrens lives around the world. Make lasting contributions in the communities where we live and work. Leverage the time and talents of our associates to provide community service. 2015 Outcomes Continued support of Wyndham Worldwide Charitable Foundation s signature charities focused on children s well-being. Launched a global partnership with Save the Children. Title sponsor of the Wyndham Championship PGA tour since 2007, an event supporting local non-profits in North Carolina as well as our signature charities. Offered eligible associates the opportunity to participate in Wish Day volunteer events. In 2015 total charitable spend equaled $7.2 million and of this, the Arbor Day Lied Lodge Renovation donated more than $1.5 million in in-kind donations. In India we participated in the New Companies Act where 2% of our average net profits for our RCI India group went to three nonprofit programs focused on women and under-privileged youth. -26, -27 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 18
STAKEHOLDER ENGAGEMENT Customers-Hotel Owners The vast majority of the hotel properties that are associated with 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 collaborative efforts and continued engagement of our franchise owners is an important distinction for the Wyndham Green program: Engagement Objectives Gain buy-in on best practices where the Company does not have operational control. Demonstrate return on investment for environmental initiatives that require capital expenditures. Stimulate stakeholder involvement and spread enthusiasm. Assist owners in capturing revenues from +$100 million Green Request For Proposals (RFPs) from customers that want to book sustainable hotels Wyndham Hotel Group Asia Pacific and China Summit: Implemented the One Foundation Clean Water program to provide clean water filtration systems in China. 2015 Outcomes Conducted training and educational workshops on the Wyndham Green and CSR Programs to more than 6,000 hotel franchisees at annual conference. Polaris conducted human trafficking training at hotel conference. Convened Green Franchisee Advisory Board and Champions of Green Panel to showcase, test and share best practices to advance sustainability in the Wyndham Hotel Group portfolio. Promoted sustainable practices in resort development through Wyndham Vacation Ownership Eco-Resort recognition partners. Developed Hawthorn Suites by Wyndham and Wingate by Wyndham LEED certifiable hotel prototypes for owners and franchisees. Trained more than 900 General Managers and owners in leadership operations and the Wyndham Green Program at the Wyndham Hotel Group s School of Hospitality. Held 2nd annual Corporate Social Responsibility Reception at hotel conference called Traveling Together for a Better World. Ongoing hotel training and education of how to meet the RFP requirements to track and reduce their environmental footprint. Certified over 1,700 hotels and Wyndham Destination Network with Green Certification. Offered Green products and services for purchase that reduce our environmental footprint. Installed two water filtration systems in two schools in Guizhou, China, helping over 650 kids. Click and View Champions of Green 2015-26, -27 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 19
STAKEHOLDER ENGAGEMENT Customers-Timeshare Owners Wyndham Vacation Ownership is the market leader in timeshare resorts, with timeshare owners as the key stakeholders. As a result of engagement with timeshare owners on environmental stewardship, Wyndham Vacation Ownership has received the ARDY Award from the American Resort Development for its green certification program and was recognized by the Department of Energy as the Implementation Model for the Industry. Engagement Objectives Educate and motivate owners about their role in reducing environmental impacts. Provide education and training for timeshare owners to improve the energy efficiency and reduce the environmental impact. 2015 Outcomes Implemented green certification program at all Wyndham Vacation Ownership properties. Educated on sustainable practices as part of training during the Home Owners Association annual meeting. Provided regular updates on Wyndham Green program throughout the year. A 2014 survey representing more than 900,000 owners shows that 80% of respondents support environmental practices and believe they should be a part of their Wyndham vacation experience. 160 timeshare resorts are estimated to be green certified using a third party like Green Key, State, and TripAdvisor Green Lodging Programs. Partnered with the Arbor Day Foundation to educate timeshare owners about biodiversity and conserving our rain forests. More than 900,000 trees have been planted since 2011.. Offer green products such as amenities, cleaning solutions, and bags. Customers-Guests Central to our vision for market leadership is our Count On Me! service program and commitments. Providing best-in-class service to our hotel and vacation rental guests is at the heart of each of our brands, and through our Wyndham Green program, we also engage to empower our guests to partner with us to reduce our impacts to the environment: Engagement Objectives Educate and motivate guests about their role in reducing environmental impacts during their stay. Leverage the Company s expertise to help guests be more sustainable during and after their hotel stay. 2015 Outcomes Monitored guest satisfaction through surveys, industry benchmarks and establishment of key performance indicators such as our net promoter score. Rolled out Wyndham s Earth Smart and linen re-use program across 90% of Wyndham Hotel Groups global franchised and managed hotel portfolio. Continued Wyndham Green s Program for Kids which was designed to teach children about the environment and how they can positively impact the world around them. Under the Vacation Ownership team launched the first kids recycling APP. At Wyndham Vacation Ownership, 138,500 pounds of food was donated by owners in our Wishes Food Donation boxes and 2.1 Million points were donated by members through the Vacation for Vets program. Binny s Recycling Adventure is Wyndham s first kids app and was rolled out to WVO through the Wyndhham Green Kids Program. The app teaches kids how to recycle through a fun and interactive game. -26, -27 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 20
GLOBAL PARTNERSHIPS For nearly a decade, Wyndham Worldwide has actively engaged with leading global associations and research institutions. When we engage, we do more than write checks we are active participants in sharing, developing and advancing industry best practices and standards for CSR to proactively address global challenges facing business, society and the travel and hospitality industry. Engagement Objectives Encourage participation in the industry s activities to promote sustainability, climate change activities and corporate social responsibility. Engage academic institutions to conduct further research in sustainable hospitality. 2015 Outcomes World Travel and Tourism Council: Completed seventh year of partnership to establish and advance CSR guidelines for travel and tourism. International Tourism Partnership: Served on working groups to define material topics for sector and promote industry development of science-based emissions reduction targets as well as Human Rights best practices. American Hotel and Lodging Association: Participated in the Sustainability Committee s advocacy and communication of engineering and environmental issues in the lodging industry for fifth year. American Resort Development Association: Chaired Diversity & Inclusion Taskforce and Florida Diversity Council for second year. British Hospitality Association: Sponsored and participated in the development of social and environmental policies. Global Business Travel Association: Chaired Sustainability Committee for second year and received the Icarus Award for Outstanding Sustainable Performance. Clinton Global Initiative: Participated in carbon reduction challenges and crosssector collaboration discussion for fourth year. Cornell Sustainability Roundtable: Convened with industry leaders, including CEOs and Board members, to discuss emerging sustainability topics at Hotel Sustainability Roundtable. U.S. Green Building Council: Continued participation in both the New Jersey and National programs and chaired the Board of Directors of NJ. Universities: Continued active partnerships and involvement with Cornell, Cambridge, Columbia and Farleigh Dickinson Universities focusing on sustainability roundtables, panels, research and other leadership and educational programs. Government Programs: Participated in the United States Department of Energy s Better Building Challenge program for fourth consecutive year. Diversity Organizations: Participated in the National Minority Supplier Development Council, National Gay and Lesbian Chamber of Commerce, Women s Business Enterprise National Council, National Association for Female Executives, and National Black, Hispanic and Asian MBA organizations and launched Diversity scholarship with Hispanic and historical Black colleges. Community Partnerships: Continued partnerships with Big Brothers Big Sisters, American Cancer Society, Kids in Need of Defense, Starlight Children s House Week, Pendleside Hospice, Magpas and Kichener s Air Ambulance and the National Children s Foundation and Right to Play organizations. Arbor Day Foundation: Partnered with the Arbor Day Foundation for fourth year to plant more than 240,000 trees and purchased more than 260,000 lbs. of coffee, saving more than 27 million square feet of rainforest. The program has planted more than 900,000 trees since the program s inception. 10% of proceeds goes to pay fair living wage, medical coverage and education for the coffee farmers children. -16, -26, -27 MATERIALITY AND ENGAGEMENT Wyndham Worldwide Corporate Social Responsibility Report 21
GLOBAL PARTNERSHIPS World Travel and Tourism Council Since 2009, Wyndham Worldwide has worked closely with the World Travel and Tourism Council (WTTC), focusing on establishing sustainability and climate change guidelines for the industry. Our Company also actively participates in the WTTC s Human Capital Working Group. The group is focusing on the 75 million unemployed youth and actively developing strategies to address this global challenge. Wyndham Worldwide s SVP of Corporate Social Responsibility chaired the WTTC s Sustainability Working Group and in 2015, produced a set of resources outlining key trends and guidance for travel and tourism businesses on ESG reporting entitled Environmental, Social, Governance Reporting Trends and Guidance. Further we have actively participated with the Tourism for Tomorrow winners of the environmental and innovation categories to demonstrate and recognize best practices in the industry. In 2015, the Sustainability Working Group also published Travel & Tourism 2015 - Connecting Global Climate Action in advance of the landmark climate change agreement reached at COP21 in Paris. This report outlined the proactive steps that the industry is taking to address climate change. International Tourism Partnership Wyndham Worldwide serves on the Executive Committee of the International Tourism Partnership (ITP). In collaboration with the ITP, Wyndham is currently focused on a series of initiatives to support our corporate social responsibility platform, which includes the following: Defined the material topics for the travel and tourism industry and further developed science-based industry targets for water and carbon emissions. Identify and assess specific human and labor issues for the travel and tourism industry. Establishing industry standards and targets to protect human rights, ensure labor standards and increase youth employment in the travel and tourism industry. Developing and implementing the Hotel Carbon Metric and Water Metric initiatives. United States Green Building Council Wyndham Worldwide has partnered with the United States Green Building Council (USGBC) since 2011 to promote the building of environmentally responsible and high performing structures. For the last two years, the Company served as the Chair of the Board of Directors for the New Jersey Chapter and has worked closely with the organization to support sustainability outreach and education within the state as well as certify 45% of our corporate facilities through the LEED program. In the state of New Jersey the organization has received over one million dollars in education grants used for sustainability education. The organization has positively impacted over 15 pieces of New Jersey legislation and helped the development of master plans for New Jersey schools. The organization annually recognizes LEED and innovative green practices throughout the state of New Jersey. 2 0 1 3 2 0 1 3 Award winners at the 2015 USGBC NJ Emerald Awards Gala MATERIALITY AND ENGAGEMENT -16, -26, -27 Wyndham Worldwide Corporate Social Responsibility Report 22
FOCUS AND PERFORMANCE The Company demonstrated its leadership in sustainability best practices in 2015, achieving nearly 21% reduction in carbon emissions and 18% reduction in water consumption per square foot of its operationally controlled assets versus its baseline footprint in 2010. Learn more at wyndhamgreen.com Since its launch in 2006, Wyndham Worldwide has invested in exploring and adopting innovative sustainable practices through its Wyndham Green program, which focuses on sustainability across the Company. Focused on education and innovation, the program is a way of living and working based on the Company s vision and core values, enhancing customers lives by improving the environment, supporting global and local communities, and developing sustainable programs that deliver economic benefits. Focusing Our Sustainability Efforts Wyndham Green works to continually reduce the Company s environmental impact by focusing efforts and developing solutions around six core focus areas. nergy Conservation: Through increased awareness, innovation and teamwork, we are establishing E initiatives targeting new, energy-saving alternatives. Water Conservation: Wyndham Worldwide is using products and implementing services that promote cleaner water as well as more conservative and efficient consumption. ecycle and Re-Use: Wyndham Worldwide continues to adapt green practices to reduce the amount R of glass, paper, plastic and waste generated by substituting printed correspondence with email, adding single-stream recycling bins, and using FSC-certified recycled paper. Education: From informative newsletters, to team-building, to finding alternative commuting solutions, Green Teams educate and inspire their fellow workers to spread the word. ommunity: From recycling programs, to purchasing organically grown products, to the construction C 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 renewable energy, Wyndham Worldwide s associates are developing and implementing innovative solutions that inspire others to do the same. Each of our three business units is tasked with executing programs related to Wyndham Worldwide s sustainability core focus areas through our dedicated Global Green Council. In addition to delivering our sustainability efforts at our operationally controlled assets, Wyndham Hotel Group has more than 7,800 franchise locations that fall outside our specified boundary. In an effort to promote sustainability and our six core areas of focus to the franchisee population, the Company provides access to all of our programs and invites elite performers to sit on the Green Franchisee Advisory Board. PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 23
FOCUS AND PERFORMANCE Performance Targets and Progress against Goals Climate change, water risk and waste minimization have influenced both Wyndham Green s short and longterm efficiency strategies. The Wyndham Green team along with the Wyndham Green Council is engaged in a constant evaluation and improvement cycle to set and achieve short and long term goals while delivering triple bottom line benefits. The Green team pragmatically approaches a phased delivery of tools and resources to ensure that goals are met: The first phase is to deploy training and education to our associates, franchisees and timeshare owners to raise awareness and engage them in our sustainability strategy. Secondly, we develop programs that focus on low-to-no cost initiatives that increase efficiency and reduced waste at our hotels and timeshare resorts and also develop new green products and services for guests and owners. Our long-term strategy is focused on using our environmental management system, the Wyndham Green Toolbox, and by developing programs for larger capital investments while providing access to incentives and rebates and other financing options. Our program has resulted in operational savings of more than $71 million since 2010 as well as enhanced our brand reputation. We have been recognized as an industry leader by CDP for our energy and carbon management and we engage with the industry and NGO partners to drive energy efficiency and climate change strategies. The following table provides a snapshot of the Wyndham Green program areas, strategies and progress against goals in 2015. Wyndham Green Strategic Snapshot KPI Energy and Emissions Water Waste Goals Progress Key Strategies 2015 Milestones Challenges and Opportunities Achieve 25% reduction in energy consumption and greenhouse gas emissions per square foot by 2025 (from 2010 baseline). By 2035 have 10% of sites use solar and 30% use RECs. Landal GreenParks to be carbon neutral by 2030 From 2010-2015, Wyndham has reduced energy consumption and greenhouse gas emissions per square foot by 12% and 23% respectively, excluding Dolce acquisition. Incorporating Dolce the combined reductions are 8% and 21% respectively. As of 2015, solar is at.15% and RECs are at 5%. Energy efficiency projects (including HVAC upgrades and LED lighting) Behavioral change initiatives Renewable energy investments 125 energy and emissions reductions projects completed 144 properties using renewable energy 1760 properties participating in our Green Certification Program Landal GreenParks certified 40 cites and had 92 electric vehicles and 40 e-vehicle charging stations Achieve interim 2025 goal to maintain trajectory for science-based target of 80% reduction per square foot Expand renewable energy generation, RECs, and integrate new properties into portfolio to support science-based target Achieve 25% reduction in water consumption per square foot by 2025 (from 2010 baseline) From 2010-2015, Wyndham has reduced water consumption per square foot by 18%, with and without the impact of the Dolce acquisition. Water efficiency projects (including low flow fixtures) Landscape management Linen and towel re-use program Behavioral change initiatives Assist water stress regions to further upgrade to low and ultralow flow fixtures. California resorts reduced over 12 million gallons 2014 to 2015 Continue to implement water efficiency measures as our global portfolio expands Prioritize properties with greatest water consumption and exposure to local water risk Advance best practices and engage associates to reduce, re-use and recycle waste from our properties and corporate facilities Collect data to generate 2016 baseline for portion of WHG managed portfolio Wyndham has partnered with Waste Management to reduce waste-to-landfill at corporate facilities, and promote and share best practices across our portfolio. Walking the talk at corporate facilities Paper recycling programs (Shred-It) Organic compositing programs Donations of furniture, fixtures, equipment and toiletries for re-use Signed agreement with Waste Management Conducted waste assessment of Parsippany Campus Headquarters 2015 Worldwide Green Day theme: Living Plastic Free Achieving Everyday Sustainability Training rolled out on Green Housekeeping and Maintenance both include practical waste reduction and recycling guidance Further engage hotel staff, including housekeeping and food and beverage, to divert waste from landfill Obtain credible baseline to track progress and enable establishment of company-wide targets PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 24
FOCUS AND PERFORMANCE ENERGY AND EMISSIONS Leveraging the Technology and Managing Performance: Wyndham Green Toolbox Wyndham Worldwide utilizes the Wyndham Green Toolbox, a proprietary online environmental management system, developed to manage our energy, emissions, water and waste performance globally. Developed in 2010, the Toolbox is a state-of-the art system that was created to be flexible, scalable and customizable to match the Company s global presence across its business units. In 2015, Wyndham Worldwide implemented a new more powerful Toolbox. Included with the new Toolbox are multiple levels of automation which will allow properties to directly receive utility data feeds to increase accuracy, timeliness of reporting and allow properties to focus on efficiency measures, track projects and drive performance. A SUSTAINABLE SOLUTION GREENCIRCLE AUDITED CARBON WATER ONSITE SOLAR (% OF TOTAL ELECTRICITY) RECs (% OF TOTAL ELECTRICITY) 2012-13% -6% 2013-16% -16% Raised Goal to 25% by 2025 Solar Energy Installations Progress 12 Hotels/Resorts 145 Villas 2014-20% -18% 2015-21% -23% -18% 0.08% 2.1% 2016 (TARGET) 0.15% 5.0 Set Goals by 2035 On-site Solar: 10% RECs: 30% GOAL 2025 25% Per SQ FT* From 2010 Baseline* 2035 10% 30% Annual Energy and Water Cost Savings by Year (in millions) $30.00 $71.5MM Cummulative Since 2010 $25.00 $26.10 $20.00 $15.00 $18.40 $10.00 $5.00 $0.00 $12.00 $7.50 $4.00 $3.50 2010 2011 2012 2013 2014 2015 Note: cumulative savings in 2015 reflects net impact from mergers and acquisition PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 25
FOCUS AND PERFORMANCE ENERGY AND EMISSIONS A Multi-Year Commitment to Reducing Energy Consumption and Managing Performance The Wyndham Worldwide global carbon footprint is driven by our facilities and 98% comes from electricity, natural gas and fuels. Focusing on our owned, managed and leased assets, Wyndham Vacation Ownership and its timeshare resorts contribute 45% of the overall emissions followed by our hotels at 42%. The remaining emissions are from our managed Wyndham Destination Network portfolio, namely Landal Green Parks and corporate office space. Wyndham Worldwide set 2010 as a baseline year, and tracks performance against the baseline using an intensity of carbon equivalent per square foot to normalize across the business units. As of year ending 2015, Wyndham Worldwide reduced its emission intensity by 21%. Since 2010 Wyndham Worldwide has been continuously measuring and utilizing proven conservation strategies such as energy-efficiency retrofits, re-lamping to energy efficient lighting options, installing programmable thermostats, utilizing low flow aerators and showerheads and following a rigorous internal timeshare based green certification program. The Company reviews its top energy consumers and emitters on a quarterly basis. Since Wyndham Worldwide operates three distinct business units, the top energy consumers are handled on a case by-case basis. Data is reviewed collaboratively with each location, and areas for improvement are identified as an effort to reduce energy and/or water consumption. Opportunities for improvement can range from simple staff training programs such as, Turn-it-Off, or complex measures such as the installation of energy management systems. The opportunities begin with low-to-no cost measures and proceed through capital measures involving energy audits. In 2015 Wyndham Worldwide had a significant energy efficiency project portfolio in addition to low-to-no cost and behavioral based projects. The majority of projects can be classified into the following: Product Description Energy and CO2 Savings Expected Payback LED Lighting Retrofits Yes Average 1 to 3 years HVAC Equipment Maintenance and Replacement Yes Average 6 to 10 years Hot Water Heater Replacement Yes Average 6 to 10 years Variable Frequency Drives Yes Average 3 to 5 years Energy Efficient Appliance Replacement Yes Average 6 to 10 years Central Boiler Upgrade Yes Greater than 10 years In addition, Wyndham Worldwide completed several on site solar projects in the Wyndham Vacation Ownership portfolio. In total, on-site solar accounts for over 2.5MM kwh per year and is expected to increase as solar projects become more economically viable. PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 26
FOCUS AND PERFORMANCE WATER Mobilizing To Protect Global Water Resources In 2015, Wyndham Worldwide s water withdrawals were 49 gallons per square foot, declining 18% towards our ten-year goal in the first five years. Through our water conservation programs, we strive to use products and implement services that promote cleaner water as well as more conservative and efficient consumption. As such, each of our three business units is concentrating on ways to reduce water used throughout its brands and corporate office space. Wyndham Worldwide locations in all business units globally, including franchise locations, are encouraged to use low flow showerheads, faucet aerators and consider other conservation programs, including low flow toilets, urinals and minimizing water loss due to poor landscaping management practices. On a quarterly basis our properties purchase over 7,500 efficient fixtures through Wyndham Worldwide s Strategic Sourcing website. Those fixtures saved approximately 40MM gallons over the life of products. We have developed a series of programs and engagement initiatives with our guests, suppliers and franchisees to support our water conservation plan. Guest sustainability programs, in particular, are a priority for the Company. By participating in our towel and linen re-use program at our hotels, guests can choose not to have their linens and towels laundered every day reducing both water and energy consumption. We conservatively calculate that this program saves over 300 million gallons of water on a yearly basis. Wyndham Vacation Ownership California Water Program As an ongoing effort to our water stress and water management practices Wyndham Worldwide conducts yearly water assessments using tools available from World Wildlife Foundation and Aqueduct provided by the World Resources Institute. California has been in a significant drought for the past five years leading to legislative water usage restrictions that affect our properties. In response to the drought conditions, Wyndham Vacation Ownership has taken considerable action to further reduce water consumption; some of the water management programs are highlighted in the table below. The program resulted in over 10.5 million gallons of water being saved as compared to the baseline conditions. Management Programs Exteriors Common Areas Guest Rooms Closely monitor usages for elevated consumption and potential leaks Switch to more efficient laundry programs Train staff on best water saving practices Monitor cooling tower water usage Use native vegetation and drip irrigation where possible Reduce grass areas or remove if possible Mandatory water sensors Attend Smart Exterior Water Practices webinars Encouraged to switch to waterless urinals Use pool covers to minimize evaporation Implement a pool leak inspection program Aggressive leak inspection and reporting program Promote 1.0 gpm faucet aerators but a minimum of 1.5 gpm and maintain minimum 2.0 gpm Water Sense showerhead Provide collateral to guests for responsible water management 10.5 million gallons saved Test and install low flow toilets where applicable PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 27
FOCUS AND PERFORMANCE WASTE Waste is a complex global challenge with far reaching and long lasting impact. It is a major environmental impact of the hospitality industry throughout the world. Waste costs are increasing due to diminishing landfill space, while legislation for diversion is becoming increasingly stringent. Our waste reduction goal is to advance best practices and engage associates to reduce, re-use, donate and recycle waste from our properties and corporate facilities. Though, measuring, monitoring and reducing waste to landfill continues to be a considerable challenge, Wyndham has embarked on a journey to minimize waste to landfill. Our strategy builds on Wyndham Green s commitment to reduce its environmental impact by implementing innovative sustainable practices through its Wyndham Green program. Our plan is simple. We are rolling out a program to reduce, donate and recycle using tools and strategic partnerships to support property participation across all business units globally. Using the waste hierarchy depicted here, we are concentrating our energy on the base of the pyramid. The program focuses on all of Wyndham s relevant waste streams which include: glass, plastic, aluminum, paper, soap, food, organics, kitchen grease, lamps, batteries, e-waste, mattresses, furniture, linens and carpet. Partnerships are Key to Action DISPOSE TO LANDFILL CONVERT WASTE TO ENERGY RECYCLE COMPOST/DIGEST ORGANICS DONATE REUSE REDUCE/ELIMINATE Wyndham Worldwide values both internal and external collaboration. We partner with organizations and entities that are closely aligned with our sustainability goals, working to find the most sustainable and economic options. Regarding waste, we look to partner with organizations that provide the Company with the best value while also adding value to our communities by means of environmental or social enterprise. Waste Management In 2015, Wyndham partnered with Waste Management to reduce waste-to-landfill at corporate facilities, WHG managed properties and WVO properties. Through this partnership, we are already seeing enhanced reporting and transparency that will ultimately result in an accurate baseline for which we can measure our diversion progress. Clean the World Clean the World leads a Global Hygiene Revolution to distribute recycled soap and hygiene products from more than 2,250 hotel and resort partners to children and families in countries with a high death rate due to acute respiratory infection (pneumonia) and diarrheal diseases (cholera) which are two of the top killers of children under five. Since 2009, Clean the World has distributed more than 22 million bars of soap in 96 countries. As a Hospitality Partner, Wyndham Hotels and Resorts have the option to participate in the unique program. 2015 LBS of Waste Collected (Diverted) 2015 Soap Bars Distributed Shared 2015 LBS of Plastic Recycled 20,560 64,037 6,435 17,110 *The ONE PROJECT provides hygiene kits to those in local and global community need. Requested 2014 results to compare. 2015 Plastic Bottles to ONE PROJECT* PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 28
FOCUS AND PERFORMANCE WASTE Shred-it Shred-it is the largest document destruction company in the world, setting the standard for information security and workplace privacy, all built on a foundation of global sustainability and social responsibility. Crucially important to Wyndham s partnership with Shred-it is the assurance that all destroyed documents will be actively recycled. After the paper is securely shredded the confetti-sized pieces are bundled and recycled into paper products. LBS of Paper Securely Recycled Progress Toward Recycling Goals 2014 2015 Increase 1,628,175 1,699,651 4% Number of Trees Saved 13,895 14,508 4% Wyndham Hotel Group Managed Hotels Recycling Performance Wyndham continues to make notable strides toward its overall goals to reduce waste disposal to landfills, and implement recycling programs at our managed properties. The following metrics illustrate the positive recycling behaviors of our managed hotel properties, according to an April 2016 survey of all North American managed Wyndham Hotel Group properties. 18% 9% 73% Recycling Program in Place No Recycling Program Recycling is Not Available in Area Corporate Headquarters Waste Audit Wyndham Worldwide headquarters in Parsippany, NJ is exploring opportunities for improving waste diversion and decreasing the amount of waste material sent to landfill. To assist with these efforts, Waste Management (WM) Sustainability Services conducted a 24-Hour waste assessment in April 2015. A facility tour was conducted to understand operations, usage, waste generation, and material conveyance. The assessment included waste from office tenants, visitors, cafeteria and the café that was generated during the 24-hour period immediately preceding the assessment. The WM consultant arranged to have the janitorial staff collect and set aside all of the residual waste and recyclables from the day before the assessment and place it in a designated area for sorting and weighing. WM assessed 100% of the residual waste, recyclables and compostable organics collected, sorting it into categories, and weighed the materials to the nearest tenth of a pound. During this process, WM made observations which were documented through photographic logs. A total of 1,685.4 pounds of material was analyzed during the assessment showing Wyndham s diversion rate at about 46.2% with potential to increase it to 62.6%. Based on the audit, there is an opportunity to increase recycling efficiency in the cafeteria and at associates desks. In order to reach the potential diversion rate, Wyndham is conducting further education for associates, looking at multiple composting options, and training janitorial staff on proper recycling techniques. The graphic above is used for educational purposes at Wyndham s Corporate Headquarters. PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 29
FOCUS AND PERFORMANCE EDUCATION Associate Sustainability Training Sustainability Training for New Hires Wyndham trains new hires on a high level overview of the corporate social responsibility programs within the Company. This is offered to all business units and includes sustainability. Function-Based Online Sustainability Training During 2015, WHG and WVO rolled out a new online sustainability training program to associates. This new program, called Achieving Everyday Sustainability builds on the required Introduction to Sustainability. Achieving Everyday Sustainability has five modules that are job or function specific and include: Green Housekeeping Green Operations & Maintenance Green Food & Beverage Green Front Desk Green General Management Practices Through this new training program, associates are able to choose the function that aligns with his/her job responsibilities and choose only those course modules that are applicable. This function based approach to training makes the training easy to apply to everyday work tasks. Executive Leader Sustainability Training Sustainability training is also provided to WHG franchise owners and operators during the Executive Leadership Orientation presented by WHG s School of Hospitality Operations (SOHO). The sustainability module called, Going Green and Saving Green: How to Improve Business through Sustainability, educates hotel owners on why sustainability makes good business sense for the operation of a hotel. Educational Campaign: Green Day to Earth Day Through activities and events, we promote and share best practices across our portfolio. In 2015, Wyndham embarked on an educational campaign around waste reduction. The campaign began in April 2015 with Earth Day when we highlighted ways that properties could reduce waste in a short six month time frame leading into Worldwide Green Day in October 2015. The annual October Green Day event focused on educating associates to Live Plastic Free. The following examples illustrate our global participation in the Green Day to Earth Day campaign: Kettering, UK Promoted a household goods and clothing drive for a local charity Orlando, FL Held a campaign to donate gently used mattresses, box springs and TVs totaling 22,250 lbs to the Mustard Seed of Central Florida Redmond, WA Highlighted associates challenges to RETHINK their personal goals between now and Earth Day 2015 and hung their Green Superhero certificates on the wall Wyndham Grand Regency Doha and Ramada Plaza Jumeriah Beach Promoted plastic water bottle reduction with the installation of an energy efficient water filtration system PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 30
FOCUS AND PERFORMANCE COMMUNITY Greening Our Corporate Facilities Wyndham Worldwide strives to innovate when it comes to sustainable facilities that positively impact our employees and communities. LEED Our Wyndham Vacation Ownership sales center in Branson recently earned LEED certification for Commercial Interior thanks to the continued focus on operational excellence from our Corporate Real Estate and Facilities Management teams. The sales center is our fifth corporate site and first revenue generating site to gain this recognition. Additionally, four corporate office locations in Parsippany, Orlando and Indianapolis have all received LEED recognition. This is close to 50% of our domestic portfolio by square feet and 29% of our entire domestic and international portfolio. ENERGY STAR Above and beyond our corporate campus LEED buildings, we have also received ENERGY STAR certification at our RCI Indianapolis site In Carmel, Indiana in 2014. The Facilities and Maintenance team began this process in 2004 with a score of 46. Over the years they have been working on building improvements and enhancements to increase the efficiency of our energy usage and facilities operations. After 10 years, they have reached a score of 83. Buildings that earn the EPA s ENERGY STAR label use 35% less energy and generate 35% fewer greenhouse gas emissions than similar buildings across the nation. Making The Holidays Extra Green at Wyndham Bonnet Creek Resort As Wyndham Bonnet Creek Resort looked to start decorating for the winter holidays they turned their gaze to their recycling bin instead of a store. One housekeeping staff member had experience making beautiful things out of recycled materials and wanted to use that skill to decorate the property for the holidays. Her passion inspired the entire housekeeping staff and drew the involvement of every department. Associates brought the housekeeping staff recycled materials that would then be crafted into decorations. The hard work and talent is apparent in the beauty and perfection of each decoration. Upon viewing the abundance of ornaments, wreaths, candle holders and life-size snow men you would never know these were formerly toilet paper rolls or old newspapers. Going forward the activities department is developing a class to show owners and guests how to create their own recycled ornaments to take home with them or hang on the tree in the hotel lobby. PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 31
INTEGRATED SUSTAINABLE THINKING INNOVATION Business Travel: 23% Reduction per Associate The Company s business travel program is a key component to the success of the overall Wyndham Green Supplier initiative. Wyndham s Sustainability and Business Travel team collaborated to create a strategy that would promote smarter travel choices to Company associates rather than eliminating travel completely. Our overall strategy includes weaving sustainable travel practices into the Company s business travel program wherever possible. The primary focus of the business travel program is to educate associates on the ways they can make smarter choices when traveling and to travel as safely as possible all while staying in line with the overall Corporate Social Responsibility goals for the organization. Program Highlights Avis Budget Carbon Offset Program To further advance Wyndham Worldwide s commitment to an environmentally friendly Business Travel program, in 2014, the Company initiated a carbon offset program through its partnership with Avis Budget Group. The program, implemented in conjunction with NextEra, allows for the complete offset of all carbon emissions associated with Avis Budget rentals. It is anticipated that Wyndham will offset approximately 900 metric tons of carbon per year while investing in domestic wind and solar projects. Amazingly through sourcing negotiations this partnership added no cost to the daily rental prices of the vehicle, making a win-win-win for people, planet and profit. United Airlines Eco-Skies Carbon Choice Program In 2015, Wyndham Worldwide partnered with United Airlines to reduce carbon emissions associated with corporate air travel. The Eco-Skies Carbon Choice program enables the airline s corporate customers to track and offset the emissions related to business travel. Through this program, United provides customized enterprise-level carbon emissions reports and can purchase carbon offsets to counterbalance the emissions associated with air travel. Wyndham has decided to offset the carbon with the Red Hills Wind Farm in Oklahoma. Scope 3 Emissions Starting in 2010, Wyndham Worldwide officially began reporting Scope 3 business travel. Emissions related to business travel include air travel and vehicle usage such as car service and rentals. In 2014, emissions related to business travel were 10,374 MTCO2e, which is a reduction of 23% compared to 2010 on a per-associate basis. Carbon Offsets accounted for 5,200 MTCO2e reducing the total carbon impact from corporate business travel to 5,130 MTCO2e or 62% on a per employee basis. All carbon emissions data including business travel data are third party verified and assured by Deloitte and Touche (D&T) annually. Wyndham Receives 2016 Sustainability Outstanding Achievement Award Wyndham Worldwide has partnered with Avis Budget Group to offset GHG emissions related to business travel vehicle rentals. Wyndham Worldwide was recently awarded by the Global Business Travel Association as a winner in the Travel Buyer category. Our Company received this accolade for having a leading and innovative best in class business travel/ sustainability program, which has helped reduce our business travel carbon footprint. Wyndham Worldwide exemplifies how, in a relatively short time, a company can build and develop a travel sustainability program, which delivers significant carbon emission reductions and cost savings through effective reporting, communications and employee engagement. The GBTA award showcases our Company s commitment to making a difference not just for today, but for future generations and understanding the impact we have on the environment and how we can use our business travel to really impact change. - JOANNE MCNELLIS, DIRECTOR, GLOBAL TRAVEL, WYNDHAM WORLDWIDE PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 32
INTEGRATED SUSTAINABLE THINKING INNOVATION Expedition Zero (CO2 Neutral by 2030) With its Expedition Zero program to become carbon neutral and partnerships to protect local wetlands and biodiversity, our Innovation brand exemplifies that the type of commitment to both sustainability and innovation that we aim to foster across our portfolio of properties. Started in 1954, Landal GreenParks is one of Wyndham Worldwide s oldest brands in Europe with more than 70 holiday parks and more than 12,000 bungalows, villas and apartments in the Netherlands, Germany, Belgium, Austria, Switzerland, Hungary and the Czech Republic. Sustainability is a key element of Landal s mission for its bungalows and more than 20 parks have been certified with a Green Key through the Foundation for Environmental Education. The ambition for 2015 is the certification of 40 parks with all parks completing certification in 2016. With the certification more energy-efficient lighting, water reducing solutions and waste management systems are being introduced. The business also has partnered with Natuurmonumenten to support maintaining the biodiversity of more than 250,000 acres of wetlands and estates. In 2014 Landal started Expedition Zero, a program to become a fully sustainable organization with the goal of being CO2 neutral by 2030. The objective of this project is to increase guests enjoyment while decreasing the negative impact on the environment to zero by 2030. Keeping in line with this target Landal embarked on several sustainability-focused projects in 2015. Green Key Certification Landal GreenParks began certifying its parks through Green Key in 2012 and by the end of 2015 40 out of 75 were fully certified. This prestigious certification represents a commitment by the park to adhere to the strict criteria as stipulated by the Foundation for Environmental Education (FEE). In Germany, Austria, Czech Republic and Belgium Landal has been a launching partner for Green Key among holiday parks. Recently certified, Landal Miggelenberg in Hoenderloo received a Golden Green Key for its efforts in the field of sustainability. The following measures were undertaken for each bungalow to ensure they aligned with the highest eco-standards. Green button, allowing guests to centrally switch off all electronics Motion sensors for lights Mechanical ventilation hydro sensors 100 percent LED lighting Three bird baths per property Collected rainwater used for irrigation Water saving showerheads and taps Forest Stewardship Council (FSC)-approved pine siding Encouraging Electric Mobility To decrease their carbon footprint from a mobility perspective, Landal Green Parks has begun replacing traditional cars used for cleaning and property maintenance with electric vehicles. In 2015 they had 92 electric vehicles as well as 40 e-vehicle charging stations to encourage guest usage. -19, -20, -21 PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 33
INTEGRATED SUSTAINABLE THINKING INNOVATION 2015 Portfolio and Program Highlights Wyndham Ocean Boulevard Wins Platinum RCI Green Award In May 2016, RCI announced the winners of its annual RCI Green Award, recognizing Wyndham Ocean Boulevard with the highest honor. Now in its fifth year, the RCI Green Award program recognizes the most environmentally-conscious resorts within the company s exchange network. The application process includes a thorough audit of green practices with stiff competition among the many properties that admirably implement sustainable business initiatives. Applicants for the RCI Green Award were evaluated on innovations in energy and water conservation, waste management, community outreach and environmental management. The evaluation process, winner selection and verification system was completed by third-party ecocertification expert GreenCircle Certified, LLC. The Platinum RCI Green Award winner, Wyndham Ocean Boulevard, exemplifies exceptional sustainability practices throughout its operations in Myrtle Beach, South Carolina. The property uses an energy management system in all tower units to turn off the HVAC system when the balcony door is ajar, uses variable frequency drives on its pools, lazy rivers and parking garage exhaust fans and uses LED lighting in its parking garages and picnic area. To promote sustainable transportation, the property offers two electric vehicle charging stations, and resort management teams use bicycles to commute to and from work. The Resort at Seaside in Seaside, Oregon, took home the Gold RCI Green Award for its impressive sustainability and community outreach programs. The resort installed UV reflective window film in all units to significantly reduce energy consumption and also implemented a food donation program so that guests can donate unused food to the South Community Food Bank at the end of their vacation. The Silver RCI Green Award went to the Wyndham Vacation Resorts Great Smokies Lodge in Sevierville, Tennessee. The property sponsors and participates in several community initiatives, including road and river clean ups, a Pollinator Garden Planting initiative and various community and fundraising events. On property, the environmentally-friendly practices even extend to the golf course where the golf carts are solar powered. Wyndham Green Fund Wyndham Worldwide has developed an innovative model to finance energy efficiency projects called the Wyndham Green Fund. We benchmarked industry best practices that have been used for more than 20 years by energy services companies (ESCOs), which implement energy efficiency programs at no additional cost to their customers. In order to implement this type of program in the hospitality industry, we had to customize a solution that would work with our managed timeshare facilities. The program has rolled out solar installations in Hawaii and California. Ramada Ajman Properties Launch Cooking Oil Conversion Project Ramada Hotel & Suites Ajman and Ramada Beach Hotel Ajman teamed up with Provectus Middle East to launch an initiative to collect used cooking oil and convert it into biodiesel. Alongside their other environmental projects, the hotels aim to step up their green practices and further sustainability in the hospitality industry. Founded on the agreement, the two hotels will provide access to Provectus to collect cooking oil waste generated from the hotels kitchen, restaurants and staff accommodation, which will then be processed to 100% biodegradable biodiesel. The two properties currently generate 4,350 gallons of cooking waste in a year, but through this initiative they will be able to produce clean diesel and cut down on carbon dioxide emissions by utilizing materials that were initially considered waste. Additionally, this initiative will contribute to the properties landfill diversion rate. Three years after launching their zero landfill initiative the percentage of waste these hotels send to the landfill is down to 10% of their baseline amount. PLANET PROTECTING NATURAL CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 34
COUNT ON ME! Count On Me! Culture 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 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. Count On Me! is our service promise in which each associate aims to be responsive, be respectful and deliver great experiences to our customers, guests, partners and communities, as well as to each other. What makes Count On Me! such a unique initiative is that it is proactive; it means going the extra mile, giving 110% and showing others that they are able to count on you for a helping hand. Believing that a successful culture drives growth and shareholder value, the Company is built on a strong foundation of its Core Values, including: Act with integrity in all that we do Respect everyone, everywhere Provide individual opportunity and accountability Improve our customers lives Support our communities As a hospitality and leisure-based company, we are committed to helping our customers make great memories at exciting and wonderful destinations around the world. With a commitment and focus on our people, culture, and shareholders, the Company has successfully established itself as the market leader in each of our business segments. Associates consistently convey through direct feedback and in opinion surveys that they are highly engaged in our values and our mission citing the commitment observed from the CEO s office down to the frontlines of the organization. Wyndham Worldwide employs approximately 37,700 people in more than 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, personal and professional growth, and diversity and leadership development. Approximately 4% of our associates are subject to collective bargaining agreements governing their employment with the Company. -11 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 35
COUNT ON ME! Chairman s Count On Me! Award The Company s ongoing growth and success is the result of the collective dedication and outstanding work by teams across the Company. Every year Chairman and CEO Stephen P. Holmes honors associates whose efforts stand out as the year s best examples of our commitment to delivering outstanding Count On Me! service with the Chairman s Count On Me! Award. The Chairman s Count On Me! Award has been given to associates since 2009. It is referred to as the most prestigious associate recognition at Wyndham Worldwide and signifies the pinnacle of achievement. The award is presented annually to associates who perform above and beyond their normal job requirements and expectations, support the Company s strategies, specifically delivering Count On Me! service, and who are dedicated to upholding the Company s core values. The Chairman s Count On Me! Award is the premier recognition for individuals demonstrating our core service attributes of being Responsive, Respectful and Delivering a Great Experience. There is one winner selected from each business unit. Chairman s Award for Innovation Wyndham Worldwide defines innovation as change with a positive effect. Born out of his desire to foster critical thinking and to enhance the associate and business experience, Chairman and CEO Stephen P. Holmes created the Chairman s Award for Innovation. The award recognizes one associate or team from across the Company for forward thinking, creativity, and risk taking that has produced proven results in our processes, products, or experiences we provide. Since 2011, The Chairman s Award for Innovation has recognized the best examples of collaboration and creative ideas from across Wyndham Worldwide. The set of nominees each year has shown a positive impact to our business as demonstrated by their passion and courage to explore new ideas. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 36
COUNT ON ME! Annual Associate Opinion Survey We consistently look for ways to ensure that our associates have opportunities to share their thoughts, ideas, concerns, and questions with us. As a hospitality company, whether associate feedback is broadly gathered through a formal process such as our Associate Opinion Survey (AOS), or shared in meaningful, more personal conversations as part of our open-door policy, we believe that listening is a critical part of our Count On Me! service promise. Listening to associate concerns, questions and suggestions helps make Wyndham Worldwide a great place to work, which leads to associates delivering an even greater experience for our guests. There are many ways we encourage associates to ask questions and share their feedback with each other, and with senior leadership. Utilizing the Great Places to Work Framework In 2013, we partnered with independent consulting firm Great Places to Work to administer our Associate Opinion Survey (AOS) and analyze the results, enabling us to move to a Trust Index. As we communicated to associates, this would help us identify more specific, measurable ways to continue to foster a culture of trust, and to continue to make Wyndham Worldwide a great place to work for everyone. As associate feedback on previous surveys has helped us make positive changes, 82% of respondents shared that taking everything into account, they would say this is a great place to work. Additional results include: 88% of respondents shared that when joining the Company, you are made to feel welcome (compared to 93% for the hospitality industry benchmark) 83% of respondents shared that they want to work here for a long time (compared to 82% for the hospitality industry benchmark) 82% of respondents shared that when they look at what we accomplish, they feel a sense of pride (compared to 89% for the hospitality industry benchmark). Our leadership and the Company as a whole take the AOS seriously, and regularly reference its results throughout the year, both formally and informally. In addition, at the Company-wide, business unit, and department levels, results are analyzed and shared so that special workgroups can focus on making suggestions that will directly address some of the findings. Ultimately, our leaders are committed to listening to our associates feedback about Wyndham Worldwide, and proud to partner directly with associates to continue to grow and build upon our Count On Me! culture. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 37
LEADERSHIP DEVELOPMENT AND ORGANIZATIONAL CAPABILITY At Wyndham Worldwide, we recognize that the resources we invest into developing leaders today can significantly impact our future culture. Central to our management approach is a focus on: Personalized goal setting through our SuccessMatters program, Professional development planning and bi-annual performance reviews, and Providing a series of unique learning and leadership development curriculum opportunities across business units through our Wyndham Worldwide University platform. We believe in our unique competitive strength and our ability to deliver outstanding performance in the world and in local marketplaces. The development of our associates is key to our long-term success and a top priority of the company. To this end, Wyndham Worldwide continues to evolve and change to effectively stay competitive in developing leaders and organizational capability. Performance Feedback At Wyndham Worldwide, we understand the importance of accurately assessing performance and we recognize that the resources we invest into developing leaders today can positively impact our future business. Central to our management approach is a focus on: Personalized goal setting and performance feedback Professional development planning Unique learning and leadership development opportunities All associates within the organization, including the executive team, participate in a formal performance review process. Associates are evaluated on the achievement of the business goals and proficiency in organizational core competencies. A traditional balanced score card is used to align results to Wyndham Worldwide goals: people, customer service, financial results and business processes. We complete talent reviews to ensure the right development opportunities are available to increase skills in a given discipline, to ensure a critical pipeline of talent as well as align required skills and talent to the business needs. The performance review processes include an assessment of competency proficiency levels and the creation of development plans based on opportunities. Wyndham Worldwide University Wyndham Worldwide University is the over-arching program for all professional development opportunities. Once competency proficiency levels are assessed and development plan created associates can tap into the network of Experience, Exposure and Education opportunities offered within Wyndham Worldwide University. Some of these internal and external development programs and activities include: -LA11 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 38
LEADERSHIP DEVELOPMENT AND ORGANIZATIONAL CAPABILITY Continuing Education and Tuition Reimbursement Returning to the classroom can be difficult, so for our associates who are interested in continuing their education, we make it easier for them to grow professionally while balancing other aspects of their life. We offer flexible schedules as well as generous tuition and certification assistance. In addition to the flexibility associates have to further their education at most accredited schools, Wyndham Worldwide University offers associates access to online degree programs, evening and on-site classes at our offices and discounts on tuition and fees through our partnerships with Fairleigh Dickinson University, DeVry University/Keller Graduate School of Management and the University of Phoenix. Nearly 300 associates are currently engaged with our partner schools and Wyndham Worldwide has invested nearly $1 million in tuition assistance in 2015. Learning from Leaders Once a month, all associates have the opportunity to hear from Wyndham Worldwide senior leaders regarding topics such as change management, relationship building, effective leadership and financial acumen. These online and instructor-led sessions are up to one-hour in length in an intimate setting. Leading Your Organization The main objective of this one-week customized program is to provide associates with the opportunity to build leadership capabilities needed to support the Wyndham Worldwide Strategic Focus. A fully integrated set of competencies and skills is 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 over 35 colleagues across the organization. To date, more than 400 leaders 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. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 39
LEADERSHIP DEVELOPMENT AND ORGANIZATIONAL CAPABILITY The Leadership Experience at West Point Wyndham Worldwide believes that 21st Century leaders need to operate dynamically in both global and personal spheres of influence. Being current in trends and theories is as important as applying them to one s own personal style of leadership. The Leadership Experience leverages respected academic institutions to host an annual program focused on the leadership skills necessary to drive business results for years to come. In 2015, The Leadership Experience took place on the campus of the United States Military Academy (West Point). Thirty-five global leaders representing multiple functions spent 5 days honing their leadership skills in both experiential learning and applied academic sessions under the guidance of retired senior leaders from the United States Army. Mentorship Mentoring leverages the Exposure component of Wyndham Worldwide s development framework (Experience, Exposure, and Education) by providing associates the opportunity to learn from the unique combination of background, experiences, perspectives and expertise of another individual within the organization over a period of time. This includes forms of 1:1 mentoring such as traditional, peer and reverse mentoring, and group mentoring. Learning On Demand Wyndham Worldwide recognizes that associates may have different preferred learning styles and that not everybody will have the desire, or opportunity, to participate in in-person development activities. To ensure that development is as far reaching as possible, associates have access to internally developed and off-theshelf E-Learning content through our Learning Management System. Topics for these programs range from general business acumen and communication skills to topics such as Count On Me!, and compliance training on topics such as Global Anti-Corruption and Managing and Protecting Information PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 40
DIVERSITY Diversity Is at the Heart of What We Do Travel enables people of varied nationalities and backgrounds to meet and experience different cultures, raising our collective understanding and appreciation for each other around the world. For Wyndham Worldwide, diversity isn t a program it s simply how we do business. With nearly 37,700 associates in hundreds of locations across the globe, we ve learned there isn t a onesize-fits-all approach when it comes to nurturing a culture of diversity. We emphasize personal connections, individual opportunities, and intentional investments. As we grow and expand in markets around the world, we approach diversity at the local level. Whether its recruiting talent, ensuring all our associates feel included and empowered, meeting the needs of all travelers or operating with small business and/or diverse suppliers we appreciate everyone s needs may be different and we measure our success one person and one community at a time. Wyndham s Diversity & Inclusion Strategy Our strategy is built on our Core Values, specifically, Respect Everyone, Everywhere. From there, we focus on our associate s engagement, the connection to our business as well as the communities in which we live and work. This allows us to align our strategic focus areas around the Marketplace and Talent Management. Additionally, we have: A comprehensive strategy to attract, select, develop, retain best in class talent. A Diversity and Inclusion Curriculum with course offerings for the entire workforce including, the Wyndham Worldwide Diversity and Inclusion Leadership Workshop Micro-inequities, Is It Bias, and the Diversity Walk. A host of Associate Business Groups all designed for associates to engage in the business expansion process, networking, personal development and affiliation with colleagues across the business. A Global Supplier Diversity Program to increase the Company s network of minority vendors and other diversely-owned suppliers. A cradle-to-grave approach to investing in our future workforce through local programs as well as a US-based national scholarship program for supporting minority and economically disadvantaged students. Partnerships with external organizations including those in support of at-risk youth where we provide mentoring and guidance to the future workforce. Leadership Commitment Recognizing the value to its business growth in maintaining vibrantly diverse workforce, policies, and supply chain, Wyndham Worldwide has the support of its board of directors in advancing diversity as part of the Company s overall business strategy, and implements the vision through a global diversity council which is chaired by the CEO and a Supplier Diversity Council to monitor and enhance our collective spend. The Council exists to further Wyndham s diversity and inclusion goals, endorse key initiatives and provide strategic direction to our business units which in turn support their local diversity councils. Council members are encouraged to seek out best practices internally and externally and cultivate partnerships with third party organizations as a way to enhance their knowledge and bring that back to the council for Wyndham s benefit. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 41
DIVERSITY Supplier Diversity program Wyndham Worldwide has a highly developed supplier diversity program, including strong efforts to engage suppliers owned by veterans, Latinos, African-Americans, women, the LGBT community, people with disabilities, and other businesses owned by traditionally underrepresented groups. By maintaining a diverse supply chain, Wyndham Worldwide is able to build on a rich foundation of perspectives and opportunities that benefit our company and the experience we provide our customers. The Company s strong tier-1 and tier-2 programs, as well as extensive training and mentoring for diverse suppliers, helps ensure that supplier diversity is thoroughly integrated into its overall business strategy. Diversity Talent Strategy We see a diverse workforce as a competitive advantage, focusing strategically on talent to ensure that we attract, retain and develop our people. Recent diversity and inclusion-led initiatives with a focus on talent have included a comprehensive disability assessment across the organization, recruiting for our Wynternship program, partnerships with diverse leadership organizations and mentor circles for various groups such as African Americans, Hispanics, and Women in Information Technology. Associate Business Groups Associate Business Groups (ABG) are comprised of groups of associates situated around the globe with common interests and areas of passion, with more than 4,800 registered members. These groups include: Fuerte! Members of this group support individual growth and business goals through initiatives that promote the richness of the Hispanic culture. The group seeks to create value by attracting, developing and retaining associates, while providing educational awareness and enrichment to the Hispanic/Latino communities. SPECTRUM Members of this group engage in and support business matters of interest to the African American/Black Community. I-VOW Members of Impacting Veteran Opportunities at Wyndham Worldwide are focused on having Wyndham Worldwide recognized for its support of veterans with work opportunities and community projects. Women on Their Way (WOTW) The largest and longest standing of the Wyndham Worldwide ABGs, WOTW is committed to supporting the development and advancement of women across the organization. Current locations include the United Kingdom, Ireland, Singapore and various cities in the United States. WYNPRIDE This ABG is committed to leveraging the passion of our associates to support the lesbian, gay, bisexual and transgender (LGBT) community; to develop policies and procedures with their needs in mind, to have a positive impact on the Wyndham Worldwide business goals and to influence the industry as a whole. NEXT Members of this group are working together to capitalize on the unique perspectives, insights and ideas of each generation to contribute to the Company s strategic business objectives. Recognition and Diverse Partnerships Wyndham Worldwide has been named among the DiversityInc Top 50 Companies for Diversity four years in a row, and also among the Top Companies for Diversity Councils, Global Diversity and Supplier Diversity. Wyndham has also been recognized by the Corporate Equality Index (HRC), Hispanic Association on Corporate Responsibility, named a Top 50 Company for Latinas by LATINA Style, and among FORTUNE s World s Most Admired Companies. Additionally, the Company maintains strong partnerships with organizations such as the National Diversity Council, Hispanic Association on Corporate Responsibility, National Society of Hispanic MBAs and National Association of Black, Hispanic, Asian and Women MBAs. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 42
BE WELL At Wyndham Worldwide, we fully support and encourage our associates goals and efforts to embrace a healthy lifestyle. We believe that health and wellness invokes both professional and personal productivity, achievement and fulfillment. These programs are all branded under the Be Well Embracing a Healthy Lifestyle program. Wyndham Worldwide s Be Well program has been recognized by the U.S. Department of Health and Human Services in conjunction with the White House Business Council and the National Business Group. Additionally, Wyndham Worldwide has been a recipient of the National Business Group on Health Award for Innovation in Reducing Health Care Disparities. Acknowledged for our commitment and forwardthinking leadership in reducing health care disparities in the workplace, we were one of eight companies, and the only hospitality company, invited to a roundtable discussion at the White House. Wyndham Worldwide Wellness Councils To provide oversight of our Be Well program, Wyndham Worldwide s Global Wellness Council consists of 50 associates representing all of our business units. They meet on a quarterly basis and help communicate and develop initiatives for each of their respective locations. The Global Wellness Council s mission is to support a culture of wellness and provide opportunities for associates to focus on nutrition, exercise, lifestyle management, physical and emotional wellness, financial health and the quality of the environment in which we work and live. Focusing on Preventive Health Through Be Well Credits Wyndham Worldwide is committed to helping associates and their families achieve their health and wellness goals through initiatives that focus on preventative health. For the third year in a row, associates are incented with lower medical premiums to complete a health assessment, biometric screening and/or annual physical. In 2014, we had 36% of our associates earn a Be Well Credit, and in 2015 we had seen the number increase to 43%. In 2016, our goal is to have 50% of U.S. based associates complete a health assessment, biometric screening and/or annual physical. Supporting The Needs of Our Associates and Their Families Our Be Well programs support the needs of our associates and their families. Eligible dependents of U.S. based associates for medical, dental and vision include lawfully married spouses, state-recognized common-law spouses, spouses under a state recognized civil union, company registered domestic partners, and children under age of 26 including stepchildren, foster children, adopted children and children of a domestic partner relationship. Our Be Well Clinics Wyndham Worldwide currently has four Be Well clinics that are staffed by nurse practitioners. The Be Well Clinics are a big success for our associates at these locations. On average, these four locations treat about 8,500 associates a year. Hypertension programs have been a main focus for the clinics and have reduced risks of associates that participate. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 43
BE WELL On-site Health Coaches In 2015, Wyndham Worldwide placed an on-site health coach at three of our locations in Washington, Tennessee and Missouri. The on-site health coaches create a culture of health and wellness at their respective locations. They motivate positive changes through awareness and education. The program was such a success we are looking to put a health coach in other locations soon. We ve received positive associate feedback, which has included the following: The ability to meet with a health coach one on one for 8 weeks reminds me why the company I work for is such a great place. It takes an employer of choice to offer such a great benefit to their staff and leadership. A Wyndham Worldwide Associate Our Wellness Programs and Benefits Additional wellness programs and benefits include the following: Health Fairs and Biometric Screenings: Health Fairs are held annually at larger office sites. During these health fairs biometric screenings are offered, which capture vital health statistics that our associates can share with their doctors. 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: In the on-going quest to offer a variety of programs that support wellness goals, Wyndham Worldwide offers the Be Well Lifestyle Management Program which is free to all associates and designed to provide support for stress management, weight management and smoking cessation. Chair Massage 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. No-Cost On-site 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. Screenings: A variety of screenings are regularly offered at larger locations and include testing for blood pressure, bone density, cholesterol, glucose and skin analysis. Lactation, Meditation and Prayer Rooms. No Cost Flu Shots. PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 44
BE WELL Global Be Well Day Each year, Wyndham Worldwide denotes a day company wide to celebrate wellness. On May 20, 2015 all offices across The Company celebrated wellness with different activities at their locations. In Parsippany, NJ they had a senior leadership walk around the campus. In our Canadian office, a health fair was held that included local wellness vendors. At our United States locations approximately 11,000 apples were delivered to our associates as a healthy snack. In Portugal, associates sampled detox juices while a local nutritionist spoke about performing healthy habits and creating a personal action plan. In Latin America, RCI s team offered a Yoga Cloud personal app featuring videos that associates could do at home or in the office. 2015 Community Events A team of seven associates participated in the River to Sea 91 mile relay race to raise awareness and funds for Jersey Battered Women s Services. This event was so successful in 2016 that Wyndham will sponsor three teams to run in the relay race. The WHG EMEA region hosted the inaugural Be Well Cycling Tour which took place in the United Arab Emirates (UAE) with more than 400 participants. The cyclists had the option to participate in four different routes of varying lengths from all over the UAE, making the event accessible to cyclists of all ages and skill levels. The routes all arrived at the Hamdan Sports Complex in Dubai for a Be Well Festival to celebrate with family and friends. The Be Well Community Garden made regular donations to the Interfaith Food Pantry in Morris Plains, NJ throughout the year, totaling 150 pounds of fresh produce donated. The harvests consisted of basil, radishes, wax beans, romaine lettuce, Dutch corn, tomatoes, cilantro and peppers. On September 12, the Hawthorn Salt Lake City team was a Volunteer Sponsor for the 2015 Revel Big Cottonwood Marathon and Half Marathon. General Manager-Brenna Jackson, and Director of Sales- Bonnie Larsen, first got involved with the marathon last year, whose course ran right in front of the hotel property. This year, the hotel was sold out, with over 80 rooms sold to runners. Additionally, the Hawthorn team started off the day at 4 a.m. giving out breakfast to-go-bags, filled with energizing foods and wished the runners the best of luck. Later, many members of the Hawthorn SLC team and Kirk Hart, Regional VP, set up an aid station, sponsored by the property. Located at Station L, just two miles from the finish line, the Hawthorn team handed out over 6,000 cups of water and PowerAde. The team members hydrated and cheered on the runners, who were so close to the finish. Rolando Murillo & Jamie Blea, WHG, participated in the half marathon, representing the Hawthorn SLC property and BeWell. Looking Ahead We are proud of past accomplishments with our Be Well program and aim to further expand the program s reach and impact. As such, we have identified a series of future opportunities, which include: Bringing Wellness on-site to additional locations Guiding the evolution of our Be Well program Reviewing aggregate claim data at each location to determine the needs of each location Implementing specific, location-based programs based on key findings PEOPLE ENHANCING HUMAN CAPITAL Be Well may have started as a health program, but in the past six years, has quickly become a part of our culture. It s now just a part of who we are as a company, and with the support of our executive leadership, has enabled Be Well to continue growing and delivering great results for our associates as well as the Company s bottom line. - BILL SKRZAT, SENIOR VICE PRESIDENT, COMPENSATION, BENEFITS, AND HRMS Wyndham Worldwide Corporate Social Responsibility Report 45
WYNDHAM PHILANTHROPY Wyndham Worldwide serves millions of guests every year, providing memorable vacation experiences in some of the world s most beautiful destinations. Supporting those communities across the globe in which we work and live is a core value at Wyndham Worldwide and is best reflected through the Wyndham Worldwide Charitable Foundation. With a focus on improving the lives of children, Wyndham Worldwide Charitable Foundation supports signature charities, as well as numerous not- for-profit organizations on the local, national and global level. The Company s philanthropic goals are supported through in-kind donations, volunteer hours and by raising awareness and funds for organizations related to its mission. Wyndham s philanthropy captures the passion and commitment of Wyndham Worldwide associates, leadership and business partners to make lasting, meaningful contributions in the communities where we operate, enabling the Company to deliver on its core values and bring to life its Count On Me! service culture to our customers and communities around the world. Our program s mission is to improve the lives of future generations globally focusing on education, wellness, and conservation. Reflecting Wyndham Worldwide s Culture of Giving and Service through our Foundation Wyndham Worldwide Charitable Foundation is a 501(c)3 organization that has become a highly visible and critical component of our culture. The Foundation is dedicated to supporting organizations with similar values which include enriching the lives of children around the world. Wyndham Worldwide is committed to impacting the lives of 1 million people by 2025 Wyndham Worldwide s 2015 Charitable Giving Wyndham Worldwide Philanthropic Donations 2015 Wyndham Worldwide Charitable Foundation $1,834,152 In-Kind Giving (Wyndham Rewards Points, Resort Certificates, Arbor Day Lied Lodge, Orlando Step up for Students, Give Kids the World) $3,020,928 Associate workplace Giving (Payroll Deduction Program, Associate Match, Wish Day) $1,084,000 Other Charitable Giving $1,280,112 Total Donations $7,219,192 Save The Children Global Partnership In 2015 we donated over $250,000 that will help transform over 7,500 classrooms with learning materials, reaching over 250,000 students globally. Save The Children s mission is to invest in childhood everyday, in times of crisis and for the future. Wyndham Rewards and Resort points program has donated over 8.3 million points. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 46
WYNDHAM PHILANTHROPY Christel House International Our ties to Christel House were established by Christel DeHaan, who co-founded RCI in 1974. After creating the largest timeshare exchange company in the world, she went on to establish Christel House International in 1998. We strongly believe in the mission of Christel House International, and take great pride in knowing that through our support, we are helping to transform the lives of deserving children around the world. Christel House works with more than 4,000 poverty-stricken children, going far beyond supplying basic survival needs. They give children health care, educational opportunities, positive role models, job placement assistance and community outreach programs. The Christel House goal is to mold these children into selfsufficient, contributing members of society. Christel House and Wyndham Worldwide share the belief that progress is measured one child at a time. Associates contribute year round to the Christel House mission through fundraisers, donations and volunteer hours. Wyndham Championship In 2007, Wyndham Worldwide became the title sponsor of the Wyndham Championship, an annual golf tournament on the PGA Tour. The tournament was founded in 1938 as the Greater Greensboro Open, and has been played there for its entire history. It is the final stop on the PGA Tour s FedEx Cup regular season, and it takes place at Sedgefield Country Club in Greensboro, North Carolina. The Wyndham Championship has been creating significant charitable impact throughout the local community of Greensboro since the tournament was founded. Committed to supporting Wyndham s mission to enrich the lives of disadvantaged children, the Championship has continued to remain a venue for reinforcing the importance of community involvement and through the Birdies Fore Backpacks program donated over $130,000 to fight childhood food insecurity in the Piedmont Triad. Donations totaling $10,000 feed 50 children for an entire school year. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 47
CHARITABLE DONATION COMMUNITY IMPACT REPORT GREENSBORO, NORTH CAROLINA The Wyndham Worldwide Charitable Foundation's focus is to enrich the lives of future generations around the world in areas of education, wellness and conservation. This commitment has extended to the Wyndham Championship, where philanthropy is a central focus through charitable donations, events and spectator participation. Since 2014, donated over $300,000 to the local Greensboro area food banks to support families in need. BIRDIES FORE BACKPACKS CHARITIES FORSYTH BACKPACK PROGRAM The grant was used to: Provide 22,848 nutritious meals to 1,143 students in 19 schools in Forsyth County over Spring Break and Memorial Day weekend. HIGH POINT UNITED WAY BACKPACK PROGRAM The grant was used to: Increase the total number of students served to 510 each weekend. BACKPACK BEGINNINGS (GUILFORD COUNTY) The grant was used to: Provide 26,000 meals to 167 students this school year. Guilford County is ranked #1 in the country for food insecurity and 67% of the children in the school system are low income. OUT OF THE GARDEN PROJECT The grant was used to: Provide nearly 300,000 meals Provide nearly 300,000 meals for 3,900 families. for 3,900 families. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 48
BRENNER S CHILDREN S HOSPITAL BRENNER S CHILDREN S HOSPITAL The grant was used to: The grant was used to: Create a music therapy room at Brenner s Children s Create music therapy room at Brenner s Children s Hospital, benefitting over 166,000 patients annually. Hospital, benefitting over patients annually. DOVE HOUSE CHILDREN S ADVOCACY CENTER DOVE HOUSE CHILDREN S ADVOCACY CENTER The The grant grant was was used used to: to: Support the investigation, prosecution, and therapy/follow-up of Support the investigation, prosecution, and therapy/follow-up of reported child sexual assault cases that occur in Iredell and Alexander reported child sexual assault cases that occur in Iredell and Alexander counties in North Carolina. counties in North Carolina. In 2015 Dove House had 216 reported cases of child abuse and In 2015 Dove House had 216 reported cases of child abuse and provided services to 722 primary/ secondary victims of sexual abuse. provided services to 722 primary/ secondary victims of sexual abuse. FAMILY FAMILY SERVICE SERVICE OF OF PIEDMONT PIEDMONT The The grant grant was was used used to to support support the the family family services services program program which which resulted resulted in: in: 91% of of women women in in the the program program returning returning to to a non-violent non-violent living living environment. environment. 91% 94% 94% of of families families in in the the program program are are paying paying bills bills on on time time Greater Greensboro Statistics The The Piedmont Triad is is the #1 market in in the the U.S. in in which people struggle to to get food.* 1 in in 4 children in in North Carolina are food insecure on a regular basis.* 20.6% of Greensboro is in poverty - 1 in every 5 residents* *2015 Gallup Poll *2015 Gallup Poll *2014 American Hunger Study, http://ncfoodbanks.org/huger-in-north-carolina/ *2014 American Hunger Study, http://ncfoodbanks.org/huger-in-north-carolina/ *2015 State of the City Report conducted by UNC at Greensboro, http://www.greensboropartnership.com/sites/default/files/stateofcity15.pdf *2015 State of the City Report conducted by UNC at Greensboro, http://www.greensboropartnership.com/sites/default/files/stateofcity15.pdf -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 49
COMMUNITY PROGRAMS Following are highlights of some of our programs that engaged our associates in 2015: Big Brothers Big Sisters: Wyndham Worldwide and Big Brothers Big Sisters of Morris, Bergen, Passaic & Sussex celebrated the first group of Littles to complete a 13-week mentoring program in the spring. By welcoming 18 children to the program, our partnership allowed BBBS to reduce its waiting list of more than 50 children. Some had been waiting a year to receive a mentor. The after-school program gives 10- and 11-year-old fifth-graders from Morristown, N.J., one-to-one relationships with a mentor who can offer personal attention, role modeling and friendship. Jersey Battered Women s Services: The Company has been a corporate partner with JBWS for more than 10 years. Corporate teambuilding initiatives also support our partnerships. Associates decorate and fill backpacks for JBWS children. Our efforts have come full circle, in that one child, living in a JBWS shelter, is also a Little in our Big Brother Big Sister program. The child goes to school with one of our backpacks and then comes to our corporate headquarters for mentoring. KIND (Kids in Need of Defense): The Company is a strong supporter of KIND (Kids in Need of Defense). Being in the U.S. legally is life-changing for the kids helped through KIND. We started working with the organization in 2011, providing pro bono legal counsel to unaccompanied refugee and immigrant children in the U.S. Since then, we have taken on additional cases, emerging as one of KIND s most committed corporate partners. We support KIND s goals through in-kind donations, volunteer hours and by raising awareness and funds for organizations related to its mission. Operation Shoebox: WVO-Parsippany associates gathered their unused Halloween candy and shipped the sweet treats to our U.S. troops overseas with the help of the organization, Operation Shoebox. This organization sends care packages along with hand-written notes to soldiers worldwide and at home to remind them that we are thankful for their service and we are here to help bring them the feeling of being back home with their families, by sending a variety of care packages. The WVO team sent more than 20 pounds of candy, and one associate s children even donated their entire candy bags collected at the Halloween celebration at the Parsippany Campus. The appreciation did not go unheard; the associates recently received Thank You notes from the soldiers that received the candy. Christel House Week: For one week in September, Wyndham Destination Network associates held their annual week of giving in which associates team up to host creative fundraising activities. The week featured many exciting activities and events including crowd favorites such as the Treat Trolley, Bagel Buggy, Jeans Days, Penny Wars and a Pop Culture tournament. Wrapping up the week was the Silent Auction which had associates placing bids on gift baskets, autographed sports memorabilia and fantastic Wyndham accommodations, with all proceeds going to Christel House. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 50
COMMUNITY PROGRAMS Engaging Our Associates Through Community Development Because the many charitable organizations we support and partner with are dear to our hearts, in addition to providing support through fund-raising, our associates give back through volunteer programs and initiatives. We give eligible associates one paid day off per year, a Wish Day, to volunteer at a recognized charitable or 501(c)3 organization. In 2015, 3,733 associates participated in Wish Day, generating 17,564 volunteer hours, equivalent to more than $624,000 dollars invested in volunteer time. The Company also offers both company match and payroll deduction for associates interested in supporting recognized charitable or 501(c)3 organizations. Additionally, Wyndham Worldwide offers Community Support & Responsiveness programs to allow associates to give back to communities in need after a natural disaster. Special Olympics New Jersey Wyndham Worldwide has partnered with Special Olympics New Jersey since 2011. We have participated in a number of events that include the annual Snow Bowl and the New Jersey Summer Games. The Snow Bowl is an annual event sponsored by Wyndham Worldwide in partnership with Special Olympics New Jersey and the New York Giants. This event brings together nearly 2,000 players on 144 teams, including one team made up of Special Olympics NJ athletes for a 6 on 6 flag football tournament fundraiser held at Giant s Stadium. All proceeds go to Special Olympics NJ. In 2015, the Company participated in the Olympic Village, a new aspect of the Summer Games designed to give the athletes something fun to do during the down time from competing. In the Village, Wyndham volunteers were able to interact with the athletes and their families while handing out candy, assisting with recreational activities, or just chatting about the day s competitions. By creating a casual environment in the Olympic Village, associates and athletes were able to break down barriers and connect on a personal level, leading to a meaningful experience for everyone involved. WVO Food Donation Program Capitalizing on a way to reduce waste and aid the community, all Wyndham Vacation Ownership properties have a Wishes by Wyndham Food Donation box where guests can put any unwanted non-perishable items they have left over after their vacation. This program is both simple and successful, with the quantity of donations increasing each year since its inception in 2012. Wyndham Food Donation Program in WVO (TOTAL NUMBER OF ITEMS DONATED) 2012 2013 2014 2015 28,742 95,977 104,556 138,506 -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 51
COMMUNITY PROGRAMS RCI Embraces CSR Opportunities in India Under India s New Companies Act of 2013 and Companies (Corporate Social Responsibility Policy) Rules 2014, any company that meets certain financial requirements must develop a Corporate Social Responsibility (CSR) policy, that requires a minimum of 2 percent of its average net profits for the immediate preceding three financial years to be invested in CSR programs. These Companies are also required to report to the government about their projects and the non-governmental organizations must have complied with certain statutory and philanthropic requirements. Companies can direct the funds to a wide spectrum of needs, ranging from programs that combat hunger and poverty to protecting the environment. In the year ending December 31, 2015, RCI India has formed a CSR Committee and working committee that have developed a robust program that focuses on women and children of underprivileged and weaker sections of the society. During the fiscal year of April 1, 2014 to March 31, 2015, RCI India has actively monitored, participated and donated funds to three NGOs. The three programs are highlighted below: Christel House: A program that focuses on helping children break the cycle of poverty through education and training. RCI has focused on educating and providing food for one entire class throughout the year. FAME: The Family Association for Mental Health Everywhere is a program that helps children and young adults with disabilities, such as cerebral palsy and down syndrome, to develop skills/vocational training for employment. VIDYA: A program that helps victimized and abused women. RCI invested in safe transportation of these women to VIDYA centers to learn vocational skills and a car that helps women learn to drive for employment. A key benefit of the program has been the positive impact to the community as well as the participation and engagement of the associates at RCI. Many have participated in voluntary activities with the NGO and have expressed gratitude and appreciation to the Company. Wyndham Vacation Ownership Continues Commitment to Step Up for Students Scholarship Program with $1,000,000 Pledge in 2015 WVO has been a donor and corporate partner with Step Up For Students since 2011, and this most recent pledge brings the Company s total contributions to $3.75 million. Step Up for Students is a nonprofit organization that administers the Florida Tax Credit Scholarship Program, which provides scholarships to qualified low-income families throughout Florida. Scholarships are funded by corporations that receive a dollar-for-dollar tax credit for their contributions. The program will allow recipients to choose between a scholarship to help with private school tuition and fees, or a transportation scholarship to attend an out-ofdistrict public school. Approximately 69,000 children are using the income-based scholarships this year. Wyndham Vacation Resorts Asia Pacific Raises $66,000 for Children s Charities More than 500 associates in the Wyndham Vacation Resorts Asia Pacific corporate office as well the resorts and sales staff across both Australia and New Zealand participated in a number of fundraising activities to raise money for children s charities. Some of the activities included a fitness challenge, healthy-cooking competition and running in the Gold Coast Marathon. The funds raised were distributed among several charities including Make-A-Wish Foundation, SIDS and Kids, Leukemia Foundation and the Starlight Children s Foundation. The effort is in part of the Company s philanthropic program which has pledged donations to charities that provide emotional and financial support to sick children and their families. More than $66,000 was raised in 2015 for children s charities. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 52
COMMUNITY PROGRAMS Wyndham Worldwide and Wyndham Hotel Group Donate Clean Water Filtration Systems in China In September 2015, Wyndham Worldwide and Wyndham Hotel Group China installed two clean water filtration systems in two schools in Guizhou, a rural area of China, where over 650 children were impacted. The installations were done as part of the Clean Water Program, an initiative that works to bring water purifiers to areas in China that do not have access to clean water. The Clean Water Project is a program developed through a partnership with Coca-Cola and One Foundation. Wyndham joined this program in 2014. Since its inception in 2012 this project has installed more than 300 water purifiers in 283 schools in 27 provinces and given over 100,000 children access to pure, healthy water for the first time. Wyndham Hotel Group China joined the Clean Water Project in November 2014 and will continue its commitment moving forward. By way of fundraising and donations it hopes to do its part to relieve the pressing problem of drinking water safety in rural schools. Currently it is giving guests the option to donate to the program when they check into a hotel. It hopes to continue to roll out the program to include more hotels and be able to install at least two more filtration systems in the coming year. Our goal is to install 25 water systems and provide in-kind support by 2025. -EC7 PEOPLE ENHANCING HUMAN CAPITAL Wyndham Worldwide Corporate Social Responsibility Report 53
ETHICS AND HUMAN RIGHTS 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. Enforcing Our Principles for Ethical Conduct Our approach to ethical practices begins with our Chairman and CEO, and cascades through 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 Worldwide and its associates. Wyndham Worldwide maintains ongoing accountability processes and procedures to monitor and report on compliance within these directives. In addition, stakeholders such as franchisees, resort developers and supply chain vendors are also required to operate in a manner that is compliant with all applicable laws and are subject to certain operating standards. The Business Principles set forth policies and procedures concerning all compliance and ethics for all associates, including directors, to carry out these commitments. Topics range from Associate 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, Wyndham Worldwide has formalized its training schedule for associates on ethical topics. For more information, please see our Compliance and Ethics Training Plan and our Business Principles document at www.wyndhamworldwide.com In 2015, 80% of US based associates completed their compliance requirements online. Wyndham Worldwide Named as a 2015 World s Most Ethical Company The Ethisphere Institute announced Wyndham Worldwide as one of the 2015 World s Most Ethical Companies. The Ethisphere Institute is the global leader in defining and advancing the standards of ethical business practices and this list honors superior achievement in transparency, integrity, ethics and compliance. Based on its Count On Me! service philosophy, integrity and accountability are part of the culture at Wyndham Worldwide, which maintains a strong focus on compliance and ethical practices and policies. Human Rights Program Timeline: 2007 Wyndham Worldwide Board publishes Human Rights Policy Statement 2011 Signed the Tourism Child-Protection Code of Conduct (The Code) with ECPACT, UNICEF and UNWTO 2012 ECPACT and Polaris implemented Human Rights training at WHG Global Conference 2012 Partnership with Sabre launched the Passport to Freedom program which is the first-ever educational scholarship for human trafficking survivors 2013 Wyndham Hotel Group Global Conference Training on Human Trafficking 2015 Wyndham Hotel Group Global Conference Training on Human Trafficking 2016 Polaris training and rolled out global sessions to properties in U.S., Asia Pacific, Europe, Middle East, Africa and Latin America complying warp the U.K. Modern Day Slavery Act -15, -56 GOAL: Track 100% of our owned and managed hotels in human rights by 2018 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 54
ETHICS AND HUMAN RIGHTS Working To Protect Human Rights and Eliminate Human Trafficking Wyndham Worldwide is committed to protecting human rights within our sphere of influence. To view Wyndham Worldwide s full Human Rights Policy Statement click here. In 2007, the Wyndham Worldwide Board of Directors adopted a Human Rights Policy Statement. Our position on human rights reflects the Company s commitment to conduct business in a manner consistent with these principles, and to protect human rights within the Company s sphere of influence. Wyndham Worldwide supports the United Nations Universal Declaration of Human Rights, and the Company endorses the Guiding Principles on Business and Human Rights: Implementing the United Nations Protect, Respect, and Remedy Framework. We are currently working to align our current policies and procedures with the framework. We strongly believe collaboration throughout the international travel and tourism industry, in conjunction with law enforcement and other agencies at all levels, plays a critical role in increasing awareness and prevention around the world. Wyndham Worldwide will continue to work alongside organizations and law enforcement to bring an end to this practice and target individuals who engage in this horrific and tragic practice. The Company is a member of the International Tourism Partnership (ITP), and supported the formation of the ITP s working group on combating human trafficking, which specifically endorses the UN Guiding Principles. Taking a Stand Against the Exploitation of Children Wyndham Worldwide condemns all forms of exploitation of children. We do not hire child labor, and we support the elimination of exploitive child labor. The Company also is supportive of laws duly enacted to prevent and punish the crime of sexual exploitation of children, and cooperates with law enforcement authorities to address any such instances. In 2011, Wyndham Worldwide became one of the largest U.S. hospitality companies to take a stand against the commercial sexual exploitation of children by signing the Tourism Child-Protection Code of Conduct (The Code). The Code, an industry-driven responsible tourism initiative in collaboration with ECPAT International, funded by UNICEF International and supported by The World Tourism Organization (UNWTO), specifically focuses on protecting children from sexual exploitation in the travel and tourism industries. As a subscriber to The Code, Wyndham Worldwide is enhancing its policies condemning child trafficking and providing training to help our associates, as well as our managed and franchised properties, identify and report potential trafficking activities. We are also raising awareness among our business partners and customers by including information about the issue and The Code through our website and meetings, and by annually reporting on our progress. Additionally, Wyndham Worldwide proudly supports the Polaris Project, a leading organization in the United States combating all forms of human trafficking. With Polaris we have offered ongoing training to our hotels. Accomplishments: Donated over 2.2 million Wyndham Reward points to Polaris for use in aiding victims of Human Trafficking All managed hotels received human trafficking kits. These were also made available to franchisees Over 950 people have been trained and franchisee views of the program materials equal 2,119 Rolled out Supplier Code of Conduct which includes updates to vendor contracts and agreements and standards of ethics, child and forced labor provisions In partnership with American Hotel & Lodging Educational Institute and Polaris, launched the industry Human Trafficking Video used by the entire industry of over 25,000 hotels -15, -56 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 55
ETHICS AND HUMAN RIGHTS Training and Educating We also have human rights policies and training programs to educate our associates, and have actively collaborated with ECPAT in reviewing and enhancing our training, policies, and procedures to best adhere to the intention and spirit of The Code. Wyndham Worldwide facilitated the development of a training video on child sex trafficking between ECPAT and the AHLA Educational Institute. Today, this video is used by major hotel chains across the industry. We also partnered with the Polaris Project to develop and deliver training materials for our associates and on a voluntary basis, to our hotel franchises. As we further develop our programs, we are sharing our experience with colleagues at other hospitality companies to help our industry work more closely together in combating child and human trafficking. For more information on Polaris Project and the International Tourism Partnership, please visit www.polarisproject.org and www.tourismpartnership.org. For more information on The Code and ECPAT USA, please visit www.ecpatusa.org. -15, -24, -56 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 56
MANAGING RISK To build better communities and support our ability to execute on our mission and vision, risk management procedures are critical. Our risk management practices are designed to address key economic, social and environmental topics that directly impact our guests, associates and communities where we operate. How We Manage Risks Our approach to risk management is collaborative, and is enhanced through Board oversight and engagement with the finance, legal, information technology, and risk management departments. It emphasizes continuous improvement and iterations of our business interruption, business continuity and crisis management disaster recovery plans. For each business unit, we consider sensitivity to distinct financial, business, operational, environmental and compliance risk profiles based on the nature of its operations. Each business unit has an Executive Steering Committee with cross-functional senior executive representation that works collaboratively with the Vice President of Corporate Security to identify critical locations and functions that require business recovery solutions in the event of a disruption. Wyndham Worldwide conducts an annual water risk assessment for owned, managed and leased properties. Diving Deeper to Address Local Water Risks In 2015, we completed our third annual water risk assessment from owned, managed and leased properties in our portfolio using the World Resource Institute s Aqueduct tool and the World Wildlife Fund s Water Risk Filter. Based on the location of our properties, we considered a series of risks, which included water scarcity, water stress, flood occurrence, pollution and overall water risk, across thousands of properties in our portfolio. Based on the findings of our water assessment, 26 properties in the United States, Canada, Puerto Rico, Virgin Islands, Thailand and Singapore were prioritized due to overall water risk and/or degree of water scarcity. In the United States, droughts in California continued to be a concern. Additionally, some key growth markets most notably China- are subject to water risk. The results of the water risk assessment were presented to our Wyndham Green Council with the objective to develop targeted programs to address communities and properties with the greatest exposure to water risks. At Wyndham Worldwide, the corporate security team works closely with key business unit stakeholders to design and implement policies and processes in order to most efficiently safeguard and protect the company s employees, facilities, assets, intellectual property and business operations. As an organization, we take both internal and external risks seriously and therefore strive to create the most comfortable environment for all associates and guests. - JACK SHAUGHNESSY, VICE PRESIDENT, CORPORATE SECURITY SERVICES -EN9 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 57
MANAGING RISK Monitoring Guest Satisfaction and Experience Wyndham Worldwide actively measures and manages customer satisfaction across its business units by developing customized programs by market, such as loyalty and customer service programs, to strengthen relationships with customers. Each business has a dedicated Senior Vice President tasked with implementing, managing and overseeing customer response and satisfaction programs. Our Customer Care departments utilize an enterprise feedback management software solution that offers a comprehensive platform for improving front line customer interactions, speeding case resolution and generating feedback on how we can do better as an organization. Additionally, customer service concerns are monitored and managed via emails generated from our websites, social media channels on Twitter and Facebook, guests staying at our resorts, calls into our contact centers, and surveys. For on-site guest complaints, our standard is a 15 minute or less response time. Additionally, each business unit actively measures customer satisfaction to identify areas for continuous improvement: Wyndham Vacation Ownership measures satisfaction by conducting surveys for key customer facing contacts in the areas of Sales, Resorts and Contact Centers. Surveys, which are based on a scale from 1-10 where 7-8 are satisfied and 9-10 are extremely satisfied, are monitored weekly, monthly and quarterly; and associates and leaders are held accountable for performance. Wyndham Destination Network utilizes a post-transaction after-call satisfaction survey (scale from 1-10) and achieved its 2015 target score at 9.5 out of 10. Wyndham Destination Network also uses net promoter score and an online customer feedback tool, powered by OpinionLab, to monitor the online member experience. Wyndham Hotel Group utilizes a new program called WynReview which is based on a scale of 1-5 and works hand in hand with TripAdvisor. In addition the hotel group also reviews the JD Power & Associates Customer Satisfaction Index scores for key brands. In 2015, Wingate by Wyndham was ranked highest in guest satisfaction in the midscale segment by J.D. Power in the 2015 North America Hotel Guest Satisfaction Index Study. In addition to responsiveness to customer service requests and concerns, protecting customer data privacy has been prioritized as an imperative for our Company. To enforce Wyndham Worldwide s privacy policy, we train local managers across the Company and actively monitor a series of key performance indicators including the number of privacy incidents and hotline inquiries per quarter and type of privacy incident per category. Having identified training and education as a critical success factor, we have begun engaging our associates to share best practices across operations through the publication of blog articles and included education on our privacy policy as part of our We Comply Program. -PR5 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 58
PROTECTING THE SAFETY OF OUR ASSOCIATES Protecting Our Associates As our company continues to grow across all business units we too are expanding in order to meet the ever changing needs of the business. In doing so, we have recently consolidated our team into a regionally focused, shared service model which will allow us to effectively respond to the requests of all Wyndham Worldwide stakeholders. It is our priority to maintain and improve a workplace environment that not only protects our associates but our owners, guests and assets too. As the global security landscape continues to evolve, we are always working as a company to enhance services and systems that protect our guests and owners from current threats and future change. By providing on-site security for the vast majority of our properties to technology solutions in the area of alarm monitoring and high tech CCTV that employs both video analytics and live monitoring, our focus has never been more resilient. From mitigating workplace injuries at our managed properties to providing associates training in emergency response when a guest is in need, creating a safe working environment is one of our most important responsibilities as an employer. As such, our management approach is rigorous and both data and processdriven. Wyndham Worldwide utilizes an Occupational Health and Safety Management System to establish and maintain an effective process for implementing safety standards and procedures across all of our business units. To ensure we maintain the highest level of safety awareness, we have a dedicated team that conducts annual health and safety reviews which evaluate the performance of individually owned and operated properties within the areas of regulatory compliance, associate training, emergency preparedness, fire, and life safety. In alignment with our goal to maintain a consistently high standard of safety performance, the Company uses our online incident reporting and loss prevention system (Wynsurance) which enables all business units to identify and track work-related risks and hazards, maintain and manage inspection and subsequent follow ups. Wynsurance allows for proper Occupational Safety and Health Administration record keeping requirements and supports all business units in having a consistent approach for entering and retaining records to include an area to log formal joint management worker health and safety committee minutes. Additionally we also receive independent external verification of our health and safety programs in alignment to applicable U.S. Occupational Safety and Health Administration regulations. Wyndham Worldwide utilizes an Occupational Health and Safety Management System to establish and maintain an effective process for implementing safety standards and procedures across our business units. We also conduct annual safety prevention reviews that evaluate the performance of individually owned and operated properties in the Company s portfolio to inform ongoing refinements to our safety training and other incident-prevention measures, which includes tracking near misses and implementing corrective actions when they occur. PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 59
WYNDHAM WORLDWIDE GREEN SUPPLIERS Wyndham Worldwide relies on strong, collaborative supplier partnerships to provide goods and services to properties around the globe. Our global procurement department, Strategic Sourcing, leads this effort by leveraging the Company s combined purchasing power to negotiate the highest quality products and services at the best possible value. Providing sustainable product and service options is an integral part of the sourcing strategy, and aligns with our strong commitment to sustainability and reducing our carbon footprint. Wyndham Worldwide Corporation demands the highest level of law-abiding and ethical behavior, and we expect the same of our suppliers, worldwide. In all instances we expect adherence to our Core Values in addition to complying with the Wyndham Worldwide Supplier Code of Conduct and all applicable laws and regulations in all locations where they conduct business. Strategic Sourcing Procurement Advisory Council To view Wyndham Worldwide s full Supplier Code of Conduct click here. In pursuit of our goal to become a best-in-class procurement organization, Strategic Sourcing continues to refine and evolve every aspect of how we do business. In late 2010, we created a Procurement Advisory Council as part of that goal, and to represent the collective interests of franchisees. The Advisory Council meets quarterly to review key initiatives, supplier programs, communications tools and to help us achieve our diversity and sustainability initiatives. Comprised of eight Wyndham Worldwide franchise owners and operators, the Council continues to help shape the direction of our program and the value it delivers to franchisees. Environmental, Labor Practices and Human Rights Screening Through our Supplier Code of Conduct, Green Supplier Survey, and Diversity Supplier Survey, we engage and screen our suppliers on human rights, labor and environmental practices. Expectations set forth in our Supplier Code of Conduct include ethical standards, community involvement, environmental protection and respect and dignity for associates. Our Supplier Code of Conduct explicitly prohibits child labor, forced labor, discrimination, corruption and impingements to workers freedom of association. -LA14, -EN32, -HR10 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 60
WYNDHAM WORLDWIDE GREEN SUPPLIERS The Green Supplier Initiative 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. As part of our ongoing commitment to growing our green supply chain, each of our suppliers is required to complete the Wyndham Green Supplier Survey. The survey is composed of more than 40 questions analyzing the environmental practices, policies, tracking, documentation, and reporting for each supplier. Wyndham Worldwide recognizes each supplier as green on the Wyndham Green supplier criteria. Our Green Supplier programs are designed to encourage innovation for competitive differentiation, reduce costs and associated environmental risks within our supply chain, enhance our brand and foster collaboration and engagement with our suppliers, franchisees and other stakeholders. Green Supplier Goals As part of our ongoing commitment to continually grow our green supply chain, 27% of our total $2.2 billion spend in 2015 was with suppliers who met the Wyndham Green Supplier criteria. Our goal by 2020 is to be at 30%. 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) In 2015, Samsung was the recipient of the Green Supplier of the Year award at the annual Strategic Sourcing Summit. This award recognized Samsung as a premier supplier for its contributions to Wyndham Worldwide s commitment to sustainable programs that deliver economic benefits. In 2015, Samsung helped Wyndham Worldwide: Upgrade over 7,000 LED TVs Recycle over 700 TVs through a customized trade in program Use almost 1900 kwh less wattage at Wyndham properties through LED TV upgrades PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 61
WYNDHAM WORLDWIDE GREEN SUPPLIERS Arbor Day and Wyndham Vacation Ownership program to plant 1 million trees! 2015 Numbers 2015 Wyndham Partnership with the Arbor Day Foundation trees planted pounds of Arbor Day Coffee purchased square feet of rain forest saved partners participated in the Lied Lodge & Conference Center renewal carbonneutral room nights trees planted since April 2011 211 N. 12 th Street. Lincoln, Nebraska 68508. arborday.org PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 62
WYNDHAM WORLDWIDE GREEN SUPPLIERS Through the Wyndham Worldwide Green Supplier Initiative, we believe establishing partnerships with suppliers and vendors that have a similar commitment to sustainability and protecting the environment is a key component to the success of the Supplier Initiative Program. The chart below is a small representation of some of the ongoing partnerships we have and the impact we make on the community. Product Description Metric Regeneration Suiting Green Uniform made from 100% postconsumer waste. Each suit is made out of approximately 25-2 liter plastic bottles. Wyndham Worldwide diverted more than 345,000 water bottles from landfills by purchasing more than 27,615 pieces of eco-friendly apparel. Samsung Electronics Samsung LED hospitality TVs More than 20,000 units purchased by Wyndham saving more than 5 million kwh per year. WynRest Pillows and Mattress Pads Simmons Mattresses/Foundation The production of WynRest products are environmentally sound, fulfilling suitable criteria such as air quality, effluent waste and noise generation. All products are screened for harmful substances to ensure the health of consumers. Suitable recycling methods as well as the natural biodegradability of the products are considered. Bedding products that are individually crafted to help reduce the need for energy-consuming machines in the manufacturing process. More than 5.7 million plastic bottles were used in the manufacturing of nearly 300,000 WynRest/WynDry pillows and mattress pads. Almost 40,000 mattresses were purchased in 2015. To date, Simmons has recycled more than 23 million pounds of materials that otherwise would have ended up in landfills. PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 63
WYNDHAM WORLDWIDE DIVERSITY SUPPLIERS The Supplier Diversity Initiative Diversity lies at the very heart of the Wyndham Worldwide culture. So, it is no surprise that our corporate diversity strategy extends to the suppliers with whom we do business. Since its inception, our Supplier Diversity program continues to grow, earning many distinguished industry recognitions along the way. Our mission, however, remains steadfast: to develop and implement an approach to Supplier Diversity that achieves results and adds value by reducing costs, improving quality and/or increasing revenue through the identification and use of competent diverse suppliers. A proactive business process, our Supplier Diversity initiative seeks to provide equal access to all suppliers for procurement opportunities. These include: African-American, Hispanic-American, Asian-American and Native-American-owned businesses; womenowned businesses; Lesbian, Gay, Bi-Sexual and Transgender (LGBT)-owned businesses; Veteran, Disabled Veteran, and Disabled-owned businesses. Through our Supplier Diversity initiative, we are helping support and encourage minority, women-owned and other diverse businesses in the many communities in which we operate, with every product and service we buy. For example, each towel or sheet we buy from Sobel Linen, a Hispanic-owned business; and, every toaster or coffeemaker we source from Resort Supply, a woman-owned housewares and kitchenware business, puts us one step closer to reaching our diversity goals. In 2015, Wyndham Worldwide achieved a 16.2% diverse spend rate. Supplier Diversity Goals Continue to increase diverse spending across Wyndham Worldwide Include external advocacy groups in our Strategic Sourcing strategy Increase Supplier Diversity awareness corporation-wide Include diverse suppliers in every RFP, where possible Mentor potential and current Wyndham Worldwide diverse suppliers Continue focused outreach to the diverse-supplier community Expand Supplier Diversity internationally Recognize diversity excellence Wyndham Worldwide understands that a critical part of our proactive approach is diverse business community outreach. In that regard, the Company supports and is a proud sponsor and corporate member of the following national and international certifying bodies and diverse business advocacy groups: 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), WEConnect International, United States Hispanic Chamber of Commerce (USHCC), National Hispanic Business Group, and Minority Supplier Development UK and China. We also participate in various supplier development councils at the state and local levels to promote a diverse supplier base, and hold leadership positions in community organizations, including Board seats at the Hispanic Chamber of Commerce in Metro Orlando, Kissimmee/Osceola County Chamber of Commerce, and the Northwest Mountain Minority Suppliers Development Council. -LA14 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 64
WYNDHAM WORLDWIDE DIVERSITY SUPPLIERS Mentoring Supplier Success Providing mentoring and business enrichment opportunities is an aspect of our Supplier Diversity program that makes it truly exceptional. We have a wealth of resources and programs that allow suppliers to build stronger, more profitable companies. Here are a few recent examples: Sponsored Supplier Diversity Series workshops, Tips and Recommendations for Navigating Corporate America as a Diverse Supplier. Sponsored an Asian American supplier s participation at the U.S. Pan Asian American Chamber of Commerce Conference/Expo. Sponsored a scholarship for one of our diverse suppliers to attend the Advanced Management Education Program at Northwestern University s Kellogg School of Management. Sponsored a LGBT supplier at National Gay and Lesbian Chamber of Commerce Conference. Mentored potential diverse suppliers on how to enhance business opportunities with both Wyndham Worldwide and/or other companies. Launched a Supplier Diversity Academy for potential suppliers to familiarize them with the Wyndham Worldwide culture and better understand our sourcing opportunities PROUDLY CARRIES BRANDED PRODUCTS Sobel Linen not only provides high quality bedding and towels to many properties under the Wyndham umbrella - they are also one of our designated diverse suppliers. Wyndham Worldwide s diverse supplier program grew from the Company s core belief that diversity enriches our organization. This value has led to partnerships with a wide variety of suppliers which includes minority-owned businesses, disadvantaged business enterprises, women-owned businesses, LGBT businesses and veteran and/or disabled-owned businesses. Each unique partnership helps to generate fresh ideas and opportunities and builds on the overall strength of the Company. With a certification from the National Minority Supplier Development Council, Sobel Linen brings a wealth of knowledge, experience and perspective to the table as a certified Hispanic-owned business. -LA14 PLACES BUILDING BETTER COMMUNITIES Wyndham Worldwide Corporate Social Responsibility Report 65