Serve360 ESG Report
2021 | 86 pages
Environmental, Social, and Governance Progress at Marriott International SERVE 360 REPORT 2021 Sheraton ® Grand Chicago (Chicago, Illinois, United States)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 2 About This Report This Report reflects information and performance data for fiscal year 2020 unless otherwise indicated. Due to the impacts of COVID-19 on the travel industry and Marriott International, Inc. (“Marriott”), we experienced a sharp decline in hotel occupancy, which is reflected in our economic, social impact, and environmental performance and progress against our Serve 360 Goals. In this Report, we have incorporated data and information from our full portfolio of owned, leased, managed, and franchised hotels, unless otherwise indicated. Financial metrics are reported in U.S. dollars. Please also note that information contained herein does not constitute any guarantees or promises with regard to business activities, performance, or future results. This Report is also aligned with the Global Reporting Initiative (GRI) Standards and includes recommendations from the Sustainability Accounting Standards Board (SASB) and the Taskforce on Climate-related Financial Disclosures (TCFD) frameworks. Please note: Images in this Report may reflect protocols prior to COVID-19 safety procedures. Sheraton ® Waikiki (Honolulu, Hawaii, United States) This Report contains certain forward-looking statements based on Marriott management's current assumptions and expectations, including statements regarding our environmental, social, and governance (ESG) targets, goals, commitments, and programs and other business plans, initiatives, and objectives. These statements are typically accompanied by the words “aim,” “hope,” “believe,” “estimate,” “plan,” “aspire,” or similar words. All such statements are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Our actual future results, including the achievement of our targets, goals, or commitments, could differ materially from our projected results as the result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors. Such risks, uncertainties and factors include the risk factors discussed in Item 1A of our most recent annual report on Form 10-K and in our subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. We urge you to consider all of the risks, uncertainties, and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this Report. Marriott cannot assure you that the results reflected or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects. The forward-looking statements in this Report are made as of the date of this Report, unless otherwise indicated, and we undertake no obligation to update these forward- looking statements to reflect subsequent events or circumstances. Forward-looking Statements Published in September 2021
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 3 A Message From Our Chief Executive Officer A Tribute to Arne Sorenson Company and Report Overview Serve 360: Doing Good in Every Direction United Nations Sustainable Development Goals 2025 Sustainability and Social Impact Goals How We Execute Globally Stakeholder Engagement Governance Board Oversight Business Ethics Data Privacy and Cybersecurity Public Policy Success Is Never Final Appendices Performance Tables GRI Index SASB Disclosures TCFD Report Assurance Statement Sustain Responsible Operations Sustainable Buildings and Adaptiv e Reuse Energy and Emissions Water Waste Responsible Sourcing Empower Through Opportunity Global Diversity, Equity, and Inclusion People with Disabilities Veterans Refugees Youth Welcome All and Advance Human Right s Human Rights Peace & Cultural Understanding 4 5 6 8 9 10 12 13 53 54 55 56 57 58 59 59 61 77 79 85 48 49 52 35 36 43 44 45 46 23 24 25 28 30 32 Contents 14 15 17 18 19 21 Nurture Our World COVID-19 Support Community Volunteerism and In vestments Vitality of Children Disaster Relief Natural Capital
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 4 A Message From Our Chief Executive Officer Every year, Marriott produces a Serve 360 Report on its progress in advancing sustainability and driving social impact around the world – efforts to which we are deeply committed. This Report fosters transparency, both internally and externally, and importantly gives us a chance to reflect on incredible accomplishments, remaining challenges, and opportunities to do more in our ever-changing world. Times, arguably, have never been more complex. 2020 was a year for the history books. The COVID-19 global pandemic is the most difficult challenge our industry has ever faced, and it continues to have tremendous impact on our associates, owners and franchisees, vendors, guests, and the world at large. Many people faced the disease at home, and our hearts go out to those who lost loved ones. In the midst of this global crisis, a long overdue conversation on racism surfaced in the United States and reverberated around the world. Arne Sorenson, our beloved President and CEO and an icon in hospitality, valiantly led us as we navigated these turbulent times and then, sadly, passed away in February 2021. Shortly afterward, I was named CEO. It is during gut-wrenching times like these that organizations are stress-tested – and strong values and culture become the life vests that help keep us afloat. For Marriott, this meant relying on the core values that have guided us since our founding in 1927: Put People First , Pursue Excellence , Embrace Change , Act With Integrity , and even during unprecedented challenges, find the drive to Serve Our World . COVID-19 Response We are immensely proud of how our associates have responded to the global pandemic by asking how they could help. Around the world, our hotels donated food, cleaning supplies, and other essential items to frontline workers and local families and community groups in need. One remarkable group of associates in China donated their time and talents to help manufacture masks at a factory desperately in need of workers. Other hotels offered unused event space for socially distanced blood drives and their empty storage space to food bank partners. Each community had a different story, but the outcome was the same – serving our world. On the corporate level, together with American Express and JPMorgan Chase, Marriott committed to provide $10 million worth of free hotel stays to frontline healthcare workers. Every effort made a difference, and continues to, as we collectively push through the crisis. Diversity, Equity, and Inclusion Despite the crisis around the world, we were able to accelerate our diversity, equity, and inclusion strategy in 2020 – engaging our associates in “TakeCare Community Talks” and through our Diversity Ownership Initiative introducing more business owners to Marriott who are women or people of color. Most recently, we announced we are accelerating our goal to achieve global gender parity in company leadership to 2023 from 2025. We also set a goal to have people of color make up at least 25% of U.S. company leadership. These are some of the numerous examples that you will learn about in this Report, which contributed to Marriott’s recognition as the #1 company for diversity and inclusion across industries on the 2020 DiversityInc Top 50 Companies for Diversity list. Protecting the Earth With most of the world focused on the pandemic response, we knew we also needed to make strides to protect the Earth. We understand action is needed and that businesses have a large role to play in this global effort. Marriott remains committed to doing our part to combat climate change. In 2021, we will submit our commitment to setting a science-based target to the Science Based Target initiative (SBTi). In addition to reducing our environmental footprint, protecting and rejuvenating forests, oceans, and other ecosystems is a central part of Marriott’s sustainability strategy. Marriott is a founding member of the Evergreen Alliance, which has committed to support the planting of 100 million trees by 2022. We are also working to protect mangroves, rainforests, coral reefs, and aquatic ecosystems across the globe. I encourage you to read about our progress in the pages that follow. Meeting Our Goals In our Report, we also share our progress toward Marriott’s 2025 Sustainability and Social Impact Goals. We first set these goals a few years ago when, of course, we had no idea a global pandemic was on the horizon. We recognize that there is still much work to be done to meet some of these goals. We remain steadfastly committed to our goals, because they guide our efforts to “do good in every direction” through our Serve 360 platform. In Closing We want to thank our associates, guests, owners, franchisees, and all others who have supported us and helped us to maintain our sustainability and social impact initiatives. It is true that we are a global company – but we should never lose sight of the fact that each of our more than 7,600 properties and the amazing associates who execute our service culture are a part of their local communities and, each and every day, they are doing their part to serve our world. I remain optimistic about the global recovery, and I look forward to continuing the tremendous sustainability and social impact work we started years ago. Stay well and best wishes, Anthony Capuano Chief Executive Officer Marriott International
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 5 ESEG PROAR TMS ORINOL A Tribute to Arne Sorenson Arne M. Sorenson | 1958–2021 In 2021, Arne Sorenson tragically passed away at the age of 62 from pancreatic cancer. Arne’s passing was a tremendous loss. From 2012-2021, Arne served as President and Chief Executive Officer of Marriott International – becoming the first person outside of the Marriott family to lead the company. During Arne’s tenure, Marriott grew to be the largest hospitality company in the world. But for those who knew him, what was even more remarkable was quite simply what a wonderful human being Arne was. Arne’s presence continues to be felt across Marriott, and our Serve 360 platform is a direct reflection of the culture that he advanced during his tenure as Chief Executive Officer. Arne’s personal passion for protecting the environment, promoting inclusion, and advocating for human rights created the imprints for all the stories and strategies that you will learn about in this Report. While Arne is no longer with us, he will not be forgotten. Our deep bench of leaders is equally committed to these important initiatives and continued progress. We are proud to pay tribute to Arne as we continue to advance the Serve 360 platform in the years to come. Following Arne’s passing, The J. Willard and Alice S. Marriott Foundation announced the creation of the Marriott-Sorenson Center for Hospitality Leadership at Howard University – one of the nation’s leading historically Black colleges and universities located in the city of Marriott’s founding. To support the Center, Marriott has created the Arne M. Sorenson Hospitality Fund, which will be dedicated to helping build diverse leadership talent in the industry Arne loved. We can think of no better way to honor Arne’s legacy.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 6 Company and Report Overview Twenty-nine out of our 30 leading brands participate in our company’s award-winning loyalty program, Marriott Bonvoy ® . As of year-end 2020, Marriott Bonvoy had over 147 million members. 30 BRANDS 2,149 COMPANYOPERATED PROPERTIES* 5,402 FRANCHISED PROPERTIES 1,423,044 ROOMS 91 TIMESHARES 7,642 PROPERTIES * Company-operated properties include managed, owned, and leased hotels, and home and co ndominium communities for which we manage the related owners’ associations. Metrics do not include Homes & Villas by Marriott International ® . Our Global Reach Marriott International, Inc. (“Marriott”) is a worldwide operator, franchisor, and licensor of hotel, residential, and timeshare properties. At year-end 2020, Marriott’s portfolio included 2,149 company-operated properties, 5,402 franchised properties, and 91 timeshares in 133 countries and territories. Our Workforce At year-end 2020, Marriott managed over 321,000 associates globally at managed and owned/ leased properties, customer care centers, and above-property operations. These numbers include approximately 121,000 associates (54% women) employed by Marriott and over 200,000 associates who are employed by our hotel owners (which is common outside the U.S.). The numbers do not include hotel personnel at franchise hotels, who are employed by our franchisees or other management companies hired by our franchisees. Within our managed workforce, we continually strive to build our internal pipeline of talent, helping associates develop the knowledge and skills they need to build lifelong careers within our company. In addition to maintaining fair employment principles, we also support associate wellbeing through our signature TakeCare culture. TakeCare focuses on three distinct employee pillars that are fundamental to living a happy and meaningful life: Opportunity, Community, and Purpose. 2020 Workforce Metrics For additional information on Marriott’s workforce metrics, please refer to the Global Diversity, Equity, and Inclusion section of the 2021 Serve 360 Report on page 36. * Includes associates at Marriott managed hotels outside the U .S. who are owner employees. ** Global Ex ecutives are defined as VP and above roles. *** Includes associates employed at headquarters, corporate offices, CECs, and managed and ow ned/ leased hotels. 2020 Global Wo rkforce * 2020 U. S. Workforce *** 321,000 ASSOCIATES 98,000 ASSOCIATES 85% Non-Management 15% Management 83% Non-Management 17% Management 56% Men 44% Women 50% Women 44% Women 56% Men 50% Men 46% Men 54% Women 45% Men 55% Women CEO Direct Reports Global Executives** U.S. Managers 85% Full-T ime 15% Part-T ime 13% People of Color
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 7 Our Guests Day in and day out, we work to generate superior guest satisfaction and enable more memorable stays at our properties. In 2020, we responded quickly and with flexibility during the COVID-19 pandemic to meet the needs of our guests by launching new programs, such as Work Anywhere with Marriott Bonvoy,™ and new Marriott web content, focused on providing current hotel and travel information regarding COVID-19. Among our many efforts, Marriott continues to develop the technology to deliver immersive, personalized experiences to our guests. We remain focused on growing engagement levels with millions of guests by interacting with them through our mobile application and digital guest channels across our hotel portfolio. As we welcome guests back to our hotels, we remain committed to providing a safe environment that aligns with expert protocols to address COVID-19. Our Commitment to Clean is designed to minimize risk and enhance safety, as we aim to monitor and evolve our solutions to ensure a continued focus on the health and safety of our guests and associates. Awards and Recognitions Company and Report Overview 65.4% of respondents rated their overall experience at least nine out of 10 *. Marriott’s 2020 GuestVoice Satisfaction Survey For additional information on our awards and recognitions, please see our Awards and Recognitions webpage. * Approximately one in five queried guests have responded. All brands are represented. #1 on DiversityInc’s 2020 Top 50 Companies for Diversity list 2020 World’s Best Workplaces ™ by Great Place to Work ® Listed on the 2021 Bloomberg Gender-Equality Index Named to the Fortune 100 Best Companies to Work For ® list each year since it launched in 1998 100% Human Rights Campaign ® Corporate Equality* score for the past eight years 2021 inductee into the DiversityInc Hall of Fame PEOPLE Magazine's Top 50 Companies that Care ® list Named one of America’s Most Responsible Companies by Newsweek Earned top score on the Disability Equality Index (DEI)
Associates at the JW Marriott ® Hotel Bangkok (Bangkok, Thailand) participate in the hotel’s reopening ceremony 2021 SERVE 360 REPORT Inspired by our core values to Serve Our World and Put People First , our sustainability and social impact platform, Serve 360: Doing Good in Every Direction, guides our efforts to make a sustainable and positive impact wherever we do business. SERVE 360
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 9 United Nations Sustainable Development Goals Through Marriott’s Serve 360 platform, we believe we can play a meaningful role to support the United Nations Sustainable Development Goals (SDGs), which are global goals for the year 2030. Guided by four coordinates – each with dedicated focus areas, Marriott actively executes on compelling, impactful initiatives around the world to drive positive change that supports critical SDGs. Welcome All and Advance Human Rights With the goal of creating a safe, welcoming world for all, we rally for pro-travel policies and support programs that allow people to experience and understand other cultures. We work with leading nonprofit organizations to educate, advocate for, and respect human rights throughout and beyond our business. Empower Through Opportunity We partner with leading nonprofits to ensure workplace readiness and access to opportunity to our business, including our supply chain, focusing on youth, diverse populations, women, people with disabilities, veterans, and refugees. Nurture Our World To support the resiliency and sustainable development of the communities where we do business, we invest in the vitality of their children and natural resources, as well as deliver aid and support, especially in times of need. Sustain Responsible Operations While integrating sustainability across our value chain and mitigating climate-related risk, we are working to reduce our environmental impacts, build and operate sustainable hotels, and source responsibly. The numbered icons (below) represent relevant UN Sustainable Development Goals.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 10 2025 Sustainability and Social Impact Goals 15 million volunteer hours BEHIND SCHEDULE 5.5+ million * associate volunteer hours contributed since 2016 50% of volunteer hours will serve children and youth ON TRACK 32.6% of volunteer hours have served children and youth since 2016 50% of volunteer activities will be skills-based BEHIND SCHEDULE 29.2% of volunteer activities were skills-based since 2017 15% water intensity reduction** BEHIND SCHEDULE 38% increase from 2016 baseline** 30% carbon intensity reduction** ON TRACK 32% reduction from 2016 baseline** 45% waste-to-landfill (and 50% food waste) reduction BEHIND SCHEDULE Engaged with World Wildlife Fund (WWF) and hospitality industry members to develop a waste tracking and reporting methodology 30% renewable electricity BEHIND SCHEDULE Sourced 0.8% of our electricity consumption from renewable energy 100% of hotels will be certified to a recognized sustainability standard BEHIND SCHEDULE 32% of properties certified to a recognized sustainability standard 650 LEED ® , BREEAM ® , or Estidama certified or registered hotels BEHIND SCHEDULE 245 hotels certified to or pursuing LEED ® , BREEAM ® , or Estidama certification 250 adaptive reuse projects AHEAD OF SCHEDULE 184 open adaptive reuse hotels Nurture Our World Serve 360 Coordinates 2025 Sustainability and Social Impact Goals Status 2020 Progress Sustain Responsible Operations * This is a dynamic number affected by internal and external circumstances. W e will continue our efforts to progress toward this goal with increased emphasis on volunteerism programs. ** Due to the impacts of CO VID-19 on our company, including decreased occupancy, we experienced an increase in our water intensity and decrease in our carbon intensity metrics in 2020.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 11 ESG PROGRESS AT MARRIOTT INTERNATIONAL → 11 Empower Through Opportunity Welcome All and Advance Human Rights 95% responsible sourcing in our top 10 priority categories BEHIND SCHEDULE Assessed environmental and social business aspects of approximately 100 existing suppliers Locally source 50% of all produce, in aggregate (measured by total spend) BEHIND SCHEDULE Developing companywide local sourcing guidance Top 10 furniture, fixtures, and equipment (FF&E) product categories sourced are in the top tier of the MindClick Sustainability Assessment Program (MSAP) for Marriott ON TRACK 38% of the products evaluated scored in the top tier “Leader” category $35 million* invested to develop hospitality skills and opportunity among diverse, at-risk, and underserved communities ON TRACK $8+ million invested since 2016 Gender representation parity for global leadership** ON TRACK Women represented 44% of Marriott's global executives at year end 2020 Increase the representation of people of color in executive positions in the United States to 25% ON TRACK People of color represented 20.5% of U.S. executive positions at year end 2020 100% of on-property associates completing human rights training ON TRACK Nearly 825,000 associates trained on human trafficking awareness since 2016 Enhance or embed human rights criteria in our recruitment and sourcing policies and work with our industry to address human rights risks in the construction phase ON TRACK 5,000+ associates completed procurement training 91 contracts negotiated and signed by Marriott’s central procurement group included human rights criteria $500,000 toward partnerships that drive, evaluate, and elevate travel and tourism’s role in cultural understanding ON TRACK Identified recipients of U.S. Institute of Peace’s Youth Peacebuilding Fund Serve 360 Coordinates 2025 Sustainability and Social Impact Goals Status 2020 Progress Sustain Responsible Operations A full list of Marriott’s Sustainability and Social Impact Goals can be found on our Serve 360 microsite . * In 2019 , we achieved our goal to invest $5 million and set a new 2025 goal of $35M. ** In 2021, Marriott announced the acceleration of this goal, and aims to achieve gender represe ntation parity for global leadership by 2023 – two years early. 2025 Sustainability and Social Impact Goals
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 12 How We Execute Globally Serve 360 Governing Bodies SERVE 360 EXECUTIVE LEADERSHIP COUNCIL The Serve 360 Executive Leadership Council is comprised of Continent Presidents and C-level executives representing each discipline and global division. n T ypically meets 2x annually n R eviews progress toward the Serve 360 goals and discusses Serve 360-related investment decisions and recommendations n Pr ovides updates to the Inclusion and Social Impact Committee of the Board of Directors SERVE 360 ADVISORY COUNCIL The Serve 360 Advisory Council consists of direct reports of C-level executive leaders and one level below, representing each discipline and global division. n T ypically meets 4x annually n Assesses Ser ve 360 goal performance, provides updates on regional and discipline initiatives, and develops recommendations for the Serve 360 Executive Leadership Council n De velops regional and global Serve 360 goal scorecards OWNER ADVISORY COUNCILS Owner Advisory Councils or Committees represent the voice of the ownership/franchise/management company community and provide input, feedback, and advice. Each continent determines the most appropriate way to discuss owner-relevant initiatives, collaboration opportunities, and overall progress and learnings around sustainability and social impact. SERVE 360 REGIONAL COUNCILS AND LEADERS Regional Serve 360 Leaders assist in pulling through the company’s sustainability and social impact strategy at the regional level. Additionally, several regions incorporate Serve 360 Regional Councils in order to better address the company’s risks and opportunities locally, and drive progress toward their respective Serve 360 regional goals. SERVE 360 CHAMPIONS Serve 360 Champions are passionate individuals or teams volunteering to be the face and energy of Serve 360 on and above property. At managed hotels, Serve 360 Champion responsibilities are included as part of the TakeCare Champion role, forming a powerful network where best practices and lessons learned can be shared. n Rally f ellow associates by organizing events, educating, and collaborating with on-property departments n R eport and share best practices to achieve the Serve 360 goals n In 2020, the TakeCare Champion network was over 12,000 members strong Board and Enterprise Level Oversight At the Board level, a dedicated Inclusion & Social Impact Committee oversees, encourages, and evaluates efforts undertaken by the company to address environmental, social, and governance (ESG) issues, including efforts to promote associate wellbeing and inclusion; promote and leverage a diverse ownership, customer, and vendor base; reduce our environmental impact; and promote positive social impact in the communities we serve. The Inclusion & Social Impact Committee currently includes 13 company officer/associate members and Marriott's CEO, and is supported by three subcommittees: Inclusive Opportunity, Environmental and Social Impact, and Governance. At the management level, our Serve 360 platform is guided by the various governing bodies, which each maintain their own priorities and objectives to make progress toward our companywide goals.These Councils and Champions are integral in executing on our strategy globally. Cascading from our Board of Directors, CEO, and executive team to associates working at hotels across our 30 brands, a series of complementary councils, committees, teams, and Serve 360 Regional Leaders provide structure and oversight to support our 2025 Sustainability and Social Impact Goals. * Content presented on page 12 represents metrics and information as of September 2021. Below: Protea Hotel Johannesburg Wanderers (Johannesburg, South Africa)
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 13 Stakeholder Engagement Stakeholder Engagement and COVID-19 Due to the COVID-19 pandemic, many of our signature sustainability programs were modified, paused, or revised. However, our aim to reduce our environmental footprint and have a positive, sustainable impact wherever we do business remains as strong as ever. Our sustainability brand standards remain in effect and, as business conditions allow, we are continuing to embed sustainability into our operations. We continue to work with our stakeholders, including The Alliance and WTTC, to ensure sustainability is prioritized throughout the hospitality industry so that we can recover. ASSOCIATES Marriott believes in the power of associates to shape our future. Marriott regularly educates and engages associates globally on how they can embed Serve 360 and drive ESG progress. CUSTOMERS Marriott engages with corporate customers to not only support our Serve 360 platform and ESG strategy and goals, but to also provide environmental data, in addition to property sustainability practices, so that customers can achieve their own goals. GUESTS Through Marriott’s GuestVoice Satisfaction Survey, we aim to ensure guests are heard and to generate superior guest satisfaction and more memorable stays at Marriott properties. We also involve our guests through our award-winning loyalty program, Marriott Bonvoy ® , which allows guests to earn and redeem points for staying at one of our properties and provides guests the option to donate their points to a number of our Serve 360 partners. HOTEL OWNERS & FRANCHISEES Through various owner and franchise forums, Marriott encourages participation from our owners, franchisees, and management companies on owner-relevant initiatives, collaboration opportunities, and overall progress and learnings around sustainability and social impact. SUPPLIERS Marriott engages with our suppliers through our sustainable procurement and supplier diversity programs. This includes working with our suppliers to meet our responsible and local sourcing goals, and partnering with minority-, women-, LGBT-, people with disabilities-, and veteran-owned businesses. COMMUNITIES Along with associates, hotels, and Business Councils, Marriott partners with our local communities and community organizations through investment and volunteer activities. We also support communities through our disaster relief program and natural capital investments. INDUSTRY ASSOCIATIONS & NONGOVERNMENTAL ORGANIZATIONS Marriott and our executive team regularly participate with allied trade associations and nongovernmental organizations through leadership roles on boards and executive committees. Marriott executives hold outside leadership roles at the World Economic Forum, the Business Roundtable, the World Travel & Tourism Council (WTTC), the Sustainable Hospitality Alliance (The Alliance), U.S. Council for International Business (USCIB), U.S. Travel Association, U.S. Travel and Tourism Advisory Board, Brand USA, and the American Hotel and Lodging Association (AHLA), including its state-level affiliates. INVESTORS Many investors are interested in how Marriott incorporates ESG initiatives into our business. We participate in select ESG rating agency surveys and often meet with investors to share updates on a variety of ESG related topics. This includes information and data on our Serve 360 platform and progress updates toward our 2025 Serve 360 Goals. As a global travel company with managed and franchised lodging operations, Marriott has a range of stakeholder groups, including associates, customers, guests, investors, hotel owners and franchisees, suppliers, local communities, community organizations, industry associations, governmental and nongovernmental entities, and other business partners. We collaborate with our stakeholders to understand their priorities through global forums and industry associations to develop policies and programs and report on our most shared critical ESG concerns.
2021 SERVE 360 REPORT Marriott Bonvoy ® on Wheels delivered meals to frontline workers and medical professionals at hospitals and COVID-19 Centers across major cities in India NURTURE OUR WORLD
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 15 In Our Communities Rooms for Responders With support from our credit card partners, American Express and JPMorgan Chase, Marriott provided $10 million worth of hotel stays for healthcare professionals leading the fight against COVID-19 in the United States. We also collaborated with the American College of Emergency Physicians and the Emergency Nurses Association to match doctors and nurses with free accommodations at participating hotels. Community Caregiver Program The Community Caregiver Program, available in the United States, Canada, the Caribbean, and Latin America has provided significantly discounted rates at nearly 2,500 hotels for first responders and healthcare professionals who wanted to book rooms at hotels in close proximity to the hospitals where they were working. American Red Cross Hotel Space Donations Due to increased demand for nonprofit services during the COVID-19 pandemic, combined with the difficulty of adhering to social distancing protocols, many nonprofits were in need of additional space to support their operations. In response, Marriott hotels in the U.S. donated available event space to the American Red Cross to host their blood drives, holding nearly 500 blood drives, contributing over 14,000 units of blood. In 2020, Marriott was one of the American Red Cross’ top corporate blood drive sponsors. For Our Associates Health and Wellness Programs At our properties, we implemented rigorous cleaning protocols and safety measures to reduce the transmission of COVID-19. To assist global associates in managing stressful situations, Marriott partnered with meQuilibrium, a science-based resilience training solution, to support the mental wellbeing of our managed associates. Marriott Disaster Relief and TakeCare Relief Funds To provide critical support to our most at-risk associates, the Marriott Disaster Relief Fund (MDRF) was deployed and distributed over $1.45 million of food, medications, hygiene items, and other essential items to associates in 16 markets. The TakeCare Relief Fund also provided $1 million to the Marriott Disaster Relief Fund and more than $250,000 in needs-based individual grants to eligible associates facing financial hardships, including those caused by COVID-19. For Our Guests Commitment to Clean We remain committed to providing our guests with a safe environment that aligns with expert protocols. Consisting of in-house and outside experts in food and water safety, hygiene and infection prevention, and hotel operations, our Marriott Cleanliness Council has redefined our cleaning and safety standards. Marriott Bonvoy’s Giving Platform Marriott Bonvoy ® members have been able to donate loyalty points to relief organizations that are active in COVID-19 response around the world, including the American Red Cross, International Federation of Red Cross and Red Crescent Societies, UNICEF, and World Central Kitchen. Over 75 million points were donated by members in 2020. COVID-19 Support Marriott is proud of our role to support communities, guests, and associates during the unprecedented COVID-19 pandemic. This includes hosting caregivers and donating cooked and pre-packaged meals and critically important supplies, including cleaning products, masks, gloves, antimicrobial wipes, sanitizers, and shower caps for medical and other frontline workers. We have also taken steps to implement powerful programs to support and take care of associates and guests. Right: Associates at the Aloft ® Dubai South (Dubai, United Arab Emirates) prepare meals to donate to those affected by COVID-19
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 16 Juma Reserve, Brazil Marriott supported the Foundation for Amazon Sustainability (FAS) to distribute hygiene products, food baskets, personal protective equipment (PPE), and gasoline, which benefited 44 riverside communities and 500 families in the Juma Reserve. Washington, D.C., U.S. Volunteers from the AC Hotel by Marriott Washington D.C. Downtown packed 10,000 meals with World Central Kitchen at Nationals Park to support their COVID-19 feeding efforts. Playa Conchal, Costa Rica The Westin ® Reserva Conchal partnered with local communities in Guanacaste to build home and community gardens, supporting over 350 families affected by the pandemic. Tokyo, Japan Through a collaboration with Second Harvest, Marriott properties in Tokyo volunteered weekly to pack food for communities in need. This effort resulted in the distribution of over 20 tons of food. Barcelona, Spain Due to the closure of the hotel and to prevent food waste, The Barcelona EDITION ® donated minibar products and drinks and over 350 lbs. (160 kg.) of produce to local organizations to feed the homeless. Maryland, U.S. The Gaylord ® National Resort & Convention Center donated 40,000 square feet (3,716 square meters) of event space for several months to the Capital Area Food Bank, for food storage and packaging operations. Bangkok, Thailand Twenty-five hotels in the Greater Bangkok area collected unused linen to produce 4,800 face masks for donation to the Scholars of Sustenance Foundation (SOS). Cape Town, South Africa Marriott’s regional office in Cape Town donated over 3,000 reusable cloth masks made from repurposed bedsheets to the local community and volunteers. Montreal, QC, Canada The W Montreal provided over 50,000 meals to temporary COVID-19 shelters throughout the city of Montreal. Abuja, Nigeria A team from the Sheraton Abuja Hotel delivered freshly baked loaves of bread to 600 associates living across the city of Abuja as a show of support during the lockdown caused by COVID-19. Cairo, Egypt In collaboration with the Egyptian Blood Bank, the Cairo Marriott Hotel launched a campaign for hotel associates to donate blood, due to the shortage caused by the COVID-19 pandemic. Chicago, IL, U.S. The Chicago Marriott Suites Downers Grove donated 3,000 face masks to Good Samaritan Hospital. Pune, India The JW Marriott Hotel Pune team supported Pune City’s COVID-19 relief efforts by distributing approximately 50,000 care packages of essential grocery and household items to families in need. Jakarta, Indonesia The Indonesia Business Council contributed more than 1,800 volunteer hours to provide Marriott associates that have been impacted by COVID-19 with food and other daily necessities. Brisbane, Australia Associates at the W Brisbane partnered with OzHarvest to donate food and preprepared meals to support the homeless impacted by COVID-19. Our Global COVID-19 Community Response Throughout 2020, Marriott hotels, associates, and guests across the globe came together to take care of their communities in the wake of the COVID-19 pandemic. Here are just a few examples.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 17 * Reported figures include Marriott Corporate Headquarters giving, as well as contributions reported through our properties, oces, and Business Councils. Figures have been adjusted to include Marriott Vacations Worldwide records and associate and guest fundraising for some of our most significant partners, including Children’s Miracle Network Hospitals and UNICEF. 2025 Serve 360 Goals 2020 Progress Community Investments (in 2019)* Associate Volunteerism 5.5M 15M VOLUNTEER HOURS SINCE 2016 INKIND CONTRIBUTIONS TOTAL CASH & INKIND CONTRIBUTIONS 32.6% 50% VOLUNTEER HOURS SERVING CHILDREN AND YOUTH SINCE 2016 CASH CONTRIBUTIONS $27.6M $26.1M $53.7M 29.2% 50% SKILLSBASED VOLUNTEER ACTIVITIES SINCE 2017 OVER ENGAGE. CONTRIBUTE. INSPIRE. The Ritz-Carlton’s social and environmental responsibility program, Community Footprints ® , aligns the brand’s “Ladies and Gentlemen” around the issues that are important to the communities where they operate. The Ritz-Carlton was the first Founding Partner of IMPACT 2030, which was a private sector led initiative founded in collaboration with the United Nations and other global stakeholders, that marshaled corporate volunteering actions to advance the achievement of the UN Sustainable Development Goals. In 2020, associates at The Ritz-Carlton hotels volunteered 49,000+ hours in support of the Community Footprints program. In 2020, Marriott’s Business Councils continued to mobilize and contribute to Marriott’s charitable giving and volunteerism programs. For example, the Qatar Business Council organized a charity bike ride that raised more than $30,000 for the Education Above All Foundation. The United Arab Emirates Business Council organized a clothing donation drive across 22 hotels in the region, which resulted in over 11,000 lbs. (5,041 kg.) of clothing donated to those in need. * R eported figures include Marriott Corporate Headquarters giving, as well as contributions reported through our properties, of - fices, and Business Councils. Figures have been adjusted to include Marriott Vacations Worldwide records and associate and guest fundraising for some of our most significant collaborators, including Children’s Miracle Network Hospitals and UNICEF. ** Donations supported numerous organizations including the American R ed Cross, Hotels for Heroes, World Wildlife Fund, Marriott Disaster Relief Fund, World Central Kitchen, and UNICEF. 104 Business Councils across all continents and brands 97 countries represented 4,900+ hotels represented 1+ million rooms represented $7.76 million* donated through cash contributions $13.4 million* donated through in-kind donations 120+ million** loyalty points donated to support featured Marriott philanthropic causes in 2020 Associate Volunteerism In 2020, Marriott associates contributed over 500,000 volunteer hours across the globe, focusing on environmental and social issues that impact the communities where we do business. Marriott’s Business Councils Comprised of General Managers and other hotel leaders representing managed and franchised properties globally, Marriott’s Business Councils support business strategies and add value to our markets by promoting our core values and culture, participating in government advocacy, and implementing Marriott’s community partnerships and Serve 360 initiatives. Community Investments In 2020, Marriott, along with associates, Business Councils, and guests, continued to support our communities, partners, and philanthropic causes through cash and in-kind donations. Community Volunteerism and Investments Marriott believes in making the communities where we operate better places to live, work, and visit. Even in the midst of a global pandemic, Marriott associates around the world continued to show their commitment to doing good through our global charitable giving and volunteerism programs.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 18 Marriott International is Children’s Miracle Network Hospitals (CMNH) longest-standing corporate partner. CMNH provides comfort, treatment, and hope to millions of sick children and their families across the U.S. and Canada. For more than 38 years, Marriott has partnered with CMNH – raising more than $138 million to support 170 children’s hospitals across the United States and Canada. Marriott continues to support UNICEF, an organization that works in 190 countries and territories to save children’s lives, defend their rights, and help them fulfill their potential from birth through adolescence. Since 1995, our partnership with UNICEF has raised nearly $49 million, and has helped to improve the lives of more than 4.5 million children. In 2020, Marriott Bonvoy donations helped to enable UNICEF’s COVID-19 response efforts, which included providing critical water, sanitation, and hygiene (WASH) supplies and services in 118 countries, training healthcare facility staff and community health workers in infection prevention and control, supporting children with distanced and home-based learning, and providing personal protective equipment (PPE) in 126 countries. Children’s Miracle Network Hospitals UNICEF Nearly $4.2 million in support was given to CMNH, from hotels, associates, and guests from Marriott International and Marriott Vacations Worldwide in 2020. Over $450,000 raised for UNICEF’s work by Marriott associates, guests, and loyalty members in 2020. Vitality of Children Essential to every community’s long-term stability and success is the vitality of its children. For over three decades, we have mobilized our guests and associates to support a select group of leading nonprofit organizations that serve children around the world. Below: The Courtyard by Marriott ® Bangkok (Bangkok, Thailand) donates linens to a local children’s hospital
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 19 The TakeCare Relief Fund The TakeCare Relief Fund (TCRF) was launched in late 2017, and in 2020 provided need-based grants (of up to $3,000 each) to eligible associates at managed Marriott locations* who faced financial hardship caused by a natural disaster or certain other unforeseen qualifying personal hardship events. TCRF receives support primarily from voluntary donations from Marriott associates and hotel guests as part of the Explore discounted rate stays at participating properties and can also receive support from other sources including Marriott International, and through direct donations from the public. In 2020, the TCRF continued to expand its reach to additional locations outside the U.S. and extended its grant types to include the impacts of COVID-19, such as displacement and evictions/foreclosures and certain childcare expenses. The TCRF donated $1 million to the Marriott Disaster Relief Fund in 2020 to assist associates impacted by the COVID-19 pandemic. In 2020, the TCRF approved 246 grants and provided over $265,000 to Marriott associates at managed locations. Marriott Disaster Relief Fund The Marriott Disaster Relief Fund (MDRF) is a ‘donor advised fund’ managed by the Greater Washington Community Foundation and was established by Marriott to support the company’s efforts to assist families and communities around the world, especially Marriott associates, affected by significant crises. The Fund has the flexibility to provide grants to support the immediate needs of Marriott associates and international, national, and local organizations working in support of relief and recovery efforts in impacted areas. The Fund receives support from the company, The J. Willard and Alice S. Marriott Foundation, the TakeCare Relief Fund, Marriott Bonvoy points donations, and business partner and associate contributions. To support communities impacted by COVID-19, Marriott and the MDRF provided contributions to the Foundation for Amazon Sustainability (FAS), the American Red Cross, the International Federation of Red Cross and Red Crescent Societies, World Central Kitchen, and the United Nations Foundation to support the World Health Organization’s COVID-19 Solidarity Response Fund (WHO Fund). The WHO Fund was focused on sending supplies, such as PPE, to frontline workers, enabling better tracking and detection of COVID-19, and accelerating efforts to fast-track vaccines, diagnostics, and treatment. In addition to broader community support in response to crises or disaster, Marriott also focused on taking care of those who wear the Marriott name badge. In response to the COVID-19 pandemic, the MDRF provided over $1.45 million to support more than 13,000 managed and franchised associates, in 16 markets globally. These contributions focused on the most at-risk associates who were economically impacted by the pandemic, and provided associates with food, hygienic items, and other essential supplies. Disaster Relief Contributions Together with our guests and associates, Marriott supported those in our communities around the world affected by disasters, including the COVID-19 pandemic, and other crises. $1.75+ million contributed* to support associates and communities affected by natural disasters and hardships in 2020. 75+ million loyalty points donated to support disaster relief in 2020. Disaster Relief When disaster strikes, Marriott works with our local hotels and established relief organizations to evaluate and respond to the needs of our communities. We aim to support associates and local communities by providing immediate- and long-term aid, including funding for development and resiliency. * T CRF grants are administered by an independent 501(c)(3) nonprofit organization, and are available to associates at Marriott U.S. managed locations and a growing number of managed locations outside of the U.S. * Disaster relief funds were contributed by the MDRF and the T CRF. Above: Associates at the AC Hotel Nice (Nice, France) collect supplies to donate to local communities
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 20 Supporting Communities Affected by Natural Disasters Around the world, Marriott, the MDRF, hotels, associates, and guests continued to mobilize and provide support to communities impacted by natural disasters. AUSTRALIA In Australia, Marriott and the MDRF announced a series of initiatives to support the bushfire relief efforts throughout the country. Marriott hotels throughout Australia donated room nights for volunteers from fire and emergency services. The MDRF also provided support to the Australian Red Cross and the American Red Cross relief efforts. BRAZIL Heavy rainstorms caused widespread flooding and landslides in the Southeast Region of Brazil, impacting several major cities in the states of Rio de Janeiro, São Paulo, and Espírito Santo. To support relief efforts, the Courtyard ® Rio de Janeiro Barra da Tijuca, JW Marriott Hotel Rio de Janeiro, Sheraton Santos Hotel, and the Sheraton Vitoria Hotel banded together to provide humanitarian aid and supplies to families and communities affected by the disaster. MONACO The Riviera Marriott Hotel La Porte de Monaco, along with the South France Business Council, supported those affected by flooding in valleys of Roya, Vésubie, and Tinée, which destroyed infrastructure, roads, and houses and isolated many villages. Clothing, food, torches, and other technical items were donated to support the recovery of communities in the region. PUERTO RICO In Puerto Rico, Marriott’s Business Council responded to provide immediate relief and help to rebuild communities affected by an earthquake in the region. Marriott hotels throughout Puerto Rico collaborated and delivered supplies including first-aid kits, canned food, water, towels, sheets, pillows, cribs, and wheelchairs, as well as hygiene products to families impacted by the earthquake. UNITED STATES In response to the destruction caused by severe tornadoes in Tennessee, the Moxy ® Nashville Downtown hosted the #NashvilleStrong Benefit concert in early 2020 to support local families. The hotel donated two dollars for every drink sold at the hotel, and all funds raised were donated to the Community Foundation of Middle Tennessee. To support those impacted by the Creek Fire in Fresno, California, TownePlace Suites by Marriott ® Fresno Clovis organized a fundraiser with local organization Philanthropy Inspired by the Needs of our Community (PINC) Fresno to provide support for food, water, and shelter. Right: An associate at the W Montreal (Montreal, Quebec, Canada) prepares meals for those affected by COVID-19
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 21 Good Travel with Marriott Bonvoy As part of Asia Pacific’s efforts to protect natural capital and engage guests in our sustainability journey, we launched Good Travel with Marriott Bonvoy, a program that offers meaningful travel, allowing guests the opportunity to create a positive impact in local communities across the region. Guests can engage across three distinct pillars, including environmental protection, community engagement, and marine conservation. For example, at JW Marriott Mussoorie Walnut Grove Resort & Spa, guests can join a horticulture expert to plant a native sapling. Life On Land Understanding the vital role trees play in the fight against climate change, Marriott hotels continued to invest in reforestation efforts across the globe. Marriott is also a founding member of the Evergreen Alliance, a select group of Arbor Day Foundation partners and collaborators committed to advancing trees and forests as natural solutions for corporate sustainability and citizenship goals. TREES Prior to the retirement of Marriott’s Make a Green Choice program due to the impacts of COVID-19, more than 36,000 trees were planted across forests in the U.S. for participating U.S. properties and Mozambique for participating European properties, and over 9,000 trees were planted across Canada for participating Canadian properties. Marriott’s Business Councils also supported the company’s global reforestation efforts. The Kingdom of Saudi Arabia (KSA) Business Council coordinated with the country’s Ministry of Agriculture to plant 250 trees as part of the Saudi Vision 2030, a framework to reduce dependence on oil, diversify the economy, and develop public service sectors including tourism. MANGROVES Mangroves play a critical role in protecting coastlines from severe storms and providing livelihoods to coastal communities. In addition, mangrove forests are important for conserving biodiversity, storing carbon, and serving as nurseries of the sea. In 2020, Marriott resorts in Fiji participated in Marriott for Mangroves, Rivers, and Reefs, helping to raise funds to protect precious marine life in Fiji. In early 2020, a contingent of 30 associates from The Westin Denarau Island Resort & Spa joined forces with Fiji Marriott Resort Momi Bay to plant a total of 1,800 mangrove trees along the coastline of Momi Bay. Associates from The Ritz-Carlton, Grand Cayman and the JW Marriott Marquis City Center Doha also participated in mangrove clean-up efforts – removing bottles, cans, and plastics from local mangrove tree habitats. RAINFORESTS Marriott continues to build on our 10+ year partnership with the Foundation for Amazon Sustainability (FAS) and the Government of Amazonas through our Juma REDD+ project, which aims to curb deforestation and associated greenhouse gas emissions in a 2,770-square-mile (7,174-square-kilometer) reserve with significant land-use pressure in Brazil’s northwestern Amazon rainforest. As of year-end 2020, 98.7% of the Reserve remains preserved. The Juma REDD+ project also provides education, medical care, employment, social empowerment, capacity building, and a monthly stipend for local residents who voluntarily commit to protect the rainforest. Natural Capital Marriott believes protecting and enhancing the ecosystems where our properties are located supports the sustainability and increases the resiliency of the communities where we do business, so that they remain vibrant destinations. In 2020, we continued to focus on environmental challenges from deforestation to bycatch to reef degradation and more, and invested in scalable, replicable projects to support the world’s natural capital resources. Marriott Golf and Environmental Stewardship Marriott Golf is committed to engaging guests and associates in environmental stewardship and promoting the game of golf in an eco-conscious manner. As of year-end 2020, approximately 94% of Marriott's U.S. golf properties and 100% of U.K. managed golf venues were Audubon Certified. Additionally, 100% of U.S. and U.K. managed golf properties participate in Operation Pollinator, an international biodiversity program to boost the number of pollinating insects.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 22 Life Below Water Considered the “rainforests of the ocean,” coral reef ecosystems protect shorelines from damage and erosion. They also act as breeding grounds and shelter for many marine organisms, which communities depend on for food and thriving local tourism economies. REEF PROTECTION In an effort to promote reef habitats, hotels across Asia Pacific are engaging and educating guests at their properties. For example, the Sheraton Maldives Full Moon Resort & Spa teamed up with Reefscapers and invites guests to participate in a coral-fragment plantation activity. The Ritz-Carlton ® , Okinawa also invites guests to participate in coral planting and education from interacting with the Onna Village Fisheries Cooperative to making seedlings in the Onna Fishing Port. WILDLIFE PROTECTION Across the Caribbean and Latin America, Marriott properties host year-round programs to protect nesting sites and educate guests and associates about the importance of conserving nesting beaches and the environment to help ensure a safe ecosystem for species to live. Since 2005, Marriott hotels have successfully operated on-site sea turtle rescue programs, and in 2020, hotels across the region successfully released approximately 85,000 baby turtles. FISHERY IMPROVEMENT PROJECT SUPPORT Marriott continues to partner with World Wildlife Fund (WWF) to provide fishery improvement project (FIP) support. In Thailand, the Blue Swimming Crab FIP aims to address challenges including overexploitation of species, harvesting of undersized crabs, and lack of enforcement capacity. This FIP continues to expand and has protected approximately 20 acres of seagrass as a conservation area in the region. In Peru, the mahi-mahi FIP aims to mitigate the impacts of ineffective international and national management of mahi-mahi, unlicensed vessels and sea turtle and shark bycatch. As a result of this FIP, the Peru Mahi Alliance was established to engage exporters in the project, and training was provided to local fishers to understand bycatch handling best practices. In 2021, Marriott will continue to evaluate opportunities to support these projects through our responsible sourcing strategy. Storing Carbon by Cleaning Up Seaweed The spread of sargassum algae across Latin America and the Caribbean has led to devasting impacts on the hospitality and tourism industries and the environment. To mitigate these impacts, Marriott partnered with The Ocean Foundation to support the Insetting Carbon Through Sargassum Mitigation Pilot Project. The project aims to convert sargassum seaweed into organic compost, which can be used by local farmers. The concept is designed to remove the seaweed from the beaches and sequester and store carbon in the soil, which can generate extra income for the farmers. In the 2020 pilot, the 14 farmers who utilized the sargassum-based organic fertilizer compost all achieved unprecedented quality and quantity organic crop yields. Based on the success of the pilot, and with the continued support of Marriott, The Ocean Foundation is aiming to expand the project to additional locations around the Caribbean region. Cleaning Up Local Communities Marriott properties continue to support local programs and host events to protect and enhance ecosystems. As part of our Canadian hotels' wider Volunteer 4 Good campaign, 16 hotels and approximately 300 associates from across British Columbia came together to clean their cities. During World Clean-up Day, Marriott Business Councils across France, Switzerland, Belgium, and the Netherlands organized events to remove waste from cities and waterways. With the support of one of Marriott’s corporate clients, the France Business Council and volunteers removed approximately 3 tons (2,721 kg.) of trash from the shores of the Var River in Nice, France. Above right: A landscape with a salmon farm, in Aysén Region, Chile (© Yawar Motion Films / WWF-US)
2021 SERVE 360 REPORT The St. Regis ® Maldives Vommuli Resort’s organic garden (Vommuli Island Dhaalu Atoll, Maldives) SUSTAIN RESPONSIBLE OPERATIONS
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 24 2020 2025 Serve 360 Goals 100% 32% 650 PROPERTIES CERTIFIED TO A RECOGNIZED SUSTAINABILITY STANDARD 245 LEED ® , BREEAM ® , OR ESTIDAMA CERTIFIED OR REGISTERED HOTELS Sustainability Certifications Adaptive Reuse Projects By 2025, we aim to collaborate with owners to develop 250 adaptive reuse projects. Through these projects, we can reuse and breathe new life into existing land or buildings – rather than destroying old sites and rebuilding using new materials. The embodied energy of the existing building reduces the overall carbon footprint compared to constructing that same building from the ground up. As of year-end 2020, Marriott has opened a total of 184 adaptive reuse projects globally since 2016. Design For Health™ Design for Health by MindClick provides owners and their design teams access to MindClick Sustainability Assessment Program for Marriott International rated vendors to support healthy living through design. The program provides access to the environmental and social impact profiles of hundreds of vendors and their products, as well as tools to make healthy design specification a standard practice. Design for Health provides access to MSAP verified ratings covering the entire lifecycle of furniture, fixture equipment and building products. Hotel design teams are able to quickly identify products that best support the health of people and the planet; those made using sustainable materials, free of toxins, a lower carbon footprint, reduced packaging, and operating practices that meet the strictest standards for fair labor and human rights. By 2025, we aim to have 100% of our properties certified to a recognized sustainability certification and 650 LEED®, BREEAM®, or Estidama certified or registered hotels in our portfolio. We also have a target to achieve a minimum of LEED Gold certification for Core & Shell and Interiors at our new global corporate headquarters in Bethesda, Maryland, scheduled to be completed summer 2022. Sustainability Certifications Above: Rendering of Marriott’s future headquarters (Bethesda, Maryland, United States) Sustainable Buildings and Adaptive Reuse From hotel design to the guest experience, sustainability is embedded into our business strategy. Our sustainability strategy is driven by a wide range of initiatives that have been fostered throughout our history of putting people first, giving back to communities, and operating more responsibly to Serve Our World . This includes efforts such as creating resource-efficient hotels, purchasing sustainable products, and supporting innovative environmental initiatives. We continue to evaluate opportunities to collaborate with associates, hotel owners, franchisees, suppliers, business partners, customers, and guests to actively reduce the environmental impact and potential business risks through the construction and operation of sustainable hotels.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 25 2025 Carbon Reduction Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to reduce carbon intensity per square meter of conditioned space by 30% from a 2016 baseline. Due to the impacts of the COVID-19 pandemic, Marriott surpassed its carbon intensity reduction target. We do not consider this target to be achieved, because most of the emissions reductions occurred due to low occupancy at Marriott hotels in 2020. We will continue to reevaluate our progress, as normal operating conditions return, and continue to implement programs that reduce energy usage at our properties. Marriott’s Engineering Business Leadership Councils and teams, composed of Directors of Engineering and Cluster Engineering Managers for specific geographic markets, meet quarterly to review the company’s performance against the Serve 360 carbon, water, and waste reduction goals. The Councils also support the monitoring of climate-related risks and opportunities. Science-Based Target Marriott is committed to setting a science-based target via the Science Based Target initiative (SBTi). In 2021, we will submit a letter to establish our company’s intent to set a science-based target. We are reviewing the 1.5°C Scenario to model and evaluate an emissions reduction target, using the pathway modeled for the Service Buildings sector of the Sectoral Decarbonization Approach (SDA). As part of this evaluation process, we are analyzing baseline data and progress through 2020, to determine the Scope 1 and 2 target and time horizon. Marriott will then determine the parameters that will be needed within Scope 3 emissions tracking and reporting. Global and Regional Environmental Performance CARBON INTENSITY Kilograms per m2 of conditioned space Global 2020 2019 2018 2016 (baseline) 85.31 113.43 115.57 126.21 Asia Pacific 2020 2019 2018 2016 (baseline) 106.73 145.35 144.84 163.36 Canada 2020 2019 2018 2016 (baseline) 59.66 69.51 N/A* 80.53 Caribbean & Latin America 2020 2019 2018 2016 (baseline) 77.00 90.11 N/A* 93.85 Europe, Middle East & Africa 2020 2019 2018 2016 (baseline) 91.00 132.20 140.68 143.42 United States 2020 2019 2018 2016 (baseline) 73.22 94.02 97.90 107.56 Energy and Emissions Marriott aims to minimize our environmental footprint by implementing technologies to track energy consumption and increase the use of renewable energy with the goal of mitigating climate-related risks. This also involves executing targeted strategies across hotels including energy and environmental action plans, signature projects, retro-commissioning, lighting retrofits, and building automation systems. * Data is unavailable .
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 26 Global and Regional Environmental Performance On-site Renewable Energy Globally, Marriott properties continued to evaluate opportunities to install on-site renewable energy solutions. For example, in 2020, Ermita, Cartagena, a Tribute Portfolio Hotel installed solar photovoltaic (PV) panels on the hotel’s rooftop, which is expected to generate approximately 146 MWh of electricity. Additionally, The Ritz-Carlton, Turks & Caicos in partnership with FortisTCI, an electricity provider for the Turks and Caicos Islands, commissioned a 210.6 kW solar PV system for the property’s rooftop. The grid-tied rooftop installation is expected to generate approximately 310 MWh of electricity and avoid over 240 tons of CO2 emissions, annually. In late 2020, Riyadh Marriott Hotel launched the installation of a three-phase on-grid PV system designed to convert sunlight directly into electricity. Each of the nearly 1,800 solar panels generates 450 kWh, and is expected to reduce the hotel’s annual CO2 emissions by approximately 89%. To support progress toward our carbon reduction target, in 2019, we introduced energy reduction targets for all managed Marriott properties globally and suggested energy reduction targets for all franchised properties. 2025 Renewable Energy Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to source a minimum of 30% of its overall electricity from renewable energy by 2025. In 2020, we continued evaluating a reporting protocol to track renewable energy to be able to report on our progress annually, and sourced 0.8% of our electricity consumption from renewable energy. ENERGY INTENSITY kWh per m2 of conditioned space Global 2020 2019 2018 2016 (baseline) 240.95 324.39 329.33 334.93 Asia Pacific 2020 2019 2018 2016 (baseline) 241.48 326.30 330.34 339.63 Canada 2020 2019 2018 2016 (baseline) 299.81 405.17 N/A* 433.47 Caribbean & Latin America 2020 2019 2018 2016 (baseline) 208.59 306.15 N/A* 328.59 Europe, Middle East & Africa 2020 2019 2018 2016 (baseline) 254.31 346.55 383.00 365.28 United States 2020 2019 2018 2016 (baseline) 234.14 312.39 311.42 314.26 Above: Associates and the FortisTCI team at the installation of The Ritz-Carlton, Turks & Caicos’ (Grace Bay, Turks and Caicos Islands) solar PV system (Photo credit: FortisTCI/Spotlight Communications) * Data is unavailable .
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 27 Climate Resilience Physical climate-related risks, such as severe weather events, are typically managed and updated annually through our enterprisewide approach to business continuity planning, including risk identification, readiness, response, and recovery, relative to operational disruptions. Our corporate risk management department develops and updates policies for insurance coverage for both owners and franchisees, as well as business interruption coverage for our operations in regions prone to events such as tropical storms, flooding, and wildfires. Identification of transition and chronic physical climate-related risks and assessing the degree to which they could affect Marriott’s business is integrated into the governance structure and the materiality assessments that underpin our sustainability and social impact platform, Serve 360. Additionally, Global Engineering is collaborating with Marriott’s Risk Management Team and external collaborators to evaluate and address climate-related risks to the property assets under Marriott’s care and to develop strategies, programs, and trainings to promote climate resilience across the global portfolio of properties. Marriott has launched the Marriott Infrastructure Resilience Adaptability (MIRA) project, which evaluates the growing related risks to the physical assets managed by Marriott and promotes resilient strategies, programs, and training to help mitigate losses associated with these events. During 2020, we launched an education series for associates and engineers of managed hotels called ‘Three Things for Resilience’ and published three training modules focused on cold weather protection of our systems. During 2021, two additional modules related to asset preparation for hurricanes and power outages will be added to the training series. Left: The Ritz-Carlton, Turks & Caicos’ (Grace Bay, Turks and Caicos Islands) solar PV system is expected to generate approximately 310 MWh annually (Photo credit: FortisTCI/Spotlight Communications)
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 28 Global and Regional Environmental Performance In 2020, we began focusing on our annual water reduction targets, which included increasing compliance with MESH, our environmental reporting system. Moving forward, Marriott expects to continue to introduce water reduction targets for all managed Marriott properties globally, and suggested targets for all franchised hotels. The target development process factors in average annual water reduction from 2016 (the baseline year) to present-day and compares each hotel’s water intensity to that of similar hotels within the same climate zone, region, and hotel type. 2025 Water Reduction Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to reduce water intensity per occupied room by 15% from a 2016 baseline. Due to the impacts of the COVID-19 pandemic, Marriott saw a significant increase in water intensity per occupied room, in 2020 due to low global occupancy. We will continue to reevaluate our progress, as normal operating conditions return, and continue to implement programs that reduce water usage at our properties. Water Marriott’s global water strategy includes deploying programs and initiatives that are tailored for each property. We also aim to manage water-related risks across the lifecycle of properties, from site development to construction and operations. WATER INTENSITY Cubic meters per occupied room Global 2020 2019 2018 2016 (baseline) 1.1601 0.7015 0.7003 0.8413 Asia Pacific 2020 2019 2018 2016 (baseline) 1.7601 1.1740 1.1727 1.4096 Canada 2020 2019 2018 2016 (baseline) 0.5520 N/A* 0.6265 Caribbean & Latin America 2020 2019 2018 2016 (baseline) 1.7060 0.9793 N/A* 1.2251 Europe, Middle East & Africa 2020 2019 2018 2016 (baseline) 1.4284 0.6718 0.6793 0.8520 United States 2020 2019 2018 2016 (baseline) 0.8391 0.5690 0.5647 0.6495 0.8510 * Data is unavailable .
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 29 Managing Water Resources Water is a global issue that needs to be addressed locally, everywhere. We deploy a strategy that is tailored for each property. Marriott’s water conservation initiatives target specific aspects of hotel operations, including dishwashing and water service at restaurants and events; central plant operations; landscaping/ irrigation; and golf course maintenance/operation. Marriott implements action plans, utilizes technology to reduce water leaks, and establishes standards to better manage water withdrawal at Marriott properties. All U.S. and Canada managed properties benefit from an outlier analysis program based on billing data, which flags unusual water usage. If properties are unable to mitigate the high usage pattern, a water performance call is conducted to troubleshoot the issue. In 2020, the Anomaly Management program helped identify water leaks at seven properties and saved an estimated 25,000 cubic meters of water. Marriott has an established standard for water submetering for cooling towers and irrigation at its managed, full-service properties in the Americas. Additionally, automated meter-reading platforms have been installed at properties with high water and sewer rates, acute/chronic drought conditions and/or above-average irrigation consumption. The Automated Water Meter Reading & Diagnostics Program involves installing cellular endpoints on irrigation and cooling tower water submeters that transmit 15-minute interval water consumption data nightly to an online diagnostic platform with leak alert and reporting functionalities. Implementing Water Efficiency Projects Across the globe, Marriott's full-service, managed properties can elect to use a water conservation action item for their annual signature project, such as the installation of low-flow toilets and showerheads, smart irrigation controllers, laundry water reuse systems, and high-efficiency irrigation spray nozzles. Many of these water conservation projects are also designed to improve energy efficiency. Hotel owners typically invest in low-flow fixtures across the global portfolio of properties. In 2020, the Americas Engineering Team continued collaborating with owners to assess a variety of water conservation projects. Marriott properties across the globe evaluate opportunities to invest in alternative water resources, including using recycled water for landscaping, cooling tower makeup water, first wash laundry, and flushing. For example, The St. Regis Mardavall Mallorca Resort installed a grey water recycling system, which recovers and recycles water from showers, sinks, and bathtubs in the hotel’s guest rooms. Approximately 4,000 cubic meters of water is recycled and reused by the hotel each year. Managing Water Risks Water risks are managed across the lifecycle of properties, from site development to construction and operations. In 2021, we conducted a water risk assessment using the World Resources Institute (WRI) Aqueduct Water Risk Atlas to identify Marriott properties located in regions with high or extremely high baseline water stress. Based on this assessment, we identified 15 business critical properties with high or extremely high baseline water stress. When the municipal water supply is not available or sufficient, our hotel partners install water systems, including bore, desalination, reverse osmosis, and filtration. For hotels under development, Marriott assesses environmental resources, conducting feasibility studies during site development, and considers the choice of construction materials during design. Once open, each managed hotel will have a water conservation action plan to manage and reduce water usage. In 2020, 66 hotels reported 68 water efficiency projects, including toilet and showerhead upgrades and laundry efficiency projects. Each project is estimated to reduce water consumption by approximately 8,233 cubic meters.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 30 2025 Waste Reduction Goals As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to reduce waste-to-landfill by 45% and food waste by 50% from a 2016 baseline. In 2020, Marriott continued to work with World Wildlife Fund (WWF) and a hospitality working group to develop a food waste tracking and reporting methodology. In 2022, Marriott also plans to establish a food waste data baseline and engage hotels to continue to implement food waste reduction programs. Single-Use Plastics In 2020, Marriott hotels continued to evaluate and implement bottled water alternatives to reduce single-use plastic consumption. For example, five hotels in the Asia Pacific region installed in-house glass water bottle refill systems. The Westin Kuala Lumpur installed its own water bottling plant, with the goal of removing all single-use plastic water bottles from the hotel, eliminating over 400,000 plastic bottles of water each year. Additionally, Marriott reviewed and updated our brand standards such as the Sheraton Club Standard, so those club lounges, in addition to the Marriott Hotels club lounges, can serve from a filtered tap, instead of serving plastic bottles of water. Our switch from small toiletry bottles to residential-sized amenities, while temporarily paused by the pandemic, has restarted with an ongoing rollout through June 2022. When fully implemented across the globe, the program is expected to prevent approximately 500 million tiny bottles annually from going to landfills. Waste Marriott engages with hotels, guests, corporate customers, and local and global organizations to implement waste reduction programs and initiatives, focusing on single-use plastics elimination and food waste reduction to support our companywide goals. Our global waste strategy is designed to assist our hotels in disposing of their waste in an environmentally sound and cost-effective manner. We focus on local, state, and national regulations and global waste management trends to guide our hotels in making appropriate waste diversion choices. Right: Recycled plastic bottles and other materials at the Sheraton Moscow Sheremetyevo Airport Hotel (Moscow, Russia), were made into benches
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 31 Food Waste In 2020, we engaged with WWF and other hospitality industry members to develop a food waste tracking and reporting methodology. As a result of this engagement, the Hotel Waste Measurement Methodology will cover what types of waste to track, how to fill in data gaps for hotels that have not reported waste data, and how to validate waste data. In 2022, Marriott will begin implementing the new methodology across our global portfolio to establish the 2016 food waste data baseline, and begin to measure progress against that baseline. In response to the global pandemic, and the subsequent increase in food insecurity, our hotels increased their focus on reducing food waste. To account for reduced occupancy, many hotels significantly altered their production practices to serve a la carte and individual portions. With this production model, culinary teams were focused on ensuring the proper amount of food was apportioned for each meal to satisfy guest demand and reduce waste. Additionally, prior to many of our hotels temporarily closing due to the COVID-19 pandemic, Marriott associates organized food donations to support local communities and reduce food waste. Our hotels also remained committed to our food waste reduction practices, including separating food waste for compost and donating leftover food to local communities in need. In the UAE, The Ritz-Carlton Ras Al Khaimah, Al Hamra Beach, composts approximately 400 pounds (181 kg.) of food scraps a month and uses the fresh compost in the on-property chef’s garden. In late 2020, 10 Marriott properties from throughout Thailand gathered at The Westin Siray Bay Resort & Spa, Phuket to participate in a “Rescue Kitchen” event that was led by Scholars of Sustenance (SOS), a global food rescue foundation. The hotel culinary teams prepared approximately 3,100 pounds (1,436 kg.) of surplus food from the hotels that fed 400 people in the surrounding communities. The JW Marriott Hotel Bangkok also separately partnered with SOS and donated over five tons of surplus food throughout 2020. Digital Food Waste Tracking As part of our approach to reduce food waste, Marriott has installed Leanpath and Winnow digital food waste tracking technologies in 38 of our hotels around the globe including in the U.S., Europe, Middle East, and Asia Pacific. The technologies use innovative software to enable our hotels to digitally track and report the type and amount of food being wasted, identify trends and determine how to make better decisions that will result in decreased food waste. Six hotels in California operated the Leanpath system via grant funding from the state of California, which led to 37,931 tons of food waste diverted from landfills between November 2019 and March 2021. Educating Our Associates To support our progress toward companywide waste reduction goals, Marriott provides hotels with tools and resources to reduce waste, including a back-of-house food waste reduction poster that is available in 14 languages. We will continue to encourage hotels to focus on establishing new programs and improving existing food waste reduction initiatives. Below: An associate at The Ritz-Carlton, Rancho Mirage (Rancho Mirage, California, United States) weighs food waste
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 32 2020 Key Performance Indicators 35% FOREST STEWARDSHIP COUNCIL-CERTIFIED PAPER PRODUCTS* MARINE STEWARDSHIP COUNCIL- OR AQUACULTURE STEWARDSHIP COUNCIL-CERTIFIED SEAFOOD* Supplier Assessments Through Avendra, Marriott’s procurement services provider, our suppliers and their products are screened on environmental and social attributes. Avendra contracts set the expectation for suppliers to follow our Supplier Conduct Guidelines, which set baseline expectations around social and environmental responsibility. Avendra also requires suppliers to submit a sustainability policy that is relevant to that supplier’s industry impacts. In 2020, we continued our focus on procuring more environmentally and socially responsible products within our top 10 categories. Together with Avendra, we began a formal process to assess the environmental and social business aspects of our existing Americas suppliers, within the top 10 categories, via the EcoVadis ratings platform. Approximately 100 existing suppliers completed the assessment in 2020 and the remaining 200+ suppliers will be required to complete the assessment by the end of 2021. In 2022, after the completion of the Americas assessments, we will begin to evaluate our remaining global suppliers. The information submitted to the EcoVadis platform will be used to develop improvement plans for suppliers so that they are on track to successfully meet the responsible sourcing requirements by the end of 2025 that have been determined for each of the top 10 categories. Through Avendra, we are also engaging our suppliers on anti-deforestation programs, including main suppliers of beef, soy (including feed to beef, poultry, pork, and seafood), fiber/paper, and other products with significant palm oil usage. Through this engagement, Marriott aims to reduce deforestation risks in our supply chain and gain a better understanding of our suppliers’ anti-deforestation policies and practices. As part of a five-year plan with Avendra, a nonprofit environmental group conducted a risk and opportunity assessment, which included potential child and forced labor risks. As a result of the assessment, more than 20 potential products were identified as opportunities for responsible sourcing efforts in Marriott’s supply chain. To support the company’s efforts to promote responsible sourcing, associates with procurement and purchasing responsibilities are also required to complete the Procurement 101 online training, which includes information on Marriott’s human rights policies. * Based on data from our procurement services provider , Avendra, at managed properties in the Americas. FSC products are inclusive of personal paper products, napkins, and office paper. Supporting Local Farmers At The Westin and W Reserva Conchal (Costa Rica), the Reserva Conchal Apiary is an active project operated by Blue Zones Nicoya, a local organization that works to support development of crops and steady income to small farmers in the area. The honey produced at the apiary is available for general sale to customers in the shops located in the resorts and is also used by both resorts’ food and beverage departments. 2020 Performance 25% 2025 Responsible Sourcing Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to source responsibly by 2025 95% of each of our top 10 categories. Our top 10 categories include: animal proteins (inclusive of beef, eggs, lamb, pork, and poultry), bottled water, cleaning supplies, cocoa, coffee, guest room amenities, paper products, seafood, sugar, and textiles. We have established responsible procurement requirements for each category that suppliers will have to adhere to in the future. In 2021, we published the requirements and supporting guidance in Marriott International's Responsible Sourcing Guide . Per the Global Procurement Supplier Conduct Guidelines , we may take steps to assess a supplier’s adherence to the principles, standards, and guidelines. Responsible Sourcing Marriott is committed to integrating leading environmental and social practices into our supply chain and collaborating with like-minded suppliers to reduce the negative environmental and social impacts of business activities by focusing on responsible and local sourcing.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 33 Cage-Free Egg and Responsible Pork Commitments Marriott continues to engage with existing suppliers to understand market conditions across the globe that currently limit the supply of responsible products including cage-free eggs and group-housed and gestation crate-free pork. In 2020, 21% of eggs purchased were cage-free and 3% of pork purchased was responsibly sourced. In the U.S. and Canada, we provide Marriott’s managed hotels with clear product specification guidance for cage-free eggs and group-housed and gestation crate-free pork and are measuring compliance toward those specifications on a regular basis. Our global procurement teams are working diligently to identify new suppliers to provide more cage-free eggs and group-housed and gestation crate-free pork in markets where supply is low and increase the purchase of these products by educating and tracking the progress of our continent teams. As new cage-free eggs and pork agreements are signed, we are working with hotels to make the transition to these new suppliers. We also collaborate with our industry peers on the issues preventing increased supply of these products and assist with identifying solutions to improve their supply chains. 2020 Global Cage-Free Eggs Procurement REGION C AGE-FREE PERCENTAGE OF TOTAL EGGS SPEND Asia Pacific * 1% Caribbean & Latin America Managed ** 7% Caribbean & Latin America Franchised ** 0% Working to identify cage-free eggs suppliers Canada Managed ** 26% Canada Franchised ** 17% Europe and Middle East & Africa * 3% U.S. Managed ** 54% U.S. Franchised ** 24% Global * 21% 2020 Global Responsible Pork Procurement REGION R ESPONSIBLE PORK PERCENTAGE OF TOTAL PORK SPEND Asia Pacific * Working to identify responsible pork suppliers 0% Caribbean & Latin America Managed ** 1% Caribbean & Latin America Franchised ** 0% Working to identify responsible pork suppliers Canada Managed ** Working to identify responsible pork suppliers 0% Canada Franchised ** Working to identify responsible pork suppliers 0% Europe and Middle East & Africa * 1% U.S. Managed ** 9% U.S. Franchised ** 4% Global * 3% * Based on available owned, leased, managed, and franchised data from the region. ** Based on available owned, leased, managed, and franchised data from our procurement partner , Avendra. * Glidepath projections based on available historic procurement volumes for owned, leased, managed, and franchised data from our procurement services provider , Avendra. 25% 2021 40% 2022 60% 2023 80% 2024 100% 2025 U.S. + Canada Glidepath to 100% Cage-Free Eggs* ** **
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 34 Responsible Seafood Marriott remains committed to improving our seafood procurement practices. To support this commitment, we continued to invest in Fishery Improvement Projects (FIPs) to promote effective management of fisheries. This includes engaging with external partners including WWF to address overexploitation of species and improving bycatch handling training to local fishers. MSAP for FF&E In 2013, Marriott International joined the Hospitality Sustainable Purchasing Consortium, led by MindClick, to create an annual assessment of furniture, fixtures, and equipment (FF&E) suppliers and their products, now known as MSAP . In 2015, Marriott announced that by 2025, 95% of FF&E products specified for all prototypical brands would need to reach the highest rating in MSAP (Leader). On an annual basis, Marriott’s FF&E suppliers complete rigorous survey-based product evaluations with MindClick-a global leader in environmental and social impact ratings of manufacturers and their products. Every aspect of a product’s life cycle is evaluated based on leading globally accepted standards for environmental and social responsibility. Ratings address healthy materials, manufacturing footprint, carbon emissions, waste reduction, and fair labor and human rights. Reporting and analytics, provided to suppliers, Marriott, and now to design teams through Design for Health, are driving the selection of products and improvement in performance to support the health of people and the planet throughout Marriott’s hotels worldwide. Right: Tuna, National Marine Park Bonaire (© Casper Douma / WWF) 2025 FF&E Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to ensure that the top 10 FF&E product categories sourced are in the top tier of MSAP. In 2020, 3,800+ FF&E products were evaluated across the top FF&E product categories. 38% of these products scored in the top tier. 94% of FF&E was purchased from suppliers that reduce, reuse, or recycle packaging* in 2020. * Based on North American suppliers. 2025 Local Sourcing Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to locally source 50% of produce by 2025. Marriott plans to establish companywide local sourcing guidance to begin tracking toward our Serve 360 Goal. In 2020, Marriott hotels continued to buy local products within their regions to support creative and innovative culinary programs. For example, the JW Marriott Cancun Resort & Spa sources local corn from suppliers from the Peninsula de Yucatan region. This not only helps ensure a quality product, but also supports the local economy.
2021 SERVE 360 REPORT Liquid Operations Manager at the W Kuala Lumpur (Kuala Lumpur, Malaysia) seeks to make the perfect cocktail through creativity EMPOWER THROUGH OPPORTUNITY
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 36 Global Diversity, Equity, and Inclusion Global diversity, equity, and inclusion (DE&I) are integral to how we do business every day, as we engage with our key stakeholders: associates, customers, owners, and suppliers. Since Marriott’s founding in 1927, our core value of putting people first and our commitment to diversity, equity, and inclusion have guided how we interact with people and how we do business every day. This is the foundation that sustains our “TakeCare Culture” and business success. Our DE&I Objectives Create an environment where all associates, customers, owners, and suppliers feel welcomed and embraced with opportunity across all aspects of our business Increase the number of diverse- and women- owned hotels Establish a supportive and inclusive work environment where associates are brought together by a common desire to experience opportunity, community, and purpose Provide diverse-owned suppliers with access and equity in our supply chain Increase the presence of women and people of color in the highest levels of management and other key decision-making positions Excel at serving and marketing to welcome diverse travelers DE&I Accountability and Leadership Our CEO and senior leadership team have established longstanding, comprehensive diversity, equity, and inclusion performance metrics that are part of their annual management business objectives and compensation plans. Marriott’s DE&I strategy is directly overseen by our Board-level Inclusion and Social Impact Committee . To further support accountability, Marriott has established a leadership governance structure for DE&I. Board Level Committee and Subcommittees Diversity and Inclusion Talent Council The Diversity and Inclusion Talent Council is comprised of cross-discipline senior leaders to drive outcomes in achieving our diverse recruitment and talent strategy. This strategy includes a focus on diverse candidate slates to increase the identification and recruitment of diverse talent at an entry point for vice president positions. The Council also helps develop and sponsor innovative strategies and initiatives that strengthen relationships with external organizations. Inclusion & Social Impact Committee Board committee focused on advancing inclusive opportunity through our people-first culture and efforts to foster associate wellbeing and inclusion and to promote this focus with our key stakeholders. Inclusive Opportunity Subcommittee Define strategy and goals, drive accountability, and execute an integrative approach to inclusive opportunity across all business operations with specific focus on associates, customers, owners, and suppliers. Provides oversight, encourages, and evaluates efforts undertaken by the company to reduce Marriott's environmental impact and promote a positive social impact in the communities Marriott serves throughout the world. Provides oversight, encourages, and evaluates efforts undertaken by the company to address governance issues. Environmental & Social Impact Subcommittee Governance Subcommittee Global Business Leader Committee Global Inclusion Council CEO-led council established with Continent Presidents to drive ownership and accountability to promote inclusive opportunities globally. Regional/Continent Councils Regional Inclusion Council Drives regional strategy aligned to global diversity, equity, and inclusion strategy and continental shared business priorities.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 37 Stand Against Racism We recognize that taking a stand to advance racial justice must be a top priority and we are listening to associates, equipping our leaders, taking a very public stand, and engaging in critical public policy work to help address systemic racism. Following the death of George Floyd, Marriott Board members and senior leaders reiterated the importance of accountability, fostering engagement across communities and generations, and providing mentorship and career development opportunities. In 2020, we strengthened engagement with organizations in the Black community that we have worked with for decades, such as the National Association for the Advancement of Colored People (NAACP) and National Urban League. We also formed new relationships with My Brother’s Keeper Alliance and the NAACP Legal Defense and Education Fund. To support our broader racial justice programming, we aim to strengthen these relationships while also focusing on identifying local engagement opportunities with My Brother’s Keeper Alliance in Baltimore, Chicago, the Greater Washington, D.C. area, and other aligned markets. Additionally, our Marriott Bonvoy ® members can donate loyalty points to select organizations focused on advancing racial equity and justice – points that we will match and then convert to monetary donations for these worthy organizations. In the United States, we will continue to expand our partnerships with Historically Black Colleges and Universities. Marriott-Sorenson Center for Hospitality Leadership at Howard University On February 24, 2021, The J. Willard and Alice S. Marriott Foundation announced a $20 million endowment to establish the Marriott-Sorenson Center for Hospitality Leadership in honor of Marriott’s beloved president and CEO Arne Sorenson who passed away on February 15, 2021 from pancreatic cancer. The J. Willard and Alice S. Marriott Foundation endowment will launch the Center at Howard University, one of the leading historically Black Colleges and Universities in the United States. In addition, Marriott announced the creation of the Arne M. Sorenson Hospitality Fund that will support the critical programmatic and career development elements of the Center. This Fund is dedicated to helping the industry build leadership talent in hospitality, with Marriott pledging the first donation of $1 million. New and Accelerated DE&I Goals As a part of our efforts to advance women and people of color, Marriott has accelerated our objectives to diversify our leadership and business opportunities. In 2021, we announced the acceleration of our efforts to achieve global gender parity in company leadership by 2023 – two years earlier than the original goal. We also established a new objective to increase the representation of people of color in executive positions in the United States. Our key DE&I goals include: Achieve gender representation parity for global company leadership by 2023 Increase representation of people of color in executive positions from 20.5% to 25% by 2025 Achieve 3,000 diverse- and women-owned hotels by 2025
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 38 Stakeholder Engagement Marriott is an active and engaged corporate member of global nongovernmental organizations across many diverse segments that support the development of opportunities for our key stakeholders including diverse and historically underrepresented suppliers, current and potential associates, hotel owners, and customers. For a full list of diversity partners, please see Marriott’s Partners in Partners in Diversity, Equity, & Inclusion webpage. 2020 U. S. Workforce ** U.S. WO RKFORCE BY RA CE/ETHNICITY * PEOPLE OF COL OR WOMEN GENERATION * 48% 46% 55% 21% 34% 51% 21 .1 % Black/ African American 30 .5 % Hispanic 31 .5 % White 0. 4% Native American/ Alaska Native 0. 8% Native Hawaiian/ Pacific Islander 2.3% Tw o or more Races 1. 1% Unknow n 12.2% Asian Executive s Mid-Le ve l Managers Entry-Le ve l Executive s Mid-Le ve l Managers Entry-Le ve l 10 .1 % Black/ African American 61 .8 % White 15 .1 % Hispanic 0. 3% Native American/ Alaska Native 2.1% Tw o or more Races 1. 1% Unknow n 0. 5% Native Hawaiian/ Pacific Islander 9% Asian U.S. MANA GERS BY RA CE/ETHNICITY 1% Silent Generation 1% Gen Z 38% Millennials 36% Gen X 25% Baby Boomers * Total does not add up to 100% due to rounding. ** Includes associates employed at headquarters, corporate offices, CECs, and managed hotels. 67% People of Color 37% People of Color Associates Taking care of people and prioritizing their wellbeing has formed our cultural foundation since the company’s founding in 1927. Throughout the COVID-19 pandemic, we continued to focus on supporting our associates. This included developing job recruitment sites for both our on-property and corporate associates globally and facilitating full and part-time work opportunities with dozens of major companies globally. We also offered our managed associates online resources focused on mental and physical health and wellbeing, as well as comprehensive training and personal development tools. Above: Ladies and Gentlemen at a Ritz-Carlton property
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 39 Focusing on Culture, Talent & Organization Marriott’s people-first, inclusive culture and our TakeCare commitment to wellbeing help to provide Marriott managed associates with opportunity, community, and purpose. This foundation supports the recruitment, retention, and advancement of all managed associates and creates an environment where associates feel they belong and are respected. In response to the global COVID-19 pandemic and fight for racial justice and equity in the U.S., we created a global, holistic strategy – Culture, Talent, & Organization – to define company actions and increase cultural engagement, inclusive opportunity, and talent development. We worked diligently to provide all managed associates with easy access to the many resources already in place to support this strategy, and to communicate new materials and updates via town halls, newsletters, intranet postings, videos, and workplace briefings. TAKECARE COMMUNITY TALKS In 2020, our CEO and Global Chief HR Officer joined Marriott senior leaders to kick off an ongoing series of virtual town halls, globally. The TakeCare Community Talks aim to transparently share associate feedback and senior leader perspectives on our fight against racism, the advancement of equality and justice in society, and Marriott’s role in these efforts. RESPECT FOR ALL RESOURCES Our “Respect for All – Putting People First Since 1927” initiative offers a platform that leverages resources, training, best practices, and content related to diversity, equity, and inclusion. Resources also include videos focused on unconscious bias and guest behaviors to help associates and managers navigate various uncomfortable or challenging situations while providing exceptional customer service and respect for all. All videos have accompanying conversation cards to use at team meetings to reinforce key messages and facilitate dialogue. LIVING OUR CORE VALUES (LOCV) LOCV, an annual signature engagement program, is facilitated by general managers with all associates at our managed properties. Our 2019-2020 LOCV installment – Respect for All – included discussions around understanding conscious and unconscious biases to help associates provide the same warm welcome and level of service to all. TAKECARE COMMUNITY HUB In 2020, we launched our TakeCare Community Hub, a collection of resources dedicated to promoting respect and kindness, mutual appreciation, and an uplifting sense of welcome and belonging among associates. Resources include teambuilding activities, learning programs, and tools all designed to further Marriott’s commitment to build an inclusive and inspired community. COMMUNITY TALENT NETWORK TEAMS (TNT s) Building on previous success with TNTs, Marriott is expanding TNTs to offer Community TNTs, bringing together associates who have an interest and passion to improve some aspect of the workplace experience at Marriott. Each Community TNT will be led by a senior executive and a small team of co-leaders who will be trained as Inclusion Leaders. LEADERSHIP TALENT DEVELOPMENT We are committed to unleashing the potential of our people by creating pathways for advancement. These pathways support associate development by providing them with growth and leadership skills, available when and how they need them. Associates can leverage tools and programs such as the Digital Learning Zone, TakeCare Grow, Marriott Development Academy, and the Talent Development Inventory to accelerate talent at all levels and build our leadership pipeline. These efforts are complementary to our other signature programs, including the Emerging Leader Program and our high potential programs. EMERGING LEADER PROGRAM (ELP) ELP was created to develop our bench strength talent – our high-performing front-line leaders, senior leaders, and other managers who have demonstrated the ability to excel to higher levels of responsibility. ELP is instrumental in building and increasing the number of women and people of color in leadership roles. Of all associates who have completed the program, 100% have been promoted or selected for strategic developmental management and profit and loss (P&L) roles. TAKECARE GROW PLATFORM This global, online platform was launched in early 2020, and offers a library of learning experiences designed to help all associates prioritize personal development. The platform delivers a personalized learning experience in 17 languages and includes a curated set of educational resources, activities, and videos across 15 unique learning pathways. DIGITAL LEARNING ZONE Throughout 2020, we continued to aid associates in their development. The result is a curated blend of digital trainings developed by Marriott, as well as existing and new vendors, to help associates upskill, reskill, and navigate this continued challenging period. New resources were added to our Digital Learning Zone covering concepts such as working and managing in a remote environment, language skills, leadership and growth skills, and various collegiate courses. * In 2020 , several of the above programs were paused due to the COVID-19 pandemic.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 40 Across the globe, Marriott is taking steps to ensure DE&I is integrated in all regions. In 2020, Marriott Canada signed on to participate in the Federal Government of Canada’s 50-30 Challenge to promote diversity and inclusion. The goal of the Challenge is to commit to 50% gender parity and 30% minorities at the highest levels of companies in Canada, and also ties into the diversity we are aiming to achieve within our operations in Canada, and, more broadly, as a global company. Pay Equity Marriott is committed to providing our managed associates with compensation that is equitable and competitive. We regularly conduct pay equity reviews in the U.S. and make pay adjustments where appropriate. To ensure that our recruitment process reflects fair and equitable pay practices, we use a competitive local market wage scale and establish a starting rate of pay with fixed or defined pay increases based on tenure for the vast majority of our U.S.-based, hourly-paid hotel positions. Our compensation policies and practices are designed to avoid pay inequities throughout an associate’s career. Associates can raise issues regarding pay equity through their manager, Human Resources, or the Business Integrity Line. Globally, during the application process, Marriott only requests the applicant's desired rate of pay and directs HR professionals not to collect or utilize compensation history when establishing starting pay for new hires. Right: Associates preparing meals at the Phuket Marriott Resort and Spa, Nai Yang Beach (Phuket, Thailand) for those affected by COVID-19. 2025 Empower Through Opportunity Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to invest $35 million in programs and partnerships that develop hospitality skills and opportunity among youth, diverse populations, women, people with disabilities, veterans, and refugees. As of year-end 2020, Marriott has invested over $8 million in supporting programs and partnerships.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 41 We are proud to be a part of She Has a Deal to improve gender parity in the hotel industry. We understand the challenges many women face when seeking capital and gaining access to information. We are committed to helping close the gender wealth gap in hotel ownership. – Eric Jacobs, Marriott International’s Chief Development Officer, International Growth Women’s Empowerment For over 20 years, our Women’s Leadership Development Initiative has guided our efforts to increase the presence of women at the highest levels of management and in other decision-making positions, developing a strong pipeline of women leaders. International Women’s Day and Women’s History Month On International Women’s Day (IWD) in 2021, Marriott marked the social, cultural, political, and economic achievements of women, and shined a spotlight on gender representation in leadership. Associates from across the company participated in TakeCare Community Talks, panel discussions and special events recognizing the women at Marriott who are helping to shape our future. Marriott’s newly promoted President, Stephanie Linnartz, launched a blog series that showcased six women leaders. Erika Alexander, Marriott’s Chief Global Officer, Global Operations, also hosted a conversation among women executives on resiliency and the future of travel for an audience of women in business. Additionally, our global sales organization hosted a series of virtual events for customers around the world, including interviews with Marriott associates and key customers about the International Women’s Day theme, “Choose to Challenge”. She Has a Deal In 2020, Marriott partnered with She Has a Deal, an education and investment platform for aspiring women hotel investors and developers. Marriott was a sponsor of the “She Has a Deal” hotel investment pitch competition for early-career women, in which $50,000 in deal equity was provided to the winner. Team Datcher, made up of three Cornell University Baker Program in Real Estate graduates, was awarded the deal through their pitch of an 80-room adaptive reuse project in Detroit, Michigan. Left: Women of F&B event at the Amsterdam Marriott Hotel (Amsterdam, Netherlands) Our Women’s Empowerment Objectives Increase the presence of women at the highest level of management and in other decision-making positions Develop a role for senior management to play in ensuring that women progress Strengthen the career development process Capitalize on the current women leaders to drive the success of the organization Gender Parity Goal In 2021, Marriott announced that we are further accelerating our efforts to achieve global gender parity by 2023 – two years earlier than the original target date. As of year-end 2020, approximately 44% of our executive leaders across the world were women and in the United States, 48% of our executive leaders were women.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 42 Supporting Diverse-Owned Businesses J.W.E., an Asian-American owned business certified with the National Minority Supplier Development Council (NMSDC), has been a trusted supplier to Marriott International since 2017 when they were awarded the Sheraton Wardrobe program. This contract awarded J.W.E. Inc. the opportunity to make all custom designed uniforms for associates in the U.S., Canada, and Central & Latin America. J.W.E. Inc. owns their own manufacturing, which allows them to be nimble and provide more custom patterns using high-quality fabrics. In 2020, due to the impacts of COVID-19, Marriott's relationship with J.W.E. Inc. expanded to include the manufacturing of masks and PPE to support recovery efforts. We continued to invest in the growth and development of businesses owned by people from historically disadvantaged communities through our partnerships with the National Minority Supplier Development Council, The National LGBT Chamber of Commerce, the Women's Business Enterprise National Council and other business equity organizations. Marriott hotels around the world also continue to support the company’s global supplier diversity goals through partnerships with diversity organizations. In Peru, Marriott hotels hosted a virtual conference with WEConnect International to connect with women-owned businesses and discuss new opportunities. Hotel Owners Our commitment to promoting diverse owners includes introducing successful diverse and women business owners to the hospitality industry and educating them on potential investment opportunities. In 2020, we exceeded our goal to reach 1,500 diverse- and women-owned open hotels by the end of 2020, with 1,556 diverse- or women-owned open hotels. We also set a goal to achieve 3,000 diverse-owned hotels by 2025. Suppliers Marriott’s commitment to diverse suppliers helps drive economic empowerment around the world, supports our customers, expands our global footprint with minority-, women-, veteran-, people with disabilities-, and LGBT-owned businesses, fosters an exchange of ideas, spurs innovation, and inspires us all to do business better. Marriott also continues to leverage our supplier diversity platform, Exchanges, to increase associate engagement, awareness, and education on the importance of supplier diversity. Over the past 10 years, Marriott has spent $6 billion with diverse suppliers. 2020 Diverse Suppliers DIVERSE SUPPLIER CATEGORY 2 020 METRIC Total Inclusive Purchasing $430 ,243,404 Purchased from women-owned businesses $253 ,505,971 Purchased from minority-owned businesses $163 ,563,753 Purchased from veteran- and service-disabled veteran-owned businesses $7 ,885,238 Purchased from LGBT-owned businesses $4 ,186,525 Purchased from people with disabilities businesses $1 ,101,917 LGBT-owned Businesses We support LGBT-owned businesses and spent $4+ million with these businesses in 2020. #LoveTravels Through Marriott’s purpose-driven marketing initiatives, we are proud to showcase our commitment to diversity, equity, inclusion, and social good. Our #LoveTravels platform aims to advance people pursuing inclusion, equality, peace, and human rights. Above: Associates at an LGBTQ pride parade
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 43 Bridges from School to Work ® The transformative power of a job is one of the most impactful ways to serve people with disabilities. For over 30 years, our flagship partnership with Bridges from School to Work, established by the Marriott family, has supported skills development, training, and job placement for young people with disabilities, making a positive impact by creating and supporting opportunities. Each year, Bridges helps more than 1,000 young people with disabilities prepare for the workplace and find a job that matches their interests and abilities. In 2020, Marriott’s support enabled Bridges to respond to the COVID-19 pandemic and continue their mission of serving young people with disabilities. This included launching a redesigned and responsive website, maintaining their services through virtual and remote delivery, and providing pandemic resources to youth and parents. Marriott was also named one of the 2020 “Best Places to Work for Disability Inclusion” as part of the Disability Equality Index (DEI) – a joint initiative of Disability: IN and the American Association of People with Disabilities (AAPD). Promoting Diversity, Equity, and Inclusion in Our Communities Globally, Marriott hotels support the company’s vision to create a diverse and inclusive environment. For example, in early 2020, the W Mexico City hosted the “Gráfica Tres21” art exhibition, which highlighted artwork made by 15 artists from the Mexican School of Down Art of the John Langdon Down Foundation. Room for All We continue to work closely with the disability community during our development of the “Room for All” initiative, where we are evaluating room design concepts to dramatically improve the travel experience for guests with disabilities. This includes offering new features such as voice-activated technology to control room temperatures or lights and room layouts that provide mobility space for our guests who use wheelchairs. 600+ students hired by Marriott since the inception of Bridges from School to Work and 14 students hired by Marriott in 2020. In 2020, Marriott spent $1.1+ million with businesses owned by people with disabilities. 104 Business Councils across all continents and brands People with Disabilities Marriott actively explores opportunities to improve access for people with disabilities who provide products and services to work in and visit our hotels. Right: The Budapest Marriott Hotel (Budapest, Hungary) works with the Down Foundation to facilitate the hiring of associates with disabilities
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 44 Careers in Hospitality for Veterans In 2020, Marriott hired 300+ veterans amid the global COVID-19 pandemic. In 2021, we are continuing our efforts to achieve our goal of hiring at least 1,000 veterans annually. In 2020, the JW Marriott San Antonio Hill Country Resort & Spa partnered with Hiring our Heroes, to offer six weeks of on-the-job experience for military spouses. Spouses observed and worked in our Human Resources, Accounting, and Loss Prevention departments to gain hospitality industry experience. Hotels for Heroes Through our partnership with the Fisher House Foundation’s Hotels for Heroes program, over 1,600 room nights were provided to the families of military service members undergoing surgery in the U.S. with 5,166,500 donated loyalty points in 2020. Through these donated loyalty points, 247 military families were provided room nights, which amounted to a cost savings of $416,592 for those families. Supporting Veteran Organizations In 2020, Marriott’s U.S. hotels collaborated with over 40 veteran-specific organizations to support our veterans during the COVID-19 pandemic. Through these engagements, we donated over $70,000 in cash and in-kind donations, and approximately 200 associates volunteered approximately 250 hours. At the JW Marriott Orlando, Grande Lakes® and The Ritz-Carlton® Orlando, Grande Lakes, associates donated clothing, bedding, toys, personal care products, and other items to Veterans of America. Veterans Marriott actively works to recruit and support U.S. military veterans. Our company culture and values are well-suited and aligned for those who have served, and we in turn value their skills and experience. To support our veteran hiring goals and objectives, we developed various partnerships with veteran organizations in the local communities where we do business and have created tools and resources to assist hiring managers with veteran recruitment efforts. Supplier Diversity In 2020, Marriott spent nearly $7.9M with businesses owned by veterans and service-disabled veterans. Right: The Gaylord Opryland Resort & Convention Center (Nashville, Tennessee, United States) donates gifts through the United Service Organizations (USO) for military families
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 45 Refugee Hiring Marriott is a top employer of International Rescue Committee (IRC) clients in the United States. The IRC responds to the world’s worst humanitarian crises and helps individuals survive, recover, and rebuild their lives. Their programming supports economic recovery, education, health, and skills training to help resettled refugees recover and thrive. Between 2018 and 2020, Marriott hired 182 clients across the IRC network. Capacity Building for Resettled Refugees In 2020, Marriott continued to support IRC’s Hospitality Link program in Dallas, Texas; San Diego, California; and Elizabeth, New Jersey. The program is designed to provide skills development training to resettled refugees, while introducing them to careers in the hospitality industry, as well as providing life skills and English language classes. In 2020, Hospitality Link’s Dallas, San Diego, and Elizabeth programs served 114 resettled refugees, placing 71% in jobs, despite the economic slowdown. Representing 18 countries, 46% of the participants were women and 54% were men. These participants varied in educational and professional backgrounds, with some never having received formal education, and others having graduate degrees. Despite the challenges of the pandemic, the Hospitality Link program pivoted to a remote service delivery model and, in some cases, offered self-paced trainings, allowing increased access for clients who may have otherwise been unable to participate. Early in the pandemic, the IRC invested in the digital literacy of clients and access to technology. Hospitality Link also incorporated COVID-19 health and safety lessons into the curriculum, which were customized by city. In addition to training, Marriott’s funding enabled the IRC to provide holistic support to their refugee clients during the pandemic, including assisting 713 new American clients with filing for unemployment insurance and gaining access to other public benefits, as well as providing one-on-one financial coaching to 420 clients. Armenia-Georgia Business Council In 2020, through the Armenia-Georgia Business Council, the Armenia Marriott Yerevan provided complimentary hotel rooms for 168 women and children refugees from Nagorno-Karabakh. The hotel also provided mobile phones to the school-aged children to participate in online classes while staying at the hotel. Refugees By providing skills development and training for jobs in our industry, we help empower resettled refugees to create a positive future for themselves, their families, and their communities in the U.S. and beyond. Left Top: Associates at the Brussels Marriott Hotel Grand Place (Brussels, Belgium) donate supplies to refugees Left Bottom: IRC Hospitality Training Program participant
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 46 Supporting Youth Across the Globe We continue to support programs that strive to prepare youth for jobs in the hospitality industry. Through our work with The Global Travel & Tourism Partnership (GTTP), Marriott aims to inspire and enable hundreds of thousands of young people in secondary schools and universities around the world to build careers in travel and tourism. In 2020, Marriott’s funding helped provide training for more than 1,800 teachers across 15 countries, benefiting more than 4,000 schools and over 740,000 students. In response to the COVID-19 pandemic, there was an increased focus in online training and webinars, which allowed an additional 6,000 students from more than 100 countries to access the curriculum entirely online. As part of a collaboration with the Sustainable Hospitality Alliance, Marriott and several other hotel companies joined together to create an industry-relevant skills curriculum, to better prepare young people for on-the-job training and improve opportunities for job placements. To support industry and company efforts in this space, we support the Alliance’s Youth Employment Program (previously known as Youth Career Initiative), a three-month employability program, equipping vulnerable young people with the core skills and practical experience they need to start their career. In 2020, even with major disruptions and closures due to the COVID-19 pandemic, more than 180 young people were trained at 31 Marriott hotels across India, Vietnam, and Mexico. U.S. and Canada American Hotel & Lodging Association (AHLA) Foundation: Opening Doors to Opportunity Since 2017, we have pledged to provide $50,000 each year over the next five years to the AHLA Foundation’s Opening Doors to Opportunity program to support academic scholarships, professional development, and research opportunities in the travel and tourism industry. Marriott’s support has enabled the Foundation to launch a COVID-19 Relief Fund, which provided more than $3.5 million worth of free education resources to help furloughed employees and establish the No Room for Trafficking Campaign to advance training and education to prevent human trafficking in the lodging industry. In 2020, the Foundation served over 20,000 individuals through its portfolio of programs. Global Voyage Leadership Development Program The Global Voyage Leadership Development program, initially launched by Marriott in 2013, was designed with the next generation of university graduates in mind. It offers a combination of hands-on, discipline-specific training and a leadership- focused curriculum, all accessed through custom technology. Prince’s Trust In partnership with Prince’s Trust Canada, Marriott hosted the Discovery Hospitality program at four Edmonton hotels in Alberta, Canada. Hotel leaders provided 21 youth with training on the hospitality industry, including on-site and interviewing skills. ProStart In 2019, Marriott launched a pilot program across five states and Washington, D.C. with the National Restaurant Association Educational Foundation’s ProStart program to support student exploration of restaurant management and culinary arts careers. Marriott provided coaches, mentors, and volunteers, participated in chef demos and school visits, and hosted property visits and job shadowing programs. By year-end 2020, over 2,000 students participated in the program from 22 schools across 13 states. Youth Marriott supports youth development and empowerment across the globe, supporting global, national, and local partnerships that connect with schools and youth-based organizations to provide career mentoring, career exploration, job shadowing, skills training, and work-study opportunities. Below: Youth training at the JW Marriott Hotel Quito (Quito, Ecuador)
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 47 Succeed Through Service Program The Ritz-Carlton’s signature Succeed Through Service program mentors students in disadvantaged communities to understand the value of giving back to their community, and learn valuable life skills that will help them forge a path of success. In 2020, we engaged over 2,000 youth. Caribbean & Latin America National Learning Institute In collaboration with Costa Rica’s INA (National Learning Institute), The Westin Reserva Conchal, an All-Inclusive Golf Resort & Spa aims to prepare youth in Costa Rica for jobs in the hospitality industry. The ‘Dual Education’ program provides a holistic learning experience, aimed at preparing youth for future job opportunities in the hospitality industry. To date, over 230 students have graduated in the program and 32 were enrolled in 2020. After graduation, 80% of students have secured full-time jobs at The Westin Reserva Conchal. Asia Pacific WISE Foundation The Indonesia Business Council engages with Bali WISE Foundation, providing an intensive six-month skills training for marginalized women in Indonesia. Through this partnership, Marriott and the WISE Foundation aim to prepare the young women for an independent life regardless of their origin, through conducting free courses in English, basic computing, hospitality, and business skills. Joining Hands Since 2016, Le Méridien ® New Delhi has teamed up with Joining Hands to successfully provide 100 women with hospitality skills management training. Joining Hands focuses on making less privileged youth financially independent by providing them a platform to harness and develop their skills and potential. Europe, Middle East, & Africa Supporting Youth Throughout Europe Due to COVID-19’s significant impact on our business, the temporary closure of hotels across our portfolio, and reductions in staff, we were unable to meet our goal of providing career development opportunities for 40,000 young people in Europe by the end of 2020. However, we have made significant progress. Between 2015 and 2020, Marriott International in Europe offered 36,000 training opportunities, in the form of work experience placements and apprenticeships, giving young people an invaluable first step into employment and exposure to an array of professional expertise and stimulating experiences. As we move forward, we will focus our efforts on attracting, developing, and providing opportunities in our hotels for young people. We know that the younger generation has been disproportionately impacted by the pandemic and we strongly believe that our support will equip young people with the skills and confidence to make the move into work. Tahseen In the Middle East, we continued to grow our Tahseen program – a hospitality management development plan focused on fast-tracking Arab nationals as the next generation of leaders and General Managers within the region’s hospitality industry. In collaboration with Helwan University and the Professional Development Foundation, Marriott has created a Bachelor of Hotel Operations Management Degree program to further enhance tourism education in Egypt. The program aims to provide students with practical exposure to working within the industry in addition to theoretical learning. As of year-end 2020, nearly 150 students at 13 participating Marriott hotels in Egypt were undergoing training. Right: Associates from the JW Marriott Marquis ® City Center Doha (Doha, Qatar) speak to students at Stenden University Qatar
2021 SERVE 360 REPORT Associates at the Kochi Marriott Hotel (Kerala, India) pledge to prevent human trafficking WELCOME ALL AND ADVANCE HUMAN RIGHTS
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 49 Human Rights Council Marriott’s executive-level Human Rights Council advances Marriott’s human rights policies and programs and leads successful execution of the company’s broad human rights strategy. Drive accountability for the company’s human rights strategy regionally and within business operations Support human rights-related awareness, education, and monitoring programs Report on human rights strategy results Provide direction to regional and functional teams on execution of strategy and programs Human Rights As a leader in the travel and tourism industry, Marriott International has prioritized the fight against some of the industry’s highest-risk and most pressing issues, including human trafficking, child sexual exploitation, and forced labor. Marriott strives to uphold and respect human rights through its human trafficking awareness and prevention initiatives and collaboration with key partners. Human Trafficking Awareness Training Since 2017, human trafficking awareness training has been a mandatory requirement for all on-property associates across both managed and franchised hotels. Marriott’s comprehensive training is available in 17 languages and addresses human trafficking, child exploitation, and forced labor with the goals of raising awareness of all forms of human trafficking and teaching associates how to identify and respond to potential indicators of human trafficking. In 2019, Marriott began to enhance and develop the next generation of its human trafficking awareness training. Using associate feedback and support from nonprofit partners, Marriott is updating discipline-specific trafficking indicators for lower-touch and higher-tech operating environments, leveraging scenario-based learning to simulate real-world situations, and providing additional guidance to managers who receive reports of potential trafficking. We look forward to launching the new version of the training in 2021. In 2020, we also expanded our training to a broader audience by partnering with the American Hotel and Lodging Association (AHLA) Foundation and ECPAT-USA to create and provide cost-free training materials to our other industry partners. AHLA reported that an additional 382,728 hotel workers have accessed the human trafficking awareness training since it was made available. Left: Associates at the Le Royal Méridien Beach Resort & Spa (Dubai, UAE) pledge to prevent human trafficking 2025 Human Trafficking Awareness Training Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to have 100% of on-property associates complete human rights training, including on human trafficking awareness, responsible sourcing, and recruitment policies and practices. In 2020, approximately 97,000 additional associates across both managed and franchised properties globally were trained on human trafficking awareness during the calendar year, for a total of nearly 825,000 associates trained since 2016.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 50 Raising Awareness at Our Hotels In 2020, the Sheraton Puerto Rico Hotel & Casino teamed up with the Ricky Martin Foundation, a nonprofit, nongovernmental institution dedicated to promoting, defending, and educating on human rights to promote dignified treatment, equal opportunities, and the inclusion of all people. The Ricky Martin Foundation hosted educational chats with all hotel departments and raised money to support their work in continuing to create awareness and preventing human trafficking. Human Rights Risk Assessments Marriott implements an ongoing risk management process to identify, prevent, and mitigate relevant human rights risks. Our internal audit department conducts an annual Ethical Conduct Survey across a broad section of managed associates, including officers and senior managers, to assess compliance with the company’s Ethical Conduct Policy. Since 2017, we have included human rights criteria in our Internal Quality Audit Property Certification Survey to comply with the human trafficking training requirement and ensure that our properties are meeting specific requirements. We also work collaboratively with peers and industry associations, including the Sustainable Hospitality Alliance and World Travel & Tourism Council, to assess, identify, and address relevant human rights issues that affect our industry. As we have identified human trafficking as a priority workforce risk that can affect our business operations and supply chains, Marriott will continue to mandate our human trafficking awareness training program for managed and franchised properties globally and enhance our training and resources to meet the evolving needs of our stakeholders and emerging trends in the field. Marriott will also continue to collaborate with external experts and industry peers to combat human trafficking and identify and address other relevant human rights issues that affect the hospitality industry. The Importance of Incident Reporting We provide managed associates with a variety of means, including anonymous channels, to report illegal, abusive, or unethical behavior. Marriott’s “open-door” policy encourages associates to discuss concerns with their manager, but other reporting options include going to any manager, a Human Resources representative, or corporate Associate Relations representative. If the behavior involves a manager or supervisor to whom the associate directly or indirectly reports, alternative reporting options are available. Associates may also report confidentially and anonymously through Marriott’s 24-hour toll-free Business Integrity Line (BIL), accessible by phone, by email, or online; the BIL phone number and web address are included in the associate handbook. The company does not tolerate any retaliation against individuals who raise concerns in good faith and has non- retaliation policies in place to protect associates from any adverse actions. Marriott also has a crisis reporting protocol that includes a 24-hour Crisis Hotline managed by independent third parties and available for global properties to access. Since 2006, Marriott has leveraged the Marriott Incident Reporting Application (MIRA), an internal online system for gathering and reporting security-related incidents, including human trafficking, for properties managed by Marriott outside of the United States. Managed properties are required to enter incidents into MIRA within 24 hours of the incident. Critical incidents, including suspicious activity around human trafficking, are flagged in the system for follow-up and investigated by regional Global Safety and Security Directors. Marriott was honored to be named by ECPAT-USA as a 2020 Top Member of The Code for our commitment to prevent the sexual exploitation of children in travel and tourism and our work to integrate child protection practices into all aspects of our business. 2025 Human Rights Criteria Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to enhance or embed human rights criteria in our recruitment and sourcing policies and work with our industry to address human rights risks in the construction phase. Over 5,000 associates worldwide have completed procurement training, which includes content on human rights, and 91 contracts negotiated and signed by Marriott’s central procurement group included human rights criteria in 2020. In 2021, Marriott plans to also launch additional human rights-related training programs, including an updated Procurement 101 training with enhanced content around human rights, supplier diversity, and sustainability. Left: Associate at the Sheraton Puerto Rico Hotel & Casino (San Juan, Puerto Rico) wearing a Ricky Martin Foundation shirt
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 51 A21 Marriott collaborated with A21 to promote traveler-facing anti- trafficking posters, which were developed with Polaris, ECPAT-USA, and A21, and help raise awareness of common indicators to enable travelers to spot potential trafficking situations. Global Fund to End Modern Slavery (GFEMS) Marriott and GFEMS partnered with the University of Maryland Support, Advocacy, Freedom, and Empowerment (SAFE) Center to pilot a skills-based hospitality sector curriculum, designed specifically for survivors of human trafficking. American Hotel & Lodging Association (AHLA) and ECPAT-USA Marriott expanded human trafficking awareness training to a broader audience by partnering with the AHLA Foundation and ECPAT-USA to provide cost-free training materials to our other industry partners. Polaris Marriott collaborated with Polaris to develop the next generation of Marriott’s human trafficking awareness training, which includes scenarios in training informed by actual incidents in hotels being reported to the National Human Trafficking Hotline. Immigration Equality (IE) Marriott partnered with IE to extend free legal services to LGBTQ asylum seekers fleeing persecution from their countries of origin. Sustainable Hospitality Alliance Marriott is a founding member of the Alliance and actively participates in their human rights working group. Partnering to Advance Human Rights In 2020, Marriott continued to engage and collaborate with strategic external partners to support and develop innovative programs that advance human rights. Marriott also collaborates with industry peers and associations to seek strategies and solutions that mitigate human rights risks and promote responsible business practices. In addition to these partnerships, Marriott’s Regional Vice President of Human Resources for Canada sits on the advisory board for CivicAction Anti-Human Trafficking Council, one of the largest organizations focusing on the fight against human trafficking in Canada. Through this relationship, Marriott has engaged with other companies across the tourism industry to develop resources, social media and internet awareness campaigns and education to end human trafficking. Supporting LGBTQ Asylum Seekers Marriott continued its partnership with Immigration Equality (IE) to support their work to extend free legal services to LGBTQ asylum seekers fleeing persecution from their countries of origin. In 2020, Marriott’s support helped IE screen, vet, and directly represent or place 155 clients with pro bono counsel, enabled staff to answer over 7,000 calls for help to their international hotline, supported attorneys in answering over 900 international inquiries from LGBTQ people fleeing persecution, and sponsored in-depth intake interviews with 122 potential clients. Marriott’s support helped enable IE to serve their community at an especially crucial time, as the COVID-19 pandemic caused IE’s volume of hotline calls to double. Despite this, IE was still able to support LGBTQ individuals from 28 states and 79 countries, maintaining a 99%-win rate in their cases. Global Equality Fund Marriott continued its support for the Global Equality Fund (GEF), a public-private partnership dedicated to advancing and defending human rights and the fundamental freedoms of LGBTQ people globally. Marriott’s support helps enable GEF’s funding of local initiatives run by civil society organizations that protect LGBTQ populations from violence, abuse, criminalization, and stigma – and empower local LGBTQ communities. In 2020, Marriott’s support was targeted to GEF’s Social Inclusion work, which supported over 350 individuals to be trained in cultural competency, 1,951 individuals to be referred to social services, and nine journalists to be trained in social inclusion best practices to inform their reporting. Safety Alert Devices In 2020, we continued our strong approach to safety for associates and guests by making associate alert devices a new standard across managed and franchised hotels in the U.S. and Canada, with an ongoing technology rollout through 2022. Additionally, Marriott has a longstanding expectation that all associates working at Marriott hotels are treated with dignity and respect. A central part of those policies is Marriott’s goal of an environment free from sexual harassment by any associate, supervisor, manager, guest, vendor, client, or customer. Marriott’s policy is to train nonmanagement and management associates in harassment prevention and the company offers online and classroom training courses. Marriott does not require mandatory arbitration of sexual harassment claims.
2021 SERVE 360 REPORT ESG PROGRESS AT MARRIOTT INTERNATIONAL → 52 Peace & Cultural Understanding The simple act of travel, experiencing new places and people, is one of the most powerful tools for advancing peace and cultural understanding. Through our inclusive guest experiences, we continue to grow cultural competence and deliver tailored, inclusive experiences for the diverse populations of guests that we serve. Inclusive Guest Experiences Marriott believes that providing inclusive guest experiences is a competitive advantage in every market that we serve. Marriott’s Multicultural Affairs Team is a dedicated group that advances our cultural competency program and works in close collaboration with individual properties. This team also manages many of our relationships and engagements with external diversity partners. In 2020, Marriott continued its ‘Culture Days’ program through virtual engagements to foster multicultural understanding, ensure welcoming environments, and increase guest satisfaction. Each year, Marriott associates and customers participate in Culture Day sessions, featuring best practices and field trips to “taste, smell, see, hear, and feel” various cultures. In 2020, Marriott’s Cultural Competence program reached over 2,000 associates, delivering 15 virtual Culture Day sessions. The company also launched Culture Day programs in Zurich, Munich, and Puerto Vallarta. 2025 Cultural Understanding Goal As part of our 2025 Sustainability and Social Impact Goals, Marriott aims to provide $500,000 toward partnerships that drive and elevate travel and tourism’s role in cultural understanding. In 2020, Marriott continued its partnership with the U.S. Institute of Peace (USIP) and focused on expanding the Generation Change Fellows Program, a youth-led and youth- focused peacebuilding program in conflict-affected countries. The partnership with USIP helped launch the Youth Peacebuilding Fund to support Generation Change Fellows who are demonstrated bridge-builders, dedicated to promoting peace in their communities. In 2020, USIP selected nine youth-led organizations as recipients of the Peacebuilding Fund and worked with them to adjust their projects and implement health and safety protocols needed due to the pandemic, in many cases planning for remote and virtual training sessions. Left: Generation Change Fellows practice active listening skills that they will apply to their work as youth leaders
2021 SERVE 360 REPORT Courtyard Penang (Penang, Malaysia) GOVERNANCE
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 54 2021 SERVE 360 REPORT Marriott’s Board of Directors has six standing committees, each governed by a committee charter: Nine of our 13 directors are independent, and the Audit, Human Resources and Compensation, Nominating and Corporate Governance, and Technology and Information Security Oversight committees are composed solely of independent directors. Consequently, the independent directors oversee such critical items as the company’s financial statements, executive compensation, the selection and evaluation of directors, the development and implementation of our corporate governance programs, and technology, information security, and privacy. Board Diversity Marriott’s Board of Directors believes that the company’s directors, considered as a group, should provide a mix of backgrounds, experience, knowledge, and abilities, and should reflect the diversity of the company’s stockholders, associates, customers, and guests, as well as the communities in which we operate. As such, the Nominating and Corporate Governance Committee considers the appropriate mix of members that represent a diversity of background and experience. 54% of Marriott’s Board members are women and / or people of color . Board Oversight Audit Committee Inclusion and Social Impact Committee Human Resources and Compensation Committee Technology and Information Security Oversight Committee Nominating and Corporate Governance Committee Executive Committee Below: Moxy Milan Malpensa Airport (Somma Lombardo, Italy) * Content on this page represents information and data as of September 2021.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 55 2021 SERVE 360 REPORT Business Ethics Marriott maintains policies and training programs targeting anti-corruption as a key component of our robust Global Ethics and Compliance program. We use a risk-based approach to perform anti-corruption risk assessments, determine proper internal controls, including policies and procedures, provide multilayered training and assess effectiveness through auditing and testing to update and enhance the program as needed. Policies and Procedures We strive to maintain our strong tradition of integrity, one of Marriott’s core values, in everything we do to provide associates, customers, and business partners with a fair, honest, and ethical environment. We have policies prohibiting commercial bribery and bribery of government officials. These policies require associates to comply with all applicable anti-corruption laws, including the U.S. Foreign Corrupt Practices Act (“FCPA”), the U.K. Bribery Act, the PRC Anti-Unfair Competition Law (China), and the laws of other countries where we have business operations. Our policies prohibit making or receiving improper payments or gifts, and further prohibit giving or offering anything of value to foreign officials for the improper purpose of influencing any decision to benefit the company or to encourage unlawful conduct. Additional guidance regarding our commitment to ethical conduct, honesty, fair dealing, and legal compliance is described in our Ethical Conduct Policy and Business Conduct Guide (BCG). The BCG provides an overview of key ethics and legal compliance policies, as well as guidance on not only what is legal but also what is right. Associates are required to read both documents and fully adhere to our ethics and legal compliance policies. It is vitally important for them to understand Marriott’s ethical and legal standards so they can make the right business decisions and uphold our tradition of integrity. Training and Awareness Marriott employs a multilevel approach to training and awareness, including in-person instructor-led training, online training courses, and instructor-led webinars. Our anti-corruption focused training includes all these modalities and most associates that are manager level and above at Marriott managed hotels globally are required to certify completion of online anti- corruption training annually. Our instructor-led webinar training program is delivered periodically to key managers in high-risk jurisdictions on a risk-based basis. In addition, new executive and leadership team members receive small group training sessions to promote discussion and full understanding of our anti-corruption policies. We reinforce our training and Marriott’s culture of integrity with awareness messages directly from our leadership to our global workforce. Additionally, all associates upon their hiring must review a mandatory Ethics and Compliance video, “How We Do Business,” that describes the company’s longstanding tradition of uncompromising ethics and integrity. On an annual basis, our Internal Audit Department also conducts two Legal and Ethical Conduct Surveys. The first survey is distributed to Marriott’s Top 250 leaders as well as the Board of Directors and select General Managers of managed hotels. The purpose of this survey is to certify their compliance with laws and regulatory requirements, and Marriott’s standards and policies. The second survey, which is an anonymous survey, is administered to all non-hourly associates, excluding those that participated in the first survey, and is designed to more broadly understand associate perceptions of Marriott’s ethical culture. As of year-end 2020, more than 29,000 managers have received global online anti-corruption training and thousands of other leaders attended instructor-led trainings in high-risk jurisdictions. In addition, as part of our business ethics training, approximately 11,000 associates have completed the annual online global trade sanctions training. Risk Assessments Marriott’s Internal Audit Department performs an annual risk assessment and identifies properties to be audited based on specific anti-corruption risk factors. The Internal Audit Department in coordination with Marriott’s Law Department developed and deployed a global anti-corruption property review program designed to detect issues and provide remediation actions as needed. Periodically, Marriott also issues property-level guidance to address anti-corruption risk, including protocols to mitigate third-party risk. We will continue to evaluate opportunities to improve Marriott’s compliance posture by continuously focusing on opportunities, methods, and tools for measuring, assessing, and auditing effectiveness of the compliance program (including periodically using third-party consultants and external benchmarking data). Reporting Concerns Associates are encouraged to report suspected legal, ethical, and policy violations through a number of reporting channels, including the Business Integrity Line or via email to Internal Audit. Marriott has a “No Retaliation” Policy and prohibits retaliation against associates who in good faith report suspected violations of our ethical standards or violations of law through any of our reporting channels or to government regulators or law enforcement agencies. Marriott also does not permit retaliation against an associate who refuses to participate in an activity that would result in a violation of our ethical standards, company policy, or a violation of law. Marriott’s Business Conduct Guide is made available in 15 languages globally at managed properties and to managers worldwide. An abridged, quick reference companion is also available in 31 languages globally at managed properties for nonmanagerial associates.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 56 2021 SERVE 360 REPORT Data Privacy and Cybersecurity Marriott has comprehensive global privacy and information security programs in place, including policies and procedures governing the collection, use, disclosure, sharing, retention, and security of its customers’ personal data. Board Oversight Board of Directors (Technology and Information Security Oversight Committee) Marriott’s Board of Directors’ Technology and Information Security Oversight Committee (established in 2021) oversees the company’s information security, privacy and technology-related risks, and assists the Board in overseeing management efforts to monitor and mitigate those risks. Global Privacy and Information Security Governance Board Marriott’s Global Privacy and Information Security Governance Board is responsible for providing executive-level oversight and strategic risk management with respect to the Global Privacy and Global Information Security Programs. Global Privacy and Information Security Oversight Committee Marriott’s Global Privacy and Information Security Oversight Committee and its Continent Committees ensure that the privacy and security risk management strategy set by the Governance Board is implemented throughout Marriott by verifying and generally ensuring that Marriott has effective policies, procedures, and practices in place. Privacy Program Marriott is committed to communicating and adhering to privacy principles that are consistent with legal and regulatory standards embedded within privacy laws around the world. Marriott has standard operating procedures, policies, and guidelines governing the collection, use, disclosure, transfer, storage, and retention of its customers’ personal data. Marriott’s Privacy Center includes the company’s Global Privacy Statement, which explains how the company collects, uses, discloses, transfers, and retains customer data. The Privacy Center also provides customers with the opportunity to exercise their privacy rights and update communication preferences. Marriott has a dedicated Global Privacy Office, which operates under the leadership of Marriott’s Global Compliance Counsel and Privacy Officer. The Global Privacy Office oversees functions such as handling customer privacy inquiries, executing Privacy Impact Assessments (PIAs), and monitoring the company’s overall compliance with evolving global privacy laws and regulations. Cybersecurity Program Marriott employs appropriate technical and organizational measures and processes to control and protect Marriott’s network, applications, and information – including customer data held on Marriott’s systems. Marriott has a dedicated Global Information Security Team under the leadership of Marriott’s Chief Information Security Officer (CISO), which focuses on application, network, and system security. This team is also responsible for information security compliance, training and awareness, monitoring, and incident response. Marriott’s information security program is designed to implement a multilayered approach to security and employs various technologies and processes to protect systems and data and includes ISO 27001 controls and ISO 27002 guidelines in its overall framework. Among other measures, Marriott is Payment Card Industry (PCI) compliant where required and maintains a documented vulnerability management program, endpoint monitoring, and alerting capabilities, along with an up-to-date global incident response plan. Information Security Risk Assessments Marriott’s Global Information Security (GIS) Risk Management Team conducts risk assessments against Marriott's critical applications at least annually and with significant changes to the internal operating or external environments. The GIS Team is also responsible for conducting third-party vendor security assessments. This includes performing security vulnerability scans on third-party vendor websites and other public-facing servers where Marriott data may be stored or transmitted. Associate Training and Awareness Marriott’s Global Privacy Office and Global Information Security Teams provide training and awareness about the importance of data privacy and information security throughout the company. On the privacy side, Marriott provides mandatory Global Privacy online training for above-property and managed hotel associates, and for franchise employees who are likely to handle personal data. On the information security side, Marriott provides a separate mandatory online Information Security & Protection Training for associates who are likely to handle personal data and enhanced targeted training for associates who handle payment card data. Additional programs include phishing simulation exercises, quarterly emails, communications on emerging risks, and annual programming during Cybersecurity Awareness month. Marriott reviews both its Global Privacy and Information Security & Protection Training online programs at least annually.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 57 ESEG PROAR TMS ORINOL In 2020, the majority of our advocacy was focused on supporting our business, owners, franchisees, and impacted associates in COVID-19 pandemic-related relief and recovery measures at the local, state, and federal level. While we understand nothing can replace a robust travel economy, the policies we pursued helped provide a bridge and ensure government support for stakeholders and industry. Marriott is committed to participating in the political process to promote its interests and business objectives, without regard to political preferences of its executives. We therefore support candidates seeking elected office at the federal, state, and local level in the United States through Marriott’s employee-funded Political Action Committee. Marriott is a member of industry and business associations, including the Business Roundtable, U.S. Chamber of Commerce, the World Travel & Tourism Council, American Hotel & Lodging Association, the World Economic Forum, and the U.S. Travel Association. Some of these U.S.-based associations also participate in lobbying and policy advocacy activities in the U.S. and are active in advancing public policy priorities. Marriott’s Chief Global Communications & Public Affairs Officer also serves as a member of the U.S. Travel and Tourism Advisory Board. Social Advocacy Positions Through our public policy support and guided by our Serve 360 platform and core values, we aim to engage in a wide range of issues that are important to key stakeholders, including customers and associates. LGBTQ Equality Marriott is a member of the HRC Global Business Coalition, a forum for major multinational businesses to advance workplace protections for LGBTQ associates worldwide. We have endorsed the Equality Act to ensure fair treatment and workplace protections under the law for members of the LGBTQ community. Support for Dreamers In 2017, Marriott joined business leaders from across the country to sign an open letter calling for the immediate passage of legislation to protect “Dreamers”. Since that time, Marriott has continued to advocate for a permanent legislative solution to this issue as a member of the Coalition for the American Dream and recently supported passage of the American Dream and Promise Act. We continue our decades-long advocacy for comprehensive immigration reform. Racial Equity & Justice and Access to Voting Marriott has always encouraged civic engagement and voting in the U.S. on the local and national level. We believe that voting and access to free and fair elections are fundamental underpinnings of our democracy and reinforce our country’s stability. To support access to voting, Marriott has supported associate communications campaigns in advance of elections in the United States, including providing resources on where to register and vote. Marriott believes expanding access to voting will increase voter participation, strengthen our democracy, and ensure that more voices are heard. We oppose any effort to restrict voting rights or access to polls as contrary to the spirit of democracy. Political Action Committee The Marriott International, Inc. Political Action Committee (MARPAC) is a nonpartisan PAC (funded by voluntary contributions made by associates). We strive for a 50/50 split in contributions to Democratic and Republican federal candidates. In the 2019- 2020 election cycle, MARPAC's total disbursements were $417,816, with $204,000 distributed directly to federal candidates. Of the $204,000 in contributions to federal candidates, 55% went to Democrats and 45% to Republicans. Following the events at the U.S. Capitol on January 6, 2021, the company made the decision to pause MARPAC contributions to Members of Congress who did not vote to certify the presidential election results. While MARPAC’s historical contributions to these individuals were not sizable, it was a principled decision to keep our political giving aligned with our values. The 2020 CPA-Zicklin Index of Corporate Political Disclosure and Accountability awarded Marriott the First Tier designation for our political disclosures. The company's 2020 CPA-Zicklin index score for political disclosure was 84.29 (59 out of 70 points), and we ranked in the top quarter of 492 S&P 500 companies that were reviewed. Public Policy Marriott maintains a robust public policy agenda, engaging leaders on a wide range of issues, including policies on visas and entry to facilitate global travel, immigration reform, civil rights and nondiscrimination, travel infrastructure, and sustainability. We aim to be transparent in our practices and believe that political participation at all levels of government is important to our business.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 58 ESEG PROAR TMS ORINOL Success Is Never Final Nurture Our World • Cr eate and deliver tools and resources to encourage remote and virtual volunteerism • Identify n ew skills-based volunteer opportunities for associates • Acceler ate leading-edge practices that protect natural capital and increase resiliency Sustain Responsible Operations • Establish a scien ce-based target via the Science Based Target initiative (SBTi) • In crease renewable electricity • Implement Hot el Waste Measurement Methodology to develop waste baselines and track progress toward waste and food waste reduction goals Empower Through Opportunity • Expand par tnerships with diversity, equity, and inclusion organizations to develop opportunities for all stakeholders • In crease the number of diverse associates, leaders, suppliers, and owners throughout the company Welcome All and Advance Human Rights • R oll out updated human trafficking awareness training and accompanying resources • Ev aluate and update human rights policies and programs to reflect evolving needs and emerging trends • Cr eate unique, inclusive experiences that embrace the rich diversity of our guests and associates around the world At Marriott, we strongly believe that “success is never final.” Since our humble beginnings as a nine-stool root beer stand in 1927, this belief has helped transform Marriott into the world’s leader in hospitality. Although the impacts of the COVID-19 pandemic have created challenges for our company, the pandemic has also shown us that our Serve 360 platform is even more important as we continue to navigate through the pandemic. We will continue to address significant global issues by implementing actionable solutions and enhancing impactful programs for the environment and the communities where we do business. We will also remain focused on the three key pillars of our business – our associates, our customers, and our owners and franchisees. Through our efforts, and with support from stakeholders, we aim to fulfill our commitment of “doing good in every direction” and progress toward achieving our 2025 Serve 360 Goals. Connect with Us We invite you to connect, learn more, and partner with us on our journey to Serve Our World and achieve our 2025 Sustainability and Social Impact Goals. Facebook Instagram Twitter LinkedIn YouTube Heart of the House Chairman Bill Marriott’s Blog CEO Anthony Capuano's Blog Serve 360 Coordinates 2022 – 2025 Priorities
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 59 2021 SERVE 360 REPORT Performance Tables PROPERTY DATA 2020 Top Markets MARKETS T OTAL PROPERTIES T OTAL ROOMS United States 5 ,349 888 ,614 China 385 125 ,288 Canada 25 5 5 4,191 India 123 25 ,326 United Kingdom 108 20 ,500 MARKETS T OTAL PROPERTIES T OTAL ROOMS Germany 87 19 ,500 Mexico 92 18 ,196 United Arab Emirates 61 17 ,930 Japan 64 15 ,618 Spain 92 13 ,878 2020 Regional Presence REGIONS T OTAL PROPERTIES COMP ANY-OPERATED FR ANCHISED/LICENSED T OTAL ROOMS United States and Canada 5 ,534 814 4 ,720 92 4,090 Asia Pacific 843 7 00 143 237 ,044 Europe and Middle East & Africa 916 5 09 40 7 186 ,573 Caribbean and Latin America 258 126 132 5 2,582 Timeshare 91 91 22, 755 Total 7 ,642 2, 149 5 ,493 1 ,423,044 ECONOMIC DATA 2020 2019 2018 Total Revenue (million USD) $10 ,571 $20 ,972 $20 ,758 Community Investments (cash and in-kind donations million USD) $21 .2 $5 3.7 $47 .9 ENVIRONMENTAL DATA GHG EMISSIONS 2020 2019 2018 B ASELINE (2016) Scope 1 GHG Emissions (million MT CO2e) 0 .97 1 .32 1 .35 1 .24 Scope 2 GHG Emissions – Market Based (million MT CO2e) 4 .19 5 .48 5 .48 5 .30 Scope 2 GHG Emissions – Location Based (million MT CO2e) 4 .15 5 .48 5 .48 5 .30 Scope 3 GHG Emissions (million MT CO2e) 3 .46 4 .84 4 .79 4 .78 GHG Emissions Intensity* (kg per m2 of conditioned space) 85 .31 113 .43 115 .57 126 .21 * For a regional break down of GHG emissions intensity metrics, please see the “Energy and Emissions” section of the 2021 Serve 360 Report (p. 25). ENERGY CONSUMPTION 2020 2019 2018 B ASELINE (2016) Total Energy Consumption (million MWh) 13 .83 18 .49 18 .63 16 .39 Direct Energy Consumption (million MWh) 4 .86 6 .85 7 .00 6 .45 Indirect Energy Consumption (million MWh) 8 .97 11 .64 11 .63 9 .94 Energy Intensity* (kWh per m2 of conditioned space) 2 40.95 32 4.39 329 .33 334 .93 * For a regional break down of energy intensity metrics, please see the “Energy and Emissions” section of the 2021 Serve 360 Report (p. 26). WATER CONSUMPTION 2020 2019 2018 B ASELINE (2016) Total Water Consumption (million m3) 101 .33 133 .18 129 .20 130 .67 Water Intensity* (m3 per occupied room) 1 .1601 0 .7015 0 .7003 0 .8413 * For a regional break down of water intensity metrics, please see the “Water” section of the 2021 Serve 360 Report (p. 28).
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 60 ESEG PROAR TMS ORINOL SOCIAL DATA * GLOBAL ASSOCIATES ** 2020 2019 2018 Total Associates 321 ,000 4 18,000 405 ,000 Non-Management Associates 85 % 86% 85 % Management Associates 15 % 14% 15 % Voluntary Turnover (includes retirements) 19% 20% 20% U.S. ASSOCIATES 2020 2019 2018 Total Associates 98 ,000 136 ,000 136 ,000 Non-Management Associates 83% 83% 83% Management Associates 17% 17% 17% Voluntary Turnover (includes retirements) 15 % 17% 17% Men 46% 47% 46% Women 5 4% 5 3% 5 4% Employees Represented by Labor Unions 20% 16% 16% MANAGED ASSOCIATES BY REGION ** 2020 2019 2018 U.S. and Canada 111 ,000 15 2,000 15 2,000 Caribbean and Latin America 17 ,000 25 ,000 23 ,000 Asia Pacific 120 ,000 147 ,000 139 ,000 Europe and Middle East & Africa 7 3,000 94 ,000 91 ,000 Total 321 ,000 4 18,000 405 ,000 * For additional metrics related to employee diversity , please see the “Company Overview” (p. 6) and “Global Diversity, Equity, and Inclusion” (p. 36) sections of the 2021 Serve 360 Report. ** Includes associates at Marriott managed hotels outside the U .S. who are owner employees (2019 and 2018 metrics updated to reflect comparable values). Performance Tables
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 61 ESEG PROAR TMS ORINOL GRI Index Marriott’s Serve 360 Report follows the Global Reporting Initiative (GRI) disclosure framework. Our disclosures aim to provide stakeholders with information on our operations, strategy, and governance, as well as our approach to stakeholder engagement and reporting on environmental, social, and governance (ESG) topics. ORGANIZATIONAL PROFILE Indicator Description Response and / or References 102-1 Name of the organization Marriott International, Inc. (“Marriott”) 102-2 Activities, brands, products, and services 2021 Serve 360 Report (“Company and Report Overview”, p. 6) 2020 Annual Report (“Business”, p. 5-7 and “Business and Overview”, p. 26-27) Explore Our Brands 102-3 Location of headquarters Our corporate headquarters is located at 10400 Fernwood Road, Bethesda, Maryland, in the U.S. 102-4 Location of operations 2021 Serve 360 Report (“Company and Report Overview”, p. 6) 2020 Annual Report (“Business”, p. 5 and “Business and Overview”, p. 26 and 29) 102-5 Ownership and legal form Marriott is a publicly traded corporation in the state of Delaware, in the United States. 2020 Annual Report (p. 1) 102-6 Markets served 2020 Annual Report (“Business”, p. 5-7 and “Business and Overview”, p. 26-27) 102-7 Scale of the organization 2021 Serve 360 Report (“Company and Report Overview ”, p. 6 and “Performance Tables”, p. 60) 2020 Annual Report (“Business”, p. 5-7, 11, and 26) Investor Fact Book 102-8 Information on employees and other workers 2021 Serve 360 Report (“Company and Report Overview ”, p. 6 and “Performance Tables”, p. 60) 2020 Annual Report (“Business”, p. 11) 102-9 Supply chain Globally, our hotels procure from thousands of suppliers. Products and services are generally centrally contracted and locally sourced by hotels. Key procurement categories include furniture, fixtures, and equipment; operating supplies and equipment; food and beverage; hotel amenities; and corporate services. In 2020, our hotel and headquarters spend was approximately $4.4 billion*. 2021 Serve 360 Report (“Responsible Sourcing”, p. 32) Global Procurement Supplier Conduct Guidelines Animal Welfare Position Statement Responsible Seafood Position Statement General Disclosures * Number impacted due to CO VID-19.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 62 ESEG PROAR TMS ORINOL ORGANIZATIONAL PROFILE continued Indicator Description Response and / or References 102-10 Significant changes to the organization and its supply chain There were no significant changes to our organization or our supply chain during the reporting period. Please note, COVID-19 continues to have a material impact on our business, our company, and our industry. COVID-19 first impacted our business in Greater China beginning in January 2020, moved quickly into the rest of Asia Pacific and the European markets, and spread globally by March 2020. In April 2020, comparable systemwide constant dollar RevPAR experienced a record decline, decreasing 90% worldwide compared to the prior year period, and 27% of our hotels were temporarily closed. 2020 Annual Report (“Business”, p. 5 and 28-29) 102-11 Precautionary principle or approach 2021 Serve 360 Report (“United Nations Sustainable Development Goals”, p. 9 and “2025 Sustainability and Social Impact Goals”, p. 10) 2021 CDP Climate Change Response 2021 CDP Forests Response 2021 CDP Water Security Response 102-12 External initiatives Marriott participates in leading industry initiatives, including our affiliations with the Sustainable Hospitality Alliance and World Travel & Tourism Council (WTTC), to advance sustainability and social impact within the travel and tourism industry. Marriott is a founding member of WTTC’s Human Trafficking Task Force. Marriott also belongs to the Business Roundtable, the U.S. Council for International Business and participates in their CSR and Human Rights Committee, as well as the U.S. Chamber of Commerce Task Force to Eradicate Human Trafficking. 2021 Serve 360 Report (“United Nations Sustainable Development Goals”, p. 9; “Human Rights”, p. 49; and “Public Policy”, p. 57) Human Rights Policy Statement 102-13 Membership of associations Our company and executives regularly engage with allied trade associations and nongovernmental organizations through leadership roles on boards and executive committees. Marriott executives hold outside leadership roles at the World Economic Forum, WTTC, the Sustainable Hospitality Alliance (formerly known as the International Tourism Partnership), U.S. Council for International Business (USCIB), U.S. Travel Association, U.S. Travel and Tourism Advisory Board, Brand USA, and the American Hotel & Lodging Association (AHLA), including its state-level affiliates. 2021 Serve 360 Report (“Stakeholder Engagement”, p. 13) 2021 CDP Climate Change Response (p. 42-49) Partners in Diversity and Inclusion 2020 Modern Slavery Statement 102-14 Statement from senior decision-maker 2021 Serve 360 Report (“A Message From Our Chief Executive Officer”, p. 4) 2020 Annual Report (“Letter to Stockholders”, p. i-iv) 2021 Proxy Statement (“Letter from our Chairman and our Chief Executive Officer”) 102-15 Key impacts, risks, and opportunities 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10) Serve 360 Microsite 2025 Sustainability and Social Impact Goals 2020 Annual Report (“Risk Factors”, p. 12-23) 2021 CDP Climate Change Response 2021 CDP Forests Response 2021 CDP Water Security Response
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 63 ESEG PROAR TMS ORINOL ETHICS AND INTEGRITY Indicator Description Response and / or References 102-16 Values, principles, standards, and norms of behavior At Marriott, our compliance program’s theme is “How We Do Business Is as Important as the Business We Do.” This motto enunciates the company’s commitment to acting with integrity in all business dealings. 2021 Serve 360 Report (“Business Ethics”, p. 55) Business Conduct Guide Core Values and Heritage Serve 360 Policies and Position Statements 102-17 Mechanisms for advice and concerns about ethics 2021 Serve 360 Report (“Business Ethics”, p. 55) Business Conduct Guide (“Confidential Reporting and No Retaliation”, p. 4 and “Where to Go for Help”, p. 5) Business Integrity Line GOVERNANCE Indicator Description Response and / or References 102-18 Governance structure 2021 Serve 360 Report (“How We Execute Globally”, p. 12 and “Board Oversight”, p. 54) 2021 Proxy Statement (“Board Leadership Structure”, p.12) Board of Directors Committee Membership 102-20 Executive-level responsibility for economic, environmental, and social topics 2021 Serve 360 Report (“How We Execute Globally”, p. 12 and “Board Oversight”, p. 54) 2021 Proxy Statement (“Inclusion and Social Impact Committee”, p.27-28) 102-22 Composition of the highest governance body and its committees 2021 Serve 360 Report (“Board Oversight”, p. 54) 2021 Proxy Statement (“Board Leadership Structure”, p.12) Board of Directors Board Committees Committee Membership Documents and Charters 102-23 Chair of the highest governance body Mr. Marriott was elected Executive Chairman effective March 31, 2012, having relinquished his position as CEO. 2021 Proxy Statement (“Nominees to our Board of Directors”, p.17) Board of Directors 102-24 Nominating and selecting the highest governance body 2021 Proxy Statement (“Selection of Director Nominees”, p.16) Nominating and Corporate Governance Committee Charter 102-25 Conflicts of Interest Audit Committee Charter (“Related Parties; Conflict of Interest”, p.5) Governance Principles (“Ethics and Conflicts of Interest”, p. 6)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 64 ESEG PROAR TMS ORINOL GOVERNANCE continued Indicator Description Response and / or References 102-28 Evaluating the highest governance body’s performance Governance Principles (“Annual Evaluation”, p. 5) 102-35 Remuneration policies 2021 Proxy Statement (“Executive and Director Compensation”, p. 32 and 40-42) Executive and Director Compensation 102-36 Process for determining 2021 Proxy Statement (“Executive and Director Compensation”, p. 32 and 42) Executive and Director Compensation STAKEHOLDER ENGAGEMENT Indicator Description Response and / or References 102-40 List of stakeholder groups 2021 Serve 360 Report (“Stakeholder Engagement”, p. 13) 102-41 Collective bargaining agreements As of year-end 2020, approximately 20,000 associates were represented by labor unions in the U.S. 2020 Annual Report (“Human Capital Management”, p. 11) 102-42 Identifying and selecting stakeholders 2021 Serve 360 Report (“Stakeholder Engagement”, p. 13) 102-43 Approach to stakeholder engagement 2021 Serve 360 Report (“Our Company”, p. 6; “Stakeholder Engagement”, p. 13; and “Public Policy”, p. 57) 102-44 Key topics and concerns raised 2021 Serve 360 Report (“Our Company”, p. 6; “Stakeholder Engagement”, p. 13; and “Public Policy”, p. 57) REPORTING PRACTICE Indicator Description Response and / or References 102-45 Entities included in the consolidated financial statements 2020 Annual Report ("Notes to Consolidated Financial Statements", p. 52) 102-46 Defining report content and topic boundaries The Serve 360 Report and GRI Index were informed by a prior sustainability and social impact materiality assessment, which included interviews representing owners, customers, industry associations, and nongovernmental organizations. We also considered topics and information prioritized by ESG research firms, which represent the investment community. We selected a broad range of nongovernmental organizations to obtain perspectives on issues, including labor, climate change, water, waste, biodiversity, sustainable aquaculture, health and wellness, human rights, women’s empowerment, and workforce readiness, especially for disadvantaged youth.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 65 ESEG PROAR TMS ORINOL REPORTING PRACTICE continued Indicator Description Response and / or References 102-47 List of material topics In this GRI Index, we provide management approach disclosures for the following topics: • Economic: E conomic Performance, Indirect Economic Impacts, and Anti-Corruption • En vironmental: Energy, Water, Biodiversity, Emissions, Effluents & Waste, and Supply Chain Environmental Assessment • Social: E mployment, Occupational Health & Safety, Training & Education, Diversity and Equal Opportunity, Human Rights Assessment, Local Communities, Supply Chain Social Assessment, Customer Health & Safety, and Data Privacy 102-48 Restatements of information In 2020, Marriott restated its 2016 baseline carbon, energy, and water performance data. 102-49 Changes in reporting None during the reporting period. 102-50 Reporting period Our reporting period is calendar year 2020, except as otherwise noted. 102-51 Date of most recent report December 2020 102-52 Reporting cycle Annual 102-53 Contact point for questions regarding the report sustainability@marriott.com 102-56 External assurance We received third-party assurance for our greenhouse gas emissions, energy, and water performance data during the reporting period. 2021 Serve 360 Report (“Assurance Statement”, p. 85)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 66 ESEG PROAR TMS ORINOL ECONOMIC PERFORMANCE Indicator Description Response and / or References 201 Management approach 2020 Annual Report (“Business”, p. 5-12; “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, p. 26-33) 201-1 Direct economic value generated and distributed 2020 Annual Report (“Selected Financial Data”, p. 26) Nurture Our World (“Community Volunteerism and Investments”, p. 17) 201-2 Financial implications and other risks and opportunities for the organization’s activities due to climate change 2021 Serve 360 Report (“TCFD Report”, p. 79) 2021 CDP Climate Change Response 201-3 Defined benefit plan obligations and other retirement plans 2020 Annual Report (“Retirement Savings Plan”, p. 55) Marriott Retirement Savings Plan Management Approach Disclosures and Indicators: Economic INDIRECT ECONOMIC IMPACTS Indicator Description Response and / or References 203 Management approach 2021 Serve 360 Report (“Nurture Our World”, p. 14) 2025 Sustainability and Social Impact Goals 203-1 Infrastructure investments and services supported 2021 Serve 360 Report (“Nurture Our World”, p. 14) 2025 Sustainability and Social Impact Goals Nurture Our World PROCUREMENT PRACTICES Indicator Description Response and / or References 204 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Responsible Sourcing”, p. 32) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Source Responsibly”) 204-1 Proportion of spending on local suppliers 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Responsible Sourcing”, p. 32)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 67 ESEG PROAR TMS ORINOL ANTI-CORRUPTION Indicator Description Response and / or References 205 Management approach 2021 Serve 360 Report (“Business Ethics”, p. 55) Business Conduct Guide (“Commercial Bribery and Improper Gifts”, p. 14-15 and “Bribery, Illegal Gratuities and Gifts”, p. 17-20) Business Integrity Line 205-2 Communication and training about anti-corruption policies and procedures 2021 Serve 360 Report (“Business Ethics”, p. 55) ENERGY Indicator Description Response and / or References 302 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Energy and Emissions”, p. 25) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Reduce Environmental Impacts”) Sustainability Policy 2021 CDP Climate Change Response 302-1 Energy consumption within the organization Assured by a third-party verifier In 2020, our hotels' energy consumption was 13.83 million megawatt hours. (4.86 million megawatt hours were direct energy. 8.97 million megawatt hours were indirect or purchased energy.) 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response 302-3 Energy Intensity Assured by a third-party verifier 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; and “Assurance Statement”, p. 85) 302-4 Reduction of energy consumption 2021 Serve 360 Report (“Energy and Emissions”, p. 25 and “Performance Tables”, p. 59) 2021 CDP Climate Change Response 302-5 Reductions in energy requirements of products and services 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response Management Approach Disclosures and Indicators: Environmental
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 68 ESEG PROAR TMS ORINOL WATER AND EFFLUENTS Indicator Description Response and / or References 303 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Water”, p. 28) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Reduce Environmental Impacts”) Sustainability Policy 2021 CDP Water Security Response 303-1 Interactions with water as a shared resource 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Water”, p. 28) 2021 CDP Water Security Response 303-3 Water withdrawal Assured by a third-party verifier 2021 Serve 360 Report (“Water”, p. 28 and “Performance Tables”, p. 59) 2021 CDP Water Security Response BIODIVERSITY Indicator Description Response and / or References 304 Management approach 2021 Serve 360 Report (“Natural Capital”, p. 21) 2025 Sustainability and Social Impact Goals Nurture Our World (“Natural Capital Investment”) Sustainability Policy 2021 CDP Forests Response Evergreen Alliance Foundation for Amazon Sustainability IUCN and Marriott Partnership 304-3 Habitats protected or restored 2021 Serve 360 Report (“Natural Capital”, p. 21) Nurture Our World (“Natural Capital Investment”) EMISSIONS Indicator Description Response and / or References 305 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10; “Energy and Emissions”, p. 25; and “TCFD Report”, p. 79) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Reduce Environmental Impacts”) Sustainability Policy
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 69 ESEG PROAR TMS ORINOL EMISSIONS continued Indicator Description Response and / or References 305-1 Direct (Scope 1) GHG emissions Assured by a third-party verifier 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; “TCFD Report”, p. 79; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response 305-2 Energy indirect (Scope 2) GHG emissions Assured by a third-party verifier 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; “TCFD Report”, p. 79; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response 305-3 Other indirect (Scope 3) GHG emissions Assured by a third-party verifier 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; “TCFD Report”, p. 79; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response 305-4 GHG emissions intensity Assured by a third-party verifier 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; “TCFD Report”, p. 79; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response 305-5 Reduction of GHG emissions 2021 Serve 360 Report (“Energy and Emissions”, p. 25; “Performance Tables”, p. 59; “TCFD Report”, p. 79; and “Assurance Statement”, p. 85) 2021 CDP Climate Change Response WASTE Indicator Description Response and / or References 306 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Waste”, p. 30) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Reduce Environmental Impacts”) Sustainability Policy 306-2 Management of significant waste-related impacts 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Waste”, p. 30) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Reduce Environmental Impacts”) Sustainability Policy 306-4 Waste diverted from disposal In 2020, 16,511 tons of waste was diverted from landfills and 32,588 tons of waste was directed to disposal for managed North American hotels.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 70 ESEG PROAR TMS ORINOL ENVIRONMENTAL COMPLIANCE Indicator Description Response and / or References 307 Management approach 2021 Serve 360 Report (“Sustain Responsible Operations”, p. 23) Sustain Responsible Operations Sustainability Policy 307-1 Noncompliance with environmental laws and regulations In 2020, there were no known instances of non-compliance with environmental laws and regulations that the company believed could have a material adverse effect on the company. SUPPLIER ENVIRONMENTAL ASSESSMENT Indicator Description Response and / or References 308 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Responsible Sourcing”, p. 32) 2025 Sustainability and Social Impact Goals Sustain Responsible Operations (“Source Responsibly”) Global Procurement Supplier Conduct Guidelines Animal Welfare Position Statement Responsible Seafood Position Statement Sustainability Policy Responsible Sourcing Guide 308-1 New suppliers that were screened using environmental criteria 2021 Serve 360 Report (“Responsible Sourcing”, p. 32) Sustain Responsible Operations (“Source Responsibly”) Global Procurement Supplier Conduct Guidelines Sustainability Policy
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 71 ESEG PROAR TMS ORINOL Management Approach Disclosures and Indicators: Social EMPLOYMENT Indicator Description Response and / or References 401 Management approach Policies and Procedures: Fair policies and procedures, including our Global Employment Principles, are in place to protect associates’ rights, promote safe and respectful working conditions, and promote positive relationships between labor and management. Engagement Survey: Associates globally in all managed hotels, CECs, and corporate offices participated in the 2019 Associate Engagement Survey to share their feedback on their work environment and the company. Survey results are used to drive improvements at all levels, enabling Marriott to innovate and better serve associates and customers. The Associate Engagement Survey is also used to assess our sustainability and social impact programs. Our 2019 Associate Engagement Survey results indicated that 89% of associates were proud of the company’s commitment to operate sustainably (e.g., reducing our waste, water, and energy usage). In addition, 91% indicated they were proud of the company’s commitment to making a positive social impact (e.g., associate volunteerism, advancing human rights, disaster relief). We hold managers accountable for sharing survey results, conducting feedback sessions, and creating action plans to deliver continued improvement. Longstanding, Robust Employee Assistance and Work/Life Resources: Nearly 30 years ago, Marriott launched a groundbreaking resource and referral service to meet the specific needs of hourly associates in the U.S. who might not be well served by a traditional employee assistance program. Today, we continue to offer ARL, “Assistance and Resources for Life,” providing all U.S. managed associates and their families 24/7 access to consultations, resources, and referrals for virtually any work or life need. TakeCare: TakeCare is a branded collection of resources helping to fuel our culture and commitment to wellbeing and improve business performance. We engage and support managed hotels, CECs, and corporate associates through TakeCare, ensuring that our people-first culture is vibrant, personal, and relevant. TakeCare inspires associates to live our core values and bring the best of Marriott to the world. It is the foundation to our culture. Today, TakeCare has evolved from its roots in physical wellness to become that and so much more. TakeCare has helped sustain our culture throughout the global pandemic, as our managers care for their teams and associates continue to rise to the occasion to take care of each other, our customers, and local communities during the most difficult of times. 2021 Serve 360 Report (“Company Overview”, p. 6 and “Global Diversity, Equity, and Inclusion”, p. 36) Awards and Recognition Careers Heart of the House Principles of Responsible Business (“Global Employment Principles”, p. 2) 401-1 New employee hires and employee turnover 2021 Serve 360 Report (“Performance Tables”, p. 59) 401-3 Parental leave Marriott offers paid parental leave in the U.S. that includes eight fully paid weeks for birth and adoptive moms and dads. Full-time and part-time associates, who work a minimum number of hours, are eligible. Birth moms will continue to receive an additional seven weeks of partial pay for a total of 15 weeks of leave benefits. We provide financial assistance to help with adoption fees of up to $12,000. Careers
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 72 ESEG PROAR TMS ORINOL OCCUPATIONAL HEALTH AND SAFETY Indicator Description Response and / or References 403 * Management approach In 2020, Marriott continued to utilize the Be Safe program initially rolled out in 2017, which has increased accountability at the leadership level for implementing and supporting safety initiatives in the U.S. Our Global Safety and Security Team provides training, policy enforcement, and technical expertise in safety and security management to help minimize harm and losses to associates at managed properties. Our staff is trained to assess and respond appropriately to potential threatening situations and our hotels work closely with local, state, federal, and international authorities. On-site and Telephonic Medical Services: Since 1985, we have maintained an Occupational Health Services program, which employs a team of dedicated nurses to serve the health needs of managed associates in the U.S. Our team of nurses provides telephonic care and case management services to associates at managed properties around the country. At several managed properties around the country, on-site nurses provide care to associates including emergency response, treatment of work-related and nonwork-related injuries and illnesses, travel health consultations and immunizations, and health screenings. They assist with case management for associates at managed properties and complete health promotion programs at these properties and at our corporate headquarters. In 2020, the occupational health nurses continued to promote a TakeCare culture by hosting health promotion events focused on the health and wellbeing of associates including administration of flu vaccines, having on-site blood donations, organizing various donation events (eyeglasses, cell phones, clothing) and education on nutrition and disease risk reduction. TakeCare: Throughout 2020, Marriott’s goal was to live our TakeCare culture. We continue to provide associates with additional support for emotional wellbeing, stress management, money management, mindfulness, and more. Marriott recently partnered with meQuilibrium, a proven, clinically validated resilience platform that is synchronized with our other mental health resources and proactively refers managed associates who need help managing stress. Today, over 15,000 associates are enrolled in this platform and taking advantage of the self-care resources provided. In 2020, at a time when transparency and connections were as critical as ever, we introduced a weekly “Stay in Touch” newsletter providing updates to managed associates on Leadership Voice, Business News, Resources and Tips, and Marriott Community. On our intranet, we posted videos, photos, and stories from thousands of associates who shared moments of peace and joy during these turbulent times, such as how they pulled together to care for each other, volunteered in their communities, prepared and delivered care packages for associates on furlough, embraced remote workouts with family members across regions, delved into artistic talents, and more. During 2020, 23 editions of the weekly #MarriottStrong Stay In Touch communications series were published for associates around the world. The most impactful content was curated and broadcast to GMs and HR professionals globally to pull into their own messaging to their teams locally. This series was a critical component of the broader company communications plan to provide transparency and reinforce the company’s commitment to associate wellbeing. Through this difficult year, we used this series to maintain Marriott culture, leading to over 75,000 engagements with these resources. Associate Benefits: During the COVID-19 pandemic, we continued our focus on health and wellbeing to ensure managed associates and their families had ongoing access to health care coverage. Through April 9, 2021, we continued to provide company-subsidized healthcare for eligible associates in the U.S., including those who are furloughed or on temporary layoff. Marriott also made a temporary policy change to offer company-subsidized health care coverage for eligible U.S. associates on furlough and to reduce the required hours worked to allow eligible U.S. associates to continue to qualify for company-subsidized health care coverage. We also introduced paid COVID-19 sick leave for eligible associates who are unable to work due to a positive COVID-19 diagnosis or who need to quarantine due to exposure from a guest or associate diagnosed with COVID-19. In March 2021, Marriott introduced the COVID-19 Vaccination Care Program to managed hotels in the U.S. and Canada. The program aims to provide vaccination education and awareness, tools to allow flexibility when scheduling vaccination appointments, and a financial award equal to four hours of pay (half day) to eligible U.S. and Canada associates who get fully vaccinated. Workplace Flexibility and Remote Work Resources: As some associates transitioned to remote work during the COVID-19 pandemic, we refreshed our “Work Ways Guide to Flexibility” and added working virtually resources and online training to support associates working from home for the first time. 2021 Serve 360 Report (“Global Diversity, Equity, and Inclusion”, p. 36; “COVID-19 Response”, p. 16 and “Human Rights”, p. 49) Business Conduct Guide (“Health Safety and Security, p. 37) Heart of the House Harassment Prevention Commitment to Clean Statement on Cleaning Protocols Vaccine Care Program * Applies to managed associates only .
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 73 ESEG PROAR TMS ORINOL OCCUPATIONAL HEALTH AND SAFETY continued Indicator Description Response and / or References 403-2 Hazard identification, risk assessment and incident investigation Marriott’s Global Safety and Security Team conducts regular Safety/Security Assessments at all our hotels globally, based on the individual hotel’s risk ratings. 403-4 Worker participation, consultation and communication on occupational health and safety Marriott’s Be Safe program requires that each hotel has an Executive Level Leader assume the role of Be Safe Champion. One aspect of this role is to ensure the ongoing success of an active Safety Committee. It is common practice that associates from various departments participate in the committees. As part of the Be Safe program, we have continued safety training for all U.S. associates at managed properties, as well as observation, reporting, and recognition programs. 403-9 Work-related injuries In 2020, Marriott had no known work-related fatalities. TRAINING AND EDUCATION Indicator Description Response and / or References 404 * Management approach Training and continuous learning are essential to maintaining our renowned culture that focuses on associate engagement, participative management, and outstanding customer service. To meet the demands of Marriott’s global growth, we invest in a strong leadership pipeline to prepare associates to assume advanced leadership roles. Strategies and Programs: Through skills training programs, professional development opportunities, digital learning experiences, and a growing footprint of hotels, we provide associates with a multitude of choices for career and personal growth. In 2020, Marriott continued the development of an unparalleled learning experience for managed and franchise associates that focuses on building digital learning paths customized for their role. A revamped learning site, the Digital Learning Zone (DLZ), personalizes and simplifies the identification and assignment of training by region, brand, and associate role. Functionality of the DLZ includes auto assignment of all required training for all associates, easy-to-follow training plans sorting by due date, and dynamic team management for managers of others and leaders to track how their teams are progressing. This helps to streamline all training efforts across numerous roles on property, including Front Office, Event Management, and property leadership associates, as well as above-property associates. In addition, to support Marriott’s global presence, our learning systems are available in 16 languages: English, Spanish, Chinese Traditional, Chinese Simplified, Japanese, Korean, Thai, Russian, Turkish, Arabic, French, German, Italian, Polish, Portuguese, and Vietnamese. Functional-Based Training: Marriott has focused on making learning simpler for associates across all areas of the business. We provide functional-based training to associates, including our sales, front-of-house, engineering & facilities management, food & beverage, and culinary teams. Through the DLZ, associates select the function in which they work, as well as any additional work duties, and the system assigns the required and recommended trainings to them. Continuing Education: Additionally, we offered managed associates tuition reimbursement and flexible schedules to attend school and cross-training to gain experience and skills in various departments, as well as work-at-home options. Succession Planning: To help prepare managed leaders for more senior positions with greater scope and complexity, Marriott conducts structured talent development discussions to provide our senior leadership team with information on bench strength, including profiles that feature each individual’s past accomplishments, current contributions, development areas, and readiness for new or expanded responsibilities. Additionally, we maintain a series of proprietary programs to develop our high-potential talent. Innovation: For years, we have organized Innovation Days where corporate headquarters and regional offices globally host thought leaders, innovation challenges, and creative skill building. During the multiday event, associates participate in interactive sessions to learn design-thinking approaches to problem solving and best practices for brand storytelling. In 2020, Innovation Days were paused in light of the COVID-19 pandemic. Associates also experience rapid prototyping of physical and digital ideas. Marriott’s focus on innovation continues through our Innovation Speaker Series and Underground U, a peer-to-peer learning and teaching exchange. Part design garage, part research lab, part test track, Underground U enables real-time experimentation and feedback from our customers before we go to market. Awards and Recognition Careers Heart of the House * Applies primarily to managed associates.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 74 ESEG PROAR TMS ORINOL TRAINING AND EDUCATION continued Indicator Description Response and / or References 404-1 Average hours of training per year per employee On average, associates completed 56 hours of training in 2020. 404-2 Programs for upgrading employee skills and transition assistance programs Through skills training programs, professional development opportunities, other learning experiences, and growth in the number of hotels, we provide associates with a multitude of choices for career and personal growth. We use a variety of mediums to deliver trainings including videos, simulations and digital learning, providing associates with experiential elements to reinforce the training content. Associates have access to approximately 20,000 formal, self-paced, and informal learning options for developing professional and personal skills. More than 85% of our formal learning programs are digital learning, with the balance being instructor-led or blended programs. 404-3 Percentage of employees receiving regular performance and career development reviews For managed associates, performance development is accomplished through ongoing conversations between associates and their managers and periodic formal reviews are conducted with all associates. Under our Leadership Performance Acceleration program, supervisors and associates are encouraged to have ongoing performance conversations throughout the year to help them develop career plans, chart a course for achieving those plans, and monitor progress. This allows for just-in-time feedback that any leader or peer can include directly on the associate’s review. DIVERSITY AND EQUAL OPPORTUNITY Indicator Description Response and / or References 405 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Empower Through Opportunity”, p. 35) 2025 Sustainability and Social Impact Goals Empower Through Opportunity (Diversity, Equity, and Inclusion”) Awards and Recognition Global Diversity and Inclusion Creating an Inclusive Environment Supplier Diversity We Stand Against Racism Global Diversity, Equity, & Inclusion 405-1 Diversity of governance 2021 Serve 360 Report (“Our Company”, p. 6; “Global Diversity, Equity, and Inclusion”, p. 36; and “Board Oversight”, p. 54) 2021 Proxy Statement (“Board Composition and Diversity”, p. 13-14)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 75 ESEG PROAR TMS ORINOL HUMAN RIGHTS ASSESSMENT Indicator Description Response and / or References 412 Management approach 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Human Rights”, p. 49) 2025 Sustainability and Social Impact Goals Welcome All and Advance Human Rights (“Human Rights”) Human Rights Policy Statement 2020 Modern Slavery Statement Global Procurement Supplier Conduct Guidelines 412-1 Employee training on human rights policies or procedures 2021 Serve 360 Report (“2025 Sustainability and Social Impact Goals”, p. 10 and “Human Rights”, p. 49) 2025 Sustainability and Social Impact Goals LOCAL COMMUNITIES Indicator Description Response and / or References 413 Management approach 2021 Serve 360 Report (“Nurture Our World”, p. 14) 2025 Sustainability and Social Impact Goals Nurture Our World TakeCare Relief Fund Partnership with Children’s Miracle Network The Ritz-Carlton Community Footprints 413-2 Operations with local community engagement, impact assessments and development programs Community engagement activities occur across our portfolio. 2021 Serve 360 Report (“How We Execute Globally”, p. 12 and “Nurture Our World”, p. 14) 2025 Sustainability and Social Impact Goals Nurture Our World SUPPLIER SOCIAL ASSESSMENT Indicator Description Response and / or References 414 Management approach 2021 Serve 360 Report (“Nurture Our World”, p. 14) 2025 Sustainability and Social Impact Goals Global Procurement Supplier Conduct Guidelines 414-1 New suppliers that were screened using social criteria 2021 Serve 360 Report (“Responsible Sourcing”, p. 32) 2025 Sustainability and Social Impact Goals
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 76 ESEG PROAR TMS ORINOL PUBLIC POLICY Indicator Description Response and / or References 415 Management approach 2021 Serve 360 Report (“Public Policy”, p. 57) Political Activity – Policies, Oversight and Disclosure 415-1 Political contributions 2021 Serve 360 Report (“Public Policy”, p. 57) Political Activity – Policies, Oversight and Disclosure CUSTOMER HEALTH AND SAFETY Indicator Description Response and / or References 416 Management approach Marriott’s Global Safety & Security Team provides training, policy enforcement, and technical expertise in safety and security management to help minimize harm and losses to our customers, associates, stakeholders, and business. The team is trained to assess and respond appropriately to potential threatening situations and our hotels work closely with local, state, federal, and international authorities. In the United States, Marriott’s Be Safe program also aims to increase accountability at the leadership level for implementing and supporting safety initiatives. We also work with local security authorities, including the U.S. Department of State and Department of Homeland Security when establishing security protocols for some of our hotels. We also tailor individual security measures to each hotel and review those measures often. In 2020, due to the global pandemic, Global Safety & Security played an integral part in the development of Marriott’s COVID-19 Response Plan. 2021 Serve 360 Report (“Our Global COVID-19 Community Response”, p. 16) Commitment to Clean Commitment to Clean FAQ Business Conduct Guide (“Health Safety and Security, p. 37) 416-1 Assessment of the health and safety impacts of product and service categories Through our Global Food Safety program, we tailor individual safety and security measures to each hotel, conducting self-inspections using our food safety standards as guidelines. As part of our program, Marriott also has a comprehensive food safety management system to control risk factors that may lead to foodborne outbreaks. We also implement active managerial controls, including training, vendor specifications, quality control, and other monitoring procedures. CUSTOMER PRIVACY Indicator Description Response and / or References 418 Management approach 2021 Serve 360 Report (“Data Privacy and Cybersecurity”, p. 56) 2020 Annual Report (“Technology, Information Protection and Privacy Risks”, p. 21-23) Privacy Center 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data At the end of February 2020, Marriott identified that an unexpected amount of guest information may have been accessed through an application used by Marriott-branded hotels to help provide services to guests at hotels. Upon discovery, the company confirmed that the login credentials were disabled, immediately began an investigation, implemented heightened monitoring, and arranged resources to inform and assist guests. Marriott sent emails to guests whose information was involved and set up a dedicated website and call center resources with additional information for guests, including a list of steps guests involved could consider taking and information about enrolling in a personal information monitoring service offered free of charge by Marriott and provided by a third party. Marriott also notified relevant authorities and is supporting their investigations. 2021 Serve 360 Report (“Data Privacy and Cybersecurity”, p. 56) Marriott International Notifies Guests of Property System Incident
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 77 2021 SERVE 360 REPORT SASB Disclosures The Sustainability Accounting Standards Board (SASB) is standards-setting organization whose mission is to help business around the world identify, manage, and communicate material sustainability information to investors. SASB Standards are maintained under the auspices of the Value Report - ing Foundation, a global nonprofit organization for businesses and investors to develop a shared understanding of enterprise value. Marriott’s SASB disclosures include topics and metrics related to the Hotel and Lodging industry. ACCOUNTING METRICS Topic Code Metric Description Response and / or Reference Energy management SV-HL-130a.1 Total energy consumed In 2020, Marriott’s total energy consumption was 13.83 million MWh. 2021 Serve 360 Report (“Performance Tables”, p. 59) Percent total energy from grid electricity In 2020, 99.20% of energy consumed was from grid electricity. Percent total energy from renewables In 2020, 0.80% of energy consumed was from renewables. Water management SV-HL-140a.1 Total water withdrawn In 2020, 101.33 million cubic meters of water was withdrawn. Total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress In 2020, approximately 36 million cubic meters (41%) of water was consumed in regions with high or extremely high baseline water stress. Ecological impacts SV-HL-160a.2 Description of environmental management policies and practices to preserve ecosystem services 2021 Serve 360 Report (“Natural Capital”, p. 21) Nurture Our World (“Natural Capital”) Sustainability Policy Global Procurement Supplier Conduct Guidelines Animal Welfare Position Statement Responsible Seafood Position Statement Labor practices SV-HL-310a.1 Voluntary and involuntary turnover rate for lodging facility employees In 2020, Marriott’s voluntary turnover rate for managed associates was 19%*. SV-HL-310a.2 Total amount of monetary losses as a result of legal proceedings associated with labor law violations In 2020, there was a total amount of approximately $2.3 million in the U.S. in losses as a result of legal proceedings associated with alleged labor law violations. All of these losses were associated with settlements; none involved a finding that Marriott violated labor law. SV-HL-310a.4 Description of policies and programs to prevent worker harassment 2021 Serve 360 Report (“Human Rights”, p. 49) Business Conduct Guide (“Protecting and Respecting Customers and Associates”, p. 36) Harassment Prevention Global Diversity and Inclusion Creating an Inclusive Environment * Includes associates employed at headquarters, corporate offices, CECs, and managed hotels
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 78 2021 SERVE 360 REPORT ACCOUNTING METRICS continued Topic Code Metric Description Response and / or Reference Climate change adaptation SV-HL-450a.1 Number of lodging facilities located in 100-year flood zones In 2020, 335 managed lodging facilities were located in areas with extremely high ravine and/or coastal flood risk. ACTIVITY METRICS Code Metric Description Response and / or Reference SV-HL-000.A Number of available room-nights In 2020, Marriott had 395 million available room nights*. SV-HL-000.B Average occupancy rate (%) In 2020, due to the impacts of COVID-19 on the travel and tourism industry, the average occupancy was 35.5%*. SV-HL-000.C Total area of lodging facilities At year-end 2020, the total area of our lodging facilities was 603 million square feet. SV-HL-000.D Number and percentage of managed lodging facilities At year-end 2020, Marriott had 2,083 managed lodging facilities (representing 27.2% of our portfolio). Number and percentage of owned and leased lodging facilities At year-end 2020, Marriott had 66 owned or leased lodging facilities (representing 0.9% of our portfolio). Number and percentage of franchised lodging facilities At year-end 2020, Marriott had 5,402 franchised lodging facilities (representing 70.7% of our portfolio). Number and percentage of timeshare lodging facilities At year-end 2020, Marriott had 91 timeshares (representing 1.2% of our portfolio). * For comparable properties only.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 79 2021 SERVE 360 REPORT TCFD Report Marriott’s Task Force on Climate-related Financial Disclosures (TCFD) Report is aligned with the four sections of the TCFD framework: (1) governance, (2) strategy, (3) risk management, and (4) metrics and targets. GOVERNANCE: THE COMPANY’S GOVERNANCE AROUND CLIMATE-RELATED RISKS AND OPPORTUNITIES (a) Boar d’s Oversight of Climate-Related Risks and Opportunities Marri ott’s Board of Directors has direct oversight of climate-related risks and opportunities, including monitoring and overseeing progress against goals and targets for addressing climate- related issues. The Board-level Inclusion and Social Impact Committee oversees, encourages, and evaluates efforts undertaken by the company to address environmental, social, and governance (ESG) issues. Marri ott’s Chief Executive Officer (CEO), who is on our company’s Board of Directors, is also a member of the Inclusion and Social Impact Committee. Our CEO is responsible for assessing and managing climate-related risks and opportunities and reports to the Board half-yearly on climate-related issues. (b) Management ’s Role in Assessing and Managing Climate-Related Risks and Opportunities Marri ott’s Board-level Inclusion and Social Impact Committee is supported by 13 company officer or associate members, and includes Marriott’s CEO. These members are also responsible for assessing and managing ESG-related risks and opportunities, inclusive of climate change. The Committee also assists the Board in evaluating Marriott’s efforts to address ESG issues. Marri ott’s Serve 360 Executive Leadership Council is comprised of group and continent presidents within each regional business division and C-suite executives representing each global discipline (Brand, Design, Development, E-Commerce, Finance, Human Resources, IT, Legal, Marketing, Sales, Owner/Franchise Services, Global Operations (co-chair), and Global Communications and Public Affairs (co-chair)). The Executive Leadership Council is responsible for providing strategic direction and making investment decisions to guide the achievement of the Serve 360 sustainability and social impact goals. Marri ott’s Serve 360 Advisory Council, comprised of direct reports of C-suite executive leaders, representing each global discipline, as well as the operations and human resources leaders in each continent, ensures the company is on track with its Serve 360 goals, provides updates and learnings on major initiatives in each continent and discipline, assesses strategies and recommendations for improvement, and develops recommendations for the Serve 360 Executive Leadership Council. Marri ott’s property Directors of Engineering and General Managers are responsible for assessing and managing climate-related issues at the property level. Additional References 2021 Ser ve 360 Report (“How We Execute Globally”, p. 12) Inclusion and Social Impact Committee Charter CDP 2021 Climate Change Response, Questions C1.1-C1.2 (p. 3-5)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 80 2021 SERVE 360 REPORT Categories Risks Time Horizons Potential Financial Impacts Transition: Policy & Legal Increased pricing of GHG emissions: Marriott has seen the impact of the UK CRC Energy Efficiency Scheme, with an obligation for the owners and properties managed by Marriott of almost $2 million USD for the April 2018 to March 2019 tax year. <2 years Increased operating costs: Carbon and fuel taxes are responsible for moderate increases in energy expenses in the regions where they have been enacted, such as the U.K. Physical: Acute Increased severity and frequency of extreme weather events such as cyclones and floods: More frequent and severe storms may increase the risk of property damage and related insurance costs. Insurance may also not cover damage to, or losses involving, properties that we own, manage, or franchise, or other aspects of our business, and the cost of such insurance could increase. <2 years Increased insurance premiums and potential for reduced availability of insurance on assets in “high-risk” locations: Widespread property destruction could increase insurance premiums and impact the availability of materials and resources, increasing repair costs and time frames for reopening. Physical: Chronic Rising mean temperatures: In 2020, Marriott’s scenario analysis revealed that many Marriott U.S. hotels are projected to be exposed to increases in average and extreme temperatures. Increasing global temperatures could drive up the energy consumption at our properties, thus reducing profits from operations. <2 years Increased operating costs: At many of our properties, energy costs are among the highest line of expenses, and temperature extremes increase the energy load. Furthermore, many older buildings’ central plants are underdesigned for climates with increasing temperatures and may require significant retrofit or upgrades at high cost in the longer term. Physical: Chronic Changes in precipitation patterns and extreme variability in weather patterns: Risks relating to natural or man-made disasters have reduced the demand for lodging, which has adversely affected our revenues. We have seen a decline in travel and reduced demand for lodging due to so-called “Acts of God,” such as hurricanes, earthquakes, tsunamis, floods, volcanic activity, wildfires, and other natural disasters in locations where we own, manage, or franchise properties and areas of the world from which we draw many guests. These circumstances could continue or worsen in the future to an extent and for durations that we are not able to predict. <2 years Reduced revenues from lower sales/output: Longer dry or wet periods could make some destinations less desirable, which might lead to a decrease in the profitability of hotel operations in the affected location; e.g., reduced snowfall in winter sport destinations or threat of wildfires can reduce hotel occupancy. STRATEGY: THE ACTUAL AND POTENTIAL IMPACTS OF CLIMATE-RELATED RISKS AND OPPORTUNITIES ON THE ORGANIZATION’S BUSINESSES, STRATEGY, AND FINANCIAL PLANNING (a) Identified Climat e-Related Risks and Opportunities Over Short-Term, Medium-Term, and Long-Term Horizons Time Horizons: Marriott defines short-term time horizons as less than 2 years, medium-term time horizons by 2-5 years and long-term time horizons by 5-10 years. The short-term time horizon primarily reflects hotel operations and the activities of the Serve 360 Executive Leadership Council. For example, annual energy and water audits help identify opportunities to perform against goals and asset management systems track preventative maintenance and capital expenditure plans in short-term time horizons. Assessing medium-term risks and opportunities includes activities such as monitoring proposed legislation or emerging technologies. The long-term time horizon includes Marriott’s annual 10-year capital planning and budgeting exercise, which helps to identify and forecast the needs of a given facility with respect to long-term climate impacts and efficiency. Additionally, most of Marriott’s Serve 360 targets were established for the 10-year time frame from 2016 to 2025, helping to envision how to develop responsible business practices to meet climate change risks. Process to Determine Risks and Opportunities with a Material Financial Impact: Risks are typically reviewed annually by the top 250 executives across the company, as well as by the Board of Directors. All the evaluated risks may be considered to have the potential for substantive impact, and as a part of the annual review, the risks are prioritized and data is gathered about current and long-term mitigation efforts, challenges, and performance-tracking mechanisms. Identified Risks:
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 81 2021 SERVE 360 REPORT Categories Opportunities Time Horizons Potential Financial Impacts Resource Efficiency Move to more efficient buildings: Sustainable building standards, such as LEED® standards and other national and international standards, create opportunities for Marriott to demonstrate leadership in promoting and supporting sustainable hotel development and operations. As of 2020, 32% of Marriott properties were certified to a recognized sustainability standard and 245 Marriott properties had or were pursuing LEED, BREEAM®, or Estidama certification. <2 years Reduced operating costs: New hotels built to LEED standards have lower operating costs, are more valuable assets to owners, and more appealing to many guests. For example, we estimated that if all global managed properties were to implement the necessary changes needed to achieve LEED certification, hotel owners would save between $38,000-$57,000 in energy costs per year at each property. Resilience Participation in renewable energy programs and adoption of energy efficiency measures: As part of our Serve 360 sustainability and social impact goals, Marriott plans to source a minimum of 30% of its overall electricity consumption from renewable energy by 2025. Marriott's ability to run more energy-efficient hotels offers the opportunity to outperform competitors through improved energy consumption management. <2 years Reduced operating costs: Reductions in energy intensity of even 1% in a region, such as North America, would yield significant NOI improvements for hotel owners in the aggregate. Transitioning to renewable energy and continued focus on energy efficiency will help Marriott avoid costs related to energy consumption and carbon taxes. Products and Services Shift in consumer preferences: With growing environmental awareness among travelers and expectations for businesses and individuals to reduce their travel- associated carbon footprint, hotels providing products and services that respond to changing consumer demand are better positioned to achieve business goals. Marriott actively engages with guests, customers, and associates through management processes, such as the Guest Satisfaction Survey, GuestVoice, and our annual Associate Engagement Survey, to drive continuous improvement. 2-5 years Increased revenue through demand for lower emissions products and services: Amid rising expectations regarding business action and accountability, failure to integrate sustainability across our business could negatively impact Marriott’s reputation, brands, and competitive advantage in the industry. To respond to changing market forces influenced by climate change, we strive to demonstrate how responsible hotel management can be a positive force for the environment. For example, our energy- efficiency efforts typically have payback time frames of three years or less. We have also leveraged our relationship with vendors to provide us cost-neutral, environmentally sustainable products and services. Identified Opportunities: (b) Impact on Business, Strategy, and Financial Planning Impact on Business and Strategy Products and Services: Marriott partners with our sales teams to better understand and meet the needs of our business travel and group customers. We work with our associates to enable them to effectively communicate sustainability and social impact efforts and progress at the individual hotel and macro levels to their customers. We also communicate regularly with corporate customers about our sustainability goals by typically developing progress slides for use by the Global Sales Organization (quarterly), attending quarterly business review calls, presenting at global customer events, distributing sustainability and social impact information to sales teams, empowering guests with carbon and water footprint information on actualized stays, and providing hotel sustainability information during the Request for Proposal (RFP) process. Supply Chain and/or Value Chain: Severe weather events can impact our suppliers as well as our properties. As such, we have a large, diversified supply chain, and can source replacement supplies as needed. Additionally, we continue to seek to identify products with new and existing suppliers that exhibit responsible and social attributes and offer a high-quality experience for our guests. Investment in R&D: Marriott conducts research and development of products and services, and how best to meet our corporate customers’ needs for sustainable meeting services and access to business travel-related emissions data. For example, we partner with our sales teams to better understand and meet the needs of our business travel and group customers. We also partner with cost- effective third-party engineering firms to assist us in managing a formalized energy and water conservation technologies vetting process where vendors can have their technologies piloted and verified at a low cost. Solutions that meet Marriott’s typical 10-year lifecycle cost model returns on investment get added to our approved solutions database where they are utilized by properties and owners. Operations: Marriott properties have developed Business Continuity Plans to prioritize the safety and security of our guests and associates. These plans guide necessary repairs and/or reconstruction to return properties to operating condition. Marriott also requires comprehensive property and liability insurance policies for our managed, leased, and owned properties with coverage features and insured limits, in the event of prolonged property closures for repairs. In 2020, Marriott performed a physical climate risk scenario analysis for all open and pre-open hotels in the continental U.S. The hotels were ranked by the hazard exposure to acute and chronic hazards such as temperature changes, energy demand, drought, wildfire, and flooding, across three future time horizons: 2030, 2050, and 2080. The results of this assessment will be used to drive site-specific adaptation/resilience planning strategies.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 82 ESEG PROAR TMS ORINOL Impact on Fina ncial Planning Revenues: Our expertise in implementing projects that create operational efficiencies, including energy and water savings, help lower operating costs and offset risks related to higher costs from carbon taxes. Successfully addressing reputational risks and opportunities can increase market share through attracting additional guests and group business customers and our ability to secure additional management and franchise contracts. Indirect Costs: Our commitment to energy and water conservation and our company’s related operational targets for all the hotels in our portfolio, helps to address both the physical climate and transition risks identified, including those relating to increasing energy and water costs. Capital Expenditures: We have invested in our utility tracking and environmental reporting platform, Marriott Environmental Sustainability Hub (MESH), and data analysis to help us more accurately provide individual hotel targets and to give us greater insight into our performance against targets and the impact of climate-related risks such as rising mean temperatures and temperature extremes. (c) R esilience of Strategy, Including Impact of Different Climate-Related Scenarios Mar riott performed a quantitative scenario analysis to identify physical climate change risks to its hotels in the continental U.S. Marriott used the Representative Concentration Pathway (RCP) scenarios RCP 4.5 and RCP 8.5 to evaluate the portfolio’s exposure to climate change risks under a range of potential futures. RCP 8.5 represents a business-as-usual future with increasing GHG emissions through the year 2100 and greater physical impacts from climate change, while RCP 4.5 represents a future with decreasing GHG emissions after mid-century and lesser physical impacts. The scenario an alysis showed that many Marriott U.S. hotels are projected to be exposed to increases in average and extreme temperatures. For most hotels, cooling costs are projected to rise and heating costs are projected to decrease. Exposure to other climate change hazards varied with hotel location. Future wildfire hazard exposure is projected to be greatest in the western states, while storm surge exposure was greatest along the East Coast and Gulf Coast states. Overall, impacts were larger in the RCP 8.5 scenario than the RCP 4.5 scenario and in both scenarios, impacts increased in severity progressing from the year 2030 to the 2050- and 2080-time horizons. Additional References 2021 Ser ve 360 Report (“Sustain Responsible Operations”, p. 23 and “2025 Sustainability and Social Impact Goals”, p. 10) CDP 2021 Climate Change Response, Questions C2.1 and C2.2-C3.4 (p. 6-17) RISK MANAGEMENT: THE PROCESSES TO IDENTIFY, ASSESS, AND MANAGE CLIMATE-RELATED RISKS (a) Pr ocess for Identifying and Assessing Climate-Related Risks Mar riott’s Internal Audit’s Enterprise Risk Assessment process identifies the top business and emerging risks facing the company, including climate-related risks and opportunities. The results of this process are reported to the Board of Directors as well as reviewed annually by key executives across the company. All the risks evaluated may be considered to have the potential for substantive impact, and as a part of the annual review, the risks are prioritized and data is gathered about current and long-term mitigation efforts, challenges, and performance tracking mechanisms. Due to the COVID-19 pandemic, the annual Enterprise Risk Assessment did not occur in 2020. Please n ote: Consistent with our focus on management, franchising, and licensing, we own or lease very few of our lodging properties. This asset-light business model reduces Marriott’s exposure to climate-related risks to asset ownership. Acut e physical climate-related risks, such as severe weather events, are managed and updated annually through our companywide approach to business continuity planning, including risk identification, readiness, response and recovery relative to operational disruptions. Additionally, Global Engineering actively engages with Enterprise Risk Management and external partners to evaluate and address climate-related risks to the property assets under Marriott’s care and to develop strategies, programs, and trainings to promote climate resilience across our global portfolio of properties. The Mar riott Infrastructure Resilience and Adaptation (MIRA) program, launched in 2019, evaluates climate-related risks to the physical assets managed by Marriott and creates resiliency strategies, programs, and training to help provide optimal preparedness and planning and to help mitigate losses associated with climate-related events.
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 83 ESEG PROAR TMS ORINOL (b) Pr ocesses for Managing Climate-Related Risks Increased pricing of GHG emissions: Marriott remains focused on reducing energy consumption to mitigate the risks posed by fuel and carbon taxes. Our support for each hotel is tailored to the characteristics of the property, its location and our partnership with the property owner. We have deployed tools and technology such as MESH (Marriott Environmental Sustainability Hub) and the Transcendent asset management platform, which help facilitate and track implementation of conservation projects. Additionally, our engineering leaders in Europe, where this tax is levied, leverage strategic partnerships across countries, work with utility partners to identify rebates and incentives to develop attractive ROI for owners, and explore innovative ways to approach conservation for our many properties already operating at high efficiency. Increased severity and frequency of extreme weather events such as cyclones and floods: As part of Marriott’s Business Continuity Planning, property-level Emergency Response Plans are required per MIP-30. These plans are evaluated, revised, and certified every year and were refined after several severe storms during the 2017 Atlantic hurricane season. Marriott also works with insurance providers to develop criteria for insurance coverage requirements as part of our management agreements with hotel owners. Rising mean temperatures: Marriott pursues a comprehensive platform of initiatives and practices designed to drive down operational costs and reduce energy consumption. We developed a robust hotel data validation approach to support improved reporting and evaluation of operational decisions at the property and above-property level. In 2020, investments by Marriott’s owners included building management systems, guest room occupancy sensors, HVAC upgrades, and lighting retrofits. Changes in precipitation patterns and extreme variability in weather patterns: From design standards for new hotel construction through operations, Marriott focuses on running energy- and water- efficient hotels. Marriott follows local water restrictions in drought-affected regions and takes other actions including installation of low-flow fixtures, sub-metering for leak detection, and desalination plants where local infrastructure is inadequate to withstand variation in precipitation patterns, as well as the implementation of operational programming. (c) Pr ocess Integration Into Overall Risk Management Mar riott’s processes for identifying and assessing climate-related risks are fully integrated into our multidisciplinary companywide risk management process. Marriott’s Internal Audit discipline coordinates an annual Enterprise Risk Assessment process through which senior leadership identifies the top business and emerging risks facing the company, in addition to key mitigating action plans for addressing those risks. The results of this process are reported to our Board of Directors. Due to the COVID-19 pandemic, the annual Enterprise Risk Assessment did not take place in 2020. Additional References 2021 Ser ve 360 Report (“Energy and Emissions”, p. 25) CDP 2021 Climate Change Response, Questions C2.2 and 2.3a (p. 6-12) METRICS AND TARGETS: THE METRICS AND TARGETS USED TO ASSESS AND MANAGE RELEVANT CLIMATE-RELATED RISKS AND OPPORTUNITIES (a) Metrics Used b y the Organization to Assess Climate-Related Risks and Opportunities In addition to tracking and reporting on Scope 1, 2, and 3 global greenhouse gas emissions, Marriott also tracks and reports on energy, carbon, and water intensity metrics for each of our regions. As part of our company’s 2025 Serve 360 Goals, we are also tracking the percentage of renewable energy consumed in our portfolio. T o further assess climate-related risks and opportunities, and as part of Marriott’s Serve 360 platform, Marriott also tracks and reports on the percentage of properties certified to a recognized sustainability standard, the number of LEED®, BREEAM®, or Estidama certified or registered hotels, and the number of implemented adaptive reuse projects. (b) Scope 1 , 2, and 3 Greenhouse Gas Emissions (in million MT Co2e) 2020 2019 2018 Scope 1 0 .97 1 .33 1 .35 Scope 2 (Market Based) 4 .19 5 .48 5 .48 Scope 2 (Location Based) 4 .15 5 .48 5 .48 Scope 3 (Franchised Properties – Location Based) 3 .46 4 .84 4 .79 Scope 3 (Franchised Properties – Market Based) 3 .68 4 .90 4 .79 Scope 3 (Purchased Goods and Services) 1 .75 2.49 3 .14 Scope 3 (Fuel-and-Energy-Related Activities (not included in Scope 1 or 2)) 0 .88 0 .59 0 .71 Scope 3 (Waste Generated in Operations) 0 .06 0 .08 0 .13 Scope 3 (Business Travel) 0 .01 0 .03 0 .16
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 84 ESEG PROAR TMS ORINOL (c) T argets Used and Performance Against Targets T o assess and manage relevant climate-related risks and opportunities, Marriott has set the following 2025 Serve 360 Goals: 2025 Targets 2020 Progress 30% car bon intensity reduction 32% r eduction from 2016 baseline 30% r enewable electricity 0 .8% of our electricity consumption sourced from renewable energy 100% of hot els will be certified to a recognized sustainability standard 32% of pr operties certified to a recognized sustainability standard 650 LEED ® , BREEAM ® , or Estidama certified or registered hotels 2 45 hotels certified to or pursuing LEED ® , BREEAM ® , or Estidama certification 250 adaptiv e reuse projects 184 open adaptiv e reuse hotels Due t o the impacts of COVID-19 on our company, including decreased occupancy, we experienced an increase in our water intensity and decrease in our carbon intensity metrics in 2020. Mar riott is committed to setting a science-based target via the Science Based Target initiative (SBTi). As part of the process to set a science-based target, we are reviewing the 1.5°C Scenario to model and evaluate an emissions reduction target, using the pathway modeled for the Service Buildings sector of the Sectoral Decarbonization Approach (SDA). Additional References 2021 Ser ve 360 Report (“2025 Sustainability and Social Impact Goals”, p.10; “Sustainable Buildings and Adaptive Reuse”, p. 24; “Energy and Emissions”, p. 25; Assurance Statement, p. 85) CDP 2021 Climate Change Response, Questions C4-C8 and C10 (p. 17-39)
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 85 2021 SERVE 360 REPORT Assurance Statement Page 1 of 3 LR Independent Assurance Statement Relating to Marriott International , Inc. GHG Emissions and Environmental Data for the Calendar Year 2020 This Assurance Statement has been prepared for Marriott International Inc. in accordance with our contract. Terms of Engagement Lloyd’s Register Quality Assurance , Inc. (LR) was commissioned by Marriott International Inc. ( Marriott ) to provide independent assurance of its greenhouse gas (GHG) emissions inventory and Environmental Data (“the Report”) for calendar year (CY) 2020 against the assurance criteria below to a limited level of assurance and at the materiality of the professional judgement of the verifier using LR’s verification procedure and ISO 14064 - Part 3 for GHG data. Our assurance engagement covered Marriott ’s global operations and activities using the operational control reporting method and specifically the following requirements: • Verifying c onformance with: o Marriott ’s reporting methodologies for the selected datasets; and o World Resources Institute/World Business Council for Sustainable Development Greenhouse Gas Protocol: A corporate accounting and reporting standard, revised edition (otherwise referred to as the WRI/WBCSD GHG Protocol) for the GHG data 1 . • Reviewing whether the Report has taken account of: o GHG Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard. • Evaluating the accuracy and reliability of data and information for only the selected indicator s listed below: o Direct (Scope 1), Energy Indirect (Scope 2) and Other Indirect (Scope 3) GHG emissions; ▪ Scope 3 GHG emissions verified by LR only include franchised properties; o Energy Use and Water Use ; and o Environmental Performance Indicators including: GHG emissions intensity (kg CO2e / square meter), Water intensity (cubic meters / occupied room), and Energy intensity (kWh/ square meter of conditioned space). The Report includes Energy u se and GHG emissions for both global managed and franch ise properties. The Report includes water use and environmental performance indicators for global managed properties only . LR ’s responsibility is only to Marriott . LR disclaims any liability or responsibility to others as explained in the end footnote. Marriott ’s responsibility is for collecting, aggregating, analysing, and presenting all the data and information within the Report and for maintaining effective internal controls over the systems from which the Report is derived. Ultimately, the Report has been approved by, and remains the responsibility of Marriott. LR’s Opinion Based on LR ’s approach , except for the effect of the matters described in the Basis for Qualified Opinion, nothing has come to our attention that would cause us to believe that Marriott has not, in all material respects: • Met the requirements of the criteria listed above; and • Disclosed accurate and reliable performance data and information as summarized in Table 1 and Table 2 below. The opinion expressed is formed on the basis of a limited level of assurance 2 and at the materiality of the professional judgement of the verifier. 1 http://www.ghgprotocol.org/ 2 The extent of evidence -gathering for a limited assurance engagement is less than for a reasonable assurance engagement. Limited assurance engagements focus on aggregated data rather than physically checking source data at sites. Consequently, t he level of assurance obtained in a limited assurance eng agement is lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Page 2 of 3 Basis for Qualified Opinion Marriott did not fully address the following issues identified during verification activities: • The calculated emissions for some sources were not consistent with the activity data , stated emission factors and GWP values . These inconsistencies were not material. • Supporting documentation for some renewable energy sources and energy consumption at some hotels was not available during the verification activities. The lack of this suppor ting documentation is not material. • The total conditioned space and total room values used to calculate the energy , water and GHG emissions intensity metrics did not include all of the properties. This does not have a material impact on the intensity values. • The total property counts included in the CY2020 did not include all the properties as per the 10 -K report. This does not have a material impact. Table 1. Summary of Marriott GHG Emissions and Environmental Data CY 2020 Item Quantity Units Scope 1 Emission s 1 972,725 MT CO2e Scope 2 Emissions (Location - Based) 1,2 4,152,757 MT CO2e Scope 2 Emissions (Market - Based) 1,2 4,193,307 MT CO2e Scope 3 Emissions (franchised properties only) – location based 3,469,091 MT CO2e Scope 3 Emissions (franchised properties only) – market based 3,682,984 MT CO2e Total Water Consumption - Managed Properties only 101.33 Million Cubic Meters Total Energy Use – Managed Properties only 13.83 Million MWh Total Energy Use – Franchised Properties only 11.62 Million MWh 1. Scope 1 and 2 GHG emissions include managed properties only . 2. Scope 2, Location -based and Scope 2, Market -based are defined in the WRI/WBCSD GHG Protocol Scope 2 Guidance, 2015. Table 2. Summary of Marriott Environmental Performance Indicators CY 2020 Environmental Performance Indicators 1 Quantity Water Intensity (cubic meters per occupied room) 1.58 Energy Intensity (kilowatt hours per square meter of conditioned space) 246.77 GHG Emissions Intensity - Location Based (kg CO2e per square meter of conditioned space) 91.46 GHG Emissions Intensity - Market Based (kg CO2e per square meter of conditioned space) 92.19 1. Environmental performance indicators include managed properties only .
ESG PROGRESS AT MARRIOTT INTERNATIONAL → 86 2021 SERVE 360 REPORT Page 3 of 3 LR ’s Approach LR ’s assurance engagements are carried out in accordance with our verification procedure. Th e following tasks were undertaken as part of the evidence gathering process for this assurance engagement: • interviewing relevant employees of the organization responsible for managing GHG emissions data and records; • assessing Marriott ’s data management systems to confirm they are designed to prevent significant errors, omissions, or mis -statements in the Report. We did this by reviewing the effectiveness of data handling procedures, instructions, and systems, including those for internal quality control; and • verifying historical GHG emissions data and records at an aggregated level for CY 2020 . LR ’s Standards and Competence LR implements and maintains a comprehensive management system that meets accreditation requirements for ISO 14065 Greenhouse gases – Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition and ISO/IEC 17021 Conformity assessment – Requirements for bodies providing audit and certification of management systems that are at least as demanding as the requirements of the International Standard on Quality Control 1 and comply with the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants. LR ensures the selection of appropriately qualified individuals based on their qualifications, training, and experience. The outcome of all verification and certification assessments is then internally reviewed by senior management to ensure that the approac h applied is rigorous and transparent. Signed Dated: 25 June 2021 Neville Dias LR Lead Verifier On behalf of Lloyd’s Register Quality Assurance, Inc., 1330 Enclave Parkway, Suite 200 Houston, Texas 88077 LR reference: UQA00000478 Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd’s Register Quality Assurance , Inc. , and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a con tract with the relevant Lloyd's Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract. The English version of this Assurance Stat ement is the only valid version. Lloyd’s Register Group Limited assumes no responsibility for versions translated into other languages. This Assurance Statement is only valid when published with the Report to which it refers. It may only be reproduced in its entirety. Copyright © Lloyd's Register Quality Assurance Limited, 20 21 . A member of the Lloyd’s Register Group.