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.