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.