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Strategic Report

Our culture, responsible


business and stakeholders

Our purpose to provide True Hospitality for


Our values, Our people, everyone is at the centre of our culture. It
behaviours and diversity and underpins, reinforces and supports our
strategy, sets the tone for our commercial
work practices inclusion and activities, drives performance, and creates
workforce value for our stakeholders.

engagement We are committed to:


• Robust business ethics, values and
behaviours;
• A strong, diverse, innovative and
inclusive culture;

True • Respect for the environment and the


communities we work in; and

Hospitality • Engaging with and nurturing relationships


with our stakeholders.

for IHG believes that good culture is more than


written values, policies and principles.

everyone It is the demonstration of our culture, the


ethical and inclusive behaviours that matter,
be it the way our Board and Executive
Committee lead us, the way our office
Environment Community spaces are set out, the way we prioritise
resources, monitor performance, respond
to climate and societal change, or how our
performance support teams partner with
General Managers in our hotels.
The Company culture is driven through a
mixture of the Board leading by example,
delegating to the Executive Committee and
Senior Leadership, setting and monitoring
values, behaviour and ethical business
practices, standing Board agenda items
Compliance on key areas of culture, reviewing and
approving policies, and direct or delegated
interactions with stakeholders.
Our culture is crucial to who we are, how we
work together, how we make our strategic
decisions, how our stakeholders view us and
how we grow our business.

Our business Our


partners and investors and The following pages should be
read in conjunction with:
guests shareholders
Our business model pages 10 to 13
Our strategy pages 18 to 23
KPIs pages 42 to 45
Our risk management pages 46 to 53
Governance on pages 78 to 117
Directors’ Report on pages 221 to 224

24 IHG  |  Annual Report and Form 20-F 2019


How we engage
Engagement with our stakeholders and We use a variety of mechanisms to engage We also take into consideration the views
day-to-day management is a multi-layered with employees and other stakeholders, and interests of other stakeholders, such
and delegated process. At all levels of the including face-to-face meetings, as regulators and industry bodies, when
business, from front line operations, conferences, feedback and performance determining our strategy, values and
through corporate functions, Senior reviews, employee forums and training, and behaviours, as well as awareness of
Leadership, the Executive Committee, we monitor this through, for example, our environmental and social concerns.
the Board and its Committees, we engage employee and investor engagement surveys, They help provide a framework against
both internally and externally. reports and presentations to the Board. We which we measure ourselves, protect our
have an open, collaborative and inclusive reputation and develop our commercial
The Board delegates oversight of day-to-
approach. We take the information we and social awareness.
day operations and execution of strategic
glean from those interactions and use
priorities through the Executive Committee More information about our culture,
it to make informed judgements in our
and Senior Leaders, and sets, approves, approach to responsible business and
decision making.
embeds, reviews and course corrects stakeholders is set out on the following
(where necessary) the Company’s strategy, pages. See Board agenda items on
values, policies, principles, behaviours and pages 84 and 85 for more information
on which stakeholders were considered
responsible business culture in line with our
as part of Board decisions.
purpose and business model.

Our engagement model

Voice of the Employee


Board & Committees

Values,
Behaviour Executive Committee
External Monitoring,
& Work stakeholders Reporting &
practices Employees Assurance

Global Functions and Regions

InterContinental Hanoi Landmark72, Vietnam

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 25
Strategic Report

Our culture, responsible business


and stakeholders continued

IHG Values In addition, local teams led a range of


Our values, behaviours IHG’s Values, formerly Winning Ways, reflect wellbeing programmes, which will be further
and work practices the values and beliefs of our employees and
leadership. They underpin the way we
enhanced during 2020.

behave, the decisions we make, our strategy Our Code of Conduct


Who leads at IHG
and our commitment to providing True IHG’s Code of Conduct (Code) is
• Board and Committees
Hospitality for everyone. They reflect the fundamental in supporting employees
• Executive Committee diversity of our colleagues, business working in IHG corporate offices, reservation
• Senior Leaders partners, guests and other stakeholders. centres and managed hotels in making the
• D&I Board right decisions, in compliance with the law
Do the right thing. We always do
and our high ethical standards. It provides
• Human Resources and Business what we believe is right and have
information on our key principles and global
Reputation and Responsibility functions the courage and conviction to put it
policies, including human rights, diversity
• Functional business partners including into practice, even when it might be
and inclusion, accurate reporting,
Corporate Affairs, Finance and Global easier not to. We are honest and
information security, anti-bribery and the
Commercial and Technology straightforward and see our
environment. It also provides employees
decisions through.
with guidance on where to go if they are
How we engage
Show we care. We want to be the faced with a difficult issue and need
• Board and Committee oversight,
company that understands people’s further help.
monitoring and review
needs better than anyone else in our
• Formal reporting and escalation The Board, Executive Committee and all
industry. This means being sensitive
processes to Senior Leadership employees must comply with the Code and
to others, noticing the things that
and management teams the policies and procedures it refers to. The
matter and taking responsibility for
Code is reviewed and approved by the Board
• Virtual Learning Summits getting things right.
on an annual basis to ensure it reflects and
• Employee engagement surveys Aim higher. We aim to be responds to changes in the external
• Company intranet site including ‘our acknowledged leaders in our environment and continues to support IHG’s
people’, and ‘Code of Conduct’ portals industry, so we have built a team purpose and strategy.
• E-learning relating to Code of of talented people who have a real
In 2019, new processes were put in place to
Conduct, Anti-bribery, Antitrust and will to win. We strive for success
ensure the Code e-learning modules are
Handling Information Responsibly and value individuals who are
automatically populated in employees’
always looking for a better way
• Cybersecurity training and awareness learning plans, including for all new starters.
to do things.
• Incident handling All our Board and Executive Committee,
Celebrate difference. We believe along with employees across the
that it’s the knowledge of our organisation, have affirmed their
Our commercial success is dependent on people that really brings our brands commitment to the Code.
our values and behaviours, together with to life. Our global strength comes
our Code of Conduct, key policies, and from celebrating local differences The Code is available on our website
monitoring and assurance processes, to whilst understanding that some www.ihgplc.com/responsible-business
under Policies, and also displayed on our
support our decision-making. Combined things should be kept the same.
Company intranet.
they ensure that we continue to build trust
Work better together. When we
in the Company.
work together, we are stronger.
Our culture is monitored and assessed We’re at our best when we Information
Simulated phishing
through a number of metrics, including our collaborate to form a powerful, security
awareness exercises help
During our cybersecurity
employee engagement survey, employee winning team. We listen to each strengthen employees’
week we ran a variety of
forum feedback, e-learning participation, other and combine our expertise to ability to recognise
activities to help
suspicious emails and
reports from our confidential reporting create a strong, focused and trusted employees better
promote behaviours to
hotline, and third-party consultant surveys. group of people understand cyber threats
help protect data.
and mitigation strategies.

Behaviours
10 years ago IHG became a member of We have a set of growth behaviours that
the United Nations Global Compact encourage corporate employees to be
(UNGC). We remain committed to decisive, work at pace, be collaborative,
aligning our operations, culture and develop talent and focus on performance to
strategies with its 10 universally deliver our strategic objectives and purpose
accepted principles in the areas of to provide True Hospitality for everyone.
human rights, labour, environment and
During 2019 we continued to increase our
anti-corruption.
efforts to establish a high-performing culture
through a series of learning events across
the organisation. We also initiated a
programme to help our employees sustain
high impact and unlock performance
throughout the organisation. The
programme, focusing on holistic physical,
mental and emotional health, was rolled out
to 200 IHG employees.

26 IHG  |  Annual Report and Form 20-F 2019


The following policies and principles are We continue to enhance our privacy human rights violations, financial crime
key areas within the Code, each of which programme to address evolving privacy including bribery and corruption, or any other
is supported by its own guidance and requirements, such as the California activities which may have a reputational, legal
training materials. Consumer Privacy Act 2018. or ethical impact on IHG, prior to approval for
any new hotel or entry into a new market.
Human rights and modern slavery
Our monitoring and assurance processes
Helping combat human rights abuses, To help manage and monitor our corporate
The trusted reputation of IHG and its brands
including modern slavery, is an ongoing supply chain, an automated procurement
is one of IHG’s most important assets. Our
commitment at IHG, and we continue to system is used across many of our large
due diligence practices, monitoring of the
develop our policies and processes. During corporate offices. In addition to
health and performance of our working
2019 we enhanced our human rights acknowledging adherence to IHG’s Supplier
practices, are critical to protect this, and
programme, including significantly updating Code of Conduct, new suppliers onboarded
support our commitment to responsible
our Human Rights Policy and making available to the system are required to complete due
business and drive commercial advantage
a new e-learning module for all colleagues to diligence questionnaires, which include
through risk identification and mitigation.
support in preventing human trafficking. questions on human rights, labour,
Specific monitoring arrangements are in environment and anti-corruption.
In 2019 IHG joined the Tourism Child-
place for key risk areas. For example, our
Protection Code of Conduct to benefit from Our internal audit team aims to provide
operational risk specialists track a range
ECPAT-USA’s expertise in addressing human objective and insightful assurance to the
of indicators of safety and security risks to
trafficking and child sexual exploitation risks Board and management over our control
assess their potential impact on hotel
within the hospitality industry. environment. Internal audit also provides
operations, and to consider where additional
independent oversight of the mechanisms
Our Modern Slavery statement
guidance, learning materials or adjustments
in place for confidential reporting across
is available on our website to existing controls may be required. Despite
IHG, including the design and operation of
www.ihgplc.com/modernslavery best efforts, incidents occur across our hotel
the reporting hotline, and maintains an
operations. IHG management reviews
ongoing dialogue with employees from
Bribery and financial crime reported incidents as appropriate.
Human Resources, Ethics & Compliance
Bribery and financial crime, including
We carry out risk-based due diligence and and Finance to monitor:
improper payments, money laundering and
compliance checks on new third-party hotel
tax evasion, are not permitted at IHG under • the volume of reports received;
owners with whom we enter into hotel
any circumstances. This also applies to any • the source and nature of allegations
management or licence agreements.
agents, consultants and other service received; and
A central committee of senior IHG decision-
providers who do work on IHG’s behalf.
makers considers and reviews any material • the overall environment across the Group
Our Anti-Bribery Policy sets out IHG’s
issues, such as concerns or allegations of to promote a ‘speak-up’ culture.
zero-tolerance approach and is applicable
to all Directors, IHG employees and our
managed hotels. It is accompanied by a
mandatory anti-bribery e-learning module.
Our Gifts and Entertainment Policy supports
our approach to anti-bribery and corruption.
Increased targeted engagement was
undertaken in 2019, including face-to-face
training for employees in our corporate offices.
IHG is a member of Transparency International
UK’s Business Integrity Forum and participates
in its annual Corporate Anti-Corruption
Benchmark. The results from this are used
to help measure the effectiveness of the
anti-bribery and corruption programme and
identify areas for continuous improvement.
Handling information responsibly
As set out in our Code, we want everyone,
including guests booking via our reservation
channels, members of our loyalty
programmes, colleagues, shareholders and
other stakeholders, to trust the way we
manage their information and are addressing
cybersecurity threats. We have standards,
policies and procedures in place to manage
how personal data should be used and Crisis
protected. In 2019 we relaunched our management
e-learning training for employees on training
handling information responsibly, covering In 2019 crisis
management training
topics such as how to work with vendors and
and awareness exercises
transfer data securely. were run across seven
IHG offices.

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 27
Strategic Report

Our culture, responsible business


and stakeholders continued

Employee engagement Applying a consistent approach to reward


Our people At IHG we foster a culture of open and across the corporate business, which we
honest feedback. Responsibility for regularly review against our competitors,
Who leads at IHG employee engagement is a company-wide ensures that we meet the needs of
• Board and Committees activity. Through our wide range of employees by offering market-driven rewards
• Designated non-executive director engagement forums, management-led packages. We place great emphasis on
‘Voice of the Employee’ performance updates and Voice of the aligning everyone to our business strategy,
Employee, (see pages 32 and 33), we talk so that shareholders and employees have
• Executive Committee
to employees about our performance, key a shared interest in the performance of the
• Senior Leaders metrics, values, diversity and inclusion Group. This alignment was further
• D&I Board initiatives, and we give them the opportunity strengthened in 2019 with the launch of an
• Human Resources function to talk to each other and give feedback to employee share plan, which will encourage
the Board, Executive Committee and Senior shared ownership and align the interests of
How we engage Leaders. This information assists them in employees with our external stakeholders.
• Board and Committee oversight, their decision making.
monitoring and review Our wider Remuneration policies are
Our employee engagement survey, ‘Colleague regularly reviewed by the Remuneration
• Responsible Business Targets HeartBeat’, is measured bi-annually and is Committee. See the Remuneration Report
2018-2020 completed by our corporate, customer and Directors Remuneration Policy on
reservations office and managed hotel pages 96 to 117 for more information
• Colleague HeartBeat
on how we align workforce and
employees (excluding our joint ventures).
• Town Halls, conversation series executive reward.
In 2019 the survey focused on key areas
and blogs
associated with our business strategy. 96%
• Employee Resource Groups (ERGs) Early talent development
of the participants responded and our overall
and other employee forums Recognising the significance of people to
employee engagement was 87%. We saw
our business, we aim to attract the very best
• Sustainable Leadership programmes several positive shifts across our employee
talent into our hotels through our Early
• Rise programmes engagement, most notably in relation to
Careers programme, where we provide
questions about our growth behaviours. Areas
• Conscious inclusion workshops programmes to young people looking
for improvement include a focus on enabling
• Virtual Learning summits for work experience, internships,
effective work processes for employees,
apprenticeships and graduate opportunities.
• IHG® Academy resource deployment, and ways of working
• Careers and job portals between regional and global teams. The During 2019 we recruited over 15,000
Executive Committee and Senior Leaders participants into our Early Careers
continue to look for ways to appropriately programme globally, providing them with
address this feedback. first look experiences, work placements
IHG is constantly developing, with a new
and permanent roles with IHG.
organisational structure deployed in 2018, Reward culture
and a focus on accelerating our growth. Our reward packages aim to attract, retain
Our people are key to delivering both our and motivate top talent, and are centred

14,436
purpose of True Hospitality for everyone around a set of core principles: Colleagues
and our strategic initiatives. We believe that worldwide
• Our employees are recognised and paid
an engaged and diverse workforce, and

400k+
competitively for their contribution to the Number of employees
inclusive environment are necessary to
Group’s success; whose costs were borne
our competitiveness. We seek to employ by the Group or the
talented people, develop and train them, • Reward and recognition practices are System Fund.
and provide a diverse and inclusive culture consistent across our employee population
in which they can thrive. We also seek to regardless of gender and other aspects
ensure that our approach to compensation of diversity; and
IHG’s direct workforce Due to our business
and benefits remains competitive. • There is alignment between the wider includes employees model, we do not employ
workforce and how executives are working in IHG corporate the vast majority of
Our activities rewarded. offices, reservation people working in IHG
centres and owned,, branded hotels.
The Board and Executive Committee managed, leased and Franchised hotels are
considered the impact on employee managed lease hotels. independently owned
interests regularly during the year, including and operated.
in relation to the acquisition of Six Senses,
diversity and inclusion initiatives, such as
the adoption of a flexible working policy, and
employee engagement matters. The
Corporate Responsibility Committee reviews
progress against our people 2018-2020
Responsible Business Targets and our CEO
continues to chair our D&I Board, (see the
Governance section on pages 92 and 93
for more information).

28 IHG  |  Annual Report and Form 20-F 2019


We also signed a partnership with Swiss Attracting and developing top talent As at 31 December 2019 Male Female Total
hospitality schools Les Roches, Glion and To ensure we achieve our strategic priorities Directors 7 4 11
EHL to develop global hospitality talent. As a as a business, we know we need to attract, Executive Committee 7 3 10
result of this partnership, IHG leaders visited develop and retain a diverse and talented
Executive Committee
the schools to participate in curriculum workforce.
direct reports 40 23 63
development and welcomed over 100 of
In 2019 we continued to use our Learning Senior managers
their students into our hotels and support
Management System to ensure that all (including directors
centres to share with them our passion for of subsidiaries) 102 34 136
IHG employees have a more seamless
True Hospitality for everyone.
experience accessing IHG learning content. All employees
As part of our Responsible Business Targets In addition to improvements across our (whose costs were
we are committed to increasing the number Learning offer, we launched a job posting borne by the Group
or the System Fund) 6,498 7,938 14,436
of young people coming through IHG’s portal (available in 13 languages) that allows
Academy. The IHG Academy is a collaboration our franchisees access to IHG’s career
between individuals, IHG hotels, corporate website and have their open positions
offices, local education providers and included in search results.
community organisations. It provides local
It was also a foundational year for the
people with the opportunity to develop skills
development of our Talent Attraction
and improve their employment prospects in
Strategy, which recognises that as the
one of the world’s largest hotel companies.
business grows, we will need to develop
In 2019, several improvements were made to more creative and efficient ways to attract
the programme, including first look and people to work in our hotels. Our plans
internship ‘Learning Pathway’ toolkits, include revitalising our Employer Brand to
designed to enhance the participant’s create a more enduring and distinctive value
experience and support consistent proposition and candidate experience.
execution of the programme globally.

EMEAA General Manager (GM) General Manager


Learning Events Learning Events
During 2019, IHG held GM Learning Events The events were
across EMEAA, welcoming 632 GMs to a designed to create
number of four-day events. The events were engaging and dynamic
learning opportunities
designed to create engaging and dynamic for our hotel leaders.
learning opportunities for our hotel leaders.
The IHG Learning and Development team

90%
designed the agenda to deepen GM
knowledge across the region and provide
them with the right tools to drive
performance at their hotels. All the learning
of attendees would
modules were developed in support of IHG’s recommend the Learning
growth strategy and to maximise each GM’s Events to other GMs.
personal development.

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 29
Strategic Report

Our culture, responsible business


and stakeholders continued

Our D&I Framework


Diversity
and 1. 2.
Strengthening Increasing the
Inclusion a culture of diversity of our
(D&I) inclusion leadership
talent

IHG is a global business with a global reach


and as such D&I is fundamental for us to
succeed. Our colleagues and guests
represent multiple nationalities, cultures, 3.
races, sexual orientation, backgrounds and Putting the right
beliefs. It makes for a diverse and inclusive
culture we are proud of, underpins our decision-making
purpose to provide True Hospitality for around our
everyone and is key to our ‘celebrate
difference’ value. actions
Our special culture is crucial to who we are,
how we work together and how we grow our
business. We are proud to have been
recognised as a Kincentric (formerly a part of
Aon) Global Best Employer three years
running, Best Place to Work for LGBTQ
Equality, by the Human Rights Campaign’s
Corporate Equality Index in the US for the
past six years, and for our CEO to be
awarded third place in the HERoes awards
for advocating women in business.
We are committed to a continual review of
our practices and policies, such as raising
awareness of bias at all levels in our hiring
processes and reviewing flexible working
processes and policies. We have signed up
to the WiHTL’s Diversity in Hospitality, Travel
and Leisure Charter, a 10-point action plan
that ensures diversity and inclusion not only
remains a priority but that we openly track
progress towards our goals.
We also support the UN LGBTI Standards for
Business, which focus on tackling
discrimination against lesbian, gay, bi, trans
and intersex people. And at the beginning of
2020, IHG became signatories of the CEO
Action for Diversity and Inclusion, and
The Valuable 500.
The Nomination Committee was
accountable for our global D&I Policy during
2019, but this responsibility will move to the
Corporate Responsibility Committee in
2020. The operational D&I Board ensures
that we put the D&I policy into practice.
For more information see the Governance
section on pages 92 and 93.

30 IHG  |  Annual Report and Form 20-F 2019


1. Strengthening a culture of inclusion 2. Increasing the diversity of our 3. Putting the right decision-making around
At IHG one of the core pillars of our D&I leadership talent our actions
strategy is to foster a culture of inclusion As part of our 2018-2020 Responsible In 2018 we established our Global Diversity &
so all employees feel included, valued and Business Targets we made a commitment to Inclusion Board, (D&I Board), led by our CEO
respected. Last year our Senior Leaders took increase the diversity of our Senior Leaders, and other Senior Leaders in IHG who are
part in a conscious inclusion programme as well as increase the number of females responsible for shaping IHG’s diversity and
to equip them to role model inclusive working in General Manager and Operations inclusion priorities. The D&I Board worked
leadership and champion the flexible roles in managed hotels. with a third-party independent partner to
working guidelines that we have launched gain a different perspective of our business
Although our overall percentage of female
globally. We piloted changes to our and help us identify areas for improvement.
Senior Leaders, currently 37% globally, is
recruitment practices which we plan to The key objectives of the partnership were
the same as our 2017 baseline, we are
scale globally in 2020. to identify the ‘typical profile’ of individuals
committed to furthering the opportunities
deemed to be successful at IHG, understand
We also expanded our existing Employee for female leaders. We continue to drive
real and perceived barriers to success for
Resource Groups (ERGs) globally following increased representation through initiatives
women, and define actions to address those
regional success, and now have more than such as the development of our Future
barriers and improve leadership gender
1,700 members across groups such as Out Leaders’ programme, which provides
balance. As a result of this work we took
and Open, FAVE (field and virtual graduate-level talent with the opportunity
several actions, such as the launch of our
employees), PATH (pan Asians for true to work across a range of departments
flexible working policy.
hospitality), BBX (baby boomers and Gen X), and geographies.
and DAWN (disability and well-being network). As part of our ongoing commitment to
We have also extended our Rise mentoring
diversity and inclusion we also launched
For example, Out and Open is a forum for initiative for aspiring female General
Diversity & Inclusion Councils across our
colleagues to get involved with LGBTQ+ Managers to China, India, the Middle East,
regions in 2019, which represent the voice
focused activities and conversations. The Europe and the Americas, which enabled us
of our regions and markets, making sure we
ERG has more than 150 active members, to increase the percentage of women in
listen to employees and engage on local
who come together throughout the year to General Manager and Operations roles from
priorities, as well as collaborating to roll
celebrate key dates in the LGBTQ+ calendar. 24% to 26%.
out initiatives.
Through collaboration with Hotel Indigo, Out
and Open helped launch the #ColorOfPride
campaign, which all Hotel Indigo properties
in the Americas celebrated. They continued
IHG CEO Keith Barr
the theme into our Atlanta Pride ranked within

3
celebrations, which is the biggest event for
IHG Out and Open each year. Annually,
around 250 colleagues, friends and family top
volunteer their time in the IHG booth and 40 Advocate Executives
walk with the IHG float in the Pride parade. The HERoes Women Role
Model List
At the Holiday Inn Singapore Orchard City
Centre, approximately 12% of staff are
For the ninth Listed by the Hampton-
colleagues with disabilities. The hotel, which Alexander Review in the
consecutive year,

10
has been recognised for its work in this area
IHG has earned
by the UN, invests in providing training for
a spot on the
managers to adjust to the different ways
Atlanta Journal-
top
of communicating with persons with of FTSE 100 companies
Constitution’s Top
disabilities. This includes encouraging for female representation
Workplaces list among senior leadership
managers to give more regular feedback,
supervision and encouragement to
colleagues with disabilities to ensure
they always feel a part of the IHG family. 100%
rating in the Human Rights
Within India, Nepal and Bangladesh,
Campaign’s Corporate
we have close to 100 colleagues with Equality Index making IHG
disabilities working for IHG branded hotels. a best place to work for
To cultivate a supportive environment for LGBTQ Equality in the US
or the last six years
them, we have partnered with the Sarthak
Educational Trust to deliver training sessions Kincentric IHG Change 100
for hotel colleagues and developed a toolkit (formerly a part of Aon) won ‘Best Initiative’ in HR
and a series of guidance videos on working Talent & Management at
with colleagues with disabilities. Global Best the Worldwide Hospitality
Awards
Employer
for three years running

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 31
Strategic Report

Our culture, responsible business


and stakeholders continued

Designated As part of IHG’s commitment


Workforce non-
executive
to compliance with the UK
2018 Corporate Governance
engagement director Code, the Board asked Luke
Mayhew, Non-Executive
Director (NED), to conduct a review and
recommend the best way for the Board to
engage with, and take fully into account, the
views of employees, and how that would
align with IHG’s existing employee forums,
feedback mechanisms and monitoring by
the Board. Luke was supported in the review
by the CEO, Chief Human Resources Officer
and Company Secretary. He reported to the
Nomination Committee during the course of
the year, which in turn made a proposal to
the Board that a designated non-executive
director was the most appropriate approach
for IHG, as it aligned with existing employee
engagement forums. The Board formally
appointed Luke as the designated non-
executive director with responsibility for
workforce engagement (Voice of the
Employee) in August 2019.
Due to the global reach of IHG, Luke is
supported in his role by Jill McDonald (Chair
of the Corporate Responsibility Committee),
as well as other NEDs depending on the
forum and topic matter. All Directors engage
with employees during the course of the
year as part of hotel and office visits.
The Board will review this approach annually
in the light of any changing governance
expectations and ongoing feedback.
Luke’s role is to:
Role • Ensure that employee
interests and feedback are
structured into the Board’s
deliberations and the setting
of KPIs;
• Support management in the design and
content of structured Board discussions on
culture and employee engagement; and
• Review the effectiveness of wider
employee engagement approaches.
His responsibilities include ensuring that:
• The Board, through the Executive, has
effective methods of receiving feedback
from employees and communicating Board
and executive decisions and priorities
throughout the organisation;
• All significant business and budget
proposals include a management
assessment on the impact on employees;
• Executives share employee feedback
openly, transparently and in a balanced
way, including reviewing employee
engagement surveys and other employee
Designated reports including whistleblowing;
Insights
non- 2019 Board
Role and 2020 plans
executive engagement actions
learnings
director

32 IHG  |  Annual Report and Form 20-F 2019


Insights from the forums With the responsibilities and
Insights
included understanding: expectations agreed and fully
and 2020 plans
trialled in 2019, a plan of
learnings • How informal peer support
meetings and review sessions
amongst employees works
has been scheduled for 2020.
across a range of topics;
• How formal management engagement The schedule includes opportunities to meet
with employee forum representatives is and talk to a range of employees in different
conducted; locations across band levels, and further
develop Luke’s understanding of employee
• How the CEO and other Executive
issues and concerns. He will meet them
Committee members communicate
at a variety of IHG’s existing employee
performance and culture updates with
engagement forums, such as Town Halls,
employees;
virtual interface meetings and corporate
• How the D&I Board works and the regional office visits. The meetings will also
commitment to rolling out this initiative; give employees the opportunity to give
• How regional ERGs are launched and the feedback to the Board, through Luke.
key issues they discuss;
Meeting and engagement topics to include:
• The Board considers any dissonance • How culture-related initiatives resonate
most effectively with employees; and • Performance results – employee questions
between what is reported to it and what
and management responses;
emerges from feedback to the Voice of the • How our employee engagement survey,
Employee; and (Colleague HeartBeat), results are analysed • Employee feedback on the transformation
and acted on by management. programme and IHG competitiveness;
• Other NEDs gather feedback and
perspectives from employees too. • Manager-level employee issues and
As well as Luke’s activities, Jo Harlow attended
observations;
Human Resources (HR) provides Luke a European Employee Forum and Jill McDonald
attended an ERG and D&I overview session in • D&I Board perspectives;
with support regarding planning and
engagement forums, and shares findings Atlanta. Patrick Cescau visited Japan with • Lean In peer support issues and activities;
on employee engagement surveys and HR Kenneth Macpherson in February 2019 where • European Employee Forum – engagement
scorecards. Luke is expected to seek he met employees, and visited Mexico with with Forum representatives; and
feedback from other NEDs, in a private Elie Maalouf in June 2019 and met IHG leaders
• Regional ERG activities.
session at each Board meeting, from their and employees in the region.
meetings with employees and discuss Planned 2020 Voice of the Employee and
The Board did not consider
insights with the CEO and Board as Board reviews and interactions, ahead or as
that any significant change of
appropriate. In addition, he will respond to Board part of Board meetings, include:
actions direction or overall approach
shareholders on questions of governance in to engagement was needed • Review of the engagement dashboard with
respect of the Voice of the Employee. in light of Luke’s activities. Luke and Jill;
During 2019 a schedule of However, following his observations and • Review of the HR scorecard and employee
employee forums and meetings feedback the following are being engagement dashboard, and deep-dive
2019
engagement was agreed with Luke to attend
actioned by HR: into specific areas of Board interest;
and appreciate the scope of • Improved employee dashboards and • Participation in a virtual employee interface
existing engagement methods, scorecards to better enable the Board’s session with Company managers in Asia;
employee concerns and points of view on appreciation of employee concerns and and
company culture, diversity and inclusion, engagement results; • People and Culture Strategy and Voice of
career opportunities, strategy and
• Revised and additional wording in the Employee feedback discussion.
performance, as well as to discuss the
engagement surveys to gain more relevant In addition:
role of the Board and its Committees.
feedback on the impact and progress of
Luke visited our corporate offices in Atlanta the transformation programme; and • Luke and other NEDs will discuss any
in the US, and Branston and Denham in the material feedback from their meetings with
• Active Board support for diversity and
UK and observed a number of Town Hall employees, as and when it is received;
inclusion initiatives being launched across
meetings, attended a variety of employee IHG and the optimisation by the Executive • All relevant Board and budget papers will
meetings and focus groups, including Committee of ERGs as the most effective continue to have an employee impact
Lean In Circles and employee resource touchpoint with the Voice of the Employee. assessment; and
group (ERG) meetings, with employees from
all band levels, across all IHG functions. • The Board will regularly review the
Those locations were chosen as they are approach in line with best practice and
our main corporate headquarters where changes in regulation.
we have 3,098 employees. Branston was
a key location in our 2018 transformation
programme, where 78 new roles
were created. In Atlanta there are
eight active employee groups reflecting
employee communities.

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 33
Strategic Report

Our culture, responsible business


and stakeholders continued

reporting in line with the Task Force on Waste


Environment Climate-related Financial Disclosures. To help address the waste generated by our
corporate offices and hotels, from food to
Tackling climate change related issues
Who leads at IHG plastics and linens, and make our offices and
involves collaboration with our key
• Board and Committees hotels more sustainable, we have mapped
stakeholders to find solutions and
• Executive Committee out the biggest areas of waste within our
innovations to drive positive outcomes.
operations and considered our global
• Senior Leaders We are uniquely placed to educate and
and environmental impact, operational
• IHG Responsible Business Governance support behavioural change amongst our
requirements and guest experience. We are
Committee (represented by senior third-party hotel owners, suppliers and
proud to be the first global hotel group to
management from across the millions of guests, and will continue to
commit to switching all our bathroom
business) develop our approach.
amenities to bulk-size products.
• Corporate Responsibility function
Our activities Food waste is a big challenge for our
Environmental sustainability industry and we recognise we have more to
How we engage
Our environmental policy sets out our do in this area. We have partnered with a
• Board and Committee oversight,
approach to measuring and managing our third-party technology company in 24 hotels
monitoring and review
environmental impact, and supports and to use their AI technology to track, measure
• Responsible Business Targets guides our colleagues and hotels to find and reduce food waste for more sustainable
2018-2020 innovative ways to reduce our environmental and efficient restaurant and bar operations.
• Dashboards sent monthly to Executive footprint. Our group-wide online digital On average we have achieved reductions
Committee on progress against our sustainability platform, the IHG Green of 35%.
hotel carbon reduction target Engage™ system, helps hotels and
Water
• Responsible Business Report colleagues measure and reduce energy,
Following a comprehensive water risk
carbon, water and waste.
• IHG Green Engage™ system assessment in 2016, and reassessment in
Carbon and energy 2019 of our open hotels and pipeline, we
One of our Responsible Business Targets is have identified risks related to water quantity
With 5,903 hotels operating in more than to reduce our carbon footprint per occupied and quality and developed water
100 countries, we recognise the risks room by 6-7% over the period 2018-2020. stewardship action plans for our hotels
presented by climate change, which have Over a two year period, we have reduced our in water stressed areas.
the potential to impact our performance and carbon footprint by 5.9% per occupied
In 2018 we committed to launching two
growth, and our responsibility to keep room, including a 3.7% reduction in 2019,
water stewardship projects each year, and
adapting to meet the challenge. In 2019, the from a 2017 baseline.
in 2019 we launched two projects in Beijing
Board considered the Company’s post-2020
As we look at our longer-term ambitions, and Bali.
environmental sustainability approach and
we know that we have to do more, which
ambitions, and the Corporate Responsibility To signal our continued water stewardship
is why we have set a 2030 science-based
Committee endorsed new sustainability work, CEO Keith Barr has signed a
target to reduce greenhouse gas emissions.
commitments, including a science-based commitment of membership to the
target for carbon reduction by 2030, and UN Global Compact CEO Water Mandate.
This represents a pledge to six core
commitments that mobilises business
leaders on water, sanitation, and the UN
Sustainable Development Goals.

Further information about our


Responsible Business Targets and
our responsible business approach
is available on our website
www.ihgplc.com/responsible-business

See details of our greenhouse gas (GHG)

200m
emissions on page 223.

IHG is significantly
reducing the number
of bathroom miniatures
used in its hotels
each year
Task Force on Climate-related
Financial Disclosures (TCFD)
Building on the work we have done
In July 2019 we were the to set science-based targets, we
first global hotel group to have made a formal commitment
commit to removing to implement the recommendations
single use miniature
bathroom amenities from
of the TCFD, and in 2020 we will be
our entire estate. developing a disclosure roadmap
for the coming years.

34 IHG  |  Annual Report and Form 20-F 2019


The travel and tourism industry accounts for local communities, as part of our post-2020
Community 1 in 10 jobs globally with hotels in thousands responsible business ambitions, and
of communities. The resilience and the recognise that we need to keep developing
Who leads at IHG prosperity of those communities and their our approach.
• Board and Committees people are important factors to how we
Charitable partnerships
• Executive Committee operate and our long-term success.
In 2019, through our partnerships with NGOs
• Senior Leaders Our community policy supports and guides and charities, we contributed more than
• IHG Responsible Business Governance our hotels and colleagues on how to be a $1.3m to projects and causes in areas of
Committee (Represented by Senior responsible partner with our communities, hospitality skills building, environmental
Leadership from across the business) whilst ensuring that our business objectives sustainability and disaster relief, supporting
enhance the quality of life in the community. 25,000 people globally.
• Corporate Responsibility function
We work with global disaster relief agencies
How we engage Our activities
to provide support and preparedness
• Board and Committee oversight, We aim to maximise the positive
training in the event of natural disasters for
monitoring and review contribution we make by creating shared
our colleagues and local communities.
value in our communities through our True
• Responsible Business Targets
Hospitality for Good programme. We form Giving for Good month
2018-2020
strategic partnerships with non-government Our Giving for Good month in September
• True Hospitality for Good programme organisations, (NGOs), and charities that can 2019 brought colleagues together to make
• Giving for Good month help to make a difference in communities positive change through volunteering, taking
• Charitable partnerships and wider society, helping shape a positive care of the environment, and activities
future for generations to come. focused on health, fitness and wellbeing.
• Volunteering days
A record-breaking 160,000 colleagues in
• Responsible Business Report In 2019 we launched volunteering guidelines
88 countries took part in 2019, volunteering
and encouraged employees to take two paid
188,000 hours of their time.
days each year to help charitable causes.
Our Board and Executive Committee have For details of our IHG Academy
evaluated our future approach to supporting programme see page 29

IHG First Look


In 2019 as part of our commitment to
helping young people gain skills and
experience in hospitality, we partnered with
JA (Junior Achievement) Worldwide, one
of the world’s largest youth-serving NGOs,
which focuses on preparing people for
future employment and entrepreneurship.
Through an IHG Foundation legacy grant,
we worked to develop a curriculum to run
hotel work-experience events called IHG
First Look; providing young people with the
opportunity to receive hands-on experience
working in a hotel. Combining classroom
working and a practical hotel takeover,
students receive a close-up look at what a
career in hospitality involves. Initiated during
2019, this year-long partnership will support
more than 750 young people to gain skills
and experience in hospitality, in nine major
markets.
Building on the relationship, in early 2020
we began running a set of innovation
camps, which focus on solving a
sustainability-based problem core to

750
the hospitality industry.

young people gained


skills and experience in
nine major markets.

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 35
Strategic Report

Our culture, responsible business


and stakeholders continued

We recognise that our purpose, culture, Our activities


Investors and business model and strategy are Shareholder meetings
shareholders fundamental to attracting and retaining
investment in our Company. With a
We consider our AGM and, when we need to
hold them, General Meetings, to be
commitment to open dialogue we maintain invaluable forums for communicating with
Who leads at IHG
a comprehensive programme of investor investors and shareholders, both formally as
• Board and Committees
relations activities. part of the meeting, and informally
• Executive Committee afterwards.
In order to keep up-to-date with best
• Investor Relations function
practice and market views, the Company During 2019 we held a General Meeting in
• Functional business partners including solicits independent advice and assesses January to approve a share consolidation
Corporate Affairs, Human Resources and guidance provided by a number of agencies, proposal, and held our AGM in May to
Business Reputation and Responsibility including the Investment Association. conduct our usual statutory business.

How we engage A formal external review of investor The 2020 AGM will be held at 11:00 on
• Board and Committee oversight, perceptions is presented to the Board on Thursday 7 May 2020. The notice convening
monitoring and review an annual basis and both the Executive the meeting, including details of the
Committee and the Board receive regular conditions of admission, will be sent to
• Annual General Meeting (AGM)
updates on shareholder relations to ensure shareholders and be available at
and General Meetings
that they are made aware of and understand www.ihgplc.com/investors under
• Results presentations the views and perceptions of our major Shareholder centre in the AGMs and
• Investor roadshows, face-to-face shareholders, in order to develop a meetings section, along with the results
meetings and presentations balanced understanding. of the 2019 AGM and General Meeting.
• Annual investor perception survey In addition, our Registrar, Equiniti, and Results presentations
• Asset reunification programme J.P. Morgan Chase Bank, N.A., custodians of Each year Keith Barr and Paul Edgecliffe-
• Shareholder dealing programme our American Depositary Receipts (ADR) Johnson present to institutional investors,
programme, have teams equipped to deal analysts and the media following our
• Annual Report and Form 20-F,
with shareholder and ADR holder queries. half-year and full-year results
Responsible Business and other
announcements. Telephone conferences
publications
are held following the release of our first
• Website, media and regulatory and third-quarter trading updates, including
announcements Q&A sessions with sell-side analysts.

36 IHG  |  Annual Report and Form 20-F 2019


Investor meetings The Investor Relations team also engaged The Senior Independent Director, Dale
As part of our annual cycle we have a with retail shareholders and hosted two Morrison, was and remains available to
programme of one-to-one meetings with investor forums in London during 2019 to shareholders if they have concerns they
major institutional shareholders, including help shareholders understand our strategy wish to discuss.
Non-Executive Director meetings, hosted and performance. The feedback and insights
Shareholder services
by the Chair. from these events will help us develop and
During 2019, IHG ran its annual share-
shape future engagement.
We also attend key institutional investor dealing programme for shareholders with
conferences and hold a series of investor In addition to this, we held a series of shareholdings of up to 225 shares, giving
roadshow events in the UK, US, Canada and investor consultation meetings between them the option to sell or increase their
Europe. In addition, we hold telephone our Chair of the Remuneration Committee, shareholdings at a preferable set fee.
conference events with investors and Jo Harlow and major shareholders seeking Shareholders who sold their shares had the
shareholders in other countries to keep feedback on the proposed Directors’ option to donate their proceeds to charity.
them up-to-date with IHG performance Remuneration Policy.
and strategy, and engage with them on
their areas of interest.
Elie Maalouf and Kenneth Macpherson held
investor roundtables during the year and
investor hotel tours took place in both
London and Cardiff. During November we
hosted an education event about our
business in Greater China, with Keith Barr
and Jolyon Bulley outlining our competitive
position and strategy in that region.

To enable as many shareholders as


possible to access conferences and
presentations, telephone dial-in
facilities are made available in
advance and live audio webcasts
are made available after results
presentations, together with
associated data and documentation.
These can be found at
www.ihgplc.com/investors
under Results and presentations.
Details of the sell-side research
analysts who publish research
on the Group are available at
www.ihgplc.com/investors under
Analyst details and consensus.

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 37
Strategic Report

Our culture, responsible business


and stakeholders continued

During 2019, we made progress with our During the year our Supplier Code of
Suppliers supplier risk assurance programme pilot, Conduct was updated and approved by the
with support from the British Standards Corporate Responsibility Committee. The
Who leads at IHG Institute. As part of the introductory pilot, Supplier Code sets out our requirement for
• Board and Committees which began in 2018, we issued a desktop- suppliers to demonstrate that they act with
• Oversight from the Chief based risk assessment questionnaire to all integrity and respect for human rights and
Financial Officer IHG Marketplace suppliers to help us the environment. We expect our suppliers to
understand their governance, human rights adhere to these standards, both within their
• IHG Responsible Business Governance
and environmental practices. In 2019, we own business and across their supply chains.
Committee
reviewed responses and categorised them
• Procurement function, including IHG complies with the statutory
based on their risk profile. We will expand
Strategic Supplier Management reporting duty on payment practices and
the scope beyond the IHG Marketplace
Office (SSMO) performance and is a signatory of the
suppliers group in the next phase of our
Prompt Payment Code.
programme. The initial pilot has been an
How we engage important step in understanding our
• Board and Committee oversight, See also our business relationships
supply base. disclosure on page 224.
monitoring and review
The Strategic Supplier Management Office,
• Responsible Business Targets
(SSMO), supports strategic suppliers,

3,688
2018-2020
identified for their contractual and IHG Green
• Supplier Code of Conduct operational value, via business performance Supplier
• IHG Green Supplier scorecard reviews to promote value realisation, Scorecard Suppliers signed
• Employee education programme risk mitigation and create healthy
introduced the IHG Supplier Code
on responsible procurement supplier partnerships. of Conduct at
in 2019 31 December 2019
• Supplier risk assurance programme
Our activities
Our supply chain activities are split into two
Being a trusted business with a strong
categories – corporate and hotel supply In 2019, our Responsible
chains. Our corporate supply chain covers spend with procurement
reputation is critical to our long-term
items such as technology and professional
operational growth. Our scale gives hotels
services. Procurement of goods and services
diverse suppliers education
under our brands the benefits of broader in the US, programme
at hotel level, covers items required for
supply chain opportunities and consistent
opening, renovating and operating a hotel, increased by launched in
products and services, which in turn benefits
our guests. We have a complex supply chain
such as food and beverages, furniture, linen 43% to $102m 2019
and electrical goods. Procurement
and work with suppliers who share our
predominantly occurs at local hotel level as
commitment to our responsible business
our hotels are largely owned by independent
agenda and ethical work practices.
third-party owners, who are responsible
The Procurement function drives IHG’s for managing their own independent
Responsible Business agenda into our supply chains.
supply chains. During 2019 the function
In certain cases, IHG provides a centralised
focused on enhancing the foundations for
procurement programme for both managed
responsible procurement in IHG, through
and franchised hotels, such as IHG®
the supply chain risk assurance programme,
Marketplace in the Americas region (for US,
employee awareness of responsible
Canada, Mexico) and IHG Mall in Greater
procurement and our IHG Green Supplier
China. IHG also provides purchasing support
programme, which evaluates prospective
and leverages procurement platforms for
suppliers across a number of
managed hotels in some countries
sustainability factors.
within EMEAA.

Gender-inclusive supply chain


Following a review of our supply chain, we
identified textiles as a priority supply chain
commodity, given they are widely present in
our hotels. At IHG, we know that gender-
inclusivity is essential for a sustainable
business, leading to more productive,
resilient and secure value chains. This is why
in partnership with CARE International and
our key suppliers, we are exploring the social
impacts that can be gained through creating
more gender-inclusive workplaces via a
detailed supply-chain mapping and gender
risk analysis exercise.

38 IHG  |  Annual Report and Form 20-F 2019


We also engage with the IHG Owners • The 2019 NYU International Hospitality
Hotel owners Association (IHGOA), the representative Industry Conference in New York;
body of more than 4,500 hotel owners and • Strategic Owners Gathering at the
Who leads at IHG operators for nearly 3,600 IHG branded InterContinental Zhuhai Yanheng,
• Board and Committees hotels worldwide, in relation to brand celebrating Greater China’s 400th hotel
• Executive Committee initiatives, industry topics and hotel milestone;
operations. In 2019, we worked with various
• Senior Leaders • Hotel openings, including InterContinental
IHGOA committees to obtain owner
• Regional hotel lifecycle and Beppu Resort and Spa in Japan,
feedback on IHG standards, programmes
growth functions InterContinental Houston – Medical Center
and initiatives that impact both owners and
in the US, and Kimpton Da’an in Taipei;
• Regional hotel operational guests. In particular, we engaged with the
support functions IHGOA on our System Fund. • Dinners at the InterContinental Berlin (as
part of the IHIF), and at the InterContinental
We also establish, when appropriate, Shanghai Wonderland;
How we engage
working groups with key owners in relation
• Board and Committee oversight, • Face-to-face meetings during visits to
to major public issues relevant to the
monitoring and review priority markets, including Mainland China,
hospitality sector. In 2019, for example,
• IHG Owners Association meetings Japan and Mexico; and
we formed a group to consider Brexit.
• International Hotel Investment Forum • Americas Investors and Leadership
In 2019, members of the Board and Conference for owners and General
(IHIF)
Executive Committee engaged with Managers in Las Vegas.
• Owner HeartBeat surveys a number of our key owners at
• Regional brand and owner events including: See page 23 for details about how we
conferences are optimising our brand portfolio for
• The 2019 World Economic Forum in Davos; our owners and guests.
• Owner portfolio and hotel reviews
• Dedicated operational support
• Hotel openings
• Hospitality industry forums

Our global network of hotel owners is one of


IHG’s greatest strengths and we continually
look to evolve our owner proposition. Our
success is reliant on matching owners with
the right brands in our portfolio and markets,
sharing a common outlook on responsible
business and working together to use our
scale and resources to drive strong returns.
From meeting to discuss a new project, to
planning every facet of a hotel’s operations,
to the opening itself, we focus on building
businesses. Once open, we support owners
with world class, brand-specific resources
that help drive hotel employee performance,
improved guest satisfaction and increased
revenues.

Our activities
Across our managed estate hotel operations,
including operations leaders, General
Managers, hotel employees and corporate
operations support, regularly engage with
owners on hotel performance. Our franchise

3,780
performance support teams engage with
franchised owners and operators through
annual portfolio or hotel reviews.
owners and operators at
the Americas Investors and
Leadership Conference for
owners and General
Managers, in Las Vegas

For more information on the IHGOA


see www.owners.org

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 39
Strategic Report

Our culture, responsible business


and stakeholders continued

Hotel guests and


corporate clients
Who leads at IHG
• Board and Committees
• Executive Committee
• Senior Leaders
• Global Marketing function
• Hotel-facing operations

How we engage
• Board and Committee oversight,
monitoring and review
• Hotel visits
• Corporate and brand websites
• IHG Rewards Club
• Guest HeartBeat surveys
• Guest relations
• Social media channels

We recognise that our hotel guests and


corporate clients want to do business with
a trusted company, with a reputation for
strong business ethics, and a wide portfolio
of hotel brands, which understands and
responds to their environmental and
community concerns.

See page 23 for details about how we


are optimising our brand portfolio for

30m 27m
our owners and guests.
issues and questions in 2019.
• Agents assist our guests with reservations,
Our activities loyalty programme support and other
Strengthening our loyalty programme is one customer service enquiries via telephone, post-stay guest surveys social media reviews
of our strategic drivers and a key foundation email, on-line chat and social media.
for engaging with our guests. See page 20
for more information. During 2019 we continued to enhance guest
experience through several technology
As part of our purpose to provide True initiatives, including IHG Connect, where
Hospitality for everyone we consider guest we have
guests can connect to wifi in our hotels with
experience extremely important:
• We have a dedicated team with a
ease, and IHG Studio, where content from
guests’ devices can be streamed in their
3,300
agents speaking 13
customer-centric agenda focused on individual hotel room. See page 9 for languages, helping guests
measuring guest satisfaction through more information.
data-driven insights derived from post- Whether for business or leisure, we know,
stay surveys and social reviews, which through our guest insight efforts, that hotel
are validated and posted on IHG branded guests increasingly want their stays to be
websites and social media. Data collected more sustainable without any impact on the
informs us how our hotels are performing, quality of their experience. See page 9 for
and helps us to support hotels to improve information about our environmental
where required. activities, including our commitment to
• We have nine contact centres in six reducing plastic bathroom miniatures, which
countries, with over 3,300 agents on hand has received positive guest feedback.
to help guests. They speak 13 different
languages and handled 26.6 million guest

40 IHG  |  Annual Report and Form 20-F 2019


Compliance Statements Employee engagement Non-financial information
IHG has a number of forums, such as Non-financial information, including a
As a UK publicly listed company we have to
Town Halls, weekly office updates and description of policies, due diligence
comply with numerous regulations. In
performance metrics, through which processes and outcomes, where applicable,
order to make it easier to assess
employees are provided with information is set out as follows:
compliance, we have presented some of
on matters of concern to them, including
our compliance statements below. Our • Environmental matters on page 34
awareness of financial and economic factors
statement of compliance with the UK • Social matters on page 35
affecting the performance of the Company,
Corporate Governance Code can be found
career development opportunities and • Anti-corruption and anti-bribery matters
on pages 94 and 95.
Company policies and principles. In addition on pages 26 and 27
there are opportunities to give feedback to • Employee matters on pages 28 to 33
Section 172(1)
Senior Leaders, Executive Committee
A director of a company must act in the way • Respect for human rights on pages 26
members and the Board through Q&A
he or she considers, in good faith, would and 27
sessions, engagement surveys and the Voice
most likely promote the success of the • A description of the Group’s business
of the Employee meetings. During 2019, an
company for the benefit of its members as a model on pages 10 to 13
employee share plan was introduced, which
whole, and in doing so have regard (amongst
also continues to raise awareness of the • The Group’s principal risks on pages
other matters) to:
performance of the Company with 48 to 53
• the likely consequences of any decisions employees. Further information about how • The Group’s KPIs on pages 42 to 45
in the long-term; the Board and Senior Leaders engaged with
• the interests of the company’s employees; employees during the year, and have taken
their interests into account, is set out on
• the need to foster the company’s business
pages 28 to 33, and in the Governance
relationships with suppliers, customers and
section on pages 78 to 117.
others;
• the impact of the company’s operations on Business relationships with suppliers,
the community and environment; customers and others
• the desirability of the company maintaining As part of our strategic growth initiatives,
a reputation for high standards of business the interests of our suppliers, guests and
conduct; and hotel owners are taken into account in our
• the need to act fairly as between members commercial decisions. We engage with them
of the company. at all levels of the Company. Details of our
relationship with them are set out on pages
The Board considers that it has complied in 38 to 40, and should be read together with
all material respects with their s172(1) duties. our disclosures in the rest of the Strategic
Details of how the Board of Directors Report, as well as the Governance and
discharged its duties are set out in the Directors’ Report sections on pages 78
Strategic Report pages 24 to 40 and should to 117 and 221 to 224.
be read in conjunction with information
disclosed in the Governance section, on
pages 78 to 117. The Board and its
Committees received Board papers,
presentations and reports, participated in
discussions and considered the impact of
the Company’s activities on its key
stakeholders, (wherever relevant), against
the backdrop of the Company’s purpose,
values and strategies.

Further information about our responsible


business approach is available on our website
www.ihgplc.com/responsible-business

IHG  |  Annual Report and Form 20-F 2019  |  Strategic Report  |  Our culture, responsible business and stakeholders 41

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