Spanish 
English CORPORATE RESPONSIBILITY REPORTING CRITERIA AND INDICATORS
PRINCIPLES GOVERNING THE PREPARATION OF THE CORPORATE RESPONSIBILITY REPORT
This Report is the twelfth edition of the Annual Corporate Responsibility Report of NH Hotel Group. It integrates the activity and main results of the 2017 fiscal year, with the economic, environmental and social performance.
SCOPE OF THE INFORMATION
In this Report, NH Hotel Group publishes the global management results for the 2017 financial year broken down by Business Units and countries in which the Company operates, and areas in which comparable measurement systems are available. In some cases, the data are reported only for comparable hotels in the corresponding fiscal year. In each case the scope of such data is detailed for more accurate and comparable information, together with the according explanation. This report has not been externally verified.
BALANCE AND COMPARABILITY
The report aims to publish a balanced, accurate and coherent report of its performance, linked to the issues relevant to the Group, its strategic projects and its stakeholders. In this sense, the comparability of data and information regarding previous years is key as a tool for traceability and evolution of such information. This Report, as in previous editions, has been drawn up with the involvement and participation of the heads of business areas and the dialogue with each interest group, making it possible to align the reported information with the relevant aspects for the stakeholders and to respond to their expectations. In this sense, there has been an internal process of gathering and checking information against indicators and quantitative and qualitative measurement data of the sustainable management of NH Hotel Group.
DEFINITION OF CONTENTS
The Group has different systems to dialogue with its stakeholders that are the source of analysis to define the relevant contents to be included in the report. The results of this communication make it possible to keep active the mechanisms to identify needs, as well as the aspects of greater relevance to be included in the Report, as well as the follow-up of the commitments and successful completion of the challenges posed in the previous year. These processes allow the materiality analysis to be kept up to date, as an integrative tool for the relevant business and stakeholder issues. On this basis, the key contents to be reported this year in the Report can be defined, including the main specific indicators that reflect the evolution of the business and the relationship with NH Hotel Group stakeholders.
MATERIALITY ANALYSIS
The analysis of the relevant issues for the business and for stakeholders, or materiality analysis, is key in the Corporate Responsibility management process, both in reporting and in defining the strategy, initiatives and relations with stakeholders.
In 2017 NH Hotel Group has updated this analysis to define the contents of this Report. This process has been carried out in different phases:
Identification
Material matters have been identified based on an analysis of internal and external sources that have made it possible to determine a preliminary list of relevant matters for NH Hotel Group and for its stakeholders.
| STRATEGY AND PRIORITIES FOR NHHG | SUSTAINABLE DEVELOPMENT GOALS – SDG | PRESCRIBERS AND TRENDS IN THE SECTOR | CSR TRENDS |
| Strategic Plan 2017-2019 | SDG in which NHHG has a direct and indirect impact |
Materiality of the sector drawn up by the International Tourism Partnership (ITP) |
Social and CSR trends at global level and in Spain |
| Responsible Commitment Plan 2017-2019 Room4 | NHHG Report and materiality 2016 |
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| Benchmarking in CSR of eight leading national and international companies in the sector |
Sustainability Yearbook 2018 of RobecoSAM |
Subsequently, a semantic review of the matters has been carried out with the aim of linking similar concepts or areas and integrating them in the terms of NHHG and the sector’s business approach. The matters have been grouped according to the pillars of the Responsible Commitment Plan 2017-2019 Room4: Business, People and Planet.
PRIORIZATION
The prioritization of material issues has been determined according to two variables:
• Impact on the Business: importance of each matter in the Company’s business activity
• Impact on Stakeholders: importance of each matter among the different priority stakeholders
VALIDATION
The prioritization has been validated internally with the Corporate Responsibility Management Area by checking the relevance of the material issues and their importance in relation to the business objectives.
With this the Materiality Matrix for the CSR Report for 2017 has been drawn up according to the two relevant guidelines for the activity of NH Hotel Group and for its stakeholders.
GRI STANDARDS CONTENT INDEX
Este informe se ha elaborado de conformidad con los estándares GRI: opción Esencial.
GENERAL DISCLOSURES
| GRI Standard | DISCLOSURE | PAGES NUMBER(S) OR DIRECT RESPONSE | ||
| ORGANIZATIONAL PROFILE | ||||
| GRI 102: General Disclosures | 102-1 Name of the organization | Page 7 | ||
| 102-2 Activitates, brands, products and services | Pages 7-11; 32 | |||
| 102-3 Location of headquarters | Contraportada | |||
| 102-4 Location of operations | Pages 7-8 | |||
| 102-5 Ownership and legal form | Page 19 | |||
| 102-6 Markets served | Pages 7-11 | |||
| 102-7 Scale of organization | Pages 3; 11-14 | |||
| 102-8 Information on employees and other workers | Pages 46-47 | |||
| 102-9 Supply chain | Pages 41-44 | |||
| 102-10 Significant changes to the organization and its supply chain | Pages 8-17; 41-44 | |||
| 102-11 Precautionary Principle or approach | Pages 24-28 | |||
| 102-12 External initiatives | Pages 39-41 | |||
| 102-13 Membership of associations | Pages 39-40; 68-69; 78-80 | |||
| STRATEGY | ||||
| GRI 102: General Disclosures | 102-14 Statement from senior decision-maker | Page 5-6 | ||
| Ethics and integrity | ||||
| GRI 102: General Disclosures | 102-16 Values, principles, standards, and norms of behavior | Pages 20; 24-27 | ||
| 102-17 Mechanisms for advice and concerns about ethics | Pages 20; 24-27 | |||
| GOVERNANCE | ||||
| GRI 102: General Disclosures | 102-18 Governance structure | Pages 21-25; 27-28 | ||
| 102-19 Delegating authority | Pages 21; 24; 27 | |||
| 102-22 Composition of the highest governance body and its committees | Pages 21-24 | |||
| 102-23 Chair of the highest governance body | Pages 21-24 | |||
| 102-24 Nominating and selecting the highest governance body | Pages 22-23 | |||
| 102-25 Conflicts of interest | Pages 22-23 | |||
| STAKEHOLDER ENGAGEMENT | ||||
| GRI 102: General Disclosures | 102-40 List of stakeholder groups | Pages 37-39 | ||
| 102-41 Acuerdos de negociación colectiva | Page 58 | |||
| 102-42 Collective bargaining agreements | Page39 | |||
| 102-43 Approach to stakeholder engagement | Page 89 | |||
| 102-44 Key topics and concerns raised | Pages 90-91 | |||
| REPORTING PRACTICE | ||||
| 102-45 Entities included in the consolidated financial statements | Pages 3-4 | |||
| 102-46 Defining report content and topic Boundaries | Pages 89-91 | |||
| 102-47 List of material topics | Page 91 | |||
| 102-48 Restatements of information | There are no restatements of information regarding previous years | |||
| 102-49 Changes in reporting | No significant changes regarding previous year | |||
| 102-50 Reporting period | Page 4 --- | |||
| 102-51 Date of most recent report | Last report published refers to previous tax year, 2016 | |||
| 102-52 Reporting cycle | Page 91 | |||
| 102-53 Contact point for questions regarding the report | Contraportada | |||
| 102-54 Claims of reporting in accordance with the GRI Standards | Page 94 | |||
| 102-55 GRI content index | Pages 94-105 | |||
| 102-56 External assurance | Page 91 | |||
MATERIAL TOPICS
| GRI STANDAR | DISCLOSURE | PAGE NUMBERS OF DIRECT RESPONSE | ||
| MATERIAL TOPIC: ETHICAL COMMITMENT AND GOOD GOVERNANCE | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 19 | ||
| 103-2 The management approach and its components | Pages 19-28 | |||
| 103-3 Evaluation of the management approach | Pages 19-28 | |||
| NHHG’s indicators | Percentage of employees trained in criminal risk prevention | Page 26 | ||
| MATERIAL TOPIC: FIGHT AGAINST CORRUPTION | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Pages 20-21 | ||
| 103-2 The management approach and its components | Pages 20-21 | |||
| 103-3 Evaluation of the management approach | Pages 24-27 | |||
| GRI 205: ANTICORRUPCIÓN | ||||
| GRI 205: ANTI-CORRUPCION | 205-2 Communication and training about anti-corruption policies and proceduresn | Pages 20; 24-27 | ||
| MATERIAL TOPIC: RESPONSIBLE ALLIANCES AND DIALOGUE WITH STAKEHOLDERS | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Pages 20-21 | ||
| 103-2 The management approach and its components | Pages 38 | |||
| 103-3 Evaluation of the management approach | Page 39-40 | |||
| MATERIAL TOPIC: PROTECTION OF HUMAN RIGHTS | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 39-40 | ||
| 103-2 The management approach and its components | Pages 40; 57-58 | |||
| 103-3 Evaluation of the management approach | Pages 40; 57-58 | |||
| MATERIAL TOPIC: RESPONSIBLE VALUE CHAIN | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 84 | ||
| 103-2 The management approach and its components | Pages 84-87 | |||
| 103-3 Evaluation of the management approach | Pages 84-87 | |||
| GRI 204: PROCUREMENT PRACTICES 2016 | ||||
| GRI 204: Procurement Practices 2016 | 204-1 Proportion of spending on local suppliers | Page 84 | ||
| GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT 2016 | ||||
| GRI 208: Supplier Environmental Assessment 2016 | 308-1 New suppliers that were screened using environmental criteria | Page 86 | ||
| MATERIAL TOPIC: TALENT MANAGEMENT AND LEADERSHIP CULTURE | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Pages 41; 43 | ||
| 103-2 The management approach and its components | Pages 43-52 | |||
| 103-3 Evaluation of the management approach | Pages 43; 52 | |||
| GRI 401: EMPLOYMENT 2016 | ||||
| GRI 401: Employment 2016 | 401-1: New employee hires and employee turnover | Pages 42-43; 52 | ||
| GRI 404: TRAINING AND EDUCATION 2016 | ||||
| GRI 404: Training and Education 2016 | 404-1:Average hours of training per year per employee | Page 49 | ||
| 404-2: Programs for upgrading employee skills and transition assistance programs | Pages 43-52 | |||
| 404-3: Percentage of employees receiving regular performance and career development reviews | Pages 43-44 | |||
| MATERIAL TOPIC: DIVERSITY AND EQUALITY OF OPPORTUNITIES | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Pages 23; 46 | ||
| 103-2 The management approach and its components | Page 46 | |||
| 103-3 Evaluation of the management approach | Page 46 | |||
| GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 2016 | ||||
| GRI 404: Diversity and Equal Opportunity 2016/td> | 405-1 Diversity of governance bodies and employees | Pages 21-24; 42-43 | ||
| MATERIAL TOPIC: EMPLOYEE COMMITMENT AND INVOLVEMENT | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 44 | ||
| 103-2 The management approach and its components | Page 45-48 | |||
| 103-3 Evaluation of the management approach | Page 45-48 | |||
| NHHG’s indicators | Number of downloads of app MyNH in 2017 | Page 46 | ||
| Number of editions and hits of newsletter Tell The World in 2017 | Page 46 | |||
| Number of Town Halls organised in 2017 | Page 47 | |||
| MATERIAL TOPIC: CORPORATE VOLUNTEERING | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 66 | ||
| 103-2 The management approach and its components | Page 66-67 | |||
| 103-2 Evaluation of the management approach | Pages 66-67 | |||
| NHHG’s indicators | Number of Volunteers in 2017 | Page 66 | ||
| Number of volunteering initiatives in 2017 | Page 66 | |||
| MATERIAL TOPIC: CUSTOMER EXPERIENCE AND LOYALTY | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 54 | ||
| 103-2 The management approach and its components | Page 54-62 | |||
| 103-3 Evaluation of the management approach | Pages 54 | |||
| NHHG’s indicators | Allocation to Brilliant Basics in 2017 | Page 54 | ||
| Overall perception of quality in 2017 | Page 58-61 | |||
| Volume of business generated through the NH Hotel Group website in 2017 | Page 62 | |||
| MATERIAL TOPIC: SUSTAINABILITY AWARENESS-RAISING IN CUSTOMERS | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 77 | ||
| 103-2 The management approach and its components | Page 61; 77-79 | |||
| 103-3 Evaluation of the management approach | Pages 61; 77-79 | |||
| NHHG’s indicators | Customer satisfaction with sustainability in 2017 | Page 77 | ||
| MATERIAL TOPIC: OFFER AND INNOVATION IN RESPONSIBLE SERVICES | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 54 | ||
| 103-2 The management approach and its components | Pages 55-58; 71-77 | |||
| 103-3 Evaluation of the management approach | Pages 55-58; 71-77 | |||
| MATERIAL TOPIC: CONTRIBUTION TO THE COMMUNITY | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 54 | ||
| 103-2 The management approach and its components | Pages 55-58; 71-77 | |||
| 103-3 Evaluation of the management approach | Pages 55-58; 71-77 | |||
| GRI 413: LOCAL COMMUNITIES 2016 | ||||
| GRI 413: Local Communities 2016 | 413-1 Operations with local community engagement, impact assessments, and development programs | Pages 63-67 | ||
| MATERIAL TOPIC: SUPPORT TO ART AND CULTURE | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 63 | ||
| 103-2 The management approach and its components | Page 67 | |||
| 103-3 Evaluation of the management approach | Page 67 | |||
| NHHG’s indicators | Allocation to cultural promotion in 2017 | Page 67 | ||
| MATERIAL TOPIC: PROMOTING YOUNG EMPLOYMENT | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Pages 64-65; 83 | ||
| 103-2 The management approach and its components | Pages 64-65; 83 | |||
| 103-3 Evaluation of the management approach | Pages 64-65; 83 | |||
| NHHG’s indicators | Key figures of employment programs in 2017 | Pág 65 | ||
| MATERIAL TOPIC: ENERGY EFFICIENCY | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 68 | ||
| 103-2 The management approach and its components | Page 68-70; 72; 76; 80 | |||
| 103-3 Evaluation of the management approach | Pages 68-70; 72; 76; 80 | |||
| GRI 302: Energy 2016 | ||||
| GRI 302: Energy 2016 | 302-1 Energy consumption within the organization | Pages 69-70; 80 | ||
| 302-4 Reduction of energy consumption | Pages 69-70; 80 | |||
| MATERIAL TOPIC: EFFICIENT WATER MANAGEMENT | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 68 | ||
| 103-2 The management approach and its components | Pages 68-70; 80 | |||
| 103-3 Evaluation of the management approach | Pages 68-70; 80 | |||
| NHHG’s indicators | Water consumption ratio in 2017 and reduction of consumption compared to previous years | Pages 70; 80 | ||
| MATERIAL TOPIC: CARBON FOOTPRINT AND CLIMATE CHANGE | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 68 | ||
| 103-2 The management approach and its components | Pages 71-79; 81 | |||
| 103-3 Evaluation of the management approach | Pages 71-79; 81 | |||
| GRI 305: EMISSIONS 2016 | ||||
| GRI 305: Emissions 2016 | 305-1 Direct (Scope 1) GHG emissions | Pages 70-71; 81 | ||
| MATERIAL TOPIC: SUSTAINABLE HOTELS | ||||
| GRI 103: Management Approach 2016 | 103-1 Explanation of the material topic and its Boundary | Page 72 | ||
| 103-2 The management approach and its components | Pages 72-73; 75-79 | |||
| 103-3 Evaluation of the management approach | Pages 72-73; 75-79 | |||
| NHHG’s indicators | Number of certified hotels by 2017 | Pages 73 | ||
