- Capital expenditure
Cash expended on purchases of property, plant and equipment and purchases of intangible assets, associate investments and other financial assets.
- Carbon Footprinting
Greenhouse gas emissions have been identified as the major cause of climate change. To minimize the scale of climate change, emissions from human activities need to be measured, reduction opportunities identified, and actions taken. The first step, measurement, is crucial and is termed the carbon footprint.
Correct footprint assessments draw wide boundaries which include offsite emissions from organizations, and "cradle to grave" emissions for products.
The carbon footprint is the first step. Footprint outputs provide a baseline measurement and show current impacts. Further studies can be completed to run comparative scenarios to measure potential savings, and to develop carbon management plans to reduce greenhouse gas emissions.
- Carbon Off-Setting
A carbon offset is a financial instrument aimed at a reduction in greenhouse gas emissions. Carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e). One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.
There are two markets for carbon offsets. In the larger, compliance market, companies, governments, or other entities buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit.
In the much smaller, voluntary market, individuals, companies, or governments purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources. For example, an individual might purchase carbon offsets to compensate for the greenhouse gas emissions caused by personal air travel. Many companies offer carbon offsets as an up-sell during the sales process so that customers can mitigate the emissions related with their product or service purchase, such as offsetting emissions related to a vacation flight, car rental, hotel stay or a consumer good, etc. Offsets are typically achieved through financial support of projects that reduce the emission of greenhouse gases in the short- or long-term. The most common project type is renewable energy, such as wind farms, biomass energy, or hydroelectric dams. Others include forestry projects like Marriott’s Amazon tree planting. These projects often fall prey to criticism because they do not actually assist in making products like vacations, cars or hotel stays more carbon efficient. This is why IHG has focused on innovation, rather than off-setting, in its CR strategy.
- Cash-generating unit
A portfolio of similar assets that are subject to the same economic and commercial influences.
- Climage change
Climate change is the public debate on whether man, largely through energy generation and use, is increasing Green House Gas (GHG) levels that are in turn raising the temperature of the planet. Science is in agreement that climate change is indeed impacted by mankind, but the public debate on mankind’s role does not reflect the scientific consensus. The climate change debate is in fact the most widely recognized public policy issue in the world today.
According to the science, the largest single contributor to climate change is carbon dioxide. Carbon Dioxide may be measured in grams, kilograms or tons. There are many actions which hotels can take in order to reduce current levels of Green House Gas (GHG) emissions and redesign our business to function more sustainably. The travel and tourism industry has traditionally sought to address Climate Change through carbon offsetting activities. At IHG, we are taking a different tack, one which focuses on innovation to reduce our carbon footprint, our costs and any future regulatory burden.
- Comparable RevPAR
A comparison for a grouping of hotels that have traded in all months in both financial years being compared. Principally excludes new hotels, hotels closed for major refurbishment and hotels sold in either of the two years.
- Contingent liability
A liability that is contingent upon the occurrence of one or more uncertain future events.
- Continuing operations
Operations not classified as discontinued and including acquisitions made during the year.
- Corporate Responsibility
At IHG we define Corporate Responsibility strategically – it is how IHG manages its business for both the good of society and our shareholders. It is about creating a competitive advantage while still doing the right thing. It is about how we make our money – not simply how we give it away. Done correctly, CR ought to drive and support corporate efforts to better manage costs, as well as identify new ways to create value. Corporate Responsibility is how companies respond to issues like climate change and sustainable development.
The term "corporate responsibility" is often used interchangeably with corporate social responsibility, corporate citizenship, social enterprise, sustainability, sustainable development, triple-bottom line, corporate ethics, and in some cases corporate governance.
Corporate Responsibility is interdisciplinary and it goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts, as well as their relationships in all key spheres of influence: the workplace, the marketplace, the supply chain, the community, and the public policy realm.
- Currency swap
An exchange of a deposit and a borrowing, each denominated in a different currency, for an agreed period of time.
- LEED (Leadership in Energy and Environmental Design)
LEED is a US green building certification system, providing third-party verification that a building was designed and built using strategies aimed at improving performance across key environmental design, construction and operations metrics. LEED was developed by the U.S. Green Building Council (USGBC) to provide commercial building owners and operators a framework for identifying and implementing practical and measurable green solutions. Although there are in excess of 150 green building standards globally - and more emerging every day - LEED appears to be the most likely to emerge preeminent.
- Local Economic Opportunity
Local Economic Opportunity (LEO) is a program for collaborative action among companies and other actors to expand economic opportunity in the communities in ways that generate greater incomes, options, and future opportunities. Leverage the positive economic impacts of our Hotels, such as creating jobs, providing training, cultivating inter-firm linkages, supporting local enterprise development, enabling technology transfer, improving productivity, building human capital and physical infrastructure, and making a variety of products and services available to consumers and other businesses.
Each of these impacts, in turn, triggers multiplier effects in society more broadly. Many of our hotels also play key leadership roles conducive to economic growth – by sowing the seeds of entrepreneurship and innovation, for instance, or by engaging in progressive public policy dialogue.
Whatever term one uses to describe corporate responsibility and its related trends, they all point in the same direction: throughout the industrialized world and in many developing countries there has been a sharp escalation in the roles corporations are expected to play. Companies are facing new demands to be accountable not only to shareholders, but also to stakeholders such as employees, consumers, suppliers, local communities, policymakers, and society-at-large. Stakeholders are often discussed in terms of:
- Direct stakeholders- Consumers, employees, owners, shareholders, and regulators
- Indirect stakeholders - NGOs, Media
- Sustainable Development (Sustainability)
Since the 1980s, human sustainability has defined as the careful management of economic, social and environmental impacts to: “meet the needs of the present without compromising the ability of future generations to meet their own needs.”
In a broad sense, sustainability can be defined as the capacity to endure. It is about the potential for long-term improvements in wellbeing, which in turn depend on the wellbeing of the natural world and the responsible use of natural resources.
Sustainability has recently become a wide-ranging term that can be applied to almost every facet of life on Earth, from a local to a global scale and over various time periods. As the earth’s human population has increased, natural ecosystems have declined and changes in the balance of natural cycles have had a negative impact on both humans and other living systems.
Efforts to live more sustainably can take many forms, from reorganizing living conditions (e.g., eco-municipalities and sustainable cities), reappraising economic sectors (green building, sustainable agriculture) or work practices (sustainable architecture), using science to develop new technologies (green technologies, renewable energy), to adjustments in individual lifestyles.
- Subsidiary undertaking
A company in which the Group holds an equity stake and over which it exercises control.
- System size
The number of hotels/rooms owned, leased, managed or franchised by IHG.