Corporate responsibility

The role of business in reducing its negative impacts and finding ways to have far greater positive impacts has never been more important.

Future strategy

Whilst we have long believed that corporate responsibility is about integrity, a core Whitbread value, and that behaving responsibly also makes sound business sense, we decided in 2008 that it was time to reinvigorate our approach. To that end we worked with PricewaterhouseCoopers to develop a new corporate responsibility strategy. This new strategy was approved by the Board in March 2009 and we will be working hard to implement it in the year ahead.

Vision and ambition

We have an opportunity to create a virtuous circle between 'doing the right thing' and generating long-term value for our shareholders.

At Whitbread, we believe that heightened attention and expectations of business offer an opportunity to create a virtuous circle between 'doing the right thing' and generating long-term value for our shareholders. By harnessing the power of our brands, the energy of our team members and the engagement of our guests, we can create meaningful change.

Our goals

We have set a number of goals in each of the following areas:

• Environmental and property management;
• People, culture and values;
• Responsible sourcing and supply chain;
• Governance, international and brand standards; and
• Health and well-being.

These goals are split between those that we intend to achieve within two years and those that we intend to achieve within five years.

Measurement and reporting

A Corporate Responsibility Steering Group, chaired by Alan Parker, has been established to be responsible for the execution of this strategy. Progress against the goals must be measurable and new targets will be added to the WINcard to ensure that corporate responsibility is truly embedded in our business.

Performance and activities in 2008/09

Whilst we have developed a new strategy, there was still much activity in the corporate responsibility field in 2008/09. In this report we report on some of the highlights.

Environment

We believe that businesses have a responsibility to actively manage and minimise the impact they have on the environment. Our approach is guided by our energy, environment and sustainable development policies, which govern the way we do business.

The Group's main environmental impacts come from the use of energy and water in our buildings and from waste associated with the preparation of food and drink in our outlets. Our efforts are concentrated on:

• Measuring, monitoring and reducing our energy and water consumption;
• Reducing the volume of waste going to landfill; and
• Trialling new technologies and implementing those that are beneficial.

Some of the main initiatives employed during the last financial year were:

• Our 'green hotel' at Tamworth;
• Greywater technology, which uses
• recycled water to flush hotel toilets;
• Management of our climate change impacts to measure and plan the reduction of the Group's greenhouse gas emissions;
• Renewable energy to reduce our use of fossil-fuel generated electricity;
• Low energy lighting installation; and
• Increased recycling to divert waste from landfill.

We produce a detailed Environment Report, which can be found on the corporate responsibility section of our website at www.whitbread.co.uk.

Consumer issues

Our focus areas continue to include food safety, healthier lifestyles, responsible drinking, listening to customer needs and developing mutually beneficial relationships with suppliers. More details and our policies will be available in the Corporate Responsibility Report to be published on our website later in the year.

Health and safety

We recognise the significance of effectively managing health and safety and ensuring the risks associated with operating our business are adequately controlled. We are committed to providing a safe, secure and healthy environment for both guests and employees. This commitment can be evidenced in the following areas:

• Health and safety is a key measure on the WINcard;
• All outlets receive a detailed independent health and safety and food safety audit;
• The Board monitors health and safety performance on a quarterly basis;
• Health and safety policies and procedures and a risk management system are in place to effectively control and mitigate existing and emerging risks;
• Health and safety workshops are available for management level employees and all outlets have access to health and safety training courses; and
• All outlets have suitable and sufficient fire risk assessments undertaken and regularly reviewed.