communication on progress new

7/28/2019 Communication on Progress New

1/37

B E Y O N D T H E N U M B E R S

C O M M U N I C A T I O N O N P R O G R E S S

2 0 1 1 - 2 0 1 2

I N D I A N H O T E L S C O M P A N Y L I M I T E D

%

$$$

$

2

1 954

8

%

%

%

% $

8 %

3%% $1

$

1


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24

H I G H L I G H T S

REDUCTION IN TOTAL

ENERGY CONSUMPTION,

PER ROOM NIGHT

2.3% 120%INCREASE IN

RENEWABLE ENERGY.

10%DECREASE IN TOTAL

CO EMISSIONS,2

PER ROOM NIGHT

3%DECREASE IN

WATER CONSUMPTION,

PER ROOM NIGHT

CO2

54HOTELS SILVER CERTIFIED

BY EARTHCHECK

2385UNDER-PRIVILEGED

YO UTH TRAINED FOR

EMPLOYABILITY


3/37

1

from the md's desk

ungc

summary of gri

company profile

corporate governance

people management

environment management

community development

content index

index

T A B L E O F C O N T E N T S

2

4

6

7

10

16

24

25


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2

f r o m t h e m d s d e s k

DearReaders,

TheIndianHotelsCompany hasbeen proudly associated with theUnitedNations GlobalCompact

from the year 2001. Since then, we have embraced, supported and enacted, within our sphere

of influence, the UNGC principles on human rights, labour standards, the environment and

anti-corruption.

The Euro zone debt crisis continued in 2011-12 dampening the global economic recovery, high

inflationanddepreciation of theIndianRupee. This also translated in to a moderate growthin the

tourism industry. The international tourists arrival grew by 4.4 percent worldwide, while in India

the foreign tourists arrival and domestic traffic increased by about 9 percent over last year.

Amidst this, we continued to pursue the completion of ongoing builds, both in the domestic

and international market, under various brands to achieve sustainable and profitable growth.

In2011-12, ourinventory stoodat112hotelswith 13,629rooms.

The Tata Code of Conduct continues to articulate the values, ethics and business principles that

should be adhered to by our employees, as part of our philosophy on Corporate Governance.

We have extended the purview of our governance mechanisms to encompass guest and associate

satisfaction, interactions with vendors and suppliers, business relations with JVs and partners,

commitmentto quality andbrand standards, accountability,transparencyandbusinessethics.

Continuing from the previous years, we have focussed on internal redeployment of human

resources as an effective way of optimising our operations. This year, we also implemented several

other projects aimed at buildinga high performance work culture. Through project 'Vidya',we aimto achieve 100% computer literacy acrossIHCL, while through 'MiUniversity' anonlinelearning

This report gives a brief overview of our communication on progress on the ten

UNGC principles and our performance on sustainability indicators defined in

the Global Reporting Initiative's G3.1 guidelines on sustainability reporting.

This sustainability update has been effectively divided in to four main sections

in the report across aspects of corporate governance, people management,

environment management and community development. In each section,

we have attempted to give a balanced view of how we have performed.


5/37

3

management system, we aim to provide impetus in skill and knowledge development among all

levels of employees. In 2011-12, we introduced flexible compensation architecture on Cost toCompany principles allowing our executives to enhance value of their existing remuneration.

We also continued our efforts towards building leadership capability across all levels through

dedicated programmes. Safety and security of associates and guests have been an integral

component of our business and we have defined systems and processes to ensure awareness and

trainingalongwithregular safety andsecurityperformance reviews.

We are conscious of our environmental impact across our operations and strive to reduce

consumption. We continue to certify our hotels under EarthCheck, which is an extensive

assessment and audit of individual hotels by independent assessors across indicators ranging from

energy use, water consumption, waste management to sensitivity exhibited vis-a-vis social and

culturaldimensions. We are also focussingon reducingour dependency onfossilfuels by increasing

the use of renewable and alternative energy sources. Our hotels are also working towards effective

water management. We have achieved a zero discharge status for 33 hotels, while 17 hotels have

active rain water harvesting systems. We have deployed innovative waste management systems

across hotels to optimise resource usage. In some of the hotels, we have installed a bio-gas plant

to effectively dispose kitchen andhorticulture waste.We are consciousof bio-diversity preservation

in eco-sensitive areas where ourhotels operate.

Building sustainable livelihoods continues to be the foundation of our social responsibility

agenda. Most of our projects are designed to extend our core competencies of food and beverage

service, hospitality, wellness and spas. We work alongside the national and state systems towardsevolving realistic and sustainable solutions for national challenges like malnutrition,

unemployment and gaps in vocational training and education. Our association with the rich

heritage of India enables us to provide a platform to showcase indigenous art and culture to the

world, while encouragingand benefitting the craftsmen who create it. Weencourage our associates,

vendors and partners to volunteer their time, knowledge and resources for identified causes and

social projects for not just reaching out to the beneficiaries, but also to enrich their personal lives.

We have renewed our commitment to promote the spirit of volunteering through our campaign

'Give Back' and are keen to open up opportunities for volunteering to our guests as well in years to

come. The Taj Public Service Welfare Trust continues to receive support from well-wishers in

India and abroad. The Trust provides support to victims affected by natural and man-made

disasters. Tilldate, theTrusthas reachedoutto over a thousandfamiliesacrossthe country.

I appreciate and acknowledge the support extended by our stakeholders to ensure success of our

initiatives and projects. Our constant endeavour has been to be ahead of the curve and to be the

leader in our field. Your constructive feedback will help us in improving our performance and

leading by example.

ManagingDirectorRAYMOND BICKSON


6/37

4

I N D I AN H OT E L S C O MP AN Y L I M IT E D and its

subsidiaries are collectively known as Taj Hotels Resorts

and Palaces. We are globally recognized as one of the

finest hospitality companies with 112 hotels in 55

locations across India and 16 international hotels in the

Maldives, Malaysia, Australia, UK, USA, Bhutan,

SriLanka,AfricaandtheMiddleEast.

Spanning across the country, gracing important industrial towns and cities, beaches,

hill stations, historical and pilgrim centres and wildlife destinations, we operate in the

luxury, premium, mid-market and value segments of the market. Each Taj hotel offers

luxury and superior service, the apogee of Indian hospitality, vantage locations, modern

amenities and business facilities. IHCL operates in the luxury, upper upscale, upscale and

value segments of the market through the following:

T A J E X O T I C A (luxury leisure resortandspas)isfound

in the most exotic and relaxing locales of the world.

The properties are defined by theprivacy andintimacy

they provide. The hotels are clearly differentiated

by their product philosophy and service design.

They are centered around high-end accommodation,

intimacy and an environment that allows its guest

unrivalled comfort and privacy. They are defined by

a sensibility of intimate design and by their varied

and eclectic culinary experiences, impeccable service

andauthentic Indian spasanctuaries.

L U X U R Y (luxury full-service hotels, resorts and

palaces) is our flagship brand for the world's most

discerning travellers seeking authentic experiences

given that luxury is a way of life to which they are

accustomed. Spanning world-renowned landmarks,

modern business hotels, idyllic beach resorts,

authentic Rajput palaces and rustic safari lodges, each

Taj hotel reinterprets the tradition of hospitality in a

refreshingly modern way to create unique experiences

and lifelong memories. The Taj Group is defined by

the emotional and unique equity of its iconic

properties that are authentic, non-replicable with

great potential to create memories and stories.

Taj Khazana is a chain of luxury lifestyle stores with

six boutiques located in luxury properties across

India. These boutiques sell merchandise created by

indigenous artisans, be it textiles or art forms inpaper,metal,wood,marbleoriron.

c o m p a n y p r o f i l e


7/37

5

Taj Hotels also promise a whole new experience

in tranquility and total 'wellness', through

a unique concept, which brings together

the wisdom and heritage of the Asian and Indian

philosophy of wellness and well-being. Rooted in

ancient Indian healing knowledge, Jiva Spas derive

inspiration and spirit from the holistic conceptofliving.

J I V A S P A S

T A J S A F A RI S (wildlife resorts) allow travellers to

experience the unparalleled beauty of the Indian

jungle amidst luxurious surroundings. They offer

India's first and only wildlife luxury lodge circuit.

Taj Safaris provide guests with the ultimate,

interpretive, wildlife experience based on a proven

sustainable eco-tourismmodel.

IHCL also operates Air Catering Ltd.,

the largest airline catering service in South Asia,

as a joint venture with Singapore Airport Terminal

Services, a subsidiary of Singapore Airlines. The

company provides in-flight catering in Mumbai,

Delhi, Chennai, Kolkata, Amritsar, Goa and

Bangalore and manages Airport Lounges in MumbaiandChennai.

T A J S A TS

G I N G E R (smart basics ) is a revolutionary concept inhospitality, created for the value segment. Intelligently

designed facilities, consistency and affordability are

hallmarks of this brand targeted at travellers who value

simplicity and self-service. These hotels have created a

newcategoryin thedomestichospitality landscape.

TM

V I V A N TA B Y TA J (upper upscale hotels) offers

options for the work-hard-play-hard traveller across

metropolitan cities, other commercially important

centres and some of the best-loved vacation spots.

Stylish and sophisticated, Vivanta by Taj delivers

premium hotel experiences with imagination, energy

and efficiency. It's the flavour of contemporary

luxury, laced with cool informality and charming

Taj hospitality. Created for the cosmopolitan global

traveller and bon vivant, Vivanta by Taj - Hotels and

Resorts create experiences that will amuse, invigorate

andinspireguests.

T H E G AT E W AY H O T EL (upscale/mid-market full

service hotels and resorts) is a pan-India network of

hotels and resorts that offers business and leisuretravellers a hotel designed keeping themodern nomad

in mind. At The Gateway Hotel, we believe in keeping

things simple. This is why our hotels are divided

into seven simple zones - stay, hangout, meet, work,

workout,unwindand explore.


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6

We have been practicing the highest standards of corporate governance even before Securities Exchange Board of

India (SEBI) made it a mandatory requirement from 2001. Out of over 5,000 companies listed with the Bombay

Stock Exchange,IHCL is categorized as an A GroupCompany which comprisesonly 200 companiesandthecriteria

for selection is based on market capitalization, liquidity, industry representation, listed history and track record of

compliance. We also comply with the provisions of Clause 49 of the listing agreement of the Stock Exchange.

Our Board of Directors comprises Executive, Non-Executive as well as Independent Directors. Independent

Directors comprise more than half of the Board with experience in domains such as banking, finance and hospitality

to social service and architecture. Being a TATA Group company, we go beyond the mandatory requirements ofCorporate Governance and conduct business in a fair and transparent manner, as per the conditions of the

comprehensive Tata Code of Conduct* (TCoC). IHCL maintains good investor relationships and endeavours to

deliver consistent quality services.

c o r p o r a t e g o v e r n a n c e

We have four committees that overlook the entire functioning of the company and provide direction and guidance.

These committees are: Audit committee, Share Transfer & Shareholders'/Investor Grievance committee,

Remuneration committee and Safety, Health and Environment (SHE) committee. Our Corporate Governance

Philosophy derives from the values of Integrity, Excellence and Responsibility. It emphasises wealth creation for

society, protection and interest enhancement for all stakeholders, without compromising the environment and

health of society at large. Today, we have extended our footprint to five continents across the globe and share global

best practices. We have adopted the Tata Business Excellence Model which pushes the boundaries of excellence,

enablinginnovative ideasand promotingindigenous methods to improve business.

Mr R N Tata (Chairman)

Mr R K Krishnakumar (Vice Chairman)

Mr. K. B. Dadiseth

Mr. Deepak Parekh

Mr. Jagdish Capoor

Mr. Shapoor Mistry

Mr. Nadir Godrej

Ms. Anu Aga*

Mr. Raymond N. Bickson

Mr. Anil P. Goel

Mr. Abhijit Mukerji

Mr. Mehernosh S. Kapadia**

NAME OF DIRECTOR

Promoter; Non-Executive

Promoter; Non-Executive

Independent; Non-Executive






Executive

Executive

Executive

Executive

*resigned w.e.f. 6 June, 2012**w.e.f. 10 August, 2011

T H E C O M P O S I T I O N O F T H E B O A R D O F D I R E C T O R S I S A S F O L L O W S :

STATUS

*The Tata Code of Conduct can be found here: http://www.tata.com/aboutus/articles/inside.aspx?artid=NyGNnLHkaAc=


9/37

7

p e o p l e m a n a g e m e n t

In the hospitality industry, where quality of interaction with guests determines our success, it is no exaggeration

to state that our employees are our backbone and the key to our sustained growth. We take concerted efforts to

ensure employee well-being and have adopted the TCoC to ensure fair, honest, open and transparent dealings with

allouremployees.

A G E A N D G E N D E R - W I S E B R E A K U P O F O U R E M P L O Y E E S :

GROUP< 29 30 - 49

DIRECTOR

EXECUTIVE

TAS, STAFF & SUPERVISOR

FTC

APPRENTICE & TRAINEE

UNCLASSIFIED, CONSULTANT & EXPAT

TOTAL

In the hospitality industry, which experiences one of the highest attrition rates among

all sectors, this is an indication of our commitment to employee welfare and growth.

> 50

0

698

1,359

3,191

431

2

5,681

0

307

239

669

95

1

1,311

1

1,597

3,134

738

0

16

5,486

0

352

134

76

0

4

566

4

396

890

37

0

26

1,353

0

56

23

13

0

7

99

158associates of our workforce have been with us for over 35 years, of which4% have grown from entry level to top management in their career span.

Additionally, between TajSATS and Ginger,we have 1,954 employees.


10/37

8

Volunteering has long been part of the culture of

the Taj Group. Each hotel carries out a plethora

of social responsibility initiatives ranging from

livelihood projects to programmes supporting

local enterprise and art and craft promotions to

environmentconservationactivities.

An example of one such initiativewas the participation

of a 75-member Taj team who ran the Mumbai

Marathon in January, 2012. Led by the Managing

Director, Mr. Raymond Bickson, the team at Tajcame together to support DEEDS (Development,

Education, Empowerment of the Disadvantaged in

Society) an NGO which works with the hearing and

speech-impaired.

campaign was launched as a

part of the marathon felicitation ceremony by

Mr. Bickson. Give Back is an employee volunteering

programme aimed at engaging staff members and

their families working in the Taj corporate offices andMumbai hotels. Through this program, volunteers

The ' G IV E B A CK '

D I S C O V E R I N G T H E J O Y O F G I V I N G B A C K

LU XU RY I NDI A V IVA NTA H OT EL S

GATEWAY CORPORATE

6,172

5,576

2,094

665

B R A N D - W I S E B R E A K U P O F E M P L O Y E E S 2 0 1 1 - 2 0 1 2

In the reporting year, out of 5,529 new associates, the

attritionwas 26.6%.Overall, in 2011-12, theattrition

rate was 34.23% (3,918 male and 1,045 female

associates). In order to enhance the skill-sets of

our associates, we provide a number of training

programmes across diverse areas. We spent 1,255,417

man-hourson employee training in theyear,of which102,812 man-hours were on training on EHS

performance management and improvement and

27,105 man-hours were on training on the TCoC

andadherencetothesame.

can spend a minimum of five hours a month in

supporting a social initiative of their preference.

Currently, there are90 employeeswhohaveregistered

to support causes of their choice from nine causes

outlinedunder thisprogramme.


11/37

9

S A F E G U A R D I N G O U R M O S T I M P O R T A N T A S S E T: P E O P L E

Safety for associates and guests is an integral

component of our culture at the workplace.

We have defined systems and processes to

ensure awareness, training and we regularly

review our performance. Safety training is

conducted for all hotels, using qualified

consultants. This year, we have engagedTata Consulting Engineers to audit our safety

systemsandprocesses,soastoensurethehighest

level of focus is constantly maintained with

regards to safety. Our safety performance is

givenalongside:

S A F E T Y

NEAR MISS CASES (NMC)

FIRST AID CASES (FAC)

MEDICAL TREATMENT CASES (MTC)

RESTRICTED WORK CASES (RWC)

LOST TIME CASES (LTC)

LOST DAYS

FATALITIES

MILLION MAN-HOURS WORKED

1,218

10,573

2,753

109

613

4,946

2

62.11

The Taj Falaknuma Palace, Hyderabad, conducted a self defence class for its female

associates in order to equip them with basic skills in self-security. Also, its security team hasplaced a box in each department, which gives the associates information on how to react

during an evacuation procedure, in case of any emergency. The box also tells them about

their departmental responsibilities and gives them directions to the assembly area.

TheTajMahalHotel,NewDelhi, organised'Safety Week', foritsassociates toheightentheirawareness about thesafety

procedures that the hotel has in place. During this week, a number of activities were organised in the hotel, in

co-ordination with the security department of the hotel and other departments. Similar safety initiatives have been

carriedoutateverypropertyofourgroupofhotelstoensuresafetyofourguestsandassociates.

SAFETYFIRST


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10

Caring for and protecting the environment is an

essential part ofourcorporate ethos.

We have been publishing our Sustainability Reports

based on GRI Guidelines for the past 8 years. We also

continue to voluntarily participate in the globally

recognized Carbon Disclosure Project(CDP).

We have also joined the internationally recognized

EarthCheckbenchmarking and certification system as

an extensionof ourexistingenvironmentalinitiatives.

e n v i r o n m e n t m a n a g e m e n t

We recognize that as a leader we have a responsibilityto

demonstrate our commitment towards managing our

carbon footprint. The monitoring and improvement

report detailed by EarthCheck for each of the hotels

audited year on year enables us to work on areas of

improvement. All our Luxury, Vivanta and Gateway

hotels have been included in the EarthCheck

certificationprocess.

Across the world, our hotels participate in the

Earth Hour initiative. By observing the Earth Hour,

we enhance the image of our company as an

environmentally friendly organization and increase

awarenessamongstourassociatesandguests.

Oneof thewonderfulexperiencesof walking along the

beach by

is that you get the unique opportunity to

spot Olive Ridley sea turtles nesting their eggs by the

sea.EveryyearfromDecembertoMarch,thousandsofthese sea turtles make their way to the sands of the Bay

of Bengal to lay their eggs. Unfortunately, due to lack

of a protected environment, the eggs get savaged.

As a result, the survival rate of the sea turtle hatchlings

is only 0.2 percent. Looking at this dismal survival

rate, the associates of Vivanta by Taj Fisherman's

Cove, Chennai started a unique initiative as part of

their environment conservation and awareness

program. To enhance the survival rate of these

endangered species, theassociates protect theeggs andhatchlings, and release them safely into the sea with

the help of the guests, who are only happy to help.

V I VANTA BY TAJ F I SH E R MAN ' S COV E ,

CH E NNAI

D O I N G O U R B I T T O S A V E T H E S E A T U R T L E

In thelast cycle, theassociates releasedclose toa 1,000

hatchlings into the sea. Till date, the hotel associates,

along with the hotel guests have released 15,000 baby

seaturtlesintothesea.

54H O T E L S H A V E A C H I E V E D S I L V E R

C E R T I F I C A T I O N A N D T H E R E S T

A R E B R O N Z E C E R T I F I E D.

We have implemented the EARTH

programme - Environment Awareness and

Renewal at Taj Hotels, a project which is

focussed on energy conservation andother sustainability initiatives.


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11

E N E R G Y A N D E M I S S I O N S M A N A G E M E N T

We are conscious of the environmental impact of

our operations and strive to reduce consumption.

We regularly measure and record our direct and

indirect energy usage and related emissions of green

house gases. This year, our total energy consumption

i.e. direct and indirect energy use was 1,097,008 and

1,247,019GJ respectively.

Our renewable energy consumption for

2011-12 was 174,567 GJ, thus helping

reduce carbon emissions.

D I R E C T E N E R G Y C O N S U M P T I O N 2 0 1 1 - 2 0 1 2 ( G J )

6,056

366,477

2,570

444,911

34,294

184,706

32,525

R E N E W A B L E E N E R G Y C O N S U M E D

2008-09

GJ

20000

0

40000

60000

80000

100000

120000

140000

160000

180000

2009-10 2010-11 2011-12

42,89954,909

79,424

174,567

25,470

HIGH SPEEDDIESEL

FUEL OILLIGHT DIESELOI L

LIQUEFIEDPETROLEUM

GA S

PIPEDNATURAL

GA S

CHARCOAL CHAFFFUEL

PETROL


14/37

2009-10 2010-11 2011-12

tCO

/ROOM

NIGHT

2

0.0000

0.0200

0.0400

0.0600

0.0800

0.1000

0.1200

0.1088 0.0800 0.0711

2009-10 2010-11 2011-12

0.0300

0.0000

0.0050

0.0150

0.0200

0.0250

tCO

/ROOM

NIGHT

2

0.0222 0.02120.0100

0.0255

12

A I R E M I S S I O N S I N 2 0 1 1 - 2 0 1 2

ENERGY CONSUMED PER ROOM NIGHT FOR LUXURY, SAFARI, VIVANTA, GATEWAY AND GINGER HOTELS

DIR E C T E N E R GY C ON SUM E D PE R R OOM N IGH T

2009-10 2010-11 2011-12

GJ/ROOM

NIGHT

0.00

0.10

0.30

0.40

0.50

IN DIR E C T E N E R GY C ON SUM E D PE R R OOM N IGH T

2009-10 2010-11 2011-12

GJ/ROOM

NIGHT

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.4977 0.3827

GREENHOUSE GAS EMISSIONS PER ROOM NIGHT FOR LUXURY, SAFARI, VIVANTA, GATEWAY AND GINGER HOTELS

D I R E CT G R E EN H O U SE E M I SS I O N S P E R R O O M N I G HT I N D I RE C T G R E EN H O U SE E M I SS I O N S P E R R O O M N I G HT

0.20

0.3862 0.3326 0.31620.3826

TONS

S P M S O x N O x

79.40

97.74

53.39

120.00

100.00

80.00

60.00

40.00

20.00

0.00


15/37

13

WE HAVE UNDERTAKEN A NUMBER OF ENERGY OPT IMIZ AT ION

AND EF F IC IE NC Y MEA SUR ES L IK E :

H A R N E S S I N G E N E R G Y F R O M T H E S U N

We have focussed our efforts towards increasing the

proportion of renewable energy component in our

energy use. In 2011-12, 7.45% of our total energy

consumption was from renewable sources, a 120%

increase over previous year. Some of our hotels have

tie-ups with wind and hydro energy providers andmany generate their own solar energy. Solar energy is

usedinmanyofourhotels,namely:

NEW DELHI:

MUMBAI:

BANGALORE:

JO DH PU R:

HYDERABAD:

COCHIN:

CHENNAI:

AH ME DAB AD, NA SI K AN D SU RAT:

TAJ MAHAL, TAJ PALACE AND

VIVAN TA BY TAJ, AM BA SSA DOR

WE LL IN GTO N ME WS

TAJ WEST END

VIVAN TA BY TAJ, HA RI MAH AL

VIVAN TA BY TAJ, BEG UMP ET

VIVAN TA BY TAJ, MAL AB ARVI VAN TA BY TAJ, FI SH ERMAN S COV E

THE GATEWAY HOTELS

ALL THESE INITIAT IVES HAVE LED TO

ENERGY SAVINGS OF 300,946 GJ.

Increasing capacitor banks to maintain

power factor.

The utilization of building management

systems (BMS) for automatic control of air-

conditioning units in public areas.

Heating swimming pool water with the

help of return steam from the laundry.

Replacing old light fittings with energy

efficient ones.

Replacing halogen lamps with LED lamps.

Installing occupancy sensors.

Installing humidity sensors in the laundry

drier, thereby saving drying time.

Replacing older pumps with newer, energy

efficient ones.


16/37

14

W A S T E W A T E R D I S C H A R G E D B Y D E S T I N A T I O N ( K L ) 2 0 1 1 - 2 0 1 2

MUNICIPALITY SEWERS2,447,957

RIVER/LAKE88,720

SE A163,388

LAND34,361

MUNICIPALITY SUPPLY3,200,097

BOREWELLS/GROUND WATER

2,294,252

TANKERS1,116,023

RIVER/LAKE WATER1,824

HARVESTED RAINWATER13,246

W A T E R W I T H D R A W A L B Y S O U R C E I N 2 0 1 1 - 1 2 ( K L )

DESALINATED WATER97,202

We work on effective water management through

re-use,recyclingandrainwaterharvesting.

This year, we created 43,002 KL of

rainwater harvesting potential across our

hotel locations.

W AT E R M A N A G E M E N T

WATER WITHDRAWAL IN OUR HOTELS

2011-12

2.00

2010-11

2.07

2009-10

2.65

KL/ROOM

NIGHT

0.00

0.50

1.00

1.50

2.00

2.50

3.00


17/37

15

E V E R Y D R O P C O U N T S

The Gateway Hotel, Khajuraho has been active in

rainwater harvesting as a part of its corporate

responsibility towards environment protection.

The project was initiated in 2008. Today, there are

18 rainwater harvesting pits spread across the hotel

property. The project has helped increase the

ground water level and this water is being used for

cultivating vegetables, as well as for horticulture.

Before this project, municipal water was being used

for these purposes, thanks to rainwater harvesting,

ground water is now utilized for the same.

Additionally, the project has resulted in approximate

savingsofINR0.24millionannually.

M A T E R I A L S A N D W A S T E M A N A G E M E N T

W A S T E M A N A G E M E N T F O R A B E T T E R W O R L D

Vivanta by Taj, Kovalam, Trivandrum, successfully

started producing bio-gas in September 2009.All bio-degradable waste like food waste, dry leaves,

grass cuttings, animal waste, paper, etc is processed to

produce bio-gas (which typically contains methane,

carbon dioxide and smaller quantities of other gases),

used for cooking purposes. The bio-gas plant can

process 500 kilograms of organic wastes andproduces

40 cubic meter of gas per day (this is equivalent to a

commercial LPG cylinder costing about INR 950 per

day). The digested waste which is pushed out fromthis

bio-gas plant is around 40 kgs per day which is used asmanure in our own garden. The manure produced is

ofhighqualityandodourless.

We have taken steps to use eco-friendly materials, wherever

possible. We use leaf plates and earthenware in order to minimize

consumption of plastic and thermocol in many of our hotels. We also

ensure that our waste is managed in an environment-friendly

manner and all hazardous waste is disposed of to vendors registeredwith the respective State Pollution Control Boards. This year, 19 of our

hotels undertook composting of food and horticultural waste, while

2 hotels have installed bio-gas plants. 11.2% of our organic waste

was composted this year.


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c o m m u n i t y d e v e l o p m e n t

We cherish the symbiotic relationship that we share with our target communities.

Our CSR theme of has emerged out of the

confluence of United Nation's Millennium Development Goals, Prime Minister of India's

Social Charter and our business core competencies.

We define our target communities based on societal challenges that we can contribute to, by

extending business core competencies. Our target communities include:

Less-privileged youth and women.

Women self-help groups/income generation projects of NGOs.

Indigenous artisans, culture groups/NGOs and networks promoting revival of traditional

art and culture.

Organizations/networks working for training and development of the differently-abled.

B U I L D I N G S U S T A I N A B L E L I V E L I H O O D S

O U R K E Y P R O G R A M M E S A N D I N I T I A T I V E S I N C L U D E :

HOSPITALITY SKILL TRAININGS FOR YOUTH WHO ARE SCHOOL DROPOUTS,

FROM RURAL AREAS, BELOW THE POVERTY LINE, FROM SCHEDULED CASTES

AND TRIBES AND THE DIFFERENTLY -ABLED.

We have set up over 30 skill training centres

across locations in India, in partnership with

reputed National NGOs, like-minded Corporates

and Foundations, as well as with government ITIs.

We have offered support in terms of curriculum

design, awareness material for mobilizing village

youth, training of trainers, on-the-job training

for students and joint certification. Our focus

is on reaching out to the youth from remote areas

who find it difficult to have direct access to market-

relevant skill training which, in turn, leads to

immediateemployability.


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H E L P I N G P E O P L E H E L P T H E M S E L V E S

The team at The Gateway Hotel in Vadodara is drivento help the underprivileged as well as the differently-

abled to live a sustainable life through a series of

hospitality skill training workshops in partnership

with local a Non-Profit Organization called Don

Bosco Snehalaya. Thecandidates are not only happy to

be working at a Taj Hotel, but also aspire to do more

for their family as well as for themselves. Babul,for example, is a differently-abled associate, who

works in the Housekeeping Department and eagerly

aspires to be a Housekeeping Manager some day.

He was elected Partner of the Month in December

2011 for having returned guest money found while

doing laundry.

Taj Club House, Chennai builds livelihood fordifferently-abled people; I am in safe hands today, says Rakesh, who

works in the laundry department at Taj Club House, Chennai. Rakesh was born with a hearing disability in an

underprivileged family. Prior to Taj, Rakesh worked part-time as a delivery boy at a restaurant, where he had a hard

time makingends meet. Today, Rakeshis one of thekey performers in thelaundry department of thehotel. This is one

such story among several others of differently-abled candidates, who have been trained and incorporated into the

heartofthehouseatTajClubHouseinChennai.

Currently, the hotel has 10 differently-abled candidates, 5 of whom have been with the

company for the past one year. Across all Taj Hotels, over 100 differently-abled youth have

been trained through various skill training programmes.


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P R O M O T I N G I N D I G E N O U S A R T S , C R A F T S , C U L T U R E

A N D D E V E LO P M E N T O F T H E LO C A L E C O N O M Y

We work towards facilitating awareness and revival of

indigenous arts, enhance visibility and provide

a platform for exhibition and sale of artefacts,

performances by local artisans/craftsmen and culture

troupes. We encourage purchase of 'quality' gift-

Madhukar Gawai lives by the philosophy of Never giving up. Madhukar is the man behind

the beautiful Bidriware products that grace the lobby of Taj Residency, Aurangabad.

Bidri work, a long-forgotten tradition, which traces its origins to 2,000 years ago, first

originated in Damascus, Syria. The tradition was introduced in India by the Mughals to the

city of Bidar, after which, it flourished in cities such as Hyderabad and Lucknow. Today, anage-old custom is being kept alive by Madhukar, who came close to giving up Bidri work,

a few years ago.

When Madhukar was having second thoughts about giving up his business, he was

introduced to Paramparik Karigar, an NGO which works towards reviving art and craft in

various locations around India. This preamble which took place in 2005 changed his life.

Paramparik went on to introduce Madhukar to Taj Residency, Aurangabad, who gave him a

counter in the lobby of the hotel to display and sell his products. Within a span of 3 years,

Madhukars earnings multiplied manifold and he now looks forward to a brighter future.

items, products for business-use from artisans,

small-scale entrepreneurs and NGOs. We keenly

support income-generation projects run by small-

scale entrepreneurs, self-help groups, NGOs and

facilitateproduct development andancillary services.


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I M P A C T O F K E Y P R O G R A M M E S

We have trained and certified over 7,500 youth,

since 2008, in partnership with NGOs and ITIs

across identified locations in India, with more

than 300 youth from Scheduled Castes and Tribes

from remote areas. We have reached out to more than

100 differently-abled youth through skill training

inourhotels.

We support income generation programmes ofvarious NGOs and local self-help groups by sourcing

articles for business use like table mats, newspaper

bags, table napkins, shoe bags, mops, candles, pickles,

cafeteria snacks, gift items for guests/associates and

other dailyconsumables.

We also support indigenous artisans and culture

troupes by providing a venue for showcasing artefacts,

T R A I N I N G A N D S U P P O R T F O R N U T R I T I O N P R O G R A M M E S

We have developed training content on nutrition, cooking and personal hygiene, low-cost, delicious and diverse

nutritious recipes forchildren inpartnership withgovernment andidentified NGOs.

organizing performances, procuring guest gift items

andsoon.

We have also partnered with Integrated Child

Development Scheme, Government of Maharashtra,

selected anganwadis (creches) in our neighbourhoods

as well as NGOs working on supplementary nutritionprogrammes to train creche workers and mothers in

fooddiversification, cookingandpersonalhygiene

We recognize the potential of our 'connect' with

discerning national and international clientele and

the opportunity to drive ideas and initiatives for

'Sensitive Hotel-Stays'. We have initiated projects

related to bee-keeping, single origin honey

harvesting, organic kitchen gardening and continue

to facilitate nutritional support programmes in

identifiedareas.

OUR HOTELS AND OFFICES ACROSS THE COUNTRY

HAVE SOURCED GOODS WORTH INR 200 MILL ION

FROM CAUSE-BASED ORGANIZATIONS OVER THE

LAST 3 YEARS.

OUR PALACES, RESORTS AND HOTELS SUPPORT

O VE R 3 0 0 A RT I SA NS A ND C UL TU RE T RO UP E

MEMBERS, YEAR AFTER YEAR.


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Bee-keeping or apiculture is defined as the

maintenance of honey-bee colonies in an organizedand scientific manner to promote pollination,

bio-diversity and to collect honey and other related

products. In partnership with a local resource

organization called Under The Mango Tree,

Taj Safaris lodge near Bandhavgarh, Madhya

Pradesh took up this initiative with a view to promote

and revive the tradition of barter system, where the

honey-bees get a protected environment for their

growthandin return, help thefarmers improve their

cropyieldandproducehoneyasaby-product.

P R O M O T I N G B I O - D I V E R S I T Y T H R O U G H B E E - K E E P I N G

The Bee-keeping initiative was undertaken in

3 neighbouring villages with 27 beneficiariesreceiving training and a total of nine activebee-boxes.

Farmers such as Mastram Baiga who used to earlier

break open the hives for honey have learnt that with

training, they can domesticate bees, just as they

domesticate cows and other farm animals. Bablu

Singh Gond, a farmer from the village of Dobha

bordering Bandhavgarh National Park says, The

entirevillage comes all the way tomy backyardtohave a

lookat the bee-box. All of themare keentoparticipate

inthetrainingsothattheycankeeptheirownboxes.

According to the Forest Department, Madhya Pradesh

consumes fuel wood worth approximately INR 25

million. Fuel wood is also a major cause of accidental

encounters between man and wild animals.

Therefore, Taj Safaris encouraged nearby villages to

replace traditional stoves with smokeless ones.

A traditional stove has only one burner, it consumes

a lot more fire wood and is also unhealthy for the

womenfolk as they inhale a lot of smoke in the process.

The smokeless stove makes space for two burners

and therefore, two items can be cooked at the same

T O W A R D S A S M O K E L E S S E N V I R O N M E N T

time without using any additional fuel wood.

The hand blower pumps the required air to keep

the fire burning and maintain the required

temperature for cooking. The conduit pipe acts as an

exhaust for the stove. This isa boonfor the womenfolk

who faced respiratory problems with the smoke

released from the traditional stoves. The initial

figures are highly encouraging; consumption of fuel

wood has gone down by as much as 40-45% with a

significant reduction in cooking time, while also

ensuringa farhealthier, smokelessenvironment.


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21

I N D U S T R I A L T R A I N I N G I N S T I T U T E ( I T I ) L O N A V A L A

Man-made/natural calamities can occur without

warning. Dependents of the victims of such calamities

are left to face the consequences long after such

incidents. TheTrust waskeen to provide a long lasting

means of extending support to those affected familiesinmaking themeconomically independent.

Towards this, The Trust planned to partner with

ITI Lonavala to set up a state-of-the-art Centre of

Excellence (COE) for Hospitality with support from

the government of Maharashtra and the World Bank

under the Public Private Partnership scheme. Thiswill include hostel/residential facilities for 50 youth.

T A J P U B L I C S E R V I C E W E L F A R E T R U S T

The Taj Public Service Welfare Trust was established immediately after the Mumbai 26/11

terror attack in 2008. As in the previous years, the Trust continues to receive unstinting

support from well-wishers in India and abroad. The Trust has actively extended its help and

support to the victims of terror and natural calamities.

Thefocus was on long-termrehabilitationinitiatives like support for micro-enterprise or to imparta vocational skill

whereby the affected family can become self-sustainable. Apart from this, ongoing support with monthly sustenance,

educationandmedical assistancecontinues to beprovided.

2 6 / 1 1 T E R R O R A T TA C K V I C T I M R E H A B I L I T AT I O N

1 3 / 7 M U M B A I B O M B B L A S T V I C T I M R E H A B I L I T A T I O N

On 13th July 2011, bomb blasts occurred in Dadar, Zaveri Bazaar and Opera House areas in Mumbai. The Trust

immediately responded and is today working with 149 families and supporting them with programs like monthly

sustenance, medical re-imbursement, education and prosthetics support. The Trust will soon introduce measures to

impart hospitality/relatedskilltrainingandendeavourtomaketheseaffectedfamilies self-sustainable.


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22

I am very happy here.I love working at The Gateway Hotel,

Vadodara. Ive learnt a lot here.

-SurinderCommunicated in sign language, since Surinder is hearing and speech impaired.

H E L P I N G S H A P E A B E T T E R L I F E

H E L P I N G U N S U N G H E R O E S O F T H E N A T I O N

In September 2011, the Taj Palace hotel

in Delhi conducted a charity fund raising

event called Black Tie. Various corporates

supported the event and INR 2.2 million

thus got raised. In consultation with

Army headquarters in Delhi, it was

decided that this fund be used to support

jawans (soldiers) of the Indian armed

forces who have become paraplegic in the

line of duty. This fund will support their

needs like higher education for their

children, setting up of a micro enterprise

to become self sustainable and athletic

training. As there are more jawans whose

needs have yet to be met, Black Tie will

now be an annual fund-raising event.

S U P P O R T I N G V I C T I M S O F T H E S U N D E R B A N S F L O O D

The Trust has initiated work to support families affected by natural disasters in the

Sunderbans region of West Bengal, by restoration of their livelihood options.


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23

B U I L D I N G S U S T A I N A B L E L I V E L I H O O D S

T A J C O R P O R A T E

S O C I A L R E S P O N S I B I L I T Y P A R T N E R S H I P S

BengaluruChannarayapatna

Mangalore

HyderabadVijayawada

JaitaranKishengarh

LuniSawai Madhopur

Udaipur

Chandkheda

KodinarMithapur

Vadodara

Guwahati

KolkataMirpara

MonsudaTangra

Borivali

Chinchwad, PuneKhultabad

LonavalaMulund

NashikOros Sindhudurg

Satara

Dhamtari

Dadri

RAJASTHAN

GUJARAT

MAHARASHTRA

KARNATAKA

ANDHRA PRADESH

TAMIL NADUChennai

KERALACalicut

CHHATTISGARH

MADHYA PRADESH

JAMMU &KASHMIR

WEST BENGAL

NAGALAND

Srinagar

JHARKHANDKolabera

DELHI

ASSAM

MEGHALAYADimapur

Umram

Bhopal


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u n g c c o n t e n t i n d e x

U N G C P R I N C I P L E N A M E O F T H E S E C T I O N

H U M A N R I G H T S

P R I N C I P L E 1 :

P R INCIP L E 2 :

Businesses should support andrespect the

protectionof internationally proclaimedhuman rights.

Make sure that they are not complicit in

humanrights abuses.

Corporate Governance


L A B O U R


PR INCIPLE 4 :



Businesses should uphold the freedom of

association and the effective recognition of the right to

collective bargaining.

The elimination of all forms of forced andcompulsorylabour.

Theeffectiveabolitionofchildlabour.

The elimination of discrimination in

respectof employmentand occupation.

Employee Welfare

Employee Welfare

Employee Welfare

Employee Welfare

E N V I R O N M E N T


P R INCIP L E 8 :


Businessesshould support a precautionaryapproachtoenvironmentalchallenges.

Undertake initiatives to promote greater

environmentalresponsibility.

Encouragethedevelopment anddiffusion

of environmentallyfriendly technologies.

Environment Management



A N T I - C O R R U P T I O N

P R I N C I P L E 1 0 : Businesses should work against corruptioninallitsforms,includingextortionandbribery.



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s u m m a r y o f g r i i n d e x

S E C T I O N N A M E F U R T H E R C O M M E N T SI N D I C A T O R SC O V E R E D

S T A T E M E N T F R O M M D 1.1, 1.2

C O M P A N Y P R O F I L E 2.1, 2.2, 2.3, 2.4,2.5, 2.6, 2.7, 2.8,3.1, 3.6, 3.7, 3.8,4.12

2.8 Aspectsof scaleareaddressed inrelevant sectionsof thereport

3.2Ourpreviousreportwasforthefinancialyear2010-11

3.3Reportingcycleisannual

3.9 Assumptionsmade,if any,are mentionedin relevantsectionsof thereport

3.10 Restatementsareexplainedwhereverapplicable

3.11,EN27,SO10Notapplicable

3.5, 4.13 4.17, SO5 Please refer IHCL Corporate Sustainability Report 2010-11 for furtherinformation.

S T R A T E G Y A N D

R O A D M A P

EC1EC4-InformationisavailableinourAnnualReport2011-12.

EC7 Whilewe donot have a specificpolicyonlocalhiring,we doprefer toemploy persons fromthe

communities in whichwe operate

C O R P O R A T E

G O V E R N A N C E

4.1, 4.2, 4.3, 4.4,4.5, 4.6, 4.7, 4.8,4.9, 4.10

E M P L O Y E E W E L F A R E LA1, LA2, LA7,LA10, LA8, HR3

LA15 In 2010-11, 340 employees availed parental leave of which 279 returned to work, and 143

continueto workin ourorganization

LA4 All ouremployees havethe freedomof associationand collectivebargaining

LA5 Wefollowall lawsof theland regardingnoticeperiods forsignificantoperationalchanges

LA14 We arean equal opportunity employer,and everything elsebeingequal, theratioof salaries

ofmentowomenis1:1

HR1 All our investment contract mandate adherence to the TCoC which includes clauses on

humanrights

HR2, HR10 While none of our operations have been screened for human rights assessments, all

ourhotels andsuppliersare mandatedto follow theTCoCwhich includesclauses onhuman rights

HR5 None of our suppliers have been identified as those prohibiting the freedom of collective

bargaining

HR6, HR7 All our hotels prohibit the employment of child labour and forced labour.

All employees, including contract employees, are screenedto ensure that no child is employed in our

premises

HR4Therehavebeennoincidentsofdiscriminationreportedinthereportingyear

HR11Therehavebeennogrievancesrelatedtohumanrightsfiledinthereportingyear

E N V I R O N M E N TM A N A G E M E N T

C O M M U N I T Y D E V E L O P M E N T

SO9 During our studies in and around our locations of operation, we did not come across any

potentialor actualnegative impacton localcommunitiesdue to ourpresence

SO3 Allour employeesare trainedonthe TCoC, whichincludes clauses on anti-corruption

SO4 Noincidentsof corruptionwerereportedin 2011-12

PR1 Considering that weare inthe hospitality industry,we continuouslymonitorthesafety andair

quality ofourhotels toensurethe safetyofour guestsandemployees

PR3Wefollowalllawsofthelandregardingserviceinformationrequired

PR6 We adhere to all mandates of the Advertising Standards Council of India regarding our

marketingcommunications

EN1, EN2 Being a service industry, we do not have a final product that we produce. Hence, these

indicatorsarenotapplicabletous

EN17 Partiallyreported

EN19Weused392kgsofODSintheyearforHVACpurposes

EN23 Therewerenosignificantspills(spillsgreaterthan159litresor onebarrel)intheyear

EN28, SO8, PR9 There were no monetary or non-monetary sanctions levied on us in the

reportingyear forany non-compliancewith lawsand regulations

G R I I N D E X 3.12

EC8, SO1, EC6

4.11,EN3,EN4,EN8,EN16, EN20, EN21,EN22, EN26, EN11,

EN12, EN13, EN14,EN15

Detailed information on these indicators is available in our Annual Report 2011-12. The link to the same is:

The IHCL 2010-11 Corporate Sustainability Report can be accessed here:

http://www.tajhotels.com/About-Taj/Investo

Relations/Annual-Reports.html http://www.tajhotels.com/About-Taj/Company-

Information/8th-Corporate-Sustainability-Report.pdf


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KPMG India was engaged by Indian Hotels Company Limited ('IHCL', 'the Company') to provide assurance

on IHCL's 2011-12 Communication on Progress ('the Report') on the ten principles of United Nations Global

Compact (UNGC).

Thescope of assurancecovers data and information on IHCL's approach towards andperformance on upholding the

tenprinciplesoftheUNGCpresentedintheReportforthefinancialyear2011-2012.

Weconducted our work in accordance with ISAE 3000 {Limited Assurance requirements of ISAE 3000 (Revised),

Assurance Engagements Other Than Audits or Reviews of Historical Financial Information by International

Federation of Accountants' (IFAC) International Standard for Assurance Engagements}. We conducted our

engagement in compliance with the requirements of the IFAC Code of Ethics for Professional Accountants, which

requires, among other requirements, that the members of the assurance team (practitioners) as well as the assurance

firm (assurance provider)be independent of theassuranceclient, includingnotbeing involved in writing theReport.

The Code also includes detailed requirements for practitioners regarding integrity, objectivity, professional

competence and due care, confidentiality and professional behaviour. KPMG has systems and processes in place to

monitor compliancewiththeCodeandto preventconflictsregarding independence.

For the locations that were not visited, we have relied on the information provided by the hotels and have only studied

the consolidation of the data for accuracy. We have not been engaged to determine which, if any, recommendations

should be implemented; act on behalf of management in reporting to the Board of Directors, or Audit Committee;

develop/prepare source documents on transactions; verify financial performance indicators. We have also not been

engaged toprovide assuranceoveranyprioryear data or informationpresented intheReport.

Based on our review, nothing has come to our attention to indicate that the information contained in the Report is

inconsistent with thefindingsof ourworkasdescribedbelow:

IHCL isgoverned bytheTataCode ofConduct (TCoC). TheTCoCprovides theguidelinesbywhich IHCL conductsits business and also enacts the seven principles of the UNGC in the areas of human rights, labour standards and

anti-corruption

IHCL's SHE committee has Board level representation and is responsible for all key decisions related to upholding

thethree principles of theUNGC intheareaof environmentmanagement

IHCL has processes in place to collect, collate and monitor performance data related to the implementation of the

tenprinciplesoftheUNGC

IHCL has mapped the contents of the Report to relevant parameters of the GRI G3.1 Guidelines. The information

provided and indicators addressed are aligned to the requirements of A Application Level of the GRI G3.1

Guidelines.A detailedGRIG3.1content indexhasbeenincorporatedat theend of this report.

WHAT WAS INCLUDED IN THE SCOPE OF OUR ASSURAN CE ENGAGEMEN T?

WHICH ASSU RANCE STANDARD S DID WE USE?

SPECIFIC LIMITATIONS TO OUR WORK INCLUDED THE FOLLOWING:

WHAT ARE OUR CONCLUSIONS?

INDEPENDENT ASSURANCE STATEMENT ON

INDIAN HOTELS COMPANY L IMITED 'S 2011-12 COMMUNICATION ON PROGRESS


29/37

27

WHAT DID WE DO TO REACH OUR CONCLUSI ONS?

RESPONSIBILITIES

We planned and performed our work to obtain all the evidence, information and explanations that we considered

necessary in relation to the above scope. Our work included the following procedures using a range of evidence-

gatheringactivitieswhichare further explainedbelow:

An evaluation of the existence and operation of the systems and methods used to collect, process and aggregate the

selected performance data presented in theReport. We also testedthereliabilityof underlying data andinformation

forthe selectedperformance data withinthe scopeofourassurance forthe sitesvisited

A review of the draft Report to ensure there are no disclosures that are misrepresented or inconsistent with

ourfindings

Conducting visits to domestichotels andconference callswithinternationalhotels as follows:

Agra The GatewayHotel, FatehabadRoad

Bangalore TajWestEnd,TheGatewayHotel- ResidencyRoad,Vivantaby Taj- M G Road

Chennai Taj ClubHouse, Taj Coromandel, Vivantaby Taj Fisherman's Cove, VivantabyTaj - Connemara

Mumbai CorporateOffice- IHCL, CorporateOffice- Ginger, Taj Mahal Palace, Taj Lands End, TajSATS,

Taj WellingtonMews,Vivantaby Taj - President

NewDelhi- Ginger- VivekVihar, TajMahal,TajPalaceHotel, TajSATS, VivantabyTaj- Ambassador

Malaysia RebakIsland Resort, Langkawi

Maldives VivantabyTaj- CoralReef

South Africa Taj CapeTownUSA Campton Place,San Francisco

The Management of IHCL is responsible for preparing the Report and the information and statements within it.

The Board is responsible for defining commitments with respect to performance and for establishing and

maintaining appropriate performance management and internal control systems from which reported information

is derived.

Our responsibility is to express our conclusions in relation to the above scope. We conducted our engagement with a

multi-disciplinary teamincludingspecialistsin ISAE3000, stakeholder engagement, auditingenvironmental, social

andfinancial information andwithexperience in similar engagements in thehospitality sector.

This report is made solely to IHCL in accordance with thetermsof ourengagement. Ourwork hasbeen undertaken so

that wemight state toIHCL those matters we havebeenengaged tostate in this report and for noother purpose.To the

fullest extent permitted by law, we do not accept or assume responsibility toanyoneother thanIHCL for our work, for

thisreport,orfortheconclusionswehavereached.

ArvindSharma 29th August, 2012Director

KPMG,India

SITE VIS ITS:

CONFERENCE CALLS:

-

-

- -

-

-

-

--


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T H E G A T E W A Y H O T E L G I R F O R E S T , S A S A N G I R

V I V A N TA B Y T A J - D A L V I E W, S R I N A G A R

N E W H O T E L S L A U N C H E D I N 2 0 1 1 - 1 2


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29

V I V A N T A B Y TA J - S U R YA , C O I M B AT O R E V I V A N TA B Y T A J - B E G U M P E T, H Y D E R A B A D

V I V A N T A B Y TA J - B E K A L

V I V A N T A B Y TA J - Y E S H W A N T P U R , B A N G A L O R E

N E W H O T E L S L A U N C H E D I N 2 0 1 1 - 1 2


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Indian Hotels Company Limited (IHCL) is a member of United

Nations Global Compact, a UN initiated network mobilizing

business and organisations for a sustainable world. This report

serves as our Communication on Progress on how we have fulfilledour commitments to the ten principles of the United Nations

GlobalCompact in theyear2011-12.

We have also mapped this report to the

G3.1guidelines.

At The Indian Hotels Company,

Global Reporting Initiative

(GRI)

we nurture the culture of going

beyondthenumbers.

Our theme for this report is an attempt to reflect the very heart and

spirit of what makes the Taj; our rich legacy of business for a

purpose, our committed people, monumental structures, the fine

art of hospitality, our passion for transcending standards, our

pioneering strides in food and beverages and the intricate fabric of

what makesTaj what it is todayand what it strives to be.

C O V E R T H E M E

REGISTERED OFF ICE :

The Indian Hotels Company Limited, Mandlik House,Mandlik Road, Colaba, Mumbai 400 001.

Tel: +91 22 6639 5515, Fax: +91 22 2283 4922

www.tajhotels.com

We welcome feedback on our 2011-12

Communication on Progress. Please contact:

Mr. Vasant Ayyappan

Director - Corporate Sustainability

Tel: +91 22 66651000

Email: [email protected]


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g c o n t e n t i n d e x3.1

A P P L I C A T I O N L E V E L A + A S S U R E D B Y K P M G

STANDARD DISCLOSURES PART I: Profile Disclosures

1. Strategy and Analysis

ProfileDisclosure Description Reported Cross-reference/Direct answer

1.1 Statement from the most senior decision-maker of the organization. Fully Page 2,3

1.2 Description of key impacts, risks, and opportunities. Fully PleasereferourAnnualReport2011-12forfurtherinformation(page14,26,27).Itcanbeaccessedhere:

http://www.tajhotels.com/About-Taj/Investor-Relations/pdf/IHCL-Annual-Report-2011-2012.pdf#zoom=100

2. Organizational Profile

2.1 Name of the organization. Fully Page 1

2.2 Primary brands, products, and/or services. Fully Page 4, 5

2.3 Operational structure of the organization, including main divisions, operating companies,subsidiaries,andjoint ventures.

Fully Informationisavailableat ourwebsiteat:

http://www.tajhotels.com/About-Taj/Investor-Relations/corporateinformation.html

2.4 Location of organization's headquarters. Fully Page 30

2.5 Number of countries where the organization operates, and names of countries with either majoroperationsor thatarespecificallyrelevantto thesustainabilityissuescoveredinthereport.

Fully PleasereferourAnnualReport2011-12forfurtherinformation(page50).It canbeaccessedhere:


2.6 Na tu re of o wner shi p and l eg al f or m. Fu ll y Pl eas e re fe r our A nnu al R epo rt 2 01 1-1 2 for f ur th er i nf or mat io n( pag e 47 ). I t can be ac ces se dh ere :


2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).



2.8 Scale of the reporting organization. Fully Aspects of scale are addressed in relevant sections of the report

2.9 Significant changes during the reporting period regarding size, structure,orownership.

Fully PleasereferourAnnualReport2011-12forfurtherinformation(page2,4,5,11,12,15-18).It canbeaccessedhere:


2.10 Aw ar ds re ce iv ed in t he r ep or ti ng p er io d. Fu ll y Pl eas e re fe r our A nnu al R epo rt 2 01 1-1 2 for f ur th er i nf or mat io n( pag e 33, 34 ,3 5) . It c an be ac ce sse d her e:


Furtherinformationis alsoavailable atour websiteat: http://www.tajhotels.com/Press-Room/Awards.aspx

3. Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Fully Page 1

3.2 Dat e of mo st re ce nt pre vi ou s re po rt (i f any ). Fu ll y Ou r pre vi ou sr ep or t wa sp ub li sh ed f or t he year 2 010 -1 1. I t can be a cc esse d at :http://www.tajhotels.com/About-Taj/Company-Information/8th-Corporate-Sustainability-Report.pdf

3.3 Reporting cycle (annual, biennial, etc.) Fully Reporting cycle is annual

3.4 Contact point for questions regarding the report or its contents. Fully Page 30

3.5 Pr oce ss f or d efi ni ng re po rt co nt ent . Fu ll y Pl eas e re fe r IHC L Cor por at e Su st ain ab il it yRep or t 20 10 -1 1 (p ag es 30 - 31 ). I t can be a cc ess he re :

http://www.tajhotels.com/About-Taj/Company-Information/8th-Corporate-Sustainability-Report.pdf

3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures,suppliers).See GRIBoundary Protocolfor furtherguidance.

Fully Page 4, 5

3.7 State any specific limitations on the scope or boundary of the report (see completeness principleforexplanationofscope).

Fully Specific limitations (if any) pertaining the performance indicators reported have been detailed in the individualsections

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, andother entities that can significantly affect comparability from period to period and/or betweenorganizations.

Fully Page 4, 5

3.9 Data measurement techniques and the bases of calculations, including assumptions andtechniques underlying estimations applied to the compilation of the Indicators and otherinformationinthe report.Explainanydecisionsnot toapply,orto substantiallydivergefrom,theGRIIndicatorProtocols.

Fully Relevantexplanationshave beenprovided inthe individualsectionwhere necessary

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, andthereasonsfor suchre-statement(e.g.,mergers/acquisitions, changeof baseyears/periods,natureofbusiness,measurement methods).

Fully Re-statementsofinformation,if any,have beenreported inthe relevantsections

3.11 Significant changes from previous reporting periods in t he scope, boundary, or measurementmethodsappliedinthereport.

Fully Hotels that have opened in 2011-12 in the Luxury, Safari, Vivanta, Gateway and Ginger brands have been includedinthereportscope.Furtherdetailsaboutthesameareavailableinour AnnualReportaccessiblehere(page15,16,17):


3.12 Tableidentifying thel ocationof theStandard Disclosuresinthe report. Fully Page 25

3.13 Policyandcurrentpracticewithregardtoseekingexternalassuranceforthe report. Fully Page 26, 27



4. Governance, Commitments and Engagement

4.1 Governance structure of the organization, including committees under the highest governancebodyresponsiblefor specifictasks,such assetting strategyor organizationaloversight.

Fully PleasereferourAnnualReport2011-12forfurtherinformation(page36-39).Itcanbeaccessedhere:



4.2 Indicatewhetherthe Chairof thehighestgovernancebodyisalsoan executiveofficer. Fully Page 6

4.3 For organizationsthathavea unitaryboardstructure,statethe numberand genderof membersofthehighest governancebodythat areindependentand/ornon-executivemembers.

Fully Page 6

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to thehighestgovernancebody.

Fully PleasereferourAnnualReport2011-12forfurtherinformation(page38,39).It canbeaccessedhere:


4.5 Linkage between compensation for members of the highest governance body, senior managers,and executives (including departure arrangements), and the organization's performance

(includingsocialandenvironmentalperformance).



4.6 Processesin placefor thehighestgovernancebodyto ensureconflictsofinterestareavoided. Fully Please refer our Annual Report 2011-12 for further information (page 43 - whistle blower policy). It can beaccessedhere:


4.7 Process for determining the composition, qualifications, and expertise of the members ofthe highest governance body and its committees, including any consideration of gender andotherindicatorsofdiversity.



4.8 Internally developed statements of mission or values, codes of conduct, and principles relevanttoeconomic, environmental,andsocial performanceandthe statusof theirimplementation.

Fully WearegovernedbytheTataCodeofConductinallourdealings.Thelinktothesameis:

http://www.tata.com/aboutus/articles/inside.aspx?artid=NyGNnLHkaAc=


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4.9 Procedures of the highest governance body for overseeing the organization's identification andmanagementof economic,environmental,andsocial performance,includingrelevant risksandopportunities, and adherence or compliance with internationally agreed standards, codes ofconduct,andprinciples.

Fully PleasereferourAnnualReport2011-12forfurtherinformation(page36,37).Itcanbe accessedhere:


Informationisalsoavailableinour 2010-11CorporateSustainabilityReport(page16).It canbeaccessedhere:


4.10 Processes for evaluating the highest governance body's own performance, particularly withrespectto economic,environmental,andsocial performance.



4.12 Externallydevelopedeconomic,environmental,andsocialcharters,principles,orother initiativestowhichthe organizationsubscribesor endorses.

Fully Wesubscribeto theUnited NationsGlobalCompact

4.13 Memberships in associations (such as industry associations) and/or national/internationaladvocacy organizations in which the organization: *Has positions in governance bodies;* Participates in projects or committees; *Provides substantive funding beyond routinemembershipdues;or *Viewsmembershipas strategic.

Fully Taj representatives hold positions in varied capacities across associations ranging from Travel & Tourism, Inter-Country Associaitons, Chambers of Commerce & Industry, State associations, advertising societies, conventionsnetworksandsoon.FurtherdetailsareprovidedunderindicatorSO5

4.14 Listof stakeholdergroupsengaged by theorganization. Fully PleasereferIHCLCorporateSustainabilityReport2010-11(page27-29).Itcanbeaccessedhere:http://www.tajhotels.com/About-Taj/Company-Information/8th-Corporate-Sustainability-Report.pdf

4.15 Basisfor identificationandselection ofstakeholderswith whomto engage. Fully Pleaserefer IHCLCorporateSustainability Report2010-11 (page27-29). It canbe accessedhere:


4.16 Approaches to stakeholder engagement, including frequency of engagement by type and bystakeholdergroup.

Fully Pleaserefer IHCLCorporateSustainability Report2010-11 (page27-29). It canbe accessedhere:


4.17 Key topics and concerns that have been raised through stakeholder engagement, and how theorganizationhasrespondedto thosekey topicsand concerns,includingthrough itsreporting.

Fully Pleaserefer IHCLCorporateSustainability Report2010-11 (page27-29). It canbe accessedhere:


STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

G3 DMA Description Reported Cross-reference/Direct answerTo bereported in

DMA EC DisclosureonManagementApproachECPlease refer IHCL Corporate Sustainability Report 2010-11 (page 27-29).Itcanbeaccessedhere:


Aspects Economic performance

Market presence

Indirect economic impacts

DMA EN DisclosureonManagementApproachEN

Materials

Energy

Water

Bio-diversity

Emissions, effluents and waste

Products and services

ComplianceTransport

Overall

Page 10-15

DMA LA DisclosureonManagementApproachLA

Employment

Labor/management relations

Occupational health and safety

Training and education

Diversity and equal opportunity

Equal remuneration for women and men

Page 7-9

Aspects

Aspects

DMA HR DisclosureonManagementApproachHR

Investment and procurement practices

Non-discrimination

Freedom of association and collective bargaining

Child labor

Prevention of forced and compulsory labor

Security practices

Indigenous rightsAssessment

Remediation

Page 6-9

Aspects

DMA SO DisclosureonManagementApproachSO

Local communities

Corruption

Public policy

Anti-competitive behavior

Compliance

Page 16-23

Aspects

DMA PR DisclosureonManagementApproachPR

Customer health and safety

Product and service labelling

Marketing communications

Customer privacy

Compliance

Page 25

Aspects

4.11 Explanation of whether and how the precautionary approach or principle is addressed by theorganization.

Fully Page 10-15

STANDARD DISCLOSURES PART III: Performance Indicators

PerformanceIndicator Description Reported Cross-reference/Direct answer

To bereported in

ECONOMIC PERFORMANCE

Economic

EC1 Directeconomicvalue generatedanddistributed, includingrevenues,operatingcosts, employeecompensation, donations and other community investments, retained earnings, and paymentstocapital providersandgovernments.



EC2 Financial implications and other risks and opportunities for the organization's activities due toclimatechange.

Fully Page10-15

EC3 Coverageoftheorganization'sdefinedbenefitplanobligations. Fully PleasereferourAnnualReport2011-12forfurtherinformation(page144,145).Itcanbeaccessedhere:


EC4 Significantfinancialassistancereceivedfrom government. Fully Wehavenot receivedanysignificant financialassistancefromthe government

MARKET PRESENCE

EC5 Range of ratios of standard entry level wage by gender compared to local minimum wage atsignificantlocationsof operation.

Fully We abide by all national regulations of wage payments and pay equal to or above minimum wagerequirementsatall our plants.Theentrylevelwageformalesandfemalesisequal

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locationsofoperation.



EC7 Proceduresfor localhiringand proportionof seniormanagementhiredfromthelocal communityat significantlocationsof operation.

Fully While we do not have a specific policy on local hiring, we do prefer to employ persons from thecommunitiesinwhich weoperate

INDIRECT ECONOMIC IMPACTS

EC8 Development and impact of infrastructure investments and services provided primarily forpublicbenefit throughcommercial,in-kind, orpro bonoengagement.

Fully Page16-23

EC9 Understanding and describing significant indirect economic impacts, including the extent ofimpacts.

Not


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Environmental

EN1 Materials used by weight or volume. Fully Being a service i ndustry, w e do not h ave a f inal product t hat w e produce. Hence, t hese indicat ors are notapplicabletous

EN2 Percentageofmaterialsusedthatarerecycledinputmaterials. Fully Beinga serviceindustry,wedonothavea finalproductthatweproduce.Hence,theseindicatorsarenotapplicabletous

MATERIALS

ENERGY

EN3 Directenergy consumptionbyprimary energysource. Fully Page11

EN4 Indirectenergyconsumptionbyprimarysource. Fully Page12

EN5 Energy saved due to conservation and efficiency improvement s. Fully Page 13

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, andreductionsinenergy requirementsasa resultof theseinitiatives.

Fully Weareaserviceindustryandhence,thisindicatorisnot applicableto us

EN7 Initiatives toreduceindirectenergyconsumptionandreductionsachieved. Fully Page13

WATER

EN8 Total water withdrawal by source. Fully Page 14

EN9 Watersources sign if ican tlyaf fectedbywithdrawalofwa ter. Fully Nowatersourcesaresign if ican tlyaf fectedbyourwithdrawals

EN10 Per ce nt ag e and t ot al v ol ume of w at er re cy cl ed and re use d. Fu ll y 79 16 28 KL of w at er w as re cy cl ed in t he year

BIO-DIVERSITY

EN11 Locationandsizeof landowned, leased,managed in,or adjacentto,protectedareasandareasofhighbio-diversityvalueoutsideprotectedareas.

Fully Fewof ourhotelsareadjacentto areasof highbio-diversityvalue.Weareestablishingsystemsto monitorourimpactsandintendtoreportonthesameinthe2013-14report

EN12 Description of significant impacts of activities, products, and services on bio-diversity inprotectedareasand areasof highbio-diversity valueoutside protectedareas.

Fully Fewof ourhotelsareadjacentto areasof highbio-diversityvalue.Weare establisingsystemstomonitorour impacts and intend to report on the same in the 2013-14 report. Details of some initiatives takenhavebeenmentionedinour previousreportaccessibleat(page61):


EN13 Habitatsprotectedor restored. Not

EN14 Strategies,current actions,andfuture plansfor managingimpactson bio-diversity. Partially Whilewe donothavea specificpolicyforbio-diversity,wedo undertakeinitiativestopromotethesameat all our locations of operations. Details of these initiatives have been mentioned in our previousreportaccessibleat (page61):


EN15 Number of IUCN Red List species and national conservation list species with habitats in areasaffectedbyoperations,bylevelof extinctionrisk.

Not

EMISSIONS, EFFLUENTS AND WASTE

EN16 Total direct and indirect greenhouse gas emissions by weight. Fully Page 12

EN17 Otherrelevantindirectgreenhousegasemissionsbyweight. Fully We are enhancing our capacities to monitor other relevant GHG emissions. Other scope 3 GHGemissionsarenot reportedfor 2011-12

EN18 Initiativesto reducegreenhousegas emissionsandreductionsachieved. Fully Page13

EN19 Emissions of ozone-depl eting substances by weight. Fully We used 392 kgs of ODS in the year for HVAC purposes

EN20 Nox, SOx, and other significant air emissions by ty pe and weight . Fully Page 12

EN21 Total water discharge by quality and destination. Fully Page 14

EN22 Total weight of waste by type and disposal method. Fully Page 15

EN23 Tota lnumberandvolumeofs ignificantspi ll s. Fully There were no s ignificant spi ll s ( spil ls greater than 159 l itres-one barrel in a s ingle occurrence of anincident)as aresultofouroperationsinthe reportingperiod

EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under theterms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported wasteshippedinternationally.

Fully WedonotimportorexportanywastedeemedhazardousunderthetermsoftheBaselConventionAnnexI,II,III,andVIII

EN25 Identity, size, protected status, and bio-diversity value of water bodies and related habitatssignificantlyaffectedby thereporting organization'sdischargesof waterand runoff.

Fully Nowaterbodyorhabitatissignificantlyaffectedbyourwaterdischargeorrunoff

EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impactmitigation.

Fully Page 10-15

EN27 Percentageofproducts soldand theirpackaging materialsthat arereclaimed bycategory. Fully Weareaserviceindustryandhence,thisindicatorisnot applicableto us

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliancewith environmental lawsand regulations.

Fully There were no monetary or non-monetary sanctions levied on us in the reporting year for any non-compliancewith lawsand regulations

COMPLIANCE

PRODUCTS AND SERVICES


To bereported in

EN29 Significantenvironmental impactsof transportingproductsand othergoodsandmaterialsusedforthe organization'soperations,and transportingmembersof theworkforce.

Not Themostsignificantenvironmentalimpactof transportingproductsandmaterials,andmembersoftheworkforce is the associated air emissions. We are enhancing our capacities to capture this data and willreportonthesameinthefuture

TRANSPORT

EMPLOYMENT

LA1 Total workforce by employment type, employment contract, and region, broken downbygender.

Fully Page7

OVERALL

EN30 Totalenvironmentalprotectionexpendituresandinvestmentsbytype. Fully Thisyear,wespentINR90.97milliononenvironmentprotection

Social: Labor Practices and Decent Work

LA2 Totalnumberandrate ofnew employeehiresand employeeturnoverby agegroup,gender,andregion.

Fully Page8

LA3 Benefits provided to full-time employees that are not provided to temporary or part-timeemployees,bymajoroperations.



LA15 Returnto workandretentionratesafterparentalleave,bygender. Partially In2010-11,340 employeesavailedparentalleaveofwhich 279returnedtowork,and 143continuet owork inour organization

LABOUR/MANAGEMENT RELATIONS

LA4 Percentageofemployees coveredby collectivebargainingagreements. Fully 100%of ournon-managementemployeeshave thefreedom ofcollective bargaining

LA5 Minimum notice period(s) regarding significant operational changes, including whether it isspecifiedin collectiveagreements.

Fully We abide by the Industrial Disputes Act, 1947 regarding notice period to be given before anyoperationalchange

OCCUPATIONAL HEALTH AND SAFETY

LA6 Percentage of total workforce represented in formal joint management-worker health and safetycommitteesthat helpmonitor andadviseon occupationalhealthand safetyprograms.

Not

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-relatedfatalitiesbyregionandbygender.

Fully Page9

LA8 Education, training, counseling, prevention, and risk-control programs in place to assistworkforcemembers,their families,or communitymembersregarding seriousdiseases.

Fully Page9

LA9 Healthand safetytopics coveredin formalagreementswith tradeunions. Not


To bereported in


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TRAINING AND EDUCATION

LA10 Averagehoursoftrainingperyear peremployeebygender,andbyemployeecategory. Fully Page8

LA11 Programsfor skillsmanagement andlifelong learningthat supportthe continuedemployabilityofemployees andassistthem inmanaging careerendings.

Not

LA12 Percentage of employees receiving regular performance and career development reviews, bygender.

Fully All employees on payroll undergo annual appraisals and career development reviews as per theirdefinedjob descriptionsandKey ResultAreas associatedwitht hem

DIVERSITY AND EQUAL OPPORTUNITY

LA13 Fully PleasereferourAnnualReport2011-12forfurtherinformation(page2).It canbeaccessedhere:


EQUAL REMUNERATION FOR WOMEN AND MEN

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significantlocationsofoperation.

Fully Everythingelsebeingequal,theratioofbasicsalaryofmento womenis 1:1

Social: Human Rights

INVESTMENT AND PROCUREMENT PRACTICES

HR1 Percentage and total number of significant investment agreements and contracts that includeclausesincorporatinghumanrights concerns,ort hathave undergonehumanrights screening.

Fully Allourinvestmentagreementsandcontractsmandateadherenceto theTCoC,whichincludeshumanrightsclauses

HR2 Percentageofsignificant suppliers,contractorsand otherbusiness partnersthat haveundergonehumanrights screening,andactionstaken.

Fully While none of our operations have been screened for human rights assessments, all our hotels andsuppliersaremandatedtofollowtheTCoCwhichincludesclausesonhumanrights

HR3 Totalhoursofemployeetrainingonpoliciesandproceduresconcerningaspectsofhumanrightsthatarerelevanttooperations,includingthepercentageofemployeestrained.

Fully Page9

NON-DISCRIMINATION

HR4 Total numberof incidentsof discriminationandcorrectiveactions taken. Fully TataCodeofConductgovernsthecaptureandaddressalof concernsinthisarea.Allvalidconcernsareassessedandclosedinstipulatedtimeframes.A totalof33concernswereraisedandclosedin 2011-12

FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING

HR5 Operations and significant suppliers identified in which the right to exercise freedom ofassociation and collective bargaining may be violated or at significant risk, and actions taken tosupporttheserights.

Fully Allofour operationsprovidethefreedomofcollectivebargainingtoour nonmanagementemployees

CHILD LABOR

HR6 Operations and significant suppliers identified as having significant risk for incidents of childlabor,andmeasurestakentocontributetothe effectiveabolitionofchildlabor.

Fully All our hotels prohibit the employment of child labour and forced labour. All employees, includingcontractemployees,arescreenedtoensurethatno childisemployedinour premises

FORCED AND COMPULSORY LABOUR

HR7 Operationsand significantsuppliersidentifiedas having significantriskfor incidentsof forcedor compulsory labor, and measures to contribute to the elimination of all forms of forced orcompulsorylabor.

Fully All our hotels prohibit t he employment of child labour and forced labour. All employees, includingcontractemployees,arescreenedtoensurethatno forcedlabourisemployedinourpremises

SECURITY PRACTICES

HR8 Percentage of security personnel trained in the organization's policies or proceduresconcerningaspectsof humanrights thatare relevantto operations.

Not

INDIGENOUS RIGHTS

HR9 Total numberof incidentsof violationsinvolvingrights ofindigenous

communication on progress new

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