supplier excellence survey - host hotels
TRANSCRIPT
© Host Hotels & Resorts, L.P.
2019 Supplier Excellence Survey Results
March 2021
GRAND HYATT WASHINGTON
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• Incorporate results into strategic supplier selection and procurement decisions (long term)
• Increase engagement with suppliers on ESG, Quality Management and Design & Specification Control (near term)
• Increase response rate and the number of participating suppliers in 2021 survey
• Adopt or maintain a Business Code of Conduct & Ethics policy and publicly support Human Rights
• Measure and manage environmental and social impacts of its products
• Implement appropriate Quality Management and Design & Specification Control processes
HOST OBJECTIVES
Objectives and Expectations
INITIAL SUPPLIER EXPECTATIONS
Host Hotels & Resorts actively engages our supply chain on environmental, social, and quality, design and specification control related issues. As part of our pilot engagement, Host surveyed select Strategic Tier 1 Suppliers* to better understand Environmental, Social and Governance (ESG) impacts and quality control practices for services and products we procure for ourdevelopment and renovation activities. The survey results have been reviewed with our suppliers to inform corporate objectives and expectations to improve ESG and quality performance in our supply chain.
*Strategic Tier 1 Suppliers undergo a comprehensive vetting process, represent 93% of addressable FF&E spend in 2019 and do not include suppliers to our hotel management companies for hotel operations.
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Survey Response HighlightsEnvironmental, Social & Governance
52%
45 OF 87 SUPPLIERS RESPONDED
71% ADDRESSABLE SPEND
REPRESENTED
SURVEY RESPONSE • 45% HAVE AN ENVIRONMENTAL
SUSTAINABILITY PROGRAM• 40% OFFER PRODUCTS WITH
SUSTAINABILITY CERTIFICATIONS• 47% HAVE AN ENVIRONMENTAL
MANAGEMENT SYSTEM (EMS)• 47% MONITOR COMPLIANCE TO LOCAL
ENVIRONMENTAL REGULATIONS
ENVIRONMENTAL SUSTAINABILITY
• 74% PUBLISH ESG INFORMATION PUBLICLY• 64% SUPPORT HUMAN RIGHTS AS DEFINED BY UN
DECLARATION OF HUMAN RIGHTS• 49% PARTICIPATE IN MARRIOTT’S SUSTAINABILITY
ASSESSMENT PROGRAM (MSAP)• 40% MAINTAIN A PUBLIC BUSINESS ETHICS & CODE
OF CONDUCT• 8% REPRESENT MINORITY & WOMEN-OWNED
BUSINESS ENTERPRISES (MWBE)
CR, ETHICS AND HUMAN RIGHTS
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Survey Response HighlightsQuality Management and Design & Specification Control
66% HAVE APPROVED SUPPLIER
AND/OR FACTORY LISTS
SUPPLIER PROGRAM
~40% HAVE FORMAL/AUDITABLE PROCEDURES FOR DESIGN CONTROL, APPROVALS AND
CHANGES
DESIGN & SPEC CONTROL
~ 50% OF RESPONDENTS HAVE A
QMS SYSTEM IN PLACE
QUALITY MANAGEMENT
SURVEY RESPONSE OVERVIEW
MARRIOTT MARQUIS SAN DIEGO MARINA
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DOES YOUR COMPANY PUBLISH AN ENVIRONMENTAL, SOCIAL & GOVERNANCE (ESG) REPORT AND/OR HAVE ESG INFORMATION AVAILABLE ONLINE?
DOES YOUR COMPANY PARTICIPATE IN THE MARRIOTT SUSTAINABILITY ASSESSMENT PROGRAM (MSAP)?
DOES YOUR COMPANY PUBLICLY SUPPORT RESPECTING HUMAN RIGHTS AS DEFINED BY THE UNITED NATIONS UNIVERSAL DECLARATION OF HUMAN RIGHTS?
DOES YOUR COMPANY HAVE A RESPONSIBLE SOURCING PROGRAM, OR ARE THEY WORKING TO DEVELOP ONE?
DOES YOUR COMPANY HAVE A PUBLICLY STATED BUSINESS ETHICS AND CODE OF CONDUCT?
IS THE COMPANY A MINORITY OR WOMAN-OWNED BUSINESS ENTERPRISE (MWBE)?
DOES YOUR COMPANY HAVE A GRIEVANCE MECHANISM?
Corporate Responsibility, Ethics and Human Rights
11%
74%
15%
Yes No N/A
49%
36%
15%
Yes No N/A
64%
21%
15%
Yes No N/A
42%
42%
16%
Yes No N/A
40%
45%
15%
Yes No N/A
8%
74%
18%
Yes No N/A
68%
17%
15%
Yes No N/A
DOES YOUR COMPANY REQUEST YOUR SUPPLIERS SUPPORT THE RESPECT OF HUMAN RIGHTS AS DEFINED BY THE UN UNIVERSAL DECLARATION OF HUMAN RIGHTS?
45%
40%
15%
Yes No N/A
7
40%
43%
17%
Yes No N/A
45%
38%
17%
Yes No N/A
Environmental SustainabilityProgram and Performance Metrics
66%
25% 25%
49%36%
49%
25%34%
75% 75%
51%64%
51%
0%
20%
40%
60%
80%
EnergyUsage
RenewableEnergy
GreenhouseGas
Emissions
WaterUsage
WasteGeneration
Recycling None of theAbove
Yes No
DOES YOUR COMPANY HAVE AN ENVIRONMENTAL SUSTAINABILITY PROGRAM?
DOES YOUR COMPANY MONITOR AND MEASURE THE FOLLOWING?
DOES YOUR COMPANY PROVIDE MATERIALS AND PRODUCT OFFERINGS WITH SUSTAINABILITY CERTIFICATIONS?
DOES YOUR COMPANY HAVE ENVIRONMENTAL TARGETS, OR ARE THEY WORKING TO DEVELOP ONE?
60%
23% 25%
45% 42%51%
27%40%
77% 75%
55% 58%49%
0%10%20%30%40%50%60%70%80%90%
EnergyUsage
RenewableEnergy
GreenhouseGas
Emissions
Water Usage WasteGeneration
Recycling &Waste
Diversionfrom Landfill
None of theAbove
Yes No
8
15%
53%
32%
Yes No N/A
23%
47%
30%
Yes No N/A
11%
60%
29%
Yes No N/A
21%
47%
32%
Yes No N/A
HAS THE COMPANY RECEIVED ANY ENVIRONMENTAL FINES IN THE PAST 12 MONTHS?
DOES YOUR COMPANY HAVE AN ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)?
IS YOUR COMPANY’S EMS REGISTERED/ ACCREDITED TO A SYSTEM STANDARD SUCH AS ISO 140001?
DOES YOUR COMPANY’S EMS MONITOR COMPLIANCE TO LOCAL ENVIRONMENTAL REGULATIONS?
DOES YOUR COMPANY’S EMS CONDUCT ENVIRONMENTAL RISK ASSESSMENT?
Environmental SustainabilityCompliance and Environmental Management System (EMS)
0%
83%
17%
Yes No N/A
9
47%
0%
53%
Yes No N/A
45%
2%
53%
Yes No N/A
47%
0%
53%
Yes No N/A
38%
12%
50%
Yes No N/A
13%
34%
53%
Yes No N/A
47%
26%
27%
Yes No N/A
DOES YOUR COMPANY HAVE A QUALITY MANAGEMENT SYSTEM (QMS)?
IS YOUR COMPANY’S QMS REGISTERED/ ACCREDITED TO A QUALITY SYSTEM SUCH AS ISO 9001?
DOES YOUR COMPANY HAVE A DOCUMENTED QUALITY POLICY?
DOES YOUR COMPANY HAVE EMPLOYEE TRAINING TO THE COMMITMENT AND QUALITY PROCESSES?
DOES YOUR COMPANY HAVE PERFORMANCE MONITORING OF MANUFACTURING AND/OR FINISHING PROCESSES?
Quality Management System Program, Controls & Policies
DOES YOUR COMPANY HAVE CONTINUAL IMPROVEMENT OBJECTIVES INCLUDED IN YOUR QMS?
10
Quality Management SystemCore Components
ARE ANY OF THE FOLLOWING QUALITY ASSURANCE AND QUALITY
CONTROL MEASURES INCLUDED IN YOUR QMS?
42%45%
40%
47%
58%55%
60%
53%
0%
10%
20%
30%
40%
50%
60%
70%
QA/QC validation andverification
Supplier quality systemqualification
Nonconformingmaterials/products/finishingcontrol to prohibit their use,for effective disposition, and
with effectivecorrective/preventive action
Product delivery qualitymeasures
Yes No
11
45% 47% 45%
60%55% 53% 55%
40%
0%
10%
20%
30%
40%
50%
60%
70%
Production Failures Quality Issues Delivery Issues Other
Yes No
Quality Management SystemPerformance Metrics
ARE ANY OF THE FOLLOWING CORRECTIVE OR PREVENTATIVE
ACTIONS INCLUDED IN YOUR QMS?
12
40% 42%
32%
4%
60% 58%
68%
96%
0%
20%
40%
60%
80%
100%
120%
Availability ofmaterial/finishing
conformance to applicablespecifications (e.g. material
certificiations, qualitycertificates of compliance,
MSDS)
Retention of master copieson file as a quality record
Document retentionschedule
Other
Yes No
Quality Management SystemDocumentation Control
ARE ANY OF THE FOLLOWING DOCUMENTATION CONTROL
PROCESSES INCLUDED IN YOUR QMS?
13
40%
32%
28%
Yes No N/A
38%
21%
41%
Yes No N/A
Design & Specification Control
DO YOU HAVE FORMAL/AUDITABLE PROCEDURES IN PLACE TO ADDRESS DESIGN DOCUMENTATION DEVELOPMENT AND CONTROL?
36%
21%
43%
Yes No N/A
DO YOU HAVE FORMAL/AUDITABLE PROCEDURES IN PLACE TO ADDRESS DESIGN APPROVALS AND CHANGES?
IS THERE A PROCEDURE TO COLLECT AND DISPOSE OF OBSOLETE DOCUMENTATION?
14
49%
17%
34%
Yes No N/A
34%
16%
50%
Yes No N/A
32%
18%
50%
Yes No N/A
36%
14%
50%
Yes No N/A
66%6%
28%
Yes No N/A
DO YOU HAVE A LIST OF APPROVED SUPPLIERS AND/OR FACTORIES?
DO YOU HAVE FORMAL/AUDITABLE PROCEDURES FOR SUPPLIER AND/OR FACTORY APPROVALS?
DO YOU HAVE FORMAL/AUDITABLE PROCEDURES TO REVIEW AND APPROVE PURCHASING DOCUMENTS FOR ACCURACY AND CORRECT SPECIFICATIONS BEFORE RELEASE?
DO YOU HAVE CORRECTIVE ACTION PROCEDURES FOR YOUR SUPPLIERS?
DO YOU HAVE FORMAL/AUDITABLE PROCEDURES FOR HANDLING, STORING, PACKAGING, AND DELIVERY OF MATERIALS?
Supplier Program
