quality with special reference to hotelscommunication on-progress

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

$$

$$

$

2

1 95

4

8

%

%

%

% $

8 %

3%

% $1

$

1

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 CERTIF IED

BY EARTHCHECK

2385UNDER-PRIVILEGED

YOUTH TRAINED FOR

EMPLOYABIL ITY

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

2

f r o m t h e m d ’s d e s k

Dear Readers,

The Indian Hotels Company has been proudly associated with the United Nations Global Compact

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

inflation and depreciation of the Indian Rupee. This also translated in to a moderate growth in 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.

In 2011-12, our inventory stood at 112 hotels with 13,629 rooms.

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,

commitment to quality and brand standards, accountability, transparency and business ethics.

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 building a high performance work culture. Through project 'Vidya', we aim

to achieve 100% computer literacy across IHCL, while through 'MiUniversity' – an online learning

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.

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 to

Company 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

training along with regular safety and security performance 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

cultural dimensions. We are also focussing on reducing our dependency on fossil fuels 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 and horticulture waste. We are conscious of bio-diversity preservation

in eco-sensitive areas where our hotels 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 towards

evolving 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 encouraging and benefitting the craftsmen who create it. We encourage 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. Till date, the Trust has reached out to over a thousand families across the 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.

Managing DirectorRAYMOND BICKSON

4

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 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,

Sri Lanka, Africa and the Middle East.

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:

TA J E X O T I C A (luxury leisure resort and spas) is found

in the most exotic and relaxing locales of the world.

The properties are defined by the privacy and intimacy

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

and authentic Indian spa sanctuaries.

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 in

paper, metal, wood, marble or iron.

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

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 concept

of living.

J I V A S PA S

TA J S A F A R I 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-tourism model.

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 Mumbai

and Chennai.

TA J S AT S

G I N G E R (smart basics ) is a revolutionary concept in

hospitality, 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

new category in the domestic hospitality 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

and inspire guests.

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

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

hotels and resorts that offers business and leisure

travellers a hotel designed keeping the modern 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, unwind and explore.

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 Group’ Company which comprises only 200 companies and the criteria

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 of

Corporate 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,

enabling innovative ideas and promoting indigenous 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=

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

all our employees.

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 :

GR O UP< 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

158 associates of our workforce have been with us for over 35 years, of which

4% have grown from entry level to top management in their career span.

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

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

environment conservation activities.

An example of one such initiative was 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 Taj

came 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 and

Mumbai hotels. Through this program, volunteers

The ' G I V E B A C K '

D I S C O V E R I N G T H E J OY O F ‘ G I V I N G B A C K ’

LUXURY INDIA VIVANTA HOTELS

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

attrition was 26.6%. Overall, in 2011-12, the attrition

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-hours on employee training in the year, of which

102,812 man-hours were on training on EHS

performance management and improvement and

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

and adherence to the same.

can spend a minimum of five hours a month in

supporting a social initiative of their preference.

Currently, there are 90 employees who have registered

to support causes of their choice from nine causes

outlined under this programme.

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 TA 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 engaged

Tata Consulting Engineers to audit our safety

systems and processes, so as to ensure the highest

level of focus is constantly maintained with

regards to safety. Our safety performance is

given alongside:

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 has

placed 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.

The Taj Mahal Hotel, New Delhi, organised 'Safety Week', for its associates to heighten their awareness about the safety

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

carried out at every property of our group of hotels to ensure safety of our guests and associates.

SAFETY

FIRST

10

Caring for and protecting the environment is an

essential part of our corporate 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

EarthCheck benchmarking and certification system as

an extension of our existing environmental initiatives.

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 responsibility to

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

certification process.

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

awareness amongst our associates and guests.

One of the wonderful experiences of walking along the

beach by

is that you get the unique opportunity to

spot Olive Ridley sea turtles nesting their eggs by the

sea. Every year from December to March, thousands of

these 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, the associates protect the eggs and

hatchlings, and release them safely into the sea with

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

V I VA N TA BY TA J – F I S H E R M A N ' S C OV E ,

C H E N N A I

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 the last cycle, the associates released close to a 1,000

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

along with the hotel guests have released 15,000 baby

sea turtles into the sea.

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

C E R T I F I C AT 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 and

other sustainability initiatives.

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

1,247,019 GJ 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 DIESELOIL

LIQUEFIEDPETROLEUM

GAS

PIPEDNATURAL

GAS

CHARCOAL CHAFFFUEL

PETROL

2009-10 2010-11 2011-12

tC

O/

RO

OM

NIG

HT

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

tC

O/

RO

OM

NIG

HT

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

D I R E C T E NE R GY C O NS UME D PE R R O O M NI GH T

2009-10 2010-11 2011-12

GJ

/R

OO

MN

IG

HT

0.00

0.10

0.30

0.40

0.50

I ND I R E C T E NE R GY C O NS UME D PE R R O O M NI GH T

2009-10 2010-11 2011-12

GJ

/R

OO

MN

IG

HT

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 C T GR E E NH O US E E MI S S I O N S PE R R O O M NI GH T I ND I R E C T GR E E N H O U S E E MI S S I O NS PE R R O O M NI GH T

0.20

0.3862 0.3326 0.31620.3826

TO

NS

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

13

W E H AV E U N D E R TA K E N A N U MBE R O F E N E R GY O PT I M I Z AT I O N

A N D E FF I C I E N C Y ME A SU RE S L I K 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 and

many generate their own solar energy. Solar energy is

used in many of our hotels, namely:

NEW DELHI:

MUMBAI:

BANGALORE:

JODHPUR:

HYDERABAD:

COCHIN:

CHENNAI:

AHMEDABAD, NASIK AND SURAT:

TAJ MAHAL, TAJ PALACE AND

VIVANTA BY TAJ, AMBASSADOR

WELLINGTON MEWS

TAJ WEST END

VIVANTA BY TAJ, HARI MAHAL

VIVANTA BY TAJ, BEGUMPET

VIVANTA BY TAJ, MALABAR

VIVANTA BY TAJ, FISHERMAN’S COVE

THE GATEWAY HOTELS

ALL THESE INITIATIVES 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.

14

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

MUNICIPALITY SEWERS2,447,957

RIVER/LAKE88,720

SEA163,388

LAND34,361

MUNICIPALITY SUPPLY3,200,097

BOREWELLS/GROUND WATER2,294,252

TANKERS1,116,023

RIVER/LAKE WATER1,824

HARVESTED RAINWATER13,246

W AT 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, recycling and rainwater harvesting.

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

/R

OO

MN

IG

HT

0.00

0.50

1.00

1.50

2.00

2.50

3.00

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

savings of INR 0.24 million annually.

M AT 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 and produces

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 from this

bio-gas plant is around 40 kgs per day which is used as

manure in our own garden. The manure produced is

of high quality and odourless.

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 registered

with 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.

16

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 TA 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 AT 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

immediate employability.

17

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

The team at The Gateway Hotel in Vadodara is driven

to 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. The candidates 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 for differently-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 making ends meet. Today, Rakesh is one of the key performers in the laundry department of the hotel. This is one

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

heart of the house at Taj Club House in Chennai.

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.

18

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 LT 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, an

age-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,

Madhukar’s 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

facilitate product development and ancillary services.

19

I M PA 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

in our hotels.

We support income generation programmes of

various 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 daily consumables.

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 for children in partnership with government and identified NGOs.

organizing performances, procuring guest gift items

and so on.

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 nutrition

programmes to train creche workers and mothers in

food diversification, cooking and personal hygiene

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

identified areas.

OUR HOTELS AND OFFICES ACROSS THE COUNTRY

HAVE SOURCED GOODS WORTH INR 200 MILLION

FROM CAUSE-BASED ORGANIZATIONS OVER THE

LAST 3 YEARS.

OUR PALACES, RESORTS AND HOTELS SUPPORT

OV E R 3 0 0 A R T I S A N S A N D C U LT U R E T R O U P E

MEMBERS, YEAR AFTER YEAR.

20

Bee-keeping or apiculture is defined as the

maintenance of honey-bee colonies in an organized

and 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

growth and in return, help the farmers improve their

crop yield and produce honey as a by-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 beneficiaries

receiving training and a total of nine active bee-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

entire village comes all the way to my backyard to have a

look at the bee-box. All of them are keen to participate

in the training so that they can keep their own boxes.”

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 is a boon for 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

ensuring a far healthier, smokeless environment.

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 ) LO N AVA 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. The Trust was keen to provide a long lasting

means of extending support to those affected families

in making them economically 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. This

will include hostel/residential facilities for 50 youth.

TA 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.

The focus was on long-term rehabilitation initiatives like support for micro-enterprise or to impart a vocational skill

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

education and medical assistance continues to be provided.

2 6 / 1 1 T E R R O R AT TAC K V I C T I M R E H A B I L I TAT 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 TAT 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/related skill training and endeavour to make these affected families self-sustainable.

22

“I am very happy here.I love working at The Gateway Hotel,Vadodara. I’ve 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 AT 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.

23

B U I L D I N G S U S TA 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

BengaluruChannarayapatnaMangalore

HyderabadVijayawada

JaitaranKishengarhLuniSawai MadhopurUdaipur

ChandkhedaKodinarMithapurVadodara

Guwahati

KolkataMirparaMonsudaTangra

BorivaliChinchwad, PuneKhultabadLonavalaMulundNashikOros SindhudurgSatara

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

24

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 :

PR I N C I P LE 2 :

Businesses should support and respect the

protection of internationally proclaimed human rights.

Make sure that they are not complicit in

human rights abuses.

Corporate Governance


L A B O U R


PR I N C I P LE 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 and

compulsory labour.

The effective abolition of child labour .

The elimination of discrimination in

respect of employment and occupation.

Employee Welfare

Employee Welfare

Employee Welfare

Employee Welfare

E N V I R O N M E N T


PR I N C I P LE 8 :


Businesses should support a precautionary

approach to environmental challenges.

Undertake initiatives to promote greater

environmental responsibility.

Encourage the development and diffusion

of environmentally friendly 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 corruption

in all its forms, including extortion and bribery.


25

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 TAT E M E N T F R O M M D 1.1, 1.2

C O M PA 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 – Aspects of scale are addressed in relevant sections of the report

3.2 – Our previous report was for the financial year 2010-11

3.3 – Reporting cycle is annual

3.9 – Assumptions made, if any, are mentioned in relevant sections of the report

3.10 – Restatements are explained wherever applicable

3.11, EN27, SO10 – Not applicable

3.5, 4.13 – 4.17, SO5 – Please refer IHCL Corporate Sustainability Report 2010-11 for further

information.

S T R AT E G Y A N D

R O A D M A P

EC1 – EC4 - Information is available in our Annual Report 2011-12.

EC7 – While we do not have a specific policy on local hiring, we do prefer to employ persons from the

communities in which we operate

C O R P O R AT 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

continue to work in our organization

LA4 – All our employees have the freedom of association and collective bargaining

LA5 – We follow all laws of the land regarding notice periods for significant operational changes

LA14 – We are an equal opportunity employer, and everything else being equal, the ratio of salaries

of men to women is 1:1

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

human rights

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

our hotels and suppliers are mandated to follow the TCoC which includes clauses on human 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 screened to ensure that no child is employed in our

premises

HR4 – There have been no incidents of discrimination reported in the reporting year

HR11 – There have been no grievances related to human rights filed in the reporting year

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 YD 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

potential or actual negative impact on local communities due to our presence

SO3 – All our employees are trained on the TCoC, which includes clauses on anti-corruption

SO4 – No incidents of corruption were reported in 2011-12

PR1 – Considering that we are in the hospitality industry, we continuously monitor the safety and air

quality of our hotels to ensure the safety of our guests and employees

PR3 – We follow all laws of the land regarding service information required

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

marketing communications

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

indicators are not applicable to us

EN17 – Partially reported

EN19 – We used 392 kgs of ODS in the year for HVAC purposes

EN23 – There were no significant spills (spills greater than 159 litres or one barrel) in the year

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

reporting year for any non-compliance with laws and 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

26

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).

The scope of assurance covers data and information on IHCL's approach towards and performance on upholding the

ten principles of the UNGC presented in the Report for the financial year 2011-2012.

We conducted 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 the assurance client, including not being involved in writing the Report.

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 compliance with the Code and to prevent conflicts regarding 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 to provide assurance over any prior year data or information presented in the Report.

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

inconsistent with the findings of our work as described below:

IHCL is governed by the Tata Code of Conduct (TCoC). The TCoC provides the guidelines by which IHCL conducts

its 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

the three principles of the UNGC in the area of environment management

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

ten principles of the UNGC

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 detailed GRI G3.1 content index has been incorporated at the end of this report.

WHAT WAS INCLUDED IN THE SCOPE OF OUR ASSURANCE ENGAGEMENT?

WHICH ASSURANCE STANDARDS DID WE USE?

SPECIFIC LIMITATIONS TO OUR WORK INCLUDED THE FOLLOWING:

WHAT ARE OUR CONCLUSIONS?

•

•

•

•

I ND E PE ND E N T A SSU RA N C E S TAT E ME N T O N

I ND I A N H OT E LS C O MPA N Y L I M I T E D ' S 2 0 1 1 - 1 2 C O MMU N I CAT I O N O N PRO GRE SS

27

WHAT DID WE DO TO REACH OUR CONCLUSIONS?

RESPONSIBIL IT IES

•

•

•

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-

gathering activities which are further explained below:

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

selected performance data presented in the Report. We also tested the reliability of underlying data and information

for the selected performance data within the scope of our assurance for the sites visited

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

our findings

Conducting visits to domestic hotels and conference calls with international hotels as follows:

Agra The Gateway Hotel, Fatehabad Road

Bangalore Taj West End, The Gateway Hotel - Residency Road, Vivanta by Taj - M G Road

Chennai Taj Club House, Taj Coromandel, Vivanta by Taj Fisherman's Cove, Vivanta by Taj - Connemara

Mumbai Corporate Office - IHCL, Corporate Office - Ginger, Taj Mahal Palace, Taj Lands End, TajSATS,

Taj Wellington Mews, Vivanta by Taj - President

New Delhi - Ginger - Vivek Vihar, Taj Mahal, Taj Palace Hotel, TajSATS, Vivanta by Taj - Ambassador

Malaysia Rebak Island Resort, Langkawi

Maldives Vivanta by Taj - Coral Reef

South Africa Taj Cape Town

USA 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 team including specialists in ISAE 3000, stakeholder engagement, auditing environmental, social

and financial information and with experience in similar engagements in the hospitality sector.

This report is made solely to IHCL in accordance with the terms of our engagement. Our work has been undertaken so

that we might state to IHCL those matters we have been engaged to state in this report and for no other purpose. To the

fullest extent permitted by law, we do not accept or assume responsibility to anyone other than IHCL for our work, for

this report, or for the conclusions we have reached.

Arvind Sharma 29th August, 2012

Director

KPMG, India

SITE VISITS:

CONFERENCE CALLS:

-

-

- -

-

-

-

-

-

28

T H E G AT E W AY 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 TA 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

29

V I V A N TA 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 TA J - B E G U M P E T, H Y D E R A B A D

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

V I V A N TA 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

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 fulfilled

our commitments to the ten principles of the United Nations

Global Compact in the year 2011-12.

We have also mapped this report to the

G3.1 guidelines.

At The Indian Hotels Company,

Global Reporting Initiative

(GRI)

we nurture the culture of going

beyond the numbers.

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 makes Taj what it is today and what it strives to be.

C O V E R T H E M E

R E G I S T E R E D O F F I C E :

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]

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 Please refer our Annual Report 2011-12 for further information (page 14,26,27). It can be accessed here:

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, and joint ventures.

Fully Information is available at our website at:

http://www.tajhotels.com/About-Taj/Investor-Relations/corporate information.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 majoroperations or that are specifically relevant to the sustainability issues covered in the report.

Fully Please refer our Annual Report 2011-12 for further information (page 50). It can be accessed here:


2.6 Nature of ownership and legal form. Fully Please refer our Annual Report 2011-12 for further information (page 47). It can be accessed here:


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,or ownership.

Fully Please refer our Annual Report 2011-12 for further information (page 2,4,5,11,12,15-18). It can be accessed here:


2.10 Awards received in the reporting period. Fully Please refer our Annual Report 2011-12 for further information (page 33,34,35). It can be accessed here:


Further information is also available at our website at: 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 Date of most recent previous report (if any). Fully Our previous report was published for the year 2010-11. It can be accessed 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 Process for defining report content. Fully Please refer IHCL Corporate Sustainability Report 2010-11 (pages 30 - 31). It can be access here:


3.6 Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures,suppliers). See GRI Boundary Protocol for further guidance.

Fully Page 4, 5

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

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 otherinformation in the report. Explain any decisions not to apply, or to substantially diverge from, theGRI Indicator Protocols.

Fully Relevant explanations have been provided in the individual section where necessary

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, andthe reasons for such re-statement (e.g.,mergers/ acquisitions, change of base years/periods, natureof business, measurement methods).

Fully Re-statements of information, if any, have been reported in the relevant sections

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurementmethods applied in the report.

Fully Hotels that have opened in 2011-12 in the Luxury, Safari, Vivanta, Gateway and Ginger brands have been includedin the report scope. Further details about the same are available in our Annual Report accessible here (page 15,16,17):


3.12 Table identifying the location of the Standard Disclosures in the report. Fully Page 25

3.13 Policy and current practice with regard to seeking external assurance for the report. Fully Page 26, 27



4. Governance, Commitments and Engagement

4.1 Governance structure of the organization, including committees under the highest governancebody responsible for specific tasks, such as setting strategy or organizational oversight.

Fully Please refer our Annual Report 2011-12 for further information (page 36-39). It can be accessed here:



4.2 Indicate whether the Chair of the highest governance body is also an executive officer. Fully Page 6

4.3 For organizations that have a unitary board structure, state the number and gender of members ofthe highest governance body that are independent and/or non-executive members.

Fully Page 6

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to thehighest governance body.

Fully Please refer our Annual Report 2011-12 for further information (page 38, 39). It can be accessed here:


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



4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. Fully Please refer our Annual Report 2011-12 for further information (page 43 - whistle blower policy). It can beaccessed here:


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 andother indicators of diversity.



4.8 Internally developed statements of mission or values, codes of conduct, and principles relevantto economic, environmental, and social performance and the status of their implementation.

Fully We are governed by the Tata Code of Conduct in all our dealings. The link to the same is:

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

4.9 Procedures of the highest governance body for overseeing the organization's identification andmanagement of economic, environmental, and social performance, including relevant risks andopportunities, and adherence or compliance with internationally agreed standards, codes ofconduct, and principles.

Fully Please refer our Annual Report 2011-12 for further information (page 36,37). It can be accessed here:


Information is also available in our 2010-11 Corporate Sustainability Report (page 16). It can be accessed here:


4.10 Processes for evaluating the highest governance body's own performance, particularly withrespect to economic, environmental, and social performance.



4.12 Externally developed economic, environmental, and social charters, principles, or other initiativestowhich theorganizationsubscribes orendorses.

Fully We subscribe to the United Nations Global Compact

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 routinemembership dues; or *Views membership as 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, conventionsnetworks and so on. Further details are provided under indicator SO5

4.14 List of stakeholder groups engaged by the organization. Fully Please refer IHCL Corporate Sustainability Report 2010-11 (page 27-29). It can be accessed here:


4.15 Basis for identification and selection of stakeholders with whom to engage. Fully Please refer IHCL Corporate Sustainability Report 2010-11 (page 27-29). It can be accessed here:


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

Fully Please refer IHCL Corporate Sustainability Report 2010-11 (page 27-29). It can be accessed here:


4.17 Key topics and concerns that have been raised through stakeholder engagement, and how theorganization has responded to those key topics and concerns, including through its reporting.

Fully Please refer IHCL Corporate Sustainability Report 2010-11 (page 27-29). It can be accessed here:


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

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

DMA EC Disclosure on Management Approach ECPlease refer IHCL Corporate Sustainability Report 2010-11 (page 27-29).It can be accessed here:


Aspects Economic performance

Market presence

Indirect economic impacts

DMA EN Disclosure on Management Approach EN

Materials

Energy

Water

Bio-diversity

Emissions, effluents and waste

Products and services

Compliance

Transport

Overall

Page 10-15

DMA LA Disclosure on Management Approach LA

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 Disclosure on Management Approach HR

Investment and procurement practices

Non-discrimination

Freedom of association and collective bargaining

Child labor

Prevention of forced and compulsory labor

Security practices

Indigenous rights

Assessment

Remediation

Page 6-9

Aspects

DMA SO Disclosure on Management Approach SO

Local communities

Corruption

Public policy

Anti-competitive behavior

Compliance

Page 16-23

Aspects

DMA PR Disclosure on Management Approach PR

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 Direct economic value generated and distributed, including revenues, operating costs, employeecompensation, donations and other community investments, retained earnings, and paymentsto capital providers and governments.



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

Fully Page 10 - 15

EC3 Coverage of the organization's defined benefit plan obligations. Fully Please refer our Annual Report 2011-12 for further information (page 144,145). It can be accessed here:


EC4 Significant financial assistance received from government. Fully We have not received any significant financial assistance from the government

MARKET PRESENCE

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

Fully We abide by all national regulations of wage payments and pay equal to or above minimum wagerequirements at all our plants. The entry level wage for males and females is equal

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



EC7 Procedures for local hiring and proportion of senior management hired fromthe local community at significant locations of operation.

Fully While we do not have a specific policy on local hiring, we do prefer to employ persons from thecommunities in which we operate

INDIRECT ECONOMIC IMPACTS

EC8 Development and impact of infrastructure investments and services provided primarily forpublic benefit through commercial, in-kind, or pro bono engagement.

Fully Page 16-23

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

Not

Environmental

EN1 Materials used by weight or volume. Fully Being a service industry, we do not have a final product that we produce. Hence, these indicators are notapplicable to us

EN2 Percentage of materials used that are recycled input materials. Fully Being a service industry, we do not have a final product that we produce. Hence, these indicators are notapplicable to us

MATERIALS

ENERGY

EN3 Direct energy consumption by primary energy source. Fully Page 11

EN4 Indirect energy consumption by primary source. Fully Page 12

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

EN6 Initiatives to provide energy-efficient or renewable energy based products and services, andreductions in energy requirements as a result of these initiatives.

Fully We are a service industry and hence, this indicator is not applicable to us

EN7 Initiatives to reduce indirect energy consumption and reductions achieved. Fully Page 13

WATER

EN8 Total water withdrawal by source. Fully Page 14

EN9 Water sources significantly affected by withdrawal of water. Fully No water sources are significantly affected by our withdrawals

EN10 Percentage and total volume of water recycled and reused. Fully 791628 KL of water was recycled in the year

BIO-DIVERSITY

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas ofhigh bio-diversity value outside protected areas.

Fully Few of our hotels are adjacent to areas of high bio-diversity value. We are establishing systems to monitorour impacts and intend to report on the same in the 2013-14 report

EN12 Description of significant impacts of activities, products, and services on bio-diversity inprotected areas and areas of high bio-diversity value outside protected areas.

Fully Few of our hotels are adjacent to areas of high bio-diversity value. We are establising systems to monitorour impacts and intend to report on the same in the 2013-14 report. Details of some initiatives takenhave been mentioned in our previous report accessible at (page 61):


EN13 Habitats protected or restored. Not

EN14 Strategies, current actions, and future plans for managing impacts on bio-diversity. Partially While we do not have a specific policy for bio-diversity, we do undertake initiatives to promote the sameat all our locations of operations. Details of these initiatives have been mentioned in our previousreport accessible at (page 61):


EN15 Number of IUCN Red List species and national conservation list species with habitats in areasaffected by operations, by level of extinction risk.

Not

EMISSIONS, EFFLUENTS AND WASTE

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

EN17 Other relevant indirect greenhouse gas emissions by weight. Fully We are enhancing our capacities to monitor other relevant GHG emissions. Other scope 3 GHGemissions are not reported for 2011-12

EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. Fully Page 13

EN19 Emissions of ozone-depleting 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 type 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 Total number and volume of significant spills. Fully There were no significant spills (spills greater than 159 litres-one barrel in a single occurrence of anincident) as a result of our operations in the reporting period

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 wasteshipped internationally.

Fully We do not import or export any waste deemed hazardous under the terms of the Basel Convention AnnexI, II, III, and VIII

EN25 Identity, size, protected status, and bio-diversity value of water bodies and related habitatssignificantly affected by the reporting organization's discharges of water and runoff.

Fully No water body or habitat is significantly affected by our water discharge or runoff

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

Fully Page 10-15

EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Fully We are a service industry and hence, this indicator is not applicable to us

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Fully There were no monetary or non-monetary sanctions levied on us in the reporting year for any non-compliance with laws and regulations

COMPLIANCE

PRODUCTS AND SERVICES


To bereported in

EN29 Significant environmental impacts of transporting products and other goods and materials usedfor the organization's operations, and transporting members of the workforce.

Not The most significant environmental impact of transporting products and materials, and members of theworkforce is the associated air emissions. We are enhancing our capacities to capture this data and willreport on the same in the future

TRANSPORT

EMPLOYMENT

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

Fully Page 7

OVERALL

EN30 Total environmental protection expenditures and investments by type. Fully This year, we spent INR 90.97 million on environment protection

Social: Labor Practices and Decent Work

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, andregion.

Fully Page 8

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



LA15 Return to work and retention rates after parental leave, by gender. Partially In 2010-11, 340 employees availed parental leave of which 279 returned towork, and 143 continue to work in our organization

LABOUR/MANAGEMENT RELATIONS

LA4 Percentage of employees covered by collective bargaining agreements. Fully 100% of our non-management employees have the freedom of collective bargaining

LA5 Minimum notice period(s) regarding significant operational changes, including whether it isspecified in collective agreements.

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

OCCUPATIONAL HEALTH AND SAFETY

LA6 Percentage of total workforce represented in formal joint management-worker health and safetycommittees that help monitor and advise on occupational health and safety programs.

Not

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-relatedfatalities by region and by gender.

Fully Page 9

LA8 Education, training, counseling, prevention, and risk-control programs in place to assistworkforce members, their families, or community members regarding serious diseases.

Fully Page 9

LA9 Health and safety topics covered in formal agreements with trade unions. Not


To bereported in

TRAINING AND EDUCATION

LA10 Average hours of training per year per employee by gender, and by employee category. Fully Page 8

LA11 Programs for skills management and lifelong learning that support the continued employabilityof employees and assist them in managing career endings.

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 theirdefined job descriptions and Key Result Areas associated with them

DIVERSITY AND EQUAL OPPORTUNITY

LA13 Fully Please refer our Annual Report 2011-12 for further information (page 2). It can be accessed here:


EQUAL REMUNERATION FOR WOMEN AND MEN

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

Fully Everything else being equal, the ratio of basic salary of men to women is 1:1

Social: Human Rights

INVESTMENT AND PROCUREMENT PRACTICES

HR1 Percentage and total number of significant investment agreements and contracts that includeclauses incorporating human rights concerns, or that have undergone human rights screening.

Fully All our investment agreements and contracts mandate adherence to the TCoC, which includes humanrights clauses

HR2 Percentage of significant suppliers, contractors and other business partners that have undergonehuman rights screening, and actions taken.

Fully While none of our operations have been screened for human rights assessments, all our hotels andsuppliers are mandated to follow the TCoC which includes clauses on human rights

HR3 Total hours of employee training on policies and procedures concerning aspects of human rightsthat are relevant to operations, including the percentage of employees trained.

Fully Page 9

NON-DISCRIMINATION

HR4 Total number of incidents of discrimination and corrective actions taken. Fully Tata Code of Conduct governs the capture and addressal of concerns in this area. All valid concerns areassessed and closed in stipulated time frames. A total of 33 concerns were raised and closed in 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 tosupport these rights.

Fully All of our operations provide the freedom of collective bargaining to our non management employees

CHILD LABOR

HR6 Operations and significant suppliers identified as having significant risk for incidents of childlabor, and measures taken to contribute to the effective abolition of child labor.

Fully All our hotels prohibit the employment of child labour and forced labour. All employees, includingcontract employees, are screened to ensure that no child is employed in our premises

FORCED AND COMPULSORY LABOUR

HR7 Operations and significant suppliers identified as having significant risk for incidents of forcedor compulsory labor, and measures to contribute to the elimination of all forms of forced orcompulsory labor.

Fully All our hotels prohibit the employment of child labour and forced labour. All employees, includingcontract employees, are screened to ensure that no forced labour is employed in our premises

SECURITY PRACTICES

HR8 Percentage of security personnel trained in the organization's policies or proceduresconcerning aspects of human rights that are relevant to operations.

Not

INDIGENOUS RIGHTS

HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Not

ASSESSMENT

HR10 Percentage and total number of operations that have been subject to human rights reviewsand/or impact assessments.

Fully All of our operations are subject to reviews to ensure adherence to TCoC, which includes clauses onhuman rights

REMEDIATION

HR11 Number of grievances related to human rights filed, addressed and resolved through formalgrievance mechanisms.

Fully There were no cases filed related to human rights violations this year


To bereported in

Composition of governance bodies and breakdown of employees per employee categoryaccording to gender, age group, minority group membership, and other indicators of diversity.

Social: Society


To bereported in

LOCAL COMMUNITIES

SO1 Percentage of operations with implemented local community engagement, impact assessments,and development programs.

Fully All of our hotels, except the properties set up in 2011-12,have implemented local communityengagements. The new properties are in the process of establishing community engagement programsand will be reporting on the same in the next financial year.

SO9 Operations with significant potential or actual negative impacts on local communities. Fully During our community engagement programs and assessments, we have not witnessed any negativeimpacts on the community due to our presence in the area

SO10 Prevention and mitigation measures implemented in operations with significant potential oractual negative impacts on local communities.

Fully Not applicable

CORRUPTION

SO2 Percentage and total number of business units analyzed for risks related to corruption. Fully 100% of our business units are analysed for risks related to corruption as per our corporategovernance norms

SO3 Percentage of employees trained in organization's anti-corruption policies and procedures. Fully All our employees are trained on the TCoC, which includes clauses on anti-corruption

SO4 Actions taken in response to incidents of corruption. Fully Actions are taken in response to corruption as per the Tata Code of Conduct. There have been noincidents of corruption this year.

PUBLIC POLICY

SO5 Public policy positions and participation in public policy development andlobbying.

Fully We contribute to policy development through various bodies of which we are members:

• Indian Merchants Chamber

• Bombay Chamber of Commerce and Industry

• CII

• The Indian Society of Advertisers

• All India Association of Industries

and many more.

SO6 Total value of financial and in-kind contributions to political parties,politicians, and related institutions by country.

Fully We have not made any financial contribution to any political party or politician

ANTI-COMPETITIVE BEHAVIOR

SO7 Total number of legal actions for anti-competitive behavior, anti-trust, andmonopoly practices and their outcomes.

Fully There have been no legal actions against us for anti-competitive behaviour, anti-trust, and monopolypractices

COMPLIANCE

SO8 Monetary value of significant fines and total number of non-monetarysanctions for non-compliance with laws and regulations.

Fully There were no fines imposed on us for any non compliance with laws and regulations in the reportingperiod

CUSTOMER HEALTH AND SAFETY

Social: Product Responsibility

PR1 Life cycle stages in which health and safety impacts of products and services are assessed forimprovement, and percentage of significant products and services categories subject to suchprocedures.

Partially Considering that we are in the hospitality industry, we continuously monitor the safety and air qualityof our hotels to ensure the safety of our guests and employees. All our hotels conform to indoor airquality standards as required by the law.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerninghealth and safety impacts of products and services during their life cycle, by type of outcomes.

Fully There have been no incidents of non-compliance with regulations and voluntary codes concerninghealth and safety impacts of products during their life cycle

PRODUCT AND SERVICE LABELLING

PR3 Type of product and service information required by procedures, and percentage of significantproducts and services subject to such information requirements.

Fully We follow all laws of the land regarding service information required

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerningproduct and service information and labeling, by type of outcomes.

Fully There have been no incidents of non-compliance with regulations and voluntary codes concerningproduct and service information and labelling

PR5 Practices related to customer satisfaction, including results of surveys measuring customersatisfaction.

Not

MARKETING COMMUNICATIONS

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketingcommunications, including advertising, promotion, and sponsorship.

Fully We adhere to all laws, including those related to marketing, communications and advertising, asdefined by Advertising Standards Council of India. The TCoC governs our advertising andmarketing communications, and ensures our compliance to all related laws

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerningmarketing communications, including advertising, promotion, and sponsorship by typeof outcomes.

Fully There have been no incidents of non-compliance with regulations and voluntary codes concerningmarketing communications, including advertising, promotion, and sponsorship

CUSTOMER PRIVACY

PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses ofcustomer data.

Not

COMPLIANCE

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerningthe provision and use of products and services.

Fully There have been no fines imposed on us for non compliance with laws regarding use of our products


To bereported in

quality with special reference to hotelscommunication on-progress

Education

n h o t e

e o f c o n t e n t

i t e d

t i o n o n p r o g

b e y o n d t h e n

b e r s c o

h i g h

i g h t s reduction