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H World Group's 2024 Sustainability Report: A Commitment to the Future

H World Group Limited (NASDAQ: HTHT) recently released its highly anticipated 2024 Sustainability Report, highlighting the company's continued dedication to fostering sustainable development through innovative practices and environmental initiatives.
This report, recognized by the China Association for Public Companies as one of the "Outstanding ESG Practice Cases of 2024," reflects H World’s ongoing efforts to enhance its Environmental, Social, and Governance (ESG) practices across the industry.

Key Highlights from the Sustainability Report

The report delves into the company’s commitments, strategies, and successes across six critical dimensions: corporate governance, service excellence, employee well-being, industry advancement, environmental responsibility, and social contribution.

1. Advancing a Greener Future with Innovation

H World is paving the way for a more sustainable future through three main pillars: green buildings, green operations, and green services.

• - Green Buildings: The company has implemented flagship products like Hanting 3.5, JI Hotel 5.0, and Hi Inn 2.0, which utilize modular construction techniques to reduce environmental impact while ensuring superior quality and faster construction timelines.
• - Green Operations: Environmental criteria are now a cornerstone of supplier partnerships, promoting initiatives that utilize eco-friendly materials, improve linen management, and enhance sustainable laundry systems, significantly reducing resource consumption.
• - Green Services: In China, the "Green Living" program encouraged 872,000 guests to forgo towel replacement during their stays, resulting in a dramatic reduction of over 7.88 million pieces of towel laundry. This initiative not only saved more than 24,000 tons of water and 680 MWh of electricity but also contributed to avoiding 676 tons of carbon emissions through a partnership with Alipay, showcasing the potential of fintech collaboration in hospitality.

2. Empowering a Diverse Workforce

H World takes pride in championing female leadership within the organization, boasting 28,502 full-time employees by 2024, with women representing 62.4% of the workforce. Notably, 59.6% of hotel general managers in China are women, and female representation on the board stands at 42.9%. To further empower future talent, H World has partnered with over 130 universities across more than 100 cities, creating over 2,600 annual internship positions. Their commitment to education was recognized by the Ministry of Education in China, naming it an "Outstanding Industry-Academia Cooperation Case."

3. Community Contributions and Public Welfare Initiatives

H World strongly believes in corporate social responsibility, actively undertaking initiatives that positively impact communities. Following severe floods in Guilin, Guangxi in June 2024, H World opened its hotel lobbies and restaurants to provide shelter, hot water, and charging stations for affected residents. The company also supports rural revitalization with an integrated "Hotel + Rural Economy" model, which includes long-standing partnerships to procure local goods and create eco-farm demonstration sites.
A noteworthy initiative launched in 2016, the "Scholarly HanTing" program, has expanded its educational outreach to support rural students and provide quality educational resources, addressing the disparity in rural education.

4. Governance as a Foundation for Success

Effective governance remains a vital part of H World’s sustainability framework. The establishment of a dedicated Security Assurance Committee, overseen by the CEO, ensures enhanced guest safety measures and establishes a strong governance structure. Under this initiative, H World enacted 16 internal policies, including an Information Security Management Framework. To maintain high standards among suppliers, the company collaborated with external auditing agencies, conducting 972 audits in 2024, ensuring high compliance rates among strategic suppliers.

Conclusion

H World Group's 2024 Sustainability Report not only acknowledges the achievements made in sustainable practices and community engagement but also sets a benchmark for future endeavors in eco-friendly operations and social responsibility. By prioritizing innovation and sustainability, H World Group is truly committed to leading the hospitality industry towards a cleaner, greener future.
For those interested, the full report is available for download at H World Group's 2024 Sustainability Report.