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HMSHost Sustainability Overview

AAAE Airports Going Green Conference

November 15, 2010

Linda DunnVP Supply Chain & AnalysisHMSHost

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• HMSHost Introduction

• Scope Of Sustainability

• HMSHost Sustainability Process & Areas Of Focus

• Key Initiatives

• Chicago O’Hare Example

• What’s Next

Topics

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• A recognized industry leader who creates innovative dining and shopping at airports and on motorways worldwide.

• Operates in nearly 100 airports around the globe and at over 80 travel plazas in North America.

• Holds an unmatched portfolio of over 250 favorite local and locally inspired, regional, international and proprietary brands.

HMSHost Snapshot

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What’s Sustainability?

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As Broad Or Narrow As You Want To Define It

Development

ResponsibleForestry

Reduction Of Ozone Depleting

Substances

NutritionalWell Being

ReductionOf Waste

ReducedEconomicSubsidies

LocalProducts

ReducedGreenhouse

Gases

Non-causticChemicals

SmallerCarbon

Footprint

RenewableEnergy

Certificates

ReductionOf Hazardous

Waste

Recycling Reduction OfNon-hazardous

Waste

Fair AndResponsibly

SourcedProducts

RenewableEnergy

FightingPoverty

FoodSafety

FoodSecurityReuse

Composting ProtectingBiodiverseHabitats

WaterConservation

OrganicProducts

ReclaimedMaterials

EmployeeSafety

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Sustainability Is The Next Great Innovation Arena

SustainabilityInitiatives

Tech

nolo

gyR

egulation

Community Needs

Social Values

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HMSHost Sustainability Process& Areas Of Focus

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HMSHost Sustainability Platform Process

Sustainability Platform

Strategic Planning1.

Areas Of Focus2.

Corporate & Operations Driven Initiatives3.

Measurement4.

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“Making the traveler’s day better”

• Creating a fresh, engaging sense of place at each airport with dynamic national, authentic local, and innovative proprietary restaurants and retail shops

• Providing unsurpassed customer service with genuine hospitality

• Reassuring guests that the company providing their dining and retail choices has a sustainable, responsible foundation

Integration With HMSHost Mission

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And also… Making the day better for the futuregeneration of travelers through focusing on:

• Reducing our environmental impact

• Providing food and beverage options that address nutritional wellness

• Partnering with the communities we serve to build a better future

Areas Of Focus

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Our Sustainability Mission

Engage all stakeholders to join the journey to become more sustainable even if their actions begin with smaller steps.

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Opportunity Assessment Drives Initiatives

Offerings Operations Partnerships

- Products & Supplies

- Suppliers

- Distributors &Logistics

- Policies &Procedures

- Communications

- Authorities

- Brands

- CharitableOrganizations

- Communities

- Communications

- Waste

- Processes/Procedures

- Conservation

- Education/Training

- Events

Design &Construction

- Materials

-Suppliers

-Logistics

-Equipment

-Building Practices

-Design

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HMSHost Key Initiatives

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Design & Construction Initiatives

• Energy Efficient Equipment & LightingLED LightingCompact Fluorescent LightingEnergy Saving Kitchen EquipmentNatural Lighting

• Recycled/Reclaimed MaterialsCounter TopsGlassExisting Materials In The SpaceReclaimed lumber

• More Earth-Friendly MaterialsSoy Stained ConcreteSustainably Harvested Wood

Our designing and building practices are significantly altered with the increased focus on sustainability.

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State Of The Art Welcome Center

Built Delaware Welcome Center to achieve Silver LEED (Leadership in Energy and Environmental Design) Certification.

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State Of The Art Welcome Center

• Green Building MaterialsRecycled content (ceiling tiles, countertops, concrete, steel, asphalt)Locally manufactured where possible (within 500 miles of the site).Half of the wood certified by the Forest Stewardship Council

• Daylight/Lighting ControlDesigned with Daylight HarvestingEquipped with a lighting control system & motion detectors in restrooms

• Hazardous Spill and Bio-Retention BasinAbsorbs and removes pollutants from the water

• Indoor Air QualityInterior products have no volatile organic compounds (VOCs)

• Geothermal Heat Pump (each well is 300 feet deep)

• Recycling Systems and Waste ManagementAbout 75 percent of the construction waste was recycled or reused

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State Of The Art Welcome Center

• Fifty Anti-idling Stations

• Electric Vehicle Charging Stations - Infrastructure for car electrification accommodated within the site design

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• HMSHost F&B and Retail bags have an additive to make them degradable

• HMSHost restaurant menus printed with 20% recycled paper

• Added contract for cooking oil recycling, testing closed oil technology systems & investigating composting technologies and equipment

• In Spring of 2011, HMSHost will move to a spring water bottle that uses a minimum 10% of recycled PET

Offerings Initiatives

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Offerings Initiatives – Reducing Paper Products

• Implemented SCA Tork Xpressnap25% reduction in napkin usageGreen Seal certified (100% recycled, non-bleached)Based on purchases, our environmental savings is the equivalent of 7.4 M gallons of water saved and over 18,000 trees

• Reduced Thickness Of Back Of House Paper

• Moving Ahead With A State Of the Art Hand Dryer To Replace Towels In Bathrooms

Slated for Q1 2011 at over 80 locations GreenSpec approved equipment – qualifies for LEED points

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Offerings Initiatives

• Lower Sodium Options (e.g., Olive Oil & Balsamic Vinegar Decanter Set)

• Transfat Free Cooking Oil

• More Vegetarian Options

• Better For You Snack Options

HMSHost Culinary R&D Group is focused on balanced nutritional offerings and special diet needs.

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Offerings – Product & Branded Partners

• California Pizza KitchenCommitted to reducing energy and carbon emissionsWorked with HMSHost to reduce unnecessary waste

• Starbucks (Starbucks will share initiatives today)Shared Planet PlatformWorked with HMSHost on more sustainable building

• Coca-ColaLive Positively PlatformWorked with HMSHost on USO campaign

Sustainability commitments of our dining & shopping partners are important and partnership opportunities are explored.

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Operations Initiatives – ReBook Program

Our Retail Bookstores collect and recycle books.

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Operations Initiatives – AwarenessOver 70 in-store television displays in our Retail stores help us drive consumer awareness of sustainability.

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Operations Initiatives - Coffee Grounds

Over half of HMSHost locations with Starbucks recycle coffee grounds (airport grounds, nurseries, wineries, etc…)

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Operations Initiatives

• HMSHost benchmarks our units regarding sustainable initiatives & implemented an operation conservation checklist

• Recycled items have a big impact (annual figures)

Cooking Oil - Nearly 1.5 M gallons of cooking oil

Cardboard - Over three quarters of our locations recycle 5 M pounds of cardboard

Milk jugs – Over 1 M milk jugs

Bottles/Cans – Over 6 M bottles

Printer cartridges – Nearly 50 K cartridges

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Partnerships – Feeding America Local Foodbanks

Our Trash Bins May Not Be As Full As They Used to Be…Fortunately Many Members of Our Community Are!!!

1 in 4 children lives in afood-insecure household

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Partnerships – Local

HMSHost participates in local clean up efforts…

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Partnerships – Local

…and local and national initiatives and events.

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HMSHost Chicago O’Hare Example

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Chicago Example – Wicker Park

Solid Surface Countertops with Recycled Material

Utilize Natural Light

Reuse ExistingTerrazzo Flooring

LED Signage

LED LightingLow VOC Paint

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Chicago Example – Tortas Frontera

Solid Surface Countertops with Recycled Material

Low VOC Paint

Reclaimed Oak Barn Wood

LED Signage & Lighting

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Chicago Example – Recycling/Reuse

Our recycling efforts at Chicago O’Hare make a large impact and continue to grow:

HMSHost installed a specially designed container to allow for recycling of cooking oil – we recycle over 100,000 gallons per year

We reuse over 20,000 pallets per year at the branch

The cardboard we store and recycle at the branch amounts to over 200,000 pounds of cardboard per year. Recycling it insteadof putting it in landfills

saves over 900 cubic yards of landfill space and the equivalent of emissions from the consumption of 38 k gallons of gasoline.

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Chicago Example – Sustainable Partners

Starbucks – Coffee Concept Partner (Starbucks will share initiatives today) Local initiatives Example of joint focus - new sustainable build store HMSHost constructed in baggage claim

Rick Bayless Frontera – Local Chef Partner Founder of the Frontera Farmer Foundation, an organization thatsupports small local farmersActive in Share Our Strength, a hunger advocacy organizationExample of joint focus – sustainable build elements and offerings

Testa Produce – Produce Partner New warehouse will be first LEED Platinum food distribution facility in the U.S. and includes its own wind turbine, biodiesel distribution fleet, partially vegetated roof, and solar-powered water heating and focus on local products.Example of joint focus – purchase local produce like Portabello mushrooms, button mushrooms, Red B and Yukon Gold Potatoes.

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Chicago Example – Ciao Gourmet Market

Our proprietary Ciao market concept fully incorporates a sustainability platform.

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Chicago Example – Ciao Gourmet Market

Fair Trade/ Give Back Products

Better For You Products

Gluten Free Products

Organic Products

Vegan Products

Kosher Products

Re-useable Shopping Bag

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Chicago Case Example – Bringing It LocalHMSHost is working with Future Growing on an at airport localproduce concept.

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Chicago Case Example – Community TiesBelow is the HMSHost team helping to raise money for Special Olympics Illinois and we also were happy to donate food and beverages for the worthy event.

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What’s Next

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• Increased suppliers and viable options to become more sustainable

• More impartial third party data and organizations to assist restaurateurs and retailers in their sustainability efforts

• Progress made on cross contamination and space constraint issues

• Greater sharing of best practices and collaboration (e.g., SAM and this conference)

• Increased emphasis by all stakeholders and significant progress by restaurant and retail tenants over time

Innovation…Innovation…Innovation

Future Developments...

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