Playa: Playa Hotels & Resorts N : ESG & Sustainability Report (8.3 MB)

PLAYA HOTELS & RESORTS 2023 SUSTAINABILITY REPORT TABLE OF CONTENTS CEO LETTER 3 ABOUT THIS REPORT 4 FORWARD-LOOKING STATEMENTS 4 WHO WE ARE 5 CORPORATE SOCIAL RESPONSIBILITY JOURNEY 5 PLAYA CARES - SUSTAINABLE MANAGEMENT SYSTEM 6 12 PROGRAMS: OUR SUSTAINABILITY APPROACH 7 PLAYA CARES COMMITTEE 8 ENVIRONMENTAL STEWARDSHIP 9 SUSTAINABILITY CERTIFICATIONS 9 ENERGY 11 WATER 12 WASTE 13 CLIMATE RISK STRATEGY 13 RENOVATIONS AND CONSTRUCTION 19 ENVIRONMENTNAL CONSERVATION 20 PLAYA PARTNERS 20 SOCIAL 20 PLAYA COMMUNITY 20 OUR ASSOCIATES 20 OUR LOCAL COMMUNITIES 23 PLAYA HEALTH AND SAFETY 26 GOVERNANCE 27 BOARD OF DIRECTORS 27 ESG COMMITTEE 28 STAKEHOLDER ENGAGEMENT 29 CODE OF CONDUCT, ETHICS, AND HUMAN RIGHTS 30 RISK ASSESSMENT AND MANAGEMENT 31 CYBERSECURITY 31 2023 ESG PERFORMANCE TABLE 32 SASB 35 TCFD 37 GRI INDEX 39 2 CEO LETTER Playa celebrated its 10th anniversary in 2023, capping off a decade as a leader in the all-inclusive industry. We, in partnership with Hyatt Hotels Corporation, opened our first branded properties - the Hyatt Ziva Los Cabos and Hyatt Zilara Cancun - in 2013. Subsequently, we expanded our portfolio of owned properties across Mexico and the Caribbean, including brand partnerships with Hilton and Wyndham. A core aspect of our growth has been a continued focus on sustainability and community. Hyatt Ziva Cancun was our first resort to receive Green Globe certification in 2017, setting the stage for our sustainability commitment. The following year, we launched Playa Green, our environmental sustainability program, with a focus on reducing water, waste and energy consumption and fostering employee responsibility. As of December 2024, all of our owned resorts have achieved Green Globe certification, a testament to our dedication to sustainable operations and practices. I am proud to share our 2023 Sustainability Report, which highlights Playa's continued journey towards our goals of reducing our environmental impact and building sustainable relationships within, and beyond, the Playa community. PLAYA GREEN In2023,wecontinuedtofocusonincorporatingsustainabilitythroughout our day-to-day operations, as well as through large-scale environmental and sustainability projects. We understand the importance of adapting to the challenges posed by climate change and actively incorporate capital expenditure projects into our planning to improve the climate resiliency of our resorts. In 2023 and early 2024, we completed the installation and commissioning of Playa's first microturbine to generate electricity for Hilton Rose Hall. This is the first step toward incorporating a complete tri-generation facility and integrating a new chiller system. Since the microturbine system was activated in early 2024, the resort has seen a 17% reduction in total Scope 1 and Scope 2 greenhouse gas emissions compared to the previous year. Beyond reducing overall emissions, this initiative has enabled the resort to increase its resiliency to interruptions of the grid system in the region, thereby reducing negative impacts on equipment from power interruptions and providing an enhanced guest experience. PLAYA COMMUNITY Playa served our local communities in every region through thousands of volunteer hours. In the Dominican Republic, our associates supported local schools with the reconstruction and adaptation of spaces within classrooms, repair and maintenance of critical electronic equipment, and donations. In Jamaica, Playa sponsored the Discovery Bay Marine Laboratory for its Open Day event held in commemoration of World Oceans Day 2023, facilitating 176 attendees from 10 schools where students gained a deeper understanding of vital ecosystems such as mangroves, seagrass and coral reefs. In Mexico, our resorts partnered with a recycling service provider to host recurring Community Recycling Projects, allowing associates to collect recyclable items from their homes and neighborhoods especially where recycling services are unavailable - and bring them to our resort for proper sorting and recycling. These represent a small sample of the volunteer engagements across our footprint. PLAYA GOVERNANCE From a governance perspective, our Environmental, Social and Governance (ESG) Committee oversees Playa's commitment to incorporating environmental sustainability, social responsibility, and governance best practices into our daily operations. The ESG Committee updates the Nominating & Governance Committee on its activities at least twice per year and the Board of Directors directly at least annually. In 2023, we introduced Playa Cares, our sustainable management system which emphasizes our social and environmental impact, as well as our compliance with applicable regulation and legislation. In 2024, we created a dedicated ESG Department to centralize our ESG efforts and facilitate compliance with current (and future) reporting requirements, such as the Corporate Sustainability Reporting Disclosure (CSRD), which is applicable to Playa as we are domiciled in the European Union. We began the process of a Double Materiality Assessment to understand what topics we must report based on the 'double materiality principle', considering both the impact of our operations on people and the environment (impact materiality), and the impact of sustainability matters on our development, performance, and position (financial materiality). I appreciate your interest in our 2023 Sustainability Report, and we look forward to welcoming you to one of our resorts in the future. BRUCE D. WARDINSKI Chairman and Chief Executive Officer 3 ABOUT THIS REPORT This sustainability report for Playa Hotels and Resorts N.V. and its affiliates ("Playa", or the "Company") showcases our journey and progress on environmental, social, and governance efforts and performance during the periods from January 1, 2023 to December 31, 2023, unless otherwise noted. The boundaries of this report, unless otherwise noted, include all owned resorts in Playa's portfolio, with the exception of Jewel Punta Cana due to its closure and disposition. Pertaining to environmental data, metrics are based on FY2023 data from our owned resorts. Per the Greenhouse Gas (GHG) Protocol, Playa does not have operational control of resorts noted as "managed" in our Annual Report, and therefore, our third-party managed resorts are excluded from this report. Any financial metrics are provided in U.S. Dollars. Please note that our environmental and social data have not been third- party verified. This report includes ESG performance tables and disclosures in accordance with the Sustainability Accounting Standards Board (SASB), the Taskforce on Climate-Related Financial Disclosures (TCFD) framework, and the Global Reporting Initiative (GRI) Index. FORWARD-LOOKING STATEMENTS This report may contain "forward-looking statements" that are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These statements are identifiable by the fact that they do not relate strictly to historical or current facts. Forward- looking statements reflect our current views with respect to, among other things, our capital resources, portfolio performance, results of operations, liquidity and financial condition, including, but not limited to, statements regarding the anticipated performance of our hospitality portfolio, development and acquisition plans, including those related to any joint ventures and other business or operational issues. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this annual report, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). 4 WHO WE ARE Playa Hotels & Resorts N.V., through its subsidiaries (NASDAQ: PLYA), is a leading owner, operator, and developer of all-inclusive resorts in prime beach-front locations in Mexico, Jamaica, and the Dominican Republic. As of December 31, 2023, Playa owned a total portfolio consisting of 17 resorts (6,504 rooms) under the following brands: Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Wyndham Alltra, and Jewel Resorts. Playa leverages years of all-inclusive resort operating expertise and relationships with globally recognized hospitality brands to provide a best-in-class experience and exceptional value to guests, while building a direct relationship to improve customer acquisition cost and drive repeat business. For more information, please visit www.playaresorts.com. Playa Hotels & resorts was awarded the 2024 Skift Meeting Award for Best All-inclusive Hotel Chain (Global) The Skift MeetingsAwards celebrate the industry's most respected suppliers, setting the standard for excellence in business events, with the award for Best All-Inclusive Hotel Chain (Global) being added in in 2024. This award recognizes an all-inclusive hotel chain that consistently excels in offering comprehensive services that leave a lasting impression. Playa is honored to be the first recipient of this inaugural award. CORPORATE SOCIAL RESPONSIBILITY JOURNEY 2017: Hyatt Ziva Cancun becomes the first Playa resort to receive Green Globe certification, setting the stage for our sustainability commitment. As of December 2024, 16 of our owned resorts have achieved Green Globe certification 2018: Launch of Playa Green, our environmental sustainability program, with a focus on reducing water and energy consumption, waste, and fostering employee responsibility 2020: ESG Committee established, integrating sustainability accountability into our governance structure 2022: Fou