NH Hotel S A : 2. NFIS 2022 – Sustainable Business Report

CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION 2022

SUSTAINABILITY REPORT

CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION

2022

SUSTAINABILITY REPORT

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CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION 2022

SUSTAINABILITY REPORT

INDEX

OUR PRESENCE IN THE WORLD 2022	96
ABOUT THE NON-FINANCIAL INFORMATION STATEMENT	97
EUROPEAN UNION TAXONOMY OF SUSTAINABLE ACTIVITIES	99
CHAIRMAN AND CEO'S MESSAGE	104
▪	Chairman's Message	104
▪	CEO's Message	106
MILESTONES 2022	109
OUR VISION AND CULTURE	110
NH HOTEL GROUP BUSINESS MODEL	112
NH HOTEL GROUP STRATEGY	117
CORPORATE GOVERNANCE	119
▪ Board of Directors of NH Hotel Group	119
▪	Board Committees	120
▪	Management Committee	122
▪ Board and Senior Management Remuneration	123
▪	Shareholder Structure	123
ETHICAL COMMITMENT AND COMPLIANCE SYSTEM	126
TAX TRANSPARENCY: PROFITS AND TAXES	132
RELATIONS WITH GOVERNMENTS AND POLITICAL INFLUENCE	136
INFORMATION SECURITY	137
PROTECTION OF HUMAN RIGHTS	140
▪ Human Rights Due Diligence	142
RISK MANAGEMENT	144
NH HOTEL GROUP'S RESPONSE TO THE RISKS AND OPPORTUNITIES
ASSOCIATED TO CLIMATE CHANGE BASED ON THE TASK FORCE ON	157
CLIMATE-RELATED FINANCIAL DISCLOSURE (TCFD)
SUSTAINABLE BUSINESS STRATEGY	164
▪	Sustainable Business Governance	165
▪	Materiality Analysis	168
▪ Value creation for our stakeholders	173
NH HOTEL GROUP AND THE 2030 AGENDA	178
UP FOR PLANET	179
SUSTAINABLE PRODUCTS AND ASSETS	181
▪	Environmental certification program	181
▪	Plan SBT 2030	182
▪	Energy efficiency plan	184
OPERATING PROCESSES AND STANDARDS	186
▪	Responsible energy management	186
▪	Responsible water management	187
▪ Waste management and circular economy	188
▪	Biodiversity management	190

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CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION 2022

SUSTAINABILITY REPORT

▪ Development of more sustainable products

191

SUSTAINABLE PURCHASING	196
▪	Supplier approval	197
▪	Supplier management	199
▪ Analysis of Critical Suppliers	200

UP FOR PEOPLE	202
EMPLOYEES	203
▪	People Strategy	203
▪ Quality job creation and talent retention	210
▪ Culture of diversity, equality and inclusion	213
▪ A team with the same opportunities	216
▪	Training: NH University	219
▪	Employee Engagement	226
▪	Internal communication	230
▪ Health, safety and wellbeing at work	232
▪ Turnover, absenteeism and terminations	236
CUSTOMERS	239
▪ NH Experience for individual and professional customers	239
▪ Evolution of quality measurement tools in 2022	244
▪ Single Customer Service Center Tools	246

COMMUNITIES

• Hotels with a Heart
• Together with Love: Corporate Volunteering
• Employability programs: promotion of youth employment

AWARDS TO NH HOTEL GROUP IN 2022

PRINCIPLES GOVERNING THE PREPARATION OF THE CONSOLIDATED NON-FINANCIAL INFORMATION STATEMENT APPENDIX I: TABLE OF INDICATORS

APPENDIX II: EUROPEAN TAXONOMY

APPENDIX III: RECOMMENDATIONS OF THE TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) APPENDIX IV: TABLE OF CONTENTS NON-FINANCIAL REPORTING AND DIVERSITY LAW 11/2018

APPENDIX V: INDEX OF GRI STANDARD CONTENTS

ANNEX VI: INDEPENDENT VERIFICATION REPORT

255

255

257

259

261

266

267

270

275

277

292

300

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CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION 2022

SUSTAINABILITY REPORT

OUR PRESENCE IN THE WORLD 2022

350	30	54,820	12,800*	38.9
MILLION
HOTELS	COUNTRIES	ROOMS	EMPLOYEES	GUESTS

Andorra • Argentina • Austria • Belgium • Brazil • Chile • Colombia

Cuba • Czech Republic • Denmark • Ecuador • France • Germany • Haiti • Hungary

Ireland • Italy • Luxembourg • Mexico • Netherlands • Poland • Portugal • Romania • Slovakia •

Spain • Switzerland • Tunisia

United Kingdom • Uruguay • USA

Figures as of 12.31.2022

Including hotels operated under management agreements, leased, owned and franchise.

* FTEs and the figure does not include franchises.

BU AMÉRICA	BUNE	BUSE
Argentina, Brazil, Chile, Colombia,	Austria, Belgium, Czech Republic,	Andorra, France,
Cuba, Ecuador, Haiti,	Denmark, Germany, Hungary,	Italy, Portugal, Spain,
Mexico and Uruguay	Ireland, Luxembourg, Netherlands,	Tunisia and USA
	Poland, Rumania, Slovakia,
	Switzerland, United Kingdom
58 hotels	119 hotels	173 hotels
7,654 rooms	23,168 rooms	23,998 rooms
9 countries	14 countries	7 countries

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CONSOLIDATED STATEMENT OF NON-FINANCIAL INFORMATION 2022

SUSTAINABILITY REPORT

ABOUT THE NON-FINANCIAL INFORMATION STATEMENT

This Consolidated Statement of Non-Financial Information 2022 (hereinafter SNFI or "the Report") is presented as a separate report and forms part of the Consolidated Directors' Report 2022 of NH Hotel Group. It deals extensively with the Company's Responsible Business Strategy, concentrating in a single document:

• The Company's response to the legal requirements of Act 11/2018 of 28 December 2018 on non-financial information and diversity, as well as Act 5/2021 of 12 April amending the consolidated text of the Capital Companies Act and the EU 2017/C215/01 guidelines for reporting its performance on non-financial information.
• The Sustainable Business Report, which follows the standards of the Global Reporting Initiative (GRI).
• Regulation (EU) 2020/852 of the European Parliament and of the Council of June 18th, 2020, on the establishment of a framework to facilitate sustainable investment, the first delegated act of which establishes the obligation to disclose information on the manner and the extent to which the enterprise's activities are associated to economic activities that are considered to be environmentally sustainable in relation to the climate change mitigation and adaptation goals. See the Chapter on 'European Union Sustainable Activities Taxonomy'.
• The recommendations of the Task Force on Climate Related Disclosures (TCFD). See Appendix III: 'Recommendations of the Task Force on Climate Related Disclosures (TCFD)'.
• Commitment to the Ten Principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs) approved by the United Nations General Assembly, which NH Hotel Group integrates into its strategy and which are detailed in the section 'NH Hotel Group and the 2030 Agenda'.

The SNFI was drawn up by the Board of Directors of NH Hotel Group on February 22nd, 2023, and was signed by all its members, with the specifications resulting from the Directors' Statement of Responsibility for the purposes of the provisions of article 118.2 of Royal Legislative Decree 4/2015, of October 23rd, approving the Securities Market Act (Consolidating Act), recording the delegation by certain Board members of other Board members to sign on their behalf.

This Report and the previous Sustainable Business Reports are published in digital format and are available at www.nhhotelgroup.com

Contents

The definition of the contents of the Report is based on matters that are relevant for the activity of NH Hotel Group and its main stakeholders, based on the Materiality Analysis which is updated each year. The Group has different systems for dialog with its stakeholders, which are a source of analysis in defining the relevant content to be included in the report. The results of this communication allow mechanisms to be kept active in order to identify needs, as well as aspects of major relevance to include in the Report, and the monitoring of the commitments and success in dealing with the challenges presented in the previous year.

To update the Materiality Analysis, the Company's strategy and objectives, the Sustainable Business strategy, and material issues at sector level defined by the Sustainable Hospitality Alliance and by UNWTO are taken into account, as well as the main social and sustainability trends, the requirements of different reporting and sustainability frameworks, such as the Global Reporting Initiative (GRI) and Act 11/2018 on Non-Financial and Diversity Reporting, which responds to Directive 2014/95/EU of the European Parliament.

As far as the quality of the information is concerned, NH Hotel Group seeks to convey a balance, reflecting both the positive and negative aspects of its performance in the key materiality areas identified in 2022, offering its stakeholders information on the progress in

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