Atour Unveils Sustainability Records in 2023 With Milestone ESG Report

Rhea-AI Summary

On May 23, Atour Lifestyle Holdings (NASDAQ: ATAT) released its first Environmental, Social, and Governance (ESG) report for 2023, highlighting its sustainability initiatives. Notable efforts include refurbishment projects using modular designs for new products Atour Light 3.0 and Atour 4.0, which reduce maintenance costs and construction waste. The company has integrated eco-friendly amenities like biodegradable paper cups and natural cotton beddings in its hotels.

Atour’s water conservation measures save 12.67 tons per room annually across 1,210 hotels. The company also focuses on customer experience, franchisee support, and societal contributions, such as purchasing 150 tons of tea leaves worth RMB 37 million from local villagers and donating clothes worth RMB 2 million to the needy. The company aims to expand its hotel network to 2,000 by 2025 while enhancing ESG initiatives.

Positive

• Released first ESG report for 2023, showcasing commitment to sustainability.
• Implemented modular design in new products, reducing maintenance costs and construction waste.
• Equipped hotels with eco-friendly amenities, like biodegradable paper cups and natural bedding.
• Water conservation measures save 12.67 tons per room annually across 1,210 hotels.
• Focused on customer experience with innovations like Atour APLUS services and purified indoor air.
• Supports franchisees through commitments and training on sustainability.
• Purchased 150 tons of tea leaves worth RMB 37 million from local villagers, benefiting 1,400 households.
• Donated clothes worth RMB 2 million to the needy.
• Promotes a diverse and inclusive workplace, with over 58% female employees.
• Established ESG working group, aiming for coherent sustainability strategy.

Negative

• The report does not provide specific financial data, potentially raising concerns about transparency.
• There is no mention of immediate financial benefits or impact on revenue from ESG initiatives.
• Implementation of ESG measures may lead to increased operational costs.
• Ambitious goal to expand to 2,000 hotels by 2025 could strain resources and financial stability.

SHANGHAI, May 24, 2024 /PRNewswire/ -- May 23, Atour Lifestyle Holdings Limited (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, has released its inaugural Environmental, Social, and Governance (ESG) report for 2023.

The report underscores the company's sustainability efforts over the past year and reflects the steady integration of ESG principles into its day-to-day operations.

In essence, Atour is committed to reducing waste and making its operations more ecologically friendly. This is reflected in the company's approach toward refurbishment and resource conservation.

During the reporting period, Atour launched two new products, Atour Light 3.0 and Atour 4.0 "With Nature," a midscale hotel offering and an upper midscale variation. They underwent refurbishment using modular designs, with modular elements accounting for over 90% and 80% of the overall designs, respectively. This initiative significantly reduces maintenance costs and non-essential construction waste.

Sustainability practices extend beyond decoration. Atour hotels now are equipped with less carbon-intensive amenities, such as 100% biodegradable paper cups, as well as natural cotton beddings and natural bamboo paper products manufactured without bleach or fluorescents, easing the burden on the environment.

Additionally, Atour promotes water conservation across its some 1,210 hotels (as of the end of last year) using the dedicated-loop system for circulating hot water, resulting in a reduction of 12.67 tons of water consumption per room annually.

Atour prioritizes customer experience, introducing innovations from Atour APLUS services to Late Night Congee to ensure customers feel at home during their stays. Customers can expect a carefree experience and peace of mind, thanks to Atour's commitment to purified indoor air, fire safety, cleanliness, hygiene, and strict user privacy protection.

Moreover, Atour has reinforced its support for franchisees through its "Six Commitments to Franchisees" and "Eight Supply Chain Procurement Commitments," empowering them with a responsible supply network, rights guarantees, as well as training on sustainability. For instance, the company vows to address franchisees' complaints within 48 hours and refund price differences/offer refunds.

Originating from Yaduo, a remote village in southwestern China, Atour has consistently given back to its place of inspiration by encouraging local villagers to grow tea, fueling economic development and rural revitalization.

As the report indicates, Atour purchased a cumulative 150 tons of processed tea leaves worth/for RMB 37 million from the villagers, benefiting some 1,400 households. As part of its charitable engagements, it also donated a batch of clothes with a value of around RMB 2 million to the needy and supported targeted poverty alleviation efforts.

In urban areas, Atour contributes to societal well-being by offering resting places in its Shanghai headquarters for frontline workers such as couriers, delivery rider, and sanitation workers during their downtime.

Ten years after its birth, Atour prides itself on creating a diverse, equitable, and inclusive workplace for its employees. Currently, over 58% of its 4,248 employees are female, and the company employs 17 people with physical disabilities and 162 members of ethnic minorities.

On the corporate governance front, Atour has established an ESG working group tasked to report directly to its Executive Committee. The ultimate goal is to implement a coherent sustainability strategy throughout its corporate hierarchy, thereby embedding ESG concepts into Atour's mission and core values.

Recognizing board diversity as a pillar for sustained growth, Atour aims to include factors like one's gender, age, culture and professional background when nominating future board members. Currently, there are three independent directors and two female directors on the eight-member board.

In aligning with its strategic vision to boast a network of 2,000 premier hotels by 2025 and deliver the optimum "Chinese experience," Atour is set to invest more resources and energies in the realm of ESG.

"Looking ahead, we aim to enhance our sustainable development initiatives and capacities consistently, turning our original aspirations of warmth and generosity into increased resilience through concrete measures," said Mr. Haijun Wang, founder and CEO of Atour.

"We remain committed to creating an intimate ambience where people can warmly connect and contributing to a greener ecology and a kinder, more compassionate society."

About Atour Lifestyle Holdings Limited

Atour Lifestyle Holdings Limited (NASDAQ: ATAT) is a leading hospitality and lifestyle company in China, with a distinct portfolio of lifestyle hotel brands. Atour is the leading upper midscale hotel chain in China and is the first Chinese hotel chain to develop a scenario-based retail business. Atour is committed to bringing innovations to China's hospitality industry and building new lifestyle brands around hotel offerings.

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SOURCE Atour Lifestyle Holdings Limited

FAQ

What did Atour reveal in its 2023 ESG report?

Atour highlighted its sustainability initiatives, including modular refurbishments, eco-friendly amenities, and water conservation measures.

How many hotels does Atour currently operate?

As of the end of last year, Atour operates approximately 1,210 hotels.

What are Atour's new products mentioned in the 2023 ESG report?

Atour launched Atour Light 3.0 and Atour 4.0 'With Nature,' both using over 80% modular designs.

What water conservation measures has Atour implemented?

Atour uses a dedicated-loop system for circulating hot water, saving 12.67 tons of water per room annually.

How does Atour support its franchisees?

Atour supports franchisees with 'Six Commitments to Franchisees' and 'Eight Supply Chain Procurement Commitments', including addressing complaints within 48 hours.

What ESG goals does Atour have for the future?

Atour aims to expand its hotel network to 2,000 by 2025 and enhance its sustainable development initiatives.

How does Atour contribute to local communities?

Atour purchases tea leaves from local villagers, donates clothes to the needy, and offers resting places for frontline workers in urban areas.