Hilton Worldwide, Inc. - Water Security 2022

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Hilton is one of the largest hospitality companies in the world, with 6,837 properties comprising 1,074,791 rooms in 122 countries and territories as of December 31, 2021.

Founded in 1919, Hilton has been an innovator in the industry for more than 100 years, driven by the vision of founder Conrad Hilton, "to fill the earth with the light and warmth

of hospitality." Our premier brand portfolio includes: our luxury hotel brands, Waldorf Astoria Hotels & Resorts, LXR Hotels & Resorts and Conrad Hotels & Resorts; our

emerging lifestyle hotel brands, Canopy by Hilton, Tempo by Hilton and Motto by Hilton; our full service hotel brands, Signia by Hilton, Hilton Hotels & Resorts, Curio

Collection by Hilton, DoubleTree by Hilton and Tapestry Collection by Hilton; our focused service hotel brands, Hilton Garden Inn, Hampton by Hilton and Tru by Hilton; our

all-suites hotel brands, Embassy Suites by Hilton, Homewood Suites by Hilton and Home2 Suites by Hilton; and our timeshare brand, Hilton Grand Vacations. We drive

customer loyalty, engagement and online sales through Hilton Honors, our award-winning guest loyalty program. Through the Hilton Honors program, we reached more than

128 million members in 2021, a 13% annual increase from the prior year. We further drive increased use and loyalty within our Hilton Honors program through innovative

partnerships, including Hilton’s partnerships with American Express, Lyft and Live Nation.

We depend on our long-term hotel management and franchise contracts with third-party owners and franchisees for the majority of our fee revenues. The management and

franchise segment includes all of the hotels we manage for third-party owners, as well as all franchised hotels owned and managed by others. As of December 31, 2021,

there were 745 hotels managed by Hilton and under operational control ("CDP reporting boundary"). Out of these managed hotels, Hilton has an ownership interest (owned,

joint venture or leased) in only 54 hotels worldwide. Franchised properties, which are controlled by Hilton's development and operating standards for the respective Brands,

account for approximately 87% of our global portfolio by hotel count. Given their significance to Hilton's business model, responses that are relevant to franchised hotels are

reported as Other Value Chain.

Our CDP Reporting Boundary is Operational Control, defined as companies, entities, or groups over which operational control is exercised. However, please note that Hilton's

ESG and climate change strategies, along with LightStay requirements for measurement and improvement in carbon and energy efficiency, extend to all managed and

franchised hotels globally.

Hilton has integrated energy and climate related issues into our business objectives for years through our continual focus on improving the environmental performance of our

hotels and driving responsible travel and tourism across our industry. We are serious about our role in helping the international community reach the UN Sustainable

Development Goals (SDGs) by taking action in our global hotel operations, local communities, and supply chain. Our ESG strategy, Travel with Purpose, drives us to think

and act in ways that will maximize our contributions to help meet these important global goals. In this spirit, we have united our nearly 366,000 Team Members along with our

owners, partners, and communities in more than 100 countries around our ESG strategy and shared goals. As a result of our efforts, we were proud to be named to the Dow

Jones Sustainability Indices for the first time starting in 2017, and in 2021, named to the Dow Jones Sustainability Indices (“DJSI”) for the fifth consecutive year, scoring in the

100th percentile in our industry, reflecting Hilton’s continuous investment in building a leading ESG strategy.

In 2018, we were the first in our industry to set science-based targets and in 2021, we submitted an application to the Science Based Targets initiative (SBTi) to raise the bar

on our ambition as climate science has evolved. In 2021, we continued to advance our partnership with EcoVadis to assess our suppliers’ sustainability risk and performance.

All suppliers are required to observe and abide by Hilton’s Responsible Sourcing Policy, which is included in all supplier contracts. As part of our 2030 Goals, we have also

committed to driving water stewardship across our value chain by achieving a 50% reduction in water use intensity by 2030.

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

Start date End date

Reporting year January 1 2021 December 31 2021

W0.3

(W0.3) Select the countries/areas in which you operate.

Albania

Algeria

Anguilla

Argentina

Armenia

Aruba

Australia

CDP Page of 471

Austria

Azerbaijan

Bahamas

Bahrain

Barbados

Belarus

Belgium

Belize

Bermuda

Bolivia (Plurinational State of)

Botswana

Brazil

Bulgaria

Cabo Verde

Cameroon

Canada

Cayman Islands

Chile

China

China, Macao Special Administrative Region

Colombia

Congo

Costa Rica

Croatia

Curaçao

Cyprus

Czechia

Democratic Republic of the Congo

Dominican Republic

Ecuador

Egypt

El Salvador

Equatorial Guinea

Estonia

Eswatini

Ethiopia

Faroe Islands

Fiji

Finland

France

French Polynesia

Georgia

Germany

Greece

Guam

Guatemala

Haiti

Honduras

Hong Kong SAR, China

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Jamaica

Japan

Jordan

Kazakhstan

Kenya

Kuwait

Latvia

Lebanon

Lithuania

Luxembourg

Malaysia

Maldives

Malta

Mauritius

Mexico

Montenegro

Morocco

Myanmar

Namibia

Netherlands

New Caledonia

New Zealand

Nicaragua

Nigeria

North Macedonia

CDP Page of 472

Oman

Panama

Papua New Guinea

Paraguay

Peru

Philippines

Poland

Portugal

Puerto Rico

Qatar

Republic of Korea

Romania

Russian Federation

Saint Kitts and Nevis

Saint Lucia

Saint Martin (French Part)

Saudi Arabia

Serbia

Seychelles

Singapore

Slovakia

South Africa

Spain

Sri Lanka

Sweden

Switzerland

Taiwan, China

Thailand

Trinidad and Tobago

Turkey

Uganda

Ukraine

United Arab Emirates

United Kingdom of Great Britain and Northern Ireland

United States of America

Uruguay

Viet Nam

Zambia

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being

reported.

Companies, entities or groups over which operational control is exercised

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

W0.7

(W0.7) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization. Provide your unique identifier

Yes, a Ticker symbol HLT

W1. Current state

CDP Page of 473

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

Direct use

importance

rating

Indirect

use

importance

rating

Please explain

Sufficient amounts of good

quality freshwater available

for use

Vital Important Direct use of freshwater: Good quality freshwater is used for cooking, drinking water and guest services such as laundry and cleaning. It is also essential

for guest hygiene.

Availability of fresh water is important to ensure continued operations.

Indirect use of freshwater: Within our value chain freshwater is used by our suppliers to enable production of goods and produce. Its availability for indirect

use is important given global stresses on water for agricultural products. Hilton's diverse global supply chain which extends across over 122 countries and

territories does allow some reduction in risk from water shortages in specific geographic areas.

Dependency on freshwater is likely to increase with growth at an absolute level, although as we have set per occupied room intensity targets, we do not

anticipate much change over time for both direct and indirect uses.

Sufficient amounts of

recycled, brackish and/or

produced water available for

use

Important Have not

evaluated

Direct use of recycled, brackish and/or produced water: Water recycled by hotels within their boundary reduces potable water use and may be used for

landscape irrigation, toilet flushing, cooling tower makeup and other non-potable water uses. While none of these is directly required for hotel operations,

dependency on recycled water is likely to increase over time to reduce risk from water shortages.

Indirect use of recycled, brackish and/or produced water: Water may be used and recycled within the operations of some of our suppliers, however

because our global supply chain is large and extensive, we have not yet evaluated the importance of this type of water. Demand for this water is likely to

increase over time particularly within areas facing freshwater stress.

W1.2

(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

% of

sites/facilities/operations

Please explain

Water withdrawals –

total volumes

100% Hilton is reporting water withdrawals for 100% of its global portfolio of owned, managed, and franchised hotels fully operating and enrolled in LightStay as of

December 31, 2021. Calendar year 2021 water totals include primary data for approximately 70% of Hilton properties worldwide, by building area, based on

metered water use data entered in LightStay deemed accurate and complete. Annual water totals have been extrapolated to include 100% of the global

portfolio, with consumption estimates based on the brand average per square meter. We have included a prorated water estimate for newly enrolled properties

based on the hotel opening or conversion date. In 2021, we estimate that the total prorated floor area of Hilton’s owned, managed, and franchised portfolio

increased over the prior year by approximately 17.9%.

Water withdrawals –

volumes by source

100% Hilton is reporting water withdrawals for 100% of its global portfolio of owned, managed, and franchised hotels fully operating and enrolled in LightStay as of

December 31, 2021. Calendar year 2021 water totals include primary data for approximately 70% of Hilton enrolled properties worldwide, by building area,

based on metered water use data entered in LightStay deemed accurate and complete. Annual water totals have been extrapolated to include 100% of the

global portfolio, with consumption estimates based on the brand average per square meter. We have included prorated water estimate for newly enrolled

properties based on the hotel opening or conversion date. In 2021, we estimate that the total prorated floor area of Hilton’s owned, managed, and franchised

portfolio increased over the prior year by approximately 17.9%.

Entrained water

associated with your

metals & mining sector

activities - total volumes

[only metals and mining

sector]

Produced water

associated with your oil

& gas sector activities -

total volumes [only oil

and gas sector]

Water withdrawals

quality

Not monitored

Water discharges –

total volumes

100% Hilton is reporting water discharge for 100% of its global portfolio of owned, managed, and franchised hotels fully operating and enrolled in LightStay as of

December 31, 2021. Calendar year 2021 water totals include primary data for approximately 70% of Hilton enrolled properties worldwide, by building area,

based on metered water use data entered in LightStay deemed accurate and complete. Annual water totals have been extrapolated to include 100% of the

global portfolio, with consumption estimates based on the brand average per square meter. We have included prorated water estimate for newly enrolled

properties based on the hotel opening or conversion date. In 2021, we estimate that the total prorated floor area of Hilton’s owned, managed and franchised

portfolio increased over the prior year by approximately 17.9%.

Water discharges –

volumes by destination

Not monitored

Water discharges –

volumes by treatment

method

Not monitored

Water discharge quality

– by standard effluent

parameters

Not monitored

Water discharge quality

– temperature

Not monitored

Water consumption –

total volume

100% Hilton is reporting water consumption for 100% of its global portfolio of owned, managed, and franchised hotels fully operating and enrolled in LightStay as of

December 31, 2021. Calendar year 2021 water totals include primary data for approximately 70% of Hilton enrolled properties worldwide, by building area,

based on metered water use data entered in LightStay deemed accurate and complete. Annual water totals have been extrapolated to include 100% of the

global portfolio, with consumption estimates based on the brand average per square meter. We have included prorated water estimate for newly enrolled

properties based on the hotel opening or conversion date. In 2021, we estimate that the total prorated floor area of Hilton’s owned, managed, and franchised

portfolio increased over the prior year by approximately 17.9%

Water recycled/reused 1-25 As part of our annual LightStay survey, sent to all properties across our managed and franchised portfolio, we ask questions about water measurement and

management. Currently, 12.8% of properties have systems in place to recycle and reuse water.

The provision of fully-

functioning, safely

managed WASH

services to all workers

100%

CDP Page of 474

W1.2b

(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, and how do these volumes compare to the

previous reporting year?

Volume

(megaliters/year)

Comparison

with

reporting

year

Please explain

Total

withdrawals

138887.4 Much higher Absolute water withdrawals from all sources increased by 27% in 2021. Reported totals are based on an analysis of primary data for 91% of hotels open as of

January 2020, with complete 2020-2021 water data entered in LightStay deemed accurate for reporting purposes. Total withdrawals have been extrapolated to

include 100% of the Hilton O&M portfolio, including prorated amounts for new hotels.

Year-on-year increases water consumption during the year ended December 31, 2021 are primarily attributable to an increase in system-wide occupancy as the

economy and systems recover. As a result of the COVID-19 pandemic, in 2020, we were forced to completely or partially suspend hotel operations at many of our

hotels at some point during the period. The decrease in occupancy resulted in reduced water withdrawal at our owned and managed hotels around the world.

Total

discharges

103920.5 Much higher Absolute water discharges are estimated to have increased by approximately 27% in 2021 as compared to 2020. Year-on-year increases water discharges during the

year ended December 31, 2021, are primarily attributable to an increase in system-wide occupancy as the economy and systems recover. As a result of the COVID-

19 pandemic, in 2020, we were forced to completely or partially suspend hotel operations at many of our hotels at some point during the period. The decrease in

occupancy resulted in reduced water discharges at our owned and managed hotels around the world.

Total

consumption

34966.9 Much higher Absolute water consumption is estimated to have increased by approximately 27% in 2021. For CDP reporting purposes, hotel water consumption is calculated as

reported water withdrawals less estimated water discharges by hotels to municipal treatment plants in accordance with local regulations.

Year-on-year increases water consumption during the year ended December 31, 2021, are primarily attributable to an increase in system-wide occupancy as the

economy and systems recover. As a result of the COVID-19 pandemic, in 2020, we were forced to completely or partially suspend hotel operations at many of our

hotels at some point during the period. The decrease in occupancy resulted in reduced consumption water at our owned and managed hotels around the world.

W1.2d

(W1.2d) Indicate whether water is withdrawn from areas with water stress and provide the proportion.

Withdrawals are from areas with water stress % withdrawn from areas with water stress Comparison with previous reporting year Identification tool Please explain

Row 1 Yes 26-50 About the same WWF Water Risk Filter

W1.2h

(W1.2h) Provide total water withdrawal data by source.

Relevance Volume

(megaliters/year)

Comparison

with

reporting

year

Please explain

Fresh surface water,

including rainwater,

water from wetlands,

rivers, and lakes

Relevant 326.75 About the

same

Fresh surface water and rainwater withdrawals collectively represent approximately 0.7% of total water withdrawals from all sources at Hilton

owned and managed properties worldwide. Rainwater withdrawals are estimated based on water data reported for one resort in Seychelles

with 100% of its water sourced from rainwater.

Brackish surface

water/Seawater

Relevant 1512.66 This is our

first year of

measurement

Seawater withdrawals represent approximately 3.1% of total water withdrawals from all sources at Hilton owned and managed properties

worldwide. Total includes 14 hotels and out of which, 6 have 100% seawater source.

Groundwater –

renewable

Relevant 1079.72 Higher Groundwater withdrawals represent approximately 2.2% of total water withdrawals from all sources at Hilton owned and managed properties

worldwide.

Groundwater – non-

renewable

Not

relevant

<Not Applicable> <Not

Applicable>

We are not aware of any withdrawals from non-renewable groundwater sources.

Produced/Entrained

water

Not

relevant

<Not Applicable> <Not

Applicable>

Hilton does not engage in any activities involving the extraction, processing, or use of any raw material that would potentially result in

produced water.

Third party sources Relevant 137481 Higher Municipal supply represents approximately 94% of total water withdrawals from all sources at Hilton owned and managed properties

worldwide. Total municipal withdrawals have been extrapolated to include 100% of the O&M portfolio including prorated amounts for new

hotels. Reported totals are based on an analysis of primary data for 91% of hotels, as of January 2020, with complete 2020-21 municipal

water data entered into LightStay and deemed accurate for reporting purposes.

Year-on-year increases water consumption during the year ended December 31, 2021, are primarily attributable to an increase in system-

wide occupancy as the economy and systems recover. As a result of the COVID-19 pandemic, in 2020, we were forced to completely or

partially suspend hotel operations at approximately 380 of our managed, owned and leased hotels at some point during the period. The

decrease in occupancy resulted in reduced consumption water at our managed and franchised hotels around the world.

W1.3

CDP Page of 475

(W1.3) Provide a figure for your organization’s total water withdrawal efficiency.

Revenue Total water withdrawal

volume (megaliters)

Total water

withdrawal

efficiency

Anticipated forward trend

Row

5788000

000

138887.4 41674.046745781

Hilton has a goal of reducing water in our managed operations by 50% (liters/m², 2008 baseline). As our future growth relies on engaging new

franchises, we anticipate that our water consumption will increase overall.

To manage and ultimately reduce water consumption, Hilton integrates our environmental policies and best practices into our business through our

Brand Standards which govern the development, renovation, and operation of every Hilton-branded hotel property.

W1.4

(W1.4) Do you engage with your value chain on water-related issues?

Yes, our suppliers

Yes, our customers or other value chain partners

W1.4a

(W1.4a) What proportion of suppliers do you request to report on their water use, risks and/or management information and what proportion of your procurement

spend does this represent?

Row 1

% of suppliers by number

Less than 1%

% of total procurement spend

1-25

Rationale for this coverage

Hilton uses tender evaluation to reward bids for products that have improved environmental performance, taking into account the whole life-cycle costs (including energy,

water, waste and consumables). Our use of the EcoVadis program allows us to determine among different suppliers their environmental risks and management.

Impact of the engagement and measures of success

Using EcoVadis, we can provide suppliers with a customized corrective action plan to improve their score. For a few suppliers, we have completed an assessment of how

they have increased their scores year on year including those whose scores have increased due to the implementation of corrective action plans.

Comment

As part of our 2030 Travel with Purpose Goals, Hilton has increased its supply chain commitments in areas that have the greatest impact to our business and the

environment.

W1.4b

(W1.4b) Provide details of any other water-related supplier engagement activity.

Type of engagement

Onboarding & compliance

Details of engagement

Inclusion of water stewardship and risk management in supplier selection mechanism

Requirement to adhere to our code of conduct regarding water stewardship and management

% of suppliers by number

76-100

% of total procurement spend

76-100

Rationale for the coverage of your engagement

Recognizing the need to engage our supply chain in order to meet the ambitious 2030 Travel with Purpose targets we have set; we encourage all suppliers to adhere to our

Responsible Sourcing Policy Statement. This includes a commitment to seek operational processes that result in water efficiency and to identify, monitor and minimize the

environmental impacts of their operations.

Impact of the engagement and measures of success

In late 2021, Hilton introduced EcoVadis as a tool to assess the sustainability risks in our supply chain. We immediately began assessments with our critical and Tier 1

suppliers and set a goal that 100% of our highest risk suppliers would be assessed through EcoVadis platform by 2023.

Comment

W1.4c

CDP Page of 476

(W1.4c) What is your organization’s rationale and strategy for prioritizing engagements with customers or other partners in its value chain?

Hotel guests

Rationale: Our guests can have a measurable impact on our water consumption during their stay with us, and our goal is to educate and help our guests reduce the impacts of

their stay. Engagement with our guests is of great importance in areas of high-water risk as we need to raise awareness to encourage guests to join in with our efforts and

understand why we would tailor services in crisis situations.

Engagement strategy: We are continually identifying new ways to engage with our guests around our environmental impacts, including around our water stewardship through

guest-facing communication both in-property and online.

Success measures: Simple messaging in just one of our San Francisco hotels was found to decrease water consumption by nearly 20% during a historic drought. We believe

that this kind of customer information can be adapted to make a greater impact.

Franchises

Rationale: We directly manage 745 properties around the world and Hilton has nearly 6,092 franchised properties globally. We believe that it is our responsibility to ensure

that our franchise partners are provided with information and resources to manage their impacts across their value chains in a responsible way.

Strategy: To engage with our franchises, our ESG strategy and LightStay requirements for measurement and improvement in water efficiency extend to all hotels, including

franchised operations. We also engage with franchised properties in areas of high-water risk to ensure they can benefit from our learnings and the resources we create. In

2021, we refreshed our Energy and Water Efficient Design Companion Guide to guide hotels on design decisions that can improve properties’ energy and water efficiency and

are already seeing results.

Success measures: Our franchised hotels have significantly reduced their water use through use of the LightStay system. Portfolio-wide we have reduced water use intensity

by 43% since 2008, though this progress was accelerated by the pandemic.

W2. Business impacts

W2.1

(W2.1) Has your organization experienced any detrimental water-related impacts?

Yes

W2.1a

(W2.1a) Describe the water-related detrimental impacts experienced by your organization, your response, and the total financial impact.

W2.2

(W2.2) In the reporting year, was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations?

W3. Procedures

W3.3

(W3.3) Does your organization undertake a water-related risk assessment?

Yes, water-related risks are assessed

W3.3a

(W3.3a) Select the options that best describe your procedures for identifying and assessing water-related risks.

Value chain stage

CDP Page of 477

Direct operations

Coverage

Full

Risk assessment procedure

Water risks are assessed as part of other company-wide risk assessment system

Frequency of assessment

More than once a year

How far into the future are risks considered?

3 to 6 years

Type of tools and methods used

Tools on the market

Enterprise risk management

International methodologies and standards

Tools and methods used

WWF Water Risk Filter

ISO 31000 Risk Management Standard

Alliance for Water Stewardship Standard

Other, please specify (Hilton LightStay Tool)

Contextual issues considered

Water availability at a basin/catchment level

Water quality at a basin/catchment level

Stakeholder conflicts concerning water resources at a basin/catchment level

Implications of water on your key commodities/raw materials

Water regulatory frameworks

Status of ecosystems and habitats

Access to fully-functioning, safely managed WASH services for all employees

Stakeholders considered

Customers

Employees

Investors

Local communities

NGOs

Regulators

Suppliers

Water utilities at a local level

Other water users at the basin/catchment level

Comment

Hilton utilizes the WWF-DEG Water Risk Filter given the tool’s extensive coverage of over 40 risk drivers and contextual issues at the river basin level. Each hotel’s water

risk is assessed using the tool, and the findings of this assessment (along with recommendations and tips) are shared with the hotel via our LightStay platform. The risk

analysis is updated twice per year. We also leverage our LightStay tool and hotel data, including monthly water withdrawals by source, water costs, occupancy and weather

data, and other profile data.

Value chain stage

Supply chain

Coverage

Partial

Risk assessment procedure

Water risks are assessed as part of other company-wide risk assessment system

Frequency of assessment

Annually

How far into the future are risks considered?

3 to 6 years

Type of tools and methods used

Tools on the market

Databases

Tools and methods used

EcoVadis

Maplecroft Global Water Security Risk Index

Contextual issues considered

Water availability at a basin/catchment level

Water quality at a basin/catchment level

Stakeholder conflicts concerning water resources at a basin/catchment level

Implications of water on your key commodities/raw materials

Water regulatory frameworks

Status of ecosystems and habitats

Access to fully-functioning, safely managed WASH services for all employees

Stakeholders considered

Customers

Employees

Investors

CDP Page of 478

Local communities

NGOs

Regulators

Suppliers

Water utilities at a local level

Other water users at the basin/catchment level

Comment

Hilton’s supply chain risk assessment procedures for water risk use the water risk indicators within the Verisk-Maplecroft indices, mapped against our operating areas. Risk

assessments are updated yearly, enabling us to continually assess sustainability risks. We also use the EcoVadis platform to identify and address environmental risks,

including water (and other ESG) risks in our supply chain.

Value chain stage

Other stages of the value chain

Coverage

Full

Risk assessment procedure

Water risks are assessed as part of other company-wide risk assessment system

Frequency of assessment

More than once a year

How far into the future are risks considered?

3 to 6 years

Type of tools and methods used

Tools on the market

Tools and methods used

WWF Water Risk Filter

Other, please specify (Hilton LightStay Tool)

Contextual issues considered

Water availability at a basin/catchment level

Water quality at a basin/catchment level

Stakeholder conflicts concerning water resources at a basin/catchment level

Implications of water on your key commodities/raw materials

Water regulatory frameworks

Status of ecosystems and habitats

Access to fully-functioning, safely managed WASH services for all employees

Stakeholders considered

Customers

Employees

Investors

Local communities

NGOs

Regulators

Suppliers

Water utilities at a local level

Other water users at the basin/catchment level

Comment

Hilton utilizes the WWF-DEG Water Risk Filter given the tool’s extensive coverage of over 40 risk drivers and contextual issues at the river basin level. Hilton also utilizes the

Verisk Maplecroft Global Water Risk Security index tool to assess water risk and water stress across our global regions. The risk analysis is updated twice per year.

Consistent with our Travel with Purpose ESG strategy and water stewardship commitments, our water risk assessment also includes franchised hotels, which are not under

Hilton’s direct operational control. Each franchised hotel’s water risk is assessed using the tool, and the findings of this assessment (along with recommendations and tips)

are shared with the hotel via our LightStay platform. We also leverage our LightStay tool and data, including monthly water withdrawals by source, water costs, occupancy

and weather data, and other hotel profile data to assess risk across our global portfolio.

W3.3b

CDP Page of 479

(W3.3b) Describe your organization’s process for identifying, assessing, and responding to water-related risks within your direct operations and other stages of

your value chain.

Hilton’s property management teams, including engineers and facility managers, evaluate water availability and risks at the local level and take all actions necessary to

ensure the safe and efficient operation of a hotel. For hotels being developed, Hilton will assess environmental resources, including feasibility studies during site development

or refurbishment and the choice of construction materials during design. Our Energy and Water Efficient Design Companion Guide that we refreshed in 2021 is a tool used to

guide hotels on design decisions that can improve properties’ energy and water efficiency.

Tools used: We use the WWF Water Risk Filter to comprehensively review the relevant water risks associated with each of our managed and franchised properties around

the world, allowing us to take each property's specific context into account. We map our water risks against water consumption and cost information from our sustainability

data management platform, LightStay, as well as any knowledge about the properties themselves, to add an internal lens about the activities occurring at the property level.

Risk-response decision making process: In response to the assessed risks, Hilton coordinated with WWF and the hotels deemed at-risk to put together a list of

recommendations. The recommendations include guest engagement and training for all locations, as well as strengthening links with community-based water action groups.

Best practices are also shared with all hotels through LightStay.

Timescale: Our detailed water risk analysis is updated at least annually.

Supply Chain: The identification, assessment, and response to water-related risks in our supply chain is being addressed. Using the WWF Water Risk Filter, we evaluate

supplier water risk in the local context (basin level).

Community stakeholders: WWF's Water Risk Filter was used to review relevant risks to local community stakeholders. In addition to this, we have held discussions with the

local hotel teams and some of their stakeholders to gather further information about the local context. Our hotels in areas of high risk are joining water action groups to

engage with local stakeholders and help respond to the risks.

W4. Risks and opportunities

W4.1

(W4.1) Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on your business?

Yes, both in direct operations and the rest of our value chain

W4.1a

CDP Page of 4710

(W4.1a) How does your organization define substantive financial or strategic impact on your business?

Definition of water risk-related substantive financial or strategic impact on our business: (1) Economic high risk: based on current or future negative financial impacts and

potential for negative impact on regional operations or guest experience. (2) Environmental high risk: based on potential for legal non-compliance or negative cost impacts

through remediation or recovery efforts. (3) Social high risk: based on potential negative impact on brand, reputation, and stakeholder relationships as well as potential for

legal non-compliance.

Using the WWF Water Risk Filter, we align and evaluate the factors that may potentially impact our current global hotel operations and expansion in specific geographic

markets. We also seek to identify specific areas and river basins where Hilton's water stewardship initiatives and engagement would have the greatest value.

Measures used to identify substantive change: In our screening of hotels for further analysis and potential inclusion, we initially consider those hotels with an overall WWF

basin risk of 3.5 or greater (med high to high). We then evaluate all hotels (managed/direct operations and franchised/value chain) within that river basin over other key risk

indicators to determine the primary driver within each basin and to identify priority areas for collective action:

(1) Economic high risk is aligned with WWF Physical Risk indicators

(2) Environmental high risk is aligned with Regulatory Risk indicators

(3) Social high risk is aligned with Reputation Risk indicators

Threshold indicating a substantive change: Typically, the primary risk type and risk driver will have an average basin risk of at least 4.0. We consider any scores greater than

3.5 to be substantive.

Application: The above definition applies to our direct operations and our supply chain.

W4.1b

(W4.1b) What is the total number of facilities exposed to water risks with the potential to have a substantive financial or strategic impact on your business, and

what proportion of your company-wide facilities does this represent?

Total number of facilities

exposed to water risk

% company-wide facilities

this represents

Comment

Row

359 1-25 The number of facilities exposed to water risk includes our managed (direct operations) and franchised hotels (rest of value chain) properties

assessed through the WWF Water Risk Filter across our global portfolio.

W4.1c

(W4.1c) By river basin, what is the number and proportion of facilities exposed to water risks that could have a substantive financial or strategic impact on your

business, and what is the potential business impact associated with those facilities?

Country/Area & River basin

China Yangtze River (Chang Jiang)

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 43 hotels in the Yangtze River Basin, located in Shanghai and surrounding area. The hotels all report 100% water use from municipal supply

and an average overall basin risk of 3.3 (medium risk). All hotels are third-party owned and Hilton-managed. While the facilities in the Yangtze River Basin represent less

than 1% of Hilton's operations and global revenues, these water risks are relevant to Hilton's planned growth and success in the Greater China and Mongolia Area.

Country/Area & River basin

China Yongding He

CDP Page of 4711

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 10 hotels in the Yongding He River Basin, located in Beijing and surrounding area. The hotels all report 100% water use from municipal

supply and an average overall basin risk of 3.5 (medium-high risk). All hotels are third-party owned and Hilton-managed. While the facilities in the Yongding He River Basin

represent less than 1% of Hilton's operations and global revenues, these water risks are relevant to Hilton's planned growth and success in the Greater China and Mongolia

Area.

Country/Area & River basin

Egypt Nile

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 9 hotels in the Nile River Basin, located in Cairo and surrounding area. The hotels have similar operations and an average overall basin risk

of 3.7 (medium-high risk). All hotels operating in this area are third-party owned and Hilton-managed, with Hilton controlling day to day hotel operations. While these

facilities represent less than 1% of Hilton's operations and global revenues, attention to water risks and stewardship is important to Hilton's operations, reputation and

business success in Egypt and greater Middle East region.

Country/Area & River basin

India Other, please specify (India)

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 12 hotels in India located in cities or coastal regions. The hotels have similar operations and an average overall basin risk of 3.8 (high risk).

All hotels operating in this area are third-party owned and Hilton-managed, with Hilton controlling day to day hotel operations. While these facilities represent less than 1%

of Hilton's operations and global revenues, attention to water risks and stewardship is important to Hilton's operations and business success in India region.

Country/Area & River basin

Mexico Bravo

CDP Page of 4712

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 10 hotels in Monterrey, Chihuahua, Juarez, and surrounding area. All hotels have 100% municipal water supply, with an average basin risk of

3.3 (medium-high risk). All hotels are franchised and are owned and operated by third parties. While these facilities represent less than 1% of Hilton's operations and global

revenues, attention to water stewardship is important to Hilton's operations, reputation, and business expansion in Mexico.

Country/Area & River basin

Mexico Panuco

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 9 hotels in Mexico City and surrounding area. All hotels have 100% municipal water supply, with an average basin risk of 3.3 (medium-high

risk). Four hotels are managed by Hilton and five hotels are franchised. While these facilities represent less than 1% of Hilton's operations and global revenues, attention to

water stewardship is important to Hilton's operations, reputation, and business expansion in Mexico.

Country/Area & River basin

Mexico Santiago

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 16 hotels in Guadalajara, Queretaro, and surrounding area. All hotels have 100% municipal water supply, with an average basin risk of 3.3

(medium-high risk). Four hotels are managed by Hilton and twelve hotels are franchised. While these facilities represent less than 1% of Hilton's operations and global

revenues, attention to water stewardship is important to Hilton's operations, reputation, and business expansion in Mexico.

Country/Area & River basin

Turkey Tigris & Euphrates

Number of facilities exposed to water risk

CDP Page of 4713

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 5 hotels in Turkey. All hotels have 100% municipal water supply, with an average overall basin risk of 3.1 a medium risk, but a pollution risk of

5 (highest risk). Three hotels are managed by Hilton and two hotels are franchised. While these facilities represent less than 1% of Hilton's operations and global revenues,

attention to water stewardship is important to Hilton's operations, reputation, and business expansion in Turkey.

Country/Area & River basin

United States of America Other, please specify (All California)

Number of facilities exposed to water risk

217

% company-wide facilities this represents

1-25

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

1-10

Comment

Data has been aggregated for 217 hotels in California. All hotels have 100% municipal water supply, with an average basin risk of 3.5 (medium-high risk). This total is

comprised of 33 managed hotels and 184 franchised hotels across locations in the California River Basin. This represents approximately 5% of Hilton's global portfolio and

stewardship is important to Hilton's operations, reputation, and business expansion in California.

Country/Area & River basin

United States of America St. Lawrence

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 30 hotels in the Chicago area, located in the St. Lawrence River Basin. All hotels have 100% municipal water supply, with an average basin

risk of 3.5 (medium-high risk). This total is comprised of 7 managed hotels and 23 franchised hotels. While these facilities represent less than 1% of Hilton's operations and

global revenues, attention to water stewardship is important to Hilton's operations, reputation, and business expansion in Chicago.

Country/Area & River basin

India Ganges - Brahmaputra

Number of facilities exposed to water risk

% company-wide facilities this represents

Less than 1%

CDP Page of 4714

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

Less than 1%

Comment

Data has been aggregated for 6 hotels in the Ganges River Basin, located in New Delhi, Gurgaon, and surrounding area. Two hotels report 100% ground/well water use

and the others are 100% municipal water supply, with an average basin risk of 3.9 (high risk). All hotels are third-party owned and Hilton-managed. While these facilities

represent less than 1% of Hilton's operations and global revenues, attention to water risks and stewardship is important to Hilton's operations, reputation, and business

expansion in India.

Country/Area & River basin

China Other, please specify (China)

Number of facilities exposed to water risk

% company-wide facilities this represents

1-25

Production value for the metals & mining activities associated with these facilities

% company’s annual electricity generation that could be affected by these facilities

% company’s global oil & gas production volume that could be affected by these facilities

% company’s total global revenue that could be affected

1-10

Comment

Data has been aggregated for 51 hotels across China outside of the Yangtze (Chang Jiang) and Yongding He basins. The hotels have an average basin risk of 3.4 overall

(medium-high risk) but a pollution risk of 3.8 and a reputation risk of 4.2. 49 of the hotels operating in the country are third-party owned and Hilton-managed, with Hilton

controlling day to day hotel operations. Two are franchised. Attention to water risks and stewardship is important to Hilton's operations and business success in China.

W4.2

(W4.2) Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your

response to those risks.

Country/Area & River basin

China Yangtze River (Chang Jiang)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Constraint to growth

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Yangtze River basin as pollution/water quality with an average score of

4.4. Increased population and demand on municipal supply may contribute to higher risk for our hotels in this basin in terms of water availability and water quality for

drinking, cooking, bathing, and other potable water needs.

Effect on direct operations: While our current hotel operations in the Yangtze River basin represent less than 1% of Hilton's operations and global revenues, these water

risks are relevant to Hilton's planned growth and success in the Greater China and Mongolia Area. Should there be declining water issues, this could lead to increased

costs for required mitigation practices to be put in place or it could slow down future development opportunities.

Timeframe

More than 6 years

Magnitude of potential impact

Low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

CDP Page of 4715

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Engage with NGOs/special interest groups

Description of response

WWF has a water stewardship team in Shanghai that focuses on the Yangtze. Through our work with WWF, we know that significant collective action is underway in the

basin. The largest threats include pollution, 105 large dams planned or under construction, inter-basin water transfer and other water infrastructure, over-fishing, and illegal

fishing. WWF are also focused on mitigating risks around climate change and storm water runoff, and identifying supply chain opportunities.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. At this time, we are not able to publish the cost of response.

Country/Area & River basin

United States of America Other, please specify (All California)

Type of risk & Primary risk driver

Chronic physical Water scarcity

Primary potential impact

Upfront costs to adopt/deploy new practices and processes

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in California as scarcity with an average score of 3.8.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

processes. Additionally, if overall water availability declines due to continued drought, hotels in this river basin may face significant cuts in their water allotment or face

increases in water costs making it more expensive to operate and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Virtually certain

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Due to the risks and the ongoing local awareness of water-related issues, California was selected as one of Hilton's initial pilot locations. So far, an in-depth risk analysis

has been carried out, including gathering information about actions taken to date, local stakeholders and impacts seen from the local water crisis. This information has been

used to create a set of recommendations for actions which is being reviewed to determine priorities for activation.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. Currently, we are not able to publish the cost of response.

Country/Area & River basin

India Ganges - Brahmaputra

CDP Page of 4716

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Ganges River basin as pollution/water quality with an average score of 4.6.

According to WWF, the Ganges River basin occupies 30% of the land area of India and is heavily populated, increasing in population density downstream to Bangladesh,

which is the most densely populated country in the world.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our 2030 Travel with Purpose Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Mexico Panuco

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Panuco River basin as pollution/water quality with an average score of 4.7.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to reduced demands for products and services and increased costs for water treatment and increased water prices,

making it more expensive to operate in the country and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

CDP Page of 4717

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our 2030 Travel with Purpose Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Mexico Santiago

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Santiago River basin as pollution/water quality with an average score of

5.0 (the highest possible risk).

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to reduced demand for products and services and increased costs for water treatment and increased water prices,

making it more expensive to operate in the country and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

CDP Page of 4718

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our 2030 Travel with Purpose Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Turkey Tigris & Euphrates

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Tigres and Euphrates river basin as pollution/water quality with an average

score of 5.0 (the highest possible risk score).

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing, and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both a hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

United States of America St. Lawrence

CDP Page of 4719

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Upfront costs to adopt/deploy new practices and processes

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the St. Lawrence river basin as pollution/water quality with an average score of

5.0, the highest possible risk score.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing, and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Egypt Other, please specify (Egypt)

Type of risk & Primary risk driver

Chronic physical Water scarcity

Primary potential impact

Upfront costs to adopt/deploy new practices and processes

Company-specific description

Method of impact identification: Nine hotels labelled as Egypt-Other were identified as high risk based on WWF Water Risk filter results and Hilton's water stewardship

priorities. These properties are coastal properties not designated with a specific river basin, with pollution risk of 3.8 and the highest water risk as water scarcity with an

average score of 4.8. Additionally, the UN have predicted that they will face severe water scarcity by 2025.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing, and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. This could also increase water costs making it more expensive to operate in the country and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

CDP Page of 4720

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

China Yongding He

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Constraint to growth

Company-specific description

Method for impact identification: The WWF Water Risk filter identifies the highest basin related risks as pollution, ecosystem impacts and reputation risk, with an average

basin risk score of 3.5 and a pollution risk score of 5.0, the highest possible. Increased population and demand on municipal supply may contribute to higher risk for our

hotels in this basin in terms of water availability and water quality for drinking, cooking, bathing, and other potable water needs.

Impact on operations: While our current hotel operations in the Yongding He River basin represent less than 1% of Hilton's operations and global revenues, these water

risks are relevant to Hilton's growth strategy in the Greater China and Mongolia Area. Should there be declining water issues, this could lead to increased costs for required

mitigation practices to be put in place or it could slow down future development opportunities.

Timeframe

More than 6 years

Magnitude of potential impact

Low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

CDP Page of 4721

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Egypt Nile

Type of risk & Primary risk driver

Chronic physical Water scarcity

Primary potential impact

Upfront costs to adopt/deploy new practices and processes

Company-specific description

Method for impact identification: The WWF Water Risk filter identifies the highest water risk in the Nile River basin as scarcity with an average score of 4.8 and a pollution

score of 5.0. Additionally, the UN have predicted that they will face severe water scarcity by 2025.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing, and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

processes. Additionally, if overall water availability declines due to continued drought, hotels in this river basin may face significant cuts in their water allotment or may have

to turn to more costly technology.

Timeframe

More than 6 years

Magnitude of potential impact

Low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Mexico Bravo

CDP Page of 4722

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Bravo River basin as pollution/water quality with an average score of 4.8.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to reduced demand for products and services and increased costs for water treatment and increased water prices,

making it more expensive to operate in the country and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Adopt water efficiency, water reuse, recycling and conservation practices

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our 2030 Travel with Purpose Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

W4.2a

(W4.2a) Provide details of risks identified within your value chain (beyond direct operations) with the potential to have a substantive financial or strategic impact

on your business, and your response to those risks.

Country/Area & River basin

Mexico Bravo

Stage of value chain

Other, please specify (Franchised hotels)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method for impact identification: The WWF Water Risk filter identifies the highest water risk in the Bravo River basin as pollution/water quality with an average score of 4.8.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

CDP Page of 4723

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Direct operations Other, please specify (Brand Standards for water measurement and reduction goals)

Description of response

Our franchised hotels are also required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to

regularly report and monitor all sources of water use against an improvement goal as a Brand Standard. In addition to this, hotels are required to always have an active

water-related sustainability improvement project registered. We have created resources, which are available to all, to engage hotels in more efficient water management.

These are re-launched each year through Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to

reduce their environmental impacts. The resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members

can do to conserve it, as well as a video which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel

with Purpose 2030 Goals. We will achieve these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our

value chain: (1) hotels and guests, (2) suppliers and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Mexico Panuco

Stage of value chain

Other, please specify (Franchised hotels)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Panuco River basin as pollution/water quality with an average score of 4.7.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

CDP Page of 4724

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Direct operations Other, please specify (Brand Standards for water measurement and reduction goals)

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Mexico Santiago

Stage of value chain

Other, please specify (Franchised hotels)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Santiago River basin as pollution/water quality with an average score of

5.0, the highest level of risk.

Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our hotels in this basin in terms of water availability

and quality for drinking, cooking, bathing and other potable water needs, leading to the need for higher investment in mitigation strategies such as new practices and

technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices, making it more expensive to operate in the country

and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Direct operations Other, please specify (Brand Standards for water measurement and reduction goals)

Description of response

Our hotels are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required to regularly report

and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related sustainability improvement

project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are re-launched each year through

CDP Page of 4725

Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their environmental impacts. The

resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to conserve it, as well as a video

which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with Purpose 2030 Goals. We will achieve

these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value chain: (1) hotels and guests, (2) suppliers

and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

Turkey Tigris & Euphrates

Stage of value chain

Other, please specify (Franchised hotels)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Reduced demand for products and services

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the Tigres and Euphrates river basins as pollution/water quality with an

average score of 5.0, the highest level of risk. Impact on operations: Increased population and demand on municipal supply may contribute to higher long-term risk for our

hotels in this basin in terms of water availability and quality for drinking, cooking, bathing, and other potable water needs, leading to the need for higher investment in

mitigation strategies such as new practices and technologies. Declining water quality could also lead to increased costs for water treatment and increased water prices,

making it more expensive to operate in the country and reducing returns.

Timeframe

More than 6 years

Magnitude of potential impact

Medium-low

Likelihood

Likely

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact

Currently we are not able to publish an estimate for the potential financial impact of this risk.

Primary response to risk

Direct operations Other, please specify ((Brand Standards for water measurement and reduction goals)

Description of response

Our hotels, including franchises, are required to demonstrate continuous improvement around water management. Through LightStay, every hotel in our portfolio is required

to regularly report and monitor all sources of water use against an improvement goal. In addition to this, hotels are required to always have an active water-related

sustainability improvement project registered. We have created resources, which are available to all, to engage hotels in more efficient water management. These are

relaunched each year through Hilton’s ‘Earth Week’, a week in which all hotels are encouraged to raise awareness with their teams and review their plans to reduce their

environmental impacts. The resources include tips on how to reduce water use, a training course about both the importance of water and what Team Members can do to

conserve it, as well as a video which explains water stewardship. Hilton's long-term strategy to address high-risk geographic regions is addressed in our Travel with

Purpose 2030 Goals. We will achieve these goals through a comprehensive and coordinated water stewardship strategy that focuses on the following areas of our value

chain: (1) hotels and guests, (2) suppliers and services, and (3) communities and watersheds.

Cost of response

Explanation of cost of response

Costs are incorporated into ongoing operational expenditure at both the hotel and corporate level. This is expected to remain constant in future years unless this basin is

selected for future water stewardship pilot opportunities.

Country/Area & River basin

United States of America St. Lawrence

Stage of value chain

CDP Page of 4726

Other, please specify (Franchised hotels)

Type of risk & Primary risk driver

Chronic physical Declining water quality

Primary potential impact

Upfront costs to adopt/deploy new practices and processes

Company-specific description

Method of impact identification: The WWF Water Risk filter identifies the highest water risk in the St. Lawrence river basins as pollution/water quality with an average score

of 5.0, the highest level of risk.