Appendix 2
Case Study: Canadian Pacific Hotels

Canadian Pacific Hotels, the largest hotel company in Canada, owns and operates many of the high end Canadian hotels and resorts.  CP Hotels owns 17 of the 26 properties it operates and controls a total of 11,300 rooms. In the fall of 1990, CP hotels embarked on the project of developing a set of environmental standards for all its Canadian hotels.  The company conducted a detailed audit of all its hotels, asking hotel departments to submit information on every aspect of their impact on the environment.  Data was compiled on the supplies and energy used at each hotel, waste reduction and recycling programs and perhaps most importantly, on employee attitudes towards environmental reform.  Each of the company's 10,000 employees were invited to complete a questionnaire on their level of interest in the environment, and to supply suggestions on the greening of their workplace.  Of the hotel employees that responded, over 90% stated that they would strongly welcome the introduction of more environmentally friendly practices within their hotel.   Over 80% of respondents expressed a willingness to commit extra time and effort, without compensation, to boost the environmental performance of the company's operations (Canadian Pacific Hotels, 1997j). The employees at CP Hotels seemed very keen on implementing an environmental program.

Based on the survey results, employee suggestions and the recommendations of a professional environmental consultant, CP hotels developed a list of 16 goals to be attained at all hotels.  The goals were ambitious; they included reducing the amount of waste sent to landfill across the chain by 50%, launching an extensive recycling program and redesigning purchasing policies to ensure that waste is reduced at the source. Employees across the country have embraced the environmental program and integrated environmental friendly practices into their daily activities.

All CP properties have implemented an environmental program, but the activities undertaken by each hotel varies.  CP Hotels Phase One was completed which included implementing environmental programs which focused on reaching the 16 goals set out in the beginning.  An audit of each property to determine overall compliance to the program was undertaken and the results from 1991-1996 were assessed.  In Phase One many excellent initiatives were implemented by many CP Hotels. Their programs encompass an array of aspects from energy retrofitting, to waste reduction, recycling and water conservation.  A chain wide action plan was established for all hotels to follow.  The initiatives described below are results of the chain wide action plan.

SOLID WASTE

  CP Hotels have implemented many innovative waste reduction initiatives.

 Reuse

• CP Hotels has stated their commitment that no item that could be of value to someone else is ever consigned to the local landfill.  This ensures items like soap, linens, towels and furniture no longer required by the hotels are offered to local charities.
•  90% of all used soap is made available to local charities in Canada and the Third World. The Queen Elizabeth Hotel alone sent 4,200 lbs. of soap to humanitarian agencies in underdeveloped countries (Canadian Pacific Hotels, 1997h).
• CP Hotels are also in the process of phasing out disposable items such as sugar packs, individual creamers, disposable cups, etc.

Recycling
CP Hotels has implemented an aggressive recycling program in all their hotels.

•  SkyDome Hotel was the first hotel to start a guestroom blue box program.  In the program's first year, housekeeping collected 12, 120 beer bottles, 36, 564 beer cans and 21, 040 soft drink cans from just 70 suites (Canadian Pacific Hotels, 1997g). SkyDome Hotel inspired CP Hotels to turn this into a chain wide project.
•  CP Hotels has placed blue recycling boxes in all 11, 300 rooms and achieved 100% compliance with this objective in the first year of the program (Canadian Pacific Hotels, 1997h).
•  86% of all paper used in CP Hotel properties is recycled or kraft paper that meets or exceeds Canadian Environmental Choice Standards (Canadian Pacific Hotels, 1997h).
•  Over 80% of properties have succeeded in reducing their paper consumption by the 20% objective (Canadian Pacific Hotels, 1997h).
•  Deerhurst Resort has implemented a paperless audit system. Night audit reports are totally electronic, saving an entire box of computer paper per week.  The Resort has also implemented "Mainboss", a system to eliminate up to 74% of the paper used for preventative maintenance requests from its engineering department (Canadian Pacific Hotels, 1997g).

Organic Waste
CP has also implemented creative ways of dealing with their organic waste.

• The Royal York donates their waste food to Second Harvest for soup kitchens.  This leads to $250 000 in savings a year ($140 per ton for dumping) (Canadian Pacific Hotels, 1997g).
• The Palliser Hotel implemented a multi material recycling program that includes organic food waste.  The Hotel is now able to divert over 80% of its total waste stream from the landfill, with 75% to 80% going directly to the compost program (Canadian Pacific Hotels, 1997g).
• As part of Phase II, implementation of composting organic waste is a prime objective.  Their goal is to eliminate up to 60% of their current waste load through industrial composting.  New industrial composting technologies will enable large scale on site composting.  However, on site facilities at most CP properties presents a challenge.  Several downtown hotels and high elevation resorts have limitations on space, technological limitations or regulations which preclude the establishment of their own composting facility.  CP Hotels is trying to establish a partnership with other businesses and local municipalities to promote and establish shared compost facilities or regional composting centres.

ENERGY CONSERVATION

 CP Hotels has undertaken many exciting energy conservation initiatives.  Many hotels have undertaken energy retrofitting programs and according to the General Manger of the Royal York, the cost of energy efficiency investments can be recovered quickly (Natural Resources Canada, 1997).

• The Royal York invested $25 000 in an energy conservation program to replace and fix leaky stream taps.  Steam consumption levels were reduced from 160 million pounds to 130 million pounds per year, which translates into an annual cost savings of over $200 000 (Natural Resources Canada, 1997).
• The Chateau Laurier in Ottawa has retrofitted their steam pipes and light systems.  This has saved them approximately $100 000 per year (Natural Resources Canada, 1997).
• The Chateau Laurier has also installed a fully automated room climate control system.  Room thermometers are linked to the property computer system, so at each guest check out, the room temperature automatically goes down to the set point level (Canadian Pacific Hotels, 1997g).
• The Hotel Macdonald in Edmonton have installed motion sensors in all guest floor corridors to reduce lighting levels when not in use (Natural Resources Canada, 1997).
• The Banff Springs Hotel installed compact fluorescent lamps to replace the globes and flame shaped bulbs that were traditionally used in their old style lamps and chandeliers. These retrofits have not changed the look or feel of the hotel but have led to an electricity reduction of $140 000 per year (Natural Resources Canada, 1997).
• The Hotel Vancouver has installed steam traps in the laundry and heating systems.  Steam consumption in the hotel laundry system has dropped over 70%, saving $5000 per month and radiator efficiency in hotel rooms has increased by 75% (Natural Resources Canada, 1997).

Phase II:
CP Hotels Phase II program is focusing on implementing large scale energy conservation projects.  Initiatives are being planned such as installing automated energy control systems for heating, ventilation and air conditioning to keep the hotel comfortable while using a minimum of energy.  The estimated cost savings of this investment is $450 000 year.

Energy Performance Contracting (EPC)
The investments needed to implement the Phase II initiatives for energy conservation are quite significant and many hotels are not willing to cover the up front costs.  Energy Performance Contracting (EPC) is one option that hotels such as the Royal York have chosen.  With an EPC, Energy Service companies are paid from the savings that are generated from the reduced energy consumption.  If no cost savings result, the Energy Service company does not get paid.  This guarantees energy and cost savings.  It also makes the idea easier to sell to top management since it does not require an up front investment.

WATER CONSERVATION

CP Hotels is also undertaking some exciting initiatives for water conservation.

•  CP hotels have a corporate policy which requires toilet dams (bottles filled with sand) in all toilets that flush more than 2 gallons per flush.
• The Hotel Beausejour has installed toilet dams in 75% of its toilets to reduce the amount of water used per flush.  As a result the hotel saved more than 100 000 litres of water (Canadian Pacific Hotels, 1997g).
•  Seven CP Hotels are participating in a sheet change program where guests have the option of having their bed sheets changed on request or every other day.  Due to this initiative, the hotels are saving an enormous amount of water, energy and detergent.

STAFF EDUCATION

Staff education is key to a successful environmental program.  For CP Hotels staff commitment and involvement has driven their improvements.

Green Guide
CP Hotels developed their green guide during the development of their  environmental program.  This green guide was distributed to all their sites and acted as a guiding document on how to implement good greening practices.  The employees of CP Hotels have been very receptive towards this green guide as it has been a great help in implementing the environmental programs.  Due to the success of the green guide it is currently being revised to meet the changes occurring in CP Hotels.

In addition, CP Hotels also holds workshops to educate employees at every property about environmental issues.  As well, to build staff enthusiasm, CP has implemented an Employee Incentive Program where employees of the hotels with the greatest environmental improvements win prizes including merchandise and cash rewards.

ECOCONFERENCES

CP Hotels has also accounted for conferences in their environmental program.  As part of their Phase II program, CP Hotels has developed a conference package option that incorporates the highest standards of environmental stewardship into all aspects of the conference.  Their mission is to achieve a no waste meeting and conference that optimizes the opportunities for reuse, recycling and organic composting.  Initiatives would include using china mugs and dishes, organic foods from local producers in their menu and recycled stationary.  This conference option also includes Eco Programming, Eco Services and Eco Accommodations for people staying at the hotel.

ENVIRONMENTAL MANAGEMENT SYSTEMS (EMS)

CP Hotels has developed an Environmental Management System (EMS) to track environmental initiatives that have been taking place at all CP Hotels.  With this system, accurate reports and detailed audits of each department in every hotel across Canada can be provided.   Throughout 1997, CP Hotels conducted a nation wide environmental review to analyze each of the goals from its original 16 point Action Plan.  The review listed all of the methods used in CP hotels to reduce waste, conserve energy and water, etc.  Based on these results, CP Hotels has identified the best environmental practices across the country so that all the hotels can learn from each other's experiences.  CP makes information related to its EMS and current environmental information available on their company Intranet so it is readily accessible to the Environmental Committees of each hotel.

OTHER INITIATIVES

   CP Hotels has been developing many innovative environmental initiatives.  These initiatives such as Green Tours and Environmentally Responsible Golf Course Management are very important to promoting green management in their hotels.

Green Tours
 Recognizing the growing trend in ecotourism, CP Hotels introduced Green Tours.  This program is for guests searching ecotourism and soft adventure activities that are specific to each region of Canada.  These tours range from eagle watching in British Columbia to mountaineering in Alberta. The agencies that CP Hotels employ to undertake their Green Tours must meet criteria which ensure that they are environmentally responsible.  Some hotels are attempting to develop their own programs in relation to these Green Tours.  For example Banff Springs is working hard to achieve the Audubon Co-Operative Sanctuary Program accreditation.

Environmentally Responsible Golf Course Management
 CP hotels is one of Canada's largest golf course owners and is committed to setting the highest standard of environmentally responsible golf course management across the country.  It is also striving to lead the industry in a more ecologically sensitive approach to the stewardship of recreational lands.  CP Hotels has implemented advanced systems of integrated pest management, computerized water systems and more environmentally diverse and sensitive course design.  CP Hotels golf courses compost or redistribute all grass clipping, branches and leaves collected on the golf course and are developing trails for birdwatching for visitors who are not golfers.  This initiative is part of the Phase II program and is being developed in partnership with the Audubon Cooperative Sanctuary System of Canada, a program designed to optimize the use of golf course green space as a refuge and habitat for wildlife.

Canadian Pacific Hotels is well into their Phase II program.  The goals of this program are to identify the best practices and achievements from Phase I, to formalize the environmental management structure within CP Hotels, to motivate employees to continue to make positive changes and to educate the Green Teams at their properties of the new corporate strategy.  In Canada, CP Hotels is a leader in going green and has provided information and examples of practices that are environmentally and cost efficient.  CP Hotels is trying to improve their programs as seen with the specific initiatives that are to be undertaken in Phase II and their experiences are valuable to all hotel companies who wish to undergo this type of initiative.
 

References 

Bruns, R. 1996. "Growing Greener. Behind the Scenes of the Operational Revolution in Environmental Values at Canadian  Pacific Hotels." Lodging, April 1996: pp. 64-66.

Canadian Pacific Hotels 1997a.  Canadian Pacific Hotels Green Partnership Phase II.

Canadian Pacific Hotels 1997b. "Potato Peels to Petunias: Industrial Composting at Canadian Pacific Hotels."  Canadian Pacific Hotels Green Partnership - Phase II.

Canadian Pacific Hotels 1997c. "At Canadian Pacific Hotels, It's Waste Not, Want Not." Canadian Pacific Hotels Green Partnership - Phase II.

Canadian Pacific Hotels 1997d. "CP Green Tours" Canadian Pacific Hotels Green Partnership - Phase II.

Canadian Pacific Hotels 1997e. "ECO-MEET Me At Canadian Pacific Hotels". Canadian Pacific Hotels Green Partnership - Phase II.

Canadian Pacific Hotels 1997f. "Canadian Pacific Hotels Introduces EMS" Canadian Pacific Hotels Green Partnership - Phase II.

Canadian Pacific Hotels 1997g. Coast-to-Coast Success Stories.

Canadian Pacific Hotels 1997h. Canadian Pacific Hotels Green Partnership - Phase I.

Canadian Pacific Hotels. 1997i. "Growing Our Forests: Environmental Incentive Program." Canadian Pacific Hotels Green Partnership- Phase II.

Canadian Pacific Hotels 1997j. Green Partnership - Phase I Survey and Chain-wide Action Plan.

Dusbaba, B. 1997. "Canadian Pacific's Phase Two" Green Hotelier. October, 1997, Issue 8: p. 28.

Natural Resources Canada. 1997. "Canadian Pacific Hotels: Hospitality, Tradition and Good Environmental Stewardship." Energy Efficiency Case Studies, April 1997:1-6.

Noakes, S. 1992. "Award Winning Firms Lead by Example". Financial Post. October 26, 1992:p. S37.