Corporate Responsibility Report 2008

Burj Al Arab Jumeirah Beach Hotel Madinat Jumeirah

Key Highlights About the Report Executive Chairmans Introduction About Jumeirah Group Our Vision, Hallmarks and Guiding Principles Our global portfolio Growth and expansion Award-winning brands Our Strategic Approach to Corporate Responsibility Engaging our stakeholders Managing our responsibilities Embedding CR Reporting Corporate Governance Governance structure Risk management Engaging our Stakeholders Our Customers Listening to our customers Managing the customer experience Customer health, safety and security Customer privacy and information security Key customer performance results

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Our Suppliers Managing CR in the supply chain Engaging our suppliers Purchasing in the UAE Our Local Communities Economic benefits Engaging our local communities Our Environmental Responsibility Our environmental impact Managing our environmental impact Reducing our environmental impact Engaging our stakeholders on environmental issues Focusing on our Colleagues Our colleagues an overview Engaging with our colleagues Our HR strategy Recruitment Employment benefits Recognition programmes Learning and development Health and safety Diversity and equal opportunity Labour practices The Global Reporting Initiative G3 Index

17 17 17 17 18 18 18 20 20 20 20 22 25 25 25 26 27 27 28 28 30 31 31 32

Contents

Key Highlights

Focus Areas Corporate Governance, Risk Management and Ethical Compliance

Achievements 2007 - 2008 Enhanced the governance structure to better protect our stakeholders interests Established the CR Review Group as part of the governance structure to strengthen overall CR practices Developed the Enterprise Risk Management (ERM) framework to identify and manage key risks

Commitments for 2009 and Beyond Integrate ERM framework at all levels Further develop the Business Conduct and Ethics policy and guidelines to promote ethical behaviour at all

Stakeholder Engagement and CR Reporting

Enhanced the integration of CR and stakeholder management into overall Company Business Management framework Produced the first Jumeirah Group CR Report published in April 2009

Enhance the CR Report to better align it with the expectations of our stakeholders Align stakeholder engagement with the AccountAbility AA1000 Stakeholder Engagement Standard Seek external assurance on the CR Report following the AccountAbility AA1000 Assurance Standard

Our Colleagues

Increased CR awareness programmes Established the Learning and Talent Management Systems Launched the new HR Management System Launched ASPIRO fast-track career development programme Rolled out a formal policy and guidelines for the Colleagues Consultative Committee Improved the Colleague Opinion Survey Implemented the Jumeirah Group Saving and Retirement Plan Improved colleague healthcare scheme Achieved 92% in employee engagement score

Develop a global employer brand strategy that positions us as an employer of choice in the global market place Align stakeholder engagement with the AccountAbility AA1000 Stakeholder engagement standard Extend the Talent Management System to include colleagues at all levels Improve the delivery of learning and development opportunities at all levels Offer a competitive employment package

Jumeirah Group

Key Highlights
Focus Areas Our Customers Achievements 2007 - 2008 Established a dedicated partnerships department Established a dedicated R&D and Innovation departments Improved the customer satisfaction survey methodology Achieved third highest score in comparison to other hotels in JD Power 2007 studies Achieved the highest score in guest satisfaction with employees in comparison to other hotels in JD Power 2007 syndicated studies Commitments for 2009 and Beyond Further enhance and implement our core service and brand standards to meet customer expectations Further develop and enhance our R&D and innovation programmes

Our Suppliers

Introduced our first supplier satisfaction survey

Further engage with our suppliers to enhance CR in the supply chain in areas related to health, safety, environment, human rights and labour practices

Health, Safety and Environmental Management

Established our first carbon footprint baseline measurement Achieved 2.41% reduction in electricity consumption through conservation campaigns Achieved 1.46% reduction in water consumption through conservation campaigns Launched J-Wise and Go Green campaigns to raise colleague awareness on health, safety, and environmental topics

Develop a more robust carbon footprint measurement system Rollout a complete Environmental Management System (EMS) Enhance our health and safety performance

Our Local Communities

Increased colleagues participation in community related activities and memberships Increased the employment and development of UAE Nationals into senior management positions

Develop a Community Investment policy and guidelines for a more systematic approach to charitable giving and brand alignment Establish the Jumeirah Foundation. This charitable foundation will support a range of community welfare and educational programmes Further engage with local communities in order to understand their expectations 3 Jumeirah Group

About the Report

Our first Corporate Responsibility (CR) Report describes the most material and relevant CR aspects of our operations, determined through engaging with our stakeholders. The aspects covered are mainly social and environmental with some coverage of economic topics. For more on our stakeholder engagement, see page 9. The report is designed to follow the Global Reporting Initiative (GRI) G3 Guidelines (meeting an application level C). These Guidelines provide a globally recognized framework for sustainability reporting and are adopted by more than 1,500 companies around the world. The table on page 32 outlines the GRI Indicators covered and their location within the report. Our intention is to report on an annual basis while meeting GRI requirements in increasing detail. For further information on GRI visit www.globalreporting.org Unless otherwise stated, the data and information in this report are for the calendar year 2008 and covers our Dubai-based properties fully managed by Jumeirah Group and where Jumeirah Group has significant influence over operations. Our operations in London and New York as well as our sales offices are not covered within the scope of this report. Net sales and capitalisation are treated as commercially confidential information.

FEEdbACK We invite you to let us know how we are doing by contacting our CR team at: Jumeirah Group Dubai Outsource Zone, Building 3 PO Box 214159, Dubai, UAE Tel: +971 4 364 7777, Fax: +971 4 338 5674 Email: crteam@jumeirah.com GRI ApplICATIOn lEvEl GRId
In Accordance

2002

C+

B+

A+

Mandatory Optional

Self Declared Third Party Checked GRI Checked

Jumeirah Group

Direct Line

WITH A CLEAR vISIOn to becoming the industry leader, our ability to create value for our stakeholders is crucial for the sustainable growth of our company. We can only achieve this by earning the support and respect of our colleagues, our customers, our business owners and partners, our suppliers and our communities at large. EnGAGInG OuR STAKEHOldERS We must demonstrate this core organisational competence by bringing Corporate Responsibility (CR) into the heart of our operations and daily business activities. In the past two years we have focused our efforts on embedding the principles of CR into our strategic framework in order to make CR part of our operations and track our progress. We are at the beginning of a journey and our first CR Report allows us to establish our future commitments and will serve as a benchmark to demonstrate our progress. Through an open and honest dialogue we would like to invite our stakeholders to join us in this journey as we take CR to a higher level. SuSTAInAblE TOuRISm Travel and tourism is one of the worlds largest economic and employment sectors with consequently large impacts. Our current priority is to focus on the impact of our hotels and resorts, where we can have the greatest influence over creating positive outcomes. We are committed to investing in our local communities around the world and the tourism infrastructure. By creating unique employment and career opportunities, sourcing local products and services and helping build local supplier capacity, we aim to bring sustainable economic worth and empower our local communities. We also remain committed to improving the lives of the communities in which we operate and getting involved in broader community investment activities through establishing the Jumeirah Foundation (subject to Dubai Government approval). This charitable foundation will support a range of community welfare and educational programmes, lead by our Colleagues of Exceptional Value. All guests staying at Jumeirah Hotels & Resorts will also have an opportunity to contribute to it. We have also focussed on our carbon footprint and are looking at ways to measure the environmental impact of our operations. In this way we can specify an increasingly ecological approach to the building of new hotels and resorts whenever we talk to owners and investors.

mAnAGInG CHAnGE Although this report, published in April 2009, covers our performance data until the end of 2008, we are mindful of the current global economic downturn and the impact this has had on our businesses in the first quarter of 2009. While our pipeline of future developments remains healthy, we are facing further delays in the dates for new hotel openings. A review of our overall organisation structure and cost-base has been initiated in February 2009. Our aim is to make the necessary changes to our existing business model and workforce levels to support the different degree of business we are experiencing now and anticipate in the future. We care deeply about the welfare of our colleagues and we will ensure that job losses are managed professionally, with the utmost respect and integrity. We have made provisions to ensure mechanisms of support are in place, including career transition assistance to help affected colleagues move forward in their professions. Our Hallmarks, Guiding Principles and commitment to CR continue to underpin our company throughout this difficult period. While these are challenging times for all, I remain confident in the successful future that lies ahead for Jumeirah, as well as our ability to achieve the growth targets we have set out. We have a strategy in place and are working towards it. We have built up a great company, thanks to our colleagues and the support of our parent company Dubai Holding, and will continue to do so. In the 2009 CR Report, we will communicate our progress and actions taken. I look forward to receiving your feedback on how we can further enhance our approach to Corporate Responsibility for the benefit of Jumeirah Group, and society at large.

Executive Chairmans Introduction

Gerald Lawless Executive Chairman, Jumeirah Group

Jumeirah Group

About Jumeirah Group

Jumeirah Group was founded in Dubai in 1997, with the ambition of becoming a global hospitality leader. Just over ten years later, that ambition has been realised, with the Groups portfolio regarded as among the most luxurious and innovative in the world. The Jumeirah brand can be summarised as: A global brand with a name synonymous with luxury A dedicated team of professionals with broad experience in all aspects of hotel management to offer support from the development phase to the daily operations A strong distribution system with 11 sales offices in key locations around the world A strong emphasis on a personalised approach to the owner/ operator relationship

OuR GuIdInG pRInCIplES Our Guiding Principles play a major part in Jumeirah culture. They are the foundations of our business and bind us together in a united effort, not just to uphold them, but to celebrate them as a good way of living life. They explain how we function: InTEGRITY We act with honesty and sincerity in everything we do. We say what we mean, do what we say and build confidence in our team. TEAMWORK We work towards common goals through open communication, mutual support and win-win attitudes. We respect our differences and build upon our strengths. RECOGnITIOn We ensure that peoples individual needs and successes are supported and recognised. InnOvATIOn We are open minded, challenging conventional thinking, improving our processes and implementing new ideas faster than our competitors. COnTInUOUS GROWTH We provide an environment where our colleagues and our business can flourish and grow. PEOPLE FOCUS We focus on our colleagues, customers and business associates and they acknowledge us as preferred partners.

OuR vISIOn, HAllmARKS And GuIdInG pRInCIplES

Our success emanates from our Hallmarks, Guiding Principles and our commitment to STAY DIFFERENTTM. These have been fundamental in inspiring every colleague in Jumeirah to live and breathe our company philosophy and work so hard to fulfil it. OuR vISIOn Jumeirah Groups vision is to be a world class luxury international hotel management company, committed to being the industry leader in all of our activities through dedication to our stakeholders; colleagues, customers, business partners and owners. OuR HAllmARKS Our company Hallmarks have been the basis for our success in the past, and they will build the path to our future. The Hallmarks are reflected in the design of our beacon and they will remain at the core of our operating philosophy along with STAY DIFFERENTTM. I will always smile and greet our guests before they greet me My first response to a guest request will never be no I will treat all colleagues with respect and integrity

STAY dIFFEREnTTm
Consistent Individuality

STAY dIFFEREnTTm is the driving force behind everything we

do. It motivates everyone in Jumeirah Group to build rewarding relationships through creative thinking and innovative strategy. Our guests are looking for something different, and value the unique experiences of our luxury hotels, striking architecture and thoughtful design. We inspire them with passionate service, delivered by our multinational team of warm and friendly colleagues.

Jumeirah Group

OuR GlObAl pORTFOlIO

Our portfolio comprises over 3,065 luxury suites, rooms and apartments within 11 luxury hotels, resorts and serviced residences. The portfolio also includes waterparks, spas, restaurant division, stores, leased offices and a world class educational institution.. While our main activity is managing luxury hotels and resorts, Jumeirah Group also manages Jumeirah Living, a luxury brand of serviced residences; Talise Spa, our global spa brand; The Taste Department, our restaurant division; the thrilling Wild Wadi waterpark; The Emirates Academy of Hospitality Management; and Jumeirah Retail, which runs 15 stores as well the luxury online store jumeirahcollection.com. For a complete description of our portfolio and global strategic partnerships please visit jumeirah.com. JUMEIRAH HOTELS & RESORTS PORTFOLIO BREAKDOWn
(December 31st 2008) JUMEIRAH HOTELS & RESORTS Currently Managed Dubai London New York Hotels & Resorts Rooms & Suites 7 2 1 2208 307 509

Virgin Islands, China, Indonesia, Maldives and Thailand. We eagerly anticipate the grand opening of Jumeirah HanTang Xintiandi in Shanghai Jumeirahs first hotel in the Asia Pacific region. Please visit jumeirah.com/developments for the latest news and updates on our expanding portfolio.

THE nEw JumEIRAH GROup

In January 2008, Dubai Holding Commercial Operations Group created two wholly owned subsidiaries Jumeirah Group LLC (management activity) and Jumeirah Assets LLC (ownership) to separate the management and operation of hotels from the ownership of assets. This decision, strategically driven by Dubai Holding, has allowed us to re-focus in line with an industry benchmarked asset-light management model to excel in our key area of expertise operating hotels, resorts and associated hospitality businesses. We now focus on management agreements to operate the business on behalf of the owner for negotiated and agreed fees.

About Jumeirah Group

Hotels & Resorts Dubai Holding Commercial Operations Group LLC Serviced Apartments & Residences Branded Restaurants Spa Theme Parks Owned Retail Shops & Collection Education (Management Activity) (Ownership) Facilities & Real Estate Management

Under development with signed Management Agreement (MA) Abu Dhabi, Dubai (3), Bahrain, Kuwait, Oman, Qatar, Jordan, China (3) Indonesia, Maldives, Thailand, London, Scotland, Spain, Argentina, US Virgin Islands,

GROwTH And ExpAnSIOn

We embarked upon an ambitious strategy to expand across the Middle East, Europe, the Americas and Asia. Our objective is to have 60 hotels either in operation, under development or under construction by 2012. Development initiatives are focused on highend projects that will positively enhance the Jumeirah brand as well as broaden the scope of the Group. We have ambitious expansion plans to grow our portfolio of luxury hotels and resorts into key gateway cities and aspirational resort destinations worldwide. Several luxury five-star properties are currently under development in the United Arab Emirates, Bahrain, Jordan, Kuwait, Oman, Qatar, England, Scotland, Spain, Argentina, US
7 Jumeirah Group

OTHER OPERATIOnAL CHAnGES In 2007/8 In addition to the major ownership restructure from asset owner/ operator to management company, several major operational changes were also undertaken in 2007 & 2008. These included the following: Management restructure by regions headed by Senior Vice Presidents (SVPs) in Middle East & North Africa (MENA), the Americas, Asia Pacific, and a Regional General Manager in the UK. This has empowered regional teams to focus on local strategies, supporting the business and new openings The closure of Jumeirah Beach Club in early January 2007 for a significant redevelopment. A total of 291 colleagues were reassigned within Jumeirah and 20 colleagues resigned to return to their home countries. The opening of Jumeirah Living in Dubai offering luxury serviced residences. The ongoing development of Jumeirah Restaurants, now called The Taste Department, with the opening of Sana Bonta at the Dubai International Financial Centre and the noodle house restaurants in several locations in Dubai as well as in Abu Dhabi and Jordan. The business also opened a Bytes restaurant in Dubai. The reopening of Jumeirah Lowndes Hotel following a complete renovation and the addition of nine further rooms on a new sixth floor.

AwARd-wInnInG bRAndS
In part, our success in 2008 was reflected in numerous international accolades including: Best Business Hotel Chain in the Middle East for the third consecutive year from Business Traveller UK magazine; Best Business Hotel Brand in the Middle East/Africa for the fifth consecutive year at the annual Business Traveller Asia-Pacific Awards; and Best Hotel Chain in the Middle East from Global Traveller magazine in the US for the second consecutive year. Our commitment to Corporate Responsibility and Business Excellence was further demonstrated at the 2008 Annual Dubai Holding Excellence Awards where we received Gold status and won in six other categories: Best Corporate Responsibility; Best Leadership; Best Employee Satisfaction; Best Customer Satisfaction; Best Management by Process; and Best Employee. In the same year we were awarded third place in the first CSR Arabia Awards in the Large Company category. Wild Wadi waterpark, Jumeirah Beach Hotel and Jumeirah Emirates Towers were declared excellent in quality at the prestigious Dubai Quality Awards 2008 for the tourism sector. The coveted Gold Award (the highest award a company can receive) was received by Wild Wadi waterpark. Jumeirah Beach Hotel won the Dubai Quality Award and Jumeirah Emirates Towers collected the Dubai Quality Appreciation Award. For a complete list of awards please visit jumeirah.com.

About Jumeirah Group

Jumeirah Group

Jumeirah Bab Al Shams Desert Resort & Spa

Our strategic approach to Corporate Responsibility (CR) is summarised in four key components: Engaging our stakeholders to understand their expectations, in order to exceed them and add value Managing our key economical, social and environmental impacts, risks and opportunities Embedding responsible business practices and standards in our day-to-day business activities Reporting back to stakeholders on our progress

LISTEnInG TO OUR STAKEHOLDERS Our Strategic Business Units (SBUs), Strategic Support Units (SSUs) and individual colleagues are responsible for identifying their stakeholders and the needs and expectations of those stakeholders. The below table summarises our main stakeholder groups, typical engagement pathways and stakeholder expectations.

mAnAGInG OuR RESpOnSIbIlITIES

Our CR and business strategies are inseparable. To ensure that sustainable business practices are managed effectively, we are increasingly integrating our key stakeholder expectations and the CR strategies to fulfil those expectations into our Business Excellence Process Framework. Through this Process Framework, the Jumeirah Group Board of Directors sets the Groups strategy recognising its accountability to stakeholders. The strategy takes into consideration data and information obtained from organisational performance analysis, market and competitor analysis, benchmarking and risk/ opportunities assessment. The resulting performance targets and indicators are managed through the Jumeirah Group Balanced Scorecard and One Page Strategic Plan.
Typical Engagement Pathways Direct Line events (at least once per year) TrustLine (confidential hotline) Roundtable Lunches with Chief Officers Chit-Chat (bi-monthly internal newsletter) Mercury (intranet) Annual Colleague Opinion Survey Colleague Consultative Committees (bi-monthly)

Our strategic approach to Corporate Responsibility

EnGAGInG OuR STAKEHOldERS

We define stakeholders as those groups, individuals, or organisations which are affected by or can affect Jumeirah in delivering its objectives. For Jumeirah Group, they include existing or potential colleagues, customers, business owners, suppliers and local communities. We also consider the environment a stakeholder, represented by nongovernmental organisations, professional bodies and regulators.
Stakeholder Groups Expectations

Our Colleagues

Career growth and development Competitiveness of our pay and benefits Social welfare Positive impact on the community

Our Customers (e.g. guests and business partners). Our Business Owners (e.g. Dubai Holding and investors)

High quality products and services Positive impact on the community Risk management Consideration of the economic, social and environmental impacts of our operations Financial performance Ethical and transparent purchasing and procurement practices Local employment and career development opportunities Managing our economic, social and environmental impacts Managing our social, economic and environmental impacts

Annual BigTalk events with customers Daily Customer Satisfaction Surveys Respresentation in Jumeirah Group Board of Directors Monthly meetings with business owners Dubai Holding meeting councils Supplier forums Supplier Satisfaction Survery Joint community partnership forums Joint taskforces and committees Media relations events and meetings 9 Jumeirah Group

Our Suppliers Our Local Communities (e.g. regulators, media, professional bodies and community members) Our Environment (e.g NGOs and regulators)

Joint NGO partnership forums

Our strategic approach to Corporate Responsibility

In late 2008, the Groups Balanced Scorecard and One Page Strategic Plan evolved to represent the four result areas of the EFQM (European Foundation for Quality Management) Excellence Model; Customer Results, People Results, Society Results and Key Performance Results. The measures and targets associated with each result area are reviewed on a monthly basis by senior management and reported to the Board quarterly. By understanding results we can identify our economic, social and environmental impacts, risks and opportunities. DEvELOPInG OUR WAYS OF EnGAGInG With our diverse lines of business and growing stakeholder groups, as we enter new markets, our challenge is to clearly identify and prioritise the issues most relevant to each stakeholder group in order to better inform our strategic decision making and CR reporting. Our long term objective is to develop our stakeholder dialogue based on the framework outlined by the Accountability AA1000 Stakeholder Engagement Standard. This will help us to align our actions and communications with the expectations of our stakeholders. GROUP CR TEAM In 2008, we formed the CR Review Group chaired by the Chief Operating Officer (COO), Frank Vanderpost, to ensure that our CR strategy is embedded within the operations framework of the business. The Group CR Director, Mohammad Al Ghaffari, reports directly to the COO who is a member of the Chief Executive Officers (CEOs) Committee with responsibility for CR. In addition, each property has a CR Champion who meets bimonthly at our CR Network meetings. Our CR performance is reported quarterly by the CEO of Jumeirah Group, Guy Crawford, to Jumeirah Group LLC Board of Directors through the Executive Chairmans Committee. The CEO is ultimately accountable for the Groups CR performance.

Our Board provides guidance based on global and local business environment, legal requirements and societal values. Board members also consider alignment of systems to Vision, Guiding Principles and Hallmarks, core company policies, defined authority levels and recommendations from specialist committees such as the Corporate Responsibility and Health & Safety Review Groups. CR TRAInInG CR education through training is essential to bring cultural and behavioural change toward improving our CR performance. In 2007, we launched our first internal and customised CR workshop aimed at senior and middle management. A total of seven customised workshops were conducted at Jumeirah Centre for Training and Development with attendance by over 100 management colleagues. We have also incorporated a CR chapter in our company induction programme and our colleague information handbook - Navigator. The chapter highlights the general concepts of CR as well as Jumeirahs approach to CR for all new colleagues. In addition, we encourage colleagues to attend various CR related workshops and seminars provided externally and at The Emirates Academy of Hospitality Management.

REpORTInG
The final component of our approach to CR is our commitment to transparency by reporting back to stakeholders on our progress. Transparency is critical to our operations and achieved through the engagement activities outlined later in this Report, in addition to internal and external publications and communications that are part of the way we operate. We are also committed to disclosing information on our global activities in increasing detail and will follow the Global Reporting Initiative (GRI) G3 Sustainability Reporting Guidelines. To strengthen our CR Report, we will seek an independent assurance of the report. This requirement is stipulated in our CR Review Group Terms of Reference.

EmbEddInG CR
We have described above how our management structure embrace CR issues. We are now increasingly building CR related practices into policies and training programs. POLICY FRAMEWORK Key company policies for responsible and sustainable business practices are developed, reviewed and updated accordingly at corporate, regional and individual property levels to ensure continued alignment with the strategy.
Jumeirah Group 10

Jumeirah Emirates Towers

Corporate Governance

We believe that our economic performance can only be enhanced through transparent and ethical business practices and the establishment of a corporate culture and strong corporate governance framework which embeds Corporate Responsibility in all of our endeavours. In 2007, the Chairman of Dubai Holding, His Excellency Mohammad Al Gargawi, restructured the organisation by establishing separate Boards of Directors for each of the entities, including Jumeirah Group, to enhance accountability. At the same time, entity CEOs were appointed as Executive Chairmen, and new CEOs were appointed to ensure adequate succession planning was underway. In addition to chairing the Board, the role of the Executive Chairman of Jumeirah Group is to assist the newly appointed CEO to oversee all operational aspects including all project development. The first meeting of the Jumeirah Group Board of Directors was held in June 2007. Subsequent meetings have seen the appointment of four highly experienced Independent Non-Executive Directors with strong track records in the hospitality industry. These appointments are highly significant and will increase the depth and diversity of views and backgrounds on the Board, to enable a more effective decisionmaking processes. The Jumeirah Group Board of Directors has also delegated operational authority to three separate Committees, which meet on a quarterly basis (see diagram on page 14). The newly formed committees are as follows; Audit and Risk Management Committee: Consists of three Independent Non-Executive Directors and the Chief of Group Audit and Risk Management of Dubai Holding. Remuneration and nominations Committee: Consists of three Independent Non-Executive Directors and the Chief HR Officer of Dubai Holding and advises the Board on Remuneration matters and on the composition of the Board and Board committees. Executive Chairmans Committee: Consists of the Executive Chairman, the Chief Executive Officer, the Chief Operating Officer, the Chief Development Officer, and the Chief Legal Officer. The Executive Chairmans Committee delegates authority to the various working groups of Jumeirah Group through the Chief Executive Officers Committee. Committees, Review Groups and other stakeholder engagement pathways outlined on page 9, provide our business owners and colleagues with the mechanism to make recommendations to the Jumeirah Group Board of Directors.

RISK mAnAGEmEnT
Risk management is a key component of Jumeirahs CR. It is determined by the ability to assess and take accountability for managing the main economic, social and environmental risks and insist on practices that will enable us to manage our risk effectively. In 2008, we established a Risk Management department to carry out risk management activities across our businesses. Our Enterprise Risk Management (ERM) methodology draws on the framework of the Committee of Sponsoring Organisations of the Treadway Commission (COSO) which provides a structured and transparent approach to managing risk. This includes a strong governance focus established at Board level, risk information systems and reporting. As a direct consequence of the Groups growth and expansion, locally and internationally, we face more and increasingly complex risks. Jumeirah Group revenues are increasingly affected by the economic and political stability of those countries in which we operate. Therefore, we will continue to strengthen our risk management approach to ensure all significant areas of risk are identified, understood and effectively managed. BUSInESS COnDUCT AnD ETHICS We are committed to upholding rigorous ethical, professional, and legal conduct in all of our activities and relationships in order to maintain our reputation for honesty, respect and integrity in line with our Hallmarks and Guiding Principles. We will further develop and enhance our Business Conduct and Ethics policy and guidelines to promote ethical behaviour at all levels.

Jumeirah Group

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BOARD OF THE DIRECTORS OF JUMEIRAH GROUP LLC Gerald Lawless (Executive Chairman) Fadel Al Ali (Non-Executive Director) Farhan Faraidooni (Non-Executive Director) Saeed Al Muntaliq (Non-Executive Director) Sir David Michels (Independent Non-Executive Director) Alan Parker (Independent Non-Executive Director) Michael Williams (Independent Non-Executive Director) Ghaith Al Ghaith (Independent Non-Executive Director)

Corporate Governance Corporate Governance Structure of Jumeirah Group LLC

AUDIT AnD RISK MAnAGEMEnT COMMITTEE Chairman: Alan Parker (Independent Non-Executive Director) Sir David Michels (Independent Non-Executive Director) Michael Williams (Independent Non-Executive Director) Abdulrahman Al Harab (Chief of Group Audit & Risk Management - Dubai Holding)

REMUnERATIOn AnD nOMInATIOnS COMMITTEE Chairman: Sir David Michels (Independent Non-Executive Director) Alan Parker (Independent Non-Executive Director) Michael Williams (Independent Non-Executive Director) Erik Slotboom (Chief Human Capital Officer - Dubai Holding)

EXECUTIvE CHAIRMAnS COMMITTEE Chairman: Executive Chairman Chief Executive Officer Chief Operating Officer Chief Development Officer Chief Financial Officer Chief Legal Officer

KEY Committees of the Board of Directors

RISK REvIEW GROUP Chairman: Chief Financial Officer

Committees to whom the Board of Directors has delegated authority Committees of the Executive Chairmans Committee has delegated authority Working Group reporting to a Committee of the Board of Directors Working Group reporting to a Chief Executive Officers Committee

CHIEF EXECUTIvE OFFICERS COMMITTEE Chairman: Chief Executive Officer All other Chief Officers of the Jumeirah Group

CORPORATE RESPOnSIBILITY REvIEW GROUP Chairman: Chief Operating Officer

HEALTH & SAFETY REvIEW GROUP Chairman: Chief Security Officer

InFORMATIOn TECHnOLOGY REvIEW GROUP Chairman: Chief Information Officer

HUMAn RESOURCES REvIEW GROUP Chairman: Chief Human Resources Officer

BRAnD STAnDARDS REvIEW GROUP Chairman: Chief Sales and Marketing Officer

PRE-OPEnInG REvIEW GROUP Chairman: Chief Development Officer

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Jumeirah Group

Engaging our Stakeholders

Our Customers

Transparency and open dialogue lay the foundation upon which the trust of our colleagues, customers, business partners, owners and other stakeholders are built upon. Therefore, it is critical to maintain and grow our reputation established over a decade as a company dedicated to dialogue and stakeholder engagement.

perception. In addition to this, we also conduct regular internally administered satisfaction surveys for some of our smaller customer groups such as the students at The Emirates Academy of Hospitality Management and tenants in Jumeirah Emirates Towers Offices and Boulevard. WHAT OUR CUSTOMERS HAvE TOLD US Based on the feedback from our customers, we have found that they value: High quality and personalised products and services Positive impact on the community

In this section we will outline our approach to engaging with each key stakeholder group. This builds on our strategic approach outlined on page 9. Our goal is to further develop our stakeholder engagement to align with the AA1000 Stakeholder Engagement Standard.

OuR CuSTOmERS
Our STAY DIFFERENTTM brand promise reflects our customers desire to be recognised as an individual and engage them in real life personal experiences. True luxury is emotional, memorable and above all personal, and this is what we believe todays sophisticated luxury traveller relates and responds to.

mAnAGInG THE CuSTOmER ExpERIEnCE

THE GUEST EXPERIEnCE Our Hallmarks are the key to delivering our service. Our Customer Satisfaction Index (CSI) shows that the consistent applications of our Hallmarks results in more than ten percent increase in overall guest satisfaction. We develop products and services based on guest needs and preferences, which we gather and store in secure guest profiles. Profiles are used to help us deliver our commitment to a personalised guest experience. Our hotels and resorts also design and deliver repeat guest amenity programmes. We have various ways of measuring how effectively we produce, market, sell and deliver our products and services and these results form the basis for improvements. Examples include internal and external quality reviews, conducted every six months; quarterly mystery guest assessments; Key Performance Indicators including market share, occupancy rate and Revenue Generation Index; Customer Satisfaction Index (CSI) which measures all aspects of the guest experience; and guest feedback which is collected and reviewed daily at individual properties at executive level. We regularly assess our performance against the above measures to identify gaps and prioritise improvement activities and resources at corporate, regional, property and departmental levels. STRATEGIC ALLIAnCES AnD PARTnERSHIPS In 2008, we established a dedicated partnerships department with team members responsible for global, regional and loyalty programme (Sirius) marketing partnerships. Global strategic partnerships have been established within the travel, finance, retail

Our customers are classified into hotel guests, clients who purchase bulk room nights, conferences or events; and partners such as tour operators and airlines.

lISTEnInG TO OuR CuSTOmERS

Our approach to guest relationships focuses on multiple sources of continuous feedback through the availability of regular interaction channels such as daily, weekly and monthly newsletter, courtesy calls and visits, Hotel General Managers cocktail receptions and organized activities and special events. Other examples of feedback channels include the yearly BigTalk, a program of joint customer and colleagues workshops to help understand what existing and potential customers think of our products and services and how we can innovate to attract new guests as we grow the Jumeirah brand and STAY DIFFERENTTM philosophy. We also conduct Customer Satisfaction Surveys, which consist of daily electronic questionnaires capturing all aspects of the guest experience. Since June 2007, we have engaged JD Power, a leading market research company in the hospitality industry, in order to survey our guests and provide monthly reports summarising guest
Jumeirah Group 14

and luxury industries. Partnership marketing uses the relationships formed with key partners to support, promote and position the brand through varying initiatives. Partnerships are acquired based on a set criterion such as brand fit, global reach, transparent and honest relationship. Read more about our global strategic partnerships by visiting jumeirah.com.

Monthly CME (Continuing Medical Education services) facilitated by a physician are conducted to ensure our paramedics are up to date within the practice. In addition, surprise simulation exercises are externally facilitated and conducted every month at each property. The simulations test the response time for medical treatment and general medical emergency response. Our swimming pool and potable water treatments and checks are in line with World Health Organisation (WHO) standards. We also have a Work Permit system to ensure external contractors comply with health, safety and environmental requirements.

Engaging our Stakeholders Our Customers

CuSTOmER HEAlTH, SAFETY And SECuRITY

Health, safety and security for our customers, colleagues and subcontractors are paramount and comprehensive measures are in place at our properties. Our health, safety, and security functions ensure compliance with statutory requirements through developing policies and procedures across the company. Related performance and actions for improvement are reported quarterly to the Board by the Chief Executive Officer. A comprehensive schedule of audits, inspections and drills is carried out both internally and by independent bodies to check awareness, compliance and readiness to deal with emergencies. Colleagues are trained in fire, high level security threat scenarios and emergency evacuations with regular emergency simulated evacuations and drills are conducted across all of our properties. Restaurants and kitchens in Dubai operate in accordance with Dubai Municipality health and hygiene standards and are regularly audited both internally and externally. Our lifeguards and paramedics play a key role in ensuring safety and quick response to incidents. In Dubai, lifeguards are trained through the International Pool and Waterpark Lifeguard Training programme operated by Jeff Ellis & Associates, Inc, world-renowned specialists for aquatic safety risk management. In addition, each property is randomly audited four times a year and receives a rating based on total lifeguard performance. Since 2001 we have met or exceeded the set standards of this programme. All our paramedics are licensed in Intermediate Life Support which is renewed yearly and registered with the Dubai Department of Health and Medical Services (DOHMS). Every two years they undergo compulsory training to ensure that they stay current. Compulsory training includes BLS (Basic Life Support) refresher training and ACLS (Advance Cardiac Life Support). PALS (Paediatric Advance Life Support) training is also offered for our paramedics.

CuSTOmER pRIvACY And InFORmATIOn SECuRITY

In 2007 we established a dedicated IT Security function to better manage access control, telecommunications, security architecture, application development, physical security, business continuity and disaster recovery planning. IT and data security is audited by Dubai Holding and an independent auditing firm and we benchmark against best practices documented by a leading research company. Guest data is protected in accordance with local legislative requirements.

KEY CuSTOmER pERFORmAnCE RESulTS

We measure our customer service and satisfaction results through customer satisfaction surveys, telephone test calls and mystery guest assessments. CUSTOMER SATISFACTIOn SURvEYS On comparing the JD Power proprietary survey results with the syndicated survey results, Jumeirah ranks third among the most established hotel companies in the world. Jumeirahs index for customers satisfaction with employees ranks first in comparison to other hotel companies as per JD Power & Associates 2007 syndicated studies. The index is calculated based on a number of questions that relate to employee attitude, service levels, courtesy and personalised service. Also, as part of the Dubai Holding Excellence Award, an independent research company is engaged by Dubai Holding every year to measure the customer satisfaction levels in each entity. The results of the survey conducted in 2007 indicated that Jumeirahs customer satisfaction levels are well over the average of the top ten percent of hotel companies in Europe, Asia Pacific and North America.
15 Jumeirah Group

TELEPHOnE TEST CALLS Telephone Test Calls measure the efficiency of our Manage Enquiries and Reservations process across our properties and Central Reservations with approximately 200 test calls per month, conducted by the International Federation for Hospitality (IFH). In line with our new Core Service Standards criteria changes were made at the start of 2007, supported by a comprehensive, company wide training programme based on lessons learned in 2006. We have seen improvement in most areas during 2007, particularly in room reservations and food & drinks services due to the structured deployment of these new standards. MYSTERY GUEST ASSESSMEnT Our Mystery Guest Assessment is conducted by Leading Quality Assurance (LQA), the global leader in hospitality mystery shopping, carrying out assessments for over 1,000 leading luxury hotels worldwide. As a minimum, we conduct bi-annual assessments and a number of our properties have chosen to have more frequent LQA assessments. Typically a single visit covers between 1,000 and 1,500 standards. SUMMARY OF CUSTOMER KEY PERFORMANCE RESULTS
Performance Indicator Customer Satisfaction Index (CSI)** Mystery Guest Assessment (MGA) score Telephone Test Calls (TTC) score * Data applies to Gulf region. ** 2006 & 2007 average CSI score was captured using our older survey methodology and new survey methodology (July to December 2007) which is conducted by JD Power & Associates. The new index score is based on a 1000-point scale. 2006 94.60% N/A 65.44% 2007 93.71% (1st half) 821.5 (2nd half) 88.4% 77.06% 2008 812.6 87.4% 88.51%

Engaging our Stakeholders Our Customers

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We foster a transparent, ethical and mutually beneficial relationship with our suppliers. This is demonstrated in our tendering process. We will continue to engage with our suppliers to address CR in the supply chain including practices related to local sourcing, human rights, labour standards, health, safety and environment. Our centralized Supply-Chain & Logistics (SC&L) department is an integral part of Jumeirahs continuous success in providing high quality goods and services to its guests. We currently have more than 4,000 suppliers of which 2,061 were active suppliers in 2008. Approximately 200 suppliers make up 80% of Jumeirahs spend on goods and services.

chain process to be above average. We intend to carry out this survey twice a year with our food suppliers and extend it to other suppliers during 2010.

puRCHASInG In THE uAE

In 2008 we placed over 359,000 purchase orders, one percent of which were sourced to local suppliers with purchasing value of about one percent of the annual spend. Purchased products include camel milk, fresh milk, lamb meat, dates, potatoes, tomatoes and fish. Due to the UAE having a relatively young market and not producing a large variety of products; the majority of our purchases are international products sourced through agents in Dubai. However, we are actively working with SME (Sheikh Mohammed Entrepreneurs, also known as Sheikh Mohammed Bin Rashid Establishment for Young Business Leaders) to increase their participation in the supplier base to levels more reflective of the diverse local business community. Jumeirah includes SME suppliers in its tendering process, giving them an equal opportunity of winning Jumeirahs business. In an environment where strategic sourcing efforts can make it difficult for small niche companies to play a role, it has been identified that on occasions these suppliers are not competitive or are unable to meet the volumes required to meet Jumeirahs needs. We will actively seek to identify these suppliers and match their unique capabilities to meet Jumeirahs varied business needs. As suppliers grow and strengthen their businesses, jobs will be created and economic development opportunities are expected to flourish within the local community.

Engaging our Stakeholders Our Suppliers

mAnAGInG CR In THE SupplY CHAIn

Our corporate buying policy seeks to ensure the planned, efficient, financially beneficial and ethically sound provision of high quality, best value products and services. The ethics Jumeirah follows when engaging a supplier are demonstrated in our tendering process which follows the below principles: Equal opportunities for all suppliers Transparency in documentation Stability in our commercial dealings Cordial and professional treatment Furthermore, all new suppliers must meet several health, safety and legal requirements in order to be considered by Jumeirah.

EnGAGInG wITH OuR SupplIERS

We have invited our top suppliers to our Supplier Forum. These forums allow us to discuss with our suppliers any strategic changes within SC&L department or Jumeirah which may affect the procurement process. We also provide our suppliers the opportunity to discuss any challenges or suggestions to improve both of our services. In 2008 we introduced the Supplier Satisfaction Survey enabling our suppliers to provide their opinion on our supply-chain practices and processes. This initiative was targeted at our food suppliers who account for 45% of our purchasing volume. About 70% of food suppliers surveyed consider the performance level of our supply17 Jumeirah Group

Engaging our Stakeholders Our Local Communities

We are committed to being a responsible neighbour by contributing to the welfare of our colleagues and the wider business and local communities in which we are a part of. When engaging with our local community stakeholders, we found they expected us to make a positive impact in our communities, provide local employment and career development opportunities and manage our environmental impacts, with a focus on climate change. We have actively worked with various community stakeholders this year to meet these expectations, and our focus next year will be on adopting a more integrated approach to community investment and establishing the Jumeirah Foundation. Our local communities are made up of diverse groups with an interest in Jumeirahs operations. Such groups include non-government organizations (NGOs), regulators and professional bodies.

who come from poorer backgrounds. Based on the World Bank definition of poverty and extreme poverty lines, this amount can take more than 30,000 people out of poverty, or more than 60,000 people out of extreme poverty.

EnGAGInG wITH OuR lOCAl COmmunITIES

This section outlines how we work with our local community stakeholders to develop our communities. Information on how we provide local employment opportunities for UAE Nationals outlined in the section Our Colleagues and about how we are working to manage our environmental impacts and engage our local communities in environmental issues in the section Our Environmental Responsibility. There are a number of both formal and informal methods by which we engage and interact with members of our local society. We build partnerships with community bodies to engage on specific topics of mutual interest both to us as an organisation and to the local community. This is achieved by either taking part in or committing resources to joint initiatives. In addition, each of our properties is empowered to initiate relationships with local organisations in order to build strong, long-lasting positive relationships with our local communities. Some of the main engagement pathways and joint initiatives are described below. PARTnERSHIPS WITH THE LOCAL GOvERnMEnT Jumeirah Group is a founding member of the Emiratisation Task Force through the Dubai Department of Tourism and Commerce Marketing (DTCM) in association with Tanmia (The National Human Resource Development and Employment Authority). The Hospitality Maharat Programme, one of the taskforce initiatives, is designed to provide training and employment opportunities for UAE Nationals and this programme is fully embraced and integrated within the Emiratisation programme at Jumeirah. In addition, our Executive Chairman, Gerald Lawless, represents the Hospitality Sector in the Emirates National Development Programme. We also actively work together with DTCM in promoting Dubai at several exhibitions and road shows across the world. With the Dubai Department of Economic Development we have participated in the annual Dubai Quality Awards since 2000 to support and promote Dubai as a Centre of Business Excellence.

ECOnOmIC bEnEFITS
We strongly believe that we can positively contribute to the socioeconomic welfare of our host communities by creating unique employment and career development opportunities. In 2007, we took the initiative to conduct a study to help us understand our contribution to socio-economic development and poverty reduction in our colleagues countries of origin. A representative sample of 263 colleagues from 23 countries were interviewed. The study concluded that: 94.7% of interviewees come from developing countries with medium Human Development Index (HDI) while 14.7% come from underdeveloped countries with low HDI. 83.3% of interviewees continuously support their families living in their perspective countries of origin. 75.2% receive higher salaries compared to their former work. 82.2% indicated that their current working and living conditions with Jumeirah are either better or much better compared to previous employment conditions. In addition, the study estimated that more than two thirds of Jumeirahs total annual salary is paid to colleagues in lower grades
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To promote CR within the region, we actively work with the Dubai Chamber Centre for Responsible Business. In 2008, we were invited to the Ministry of Labour and Social Affairs to comment on the proposed new Labour Law. PARTnERSHIPS WITH nOn-GOvERnMEnTAL AnD CHARITABLE ORGAnISATIOnS We developed relations with a number of organisations on subjects related to sustainability such as the Emirates Environmental Group (EEG). We actively participate in EEGs forums including the CSR Network and provide sponsorship to raise community awareness on sustainability related issues, such as for the Clean Up UAE 2008 campaign. Internationally, we partnered with the International Business Leaders Forum (IBLF) International Tourism Partnership (ITP) on subjects related to sustainability in the tourism and hospitality industry. Other charitable partnerships include Save the Children foundation, the Dubai Centre for Special Needs, Dubai Autism Centre and the Make-A-Wish Foundation. All colleagues are also encouraged to participate in various community activities and charitable events such as marathons, blood donations, beach clean-ups and the Sirius swim around Burj Al Arab fund raising event for Mdecins Sans Frontires. In the annual Colleagues Opinion Survey conducted in 2008, 82% of our Dubai-based colleagues agreed with the statement The company encourages and supports my involvement in community activities, compared to 76% in 2006. PARTnERSHIPS WITH PROFESSIOnAL BODIES Across all levels of leadership, we encourage membership of professional bodies and associations, conduct regular visits to schools and universities and provide internships. Our senior managers are regularly invited to share their knowledge as guest speakers at national and internationally renowned conferences and events. A key strategic partnership is The Emirates Academy of Hospitality Management partnership with Ecole Htelire de Lausanne. The Emirates Academy of Hospitality Management is the only higher education institution to have an exclusive and extensive academic association with this world renowned institution. This allows students undertaking a BSc degree with honours in International Hospitality Management to study with them directly. In order to maintain the

partnership, Ecole Htelire de Lausanne reviews our curriculum annually. In support of our partnership, we have also established a new board of Governors for The Emirates Academy, which includes representation from Ecole Htelire de Lausanne. CASE STUDY: EnGAGInG OUR FUTURE LEADERS In COMMUnITY ACTIvITIES Early on a Friday morning in December 2008, adults and children alike from Special Need Families a charity organisation based in Dubai, flocked to the shores of Jumeirah Beach Hotel for the very first Aspiro charity event. More than forty children from thirty families took part in water sports and fun activities on the beach, Aspiro, Colleagues of Exceptional Value, Management Trainees, The Emirates Academy of Hospitality Management students, and other colleagues from different properties all joined together in making this day a memorable one for the children. Each child was assigned a volunteer to watch over them so the parents could have some fun too. A grateful parent commented: People dont understand what it is like being the parent of a special need child. Today was wonderful. Everything was really thought out. The buddy system was great.

Engaging our Stakeholders Our Local Communities

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Our Environmental Responsibility

We have increased our focus on understanding our environmental impact and reducing our electricity and water consumptions. With some great reductions in electricity and water usage during the end of 2008, our efforts are now becoming more visible. Plans are underway to enhance our Environmental Management System (EMS) and Greenhouse Gas (GHG) measurement system in 2009. This will enable us to better manage our environmental impact and reduce our GHG emissions.

representatives from key organisational divisions, with the following objectives: Measure the GHG emissions of our global activities Estimate our future GHG emissions based on our 5 year expansion plan Identify GHG emissions reduction opportunities Analyse customer incentives and loyalty program opportunities As a result, we have developed four strategic components to our GHG emissions reduction strategy: Reducing the overall environmental impact of our operations Engaging with our customers to reduce their impact and to assist us with reducing ours Engaging with our colleagues to reduce their impact both at work and at home Influencing our suppliers to provide more environmentally sustainable products and services

OuR EnvIROnmEnTAl ImpACT

Our environmental impact arises from operating our hotels and resorts. We consider the most important aspects of our environmental impact to be: Indirect energy (purchased electricity) consumption in our hotels and resorts and related greenhouse gas (GHG) emissions The impact of our hotels and resorts on biodiversity Water consumption in our guest rooms, laundry, swimming pools and gardens Waste generation in our hotels and resorts The location of our hotels and resorts poses specific environmental challenges. The very warm weather climate in the UAE mean that significant amounts of energy are needed for cooling buildings. Furthermore, water in the UAE is mostly derived from sea water through an energy-intensive desalination process.

REduCInG OuR EnvIROnmEnTAl ImpACT

MEASURInG OUR GHG EMISSIOnS In 2008, we established a carbon-footprint baseline against our 2007 levels of emissions. The measurement was calculated in accordance with the GHG Protocol and guidelines set by the World Business Council for Sustainable Development. We are now working actively to reduce our carbon footprint and have assigned internal reduction measurements and targets. According to our 2007 GHG emissions assessment, the primary source of our emissions is indirect energy consumption (purchased electricity) which accounts for 85.2% of the total emissions. On the other hand, emissions resulting from our colleagues travelling both on land and by air accounts for only 0.9% of the total emissions. The remaining sources of emissions include direct energy consumption (5.1%), use of refrigerant from air-conditioning (4.7%), and emissions embodied in water usage (4.1%). At present, our key challenge is to produce a comprehensive, accurate, consistent and timely measurement of our GHG emissions considering our growing portfolio. We have chosen not to disclose our GHG emissions figures until such a measurement has been achieved. This is a target for 2009.

mAnAGInG OuR EnvIROnmEnTAl ImpACT

We continually seek to reduce negative environmental impacts resulting from our activities by adopting environmentally preferable business practices and innovative technologies. In order to effectively manage our environmental impact, we aim to implement a comprehensive Environmental Management System (EMS) in 2009 which incorporates the management of our GHG emissions. Below we detail the steps we have already taken to reduce the impact our operations has on the environment including the primary source of GHG emissions, electricity consumption. GREEnHOUSE GAS EMISSIOnS Climate change is arguably the greatest environmental challenge facing the world today. In 2007 we established a task force with
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REDUCInG OUR ELECTRICITY COnSUMPTIOn

Our operations within the Middle East use electricity mainly to generate chilled water for air conditioning. This is estimated to be in the region of 50% to 60% of the total electricity bill. We have concentrated our efforts on reducing this consumption, with some of the initiatives are outlined below. We monitor our electricity consumption on a regular basis and in 2008 produced a monthly report comparing consumption from 2007 to the same period in 2008. A campaign to reduce consumption culminated in the last quarter of 2008 and we achieved reductions of 8.33% in October, 14.80% in November and 13% in December 2008 compared to the same period in 2007. This equates to a total reduction of 9.7 million KWH (2.41%) which has a value over USD 870,000 at the current electricity purchase rate. Some examples of electricity saving initiatives include: UPGRADInG THE BUILDInG MAnAGEMEnT SYSTEM (BMS) Our integrated use of computer controlled Building Management Systems (BMS) in all of our properties helps to reduce energy consumption in unoccupied guest rooms and efficiently manages garage exhaust fans, water tank overflows, chilled water optimum temperature control, and scheduled lighting programmes. We have upgraded our BMS at Madinat Jumeirah resort allowing us to control the chiller plant more efficiently in line with demand. Power Factor Correction equipment was also installed to make more efficient use of the power supplied. InCREASInG CHILLER PLAnT EFFICIEnCY Our air conditioning chillers are connected to our BMS in order to optimise their efficiency,. This has been increased through the installation of pre-coolers. In addition, we have reduced the demand on the chillers by increasing the temperature at which air conditioning kicks in for unoccupied areas. For example, at Jumeirah Emirates Towers we have upgraded the thermostat to automatically increase the air conditioning temperature setting in vacant guest rooms. When the guest checks in

the system automatically drops the room temperature to 23 degrees centigrade. A similar system will be installed in Jumeirah Beach Hotel in the near future. In addition to the above initiatives, we have installed over 1000 interlocking devices in Madinat Jumeirah resort that turn guest room air conditioning off when a room patio door is opened. CFL InSTALLATIOn The vast majority of incandescent lights in our guest rooms were replaced with Compact Fluorescent Lights (CFL) thereby reducing the electricity consumption as well as the heat load. In turn, this reduces the load on the air-conditioning unit. We have also made extensive use of CFLs in public areas at our properties and offices. In addition, The Emirates Academy of Hospitality Management has installed solar panels to provide hot water for the main kitchen. InSTALLATIOn OF vSD AnD SOFT STARTERS We have installed a number of Variable Speed Drives (VSD) in our hotels and resorts such as in Jumeirah Beach Hotel. The VSD regulate the speed of electrical motors in line with the demand as opposed to running the motors at full speed therefore reducing electricity demand. We have installed motor soft starters which not only prolong the life of our equipment but also bring the equipment gradually into operation avoiding the use of switch gear which produces spikes in our electrical consumption. Soft starters also match usage with demand and as a result produce a saving on electrical consumption.

Our Environmental Responsibility

REDUCInG OUR WASTE

Typically, most of the solid waste in hotels is generated by the provision of food and beverage handling (e.g. food waste, cans, glass bottles and packaging) or from the housekeeping department (e.g. amenities and plastics packaging). Other types of waste include sewage. We have been working proactively to reduce, reuse, and recycle materials wherever possible. All of our hotels and resorts in Dubai have one or more recycling schemes in place such as for aluminium cans, glass bottles, cardboards, office paper, batteries, etc.

Al Qasr - Madinat Jumeirah

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Materials are received, stored and managed by each property using sophisticated purchasing software. This decentralised approach reduces the amount of goods to waste and the need for expensive central storage facilities which, in return, increases our electricity consumption.

also exploring the option of an integrated recycling plant that will allow us to recycle 70% to 80% of the water from our laundry. Recently we installed a new storage tank at Mina A Salam that has allowed us to convert all of the Mina A Salam garden irrigation to recycled water. Jumeirah Emirates Towers gardens are fully irrigated with recycled water and we are installing a system at Jumeirah Beach Hotel that will allow us to use recycled water. In addition, flow reducers have been installed in the majority of our guest bathroom basins and public area toilets. SUMMARY OF TOTAL ELECTRICITY AnD WATER COnSUMPTIOnS
2007 Electricity (KWH)* Water (cubic meter)** 402,439,009 3,841,892 2008 392,749,502 3,785,758 % Saving 2.41 1.46

Our Environmental Responsibility

We have partnered with Dubai Municipality to promote the recycling of discarded IT equipment that can be re-used by schools and hospitals in developing countries. When we replace for example linen, crockery or tableware we pass on the items to colleagues or charities. In addition, our contracted landscape gardeners shred and recycle our garden waste to compost material. We will continue to enhance our waste management programme by reducing waste generation and increasing recycling efforts wherever possible.

REDUCInG OUR WATER COnSUMPTIOn

Water consumption is most significant in cooling towers in our air conditioning systems, swimming pools (with a high evaporation rate during the summer months), our centralised laundries, irrigation for our extensive gardens and the daily consumption of our guests and colleagues. In the last two months of 2008, we reduced our consumption in November by 3.2% and in December 2008 by 12.1% compared to the same period in 2007. This equates to a reduction of 55,917 cubic meter which has a value of about USD 151,405 at the current purchased water rate. We expect to continue with these savings now that we have completed some of our major water saving projects highlighted below. Generally, our waste water is sent to Dubai Municipality water treatment plant and then sent into a network around Dubai for use in irrigation. We make use of this recycled water at a number of our properties. At Madinat Jumeirah we switched from using potable water to using recycled water and have installed a computer controlled irrigation system. This system will determine the amount of water that each area needs in order to survive as opposed to the current system which just waters for the same predetermined time each day. This system is the very latest in irrigation technology and is estimated to reduce our irrigation water demand by 15% to 20%. The central laundry facilities at Madinat Jumeirah and Jumeirah central laundry both use recycled water in the initial rinse. We are
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* Electricity consumption as a bulk figure for the following properties: Burj Al Arab, Jumeirah Bab Al Shams, Jumeirah Beach Hotel, Jumeirah Emirates Towers, Madinat Jumeirah. Wild Wadi and Oasis Village. ** Purchased water from Dubai Electricity and Water Authority (DEWA).

EnGAGInG OuR STAKEHOldERS On EnvIROnmEnTAl ISSuES

EnGAGInG OUR GUESTS Involving guests in our environmental programme and gaining their feedback and suggestions is a key factor in improving our environmental performance. As of July 2008, survey questions were included in our Customer Satisfaction Survey regarding our environmental performance and how we can further enhance. The programme is still in its infancy and we will continue to engage with guests in order to introduce innovative ways to enhance our overall environmental performance and to reduce our GHG emissions.

Jumeirah Beach Hotel

CASE STUDY: CARBOn OFFSET In late 2008, Sirius announced a new partnership with Blue Ventures Carbon Offset (BVCO). Sirius members are now able to exchange their Sirius Points for the purchase of fuel efficient solar stoves for communities in Africa. BVCO is an exiting, new, not-for-profit carbon offsetting programme which operates to benefit both communities and the environment by reducing carbon emissions. All projects deliver real economic, environmental and health benefits to some of the worlds poorest and most isolated people. The organization has to date focused on southwest Madagascar and South Africa where people currently use wood and charcoal in three-stove open fire. The cooking method is highly inefficient and harmful to both people and the environment. By using BVCO-supplied solar stoves, smoke production is heavily reduced and the safety aspects of the stove massively improved. The social and economic benefits can similarly be enhanced, producing a lower cost of living as well as the need for local employment in stove constructions, distribution and monitoring. Through education and awareness campaigns, communities also gain a greater understanding of efficient cooking methods. With just 150 Sirius Points, our guests can buy one stove, 450 Points buys three stoves which is the equivalent of one individuals average annual carbon footprint.

EnGAGInG OUR COLLEAGUES In the past two years we have increased our internal environmental initiatives in order to involve and empower more of our colleagues to reduce our environmental impact. We have increased participation in activities organised by Emirates Environmental Group such as the Can Collection Drive, national clean-up campaigns and monthly community lectures. In addition, Wild Wadi waterpark organizes quarterly beach clean-ups aimed at raising awareness. We have featured more environmental articles and tips via our internal communications channels including our intranet Mercury and our bi-monthly newsletter Chit-Chat. In 2007 we launched our J-Wise mascot and Go-Green campaigns to raise colleagues awareness on health, safety and environmental topics. Collateral was distributed to our properties including J-wise posters and computer stickers to remind colleagues to switch off their monitors and computers when not in use. In 2008, we installed video conferencing technology to reduce the need for ground and air travel. We also provide regular colleague transport services to reduce the need for personal transport. Suggestions by colleagues are also encouraged through VOICES (Very Original Ideas Can Enhance Success) Keen to be Green suggestion scheme. A suggestion brought forward by one of our colleagues was recognized to potentially save the company USD 67,000. In response to the statement The companys actions support the well-being of the environment in the annual Colleague Opinion Survey conducted in 2008, 86% of our colleagues who responded to the survey in Dubai agreed with the statement, compared to 80% in 2006.

Our Environmental Responsibility

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EnGAGInG OUR LOCAL COMMUnITIES CASE STUDY: WILDLIFE PROTECTIOn The Madinat Jumeirah turtle rehabilitation unit is a pilot project organised in conjunction with the National Marine Aquarium in Plymouth, England. Sick or injured turtles that were brought to veterinarians by members of the public are referred on to the Wildlife Protection Office, and then brought to a large enclosure in the sea-water canals of the Mina A Salam hotel. The time spent there, in what we hope is the final stage of their rehabilitation process, allows for a final period of feeding and monitoring the turtles before releasing them back into UAE territorial waters. In December 2007, 12 turtles were released in preparation for the New Year, as we expect new turtles to be brought in on an ongoing basis. Some of the turtles will leave carrying tracking devices which monitor their journey. This gives the scientists in Dubai valuable behavioural information as the turtles travel. The program also raises awareness among the general public and school children on the importance of protecting endangered sea turtles. CASE STUDY: PROMOTInG BIODIvERSITY The Pavilion Dive Centre of Jumeirah Beach Hotel has been involved in diving education within local schools for the last 5 years. The Centre offers a programme called Tawasul (Arabic for reach out), focusing on environmental education and raising awareness and interest among the youth. Programmes offered at the Pavilion Dive Centre focus on techniques that preserve underwater life, resources and also cultural heritage. The Centre also offers a 12 week programme that consists of 5 PADI speciality certification programmes based around environmental awareness, restoration and conservation. The specialities have affiliation to National Geographic Reef Check and Coral Watch, both reef monitoring programmes that are affiliated to the University of California and Queensland. Included in the program are the UNEP and UNESCO YXC training programmes aimed towards sustainable lifestyles and responsible consumption.

Our Environmental Responsibility

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Jumeirah places a strong emphasis on the development of talent across the Group and recognises the importance of attracting and retaining the best people to support future growth. We strive to provide an environment where the best people choose to work, grow, and make an impact.

We exchange relevant information through a number of channels such as internal newsletters, our intranet Mercury, briefings, inductions, cross functional meetings and networking events. Colleagues are encouraged to provide feedback through structured opinion surveys, questionnaires and regular communication sessions. Conferences, workshops, retreats, social and community related events are held to facilitate team building, encourage better communication between teams and share best practice globally. COLLEAGUE COnSULTATIvE COMMITTEES We believe colleague involvement in decision-making processes benefits Jumeirah in many ways, including enhanced commitment and trust, a more harmonious employee relations climate, better quality decisions and enhanced change management processes. To encourage colleague involvement, we have created Colleague Consultative Committees (CCCs); groups of colleagues who are formally elected by peers to represent colleagues across our operations in Dubai. In 2007, we rolled out a formal policy and guidelines including the roles, responsibilities, election process, communication procedure, and meeting frequency (once every two months) of the Committee. In Dubai, most of our colleagues are now represented in the CCCs and we aim to ensure that all of our colleagues are represented by the end of 2009. The CCCs take part in joint consultation with management on general matters. Colleagues are able to contribute ideas and solutions to business issues such as new policies or working practices, or any matters promoting the general interests of Jumeirah colleagues. As a result of the CCCs, several improvements have been introduced, most notably the implementation of our flexible working hours policy. COLLEAGUE OPInIOn SURvEY (COS) COS, our annual colleague survey introduced in 2002, is our main colleague feedback tool designed to understand satisfaction levels and use results to identify and prioritise needs for improvement. COS takes place once a year and is a confidential survey of all colleagues, conducted by an independent company. A detailed questionnaire is filled out anonymously and measures satisfaction amongst colleagues in a wide range of areas such as colleague welfare, accommodation, meals, leadership & management, career growth, compensation & benefits and training.

As we expand internationally our aim is to develop the same hospitality mindset that has made us a successful company within the luxury service provider market. Our Hallmarks and Guiding Principles are the foundation of our identity and are consistently communicated through formal training programmes and informal communication and are lived by every colleague everyday.

Focusing on our Colleagues

OvERvIEw
Jumeirah Group is an employer in the global market place and has attracted colleagues from more than one hundred nationalities. This diversity enables us to meet the needs of guests and colleagues from many different value systems, cultures and languages, whilst reflecting our shared organisational culture. Our new HR Management System was launched in December 2008. This will enable us to manage the increasing number of colleagues, making information more accessible and improving management reporting including our CR Report. BREAKDOWn OF TOTAL WORKFORCE
EMPLOYMENT TYPE TOTAL 11,694 % Full-time % Part-time % Fixed term contract % Permanent term contract UAE 10,531 99.4% 0.6% 0.4% 99.6% Americas 621 98.2% 1.8% 0.2% 98.2% Europe 477 88%* 1.7% 0.1% 10.2%** Asia Pacific 65 100% 0% 0% 100%

* Full-time colleagues on a permanent term contract. ** Defined here as casual workers; colleagues on a permanent zero hours employment contract. These colleagues typically work in housekeeping, banqueting and stewarding providing our business a high level of flexibility.

EnGAGInG wITH OuR COllEAGuES

There are a number of methods by which we engage and empower our colleagues involving them in the decision-making process. Some of the main engagement pathways are described below.

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Our colleagues

We share the results with colleagues and develop action plans to improve on the areas where we know scores can be higher. We also explore results with colleague in focus groups to gain further information and understanding of particular issues and work with colleagues to identify priorities and solutions. Improvements in response to results are driven at corporate, regional, property or departmental levels as appropriate. One of the most prominent mediums by which we share our yearly COS results with all colleagues highlighting priority areas for improvement is through our annual internal newsletter Looking back, looking forward. COS 2008 RESULTS HIGHLIGHTS A total of 8644 colleagues (82% of the total workforce in the UAE) responded to the survey in 2008. Colleagues told us we have improved: All survey topic areas have significantly improved since 2007; by 4% or more for immediate supervisor performance, Rewards & Benefits, and Teamwork. Results are above the global benchmark on five out of six survey topics, with Customer Focus (10% above) and Rewards & Benefits (9% above) topping the ranking. Employee Engagement - 92% overall score, where 86% of colleagues would recommend Jumeirah as a good place to work, 92% are proud to tell others that they work for Jumeirah, and 86% feel Jumeirah motivates colleagues to do their best work. We know we can continue to improve on: Continuous growth for colleagues Performance development Satisfaction with quality of food/beverage at place of work Competitiveness of our pay and benefits DIRECT LInE At least once per year, there is an opportunity for colleagues to hear directly from Jumeirah Executive Team and Chief Officers at the Direct Line. The Executive Chairman visits all business units to meet colleagues face to face and answer any questions they may have. This is also a great opportunity for the management team to recognise success and give updates on the latest projects, company news, management appointments, etc.

Questions & Answer sessions from Direct Line are documented and circulated to all colleagues after the sessions so everyone has a clear and common understanding about what was discussed. Question raised by colleagues through channels such as Direct Line are also included in the newsletter with answers, future commitment, or updates on progress. GEMBA DAY Gemba is the Japanese word for real place or shop floor. The most critical area for any business is the shop floor where all the planning and discussions about strategy are put into practice. On Gemba Days, general and senior managers take on colleague roles and responsibilities to better understand and empathise with their roles and discover how to bring extra value in the workplace. vOICES This company-wide initiative, an acronym for Very Original Ideas Can Enhance Success, is linked with our core Guiding Principles and provides a focus for colleagues creative and innovative ideas. VOICES is a tool to ensure each colleagues ideas and their successes are being supported, recognised and rewarded. Since its inception in August 2006, VOICES has generated more than 10,000 ideas, 871 of which have been identified for implementation and 907 have already been implemented. Of the many ideas in the innovation pipeline, a tangible value to the company of over USD 500,000 has been calculated, resulting in improvements to processes relating to customer service, operational excellence, colleague satisfaction, communication, health and safety, the environment and new business opportunities. In November 2007 VOICES was awarded Gold Accreditation status by ideasUK, a professional, not-for-profit association dedicated to the development of efficient and effective staff suggestion schemes.

OuR HR STRATEGY
The Jumeirah Group HR strategy provides global support for its existing businesses and regional office networks, as well as those under development. It is designed to meet the needs of the business through an integrated process involving key representatives across the Group. This process enables best practice systems to be shared throughout the organisation, while allowing consideration of local practices and requirements and ensuring the overall strategy remains consistent, competitive and innovative.

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Jumeirah Group HR has identified the following priorities: To develop a global employer brand strategy that positions us as an employer of choice in the global market place To meet the volume needs of the business as it grows through efficient, timely and cost-effective resource planning To provide a talent management system that delivers leadership succession plans that are supported by quantifiable and objective performance and behaviour-based criteria To offer a global compensation and benefits strategy that is competitive, market sensitive and business intuitive To deliver learning and development opportunities at all levels of the organisation that continuously improve performance and capabilities

For the recruitment and development of UAE Nationals we also work very closely with local colleagues and universities as well as government bodies such as Tanmia and the Emirates National Development Programme, where our Executive Chairman Gerald Lawless is a member of the Board of Trustees. Currently, two of the eight Jumeirah Group Chief Officers are UAE Nationals and approximately 4.5% of senior management positions (e.g. Directors) are UAE Nationals compared to 0.8% in 2006. SPECIALISED TRAInInG COURSES FOR UAE nATIOnALS Our UAE National colleagues have access to a wide variety of courses specifically designed for them. These include an orientation programme in tourism and hospitality called Al Tawteen and a six month mentoring programme which includes access to a dedicated Emiratisation coordinator in each property. In recognition for our commitment and drive for Emiratisation in the tourism and hospitality industry, we received the Dubai Human Development Award in 2006.

Our colleagues

RECRuITmEnT
To ensure recruitment and selection is carried out consistently and effectively, Jumeirah Group partners with local recruitment consultancies that share its vision and values. These relationships have developed through time with commitment from both parties. Currently each part of the business manages the relationships with preferred nominated suppliers and all HR representatives responsible for recruitment meet monthly to share relevant candidates and support in filling vacancies. Recruitment and selection is also achieved by building relationships with colleges and schools and through existing colleagues. EMIRATISATIOn UAE national Development Programme At Jumeirah we are fully committed to hiring, developing and retaining UAE Nationals who are keen to start a career in hospitality and tourism. Currently, 162 U.A.E Nationals are working with us in a wide variety of departments. We have a dedicated Emiratisation team and programme in place to attract more Nationals into our exciting industry in line with the objectives of the UAE Government. We are supported in our efforts by the Department of Tourism and Commerce Marketing Taskforce for Emiratisation in the Tourism and Hospitality Industry. We are a founding member of this taskforce which runs industry specific training and developments programs in association with The Emirates Academy of Hospitality Management, also part of Jumeirah Group.

Full-TImE EmplOYmEnT bEnEFITS

At Jumeirah we strive to offer competitive salary and benefits packages. Every year, prior to the annual salary review, we run and participate in the Dubai Hotel Remuneration Survey, to benchmark both pay and benefits against the majority of hotel companies in Dubai, ensuring we remain competitive. HOUSInG Jumeirah provides company housing or a housing allowance (depending on the colleagues preference) for all colleagues in the UAE. Our own primary housing village, Oasis Village, is home to over 7,000 colleagues and offers facilities and services such as a supermarket, a bank, a library, a medical clinic, a mosque, sports facilities, fitness and social activities and transportation to work and from work daily. In 2006, the Dubai Municipality awarded Jumeirah for the best company housing in Dubai. MEDICAL COvER Based on colleague feedback, we extended our medical coverage to include all colleagues who are now entitled to private healthcare under the Jumeirah Healthcare Scheme with access to 55 hospitals and clinics. The scheme benefits from a large local network and provides support on a 24 hour basis. Read more about colleague healthcare on page 30.
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SAvInGS & RETIREMEnT PLAn In 2007, we implemented the Jumeirah Group Savings & Retirement Plan to provide a market competitive, internationally consistent total remuneration package. In the UAE, the plan is open to management colleagues, who are not already covered by the UAE Federal Pension Scheme. This is in addition to end of service gratuity.

Jumeirah aimed at front line colleagues up to professional level (Assistant Managers). Eligible colleagues are those unsung heroes from around the organisation who do an exceptional job or are a role model to their colleagues in everything they do. Apart from financial rewards (about USD 2750 over the 12 month programme), each Colleague of Exceptional Value is encouraged to act as a motivator in a range of company activities including Orientation and team building activities and they have the opportunity to travel with Jumeirah management to recruit new colleagues worldwide. There are currently 86 enrolled in the programme with colleagues being enrolled every six months. At the moment, the programme is limited to Dubai but is being considered for roll-out in our other regions.

Our colleagues

OTHER BEnEFITS Our colleagues receive a flight ticket home at least every two years. We arrange family visit visas to the UAE for colleagues families. In 2008, we organised 2071 family visit visas this is a unique service only a few companies offer in the UAE. Other employment packages also include duty meals, transport, uniforms and laundry services. Colleagues are offered discounts on hotel rooms, restaurants, the Wild Wadi waterpark and at Jumeirah Retail outlets. RECOGnITIOn pROGRAmmES A number of formal and informal mechanisms are used to recognise and reward our colleagues contribution, effort and achievements: COLLEAGUE AnD TEAM OF THE MOnTH/YEAR One of our methods of recognising colleagues is the Colleague of the Month (COM). Colleagues are nominated by their department heads or colleagues for doing something above and beyond what is expected of them. This is then voted on by the other departments within our properties. Nominees and winners receive letters of recognition, cash prizes and a certificate. COM winners are then nominated and shortlisted through a democratic process to be Colleague of the Year, a recognition awarded at the annual colleague party. LOnG SERvICE AWARDS Colleagues who reach 3, 5, 10, 15, 20, 25 and 30 year service milestones with the company are celebrated in a variety of ways from presentation of the Jumeirah gold Beacon and a certificate at three years through to a formal luncheon and presentation of gifts from the Company for 25 & 30 year celebrants. COLLEAGUES OF EXCEPTIOnAL vALUE Our Colleagues of Exceptional Value programme launched in 2006 seeks to recognise and reward those who consistently perform at an exceptionally high level. This is the highest form of recognition within

lEARnInG And dEvElOpmEnT

When we looked at colleague satisfaction drivers amongst our colleagues, career development was identified as one of the main factors. Jumeirah is committed to continuous development. All colleagues participate in ongoing professional and personal development and we have dedicated Learning and Development teams at corporate, regional and property level to ensure that development meets the needs of colleagues and Jumeirah. As they begin their careers with us, all colleagues receive a comprehensive Company Orientation. As colleagues careers grow, they are enrolled in internal courses, external development events, online programs, workshops and are sponsored to complete professional degrees where required. Regular performance reviews are in place to promote individuals personal and career development. All these aspects are covered in more detail below.

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COMPAnY ORIEnTATIOn New colleagues, including senior managers, attend a one-day Jumeirah Orientation programme. The Orientation introduces new colleagues to the Company and covers the key information about the Vision, Hallmarks, Guiding Principles, structure and philosophy of Jumeirah Group. During the Orientation, our Executive Chairman and Chief Officers come on stage for a meet the executive team session. Other sessions include Corporate Responsibility and ethical conduct, a session about Dubai and cross cultural awareness. New senior managers attend an additional one-day Leadership Orientation to ensure their understanding of their role in modelling behaviours and leading their teams consistent with our values and Guiding Principles. TRAInInG PROGRAMMES Internal training programmes include IT training, language courses, customer service training, supervisory programmes, leadership excellence programmes, cultural management, corporate responsibility, health & safety, stress management, personal financial management and many other courses. We offer more than 200 different courses (with an average course satisfaction rate of 4.73 out of 5) delivered by more than 54 dedicated, qualified and professional trainers. We also have a Learning Gateway which offers 25 online courses that were chosen because of their close alignment to Jumeirahs Leadership competencies. Sponsorship programmes are also offered for colleagues to study in one of the accredited degree programmes at The Emirates Academy of Hospitality Management, which is also part of Jumeirah Group. In addition, we organize many awareness sessions and seminars covering specific topics such as employment laws and commercial contracts. 18 hours of training per every three months are mandatory for all colleagues at non-managerial level. The average training hours in company time for colleagues at non -managerial level per year in 2008 was 86hrs compared to 93hrs in 2007. While we focus on the quantity of formal training hours for operational colleagues, we are currently working towards introducing compulsory, role specific training programs for management and leadership colleagues during the course of 2009. AWARDS In 2008, the British Association of Hospitality Accountants (BAHA) named Jumeirah Corporate Employer of the Year in recognition for

our commitment in promoting and developing financial education in the hospitality industry. CROSS TRAInInG Cross training means training in a job other than the persons current job. It can be in the same department or a different one, in the same or different hotel or business unit. The cross training programme gives colleagues the opportunity to work alongside colleagues who possess specialist expertise to which they may otherwise not be exposed. It helps colleagues to make more informed decisions about alternative careers in our exciting industry and prepares them for a possible future career change/growth. Cross training programme typically is 60 hours (to be completed in a 3 month time frame) and is done according to a formal training plan. CORPORATE MAnAGEMEnT TRAInEE PROGRAMME As part of our aim to develop future leaders, Jumeirah has a dedicated Management Trainee Programme in place, allowing fresh graduates to join the organisation and train in a variety of departments depending on their area of focus. The programme is also open for high performing colleagues that are already employed by Jumeirah. Besides the formal training programme, trainees have access to a wide range of additional resources including dialogue and frequent meetings with senior managers in the company, mentors, internal training courses as well as learning opportunities and resources through The Emirates Academy of Hospitality Management. Management trainees in the programme are employed by Jumeirah and compensated with a salary that is competitive to an equivalent status in the location of the traineeship. The Management Trainee Programme is designed so that all participants reach a level of competence required to take on a junior management position at the end of the programme. ASPIRO A In March 2008, Jumeirah launched Aspiro, a fast-track career development programme for high-achieving students from leading hospitality and management degree programmes as well as existing Jumeirah colleagues. The programme comprises of three levels, Corporate Trainee Programme, Corporate Management Programme and Corporate Executive Programme. As part of the new programme, Jumeirah is also actively recruiting Arabic speakers and nationals from top universities and institutions throughout the Middle East.
29 Jumeirah Group

Our colleagues

PERFORMAnCE MAnAGEMEnT Jumeirah applies a performance management system that focuses on developing individuals strengths and leadership competencies. A process of ongoing performance discussions, quarterly reviews and a formal annual appraisal for all colleagues facilitates a collaborative development culture. Appraisal tracking will be systematised in 2009 to give us up-to-date records. While we aim for a 100% completion of performance reviews, we estimate that currently 60% of colleagues receive formal reviews and have a resulting documented development plan; and this is something we aim to work on. We use various performance management tools such personality and ability testing tools (e.g. Myers Briggs Type indicator). 360 feedback is also used to gather information to identify colleagues development needs, set personal development objectives and monitor colleagues progress through individual career development plans. TALEnT MAnAGEMEnT We have appointed a Director of Talent whose main objective is to ensure that the career growth and individual career and development plans are integrally linked to our succession plans. In 2008, we focused on establishing a Talent Management System (TMS) for all senior management and high potential middle managers through extensive talent review meetings. The valuable information we have gathered from these reviews is now stored in the TMS, which is used primarily for succession planning in line with our ambitious growth plans. When a vacancy arises, colleagues in our succession plans are the first to be considered for these roles. Having established a Talent Management System for senior management, we will now be looking at extending this to all middle management and ultimately front line colleagues. InTERnAL PROMOTIOnS In 2008, 1664 colleagues (16%) achieved a promotion and another 650 (6.3%) transferred to a different position. We have already seen transfers between Dubai, London, New York and Shanghai. Wherever possible our aim is to have 20% of colleagues in any new opening internally transferred from other Jumeirah properties.

healthy environment for all colleagues, contractors and third parties to work in. We have health and safety committees covering all properties to discuss matters related to colleagues health, safety and security. All colleagues in UAE are represented in these committees in joint consultation with management. Effective health and safety practices are encouraged through training, supervision and appropriate equipment. Health and safety is also part of our core training. Appropriate job specific courses are licensed and permits are provided for jobs such as buggy drivers, lifeguards and chefs. Internal monthly food hygiene audits are carried out in colleague food and beverage areas and colleague facilities are audited annually by Dubai Municipality. Audit reports are used to identify areas for improvement and colleague satisfaction with health and safety initiatives is measured through our annual Colleague Opinion Survey. Jumeirah also seeks to ensure that the health and safety of the public, visitors, customers, contractors and vendors is not jeopardised at any time whilst using the Companys premises and facilities. We provide 24-hour access to medical services and our dedicated clinics attended to over 10,500 colleagues, 5,500 guests and 300 contractors. Our paramedics also conduct health awareness training. A preventative medical education, for our colleagues, teach about a variety of medical topics from maintaining a healthy lifestyle to long term illness like hypertension, diabetes and heart disease. Additional emergency equipment was installed in the Oasis Village clinic to allow a quicker and higher level of response to emergencies and to bring the clinic in line with local and international standards. We have also instituted free health checks at our properties to promote preventative care.

Our colleagues

HEAlTH And SAFETY

Jumeirah Group regards health and safety as an essential element to the success of the Company. It is the Groups policy to take every reasonable and practical step to provide and maintain a safe and
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LIFESTYLE AnD WORK-LIFE BALAnCE We proactively assist our colleagues in maintaining an effective balance between the demands of their work and personal lives. Some examples of how we do this: We are one of the few hotel companies in Dubai to operate a 5 day working week for our managerial and administrative functions Besides normal leave in line with Federal UAE Labour Law (e.g.. annual, maternity and sick leave), we offer paid Haj (pilgrimage) leave for up to 15 days and up to 4 paid days each year for study leave We offer stress management courses as part of employee training. We encourage participation in sponsored sports activities and tournaments. We organise regular team building outdoor activities We are working on more flexible working hours solutions to suit colleagues and business requirements

GEnDER AnD AGE PROFILE

2008 % Female colleagues % Colleagues between 18-25 years old % Colleagues between 26-35 years old % Colleagues over 36 years old * Data for UAE only. ** Data estimated based on Colleagues Opinion Survey results conducted in September. 2008 with a response rate of 83 % or 9730 colleagues. 7% of colleagues surveyed did not respond to the question regarding their age group. 32% 23% 49% 21% COMMENTS 6.3% increase since 06* Estimated ** Estimated ** Estimated **

Our colleagues

WORKFORCE BREAKDOWn In THE UAE BY YEARS OF SERvICE

YEARS OF SERVICE Less than 1 year 1 - 2 years 2 - 3 years 3 - 5 years Above 5 years 2008 23.5% 16.0% 14.9% 22.9% 22.7%

dIvERSITY And EquAl OppORTunITY

As an equal opportunity employer, Jumeirah actively promotes a working environment which is free from discrimination and where all colleagues are treated with dignity, courtesy and respect in line with our Hallmarks and Guiding Principles. The 100 nationalities that make up Jumeirah give us a unique opportunity to learn, to understand and to value our differences. Jumeirah does not tolerate discrimination on any basis, including discrimination based on race, colour, nationality, age, disability or religion. This includes equal treatment with regards to compensation, working conditions, discipline, benefits, and equal access to opportunities for advancement, training, transfer and promotions. We also expect our guests, community members, suppliers, contractors and their employees to be treated by our colleagues with respect and integrity. Our UAE workforce consists of 67.8% male and 32.2% female employees (compared to 73.7% male, 26.3% female in January 2008). TOP 10 nATIOnALITIES WORKInG FOR JUMEIRAH In THE UAE
NATIONALITY India Philippines Sri Lanka Nepal China TOTAL 2957 1960 994 500 493 NATIONALITY Kenya Indonesia Pakistan Myanmar Uzbekistan TOTAL 350 324 275 267 231

lAbOuR pRACTICES
We have well-designed and practiced human resource policies in place covering all aspects of employment such as the Code of Business Conduct and Ethics policy and the Equal Employment Opportunity policy. We seek to enhance our HR policies, whilst enabling localisation of host country practices in order to enhance operational effectiveness and efficiency, embrace national differences and meet legal obligations in the host country. The revision of these HR policies commenced in 2008 and will continue into 2009.

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Global Reporting Initiative G3 Index

GRI Section 1 1.1 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 STRATEGY AnD PROFILE Executive Chairman Statement about the relevance of sustainability to Jumeirah Group and its strategy ORGAnISATIOnAL PROFILE Name of the organization. Primary brands, products, and/or services. Operational structure of the organization. Location of organizations headquarters. Countries in which the organizations operations are located. Nature of ownership and legal form. Markets served. Scale of reporting organization. Significant changes during the reporting period. Awards received in the reporting period. REPORT PROFILE Report Profile 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.10 3.11 3.12 3.13 4 Reporting period for information provided. Date of most recent previous report (if any). Reporting cycle. Contact point for questions regarding the report or its contents. Report Scope and Boundary Process for defining report content. Boundary of the report. specific limitations on the scope or boundary of the report. Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement. Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report Table identifying the location of the Standard Disclosures in the report. Assurance Policy and current practice with regard to seeking external assurance for the report. GOvERnAnCE, COMMITMEnTS AnD EnGAGEMEnT Governance Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight. Describe the mandate and composition (including number of independent members and/or nonexecutive members) of such committees and indicate any direct responsibility for economic, social, and environmental performance.

Page Number(s) 5 6 7 7 5 7 7 6, 7, 14 7, 25 7, 8 3, 26, 30

Coverage

KEY Full coverage Partial coverage N/A Not applicable to this report

4 N/A 4 4 4, 9 4 4 4 N/A N/A 32 2, 10

4.1

12, 13

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GRI Section 4.2 4.3 4.4 4.9 4.10 4.13 4.14 4.15 4.16 4.17 5 Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organizations management and the reasons for this arrangement). For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Procedures of the highest governance body for overseeing the organizations identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles. Processes for evaluating the highest governance bodys own performance, particularly with respect to economic, environmental, and social performance. Memberships in associations (such as industry associations) and/or national/international advocacy organizations Stakeholder Engagement List of stakeholder groups engaged by the organization. Basis for identification and selection of stakeholders with whom to engage. Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. MAnAGEMEnT APPROACH AnD PERFORMAnCE InDICATORS Economic Performance Indicators Aspect: Market Presence EC6 EC7 EC9 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation. Understanding and describing indirect economic impacts, including the extent of the impacts. Environmental Performance Indicators Aspect: Energy EN3 EN4 EN5 EN6 EN7 Direct energy consumption by primary energy source. Indirect energy consumption by primary source. Energy saved due to conservation and efficiency improvements. Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. Initiatives to reduce indirect energy consumption and reductions achieved. Aspect: Water EN8 EN10 EN18 Total water withdrawal by source Percentage and total volume of water recycled and reused. Aspect: Emissions, Effluents, and Waste Initiatives to reduce greenhouse gas emissions and reductions achieved.

Page Number(s) 12 12, 13 9, 10, 12, 25, 26 9, 10 9 18, 19 9 9 9 9

Coverage

Global Reporting Initiative G3 Index

KEY Full coverage Partial coverage N/A Not applicable to this report

17 27 18

20 21, 22 21, 22 21 21, 22

22 22 21, 22, 23

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GRI Section Aspect: Products and Services EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. Social Performance Indicators Society Aspect : Public Policy SO5 Public policy positions and participation in public policy development and lobbying Labour Practices and Decent Work Aspect: Employment LA1 LA3 Total workforce by employment type, employment contract, and region. Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations. Aspect: Occupational Health and Safety LA6 KEY Full coverage Partial coverage N/A Not applicable to this report LA10 LA11 LA12 LA8 Percentage of total workforce represented in formal joint managementworker health and safety committees that help monitor and advice on occupational health and safety programs. Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases. Aspect: Training and Education Average hours of training per year per employee by employee category Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings. Percentage of employees receiving regular performance and career development reviews. Aspect: Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. Product Responsibility Product Responsibility Performance Indicators Aspect: Product and Service Labelling PR15 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Page Number(s) 20, 21, 22, 23

Coverage

Global Reporting Initiative G3 Index

18, 19

25 27

30 30

29 28, 29, 30 29, 30

13, 27, 31

14, 15, 16

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The Emirates Academy of Hospitality Management