Xanterra 2017 Sustainability Report

OUR SOFTER FOOTPR INT ® 2017 SUSTAINABILITY REPORT Xanterra Parks & Resorts ®

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Introduction

A MESSAGE FROM Philip F. Anschutz

When The Anschutz Corporation acquired Xanterra Parks & Resorts® in 2008, the company’s stewardship of national parks and long-established commitment to conservation were an important part of our decision. Since that time, Xanterra has continued to perform admirably, with many award- winning environmental programs and a pioneering, entrepreneurial approach to the new frontier of renewable energy and LEED-certified (Leadership in Energy and Environmental Design) buildings. This 2017 report highlights some of the best of Xanterra’s programs and initiatives. In order to truly understand Xanterra’s commitment to preservation, efficiency, and pragmatic solutions, I invite you to come experience some of Xanterra’s many properties and adventures in the most beautiful places on Earth.

Crater Lake

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Table of Contents

1 INTRODUCTION 1 A Message from Philip F. Anschutz 4 A Message from the CEO 6 Welcome 7 Our Company Mission 8 Our Softer Footprint Vision

9 2025 Goals 10 Our Assets

12 LIVING OUR SOFTER FOOTPRINT 13 Facing Our Future 14 Stories from the Field 26 By the Numbers

40 GIVING BACK 42 Xanterra’s Philanthropy

46 CELEBRATING OUR WORK 48 Awards, Certifications & Memberships

Mules and riders heading down the Bright Angel Trail in the Grand Canyon

Mount Rushmore National Memorial

WELCOME! A Message from the CEO

achieving our ambitious 2025 Goals , the company continues to modernize its infrastructure, change its behavior, and implement new technologies. These will ultimately save millions of gallons of water, reduce waste sent to landfills, and reduce carbon emissions. We continue to track and monitor the overall footprint of our operations. In this report, we introduce our new metric, Carbon Productivity, to empha- size that as a carbon-based business, we strive to be as efficient and effective as possible in regard to carbon emis- sion reduction. We recognize that Xanterra is a growing company, and increased operations bring increased carbon emissions. Though our abso- lute emissions may rise, we strive to become more efficient overall. Xanterra also continues to build a culture of creativity and innovation in order to achieve our 2025 Goals .

Since our last report, the world and our company have experienced a considerable amount of change. As for Xanterra, we have expanded our global adventure travel portfolio with the acquisition of Holiday Vacations, acquired new cruise ships and prop- erties, entered into new national park contracts, and witnessed record visita- tion at the national parks we operate. While many things change around us, at Xanterra, our commitment to the envi- ronment and the communities in which we operate remains constant. During the 23 years I have been CEO, I have been proud to lead Xanterra’s charge in the areas of environmental stewardship and combating climate change. Yet there is much more work ahead. We are proud of the results we have achieved since the publication of our last sustainability report. While encountering many challenges in

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Introduction

Along with our partner, the National Park Service, we recently designed and constructed the largest green building project within the National Park System, as part of the Canyon Lodge redevelopment project in Yellowstone National Park. This project, as well as the refurbishment of the old Haynes Photo Shop at Mammoth, earned a total of five gold and one silver LEED certifications. These projects illustrate the next wave of park architecture projects led by Xanterra. Finally, we continue to look to the future. As part of our new concession contracts at Mount Rushmore National Memorial and Rocky Mountain National Park, Xanterra has committed to a significant increase in renewable energy generation and to communi- cating the impact of climate change to our guests. We are also expanding our commitment to supporting local vendors—in both our food and beverage offerings and retail products. I look forward to detailing these efforts in our next report. I made this statement in our last report, and I believe it is even more relevant in today’s world: Legendary Hospitality with a Softer Footprint is more than just our mission. It is how we remain steadfast to our commitments in a world filled with change.

In 2016, we launched an efficiency study at Yellowstone to examine and rethink how we do business. We found that as the company becomes more effi- cient operationally, we become more efficient environmentally. Operational improvements that save time and improve guest experiences often save water and energy. Our sustainability programs address a variety of issues around the world and are far more complex than we ever imagined. Our initiatives span areas from off-grid solar energy, to purchasing local goat cheese, to cleaning the hulls of our Windstar fleet for fuel efficiency. We also know that we can’t achieve success by acting alone, and that there is strength in numbers. This is why we have teamed with organizations such as Change the Course, World Vision, and The Coca-Cola Company to help us meet our goals. By working together, we can have positive impacts for decades.

AndrewN. Todd President & Chief Executive Officer Xanterra Parks & Resorts

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Introduction

Welcome Xanterra’s 2017 Sustainability Report summarizes our progress since our last report, published in 2015, and exam- ines the progress toward our 2025 goals . At Xanterra, we continue to set aggressive goals and lead our industry in sustainability and in addressing climate change. Our responsibility does not stop with the environment. We must also keep our guests and employees safe, and contribute to the communities where we operate. Our environmental and social responsibility programs now span almost 20 years. We are very proud of our accomplishments. But with each passing day, we understand that there is more we can do as a company—and even more we can do together, with our guests and employees, to make the world a better place. WHO WE ARE The name Xanterra is derived from Xanadu, an idyllic paradise described in the poem “Kubla Kahn” by Samuel Taylor Coleridge, and the Latin word for earth, terra . Since 1876, Xanterra has operated hospitality facilities in some of the most beautiful places on Earth. Xanterra is the direct descendant of the legendary Fred Harvey Company that first welcomed nineteenth-cen- tury travelers to the American West with hot meals, prompt service, and

comfortable lodgings. By the 1870s, founder Fred Harvey recognized the role that America’s vast and majestic natural landscapes would play in the country’s national identity, and built a company that became famous for deliv- ering unrivaled hospitality in rugged surroundings. More than a century later, Xanterra continues the Fred Harvey legacy of visionary hospitality and operational excellence—both on land and at sea. Xanterra continues to be the largest national park concessioner in the United States. Since being purchased by Denver-based The Anschutz Corporation, Xanterra has expanded to include a far-reaching and diverse port- folio of experiential leisure offerings. As Xanterra’s portfolio has become more complex, so have our sustain- ability programs. Thanks to careful tracking and reporting, advanced resource management technologies, and employee-led innovations, we are always finding new ways to make our operations more sustainable. We hope that this report will offer our guests, employees, partners, and other readers information and inspiration regarding our efforts and lessons. We also hope it will be an invitation to join us as we soften our footprint.

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VBT Bicycling and Walking Vacations, Italy

Our CompanyMission LEGENDARY HOSPITALITY WITH A SOFTER FOOTPRINT Legendary Hospitality is the heart of our business and how we care for our guests. With a Softer Footprint speaks to our sustainable business practices and to being good stewards of the places we serve.

Introduction

Our Softer Footprint Vision

Providing memorable experiences for our guests and employees, while protecting the environment and benefiting the places and communities where we operate

Country Walkers destination in Iceland

Our Softer Footprint is also the name of our award-winning Environmental Management System (EMS), which is guided by the above vision statement. Our sustainability efforts are organized under the following four missions, which represent the pillars of our vision:

1. Use resources efficiently and effectively 2. Strive for zero waste 3. Build and operate sustainably 4. Provide guests with sustainable choices

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2025 Goals 5% less energy used annually 5% less water used annually 25% of assets certified landfill-free 80% waste diversion attained at noncertified assets 50% reduction in CO 2 emissions 70% sustainable cuisine 93% (weighted) overall guest satisfaction

Based on a 2014 baseline

Windstar ships

Our Assets 1

RESORTS The Oasis at Death Valley

NATIONAL PARKS (Contracts) Crater Lake National Park Glacier National Park Grand Canyon National Park Mount Rushmore National Memorial Rocky Mountain National Park Yellowstone National Park Zion National Park

HOTELS Cedar Creek Lodge (New in 2017) Grand Canyon Railway Hotel The Grand Hotel CRUISE & ADVENTURE TRAVEL Austin Adventures Country Walkers Grand Canyon Railway Holiday Vacations VBT Bicycling & Walking Vacations Windstar Cruises

OHIO STATE PARKS (Contracts) Deer Creek State Park Geneva State Park Marina Maumee Bay State Park Mohican State Park Punderson State Park Salt Fork State Park

RETAIL Tusayan Trading Post

Zabriskie Point in Death Valley National Park

1 As of June 2017.

S U S TA I N A B I L I T Y Living Our Softer Footprint

Facing Our Future Xanterra recognizes the need to be proactive in addressing climate change and the responsibility of stewardship in the places and communities where we operate. In 2016, Xanterra joined companies around the world and participated in the Carbon Disclosure Project (CDP), a nonprofit global disclosure system. The CDP, through measurement and disclosure, assists companies with effective management of carbon and climate change risk. Annually, we submit detailed information about our company, the resources we use, and the programs and projects we are pursuing, and in return, CDP compares our data to that of thousands of other companies, cities, states, and regions. The result is a progress grade. For our first report, we earned a grade of C-. While we were disappointed with that grade, the process has shown us opportunities for improve- ment. We aim to move our score higher in 2017 and later years with third-party data verification, new solar photovoltaic installations and other energy and water efficiency projects. The success of the company will be determined by how it responds to the risks and impacts of uncer- tainty, especially climate change. Our Softer Footprint is Xanterra’s environmental management program addressing this and other external challenges.

Yellowstone National Park

Living Our Softer Footprint

WHAT MAKES US PROUD Stories from the Field

Our employees and guests contribute to the success of Our Softer Footprint environmental and sustainability initiatives. The following are just some of the projects, initiatives, and achievements from our company. More information on these and other projects can be found at Xanterra.com/sustainability.

 GRAND CANYON RAI LWAY BIOLUBRICANTS PROGRAM Grand Canyon Railway’s commitment to pollution prevention is reflected in even the small activities that keep the trains running. In addition to both steam Engines #29 and #4960 burning 100 percent renewable fuel (running on fuel from kitchen grease generated in our and other regional kitchens), the railway has been in the process of converting all of its heavy equipment to nonpetroleum-based lubricants. The goal of Grand Canyon Railway is to be both clean and green.

A Grand Canyon Railway steam engine

RESPONSIBLY MANAGING ELECTRONIC WASTE Every year, Grand Canyon Railway partners with the City of Williams, Arizona; Xanterra South Rim, L.L.C.; the Grand Canyon Association; and the National Park Service for a community- wide electronic waste collection. In 2016, 25,237 pounds (12.6 tons) of e-waste was collected by EGreen IT and diverted from the landfill. Since the program began in 2008, Grand Canyon Railway has diverted more than 122 tons of e-waste.

 ELECTRI FYING Over the last several years, Xanterra has been planning for increased demand for electric vehicle charging facilities. Supporting the road trip of the future, electric vehicle charging stations have been installed at locations including Yellowstone National Park, Zion National Park, Glacier National Park, and Crater Lake National Park. In partnership with the National Park Service, more of these stations will be installed over the next few years.

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Living Our Softer Footprint

 OPERATION SHRIVELY APPLES

Operation Shrively Apples at the Grand Canyon South Rim diverted more than 6,500 pounds of food waste from the landfill in 2016 and provided supplemental, veterinarian-approved nourishment to the mules. Many employees work together to make this program a success—from the kitchen staff in the restaurants, to the porters who move the food waste, to the livery staff who feed the material to the mules. The program was expanded to include Phantom Ranch in 2016. Operation Shrively Apples is a closed- loop, or “circular economy,” project. The manure produced by the mules is transported to Flagstaff, Arizona, for composting. The compost is then sold to local nurseries and farmers.

DRINKING LOCALLY Crater Lake National Park is located in the midst of one of Oregon’s wine-producing regions. The state is also very well known for its craft beers and microbreweries. At the Crater Lake Lodge Dining Room and Annie Creek Restaurant, 100 percent of the wine served is from Oregon. There are more than 12 different Oregon wineries represented, including Eola Hills in Rickreall, which produces the signature Crater Lake wines. More than 95 percent of the beer inventory sold at the Camper General Store in Mazama Village is Oregon beer. Even the cider is provided by Atlas Brewing Company, located in Bend, Oregon.

SECOND LI FE WOOD  In 2016, Xanterra partnered with Urban Lumber of Springfield, Oregon, to design and build new dining room furniture, including tables and chairs, for the Crater Lake Lodge dining room. Urban Lumber specializes in hand- crafted furniture made from salvaged trees.

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Moran Lodge at Yellowstone National Park

Living Our Softer Footprint

 LEADING LEED AT YELLOWSTONE NATIONAL PARK Xanterra understands the impacts construction has on occupants, the environment, and the national parks. We strive to implement the highest level of sustainable design and construction, •• Chittenden Lodge: Gold, BD + C New Construction v3, 2009 •• Rhyolite Lodge: Gold, BD + C New Construction v3, 2009 •• Washburn Lodge: Silver, BD + C New Construction v3, 2009

and consider how these buildings will be resilient to changing natural conditions and events. In 2015 and 2016, Xanterra, with the National Park Service, embarked on the largest LEED new-construction project in both the Park Service’s and Xanterra’s history. Our first project, the Paintbrush Dormitory, received the highest level of recognition, Platinum, by achieving the following: •• diverting more than 90 percent of construction waste from landfills •• using Montana-sourced mountain pine beetle-kill wood extensively •• reducing energy by 40 percent and water by 35 percent more than conventional construction •• meeting approximately 11 percent of the building’s electricity demand through a 32kW photovoltaic array Following the success of Paintbrush, Xanterra achieved these awards for the Canyon Lodge redevelopment project, the largest building project within the park system in decades: •• Moran Lodge: Gold, Building Design + Construction (BD + C) New Construction v3, 2009 •• Hayden Lodge: Gold, BD + C New Construction v3, 2009

The following green building practices contributed to the successful LEED awards: •• protected or restored approx- imately 1,050,000 square feet of land from the previous development on the site •• reduced annual energy demand by 30 percent, compared to a conventionally built and operated structure, equivalent to the carbon sequestered by 261 acres of forest over the same time period •• reduced annual water demand by more than 3.5 million gallons or 46 percent, compared to a stan- dard-constructed building, and eliminated the need for irrigation •• sourced more than 30 percent of the materials within 500 miles of the project site, including coun- tertops and windowsills made from recycled glass and fly ash, and finishes made fromMontana mountain pine beetle-kill wood Xanterra’s most recent project involved achieving BD + C New Construction v3, 2009 at a Gold level for the renovation of the Haynes administration building at Mammoth. The Haynes renovation of a historic photo shop provided Xanterra with an opportunity to showcase how to blend the “old” with the “new” and create a resilient, sustainable building.

Did you know that the 2004 Xanterra Gardiner Employee Housing Project was the first LEED- certified project in Montana?

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Living Our Softer Footprint

GROWING HISTORY  Xanterra employees at Mount Rushmore maintain a 1,500-square-foot garden outside the memorial in Keystone, South Dakota. The primary purpose of the garden is to provide local and sustainable produce for Xanterra employees and guests. Since the garden was established, annual crops have included green beans, eggplant, peas, peppers, strawberries, tomatoes, cucumbers, melons, zucchini, beets, carrots, green onion, radishes, asparagus, lettuce, rhubarb, spinach, swiss chard, chives, cilantro, lemon balm, parsley, spearmint, marigolds, nasturtium, and sunflowers. In 2015, a partnership between Xanterra and the Thomas Jefferson Center for Historic Plants at Monticello—Thomas Jefferson’s primary resi- dence and plantation—was established. The center provided Xanterra with heirloom seeds, allowing us to continue the historic garden of Thomas Jefferson. Since 2010, the chefs at Mount Rushmore have served more than 2,472 pounds of locally grown produce.

THE OASIS AT DEATH VALLEY  Xanterra is currently in the middle of an extensive renovation of its property formerly known as Furnace Creek Resort, a resort and ranch inholding within Death Valley National Park. Furnace Creek was first opened in 1927. In 2017, all of the property and its golf course will undergo extensive enhancements and improvements, including significant water and energy conservation projects. The renovations will include increased building insulation, energy efficient food and beverage appliances, LED lighting, International Dark Sky-compliant exterior fixtures, water-saving faucets and toilets, reclaimed water irrigation systems, and improved heating (yes, it is needed at Death Valley) and air conditioning systems.

 WATER HARVESTING PROGRAM Grand Canyon Railway (GCR) has been committed to water conservation and continues to seek innovative ways to increase water harvesting for use in its steam trains. Each steam train round trip fromWilliams, Arizona, to Grand Canyon National Park uses approximately 12,000–14,000 gallons of water for the steam engine boiler. In 2016, GCR harvested and reused more than 142,000 gallons of rainwater and snowmelt for the steam operations. Since the harvesting program began in 2010, more than 486,000 gallons of water have been reused.

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Living Our Softer Footprint

WEARING BOTTLES Xanterra has several

Paintbrush Dormitory

lines of souvenir clothing that are

giving soda and water bottles a second life. Working with vendors such as Kastlfel and Repreve, Xanterra sells clothing and T-shirts that are made from recycled

bottles. By using recycled bottles or rPET (recycled polyethylene terephthalate),

DON’T COUNT OUT THE SMALL STUFF At Mount Rushmore, Xanterra partners with TerraCycle to recycle or upcycle hard-to-recycle items, including snack bags, cigarette butts, cleaner even toothpaste tubes. Every year we recycle about 200 pounds of such items, including more than 9,000 snack bags and 47,000 cigarette butts. Xanterra is helping to keep used bottles out of landfills, rivers, trails, and oceans. One extra-large T-shirt can keep up to 19 bottles from ending up in the trash. packaging, drink pouches, writing instruments, and

RENEWABLE ENERGY  Solar energy installations continue to grow in the United States, and Xanterra is contributing to the arc of this trajectory. As part of our commitment to clean and reliable energy generation, a 32kW system was installed at the Paintbrush Dormitory project at Yellowstone National Park. Not only does this system help offset the electrical demand of the operations, but it proves that regardless of the remoteness of a location, renewable energy can still be generated.

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Living Our Softer Footprint

COMMUNITY ENGAGEMENT AT GLACIER NATIONAL PARK  On January 15, 2014, Xanterra took over the concession operations for

sustainability, met with a representa- tive from Dirt Rich, a start-up company attempting to create a food scrap collec- tion and composting business for the Flathead Valley. From there, Xanterra worked with Dirt Rich to initiate a program for Glacier National Park. As a result, the food scraps of 2015 became the compost beds for the beautiful flowers, sourced by local nurseries, seen around the park in 2016. Dirt Rich now has several more employees and has expanded the program to include other large hospitality operations and the local high school. When Xanterra met Tumblewood Teas, they were a bulk and online retail operation. Through a partnership with Xanterra, they developed single-serving packets of their organic teas. By the end of the 2014 season, Tumblewood had experienced a 10 percent increase in overall sales and was able to hire several employees from the town of Big Timber, Montana. At the beginning of 2014, glass recycling in the park was difficult. There were no receptacles for guests to use and pick-up was infrequent. Working with New World Recycling, we have tripled the amount of glass recycled in the park and now offer the only public glass drop-off and recycling center in the Flathead Valley. Additionally, Xanterra worked with Back Alley Metals of Red Lodge, Montana, to provide unique, customized park-specific receptacles that illustrate climate change impacts on some of the most iconic glaciers in the park. Through its efforts in sustainable purchasing and its other environmental initiatives, Xanterra is having a lasting impact on the individuals and commu- nity that call Glacier National Park home.

Glacier National Park. The new 16-year contract contains many commitments for improvements, including significant environmental sustainability pledges around recycling, composting, and local food sourcing. In September 2016, less than two years later, the National Park Service awarded the operations at Glacier with the Environmental Achievement Good Neighbor Award for the company’s work within the local Flathead Valley community. The award recognized these significant achievements: •• 59 percent total sustainable food and beverage purchases, totaling more than $1,000,000, of which $675,000 was procured from local food and beverage vendors •• donation of more than two tons of furniture to Habitat for Humanity •• participation as a season sponsor for the Columbia Falls Community Farmers Market Additionally, the Xanterra team at Glacier National Park has been looking at every aspect of the operation and asking the questions, How can we improve the sustainability of the operation? Can this be done here, given the remoteness? The following are just a few of the success stories resulting from this exercise: •• 22 percent reduction in the amount of solid waste sent to the landfill from 2014 •• 12 percent reduction in electricity from 2014

At a local Earth Day event in 2015, Matt Folz, Xanterra’s director of

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Living Our Softer Footprint

Xanterra Lake Josephine and Salamander Glacier in Glacier National Park

RENEWABLE ENERGY For almost two decades, Xanterra has been installing projects that use the sun and wind to help power our operations. We have renewable energy installations at Maumee Bay State Park, the Oasis at Death Valley, Yellowstone National Park, Grand Canyon Railway, and Rocky Mountain National Park. In 2016, Xanterra generated approx- imately 2,170,562 kWh from these installations, avoiding the emissions from 1,627,767 pounds of coal. Additional installations and expansions are planned for 2017 and 2018 in connection with projects at Grand Canyon National Park, Mount Rushmore National Memorial, and Rocky Mountain National Park.

CHOOSE TO BE STRAW FREE  In the spring of 2013, Xanterra partnered with then nine-year-old Milo Cress to create the Choose to Be Straw Free program, bringing awareness to the growing issue of waste from single-use disposables and litter. Now in the program’s fourth year, Xanterra continues to educate employees and guests on how small choices and behavior changes can collectively impact environmental issues.

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Living Our Softer Footprint

SAVING THE CHESAPEAKE BAY The Kingsmill Resort 2 partnered with the Chesapeake Bay Foundation in 2016 to help restore native oysters. In an average season, almost 40,000 shells are being saved and repurposed to rehabilitate and build new oyster reefs in the Chesapeake Bay watershed. Oyster reefs not only facilitate the growth of new oysters but also provide valuable habitat for numerous species of marine life. According to the Chesapeake Bay Foundation (CBF), “thousands of bushels of recycled oyster shells are turned into habitats for millions of oysters planted in the bay and in the rivers.” GREAT LAKES WATER QUALITY Debris in bodies of water is not just limited to the oceans. Every day trash washes ashore from dumping, most of it illegal, on Lake Erie. Every spring the team at Xanterra’s operation at Maumee Bay State Park works with the commu- nity to clean up the trash, including large items like tires that wash onto the beaches.

Windstar ship

SMOOTH SAI LING  Even though half of Xanterra’s Windstar fleet can travel at times on wind power alone, fuel consumption is critical to the operations. Fuel engines power every service and amenity on a cruise ship. They run the electricity, power the water delivery, and ensure that the food remains fresh. Behind every successful Windstar itinerary is a captain and his/her teamworking hard to minimize fuel consumption. Everything is considered, including speed of port arrival and departure, continuous speeds at sea, optimal operation of the engines, cleanliness and smoothness of the hull, and even electricity use on board. We are in the process of installing real-time feedback systems on the bridges of the fleet to provide accurate rates of fuel use and CO 2 emissions.

COLD WATER  LAUNDRY The Grand Hotel recently converted all of its employee housing laundry to a cold- water laundry system. Most of the energy required for laundry is used in the heating of the water. This system infuses the wash water with power ions and activated oxygen to provide superior cleaning, while saving hundreds of dollars per year in detergent and energy costs.

The Grand Hotel

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2 As of March 2017 Kingsmill Resort is no longer owned or operated by Xanterra.

Living Our Softer Footprint

GREEN IS  IN FASHION Xanterra has installed a new sustainability kiosk at the camp store located at Lake McDonald Lodge in Glacier National Park. With this kiosk, guests learn about the sustainable attributes of some of the products in the store. Are the socks made from recycled materials? Is the wood reclaimed? The kiosk provides information that supports guests’ interest in making more sustainable choices. The kiosk provides product information, including material sourcing, percentage of recycled content, and certifications.

Camp store at Lake McDonald Lodge

ZERO WASTE AT NPS CENTENNIAL The year 2016 was a mile- stone for the National Park Service (NPS)—100 years since its inception. In August of 2016, the NPS held a celebration at Yellowstone National Park, and offered an opportunity for Xanterra to showcase its commit- ment to sustainability to a national audience. By working with food and beverage vendors to eliminate nonrecyclable and noncompostable items during the celebration, Xanterra was able to provide an opportunity to sort material at zero-waste stations and divert more than 90 percent from landfill disposal.

The Mammoth Dining Room

GREEN STARS  In 2016, the Mammoth Dining Room at Yellowstone National Park was officially certified as a 4-Star Green Restaurant by the Green Restaurant Association. It is the first restaurant in a national park to achieve this level of certification. The certification includes categories that address sustainable hospitality topics such as how to manage disposables, energy and water reduction, sustainable furnishings and buildings, food, chemicals, pollution, and waste.

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Living Our Softer Footprint

WAR ON FOOD WASTE  Over the last several years, Xanterra has conducted audits to deter- mine the composition of its “waste stream.” Often, due to the wildlife in our remote locations, composting is very difficult or not allowed. To reduce the amount of food scraps that would be sent to the land- fill, Xanterra is using “in-vessel” composting solutions to turn what would have been waste into gold. Our operations at Zion National Park use a dehydrator to remove water from food waste and then, in a controlled situation, turn food waste into compost. At Yellowstone National Park, starting in 2015, we began implementing a three-way specially designed waste sorting receptacle in our guest rooms. These receptacles, made from 100 percent recycled content, allow our guests the option of sorting their waste for recycling, compost, or landfill disposal. In 2016, Xanterra’s operations at Glacier National Park, in partnership with a local composting company, were able to collect more than 175,000 pounds of food waste that in previous years would have been sent to the landfill.

A bison jam

TURN THE KEY  AND BE IDLE FREE At many of our locations, we have implemented a site-wide idle reduction program for our vehicle fleet and provide no-idling communication to our guests. At Glacier National Park, even the hot beverage sleeves remind guests how easy it is to not idle their cars. Millions of people every year are able to enjoy the national parks from the convenience of their vehicles. Seeing wildlife while in vehicles is a safe and accessible way to observe the natural envi- ronment. Unfortunately, during wildlife “jams,” cars often sit with the engines idling , wasting gas and emitting fumes and green- house gases into the park. The next time you find yourself in a bison, moose, or other wildlife jam, remember, it is easy to “ turn the key and be idle free. ”

Compost machine at Zion

EVEN ACCOUNTING DOES IT  The Corporate Accounting and Finance Department is imple- menting XEP, Xanterra’s Electronic Purchasing, a new accounts payable and purchasing system that not only increases the efficiency of payment but also has significant environmental benefits. The new system, once implemented, will save 1.57 tons of paper per year—the equivalent of 38 trees!

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The Narrows at Zion National Park

Living Our Softer Footprint

By the Numbers We set ambitious sustainability goals for our company twice: first in 2004 with a 2002 baseline and then in 2015 we set 2025 Goals with a 2014 baseline. We established the 2025 Goals based on our past performance and our commitment to a carbon-stable future. Xanterra measures and monitors progress toward these goals and operational effectiveness through Ecometrix, our proprietary environmental management tracking and analysis process.

In the spring of 2017, Xanterra worked with Point380 to complete a third-party verification of the Ecometrix data, including greenhouse gas emissions (GhG). According to Point380’s review, Xanterra’s 2016 Scope 1 and 2 data are: •• founded on appropriate systems for the collection, aggregation, and analysis of quantitative data for determination of Scope 1 (direct) and Scope 2 (indirect) emissions and water withdrawal data •• correct at a limited level of assurance •• meeting the minimum level of accuracy of at least 95 percent •• accurate, materially correct, and a fair representation of GhG emissions and water withdrawal data •• presented fairly and in accordance with the verification criteria in all material respects •• prepared in accordance with

Our operational team reports monthly on the following metrics:

•• consumption of electricity, natural gas, gasoline, diesel, propane, fuel oil, and water •• generation and purchase of renewable energy •• overall greenhouse gas emissions •• total solid waste and composted waste, as well as amount of material recycled and waste diverted from landfills •• sustainable food and beverage, sustainable retail, and operational sustainability •• overall hazardous, recycled hazardous, electronics, and universal waste generated Our management teams review the data and performance variances monthly, supporting our philosophy of contin- uous improvement. Transparency and accuracy have been focuses of our reporting since our first public disclosure in 2002. In addition to detailing our performance through our sustainability report, Xanterra also participates in and provides data to the Carbon Disclosure Project.

ISO-14064-1, World Resource Institute/ World Business Council for Sustainable Development Greenhouse Gas Protocol and the GRI G4 guidelines, including associated requirements for the design, development, management, reporting, and verification of an organization’s environmental data

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Living Our Softer Footprint

CARBON PRODUCTIVITY Xanterra has been a leader in addressing climate change for almost two decades. We have also been a successful business for much longer. Is it possible for a business to curb climate change emissions while simultane- ously experiencing economic growth? Profitability and greenhouse gas emis- sions reduction are often considered at odds with each other. The challenge of a successful climate change mitiga- tion program for a business is to have increasing revenues while simulta- neously decreasing greenhouse gas emissions. Xanterra monitors this ratio as carbon productivity — that is, how productively we manage the carbon

required to support our business activ- ities. We monitor the revenue we earn per unit of carbon we emit. Increasing revenue per unit of carbon equates to greater carbon productivity. In the figure below, our carbon productivity shows a decreasing number since 2014, indicating that we are not meeting our goals. Since the metric was established with our 2014 baseline, we are emitting more carbon per million dollars of revenue. A large portion of the carbon productivity decrease correlates to the recent addition of three fuel-intensive cruise ships to the Windstar portfolio.

FIGURE 1 Carbon Productivity Unit: Million Dollars of Revenue/mT CO 2 e

0.008

0.007

0.006

0.005

0.004

0.003

0.002

0.001

0.000

2014

2015

2016

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Living Our Softer Footprint

TRACKING CO 2 EMISSIONS Almost every activity and transaction that occurs at Xanterra’s operations potentially impacts the environment and creates greenhouse gas emissions. Some operations, such as our train and cruise ships, require more carbon intensity than others, e.g., providing lodging in a remote area. In addition to carbon productivity, our greenhouse gas emissions are measured as metric tons of carbon dioxide equivalent. 3 But business does not remain constant. The company’s operations change from year

to year and our calculation takes these changes into consideration. To better understand how Xanterra’s emissions change from year to year relative to operations, we review our absolute emissions relative to normalized emis- sions, that is, emissions that have been adjusted relative to revenue fluctuations. Since reestablishing our baseline in 2014, over the last two years [FIGURE2] , Xanterra has experienced an overall rise in greenhouse gas emissions. The

3 A metric ton of carbon dioxide equivalent (mT CO 2 e) is the measurement used to compare the emissions from different greenhouse gases based on their potential to impact global warming, or GWP (global warming potential). The carbon dioxide equivalent is calculated by multiplying the tons of emissions by the GWP specific to that gas.

FIGURE 2 Total Greenhouse Gas Emissions Unit: mT CO 2 e

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

2014

2015

2016

ABSOLUTE

NORMALIZED BY REVENUE

28 | OUR SOFTER FOOTPRINT

Living Our Softer Footprint

Xanterra started measuring and monitoring its overall carbon emis- sions in 2000. In fact, Xanterra was the first in our industry to measure and report overall emissions. Thus, we are well into our second decade of carbon measurements [FIGURE 3] and we are proud of our progress. When normalized for the company’s changes by revenue, Xanterra has achieved a 35 percent reduction in greenhouse gas emissions since 2000.

majority of this increase directly corre- sponds to the addition of threeWindstar ships. As of 2016, the emissions from theWindstar fleet’s fuel consumption account for approximately 50 percent of Xanterra’s total emissions. Windstar participates in continuous fuel and emis- sionmonitoring and is implementing various programs, such as continuous speed policies, fuel curve optimizations, and hull inspections and polishing, to reduce the overall emissions.

FIGURE 3 CO 2

Emissions Reduction

Unit: Percent Reduction Since 2000

60%

50%

Acquisition of three additional Windstar ships

40%

30%

Acquisition of first Windstar ships

20%

10%

2000 Baseline

0%

-10%

-20%

-30%

-40%

-50%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ABSOLUTE

NORMALIZED BY REVENUE

XANTERRA | 29

Living Our Softer Footprint

CARBON EMISSIONS BY SOURCE Xanterra’s greenhouse gas emissions result from the multiple sources of fuel required to keep our operations running. To reduce emissions and meet our goals, we analyze the emis- sions from each fuel source. As previously stated, the greatest source of our emissions is fuel consumed by our Windstar cruise ship fleet. Since the acquisition of the new yachts, we have been implementing procedural changes, as well as combustion moni- toring that provides real time engine CO 2 emissions data. This data provides performance feedback to the crew that is important in making operational

decisions that reduce fuel consumption and emissions.

The figure below illustrates Xanterra’s greenhouse gas emissions by source. The second largest source of green- house gas emissions is the electricity needed for our land-based operations. Our electricity reduction plans are centered around constructing more efficient buildings, operating our existing buildings better, providing training for our employees in resource conservation, generating more renew- able power onsite, implementing new technologies, and engaging our guests in resource conservation.

FIGURE 4 Greenhouse Gas Emissions by Source Unit: mT CO 2 e

150,000

120,000

90,000

60,000

30,000

0

2014

2015

2016

ELECTRICITY

PROPANE

FUEL OIL

DIESEL

MARINE GAS OIL

NATURAL GAS

GASOLINE

BIODIESEL

30 | OUR SOFTER FOOTPRINT

Living Our Softer Footprint

OVERALL ENERGY CONSUMPTION Xanterra reviews its overall absolute energy consumption annually. The figure below represents the compa- ny’s absolute consumption starting in 2000. It includes the changes to the energy fuel mix that occurred with the addition of the Windstar fleet in 2011 (marine gas oil appears in 2012), as well as the introduction of biodiesel used at Grand Canyon Railway as a substitute for diesel. This data is presented in aggregate for the entire company by year.

annually by operation, it becomes apparent that energy consumption fluctuations can be attributed to a number of causal factors. For example, weather patterns affect the number of days buildings need to be heated. Increases in numbers of guests result in more reservations for bus and boat tours, which, in turn, increase fuel consumption. Xanterra continues to search for opportunities to decrease overall energy consumption. For example, we are converting fuel oil boilers to more efficient propane, thereby decreasing the amount of fuel oil we use.

However, the overall absolute energy consumption is also tracked by each operation, and this provides feedback on overall efficiency. By tracking data

FIGURE 5 Total Energy Consumption Unit: BTUs in Millions

1,500,000

1200,000

900,000

600,000

300,000

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

FUEL OIL

DIESEL

ELECTRICITY

PROPANE

GASOLINE

BIODIESEL

MARINE GAS OIL

NATURAL GAS

XANTERRA | 31

Living Our Softer Footprint

ELECTRICITY Electricity is something almost everyone takes for granted, even in some of the most remote locations where we operate. Electricity is the primary source of emissions for Xanterra’s land-based operations, as it is the primary source of energy for our facilities. It is what keeps the lights burning in the dining rooms and provides the heat and air conditioning for the comfort of our guests. For most of our land-based operations, electricity is provided by the utility grid and supplemented by a number of onsite renewable energy systems, such as photovoltaic instal- lations. In 2014, due to the material

changes to our business, including the addition of Windstar, various acquisitions, and contract changes, we reestablished the baseline for our 2025 Goals . The figure below illustrates that even with the addition of activities, our absolute electricity decreased by 6 percent through 2016 and, compared to our 2014 baseline, the normalized electricity consump- tion decreased by 21 percent. When we pause and look way back to 2000, when Xanterra started tracking electricity consumption, we can easily see the results of our hard work and continue to focus on reducing electricity consumption [FIGURE 7] .

FIGURE 6 Electricity Consumption Unit: kwh in Millions

80

70

60

50

40

30

20

10

0

2014

2015

2016

ABSOLUTE

NORMALIZED BY REVENUE

32 | OUR SOFTER FOOTPRINT

Living Our Softer Footprint

•• installed kitchen walk-in cooler energy-saving devices •• installed building management and roommanagement systems, and software that provides energy savings while not sacrificing guest comfort •• added vending machine motion and light sensors •• added energy-efficient ice machines •• installed Energy Star-rated kitchen equipment •• replaced PTAC units (packaged terminal air conditioner) with more efficient equipment

The overall decrease in electricity consumption [FIGURE 7] is due to projects such as a significant upgrade of our lighting—initially from incandescent to compact fluorescent and now to LED (light emitting diode) technologies. At the Old Faithful Inn at Yellowstone alone, more than 1,000 lamps were replaced with LED. Some of these lights are on 24/7 to provide guest safety and comfort. Additionally, we have installed better insulation, as well as energy-efficient kitchen equipment, heating and air conditioning units, and even vacuum cleaners. Here are some more projects that have contributed to our electricity reduction successes over the years:

FIGURE 7 Energy Consumption Reduction Unit: Percent Reduction Since 2000

10%

2000 Baseline

0%

-10%

-20%

-30%

2007 Add Grand Canyon Railway, RMNP; Drop Everglades, North Rim, Gideon 2009 Drop Bryce, Scotty’s Castle, Silverado 2010 Add Deer Creek, Kingsmill; Drop Stovepipe Wells, Burr Oak 2011 Drop Hueston Woods, Shawnee 2012 Add 3 Windstar ships (Wind Spirit, Wind Star, Wind Surf) 2013 Add The Grand Hotel, Austin Adventures, VBT 2014 Add Glacier, Star Pride Windstar ship, Country Walkers 2015 Add Star Breeze, Star Legend 2016 Add Holiday Vacations; Lose Petrified Forest

-40%

-50%

-60%

-70%

-80%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

ABSOLUTE

NORMALIZED BY REVENUE

XANTERRA | 33

Living Our Softer Footprint

WATER CONSUMPTION After reestablishing our baseline in 2014, we were not able to continue the success that we had in the previous 10 years regarding water consumption decreases [FIGURE 9] . At many of our operations, we have already installed water-saving devices such as low-flow shower heads and low-flow toilets. Over the last two years, several opera- tions have seen increases in water use due to a combination of new land- scaping, accurate water metering, and several significant water leaks. We antic- ipate our overall water use declining as we continue renovations and improve building management systems.

Our mixed success demonstrates the need to continue to install technol- ogies as they become commercially viable, and to continue to work with our guests, as well as housekeeping, kitchen, and maintenance employees, to meet our goals. Despite the absolute gain in overall water consump- tion, the normalized adjustment indicates that Xanterra was still able to reduce water consumption by 14 percent by 2016 as compared to the 2014 baseline [FIGURE 8] . Water consumption was significantly reduced at several key locations (as compared to the 2014 baseline).

FIGURE 8 Water Consumption Unit: Gallons in Millions

800

700

600

500

400

300

200

100

0

2014

2015

2016

ABSOLUTE

NORMALIZED BY REVENUE

34 | OUR SOFTER FOOTPRINT

Living Our Softer Footprint

water leaks that would have previously gone undetected

The following properties reduced water consumption by more than 15 percent:

•• by improving meter accuracy, which has led to more precise consumption data and baselines •• by identifying faulty

•• Grand Canyon South Rim (decreased by 17 percent) •• Rocky Mountain National Park (decreased by 23 percent) •• (Our former) Kingsmill Resort location (decreased by 21 percent) Tracking water consumption with real-time data and accurate metering data has allowed us to reduce water consumption in the following ways: •• by identifying underground

water delivery systems so improvements can be made

We are very grateful to our employees for helping us achieve our water- saving goals. They are the first line of corrective action in identifying leaks, drips, and other problems that result in water waste.

FIGURE 9 Water Consumption Unit: Percent Reduction Since 2002

4

10%

2002 Baseline

0%

-10%

-20%

-30%

-40%

-50%

-60%

2003 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015 2016

ABSOLUTE

NORMALIZED BY REVENUE

XANTERRA | 35

4 2002 is the first year we started tracking water.

Living Our Softer Footprint

SOLID WASTE Xanterra is a hospitality industry leader in identifying and reducing solid waste. Any and all potential waste is included in our measurement systems. Solid waste [FIGURE 10] gener- ated by our operations is broken into two distinct categories: landfill (what is sent to the landfill) and diversion (what is sent to recycling or composting, or what is diverted from the landfill). Diverted items include traditional ones like plastics, glass, and metals, and also nontraditional items that

get a second-life, such as mattresses and linens, which are donated to homeless shelters; food waste, which is composted; food waste that is given to animal feeding operations; and even used crayons from our dining rooms, which are melted and repurposed for art projects. Due to the unique nature of our locations and operations, Xanterra analyzes data both companywide and by individual operation. Many National Park Service contracts

FIGURE 10 Solid Waste Diversion Unit: Tons

12,000

10,000

45% diversion rate

45%

43%

8,000

6,000

55%

59%

58%

4,000

2,000

0

2014

2015

2016

2014

2015

2016

ALL PROPERTI ES

NATIONAL PARKS ONLY

LANDFILL

DIVERTED

36 | OUR SOFTER FOOTPRINT

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