The Breakers Social Impact Report 2016

OUR FUTURE, OUR LEGACY

S O C I A L I M PA C T R E P O R T FISCAL YEAR 2016

TABLE OF CONTENTS LETTER FROM OUR LEADERSHIP

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THE TEAM 11 DEVELOPING POTENTIAL 12 WELL-BEING 13 REWARDS & RECOGNITION 20 SERVICES & RESOURCES 22 SAFETY 22 COMMUNICATION & ENGAGEMENT 24 THE ENVIRONMENT 29 THE COMMUNITY 39 THE MEDIA 51

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LETTER FROM OUR LEADERSHIP Fiscal Year 2015-2016 Annual Report on

SOCIAL IMPACT

Commitment to the greater good is the fabric of our organizational culture.

Achieving success as a company is not an end unto itself, but the means by which we fulfill our social responsibility. This drive to succeed across our multifaceted businesses is ultimately fueled by our commitment to help our team, our community and our environment to flourish.

Our heritage of public service began in 1896 with our founder, Henry Morrison Flagler, a legacy that continues today under his highly principled heirs who still own The Breakers, the Kenan family. They inspire us to be an organization of conscience and action, and remind us that benevolence and compassion are the ultimate expressions of hospitality.

But more than the duty to aid and serve; it’s the calling to empower. “It is more important to bring people along than to give back,” said one of our Board Members. This compels us to constantly inspire our workplace and invest in our 2,000 team members’ well-being, to help them attain their professional and personal goals. Through ever-expanding practices in sustainability, we strive to protect and strengthen our environment. For those in need, we contribute time, solutions and resources to address the challenges our community faces, and support agencies that share our passion for improving quality of life for all.

As America’s leading independent hotel we continually raise the bar on how we serve — we know that even on our best day, we can always be better, and accordingly, our social impact programs and initiatives must always grow and evolve. Thanks to individual, departmental and company-wide efforts, we’re able to amplify the extraordinary impact of these initiatives, which are summarized in this annual report. .

With great pride, we present this Fiscal Year 2015-16 Annual Report on Social Impact, which captures the heart and soul of The Breakers.

Paul N. Leone

Chief Executive Officer

Denise E. Bober Vice President - Human Resources

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THE TEAM

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“Our culture of care and well-being inspires our team members to live a fulfilled life. In turn, their collaborative success makes us a high-performing organization.�

Denise Bober Vice President - Human Resources The Breakers Palm Beach

THE TEAM The value we place on our 2,000 talented and committed team members is incalculable, yet it continues to appreciate.

Our team is our number one priority and their well-being is paramount to our success. So we continuously invest in ways to bolster their fulfillment and quality of life, to help each individual reach his or her best potential. By putting them in positions to succeed, and nourishing them with rewards, recognition and pride, we create an engaging, collaborative and high achieving workplace. Their character and gracious interactions with every customer and with each other, inspire guest loyalty, meaningful connections and lasting memories.

Ultimately, The Breakers flourishes because of its team members, and our team members flourish because of The Breakers – a reciprocal culture that kindles success on so many levels. Our resort’s founder Henry Morrison Flagler had the insight to create such a workplace over 120 years ago, one that would thrive in an unpredictable, changing world. Today, his heirs and The Breakers’ executive team faithfully sustain his legacy of brilliant benevolence – that the heart and soul of a company drives its long-term prosperity.

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DEVELOPING POTENTIAL HUMAN RESOURCES MANAGEMENT ORIENTATION Designed to prepare team members promoted internally or newly hired for their role as a manager or supervisor, this program educates new managers and supervisors on the resources available to help answer frequently asked questions their team members may have.

589 new managers and supervisors have participated since 2001.

INTERVIEWING & SELECTION WORKSHOP This interactive workshop develops behavioral-based interview skills in instructive and role-playing formats. Participants learn how to build rapport, utilize open-ended versus closed-ended questions, probe for behavioral examples and identify legal versus illegal questions, while discussing the importance of hiring talent over experience.

510 team members have participated since 2002.

SUPERVISORY LEADERSHIP SERIES This series of four modules for managers and supervisors is designed to further develop communication, coaching and team-building skills. Individuals learn how to more effectively direct their teams and maximize workforce productivity.

535 managers and supervisors have participated since 2003.

STAFF RELATIONS & SENSITIVITY TRAINING WORKSHOP Designed to empower management to proactively and efficiently handle staff relations issues, this half-day mandatory workshop focuses on the staff relations process and its legal considerations.

876 managers and supervisors have completed the workshop since 2003.

Upon completion, attendees participate in a web-based refresher program every two years.

855 have attended the refresher program since 2006.

MILLENNIALS IN MOTION Millennials in Motion is a leadership mentoring program that focuses on building direct, in-depth connections between individuals in growth-level management roles and millennials in non-supervisory positions – who would typically not have exposure to each other. This professional development program provides guidance, life coaching interactions and training so that team members have the potential to become a future leader within The Breakers. Topics include Community Service, Personal Financial Planning, Nutrition, Movement, Career Discussion and Environmental Sustainability.

Ten mentors and 16 mentees have participated in the program since 2015.

ADMINISTRATIVE PROFESSIONALS WORKSHOP

THE CATEGORY TEAM

Administrative professionals from across the organization participated in the Indispensable Assistant. This empowering seminar demonstrated how to achieve desired results and win deserved respect. Practical skills were taught to enhance productivity and make ones’ time more valuable. Topics included improving organizational techniques, better managing time and interruptions, handling stress, becoming more assertive and managing multiple projects, deadlines and supervisors.

43 team members participated in 2016.

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QUICK REFERENCE – DEVELOPING POTENTIAL PROGRAM NAME

PROGRAM DATE

PARTICIPANTS

Human Resources Management Orientation

2001

589

Interviewing & Selection Workshop

2002

510

Supervisory Leadership Series

2003

535

Staff Relations & Sensitivity Training Workshop

2003

876

Millennials in Motion

2015

26

Administrative Professionals Productivity Workshop

2016

43

WELL-BEING BREAKTHROUGH TO ENERGY A spin-off of the Corporate Athlete Program that targets line-level team members, Breakthrough to Energy (B2E) specifically focuses on nutrition and fitness – two of the most critical components for restoring and expanding one’s energy capacity.

The Breakers was honored with the American Heart Association’s Innovation Award for the motivational Breakthrough to Energy program.

1,418 team members have participated since 2008.

CREATE MY PLATE Create My Plate is an interactive meal in The Breakaway Café designed to further promote the 12 Nutrition Best Practices taught in the Corporate Athlete and Breakthrough to Energy (B2E) programs. Facilitated by our onsite Health & Wellness Advisor, the program provides a great opportunity for graduates of the Corporate Athlete and B2E to check their progress and review the program’s core nutrition principles.

The Breakers was honored with the American Heart Association’s Innovation Award for the Create My Plate program.

1,058 team members have participated since 2012.

WELLNESS ACTIVITIES To encourage positive changes and offer team members motivation and support to be healthy, this year’s wellness activities featured various, six-week health challenges including Hydration Nation, Veg Out, Healthy Holiday, Get Lean in 2016, and Get Up & Go. Online action plans provided interactive education sessions focusing on topics such as Diabetes Management, Financial Wellness, Quit Smoking, Healthy Eating, and Stress Management. Health coaching with our on-site Health and Wellness Advisor provided a personalized approach to achieve health and wellness goals.

In the 2015-2016 benefit year, 313 team members completed a health challenge. Additionally, 119 online action plans were completed and 1,503 one-on-one health coaching sessions were conducted. Group health coaching included 47 results review sessions with a total of 589 participants.

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Wellness Team WELLNESS TEAM

THE TEAM

The Wellness Team was founded in 2008 with the goal of better understanding the unique health risks, needs and interests of our team member population and educating them on the benefits of healthy living. It is committed to inspiring team members to experience their best and most fulfilled quality of life by providing educational opportunities, raising selfawareness, encouraging positive changes, offering motivation and support so associates will strive to be healthy and create a community of wellness. Members include (left to right): Mindy Cracraft

Health & Wellness Advisor, Sterling Wellness

Terrence Reid

Protective Services Specialist

Kathleen Kuhn

Human Resources Administrative Assistant

Melissa Leonard

Benefits Services Manager

Pat Ciavola*

Director – Team Member Development

Gabrielle Pearlberg

Assistant Director – Food & Beverage

Randy Kerr

Conference Services Manager

Roy Dionne

Manager – Inventory & Cost Control

Ken Thompson

Director – Tennis

Matt White

Receiving & Warehouse Manager

*Committee Chairperson | Not Pictured: Matt White 14

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Health & Wellness Expo

Sit-Stand Stations

Mt. Everest Tower Trek

HEALTH & WELLNESS EXPO Our annual Health and Wellness Expo provides team members with resources in the areas of employee benefits, community service, financial planning, medical, nutrition, fitness, personal interests, safety and sustainability. Designed to inspire and motivate, team members are encouraged to enjoy all the expo has to offer with opportunities to taste healthy food samples, enjoy a chair massage, get an eye vision check, try new fitness equipment and enter give-a-ways and raffles.

Annually, approximately 300 team members attend.

SIT–STAND WORK STATIONS Research shows that prolonged periods of sitting are detrimental to our health and well-being. Sit-stand work stations allow computer monitors to be flexibly positioned while seated or on one’s feet so team members have more opportunity to move throughout the work day.

56 team members are now working at a sit-stand work station since 2012.

MT. EVEREST TOWER TREK The Tower Trek was created to encourage team members to participate in cardiovascular exercise throughout the work day.

Participants register for the program and log their progress as they climb the stairs from the basement to the seventh floor.

Incentive prizes and recognition reward participants at each milestone achieved.

876 team members have participated since 2010, including 50 who have scaled Mt. Everest by completing 260 treks.

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AMERICAN HEART ASSOCIATION FIT-FRIENDLY WORKSITE AWARD For the third consecutive year, The Breakers was recognized as a Platinum Level recipient of the American Heart Association’s Fit-Friendly Worksite Award, acknowledging the priority The Breakers places on physical activity and team member wellness as a catalyst for positive change. The platinum distinction is awarded to companies that fulfill criteria such as offering employees physical activity support, increasing healthy eating options at work, and promoting a wellness culture while demonstrating positive outcomes.

WELCOA WELL WORKPLACE GOLD LEVEL AWARD In 2016, The Breakers received the Gold Level Well Workplace award from the Wellness Council of America (WELCOA) in recognition of quality and excellence in worksite health promotion. This award recognizes organizations that have achieved successful results-oriented wellness programs as defined by WELCOA’s seven benchmarks including carefully crafting an operating plan from collected data to serve as a roadmap to guide company efforts and investments in workplace wellness.

BRIGHT HORIZONS BACK-UP CARE ADVANTAGE PROGRAM This program helps team members effectively manage their work life responsibilities by providing quality back-up care when there is a disruption in their regular child care or adult care arrangements or when an unexpected need arises. Team members can access up to 10 days per year at a nominal cost. Bright Horizons also offers several webinars to assist families in handling life’s challenges with topics including Work Life Balance Tips, Four-Way Wins for Working Parents, and The Caregiving Generation: Tips for Caring for Aging Parents.

The Infant Transition benefit offers an additional five days of care per child during their first year in addition to the standard 10 days of back-up care available.

159 team members are registered for this program and 593 work days have been saved since September 2011.

Honestly, I could not do what I do without this program. I am a single mom, with no family here. It’s an amazing resource at a minimal cost.

Bright Horizons also does a great job selecting their care providers.

Amy Retay, Director - Spa Operations The Breakers Palm Beach

EMPLOYEE ASSISTANCE PROGRAM This free and confidential counseling and concierge service is available to all team members and their families to help address the challenges of everyday living, resulting in a more focused and productive workforce.

This fiscal year, 78 team members received assistance from our EAP provider, Aetna Resources for Living. Additionally, 118 team members contacted our EAP provider, visited their website or attended a workshop.

EAP Managers’ Orientations were facilitated in September 2015 with a total of 33 managers attending.

FITNESS CLASSES

THE TEAM

In 2013, team member fitness classes were introduced, providing a free and convenient workout for all employees. Led by Breakers’ fitness instructors, classes vary from Yoga, Strength Training, Mat Pilates, Power Boot Camp and Cardio Fitness.

This fiscal year, 72 team members participated in at least one fitness class. Of these 72 team members, 29 participated in at least six classes, earning 20 points toward their Wellness Incentive.

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Corporate Athlete CORPORATE ATHLETE The Corporate Athlete Training Program was conceived and co-founded by Dr. Jim Loehr of the Johnson & Johnson Human Performance Institute. The program’s fundamental approach is rooted in the belief that if executives were to successfully perform at high levels over the long haul, they would have to train in the same systematic, multi-level methodology that is practiced by top-tier athletes.

Facilitated in-house, this two-and-a-half day program focuses on increasing capacity in the physical, mental, emotional and spiritual dimensions of our energy. Participants identify their core values, develop a personal mission statement, a 90-day training mission and supporting rituals. Managers then complete a follow-up, one-day refresher program a year later and then a second follow-up online training.

Corporate Athlete has contributed to higher levels of energy, productivity and fulfillment for 415 managers and supervisors since 2005.

Corporate Athlete helps you become more engaged in all areas of your life, and when you see the results, it truly is life changing.

Hetul Patel, Director - Guest Services The Breakers Palm Beach

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WELLNESS INCENTIVE Team members who are eligible for our group health plan are encouraged to participate in the Wellness Incentive, designed to educate participants on knowing and understanding their biometric numbers and setting personal well-being goals. The program includes four steps: Health Risk Assessment, Biometric Health Screening, Health Coaching and Wellness Activity.

A three tier recognition model also motivates team members to engage in wellness activities year round.

In the 2015-2016 benefit year, a total of 664 team members completed steps 1-4 of the Wellness Incentive, earning at least 320 points. Another 204 team members participated in at least one step, resulting in a total of 868 team members engaged in the Wellness Program. In addition, 160 spouses completed steps 1-3 earning the preferred medical premium and another 32 completed at least one step, resulting in a total of 192 spouses engaged in the program.

Wellness Hero | Complete steps 1 – 4 • Received preferred medical premium ($600 savings)

Wellness Champion | Complete steps 1 – 4 plus extra wellness activities or meet six wellness targets • Received preferred medical premium • Note from CEO Paul Leone, and a fruit basket delivered to team member’s home

Ultimate Wellness Warrior | Complete steps 1 – 4 plus extra wellness activities and meet six wellness targets • Received preferred medical premium • Note from CEO Paul Leone, delivered to team member’s home • Dinner certificate for two at a Breakers’ restaurant with successively enhanced gifts each year member reaches this level

37 170

Ultimate Wellness Warrior | 500+ Points

Wellness Champion | 400 - 499 Points

THE TEAM

457

Wellness Hero | 320 - 399 Points

Team Members

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TREKKIN’ THE NATION An increasingly popular wellness program using an approved fitness device, participants track their daily steps and miles walked on their journey from state-to-state. For every 25 miles, team members earn five points toward their wellness incentive.

This fiscal year, 353 team members participated, logging a total of 147,509 miles.

147,509 Miles

QUICK REFERENCE – WELL-BEING PROGRAM NAME

PROGRAM DATE

PARTICIPANTS

Breakthrough to Energy

2008

1,418

Create My Plate

2012

1,058

BENEFIT YR 15-16

472

Health & Wellness Expo

2011

300

Sit-Stand Work Stations

2012

56

Mt. Everest Tower Trek

2010

876

Bright Horizons Back-Up Care Advantage

2011

159

FY 15-16

229

Fitness Classes

2013

72

Corporate Athlete

2005

415

Wellness Incentive

BENEFIT YR 15-16

664

Trekkin’ the Nation

2014

353

Wellness Activities

Employee Assistance Program

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Holiday Gift Giving & Shopping Extravaganza

REWARDS & RECOGNITION QUALITY SERVICE TEAM The Quality Service Team (QST) was established to recognize team members who consistently exemplify excellence in their delivery of service. Each individual receives a thank you gift and a new name tag that indicates the QST honor.

1,265 team members have received this award since 1995. Almost 500 recipients are still employed with The Breakers.

SERVICE PLUS Service Plus is an elevated distinction to recognize team members who consistently exemplify excellence in their delivery of service and exhibit exceptional order seeking skills. Nominees must demonstrate knowledge of company-wide products and services, as well as order seeking behavior including building relationships, anticipating guest needs, using active listening, being prepared with options, and using cross-selling and customer relationship management.

40 team members have received this award since its inception in 2012.

THE TEAM

HOLIDAY GIFT GIVING & SHOPPING EXTRAVAGANZA During this annual holiday event, team members enjoy music and refreshments in the festively decorated Palm Courtyard.

Each employee receives a $75 gift and the team member shopping discount at our retail boutiques is temporarily increased.

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Administrative Professionals Reception

TEAM MEMBER GOLF SCRAMBLE This annual golf event gives team members a chance to enjoy The Breakers Rees Jones® Course and participate in some healthy competition with their fellow co-workers.

The event includes breakfast and an awards ceremony luncheon recognizing the top men’s and mixed foursomes.

Approximately 100 team members participate annually.

SERVICE RECOGNITION CELEBRATION Showering our team with recognition and gratitude, this event celebrates all team members with five or more years of service.

In December 2015, The Breakers recognized 845 team members.

A private recognition ceremony was held prior to the company-wide celebration to honor team members with 20, 25, 30, 35 and 40 years of service. Joined by members of the Executive Group, honorees were individually recognized for their years of service and invited to share memories of The Breakers.

ADMINISTRATIVE PROFESSIONALS RECEPTION This event is an opportunity to express appreciation and gratitude to our talented administrative team, 87 team members were recognized at this event. The “White Party” was the theme for the 2016 event held on the Ocean Lawn and in the newly renovated spa. Attendees enjoyed a delicious breakfast and mini yoga stretch followed by manicures, makeup applications, hair styling, chair massages and more.

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Team Member Golf Scramble

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Service Recognition Celebration

QUICK REFERENCE – REWARDS & RECOGNITION PROGRAM NAME

PROGRAM DATE

PARTICIPANTS

Quality Service Team

1995

1,265

Service Plus

2012

40

Holiday Gift Giving & Shopping Extravaganza

FY 15 - 16

ALL TEAM MEMBERS

Team Member Golf Scramble

FY 15 - 16

104

Service Recognition Celebration

FY 15 - 16

845

Administrative Professionals Reception

FY 15 - 16

87

SERVICE & RESOURCES VOLUNTEER INCOME TAX ASSISTANCE (VITA) In 2016, 48 team members who earned $60,000 or less in annual income received free tax return assistance from the on-site VITA program through the Town of Palm Beach United Way Prosperity Campaign.

Since 2009, VITA has processed 389 free tax returns for team members.

GREEN MARKET Launched in March 2007, the Green Market makes it possible for team members to purchase superior quality, sustainablygrown products during Florida’s growing season (November – May). Featured items include local fruits, vegetables, cheese, honey, eggs, pasta and pastries – all cultivated within Palm Beach County.

The Breakers offers the products at cost and is staffed weekly by volunteers from rotating departments.

Fiscal year 2015-2016 sales totaled $45,595.

QUICK REFERENCE – SERVICES & RESOURCES PROGRAM NAME Volunteer Income Tax Assistance Green Market

PROGRAM DATE

PARTICIPANTS

2009

389

FY 15 - 16

$45,595

SAFETY TRAINING

THE TEAM

Safety Training is one of our company’s most vital, ongoing programs. It incorporates a wide range of areas, from OSHA compliance safety training to general safety knowledge and department-specific practices.

After completing orientation, a department manager meets with new team members to review initial safety awareness items, such as department-specific safety, the OSHA hazard communication program, and general emergency procedures.

When applicable, team members attend training in blood borne pathogens, safe lifting techniques and/or golf cart safety.

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Safety Team SAFETY TEAM The Safety Team meets bi-monthly to review and address safety issues, safety inspections and education. Safety Team participants were identified based on the relevant departments they represent and their shared desire to provide a safe work environment. Members include (left to right):

Ebony Ferguson

Spa Supervisor

Joel Cairns

Landscape Manager

Kristy Pressly*

General Counsel

Ashley Criser

Housekeeping Manager

Larry Welsh

Facilities Manager – Carpentry & Paint Shop

Gayle Trivellato

Assistant Executive Steward & Food Safety Manager

Nebojsa Garic

Pool & Beach Manager

Jessie Dixon

Protective Service Specialist

Rocco Battaglia

Catering Sales Manager

Lauren Criser*

Manager - Safety and Risk

Danika Fox

Guest Relations Manager

*Committee Chairperson | Not Pictured: Larry Welsh, Nebojsa Garic, Jessie Dixon

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RECOGNITION The Breakers has received annual recognition for its safety programs from the Safety Council of Palm Beach County since 2007.

On March 10, 2016, the Safety Team attended the annual Safety Council of the Palm Beaches Award Luncheon to accept the award of Merit for Worker Safety on total number of hours worked for the past year.

SAFETY INCENTIVE INSPECTION PROGRAM In the summer of 2012, the Safety Team launched a safety incentive inspection program. On a rotational basis, members of the Safety Team complete bi-monthly inspections in operational departments. During the on-site inspection, items such as slip and fall prevention, use of personal protective equipment, electrical/chemical safety and general safety are observed and noted for follow up as needed. Team members practicing safe work habits during the inspection are rewarded on the spot with incentive prizes generating excitement for safety awareness.

COMMUNICATION & ENGAGEMENT ALL TEAM MEETINGS Facilitated twice a year by CEO Paul Leone, this company-wide team meeting draws as many as 1,400 associates. During the January 2016 meeting Mark Sanborn, international bestselling author and noted expert on leadership, team building, customer service and change was the featured guest speaker. Mark focused on tenets from his national bestseller The Fred Factor.

EMPLOYEE OPINION SURVEY One of our most critical tools for understanding team member perspectives, the Employee Opinion Survey (EOS), administered by Great Place to Work, enables our organization to understand our team members’ experience of trust, pride, and camaraderie and supports us in creating a great workplace.

Recently administered in May 2016, 95% of eligible team members participated. Results indicate that 92% of team members agree, The Breakers is a Great Place to Work.

MANAGEMENT COMMUNICATION MEETING Approximately 200 managers are invited to attend a communication meeting with CEO Paul Leone, which showcases a guest speaker. In March 2016, Michael Bush, CEO of Great Place to Work, was the featured guest speaker who shared many inspiring messages and helpful tips on how to effectively lead and create a high trust culture.

CHAIRMAN’S ROUNDTABLE Atesh Chandra, Executive Vice President and Chief Administrative Officer, facilitates an intimate conversation between members of the Board of Directors, James G. Kenan III, Chairman, Paul Leone, CEO, and Garrett Kirk, Board Member, with an invited group of team members.

This fiscal year 14 team members participated in this pilot program.

THE TEAM

The opportunity to engage in an interactive conversation with our Chairman of the Board is one example of The Breakers’ culture of servant leadership.

Tyrene Petriello, Assistant Director - Housekeeping The Breakers Palm Beach 24

All Team Meeting

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THE ENVIRON

NMENT

“Our environmental conscience pervades every facet of our company. This goes hand in hand with creating an exceptional resort experience.�

Rick Hawkins Director of Materials Management The Breakers Palm Beach

THE ENVIRONMENT Luxury and a green mindset are not mutually exclusive; in fact, they strengthen each other.

Eco-sensibility became deeply integrated in our resort operations long before green lodging became vogue, earning pioneer status in Florida’s luxury hotel sector a decade ago as Palm Beach County’s first hotel to receive Green Lodging certification. Since then, we continue to raise the bar for ourselves to integrate sustainability into every facet of our business.

Today, our initiatives have moved beyond path breaking, to simply being what our discerning guests and clients expect of a socially responsible enterprise. While some programs are visible to our customers, an array of other initiatives are hidden from view. Regardless, our guests reap the best of The Breakers, among which is the impact of our environmental stewardship, without ever compromising on their expectation for a distinctive, memorable resort experience.

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Green Team GREEN TEAM

ENVIRONMENT

Passionate, positive and equally pragmatic, this collaborative group identifies opportunities and develops methods for improving eco-friendly operations. With the support of management, the Green Team has successfully implemented new procedures and practices in water conservation, waste reduction, and energy efficiency. Members include (left to right): Michael Petillo

Executive Steward

Kris Michie

Erin McClary

Supervisor - Banquets

Rick Hawkins*

Director - Materials Management

Mark Reid Director - Golf & Grounds Maintenance

Christopher Allen

Assistant Manager - Guest Services

Michele Boyet

Digital Marketing Manager

Kristy Pressly

General Counsel

Jessica Fleisher

Director - Revenue Management & Guest Insights

Jennifer Reichert

Recreation Manager

Facilities Manager

Elisabeth Short

Assistant Manager - Activities

Ria Eck

Reservations Sales Manager

Simone Grosseau

Senior Group Billing Coordinator

Robert Higley

Director - Guest Relations

Zev Halikman

Lifeguard - Pool and Beach

Tyrene Petriello

Assistant Director - Housekeeping

*Committee Chairperson | Not Pictured: Ria Eck, Simone Grosseau, Robert Higley, Tyrene Petriello, Zev Halikman

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Courtesy of Clean The World

Clean The World

Electric Car Charging Station

Electric Team Member Shuttle THE BREAKERS ENVIRONMENTAL POLICY

A guideline for team members on proper waste disposal, energy use reduction, water conservation and single use bottled water consumption, the Green Team debuted a new and improved policy in April 2016 to further expand efforts to reduce the need of disposable items and to continue to find ways to eliminate the use of bottled water. Already a robust and comprehensive summary of eco-focused guidelines, the revised policy incorporated into our employee handbook, provides a useful tool to ensure team member adherence to our sustainability initiatives.

GREEN HERO Developed to engage all team members in our company-wide sustainability practices and recognize them for their efforts, the Green Hero program rewards individuals who are caught ‘Green Handed.’ A Green Team member regularly nominates individuals who are elevating our commitment to green initiatives. The winner is recognized on Hotelevision and is awarded a certificate and gift card for their efforts. 45 team members have been honored with the Green Hero designation, most recently, a member of the Food & Beverage Division was recognized for the creation of our recycled cork collection program.

LAUNDRY PROJECT Installed in 2015, this state-of-the-art washing machine dramatically supports The Breakers’ water conservation efforts saving three gallons of water per pound of laundry processed, equaling 12 million gallons of water conserved annually.

The laundry machine also contributed to an improved work environment for our team members with a more comfortable temperature in the work room and eliminated the need to manually load and unload hundreds of pounds of linen, dozens of times each day.

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LOCALECOPIA Founded in 2008 as an independent, non-profit organization by members of The Breakers purchasing team, Localecopia plays ‘matchmaker’ between local farmers, organic food producers and area chefs, restaurateurs and hospitality operators to encourage local sustainable business and food-sourcing. This innovative, grassroots advocacy helps chefs buy locally and assists farmers in finding demand for their products, while fostering collaboration on environmental and sustainability programs. One vehicle for connecting businesses are bi-annual Meet & Greets that are hosted and staffed by The Breakers.

Localecopia works with experts in sustainability, alternative energy research and has established key partnerships with the University of Florida, Lincoln Culinary Institute and local government.

GO BLUE BUSINESS OF THE YEAR Loggerhead Marinelife Center awarded The Breakers its 2015 Go Blue Business of the Year. This award recognizes outstanding contributions toward promoting and encouraging conservation, restoration or preservation of marine life and marine ecosystems through their business practices, products or technology.

We believe that sustainability is one of the greatest issues of our time and we continually set the bar higher to ensure we are protecting and preserving our natural resources.

Paul Leone, Chef Executive Officer The Breakers Palm Beach

LOCAL FOOD USE Florida is an agricultural state but ranks last in state locavore per capita ratings. While the state lags behind, we are leading the way in the Florida hospitality arena with purchasing food from local Florida farms. During our growing season, most of our tomatoes, herbs, squash, corn, peppers, sweet potatoes, bliss potatoes, eggplant and juicing oranges for our restaurants are from local farms.

CLEAN THE WORLD Studies have shown that simple hand washing substantially reduces the spread of infection and disease, which claim the lives of more than five million people each year, the majority being children less than five years old. Clean the World distributes recycled soap products, along with appropriate educational materials, to impoverished countries worldwide and to domestic homeless shelters.

Since beginning our soap recycling program in 2009, we have collected 37,568 pounds of soap and liquid bottle amenities.

This has created 114,413 bars of soap for those in need and recycled 12,087 pounds of plastic bottles protecting the environment. All of our signature guest room toiletries are now made with 100% post-consumer recycled content.

ENVIRONMENT

HEALTHY ME What began as a yearly visit from members of Localecopia to Gove Elementary School in Western Palm Beach County, expanded to Healthy Me, a multi-faceted lecture series presented by members of the Green Team. Healthy Me focuses on educating students from kindergarten to eighth grade on the environment, sustainable living, and the importance of eating real food. Now available in 13 schools, many of which are located in low-income districts, approximately 1,200 Palm Beach County students have benefited from this interactive discussion.

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SUSTAINABILITY PROCEDURES AND PRACTICES Based on The Breakers’ ongoing advancement of its green practices and technological solutions, below is a summary of current resort initiatives:

WATER CONSERVATION INITIATIVE

RESULTS/BENEFITS

Reverse osmosis irrigation installed in 2000, provides an on-site deep well and water facility converting undrinkable water into irrigation

Approximately 95 million gallons of potable water are conserved per year by using the system for our irrigation needs

Incorporated native landscaping throughout resort’s 140 acres, including Sabal Palm, Thatch Palm, Coco–Plum and Sea Grape

Reduces maintenance by planting in natural growth habit; wind, draught and salt tolerant; requires less water, fertilizer and soil amendments

Towel and linen re-use program in guest rooms

Conserves water; achieved a 99% guest compliance rate

ENERGY EFFICIENCY INITIATIVE

RESULTS/BENEFITS

Energy-efficient lighting in public spaces, outdoor areas and guest rooms by retrofitting with LED and high efficiency lights

Reduces power plant greenhouse gas emissions; electrical usage, and heat generation

Newly renovated meeting and office spaces feature motion activated energy efficient lighting

Conserves energy and reduces carbon emissions when spaces are unoccupied

Utilize state-of-the-art energy management system to control air temperatures and lighting

Automated system controls air conditioning, chillers, boilers and lighting to reduce electricity; reduces power plant energy and greenhouse gas emissions

Smart thermostat in guest rooms connects to our energy management system to control room temperature when unoccupied

Conserves energy and reduces carbon emissions

Fleet includes a fully electric team member shuttle. In 2016, a Tesla was added to chauffeur Flagler Club guests.

Produces zero carbon emissions. Team member shuttle features solar roof to assist in recharging batteries

Voluntary EPA Green Power Partner

Encourages organizations to use green power as a way to reduce the environmental impacts associated with conventional electricity use

Purchased 25,000,000 kilowatt-hours of renewable energy credits

Purchase of renewable energy offsets 100% of our electrical use and saves up to 17,239 metric tons of carbon dioxide. This is the equivalent of the energy to power 2,594 homes per year.

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WASTE REDUCTION

ENVIRONMENT

INITIATIVE

RESULTS/BENEFITS

Provide reusable shopping bags in all 538 guest rooms

Reduces the need for single use, disposable shopping bags

Implemented biodegradable plastic bags for retail and housekeeping

Reduces landfill waste

Implemented new software and increased use of tablets, smartphones and apps to electronically file and view documents to reduce reliance on printed paper

Eliminates over 3 million printed pages annually

2,000 team members recycle paper, aluminum, steel, glass, plastic and cardboard throughout resort

Removes 1.5 million pounds of recyclable materials out of the waste stream annually

Meeting rooms equipped with glass, plastic, and paper recycling containers

Reduces landfill waste

Implemented guest room glass, plastic, and paper recycling

Reduces landfill waste

Newspapers delivered by request only; guest room newspapers are recycled and sent to a facility in Georgia to make more newspapers

Collects 3 to 4 tons of newspaper per month, conserves trees used to make paper and reduces landfill waste

Separate filtered water faucets in 414 guest rooms

Reduces the need for single use, plastic bottled water

Provided team members with reusable coffee mug, travel tumbler, and drinking water bottle options

Eliminates the need for single use, disposable items in the workplace

Water filtration system in banquet service area to replace bottled water as a service standard

Eliminates up to 130,000 bottles per year

Implemented a more environmentally friendly notepad for meeting attendees, by request

Notepads made with recycled content are offered at a station rather than each seat

Added Hope Water in News & Gourmet and guest rooms

Bottled from a spring source in Arkansas, all proceeds support the purchase of water filtration system projects in third world countries

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Herb & Vegetable Garden

THE COMMUN

NITY

“Social impact is the ultimate expression of hospitality…compassion and service let loose on the world around us for the greater good.”

Paul Leone Chief Executive Officer The Breakers Palm Beach

THE COMMUNITY From the moment they’re hired, our team members join our company’s extraordinary spirit of community service and civic responsibility. They discover a workplace centered on doing the right thing, but the difference is that we give to empower, not simply to be charitable. Our initiatives, ever growing in impact, are driven by our team who contribute time, energy, talent and resources to benefit those in need. This past fiscal year, they will have volunteered 16,500 hours to build homes for the homeless, provide support to enhance the welfare of individuals and families with start-up resources and advocacy and raised awareness and funds to eradicate illnesses.

Even with all that we accomplish through acts large and small, we reap even greater rewards… gratitude, appreciation and lasting impact. The payback of generosity makes us better people; the cycle enables us to give even more. For the many organizations and philanthropic programs with whom we partner, our efforts are not one-way acts of kindness… each volunteering team member would attest that community service is mutually transformative.

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Community Relations Team COMMUNITY RELATIONS TEAM

COMMUNIT Y

Formed in 2007, the Community Relations Team continues to enhance the potential of what we can do as an organization, in service to the community and those in need. It seeks to provide volunteer programs that serve our multigenerational employee population, as well as the varied needs of the community through individual participation, group volunteer events, and company contributions. Members include (left to right): Parisa Rafiaie*

Manager – Community Outreach

Regina Froot

Executive Assistant – Corporate Office

Suzanne Brenner

Director – Retail Operations

Kathryn Bradley

Manager – Reservations

Raymond Cheung

Operations Research Analyst – Corporate Office

Chris Eason

Assistant Director – Food & Beverage

Robyn Frohling

Coordinator – John Webster Golf Academy

Maren Bronkema

Executive Assistant – Event Services

Amy Gacon

Operations Manager – One North Breakers Row

*Committee Chairperson | Not Pictured: Amy Gacon

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Courtesy of Hope Water

Hope Water

Dreher Park Clean Up

Beach Clean Up

GIVES AMBASSADORS An extension of the Community Relations Team within each department, GIVES Ambassadors are team members appointed by department leadership, who have a passion for community service and act as liaisons for all GIVES opportunities. This network of volunteers is charged with motivating and mobilizing their teams, inspiring each department to get involved in the many community outreach opportunities available.

THE BREAKERS GIVES Launched in 2008, thebreakersgives.com is a resource to communicate community service opportunities and allow team members to record their volunteer hours. Fiscal year 2015-2016, our team members contributed:

20,670 140

Total volunteer hours

Agencies served

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4,991 Total volunteer activities

TOP 10 ORGANIZATIONS OUR TEAM VOLUNTEERED

1563

1331

hours

1239

hours

684

hours

576

hours

576

hours

hours

1063 hours

551

hours

994 hours

515

hours

TOP TEN VOLUNTEERS For the past six years, The Breakers has recognized its top ten volunteers. For fiscal year 2015-2016, these outstanding individuals recorded the highest number of volunteer hours – excluding Community Relations Team members – on thebreakersgives.com.

1. Geoffrey Sagrans, Assistant Director - Materials Management (Fifth Consecutive Year)

2. Thomas Perez III, Technician - One North Breakers Row

3. Christopher Apple, Manager - Security Systems

4. Mark Reid, Director - Golf & Grounds (Fourth Consecutive Year)

5. Laurie Rapaport, Manager - National Sales (Third Consecutive Year)

6. Katherine Bouyea, Manager - Technology Security and Projects (Sixth Consecutive Year)

7. Jaime Hardy, Administrative Assistant - Golf & Grounds (Fourth Consecutive Year)

8. Kelly Leonard, Administrative Assistant - Corporate Office

9. Michele Boyet, Digital Marketing Manager (Second Consecutive Year)

10. Paul Leone, Chief Executive Officer

COMMUNIT Y

The commitment that the Breakers makes to volunteerism in the community is inspiring. We LOVE the Breakers!

Perry Borman, Executive Director Palm Beach County Food Bank

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OUTREACH VOLUNTEER TIME OFF Team members have the opportunity to use work time to volunteer. Not only does this inspire further dedication to the agencies they support, but Volunteer Time Off (VTO) injects team members’ energy and enthusiasm into the local community.

At the start of each fiscal year, full-time team members receive 16 hours of volunteer time to use; part-time team members receive 8 hours.

During the second day of orientation, a half-day is dedicated to new team members engaging in a community service excursion with members of the Executive Group and Community Relations Team. This not only emphasizes the spirit of service at the heart of The Breakers, but also the importance of the VTO program. A total of 11,048 paid volunteer benefit hours were recorded for fiscal year 2015-2016.

UNITED WAY For 27 years, The Breakers has partnered with the Town of Palm Beach United Way, supporting their mission to improve lives by mobilizing the caring power of communities to advance the common good including education, income, and health.

$1.5 million

raised to-date through annual workplace campaigns

$105,345

highest yearly amount collected during The Breakers’ 2015 annual campaign

HABITAT FOR HUMANITY Habitat for Humanity has built more than 800,000 houses worldwide, providing safe, decent, and affordable shelter to more than 6.8 million people globally. Since 2007, The Breakers has been a proud supporter of this mission by sponsoring 16 homes, donating furniture, and partnering with City Mattress to provide bedding for each residence. The construction of each home is made possible by the ‘sweat equity’ volunteer hours of team members, who come together to transform an empty lot into a home for the Habitat partner family. As of August 31, 2016 our team volunteered a total of 3,904 hours toward building these cherished residences.

The Breakers’ sponsored home once again served as the host home for Habitat for Humanity’s Women Build project, a national campaign focused on empowering women to fundraise and build homes for other deserving women in their community. A team of ten women from The Breakers raised over $1,000 for this campaign and volunteered their time at a team ‘build day.’

ROUND IT UP AMERICA Established by leaders in the restaurant industry, Round It Up America strives to make change across America through a simple, yet powerful, charitable giving program. It provides restaurant patrons the opportunity to donate to charity by ‘rounding up’ their check when using a credit card.

The Breakers’ partnered with Round It Up America this fiscal year, once again selecting Palm Beach County Food Bank and Share Our Strength’s – No Kid Hungry as the benefitting charities. Nearly $29,000 was collected in support of not only the agencies noted above, but also the American Red Cross and other national and local restaurant education agencies.

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With over 500 volunteer hours so far this year, it is apparent that no one takes social responsibility more serious than The Breakers.

Marilyn Munoz, Executive Director Homeless Coalition of Palm Beach County

HOPE WATER Since November 2013, The Breakers has supported clean water projects through its Hope Water purchases. 93 water filtration units have been distributed in seven different countries, including two schools located in San Salvador, El Salvador, in need of clean drinking water for their students. In total, The Breakers’ purchases supplied clean drinking water to 17,268 people. Devoted to providing the highest quality natural spring water, Hope Water is bottled for its customers while creating a unique way of supplying life-giving water to those in need, in tandem with every purchase. The pledge: every case of Hope Water sold provides safe, clean drinking water for one person for life. By supplying water filtration systems at no cost to families and communities around the world, Hope Water gives people the opportunity to live a longer, healthier, and better life.

COMMUNITY SERVICE DAY – IN MEMORY OF JACQUE’ MCCANN The annual Community Service Day in Memory of Jacque’ McCann took place on November 12, 2015, as a way to highlight key charitable partners and honor the memory of a long-tenured employee who left a legacy of community service for our team. Agencies who took part in this charity showcase included: Big Dog Ranch Rescue, Southeast Florida Honor Flight, Take Stock in Children and The Lord’s Place. Team members discussed volunteer opportunities with charity representatives while enjoying trivia and a special lunch offering at The Breakaway Café.

BE OUR GUEST At The Breakers, our commitment to social responsibility and to helping people in need is at the heart of everything we do.

The Be Our Guest program honors selfless volunteers in our community who share our passion and who work quietly out of the spotlight to brighten the lives of those less fortunate. Local charitable partners nominate outstanding volunteers to be considered for this award, with the winner honored a well-deserved, all-inclusive two-night stay at The Breakers.

In 2016, there were many deserving nominations, but one stood above the rest - Kathy Novak. A volunteer with Gratitude House, a non-profit substance abuse treatment facility for women in West Palm Beach, Kathy founded a Wednesday morning support group for residents and members of the community in recovery. A retired nurse, Kathy selflessly provides counseling, practical advice, and available community resources to aid in recovery. She also developed a hunger relief program through her church, impacting hundreds of people each week. Kathy discreetly personifies what it means to serve.

COMMUNIT Y

SENIOR MANAGEMENT GROUP – GIVING TUESDAY Observed on the Tuesday following Thanksgiving, this annual event kicks off the giving season in a generous spirit. On Tuesday, December 1, 2015, charities, businesses and communities from around the world came together to give in meaningful ways. The Breakers’ sent two teams into the community: Executive Group members spent the day providing classroom presentations and mentoring students at Roosevelt Middle School via Junior Achievement, while Senior Management Group members sorted holiday toys for the children of Urban Youth Impact. Combined, the group contributed over 154 volunteer hours.

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TOY DRIVE CHALLENGE Our annual ‘Christmas in September’ Toy Drive, benefitting Boys & Girls Club and Urban Youth Impact, took place in September 2015. 2,335 toys were collected for the children of needy families, including the Urban Youth Impact’s Christmas Store - an event providing parents in need the opportunity to shop for free gifts for their children, bringing the joy of the holidays back for the parents.

MAKING AN IMPACT: COMMUNITY WALKS & FUNDRAISING CAMPAIGNS Each year, The Breakers supports a number of charitable giving campaigns, both team and corporate driven. Whether community walks, donation drives or special event support, the goal is to assist in further spreading the mission of each partner agency.

COMMUNITY WALKS:

8 Walks supported 210 Team members participated $17,462.00 Total raised SUMMER OF GIVING:

1,000 School supplies donated for the students and teachers

at Urban Youth Impact

30 Backpacks donated for the students at Urban Youth Impact 935 Sandwiches prepared for the homeless at St. Ann Place BOARD AFFILIATION:

25 Team members serve on advisory boards and committees 1,050 Total hours contributed 45 Agencies supported 45

GIVES Ambassadors PAUL LEONE SERVANT LEADERSHIP DAY Held on March 4, 2016 this annual event celebrates the first ever Servant Leadership Award bestowed to our CEO, Paul Leone, at the 2014 World LEADERS Conference, and to primarily emphasize the importance of giving back as a core component of our company culture. Team members were treated to an ice cream social, served by members of our Executive Group, while they learned about volunteer opportunities with the Community Relations Team, serving opportunities with CROS Ministries and donated canned goods to support local hunger relief efforts.

PALM BEACH COUNTY BED TAX Palm Beach County bed tax collection plays an essential role in our community. Funds generated from this tax, levied on all hotel rooms in Palm Beach County, provide strength to our local economy – creating jobs, restoring our beaches, funding arts and culture and professional sports facilities across the Palm Beaches.

This fiscal year, The Breakers proudly contributed over $5.1 million in bed tax revenue – 11% of the $45 million total bed tax generated and one of our county’s highest contributors.

CORPORATE CONTRIBUTIONS Financial and in-kind charitable contributions have been a mainstay of The Breakers and are only exceeded by the number of philanthropic organizations that seek our support. Our company continues to contribute cash donations and a range of leisure experiences - from hotel stays to dining to golf - to shore up the fundraising events and programs for a wide variety of non-profit groups.

COMMUNIT Y

Over

$2.2 M Cash and in-kind contributions 46

MAKING AN IMPACT: COMMUNITY WALKS & FUNDRAISING CAMPAIGNS Each year, our team members take part in a number of awareness campaigns for charity, supporting agencies meaningful to them. Whether a community walk, donation drive or grass roots fundraising campaign, the goal is to assist in further spreading the mission of each agency.

FEEDING SOUTH FLORIDA One of 200 food banks comprising the Feeding America network, Feeding South Florida is committed to aiding those agencies dedicated to making hunger relief a priority for our community.

This fiscal year, The Breakers’ team recorded a total of 1,678 volunteer hours at Feeding South Florida’s West Palm Beach warehouse, the most of any volunteering agency.

THE ARC OF PALM BEACH COUNTY Since 1958, The Arc of Palm Beach County has provided quality services, education, and advocacy for children and adults with developmental disabilities and their families. Their programs offer a continuum of care that spans the entire life cycle.

This fiscal year, the team recorded a total of 1,135 volunteer hours. Additionally, Kirk Bell, Hotel Manager, was the recipient of the Positive Impact Award, for his role in promoting The Arc’s mission in a variety of ways.

HOMELESS COALITION OF PALM BEACH COUNTY Since 1986, the Homeless Coalition has been the voice for the homeless in Palm Beach County, advocating for their rights and a place they may call home. The Coalition actively supports the Ten-Year Plan to End Homelessness and serves as a catalyst for community collaboration to prevent and end homelessness in our county by raising funds and awareness.

This fiscal year, Breakers’ team members recorded a total of 1,039 volunteer hours with the Homeless Coalition. The company also received the Community Partner of the Year Award at the Homeless Coalition’s annual luncheon. This award Habitat that for Humanity is given to corporations exceed expectations for serving the homeless in Palm Beach County.

THE MEDIA

“We are very proud that our character is our compass – our authentic business standard – and that our reputation reflects it.”

Paul Leone Chief Executive Officer The Breakers Palm Beach

THE MEDIA This index of press coverage highlights a variety of social responsibility initiatives that have generated meaningful impact. Behind these practices are 2,000 team members – from front line to management – who play a vital role in devising these programs and carrying them out successfully with compassion and sincerity. Publicity is merely a by-product of all the good that our staff does as positive change agents, and simply conveys our desire to enrich each other, our environment and the world at large.

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INDEX OF COVERAGE THE ENVIRONMENT | November 10, 2015 The Breakers Is Named 2015 Go Blue Business Of The Year Palm Beach Daily News // Print & Digital

THE COMMUNITY | December 1, 2015 Charities Tout ‘Giving Tuesday’

THE TEAM | November 1, 2015

Palm Beach Post // Print & Digital

In Their Words – Community Members Share Why And How They Give Back

THE ENVIRONMENT | December 14, 2015

Boca Raton Observer // Print

Localecopia Meet And Greet...At The Breakers Palm Beach Daily News // Digital

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

JANUARY

2015

FEBRUARY

2016

THE COMMUNITY | November 12, 2015 Giving From The Heart: When Charity Is In A Company’s DNA South Florida Business Journal // Print & Digital

THE ENVIRONMENT | November 5, 2015 Breakers Is Finalist For Go Blue Conservation Award

THE MEDIA

Palm Beach Daily News // Print & Digital

THE ENVIRONMENT | October 1, 2015 Finalists For ‘Go Blue Awards’ TCPalm.com // Digital 52

THE TEAM | March 6, 2016 Business Notes Palm Beach Daily News // Print & Digital

THE COMMUNITY | April 1, 2016 Palm Beach Civic Awards Luncheon Palm Beach Society // Print THE COMMUNITY | August 30, 2016 Feeding South Florida Gears Up For National Hunger Action Month In September South Florida Citybizlist // Digital

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

THE COMMUNITY | May 1, 2016 Fighting Hunger Pulse // Print

THE TEAM | August 31, 2016 Meet Your Neighbor: Michele Wilde Coastal Star // Print

THE TEAM | April 17, 2016 Unsung Hero – Mother Involves Sons In Giving Back To Local Youth South Florida Sun-Sentinel // Print & Digital 53

One South County Road | Palm Beach, Florida 33480 (561) 655-6611 | thebreakers.com