Vail Resorts Sustainability Analysis
Baron means to say that socially responsible firms go beyond what the market demands of them and attempts to serve society more broadly. In its annual report, Vail identifies “environmental stewardship” as one of the many dimensions of its business environment, including it along with other aspects of its business such as Terrain Parks, Snow Conditions, and Lodging and Real Estate development.
Under the Environmental Stewardship section of its annual report, Vail defines its duty as a company. “As part of the Company’s long-standing commitment to responsible stewardship of its natural mountain settings, the Company has several initiatives in environmental sustainability which transcend throughout all of the Company’s operations. ” Vail practices sustainability throughout the company by using 100% wind energy to power not only its mountain operations, but also its lodging, retail, and corporate headquarters properties. Additionally, the company headquarters is a LEED-certified building.
But Vail takes its responsibility one step further than simply operating in a ‘green’ manner by partnering with forest foundations to raise money for various conservation projects in the areas Vail operates its resorts.
Opportunity and Risk Vail has a great opportunity to positively influence the industry and the community. During the winter months Vail is the second largest employer in Colorado operating 8 lodging properties and 6 ski resorts. With such vast operations maintaining them can be very impactful to the environment.
For example Vail uses 1,325,000 liters of diesel, 32 metric tons of food supporting 1. 6 million skiers. The Company’s decision to use wind energy will avoid over 211 million pounds of carbon dioxide emissions every year, which is equivalent to taking 18,000 cars off the road or planting over 27,000 acres of trees.
Vail has partnered with Non profit organizations, government agencies and other resorts to pursue idea’s in the best interest of the community. Interestingly enough it is not only the local community but the national community.
The Colorado river basin provides water for not only Colorado but Utah, Arizona, New Mexico, Nevada, California and Mexico. It is the main source of water for Los Angeles, Las Vegas, San Diego and all major cities in AZ, NM, and UT. But there are risks as well as responsibilities that extends thousands of miles away.
These responsibilities come with a cost. The company purchased 152,000 megawatt hours of wind energy each year to power its five mountain resorts, numerous lodging properties and retail outlets, as well as its new corporate headquarters in Broomfield at a cost of 23% more than coal or natural gas.
Due to current economic conditions Vail recently completed a companywide wage reduction as well as layoffs to reduce labor costs, the CEO has forgone his salary for 2009. Revenues have decreased 8. 3% from the previous year.
Although the company remains financially strong it will be enticing to forego sustainability to maintain viability. This delicate balance in this economy presents risks to both Vail resorts and their corporate values. Measureing Value Vail … the value… wow…?? Strategy and Execution Vail does this by…. Measuring Results Vail …. Conclusion Vail ….
