InterContinental Hotels Group (IHG) has set itself a target of cutting its energy consumption by 25 per cent – a saving of $200m – by using a new online system designed to identify ways of reducing waste.

The Green Engage software, which is developed by IHG, will be trialled by 650 hotels in late January including Holiday Inn, Crowne Plaza and InterContinental hotels. The system compares the hotels and identifies a series of actions that each hotel can take to reduce the consumption of energy and water by measuring the level of usage, the waste produced and its carbon emissions.

The software will then advise on ways to better manage the hotel's consumption such as recycling programme, the switching to organic cleaning materials and insulation. There will also be a progress report for both internal employees, guests and corporate clients. Andy Cosslett, IHG chief executive, said: "This is an important initiative for IHG, our hotel owners and our guests. Green Engage is a practical tool designed to help improve environmental performance, reduce costs and respond to our guests increasing awareness of this issue.

The system is expected to be rolled out in mid 2009 to all of IHG's 4,000 hotels.