Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Broad-Based Black Economic Empowerment (B-BBEE)
• Brand Identity and Channel Marketing
• Information Technology

Environmental Achievements

• Reduced absolute energy consumption by 34% since 2010 (in South African operations, per room night sold was 2.4% less than last year)
• Installed a grey water treatment plant at Road Lodge Pietermaritzburg for irrigation
• City Lodge Hotel brand certified according to the Green Leaf Eco™ Standard

Social Achievements

• Total number of jobs created increased by 41 to 1907
• Employee turnover at 8.71% per annum (below industry average)
• Various CSI initiatives worth R3.4 million

Governance Achievements

• Review of board and statutory committee charters
• Review of remuneration philosophy and policy
• Maintenance of the group’s regulatory universe and increased employee awareness

Climate Goals & Targets

Environmental Challenges

• Deteriorating macro-economic environment and political climate in South Africa impacting demand
• Below normal level of confidence in the South African hospitality sector
• High levels of crime around hotels
• Changing labour environment
• Limited availability of funding for future projects
• Exposure to emerging markets (political and regulatory uncertainty, operational challenges)
• B-BBEE compliance
• Environmental sustainability
• Implementation of a customized Property Management System (PMS)
• Reliance on IT infrastructure
• Changing needs of the business traveler
• Perception of brand and service offerings
• Fair remuneration philosophy
• Legislative changes and compliance

Mitigation Strategies

• Active management of pricing and capacity, tracking industry trends
• Geographic spread of portfolio, exploring non-South African opportunities
• Participation in industry security and local policing forums, 24-hour on-premises security
• Extensive in-house training for all employees
• Regular engagement with labour unions and service providers, compliance function
• Continuous engagement with banks, consideration of alternative funding sources
• Clear guidelines and expectations, in-depth investigation and feasibility studies
• Extensive evaluation conducted by external specialists, on-site visits
• Regular monitoring and forecasting of BEE targets
• Regular monitoring and decision-making by the environmental sustainability steering committee
• Dedicated internal specialists manage PMS project, engaging external specialists
• Continuous upgrading and maintenance of IT infrastructure, disaster recovery plan
• Dedicated resources assess and implement new projects
• Targeted marketing strategy, regular market research, engaging external consultants
• Extensive evaluation conducted by external specialists, remuneration committee oversight
• Continuous monitoring of legislative changes, dedicated legal and compliance function

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier development and support programs
• Payments within two weeks of invoicing to qualifying suppliers
• 103% of procurement spend with B-BBEE compliant suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather and drought conditions

Transition Risks

• Security of supply of electricity and water, rising costs

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: King III, IIRC Framework, GRI Guidelines

Certifications: Green Leaf Eco™ Standard (City Lodge Hotel brand)

Third-party Assurance: KPMG Inc.

Sustainable Products & Innovation

• Grey water recycling plant
• Energy efficiency program
• Lodgix PMS
• Loconn CRS

Awards & Recognition

• Silver Lion at Cannes Lions for "A room for everyone" campaign
• TripAdvisor Certificates of Excellence (14 hotels)
• Expedia top room night producer (City Lodge Hotel OR Tambo)
• Hotels.com top room night producer (Road Lodge Cape Town Airport)
• Agoda Gold Circle awards (City Lodge Hotel OR Tambo and V&A Waterfront)