Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Employee Development
• Destination Development
• Service Quality
• Economic Impact

Environmental Achievements

• 100% of electricity for Valamar Riviera's properties secured from renewable sources (ZelEn project)
• 0.23% decrease in GHG emissions per overnight (Scope 1 and 2)
• Opened nine EV charging stations, bringing the total to eleven
• Purchased 32 new electric vehicles, 16 electric scooters, and 8 electric carts
• 20 Valamar Riviera hotels received or extended their Travelife Gold Award certificates
• Eight hotels received the Sustainable Hotel Certificate
• Fourteen beaches hold the Blue Flag certification
• Successfully implemented the 'We Love the Adriatic Sea' project for the fourth consecutive year
• Photovoltaic cells at Atrium Hotel in Baška generated 33,658 kWh of electricity
• Pilot project of building a photovoltaic power plant for the Valamar Riviera HQ building in Poreč completed
• Installed 2,520 solar panels (around 5,040 m²)
• Campsite Krk uses treated and recycled wastewater for horticultural irrigation
• 100% of properties had a certified energy management system according to ISO 50001; 100% of premium and upscale facilities within Imperial Rab had certified environmental management systems according to ISO 14001; 75% of keys at hotels and resorts had the Travelife certificate

Social Achievements

• Created 1000 new jobs, 178 of which were permanent contracts
• Increased the number of permanent seasonal contracts by 44% to 893
• Implemented the Valamar +3 program for permanent seasonal workers, guaranteeing employment for at least 9 months a year for three years
• Average gross salary in 2017 was HRK 8,470 (27% above industry average)
• Secured a HRK 4,000 monthly income minimum for all eligible employees
• 56% of seasonal workers returned to work at Valamar in 2017
• Average share of local employees in 2017 peak season was 68%
• Invested HRK 5.7 million in training programs, with an average of 20.95 training hours per employee
• Implemented Valamar House, providing quality accommodation and board for seasonal employees
• Granted 311 scholarships, becoming the largest scholarship provider in Croatian tourism
• Organized summer traineeships for 108 students from local schools and 45 students from a Hungarian secondary school
• Signed the Diversity Charter, committing to workplace diversity and non-discrimination policies

Governance Achievements

• Maintained high principles of good corporate governance and regulatory compliance
• Organized the second Investors Day, attracting nearly 40 funds, banks, and investors
• Valamar Riviera share price increased by 24.6% in 2017
• Complied with the Zagreb Stock Exchange Corporate Governance Code and its own Code of Ethics

Climate Goals & Targets

Environmental Challenges

• Labor market challenges in Croatia (high emigration, low attractiveness of hospitality jobs)
• Seasonality of the tourism industry
• Frequent changes in tax and non-tax regulations
• Risks related to global financial crises, security issues, and political instability
• Environmental risks (sea pollution, water quality reduction, climate change)
• Potential for supply chain disruptions

Mitigation Strategies

• Active policy of attracting and employing staff through cooperation with local communities and educational institutions
• Development of specific programs aimed at various employee groups
• Strategic partnerships to prolong the season and attract new source markets
• Active approach in interest and foreign exchange protection and risk mitigation
• Sound liquidity risk management
• Implementation of energy efficiency projects and environmental protection initiatives
• Investments in destination development and employee training

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 95% Croatian suppliers
• Long-term collaboration and partnerships
• Quality assurance requirements for each product category

Climate-Related Risks & Opportunities

Physical Risks

• Adverse climatic events (drought, rain)
• Sea pollution

Transition Risks

• Changes in environmental regulations

Opportunities

• Development of energy-efficient products and services
• Investments in renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 (core option)

Certifications: ISO 14001, ISO 9001, ISO 50001, HACCP, Travelife Gold Award, Blue Flag, ZelEn

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Valamar's initiatives contribute to these goals through investments in renewable energy, job creation, sustainable tourism practices, and community engagement

Sustainable Products & Innovation

• Poreč Bike Share
• Piazza (innovative camping concept)
• Happy Dog Premium Village
• Modernized central laundry facility

Awards & Recognition

• Share of the Year (6 consecutive times)
• Top Turnover Share Award
• Best Investor Relations Award
• SJAJ Award
• Pride of Croatia Award
• Numerous international and national awards for hotels and campsites

Environmental Metrics

ESG Focus Areas

• Economic sustainability
• Work environment
• Environmental protection
• Market relations
• Community relations
• Responsible diversity and human rights policies
• Sustainable destination development
• Support to the local community
• Care for the environment

Environmental Achievements

• 100 percent electrical energy comes from renewables in all Valamar Riviera properties and in Valamar Obertauern Hotel
• More than 70 percent reduction of direct and indirect Greenhouse gas emissions from the first and second volume in the period from 2015 to 2020
• HRK 9.5 million invested in energy efficiency projects in 2020
• HRK 1.9 million allocated for the purchase of 13 new electric vehicles, 3 electric scooters and 1 electric cart in 2020
• HRK 300 thousand invested in the replacement of classic street lamps with highly efficient LED lights

Social Achievements

• Implemented the "Pause, Restart" program to protect all jobs during the pandemic, providing at least 60% of regular salary (minimum HRK 4,250 net) to furloughed employees.
• Ranked 6th on the list of most desirable employers in Croatia (only tourism company in top 20)
• Launched Valfresco Direkt, an online shopping and delivery service, providing employment and supporting local producers.
• Provided accommodation for Dubrovnik General Hospital medical staff and donated to earthquake relief efforts.
• Donated groceries and necessities to Red Cross and Caritas.

Governance Achievements

• Adhered to principles of proper corporate governance, quality human resource management, transparency in stakeholder relations, and commitment to sustainable development.
• Received Croatia’s CSR Index award as the best large company in Croatia.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic severely impacted the tourism sector, causing unprecedented losses and requiring active crisis management.
• Significant decrease in overnights (66.4%) and revenues (68.6%) due to the pandemic.
• Disruptions in tourism flows and closure of properties due to the pandemic.
• Increased operating costs due to strengthened hygiene and safety standards.

Mitigation Strategies

• Implemented the "Pause, Restart" program to protect jobs and maintain liquidity.
• Reduced operating expenses by 62% (HRK 850 million).
• Halted investments and postponed some to 2021.
• Increased liquidity through operational cost savings, investment savings, and agreements with banks and investors.
• Modified products and services to enhance guest safety (V Health & Safety program, CleanSpace system, online reception).
• Launched Valfresco Direkt to diversify business and support local producers.
• Utilized government grants for job preservation.

Supply Chain Management

Responsible Procurement

• Quality assurance requirements for each product category
• Long-term collaboration and partnership with suppliers
• 77% of food and beverages are Croatian products, most with exclusively local produce.

Climate-Related Risks & Opportunities

Physical Risks

• Long drought periods or long rainy periods
• Sea pollution
• Water quality reduction
• Coast pollution

Reporting Standards

Frameworks Used: GRI Standards (core option)

Certifications: HACCP, ISO 9001, ISO 14001, ISO 50001, ISO 45001, EN 14065, Travelife Gold Award, EU Ecolabel

Sustainable Products & Innovation

• Valfresco Direkt
• V Health & Safety program
• CleanSpace system
• Online reception
• Bed & Brunch

Awards & Recognition

• Croatia’s CSR Index award (best large company)
• 6th most desirable employer in Croatia
• 3rd prize for best investor relations
• 15 Travelers' Choice Awards from TripAdvisor

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions in scopes 1 and 2 by 65% compared to 2015.
• Installed solar panels on 32 properties, producing 6% of total electricity needs.
• Opened Valamar Amicor Green Resort, the first sustainable eco-resort in Croatia.
• Planted almost 3,000 trees.

Social Achievements

• Ranked among the top 10 most desirable employers in Croatia and the best employer in Croatian tourism for five consecutive years.
• Employed 7,500 employees at peak season, with 87% being domestic employees.
• Invested EUR 15 million in salary increases and reward programs.
• Overall guest satisfaction score of 88% based on almost 175,000 surveys.

Governance Achievements

• Established the Digitalization and Sustainability Committee within the Supervisory Board.
• Expanded the Management Board with a new member responsible for sustainable development and digitalization.
• Joined the UN Global Compact (expected in 2023).

Climate Goals & Targets

Environmental Challenges

• Energy and inflation crisis.
• Seasonality of tourism and labor shortages.
• Lack of affordable accommodation for seasonal workers.

Mitigation Strategies

• Investing in employee accommodation (Kuća Valamar).
• Aligning salaries to European standards.
• Investing in renewable energy sources.
• Developing programs for employee well-being and retention.

Supply Chain Management

Supplier Audits: 32% of top 100 suppliers assessed in 2022; aiming for 80% by 2025.

Responsible Procurement

• Prioritizing local suppliers (92% in 2022).
• Using products from recycled materials.
• Reducing packaging.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards 2021, EU Taxonomy Regulation

Certifications: ISO 14001, ISO 50001, ISO 45001, Travelife, EU Ecolabel, Blue Flag

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 15 (Life on land)
• Goal 17 (Partnerships for the goals)

Valamar's initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Valamar Amicor Green Resort

Awards & Recognition

• Financial Times European Climate Leader
• Green Prix
• Numerous awards for service excellence and employer of choice.

Environmental Metrics

ESG Focus Areas

• Climate change
• Biodiversity
• Circular economy
• Employee well-being
• Community investment
• Responsible procurement
• Corporate governance

Environmental Achievements

• Reduced carbon emissions per overnight by 72% compared to the 2015 baseline.
• 100% of electricity from renewable sources (6% from on-site photovoltaic plants).
• Planted more than 9,000 trees.
• Currently cares for more than 80,000 trees.

Social Achievements

• Invested an additional EUR 25 million in employee salaries and benefits.
• Launched a "Krov nad glavom" ("Roof over your head") program for employee housing.
• Achieved a silver rating from EcoVadis for sustainability and ESG practices.
• Rated as the best ESG performer in the region among large listed companies by Bloomberg Adria.

Governance Achievements

• Joined the Science Based Targets initiative.
• Received the "Building Public Trust Award" from PwC Croatia and the Zagreb Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• Seasonality and labor shortage in the tourism sector.
• High rental prices in tourist destinations affecting employee housing.
• Rising operating costs due to inflation.

Mitigation Strategies

• "Krov nad glavom" program to address employee housing.
• Additional EUR 25 million investment in employee salaries and benefits.
• Investments in renewable energy and energy efficiency to mitigate rising energy costs.

Supply Chain Management

Supplier Audits: ESG surveys conducted for suppliers, aiming for 80% responsible suppliers by 2026.

Responsible Procurement

• Supplier Code of Conduct
• Prioritization of local and sustainable products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Droughts
• Floods

Transition Risks

• Changes in regulations
• Rising energy prices

Opportunities

• Investments in renewable energy
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation

Certifications: EcoVadis Silver Medal, ISO 14001, ISO 50001, ISO 45001, Travelife, Blue Flag

Third-party Assurance: PwC Croatia (partially, for EU Taxonomy)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Places hotels
• Amicor Green Resort

Awards & Recognition

• EcoVadis Silver Medal
• Bloomberg Adria Top ESG Rating
• Building Public Trust Award
• Numerous other awards for hotels and campsites