In 2018 Pandox intensified its focus on sustainability. Several new strategic initiatives were taken and sustainability became well established as a focus area for the Company’s executive management team and Board. In 2019 Pandox is entering the next phase of its journey towards the goal of commercially integrating sustainability as a natural element in the business model.

We are in a very exciting phase in terms of sustainability. The climate is of particular significance, requiring concerted action in society, and Pandox also wants to take a greater responsibility here. For Pandox this above all means placing greater emphasis on more sustainable resource consumption within the Company’s properties.

In 2018 we appointed a Director of Sustainable Business to advance our position in sustainability and to make it a natural element of the Company’s agenda. During the year we conducted a thorough review of our sustainability work, resulting in an updated sustainability strategy. Pandox is focusing on the long-term integration of sustainability into the business model without compromising the guest experience. The strategy has the full support of the Board and the executive management team, and resources have been allocated in order to implement it. During the year we also updated our materiality analysis to ensure that we are putting our energy into the areas that Pandox’s stakeholders consider to be the most important and where we have the best potential to make a difference. In order to be able to monitor, analyse and validate complex sustainability data in Pandox’s operations, the Company has implemented a new sustainability system. Over time, the system will enable us to evaluate and set priorities among various environmental investments, and to spread knowledge and best practice throughout Pandox’s portfolio.

In 2018 we reached several of our goals, such as a 50 percent increase in the share of renewable energy used at the hotels in the business segment Operator Activities. We have also established new quantitative and qualitative goals for our prioritised focus areas during the year. Moreover, identified ways to link our own goals to the UN Sustainable Development Goals, allowing us to work on sustainable development in a broader context.

In the past the focus was mainly on the business segment Operator Activities; now we are changing our strategy to also include the business segment Property Management in our sustainability work in a more proactive and structured way. Pandox has therefore initiated dilogue with one of our largest business partners to discuss potential new green leases in which we share the return on environmentally profitable investments. We have also taken the strategic decision to certify selected properties according to the BREEAM standard to complement existing certification for hotel operations. This process will be initiated and evaluated in 2019.

Our social responsibility goes hand in hand with Pandox’s values. Most of our employees are fostered by the hotel industry, where engagement in the local community is a given. In 2018 we started a project in cooperation with Enbackaskolan in Tensta through Hand the Ball. The purpose of the project is to encourage upper secondary school students to take part in physical exer- cise and team sports. The project is also inspiring and informing the students about job opportunities in the hotel industry, and providing internships. Our business partner Scandic Hotels Group is working closely with Pandox on this project.

In summary, 2019 was a year of learning and evaluation of our various sustainability initiatives. We are particularly curious to see the outcome of the pilot project to certify the hotel properties. Another important step will be to complete the implementation and monitoring of Pandox’s Code of Conduct for our business partners. Follow us on our journey when we now are gearing up to commercially integrate sustainability into Pandox’s business model!

- Anders Nissen, CEO Pandox AB