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Sustainability risks

Pandox is of the opinion that well-managed sustainability risks can become tomorrow’s competitive advantages. Pandox works continually to identify, evaluate and manage sustainability risk as part of the Company’s overall risk management process.

RiskDescriptionRisk management
EnvironmentPandox impacts the environment through the use of energy, water, chemicals andmaterials, and generates emissions and waste. A deterioration in the physical environment may negatively impact people in and around our hotels, as well as the properties, which could result in increased costs and a need for investments. 
  • Environmental Policy
  • Collaboration with tenants and business partners on investments for environmental improvements
  • Measures to improve resource efficiency through Pandox’s green investment programmes
  • Environmental certification of hotel operations and properties
Climate changeExtreme weather and floods could damage the properties. Higher temperatures andmore heatwaves could result in water shortages. Scarcity of natural resources couldresult in increased costs for materials and energy. The transformation of society couldresult in reduced international travel but greater regional travel, thereby creating newbusiness opportunities.
  • Environmental Policy
  • Measures to reduce energy and water consumption and to lower emissions of greenhouse gases and volumes of waste
  • Environmental certification of hotel operations and properties
  • Increased use of renewable energy and photovoltaics 
Human rightsFailures in the supply chain and in the operations could result in infringement of
human rights. In the property sector there is a risk of illegal labour and wage dumping;
in the hotel industry, the main risk is of trafficking and prostitution in and around the
hotels.
  • Human Rights Policy
  • Code of Conduct for employees and business partners
  • Risk assessment and supplier monitoring process
  • Training in human rights for employees
  • Whistleblower system and process for following-up on incidents
  • Modern Slavery Act statement
Employees’
confidence
The risk that Pandox may be seen as an unattractive employer and find it difficult to
retain existing staff and to recruit new employees.
Dissatisfied employees could have a negative effect on the Company, hotel guests and
business partners, which is an operational risk.
  • Code of Conduct for employees
  • Healthcare and wellbeing initiatives
  • Performance and career development reviews and annual pay revision
  • Opportunities for specialisation and further training
  • Varied work with great opportunities to have an influence
Health and safetyIn the hotel industry there are health and safety risks due to heavy lifting as well as
slips, trips and falls, a risk of suffering burns and cuts, and risks relating to threats. Fires
are another safety risk. Failures in health and safety procedures could result in injuries
and ill-health among staff, guests and suppliers.
  • Preventive healthcare and wellbeing initiatives
  • Regular fire inspections and fire drills
  • Contingency plans and security policies
  • Training in CPR and installation of defibrillators
Anti-corruptionPandox has zero tolerance for corruption. Nonetheless, there is a risk of corruption in
connection with, for example, sourcing of goods and services, bribery and partiality
when signing agreements, and a risk of internal irregularities.
  • Anti-corruption Policy
  • Code of Conduct for employees and business partners
  • Anti-corruption training
  • External whistleblower service for reporting irregularities
  • Internal control procedures
Data securityThe risk that failures in data security and data processing could breach customers’
privacy. The risk of falling victim to cybercrime is also increasing in society in general.
  • Each year the Board of Directors adopts an IT Policy that covers data security
  • Code of Conduct for employees
  • Technical and organisational protective measures, such as firewalls and password-protected systems
  • Training of employees
  • Annual review of risks and vulnerabilities

Sustainability risks