Tomorrow’s competitive advantages could come from well-managed sustainability risks. We work continually and in a structured way to identify, evaluate and manage the our sustainability risks as part of the overall risk management process.

Environment

Although Pandox does not have operations in areas where there is a high risk of flooding or extreme weather, we are affected by climate change. Warmer weather and reduced precipitation could, for example, lead to low groundwater levels in the future, which could in turn result in a water shortage and higher water costs. There is also a risk of increased material and energy costs due to supply shortages resulting in higher prices. Climate change could also lead to changed travel patterns, both in terms of frequency and duration. Although less travel could pose a risk for Pandox, increased local travel could be an opportunity.

We are working to minimise our environmental risks through preventative measures and increased resource efficiency. Within three years of being acquired or reclassified, all of the hotels within business segment Operator Activities are to have Green Key certification – unless they already have another environmental certification by equal standard.

In 2018, we initiated a pilot project for BREEAM certification of selected prop- erties within business segment Property Management. In addition, we have also initiated a dialogue with one of our largest business partners to achieve environmental improvements through green leases.

Employees 

One of Pandox’s main risks is dissatisfied employees. In the hotel industry, the hotel experience for every individual guest is very important. We are therefore dependent on having satisfied and motivated employees that contribute to positive guest experiences. The ability to attract, develop and retain talent is critical for success. We are always working actively to improve working conditions and improvements include minimising the risk of workplace accidents and promoting employee health. Pandox regularly schedules performance and career development reviews to promote employee growth as well as Pandox’s development as an employer.

Corruption

The risk of corruption exists in areas such as sourcing of goods and services. To prevent and mitigate this risk we have clear governing documents such as  Code of Conducts and internal control routines. Anti-corruption is also covered in Pandox’s Group-wide online training. We also have an external and indepen- dent whistleblower system for reporting on-compliance. It is open to both external parties and our employees.

Occupational health and safety 

Related to the employee risks, are the risks relating to hotel safety, such as fire and other accidents involving employees and guests. To ensure hotel safety we comply with relevant laws and applies fire safety measures at all hotels. Emergency preparedness plans and safety policies are in place to prevent and limit accidents and incidents. Fire inspections and fire drills are conducted regularly at all hotel properties. To mitigate the risks, our employees regularly undergo training in workplace safety, including aspects such as first aid.

Human rights

Shortcomings in the supply chain may result in infringement of human rights or violation of other parts of Pandox’s Code of Conduct for Business Partners. In 2019 Pandox will introduce a screening process to ensure that the our suppliers comply with the Code of Conduct for Business Partners. Relevant employees will undergo sustainable supply chain training.

Hotels are places where prostitution and various forms of human trafficking can occur. Relevant employees will receive training in how to prevent and detect any human trafficking and prostitution.

Data security

Pandox understands the importance of protecting the guests’ and employees’ personal data and privacy. To protect our guests’ personal data, we use technical and organisational protective measures, such as firewalls and password-protected systems. To minimise the risk of a data breach, local training is provided at each hotel and through the mandatory group-wide online training.