During 2019 Pandox decided upon an earmarked sustainable financing initiatives in the form of a green investment programme that will run from 2020 to 2023. The programme includes 12 of Pandox’s 18 properties in Operator Activities and focuses on energy and water reducing projects as well as technical installations. The investment amounts to MEUR 8 and the average return is expected to be around 20 percent.
The reason for selecting 12 hotels in Operator Activities is that Pandox also controls the operation of these hotels, which facilitates implementation and also ensures that direct savings will benefit Pandox. In Property Management Pandox first needs to sign green leases with its business partners – a process that takes more time.
The objective is to reduce natural gas consumption by around 25 percent and electricity consumption by around 35 percent by 2023. This would provide a combined reduction in carbon emissions of around 20 percent. The lower emissions reduction compared to the consumption reduction is due to the fact that the majority of the properties transitioned to green electricity in 2017 and 2018. Water consumption is to be reduced by around 20 percent during the same period. The investments are also helping to increase guest comfort through better control over heating, ventilation and air conditioning.
Using renewable energy sources is part Pandox’s ambition to offer green properties. Today 80 percent of the Company’s hotels in Operator Activities use renewable energy sources such as green electricity. Pandox is constantly working towards its long-term goal of increasing this percentage whenever possible. Pandox is also installing solar panels on the roofs of hotels in Operator Activities where it is relevant. This is often done in combination with a planned renovation of the property.
Some of these properties are not suitable for solar panels, however, due to the angle of the roof and access to solar radiation. By no later than 2022 more than 30 percent of all hotels in Operator Activities will have solar panels on their roofs
Since the properties are the main source of Pandox’s environmental impact, a pilot study was launched at five properties within Operator Activities in 2019 aimed at obtaining BREEAM certification, which is the established standard for green properties in Europe.
The objective is for all five properties to achieve the Very Good level and for four of these to do so in 2020. In the fourth quarter a decision was taken for 12 hotels in Operator Activities to have BREEAM certification no later than 2023. Within Property Management consensus needs to be reached and cooperation initiated with Pandox’s business partners before the same decision can be made for this business segment.
Pandox does not use water from waterstressed areas. The Company is aiming to reduce its water consumption by installing water-saving equipment and changing employee and guest behaviour around water consumption. Today the majority of the hotels are trying to involve the guests by providing information in the hotel rooms on the hotel’s water consumption reduction goal.
In 2019 Pandox continued the implementation of a measurement system for water consumption at hotels within Operator Activities. Any leaks or deviations from the daily water usage are registered in real time, enabling problems to be quickly identified and remedied.
Six of the hotels operated by Pandox have relevant leakage systems. Once the rollout of the green investment programme is complete in 2023, all hotels will have systems in place to identify leaks – including meters to manage water consumption more precisely. In addition to this, shower heads for lower water consumption will be installed without compromising guest comfort.
Pandox’s target is to reduce the amount of waste generated in the organisation. To this end, a system of waste data reporting was initiated during the year. In 2019 Pandox generated five tonnes of hazardous waste in the form of IT equipment and batteries, and 3,500 tonnes of non-hazardous waste in the form of, for example, domestic waste, paper and plastic.
In the fourth quarter the Company also started to measure how much waste and which types of waste are recycled to create an overall picture as a basis for appropriate action. On average food waste represents 4–12 percent of hotel’s food costs. To reduce food waste, Pandox initiated a pilot project during the year with Radisson Blu Hotel, Dortmund, Crowne Plaza Brussels – Le Palace and The Hotel, Brussels in cooperation with food tech company Winnow. Categorising and registering all food that is thrown away provides better knowledge about overproduction and enables purchase planning to be improved. Measured as a percentage of sales revenue, costs were reduced by just over 40 percent on average due to less waste from costly ingredients and reduced production of low-demand buffet items. Pandox has decided to roll out the project at the remaining hotels within Operator Activities in 2020.
Chemicals are mainly used in hotel cleaning. Pandox is aiming to reduce the amount of harmful chemicals as they not only have a negative impact on the environment, but also on employee health. A reporting system for chemicals was therefore launched during the last quarter of 2019.