Pandox Fair Play 2.0 forms the basis for how Pandox integrates sustainability into its operations and how the Company strategically manages and drives operational sustainability work.
Decision-making body on sustainability
The Board of Directors has overall responsibility for the strategic focus of sustainability and climate work, and makes decisions on the Company’s policies. The Board of Directors also makes decisions on significant investments, such as green investment programmes and certification of properties. Feedback is provided to the Board through a six-monthly board report and an annual oral presentation by the SVP, Director of Sustainable Business.
The CEO and the executive management team are responsible for day-to-day operation of the Company and report to the Board of Directors. They are responsible for delivering on targets and strategies and taking decisions on general operational matters, including sustainability. They are also to ensure that systems and processes are in place to monitor and control the Company’s operations and risks, including climate-related risks and opportunities. The SVP, Director of Sustainable Business is a member of the executive management team.
The Sustainability Committee, consisting of representatives from the executive management team and experts, addresses ongoing issues and decisions relating to sustainability work. The efforts in 2022 focused on science-based targets, green financing, and diversity and inclusion. The Sustainability Committee is also active in the green investment programmes and the BREEAM certification process for all properties in Operator Activities.
The SVP, Director of Sustainable Business convenes committee meetings. The SVP, Director of Sustainable Business is responsible for ensuring that sustainability is integrated into Pandox’s day-to-day operations in consultation with individuals responsible for the relevant areas, who are often the heads of the business areas. The Director’s participation in executive management meetings ensures that sustainability is always high up on the agenda and integrated into the Company’s business. The SVP, Director of Sustainable Business also leads the Sustainability Forum attended by experts, property development managers and administrators who run the green investment programmes and BREEAM certification of properties in Operator Activities. In 2022 the forum analysed and evaluated the possibility of setting and submitting science-based targets. A strategic, long-term initiative within diversity and inclusion was also launched. The SVP, Director of Sustainable Business reports sustainability performance to the executive management team and the general managers in the Operator Activities segment on a continual basis, including through the quarterly Green Update reports. Sustainability is also a permanent element of the Company’s strategic kick-off meetings held twice a year for the executive management team, board representatives, head office employees, Property Management representatives, and key decision-makers within Operator Activities.
All Pandox employees are responsible for incorporating sustainability into their work in accordance with the Company’s policies and strategies.
Monitoring and control
In order to perform an accurate status analysis and prioritise the right activities and investments, Pandox continued to collect sustainability data on a monthly basis in 2022 in areas such as water and energy use as well as waste. This data is validated every quarter. At the end of the year 19 of the 20 hotels in the Company’s Operator Activities segment, as well as the majority of the hotels in Property Management, were included in the system. The goal is for all hotels to report into the system. The sustainability data collection system has enabled analysis to be performed to assess and prioritise among various environmental investments. Analysis of the data resulted, among other things, in the creation of the second green investment programme in Operator Activities. The system has also identified the need to review waste procedures on site in Pandox’s own operations to gain control, set goals and reduce waste, and the need to put in place supplementary agreements containing green provisions in Property Management to meet the requirements in both the EU taxonomy and the Paris Agreement. To ensure compliance with the Codes, Pandox has internal control procedures – such as the “four eyes” principle, which requires two signatures on contracts to minimise the risk of errors or corruption. In recruiting contexts the “grandfather” principle is applied, whereby the CEO is always involved in the recruitment of key management roles. To ensure this is managed correctly in accordance with established processes, self-assessments are completed annually and reported on to Pandox’s Audit Committee. These controls help Pandox to maintain high quality in ongoing accounting processes and consequently also in financial reporting.
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.
Pandox’s sustainability strategy is based on integrating sustainability into the business model, catering to stakeholder expectations while laying the foundation for sustainable growth.