ACT RESPONSIBLY HERITANCE AHUNGALLA SUSTAINABILITY REPORT 2015 - 2016 TABLE OF CONTENT

A NOTE FROM THE EXECUTIVE GENERAL MANAGER...... 1 OUR VISION / OUR MISSION...... 2 THE TRITON...... 3 SUSTAINABILITY STRATEGY...... 4 THE GREEN PHILOSOPHY...... 5 THE TEAM...... 6 HERITANCE AHUNGALLA - AT A GLANCE...... 7 - 8 OUR STAKEHOLDERS EMPLOYEES HR POLICY...... 9 EMPLOYEES...... 10 CAREER PROGRESSION...... 11 WORK PLACE SATISFACTION...... 12 - 18 WORKPLACESAFETY...... 19 HEALTH AND SAFETY POLICY...... 20 GUESTS GUESTS ATTRACTIONS...... 21-26 DINING EXPERIENCES...... 27-30 ENVIRONMENT ENVIRONMENT POLICY...... 31 BEST PRACTICES...... 33 - 39 ENERGY POLICY...... 40 ENERGY EFFICIENT PRACTICES...... 41 - 42 COMMUNITY THE COMMUNITY...... 43 EMPLOYMENT OPPORTUNITIES...... 44 SOCIAL AND CULTURAL DEVELOPMENT...... 45 - 49 SUPPLIERS PURCHASING POLICY...... 50 ACHIEVEMENTS...... 51 ANIMAL WELFARE POLICY...... 52 SUSTAINABILITY INDICATORS...... 53 A NOTE FROM THE EXECUTIVE GENERAL MANAGER

Innovation and growth remain key drivers to our success. But a long the way, we have also been steadfast in our commitment to people and the planet.

We understand that conservation and community engagement is more than a moral imperative; it also makes good business sense. Smart, socially responsible policies bring us customer preference and loyalty from the next generation travelers and work force.

We continue to evolve our sustainability reporting to best meet our stakeholder’s needs. This report disclose the progress we have made toward our sustainability goals in 2015- 2016. Unless other Wise noted, the reports are based on data from our internal reports/activates and Innovation and growth strategies drive good reflect operational Performance of our company. companies. But to be a great company the hotel Leader in an industry - a company must also have a set of core values that inform every UpulUpul Pei Peirisris decision the company makes. For Heritance Executive General Manager Ahungalla, a subsidiary company of Aitken Herintance Ahungalla Spence Hotel Managements (Pvt) Ltd., our core values have stood the test of time: put people first, pursue excellence, embrace change, act with integrity and serve our world.

1 OUR VISION

To be theAsia’s Best Beach Resort To give our Customer a unique Holiday Experience, while preserving the environment in which we operate in for generations to come.

OUR MISSION

To operate a sustainable business development. To satisfy and retain our guest. To Build our service strength. To handover a financially stable, environmental friendly beach haven to the next generation.

1 2 THE TRITON

The Triton Hotel at Ahungalla is hidden away in a coconut grove beside a long and featureless beachfront. The design partie was a seemingly banal version of a traditional rest house with two long wings of rooms facing the ocean under overhanging hipped roofs.

But, Bawa’s strength lay in his ability to control a project on side and breathe magic into it.

In the final plan he re-arranged the rooms into clusters to create a series of courtyards at different levels and he transformed the entrance sequence into a coup de theatre, offering a vista through a grove of palm trees, past slender columns of the lobby to the light blue surface of the swimming pool and the darker blue of the ocean beyond. “if the world were flat you would be able to see Africa” he wryly observed.

At Heritance Ahungalla, tradition comes alive in five-star elegance, with exotic living spaces and dining experiences. To lobby pool blends with the sea providing an endless relaxing vista. Smooth lines and shades of black, gold and brown characteries the design that graces the interiors. even the landscaped gardens set the pace for a rejuvenating stay. Call it the perfect setting for holidaying, romantic dining or corporate conferencing.

'IF THE WORLD WERE FLAT YOU WOULD BE ABLE TO SEE AFRICA'

2 3 SUSTAINABILITYSUSTAINABILITY STRATEGYSTRATEGY

INTRODUCTION 4. Sustainable Sourcing of Sustainable Produce Heritance Ahungalla was founded on the principle 5. Employee Development & Equal Opportunity that quality service is at the core of how we do business. Our commitment to serve our customers, associates, environment and communities makes GOALS/TARGETS our culture vibrant, our business robust and our As we look ahead, our focus will be on continuing communities strong. With a vision to be the to build loyalty to our parent company, Asia’s best Beach Resort & to give an unique understanding and attracting next generation experience to the customers while preserving the associates and guests, embracing innovation and environment in which we operate in for generations technology, and generating value for our hotel to come. owners. We believe success in achieving these goals will allow us to sustain our presence in the Our heritage, renowned company culture and how market and profitability. we do business both informs and enriches relationships and instills a passion for who we are Our focus on sustainable hotel operations which that our stakeholders can experience every day. provides job opportunities for the locals, local businesses and grows local economic and tourism We are taking every effort to ingrain aspects of infrastructure in this area. responsible tourism into their operations, embracing sustainability precepts as our guiding principle. The MANAGEMENT APPROACH long term vision is to build on the foundation of As we drive our regional growth, we are focused on sustainability therefore, the strategies and responsibly investing in our brand, people and the operations that support their short, medium and systems that support them. We remain true to our long term goals are inextricably bound to principles founding principles and core values: putting people of sustainable business. The sustainability objectives first, pursuing excellence, embracing change, of the Hotel focus on four critical areas: acting with integrity and serving our world.

CORPORATE GOVERNANCE Economic Value Employee Addition Heritance Ahungalla has a long-standing Development to the Nation commitment to transparency and integrity. Our Sustainability Board of Directors oversees management and ObjectivesObjectives Community Environmental through this oversight enhances the long-term value Engagement Management and and Development Stewardship of the company. A formal infrastructure of a range of panel members comprised of executives and associates guides us in making everyday The hotel is having a sustainability policy which decisions that affect our work environment, our provides a sustainability structure and a platform sustainability practices and our business strategy. whereby the principles of sustainability can be embedded into corporate policy. In embedding Committee for Excellence—Driven by a GM-led sustainability within their operations and strategy, committee of Chief Engineer and Engineers alone they have targeted five core areas: with other senior executives and members of committee, this committee monitors the progress of 1. Economic Value Creation our global diversity and inclusion strategy and evaluates the company’s efforts to promote diversity 2. Environmental & Social Value Creation among our workforce, owners, customers and 3. Zero Waste – 7R System suppliers.

3 4 THETHEGREENGREGREENEN PHI PHILOSOPHYLOSOPHY

Heritance Ahungalla represents an unique Green Philosophy that combines responsible tourism with environment friendliness. The hotel is driven by a green model where the leadership in environmental sustainability has enabled them to enhance business performance.

Firstly by growing revenue due to increasing demand amongst travelers who like to offset their carbon footprint and contribute to uplift the natural environment and communities. Secondly, by reducing the costs of business operations through green operations, green buildings, energy reduction and carbon off setting. These measures add value to the environment and to their profitability.

We have launched an Environmental Management System (EMS) which improves productivity and provides a more holistic approach to operations by eliminating waste and optimizing resource usage.

Instead of viewing environmental and social factors as well as employees, the wider community and everything else impacted became a part of the sustainability drive. It was developed by internal environmental experts, based on globally recognized ISO 14001 guidelines.

5 THE TEAM

CHAIRED BY Mr. Upul Peiris - Executive General Manager Mr. Ajith Biyanwila - Chief Engineer Mr. Vimukthi Fernando - Engineer

COMMITTEE Mr. Srinath Athukorala - Front Office Manager Mr. Gamini Wijethunga - Food & Beverage Manager Mr. Janaka Liyanage - Senior Executive Housekeeper Mr. Roshan Pujitha - Sous Chef Mr. Roshitha Jayasinghe - Senior Finance Manager Mr. Wijitha Coomasaru - Security Manager Ms. Nishadee Gunathilake - Senior Human Resources Executive Ms. Manoshi Tennakoon - Secretary

6 HERITANCE AHUNGALLA - AT A GLANCE

Heritance Ahungalla is the perfect luxury base from which to go on a river safari along the , visit the turtle hatchery or take in the culture and history of and ’s coastal villages.

Originally designed by legendary Sri Lankan architect , Heritance Ahungalla is a five-star luxury hotel with 152 rooms, located on 12 acres of beachfront on Sri Lanka’s southwest coast. Heritance Ahungalla offers guests spacious and luxurious accommodation, award- winning cuisine, relaxing spa treatments and a range of outdoor activities in and around the locale.

In 2015 Heritance Ahungalla won the Travelife Gold Award for Hotels & Accommodation. Travelife is an international sustainability certification scheme for hotels and accommodations designed to improve environmental and social impacts and support local people, businesses and culture.

7 A heady mix of style and substance, Heritance Ahungalla is a refreshing beach property that offers the finest hospitality and premium services together with a magical destination. One of Geoffrey Bawa’s earliest masterpieces, the property is a stylish and striking five star beach resort that blends in perfect harmony with the coastal splendour of Ahungalla.

The resort employs scores of people and sources supplies from the neighbouring villages as part of the ongoing investment drive to embrace sustainability. More than 65% of the total hotel staff has been recruited from the local villages, many of them have not had previous hotel experience. Those from the local community, have risen up the ranks quickly, to enable Heritance Ahungalla to secure multiple awards for cuisine, service and environment practice.

Heritance Ahungalla emerged as the Most Outstanding Culinary Team in Sri Lanka after competing against both international and domestic star-class city and resort hotels at the 15th Culinary Art Competition organised by the Chefs Guild of Sri Lanka.

ACCOMMODATION CUISINE FACILITIES

152 rooms with private Heritance Ahungalla has won 2 swimming pools balconies all facing the ocean. numerous awards for its fine Excursions Rooms are equipped with cuisine. The hotel offers several The Diviyan Spa energy-efficient air dining options including the Jute Conference facilities conditioning, free Wi-Fi Restaurant, the Upper Room and and TV with satellite the and local channels. Mustard Coffee Shop.

8 OUR STAKEHOLDERS EMPLOYEES HUMAN RESOURCE POLICY

We at Heritance Ahungalla are committed to comply with the applicable labour legislation in the country, ensure all our employees are provided healthy and safe working conditions along with an environment that is free from all types of discrimination and harassment. An "open door" policy is in place, where our employees are encouraged and permitted to communicate with members of the Management on their views, grievances, etc. whilst encouraging career progression and maximum opportunity for development of skills.

It is a policy of human resource department to monitor and evaluate the fairness in distribution of all remuneration to employees of the organization.

With the aim of uplifting the local community, the hotel maintains a policy on local employment, where preference is given for candidates from locality on available job opportunities. Locality is defined to be within the radius of 35 kilometers from the hotel.

In spurring innovative ideas stemming from youthful vigor, the hotel also encourages students who have completed secondary level education to commence their career with the hotel. We believe that molding this youth will benefit the individual, organization, society and the country as a whole.

UpulUpul PeirisPeiris Executive General Manager Heritance Ahungalla

9 EMPLOYEES Employees are the most important stakeholder in our organization. Our strength is in our staff. Heritace Ahungalla strives to ensure career progression, workplace satisfaction and personal development of our employees.

10 CAREER PROGRESSION

We provide comprehensive training for our staff to enhance their technical knowledge as well as to improve their skills. Our main focus in the career progression of our team with in a reasonable time period. We develop our staff to the next level and we groom them to take more new challenges in their career.

TRAINING HOURS FIRE TRAINING 3.8 FIRST AID HOURS/MONTH PER EMPLOYEE

TRAINING HIGHLIGHTS

FIRE SAFETY FIRST AID LP GAS SAFETY HANDLING MTP HIV AWARENESS

ENVIRONMENT AUDITOR TRAINING ENERGY MANAGEMENT AWARENESS ON SDG'S

11 WORK PLACE SATISFACTION

HIGH FLYER Every month this will be offered to the employees those how have performed well during the month. Each department will be nominating two employees and all the nominees will get collaborative ranking from HOD's/AM & GM. Based on the marks scored two team members will be selected from Face of the House (Front Office/F&B/Housekeeping Departments) and Heart of the House (Engineering/Kitchen/Finance/ HR Departments). At the end of the financial year out of 24 winners, one best team member will be selected as the HighflyerHighflyer of ofthethethe YearYear.

MEDICAL CAMP Ensuring very healthy, strong and efficient work force at workplace, we annually conducts this Medical Camp for our employees and their immediate family members. This will be done in corroboration with Kalubowila Hospital and all employees will get the benefit for a fee medical check-up.

12 SINHALA & TAMIL NEW YEAR CELEBRATION AND FESTIVAL Every year we celebrate our Sinhala & Tamil new year with out employees.

13 STAFF DAY Staff day is the most important day of our employees. They are entitled to bring their families on that day to the hotel. At the entrance management team is welcoming all the staff with their families on the red carpet and take a family photograph. Then they were taken to the function area and

14 SPORTS & RECREATION Annual interdependent sports festival is another one of main activities that we hold for our employees. Apart from that employees are encouraged to participate in Group Sport-O-Rama, Mercantile tournament by representing Aitken Spence PLC etc... Apart from that the Heritance Battle which will be held annually is one of the most important activities at Heritance Ahungalla.

15 CELEBRATING CULTURAL AND RELIGIOUS FESTIVALS

On Vesak Day, Buddhists all over the world commemorate events of significance to Buddhists of all traditions: The birth, enlightenment and the passing away of Gautama Buddha. As Buddhism spread from India it was assimilated into many foreign cultures, and consequently Vesak is celebrated in many different ways all over the world. This year too, at Heritance Ahungalla family get together to organize the traditional customs and rituals to be shown not only to our own citizens but also to our visitors from round the globe.

MONTHLY BIRTHDAY CELEBRATION

Celebrating birthday of our every employee is a tradition at Heritance Ahungalla.

16 CULINARY CHAMPIONSCHAMPIONS

There are two ways of spreading light, that is to be the candle or the mirror that reflects it. You are our candle, you are our mirror that reflects your beam of light in our lives energizing motivating to be the best out of best. There is no doubt that you are the "NO 01" in the Culinary world, and we are most fortunate enough to have you with us based at Heritance Ahungalla. We are proud and honored to work with you, associate you and to take guidance from you. We would say you are none other than a pack of talents. When ever we need you, you were with us not only in culinary field, but each and every area. You wouldn't mind assisting us at Restaurant, Garden, Housekeeping and even Security. We have no words to say how much gratitude we have for you. We are most thankful to your enormous contribution in favor of Heritance Ahungalla at all times.

Being the President of the Chef Guild of Lanka, and being working in a very busy schedule you never forgot us. Your precious time, every minute was treasure to us. Under your guidance and support we, Heritance Ahungalla became No 01 Hotel in the culinary world in Sri Lanka and further more you took us to international level recognition. Our chefs were able to win many more medals at the World Culinary cup as well as Culinary Olympic, and this time our aim is to participate 4 chefs and a mixologist at the Culinary Olympic 2015.

DISTRIBUTING SPE SPECTACLESCTACLES FORFOR STAFFSTAFF

Dr. Lal Thilakeratne a long standing patronage of Heritance Ahungalla has been able to give away spectacles to Hotel staff with the collaboration of his Japanese VVIP guests who are very often visiting Sri Lanka.

17 EEXECUTIVEXECXECUTIVEUTIVE GAT GATHERINGHERING - 7TH 7TH JULYJULY

It is definitely a fortunate to have you in my team and I am most grateful and thankful for all those wonderful support and assistance rendered on "07th July" a memorable and enjoyable one that we could ever have. I believe that no one would forget how much they enjoyed and how much relationship built by attending the 07th July annual program.

18 WORK PLACE SAFETY

Workplace Health and Safety (WHS), often referred to as Occupational Health and Safety (OH&S) involves the assessment and migration of risks that may impact the health, safety or welfare of those in our workplace. We ensure the health and safety of our customers, employees, visitors, contractors, volunteers and suppliers within the premises.

19 HEALTH ANDAND SAFETYSAFETY POLICYPOLICY

Heritance Ahungalla considers the safety, health and wellness of our stakeholders as a priority in the course of our business and remain committed to:

• Comply with the relevant legal and other requirements.

• Operate a functioning Health and Safety Committee that is tasked with the maintenance of Health and Safety Management System of the Hotel.

• Create a safer environment through preventive action, including via training and awareness, preventive maintenance, and housekeeping best practice: thereby sustain a health and safety conscious work culture.

• Conduct regular assessments to identify and assess risks to health and safety of our stakeholders, including through daily inspections of our premises.

• Set health and safety due diligence as a compulsory agenda point in the routine management reviews and take action to eliminate or control risks.

• Dedicate resources for planned implementation of health and safety management in incorporating performance targets in the annual budget and human resources plan.

• Maintain documentation relating to health and safety, including the risks identified, associated action undertaken, proposed action and accident/incident register.

• Build specific capacity amongst our employees, so they may uphold their roles and responsibilities relating to health and safety.

• Ensure emergency preparedness and response through continuous monitoring and implementation.

• Report on health and safety performance including types of injury, injury rates, occupational diseases, lost days and absenteeism.

The hotel will strive to continually improve its performance on health and safety. It plans achieve OHSAS 18001 standard certification and will align its operations in line with this standard. The above commitments are applicable to all stakeholders including our employees, guests, suppliers and service providers, and visitors.

UpulUpul PeirisPeiris Executive General Manager Heritance Ahungalla

20 OUR GUESTS GUESTS Our main focus is our Guests. To make the guest’s stay a memorable one for them with full of joy and happiness is our at most wish. We do various things for them to experience during their stay with us and to make them comfortable. We belive as long as the guests are happy we also can be happy as we are always depend on our guests.

The specialty of Heritance Ahungalla is the human touch in every part of it and it helped us to sustain in this competitive market for about 30 years.

At present Heritance Ahungalla is practicing heap of entertainment and food promotional activities for guest to experience.

TRADITIONALTRADITIONAL WED WEDDINGSDINGS

21 CULTURAL SHOWSHOW

EXCURSION TOU TOURSRS

22 ANIMATION ACTIVITIESACTIVITIES

KIDS CLUBCLUB

23 CELEBRATING NATIONAL & RELIGIOUS EVENTS WITH GUESTS

NATIONALNATIONAL DAYDAY

SINHALA TAMILTAMIL NEWNEW YEA YEARR

DEEPAWALI

24 WESAK CEL CELEBRATIONEBRATION

FLUTIST

25 FISHING

SINHALA & TAMILTAMIL NEWNEW YEARYEAR CELEBRATIONCELEBRATION

26 DINING EXPERIENCES

CHAMPAIGNCHAMPAIGN BRE BREAKFASTAKFAST

27 LIVE COOKINGCOOKING

DINE WITHWITH CHEFSCHEFS

BEACH DIN DINNERSNERS

28 FISH MARKETMARKET

LIVE TRADITIONALTRADITIONAL COO COOKINGKING DINNERDINNER ATATHEN HENAA

THEME NIGHTSNIGHTS

29 KIDS ACTIVITIESACTIVITIES

At the Hotel, our little guests were taking part in their day today activities which adults do for them with great enthusiasm. We were fascinated by their ability and knowledge on how to prepare their own bed, napkin folding, preparing their own breakfast and how to arrange their meal table.

Normal several interactive activities are organized for the kids on this day, some being singing, dancing, painting, fancy dress, and games. But, we, Heritance Ahungalla thought to bring out the real essence of Children’s Day , by letting them to do what isin real life. It is such anprivilege to witness these little angles prepare their own meal table with the help of our Food & Beverage team.

30 ENVIRONMENT ENVIRONMENT POLICYPOLICY

We at Heritance Ahungalla are highly motivated and committed to comply with relevant laws and regulations, to continually improve our environment on a continual basis to protect in our daily activities together with the local community and committed to reduce green house gas emissions.

This policy focuses on reducing greenhouse gas emissions, enhancing energy efficiency, conservation and management of fresh water consumption, conservation of the ecosystem and development, improving land use planning and management, optimizing waste water management, minimizing, re-using and re-cycling waste, ensuring air quality protection and noise control and improving the management of hazardous substances storage and use. Employment of suitable people primarily from local communities and maximizing the purchase of local products and services will be practiced.

The Heritance Ahungalla has implemented an environmental management system (EMS) based on ISO 14001:2004 & Earth Check company standards in order to contribute to sustainable development, with a commitment to best practice in environment and will address significant environmental aspects.

Objectives and targets and environmental programs are established to achieve the environment policy and is communicated to all employees, external stakeholders and the general public.

UpulUpul Pei Peirisris Executive General Manager Heritance Ahungalla

31 The hotel is driven by a greengreen modelmodel where the leadership in environmental sustainability has enabled to enhance business performance. Firstly by growing revenue due to increasing demand amongst travelers who like to offset their carbon footprint and contribute to uplift the natural environment and communities. Secondly, by reducingreducing the the costscosts of of businessbusiness ope operationsrations throughthrough greengreen operations,operations, green buildings, energy reduction and carbon off setting. These measures add value to the environment and to their profitability. As a hotel they adhere to the green philosophy of sustainable development that encompasses the following areas:

� Energy efficiency, conservation and management

� Reduction of freshwater consumption

� Waste water management

� Minimization of waste, reuse and recycling

� Air quality protection and noise control

� Land use planning

� Ecosystem conservation

Another unique concept of this hotel is they give the opportunity to every honeymoon couple & celebrities to plant a tree within the property before their departure as a living memory. With this project they are expecting to contribute in developing a greenery environment surround the hotel property. Some of the special environment related activities the hotel carried out:

32 BBESTESTEST PRACTICESPRACTICES

GREENGREEN P PAVILIONAVIAVILIONLION – WASTEWASTE SSEPARATIONEPAEPARATIONRATION CCENTREENTENTRERE

Heritance Ahungalla is an exemplary organization where waste minimization and waste management practices implemented in a notable stage. They are practicing the “Zero waste system”. “Green Pavilion” is the place which is specifically designed to manage their waste. In here they categorized the waste into various groups such as dry waste, wet waste, hazardous waste, non-hazardous waste, perishing & non-perishing waste etc. Based on the category the waste treatment method vary from one another.

33 BEACH SHR SHRAMADANAAMADANA Every month a beach shramadana champaign will be organized by the Hotel. At certain times beach cleaning is done in collaboration with the community and beach vendors.

BEACH CLEANINGCLEANING WIT WITHH AIT AITKENKEN SPE SPENCENCE TRAVELSTRAVELS

34 TREES PLA PLANTINGNTING PROJECTSPROJECTS

A tree planing project was scheduled to celebrate the Environment day of this year. It took place in few places such as Temple, Rajapaksha Collage and the in the Hotel premises.

35 100 mangrove tress planting project in Madhu River on World Tourism day 2015

36 HENA In-house Hena - vegetables cultivation to support kitchen.

NATURAL COM COMPOSTPOST Use of natural compost manure for plants instead of artificial manure or urea

37 EARTH HOURHOUR Earth Hour celebrations by switching off lights and organizing candle light events.

WATER DAYDAY CEL CELEBRATIONEBRATION An awareness session on 'Importance of Water saving' was conducted at Ambalangoda Darmashoka College on the World Water Day.

FOOD WAS WASTETE SEPARATIONSEPARATION WASTEWASTE SEPARATIONSEPARATION IN INTHETHETHE BEACHBEACH SID SIDEE

38 SUSTAINABILITY MUSEUMMUSEUM

ENVIRONMENT QUIZQUIZ COMPETITIONCOMPETITION

Every year we conducts the interdepartmental environment quiz competition in celebration with the World Environment Day.

39 ENERGY POLICYPOLICY

This energy policy of Heritance Ahungalla Hotel, will serve as the frame work for continually improving energy efficiency within the Hotel thereby demonstrating the commitment to conserve energy as well as reducing green house gas emissions.

This policy requires the hotel to develop its objectives and targets using the guidelines issued periodically and demonstrate effective energy management through management systems based on ISO 50001:2011.

The management team of the Hotel is expected to provide information, resources and all other requirements needed to effectively implement the management system to achieve objectives and targets identified, whilst meeting applicable requirements relating to its energy aspects, whether legally required or agreed by the hotel.

Management ensures purchase of energy efficient products and services to enable the organization to effectively implement this policy.

The effective implementation of this policy will build confidence among all stakeholders of Heritance Ahungalla Hotel on the capability of the hotel to meet escalating energy demands whilst meeting sustainable development.It is communicated to all employees.

UpulUpul Pei Peirisris Executive General Manager Heritance Ahungalla

40 Energy Efficient Practices

As a hotel that energy management concepts, we have given their priority consideration to the implementation of energy efficiency practices. We have certifiedcertified forfor EnergyEnergy Man Managementagement SystemSystem ISO ISO 50001:2011.50001:2011. The importance of this is that Heritance Ahungalla was the FFirstirsirstt R Resortesoesortrt HHoteloteotell toto receivereceive ISOISO 50001:201150001:2011 CCertificationertertificationification inni thethethe WWorld.orlorld.d. Further we have initiated to introduce ISO 50001:2011 as a tool to reduce energy consumption, by recognizing the ever escalating energy cost & the impact on global warming due to the efforts to generate more energy.

We at Heritance Ahungalla as a hotel that we are doing continuous improvement of the energy management system. With the ever increasing energy costs & limitations of supplies due to scarcity specially in Sri Lanka, the steps that we have taken is expected to bring in a significant saving of energy consumption as well as reduce own cost of operations. The improved energy efficiency of the operations drive the hotel towards greater productivity & this will enable us to be competitive while reducing its dependence on the national energy supply.

41 We have already reduced the cost of energy efficiency targets and significantly through our improved best requirements of practices & was awarded with the Bronze greenhouse gas (GHG) Flame in the Large Hotel Sector at the emission reduction National Energy Efficiency Awards 2011. legislations and thus given it leverage to Heritance Ahungalla has a comprehensive emerge as one of Sri energy conservation policy with power cut-off Lanka’s most energy switches, energy efficient lighting (CFL bulbs), efficient hotels. photo active garden lights & solar power hot water systems. Geoffrey Bawa’s visionary Heritance Hotels and Resorts believe architectural design has ensured that no lights passionately in sustainable tourism and have are required anywhere in the hotel during been very active in engaging both guests and daytime. All spaces are designed to receive communities in promoting these ethics. The an adequate amount of natural light. As a chain of resorts have a comprehensive policy result of, something as simple as the that focuses on the conservation of energy allowance for natural lighting, the hotel through the use of renewable energy. makes a substantial saving in the energy Heritance Ahungalla aim to reduce its consumption .Other state of the art methods dependency on fossil fuels annually through are utilized in every aspect of the hotel to the implementation of innovative energy ensure efficient use of energy & resources efficient practices. such as water. “WingWing Ope Operationration” is another important Heritance Ahungalla emerged victorious at concept for energy saving. During the off Sri Lanka National Energy Efficiency Awards seasonal times the hotel staff reserve the 2013, conducted by the Sri Lanka rooms which are located in the similar wing Sustainable Energy Authority for private and so that they can close the energy supply to public sector institutions with the aim of the other side. This reduce the requirement of recognizing their contribution towards an extra chillers. Chillers contribute a lot to the energy efficient Sri Lanka. Heritance Electricity. By maintaining good chiller Ahungalla was awarded the Silver Flame maintenance practices hotel has been able Award, one of the highest accolades reduce their electricity bills is another positive awarded for the conscious commitment made side of Heritance Ahungalla. to enhancing energy efficiency practices within the large scale hotel sector and Another important consideration is taking recognized as Sri Lanka’s First Five Star energy measures. This is taken four times per Beach Resort to award this. day accordingly at 5.30am, 10.30am, 6.30pm & 10.30pm. It identify the energy Heritance Ahungalla is also the first hotel in consumption from the department basis like the world to receive the introduction of this kitchen, laundry, pool boiler etc. By Energy Management System. The hotel was maintaining records they can identify over able to effectively manage energy consumption values and take preventive consumption without compromising guest measures for that. To do all these thing hotel comfort. It has enabled the hotel to meet the receive the support from the top management current and future mandatory energy and head office through the “energy budget”

42 COMMUNITY THE COMMUNITY SocialSocial andand CulturalCultural DevelopmentDevelopment

This aspect is fully integrated into the business concept of Heritance Ahungalla Management. In the long-term, the hotel management views its sustainability, focus to be a key not only to the financial and commercial interest of the company but also to Sri Lanka as a destination. With a growing number of travelers looking towards green destinations in an effort to minimize their own carbon footprints, this hotel is an indication in assistingassisting SriSri LankaLanka totoach achievingieving a greengreen des destinationtination status by protecting the environment. The culture within which it operates the group identifies its capacity to differentiate the product offer and retain a truly Sri Lankan identity.

There are various ways of making a difference and give positive contributions to the local community and area by hotel sustainable practices. Heritance Ahungalla hotel believes in responsibleresponsible tourismtourism and they contribute create responsible travelers during their holiday in Sri Lanka. Community in the area, Ahungalla is less privileged and schools do not have much facilities. Cinnamon cultivation and fishing are the main sources of income. Some are involved in tourism related various ways of income in the beach area. Therefore the poor students were found to be the main target for a futuristic development for the community.

We have launch numbernumber ofofprojectsproprojectsjects forfor the the benefitbenefit ofofcommunitycomcommunitymunity and and enhanceenhance the theirir qualityquality ofoflifeliflifee andand o tot ensureensure cul culturaltural con conservationservation as the hotel believes that only by developing the community it will become practicable to create social & cultural development. This has been enable the hotel to improve their public reputation.

43 EMPLOYMENT OPPORTUNITIES

Recruit higher provision of employees from the host area. And also women employment ratio is fair and considerably high when comparing with other hotels in the area.

TOTAL WORKFORCE 58% EMPLOYEES 330 ARE WITH IN 35 KMS

222|2 | 308

44 EMPOWERING SRILANKA FIRST Aitken Spence PLC has launched ‘EmpoweringEmpowering SriSri LankaLanka FirstFirst,’ an English and IT teaching program for children from its neighbouring communities as its flagship corporate community engagement initiative. The leading diversified conglomerate commenced the pilot phase of the English program benefiting 180 students in Dambulla, Ahungalla and Mawaramandiya in May 2013.

The eight-year old students follow a globally recognised British Council syllabus combined with accompanying teaching material delivered by local teachers who have completed British Council conducted teacher training. Empowering Sri Lanka First is intended to add more focus to our community engagements by concentrating on two key enablers for young students to achieve their true potential, thereby contributing to the sustainable development of the communities in which we operate.

At the begging there were 64 students for the English class and 39 students for the Computer Class in our Ahungalla Training Centre and we are happy to say that 38 students out of 64 have successfully completed their English programme, and 31 students out of 35 students have successfully completed their Computer Course in this August.

45 BUSINESS OPPORTUNITIES

Have been given the opportunity for the local vendors to executive their businesses in the property itself.

46 PROFESSIONALS IN THE AREA

Engaging with local artists to conduct cultural shows in the hotel – hotel management weekly organize masks dancing shows, down south dancing shows etc.

47 AWARENESS PROGRAMMES FOR SCHOOL STUDENTS

WORLDWORLD WATERWATER DAY DAY 20152015 - RAJAPAKSHARAJAPAKSHA VIDYALAYAVIDYALAYA

AWARENESS ONON TABLETABLE ETIQUETTEETIQUETTE ANDAND FLO FLOWERWER ARR ARRANGEMENTSANGEMENTS

WORLD CHILDREN'SCHILDREN'S DAYDAY

POSTERPOSTER & ESSAYESSAY COMPETITIONCOMPETITION AT AT RAJAPAKSHARAJAPAKSHA VIDYALAYAVIDYALAYA An essay and poster competition which was held on behalf of World Tourism Day 2015, was concluded on 01st October 2015 at the Rajapaksha Maha Vidyalaya by distributing the certificates and prizes for the winners of the competition. Heritance Ahungalla management was present at the main event of the school to give away these prizes.

48 DONATIONS

BOOKSBOOKS AND AND STA STATIONARYTIONARY ITEMSITEMS FORFOR ANULAANULA ORPHANAGEORPHANAGE

Heritance Ahungalla is the parent to Anula Girls Orphanage where more than 30 girls are protected and taken care of. Some of these girls are the victims of Tsunami devastation which encountered in 2004 and some were abandoned by their single parents. Not only at World's Children's Day, these lovely girls were taken care around the year, with the help from our distinguished guests around the globe.

DONATION TOTO NEWNEW MOD MODULEULE PRI PRIMARYMARY SCHOOLSCHOOL With the spirit of Avurudhu, and keeping in mind of helping the needy made us to form a "Wish Tree" at Heritance Ahungalla for the first time in the Avurudhu season. We were to help 76 girls and boys in the New Module Primary School in Ahungalla. When inquired from the Teachers of the school we were made to understand that all of the children are need of under garments.

Family Heritance Ahungalla never take a step behind. We were geared to collect money as much as possible to help these children. It was such a pleasure, we were able to collect a good amount of funds within a day, so that we could share the good values of sharing, caring and love to the children who are in need of them in this festive season.

It is pleasing to inform you all that we, Family Heritance Ahungalla were fortunate enough to visit them on 27th April 2015 and help the children of the School in Ahungalla just after they came to school after Avurudhu. We were able to help these children and these young girls and boys are between the age of 7 - 11 years who come from very low earning families.

49 SUPPLIERS PURCHASING POL POLICYICY

We at Heritance Ahungalla are committed to support sustainable purchasing practices by taking conscious decision to consider environmental friendly products. We shall take into consider the effect on environment, our carbon footprint, where the purchases come from and the cultural appropriateness of the product.

We shall seek to purchase equipment, products and material that are recyclable, made of recycled contents and reduce waste. We shall also work to mitigate fuel waste and will create demand for environmentally harvested products, by purchasing local products from local suppliers.

All cleaning products and chemicals that are purchased shall be non phosphate, non toxic and biodegradable.

We shall honor long standing relationships with reliable suppliers who charge fair prices for quality products and those who show their commitment to environmental stewardship through their willingness to deliver products in environmentally safe packaging.

UpulUpul Pei Peirisris Executive General Manager Heritance Ahungalla

50 ACHIEVEMENTSACHIEVEMENTS AWARDS AND CERTIFICATIONS

CertificationCertification AwardingAwarding Aut Authorityhority ISO 50001:2011 Energy Management System Quality International Certification Services

ISO 14001 :2004 Environment Management system Quality International Certification Services

Earth Check – Certified (Silver) Green Globe Earth Check Responsible Travel.com Responsible Hotels of the World Member

51 ANIMAL WELFARE POLICY Animal Welfare Policy of Aitken SpenceHotel Holdings PLC

At Aitken Spence Hotels, we recognise our responsibility towards animal welfare when offering interaction and experience with animals and in utilising tourism infrastructure that may have impacts on tamed animals.

We respect the fundamental standards proposed by the Global Welfare Guidance for Animals in Tourism developed by the Association of British Travel Agents and endorsed by leading animal welfare organisations and are committed to uphold minimum standards of welfare for animals to ensure that all animals encountered and possibly impacted through the activities of Aitken Spence Hotels are treated humanely and with respect, and to protect animals from exploitation, neglect and cruelty.

We aspire to uphold the Five Freedoms which are; • Freedom from hunger and thirst: absence of prolonged hunger or thirst • Freedom from discomfort: suitable living environment that provides opportunities to rest, comfort while resting, ease of movement, • Freedom from pain, injury or disease: Absence of injuries, disease or potential to cause harm, provide preventive and curative healthcare • Freedom to express normal behaviour: Good human – animal relationship, positive emotional state and expression of natural behaviours, living space that encourages natural behaviour • Freedom from fear and distress: Absence of general fear/ distress/ apathy, ability to seek refuge or privacy, absence of procedures that are harmful to the animal

In doing so, are committed to; • Educate our suppliers where necessary, encourage higher standards of welfare, and promote awareness of the importance of animal conservation • Include compliance with this policy in supplier contracts and influence suppliers to meet minimum standards of animals welfare set forth by the Global Welfare Guidance for Animals in Tourism • Educate our guests on the standards of welfare we mean to uphold and encourage good practices as guests to ensure good standards of welfare and protection of animals • Educate suppliers, colleagues, associates and other relevant parties on the Five Freedoms and the minimum standards for animal welfare through routine training and educational programmes • Encourage reporting practices to allow associates, guests and interested parties to inform the hotel of practices that violate this policy • Encourage continual improvement in the practices of our hotels to raise standards of animal welfare

Managing Director Aitken Spence Hotel Holdings PLC

Annexure otot thethe Ani Animalmal Wel Welfarefare Pol Policyicy ofof AitkenAitken SpenceSpence Hot Hotelsels Reference:Global Welfare Guidance for Animalsin Tourism,ABTA,2013 Version 2: September 2015 The Brooke’s Happy Horse Holiday Code PagePage 1 f1 ofo 1 TUITravel PLC Animal Welfare Policy GROUP SUSTAINABILITY DIVISION | AITKEN SPENCE PLC

52 SUSTAINABILITY INDICATORS SUSTAINABILITY INDICATORS

PERFORMANCE FOR THE YEAR ENDED 31ST MARCH

Indicators 2014 - 2015 2015 - 2016

Total Energy Consumption GJ 2926120 2928453

Energy Consumption per Guest Night - MJ 39.93 34.78

GHG Emissions Per Guest Night Kg 78.2 77.9 Water Consumption m^3 87300 84519

Water Consumption Per Guest Night - Liters 1.29 1.04 Waste to Landfill - Per Guest Night - Kg 227607 208505 Lost work days due to work related injuries 54 22

Average Training hours per Employee - Hours 38hrs 44hrs

Community Engagement - No. of Persons impacted (Approxi) 350 390

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