2018 SUSTAINABILITY REPORT
2018 SUSTAINABILITY REPORT Contents 04 The Olav Thon Group 2018 07 Sustainable value creation Group structure 09 The Olav Thon Foundation 10 Pantelotteri 12 About this report 14 UN Sustainable Development Goals 17 Economic social responsibility 18 Environment and green oper- ations 24 Social responsibility 27 HSE 31 Supply chain 32 General disclosures 33 GRI Index 34 UN Global Compact 37 Appendix
Executive management team
3 Olav Thon Group 2018
OUR SHOPPING CENTRES AND HOTELS
Centr Nort ern Nor 29 17
S e en 11 9 OF THE 10 LARGEST Western Nor T e Group o ns or n es 9 o t e 10 r est s opp n centres n Nor 25 20
Sout ern E stern Nor 34 34 O hich 5 hotels and 3 apartment in Brussels and 1 hotel Ro�erdam
Tot S opp n centres SHOPPING CENTRES 99 COMMERCIAL PROPERTY Hote s Brusse s Ro�er
RESIDENTIAL PROPERTY 80 9
DID YOU KNOW Olav Thon Group Thon Hotel Storo as The Olav Thon Founda�on o ns around 3 2 named the customers’ on te NOK 42 on on s o favourite hotel in Nor ay to research and teaching propert by erg-Hansen in 2018
4 At year end Thon Hotels had 11 870 ote roo s in 80 ote s
Around 500 flats are under O T on construc�on in Group’s profit Oslo and A ershus e ore t n 2018 Olav Thon Group has around 5 500 ten nts in our shopping centres 4 9 in Nor ay BILLION NOK Thon Eiendom o ne and n e 99 s opp n centres in 2018
Net investments At the year end totalled NOK 2 8 cash reserves billion in 2018 amounted to NOK 9 billion
5
Sustainable value creation
It is my great pleasure to present the Olav Thon Group’s sixth Sustainability Report, which has been produced to systemise and promote the Olav Thon Group’s work on sustainable development.
The Olav Thon Group has been a signatory to the UN Global Compact initiative since 2012. This is the world’s largest corporate sustainability initiative and is based on 10 principles covering the areas of human rights, labour practices, the environment and anti-corruption. We signed up to the Global Compact out of a desire to run our business in accordance with these principles wherever possible.
In December 2013, I established the Olav Thon Foundation and transferred ownership of the Olav Thon Group to it. The purpose of the foundation is to exercise stable, long-term ownership of Olav Thon Gruppen AS and its subsidiaries, and to distribute funds to non-profit causes. I hope that ensuring the continued development of the Olav Thon Group, while also making sure that some of the profits generated by the business are used for non-profit purposes, will prove a sustainable approach – for the company, its employees and for society in general.
I hope you find this a good read!
Olav Thon Chairman of the Board/Group CEO
7
The Olav Thon Foundation
The Olav Thon Foundation was established in December 2013. Immediately following its formation, Olav Thon transferred all of the shares in Olav Thon Gruppen AS to the foundation. The foundation’s purpose is to own and operate the Olav Thon Group’s business activities. The foundation can also make donations to non-profit causes.
SOCIAL COMMITMENT SUPPORT FOR NON-PROFIT AWARDS IN 2018 Olav Thon has dedicated his CAUSES In 2018, awards were presented working life to creating value The foundation can support causes in four different categories: an and secure jobs. Both Olav Thon within the areas of mathematics, international research award, personally and the Olav Thon Group science and medicine. This may be national awards for outstanding have increasingly made active provided both by awarding prizes teaching, support for Nordic contributions towards a better to Norwegian and international research collaborations in society. researchers and through direct medicine, and support for national support for research projects. student-related research projects. LONG-TERM OWNERSHIP OF THE Altogether, awards totalling almost OLAV THON GROUP Support may also be provided both NOK 42 million were presented and The job of the foundation’s board for general non-profit causes and shared by the award winners. is, through its management of the for the construction of properties Olav Thon Group, to ensure that for use for non-profit purposes in For more information on the award the Group develops in line with the Norway. winners, please visit the Olav Thon values, vision and ideas on which Foundation website. Olav Thon has based his business NOK 47 million was distributed for career. non-profit causes in 2018. For more information, please visit the Olav The foundation will continue Thon Foundation website. to own all of the shares in Olav Thon Gruppen AS, which will remain domiciled in Norway. The Group’s largest business area will be property management and acquisition. A substantial part of its operations will take place in Norway. The aim is to grow the business. Priority will be given to ensuring that the Group is in an unquestionably strong financial position at all times.
9 Pantelotteri
The bottle deposit lottery is the brainchild of Olav Thon and combines concern for the environment and non-profit work. The idea is that the bottle deposit lottery will encourage more people to recycle bottles, while also creating a permanent source of funding for non- profit organisations. The lottery is operated by Norsk Pantelotteri AS, a company owned by the Norwegian Red Cross and the Olav Thon Group.
2018 was another unbelievable year for the bottle deposit lottery, with 30% record high funds raised for the Norwegian Red Cross. Market share in best shop Pantelotteri celebrated its 10th These funds mean that the Norwegian anniversary in 2018. Since it started Red Cross can now perform even in 2008, the funds from Pantelotteri more humanitarian work across the NOK 50 million have grown from modest to globe and, not least, at home here Contribution to the Norwegian Red incredible. In 2018, deposit rates were in Norway. Half of the profits go to Cross in 2018 also increased from NOK 1 and NOK the local Red Cross branches, and 2.5 to NOK 2 and NOK 3, respectively. for many of them these funds have This has had a positive impact on the become one of their most important funds, and since September we have sources of funding. This means better NOK 250 seen the funds grow by more than preparedness and more visitors, 40%. homework helpers, refugee guides, million and much more. Contribution to the Norwegian Red At the end of 2018, the owners of Cross since 2008 Norsk Pantelotteri decided to increase Many thanks to everyone who has the funds allocated to the cause, contributed to this success, in the after deductions for prizes, from 50% supermarket chains, in the Norwegian to 53%. This meant we were able to Red Cross, in the Olav Thon Group, NOK 415,914 contribute a record amount of NOK at our suppliers, and all of you who Funds raised in best shop 50 million to the Norwegian Red Cross press the Red Cross button when you for 2018. return bottles. kr 49 983 369
kr 37 170 893 Contributions to the Norwegian Red Cross kr 32 091 111
kr 29 891 048 The Norwegian Red Cross’s annual income from Pantelotteri kr 26 241 455 has risen dramatically since it kr 23 800 370 was started and amounted to no less than NOK 50 million in kr 18 523 840 2018. kr 12 423 611 kr 7 784 657 kr 4 914 206 kr 928 543
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
10 NOK 50 million for the Norwegian Red Cross In 2018, Pantelotteri (the bottle deposit lottery) contributed NOK 50 million to the Norwegian Red Cross. By way of comparison, this is almost twice as much as in 2014.
The President of the Norwegian Red branch received no less than NOK weather and conditions before they Cross, Robert Mood, is impressed 1.7 million. go hiking or skiing,” says the head of by how the funds have grown and Ove Engene, head of the Search and the Search and Rescue Corps. very grateful that so many choose to Rescue Corps in Gol and Hemsedal, donate via the lottery. greatly appreciates the funds raised “The money from the deposit via the bottle deposit machines. GOOD LOCAL EFFORT lottery has turned into an important “Maintaining a high level of Shopkeeper Elisabeth Skåne source of funding, especially for preparedness throughout the year of REMA 1000 Gol has had local branches and the Search and costs a lot of money. The funds from Pantelotteri’s automated machines Rescue Corps across Norway,” says Pantelotteri are incredibly valuable in her shop for many years. She Robert Mood, President of the to us and help to ensure that we thinks that it is great that there Norwegian Red Cross. He would like can continue our humanitarian are simple ways of supporting the to thank everyone who presses the work, which saves lives. Among Norwegian Red Cross. Red Cross button. other things, our new, reliable “Our customers seem to appreciate “Seeing people’s generosity increase snowmobiles are important for the the fact that the lottery is a simple every year is quite fantastic. preparedness in our area,” says Ove and exciting way of giving their The deposit money allows us to Engene. support. Often there are many reinforce our preparedness work, The Search and Rescue Corps people who want to contribute but hold more courses and carry out a currently has 19 certified volunteers who don’t really know how,” says wide range of activities nationwide,” and more are in training. Skåne, who appreciates the job the says Mood. “In our area, at certain times of the local branch does in the area. year, the local population increases “I think the Red Cross do a great job PREPAREDNESS COSTS manyfold if you count the visitors. in the local community here and am Buskerud is one of the counties The Search and Rescue Corps is, if impressed by all of the voluntary that receives the most funds from necessary, able to respond to calls in work that is done,” she says. Pantelotteri, and in 2018 the less than half an hour. Luckily, most county’s Norwegian Red Cross people take proper account of the
Accumulated contributions to the Norwegian Red Cross
Totalling the annual funds raised by Pantelotteri gives you the total amount raised since it started in 2008. The total has now surpassed NOK 250 kr243 753 103 million. kr193 769 734 kr156 598 841 kr124 507 730 kr94 682 616 kr68 227 375 kr44 857 574 kr26 017 051 kr13 406 627 kr5 749 842 kr 0 11
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 About this report
The Olav Thon Group is a member of the UN Global Compact and this is the sixth time it has published a sustainability report. The purpose of the report is to describe how the Group strives to operate responsibly and sustainably.
The Olav Thon Group has reported in accordance with the Global Reporting Initiative’s G4 version of their reporting framework since 2013. This report takes account of GRI’s new standards and complies with GRI Standards (Core).
LIMITATIONS AND REPORTING intervals, and for this reason a new The combined stakeholder dialogue PERIOD stakeholder dialogue and a new and materiality analysis was This Sustainability Report is aimed at materiality analysis were conducted conducted by the technical adviser our customers, guests, employees, in 2016/2017. The need to conduct for sustainability work who analysed suppliers, the local communities new ones was first discussed in a aspects and associated indicators, in which we operate, students, meeting with the group directors and also collected priority analyses special interest groups, and public in September 2016, where a from the group directors in authorities. We regard all of you as decision was made to conduct a relation to the various aspects stakeholders who are affected by, combined stakeholder dialogue (including simple explanations and have a considerable influence and materiality analysis with key for each aspect). Interviews were on, our business. personnel in the Group, as well as then conducted with the group the group directors. The Group’s directors in which the aspects were The data presented in this report economic, environmental and reviewed and explained further. is for all the companies in the social impact were examined earlier The technical adviser and group Olav Thon Group, which means to determine our footprint, and directors discussed the aspects business units of which the Olav thereby identify the areas in which and related significant/relevant Thon Foundation indirectly owns we can make a contribution in the indicators (based on the previous more than 50%. Any exceptions form of sustainable development. materiality analysis and a new are explained in the notes on the The previous materiality analysis analysis conducted by the technical individual data. is still viewed as highly relevant in adviser looking at market demand The report is for the calendar year the context of the Sustainability and signals from the executive 2018, and has been produced in Report, although some adjustments management team and from key Norwegian, Swedish, and English. have been made following the new personnel in the organisation). All The Group has an annual reporting stakeholder dialogue. group directors were then given the cycle, meaning that the next report opportunity to prioritise the aspects will be published in the second The stakeholder dialogue was anew. These were compiled in a quarter of 2020. The previous report conducted in two phases: an priority table (average of all of the was published in July 2018. ongoing dialogue with key personnel group directors’ in the Group and interviews with priorities), which in turn provided MATERIALITY ANALYSIS AND the group directors. The ongoing the basis for the technical adviser’s STAKEHOLDER DIALOGUE dialogue with key personnel is report and recommendations. We have previously conducted essential in order to obtain relevant This report has taken the previous a materiality analysis in order information and focus our efforts materiality analysis into account, as to define the content of the in the direction the organisation well as the most recent stakeholder Sustainability Report and ensure deems necessary at any given time. dialogue. that the report is as relevant to our At the same time, it is the group core operations as possible. This was directors who make decisions in FOCUS AREAS done for the first time in 2013 as the area of sustainability, and it In our sixth sustainability report, part of the preparations for the first is important that information on we have decided to emphasise sustainability report. trends is communicated to the four focus areas for the Group: We need to conduct these group directors, so that they can economics; environment and green stakeholder dialogues and make well-informed decisions on operations; health and safety; and materiality analyses at regular the direction of the work. diversity and inclusion.
12 5,8 Econo c Environmental 4,4 Human rights Labor prac�ces/decent work Society 3,2 3,2 Product responsibility 3,0
1,4
13 UN Sustainable Development Goals As part of the Global Compact, the Olav Thon Group wants to help achieve the UN’s Agenda 2030.
The Olav Thon Group believes that it is essential to identify the most relevant goals the Group can help to achieve in order to make a genuine contribution to the UN’s Agenda 2030 and the Sustainable Development Goals. In connection with this, it has completed a project aimed at identifying which of the UN Sustainable Development Goals it would be most relevant for the Olav Thon Group to focus on.
THE PROJECT IDENTIFIED SUSTAINABLE THE OLAV THON GROUP’S The Olav Thon Group’s executive DEVELOPMENT GOALS CONTRIBUTION management team has, together The Olav Thon Group has identified The Olav Thon Group wants to with the Group’s sustainability four Sustainable Development Goals contribute by minimising its adviser, mapped the Group’s that stand out as the most relevant negative impact and increasing value chain based on the GRI goals that the Group can help to its positive impact on the UN and the Global Compact’s guide achieve: Sustainable Development Goals. on identifying UN Sustainable As a major purchaser of goods Development Goals. Based on this • 12 - Responsible consumption and services, a group with many mapping, we analysed which of the and production customers and employees, and as Sustainable Development Goals the • 8 - Decent work and economic a cornerstone company and district Group appears to have the greatest growth developer, the Olav Thon Group impact on, both in a positive and a • 11 - Sustainable cities and can contribute in many links of the negative sense. Next we determined communities chain. We will make sure we buy the where in the value chain this impact • 9 - Industry, innovation and raw materials that are best for the occurs and which targets it would be infrastructure environment and social conditions. most relevant for us to contribute We will reduce our consumption to achieving. The Olav Thon Group In addition to identifying these in production and operations. We has also chosen which of the goals, we have chosen to identify will influence our suppliers and measurable indicators it would seek the targets it would be most make sure that the services we to report progress on. Some of the relevant for us to work on. We offer our customers are sustainable. indicators have been modified to have also chosen to identify which We will streamline our day-to-day better reflect our own operations, indicators we will seek to report on operations. And we will be inclusive although the same principles apply in order to measure the Olav Thon and contribute to a diverse business as for the original indicators. Group’s contribution.* world.
We have developed more detailed documents on how we determined the impact the Olav Thon Group has on the various Sustainable Development Goals and how we will contribute. These documents have been published on www.olavthon. no.
* See the next page for more information.
14 Raw materials Raw Inbound logistics 9.1 9.4 9.1.2 9.4.1 VALUE CHAIN VALUE TARGETS INDICATORS • • • • • • Inbound logistics operations Company 11.3 11.4 11.6 11.7 11.4.1 11.7.1 11.7.2 VALUE CHAIN VALUE TARGETS INDICATORS • • • • • • • • • Raw materials Raw Suppliers operations Company 8.2 8.4 8.5 8.7 8.8 8.2.1 8.4.1 8.4.2 8.5.1 8.8.1 VALUE CHAIN VALUE TARGETS INDICATORS • • • • • • • • • • • • • Raw materials Raw Suppliers Inbound logistics operations Company use Product end of life Product 12.2 12.3 12.5 12.6 12.2.1 12.2.2 12.3.1 12.5.1 12.6.1 VALUE CHAIN VALUE TARGETS INDICATORS • • • • • • • • • • • • • • •
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Economic social responsibility
The Olav Thon Group is a commercial actor and income and profit are key focus areas in day- to-day operations. The economic aspect also entails contributions to society in the form of taxes and duties, employee wages and benefits, and investment in business expansion, which in turn leads to new jobs. Amounts in NOK millions Division 2016 2017 2018 Consumption non-renewable fuels 10 172,0 10 935,0 10 821,9 Consumption renewable fules 5 058,6 5 345,8 5 336,6 Consumption electricity 1 505,0 1 505,0 1 618,3 Consumption district heating 1 278,0 1 107,9 1 072,1 Consumption district cooling 213,7 371,7 516,1 Consumption steam - - 21,5 Sales electricity 2 116,6 2 605,3 2 257,4 Sales district heating INCOME AND PROFITS FINANCIAL CONTRIBUTIONS TO The Olav Thon Group paid out In 2018, the Olav Thon Group SOCIETY NOK 1,618.3 million in wages and achieved operating income of NOK The Group’s financial contributions benefits to employees in 2018. 10,821.9 million and its retained to society are divided into several This impacts the economy by earnings amounted to NOK 2,257.4 factors. Its operating costs are helping to maintain the purchasing million. These retained earnings indirect socioeconomic support power of our workforce and their were invested in expansion and in that they contribute to other contributions to society through business improvements in line with Norwegian companies’ earnings the payment of taxes and duties. the Olav Thon Foundation’s articles from sales of their goods and The Olav Thon Group is also a direct of association. services. The payment of employee contributor to society through wages and benefits represents a the payment of taxes and duties. more direct contribution. In addition, the retained earnings generated by the company are used Out o n s 2018 to expand the business. This is in line with the Olav Thon Foundation’s articles of association and helps Opera�ng create jobs and value for Norwegian expenses society. The Olav Thon Group also Employee wages contributes through investment and benefits in local communities. In some cases, we will make improvements Payment to to public spaces adjacent to our suppliers of capital construction projects. This could entail planting trees, building new pavements, or similar measures. Payments to In 2018, the Olav Thon Group authori�es invested NOK 21.5 million in local communities. Investments in society
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*A source of errors has been discovered in previous calculations of operating costs. This is explained in the appendix (p. 36). Environment and green operations The Olav Thon Group will always strive to take account of environmental challenges within its business and in society in general. The Group focuses on environmental efficiency, and energy and waste management are core concerns.
THON HOTELS Thon Hotels reviewed the criteria The headquarters model will Thon Hotels Eco-Lighthouse again and reallocated them between contribute to simpler and more certifies all of the hotels it owns in headquarters and subsidiaries, rational certification for the Norway. As one of Norway’s largest albeit without any significant hotels, stronger local support, and hotel chains, Thon Hotels has a changes. The new digital solution better information flow. A central responsibility to contribute to a makes the certification process environmental group will present better environment. With more easier and more transparent for Thon Hotels’ overall environmental than 2.6 million guest nights per underlying units, results to the management year, it is important and allows better integration with annually. The result will be that to facilitate the person assigned responsibility our environmental ambitions will eco-friendly for Eco-Lighthouse certification at be strengthened further and more consumption, headquarters. Certification based visible. reduced waste, on the new model was carried out and energy savings. Thon Hotels is also a control member of Grønt Punkt Norge, and requires its Norwegian suppliers to be members of a return scheme for packaging.
REVISED HQ MODEL In 2015, Thon Hotels was certified according to the headquarters model. The model ensures that responsibility for the environmental management system is anchored where it naturally belongs, and clarifies which processes and environmental requirements headquarters is responsible for and which environmental requirements the individual subsidiaries are for the first time in 2017, with great responsible for following up. success. The model was revised in 2016 after Thon Hotels became a part of Eco- Lighthouse’s HQ model in 2015. Eco-Lighthouse has improved its digital interface, and has now completed a comprehensive digital solution for certification and recertification. As part of the transition to the digital solution,
18 Waste
The Olav Thon Group’s goals are to reduce the amount of waste the Group produces and to be able to demonstrate a higher sorting rate.
VOLUME the last few years, Thon Hotels The volume of waste in the Olav has come steadily closer to a 50% Thon Group has sunk for the fourth sorting rate and in 2018 the hotels WASTE VOLUME (TON) 35000 year in a row. The real change in managed to boost their sorting rate 30000 volume from 2017 to 2018 was significantly. In 2018, Thon Hotels 25000 -0.32%, which is equivalent to achieve a sorting rate of 53.9%, 20000 around 94 tonnes of waste. which represents an increase of 4.8 15000 10000 percentage points. 5000 SORTING RATE 0 2015 2016 2017 2018 The average sorting rate in the As is apparent from the historic
NON�HAZARDOUS HAZARDOUS Group is 49.7%, which is below our overview of the sorting rate per stated target of an average sorting division, there have been some rate of 60%. Even though the target big annual variations in the sorting SORTING RATIO has not been achieved, the sorting rates. This may be due to sources 48,6 % 49,7 % 47,7 % 46,0 % rate was 1.1 percentage points of errors, but it has not proved higher in 2018 than in 2017. The possible to identify any. sorting rate has therefore increased steadily since 2016. WASTE MANAGEMENT In collaboration with our new waste There are considerable differences services supplier, Retura, we are between the various divisions/ now able to report on our waste companies. The most significant management methods. This allows 2015 2016 2017 2018 division is the shopping centres, us to see how much of the waste is which account for the largest recycled and the ways in which the Division 2015 2016 2017 2018 volume in the Group (64.4%). Other materials are recovered. The waste Shopping centre 54,5 % 56,0 % 55,5 % 55,2 % Hotel 46,0 % 47,5 % 49,1 % 53,9 % significant divisions are Thon Hotels first has to be sorted into fractions Property 36,0 % 33,0 % 38,1 % 35,4% (11%) and commercial property in order to be recycled. This means Headquarters 54,0 % 48,9 % 43,2 % 53,2 % Sweden 50,2% 44,9% 59,0% 55,5 % (11%). It is particularly important that there is a strong correlation Benelux 35,9 % 12,7 % 40,2 % 24,0 % that these three divisions perform between the sorting rate and the Resthon 22,0 % 23,9 % 5,6 % 17,7 % Unger Fabrikker 12,0 % 10,0 % 7,2 % 3,8 % well with respect to sorting rates. material recovery rate. In 2018, Follo Fjernvarme 43,0 % 50,0 % 84,1 % 29,7 % If these divisions do not perform the Olav Thon Group achieved a Conrad Langaard 17,0 % 30,1 % 37,6 % 37,0 % Totalt 47,7 % 46,0 % 48,6 % 49,7 % well, the target of a sorting rate of material recovery rate of 51%. In 60% will be impossible to achieve. addition to this, 8% of the waste The shopping centres achieved an went to biogas production, while WASTE TREATMENT (2018) average sorting rate of 55.2% in 41% of it went to energy recovery in 2018. This is 0.3 percentage points the form of incineration. 0.1% of the lower than in 2017, although they waste ended up in landfill sites. are still stable at around 55%. Commercial properties decreased The majority of the waste that goes by 2.7 percentage points from the to energy recovery is residual waste. 2017 level to a sorting rate of 35.4%. Therefore, a good sorting rate The Olav Thon Group’s commercial means a higher material recovery properties are largely older city rate, which is more sustainable than blocks in the centre of Oslo will little energy recovery. MATERIAL RECYCLING ENERGY RECOVERY space for waste management. This BIOGAS LANDFILL makes establishing and maintaining a high sorting rate challenging. In
19
* The base data and caveats concerning waste statistics are explained in the appendix (p. 36). SORTING RATIO PER DIVISION 100
80
60 2015 2016 40 2017 20 2018
0
Property Resthon Sweden Headquarter Hotels Benelux Hotels Norway Unger Fabrikker Conrad LangaardFollo Fjernvarme Shopping centers
MEASURES IN 2018 after the food has been cooked. of the food we throw away must be - Further increased focus on The most important thing food weighed, which enables us to see monitoring, customer service and suppliers can do is reduce waste whether we need to change the way information. in production, but if surplus food we procure and - Monthly reports on costs and is unavoidable, Too Good To Go is produce food in our hotels. Thon sorting rate to be sent to each a means of preventing this surplus Hotel chefs are encouraged to be location. food going to waste. This is great for creative in terms of food reuse and - Focus on optimisation and review the environment and for finances, we encourage guests to help reduce of status report at the local level. both ours and the finances of those the amount of food waste on their - Information programme for waste who use Too Good To Go. plates. And Too Good To Go is used management will be introduced at to sell surplus food. more shopping centres and hotels. Thon Hotels sold 9,853 portions - Optimisation of handling of food of surplus food in 2018, saving the WAISTER waste at hotels. environment 19.6 tonnes of CO2. Waister, which is a drying machine This is equivalent to a car driving for food waste, underwent pilot TOO GOOD TO GO 77,123 km, or charging 2,499,241 testing in 2016. The machine was Thon Hotels entered into an mobile phones. returned to the factory in Italy for agreement with Too Good To calibration and further testing in Go for a few hotels in 2016. The KUTTMATSVINN 2020 2017. When it arrived back at Thon number of participating hotels rose In 2017, Thon Hotels signed a Hotel Arena in the autumn of 2017 in 2017, while in 2018 there was contract to participate in the it was as a full production model. It an enormous increase in hotels KuttMatSvinn 2020 (cut food waste) should be capable of reducing the offering food via Too Good To Go. project. One third of all foods volume of food waste by 75-80%, The number of hotels associated produced are thrown away. If food which benefits the environment with Too Good To Go grew by 300% waste were a country, it would be through less logistics and waste in 2018 (10 in 2017 compared to 30 the world’s third largest country in handling. In addition to this, the in 2018). terms of greenhouse gas emissions. downstream solutions are much KuttMatSvinn was started as a better for this dry waste than for Too Good To Go is a solution measure aimed at contributing to normal food waste. The end-product designed to reduce food waste. It the UN Sustainable Development is significantly better for incineration helps restaurants and other food Goal of cutting food waste by 50% than wet waste, and the biogas outlets sell their surplus food. In by 2030. potential is around three times as brief, the participating hotels are The aim of the project is to cut food high as for wet food waste. registered in Too Good To Go’s app, waste in the catering industry by which enables users to order surplus 20% by 2020. Several other large In 2018, it was decided that Thon food. The food can usually be picked hotel chains are participating in the Hotels would purchase three new up just after the restaurant closes, project, along with many individual machines from Waister, which are and entails minimal extra work for hotels and restaurants. Thon Hotels expected to become operational in our employees. The main aim of this will contribute by taking various 2019. measure is to reduce food waste steps to reduce our food waste. All
20 Energy
Energy is one of the Olav Thon Group’s two main focus areas within environment and green operations. The focus is on energy management and cutting energy consumption through better systems and more frequent reporting.
CONSUMPTION 2018 KWH ENERGY CONSUMPTION This is the second time the Olav 300000000 Thon Group’s energy expenditure has been reported. The reporting 250000000 categories have been taken from the 200000000 GRI reporting framework. 150000000 Reporting these figures for a group with numerous subsidiaries and 100000000 different types of operations is 50000000 complicated. The figures have been taken from our energy 0 portal, Energinet, where some of Non-rene able Rene able Electricity District District the figures are checked against sources sources hea�ng cooling purchases and the accounts.* District cooling increased by 16.5%, thus produces more kWh thermal The Olav Thon Group’s total energy which was probably attributable to energy than is consumed powering expenditure decreased by 10.3% the abnormally warm summer in the heat pumps. Nor is it surprising from 2017 to 2018. Electricity 2018. that the second largest consumption consumption decreased by 16.3% category is district heating. Many of in 2018, most likely due to the fact Non-renewable fuels increased the Olav Thon Group’s properties that the consumption forecast by by 21% (928,680 kWh) from are connected to district heating, our new electricity suppliers was too 2017 to 2018. This is due to and use this to varying degrees for high. District heating consumption a misunderstanding in earlier heating. increased by 19.5% in 2018, which reporting, which resulted in the is assumed to be linked to the underreporting of non-renewable reduction in oil consumption and fuels. Adjusted for the source of new district heating connections. errors in previous reporting, the consumption of non-renewable PRODUCTION 2018 (KWH) fuels actually fell by 5.18%. Most the consumption of non-renewable 15 000 000 fuels in 2018 involved gas, which is used for peak loads in Follow 12 000 000 Fjernvarme’s district heating production.
9 000 000 The statistics indicate that by far the largest source of energy
000 000 consumed by the Olav Thon Group is electricity. This comes as no surprise since a large number of 3 000 000 our technical facilities are wholly or partly powered by electricity and the Olav Thon Group is a major 0 Sales district Sales district property actor. A proportion of the hea�ng cooling electricity consumption is used to power heat pumps, and this energy 21
* The base data, explanations and caveats are commented on in the appendix (p. 36). CONSUMPTION PER SQUARE METRE In this year’s report, we can Division for the first time report three 2016 (kWh) 2017 (kWh) 2018 (kWh) Consumption non-renewable fuels 6 345 806 4 419 537 5 348 217 measurement figures (kWh/m2). Consumption renewable fules 8 415 809 14 011 987 13 590 000 Since this is breaking new ground Consumption electricity 299 991 210 320 424 001 268 229 826 in our reporting, these figures Consumption district heating 56 632 171 63 349 314 75 685 704 could potential contain errors. Consumption district cooling 17 081 956 19 949 559 23 236 240 Nevertheless, it is important to refer Consumption steam 0 0 0 to the measurement figures as they Sales electricity 0 0 0 are significantly better indicators of Sales district heating 11 121 000 10 287 000 13 187 000 changes in performance over time. Sales cooling 10 501 000 8 896 000 11 347 000 Sales steam 0 0 0 Energy consumption per square Total energy consumption 366 844 951 402 971 398 361 555 987 metre is available for electricity, district heating and district cooling. It has not proved possible to calculate a figure for total other property actors, the Olav heated up, water is added, and consumption per square metre, so Thon Group has chosen to focus on when the water atomises it takes the consumption has been broken employing its own staff. This also energy from its surroundings and down into the aforementioned ensures that the direct and personal the temperature falls. A two-step categories. In 2018, electricity follow-up of tenants. process allows you to lower the consumption amounted to temperature enough to cool the 93.1 kWh/m2, district heating In 2018, the focus on operations building. It also means you do not consumption 26.3 kWh/m2 and was further strengthened by have to have large cooling plants on segmenting operations in Property roofs. ENERGY CONSUMPTION (KWH/M2) Services. With the establishment of 100 the position of operations manager The heat for the cooling process for hotels, the Olav Thon Group is supplied by Fortum Varme. now has operations departments The heat is a by-product of waste 80 for hotels, commercial properties incineration, so one could say that and shopping centres, respectively. the cooling is, indirectly, run on 60 This ensures operations are more waste. This gives the building an targeted and professional for the extra environmental dimension. various building categories. 40 BSL – CONCEPT STUDY YOUNGSTORGET 3 The Olav Thon Group is planning
20 Youngstorget 3 was completed in a large-scale development for the 2018. Many people quite rightly BSL block, also called the Gunerius refer to Youngstorget 3 as an eco- block, and the application is 0 building. The building has been currently being considered by Oslo’s ELECTRICITY BREEAM certified, achieving a grade Agency for Planning and Building DISTRICT HEATING of “very good”, has solar panels on Services. In 2017, Enova granted DISTRICT COOLING the roof, and a somewhat unusual us support for a so-called concept district cooling consumption 8.1 cooling technology called sorptive study and in collaboration with a kWh/m2. These figures will be more cooling. consulting firm, Erichsen & Horgen, valuable in next year’s report when we completed the report in 2018. we can compare the results from Sorptive cooling is heat-driven We called the project “A little city in 2018 with the results for 2019. cooling via ventilation air. Instead a building”, a name that also reflects of cooling the building down in the the complexity of the planned PROPERTY SERVICES summer via a traditional external development. A solid, dedicated operations cooling plant, the cooling process department is just as important as takes place in the ventilation The purpose of the project was constructing good buildings with plant. The actual process use zero to examine concepts for energy energy benefits. All operations have refrigeration agents, just heat and supply for the block as a whole been collected in Property Services clean water. It simply uses the and it identified opportunities and in the Olav Thon Group. Unlike known laws of physics. The air is potential for non-traditional, but
22 profitable, solutions for saving SOLAR POWER SYSTEM FOR energy and sparing the climate over JÆRHAGEN the lifetime of the building. This will Even though sun is a free, green benefit the landlord, society and, and climate friendly energy source, not least, the tenants. The report the associated profitability is not is a feasibility study, which must that good yet. But the potential is be assessed in relation to external huge and in the Olav Thon Group we framework conditions and the have only just begun testing such project’s ultimate design. We want solutions. One of these systems is the solutions to be chosen based on at the Jærhagen shopping centre a holistic assessment and to be seen outside Stavanger. 336 solar panels in light of future expectations. have been installed on the roof, but an even more special element NEW SERVICE AGREEMENTS of this is the ability to store the In 2018, the Olav Thon Group electricity in three large batteries. negotiated brand new service Storage provides a completely agreements for ventilation, heating, different level of flexibility than one cooling, and automation. We would have were one to supply the also saw this as an opportunity electricity to the grid. The system to bolster the quality of our was primarily installed in order to technical operations. Unlike having be able to offer customers 100% traditional, individual agreements renewable electricity for charging for each discipline, we have electric cars via a total of 30 gathered all of the disciplines charging points. The system installed under the same umbrella. The output is 92.4 kWp and the annual industry has itself called these consumption is around 63,000 kWh. agreements revolutionary. Having a single point of contact instead of a more fragmented solution will be significantly simpler for the individual operations.
A new manual on project administration, a so-called PA manual, has been produced as part of this process. This manual is used for all of our service partners and provides the same competition terms, the same guidance and, not least, predictability. We expect the new service agreements to improve the quality of technical operations, which in turn will produce financial and environmental benefits.
23 Social responsibility
Gender and age breakdown We strive to achieve genuine equality and good diversity among our employees in the Olav Thon Group. That is why we are able to point to a balanced gender breakdown and our commitment to several inclusion projects.
Gender 2015 2016 2017 2018 GENDER BREAKDOWN AGE BREAKDOWN Women 51 % 52 % 53 % 53 % The Olav Thon Group has a balanced The age breakdown of the Olav Men 49 % 48 % 47 % 47 % gender breakdown and the trend Thon Group’s employees is is towards a steadily growing balanced. 49% of employees are proportion of women. The gender in the 30-49 age group. This is GENDER DISTRIBUTION breakdown among managers a large group and spans a wide AMONG MANAGERS AND remains on a par with that in range of experience and skills. MIDDLE MANAGEMENT previous years. Besides the 30-49 age group, a 300 large proportion of the Group’s The proportion of female employees employees are younger than 30. 250 was the same in 2018 as in 2017. A large proportion of these work The proportion of women in in Thon Hotels, which as a division 200 the Group is 53%. An increase attracts many young employees. The of two percentage points has hotel division also has the highest 150 been recorded since 2015, which number of employees, meaning that demonstrates the Olav Thon Group’s Thon Hotels has a big impact on the 100 positive attitude towards equality. Group’s gender and age statistics for its employees. 50 The proportion of female managers increased marginally, for the first 0 Women Men time since 2016, by 1 percentage MIDLLE MANAGEMENT MANAGERS point. Women occupied 46% of senior positions in 2018. There are variations in gender breakdown when differentiating between AGE DISTRIBUTION managers and senior managers. The percentage of women in senior 18 % management is 41%. Amongst middle-management, it is 48%. 33 % The increase in female managers occurred among the senior managers where the proportion of women was 40% in 2017. In 2018, there was a 2% drop in the total 49 % number of managers. Broken down by gender, the number of male Under 30 30-49 50 and over managers decreased by 4% and the number of female managers by 1%. This means that more women than men have remained in senior positions.
24 AGE DISTRIBUTION PER DIVISION 60 %
50 %
40 %
30 %
20 %
10 %
0 % Under 30 30-49 50 and over Not stated
Thon Hotels Shopping Centre Division HQ Thon Bygg Resthon Other companies
An inclusive workplace The Olav Thon Group continuously strives to be an inclusive employer and to create diverse workplaces. This is reflected in the Group’s recruitment process, as well as through its collaborations with various actors who work to create inclusive workplaces.
RINGER I VANNET COOPERATION WITH NAV PØBELPROSJEKTET Ringer i Vannet is a labour and BJERKE The Olav Thon Group had inclusion project organised by The Olav Thon Group has worked an informal partnership with the Confederation of Norwegian with NAV Bjerke in Oslo since 2013. Pøbelprosjektet (an employment Enterprise (NHO). The aim of the Thon Hotels is at the forefront of project) for quite some time. It project is to get people who have this work and contributes through all started with Thon Hotel Vettre fallen out of the labour market work training for the project’s target in Asker, and has since spread to back into work at NHO member group. Since 2013, 56 people have other hotels and shopping centres companies. Ringer i Vannet is based been offered work experience at our in the Oslo area. In 2017, the Olav on local cooperation between hotels in Oslo. Thon Group and Pøbelprosjektet companies and labour and inclusion formalised their collaboration agencies operating in the local The aim of the partnership is to help through a partnership agreement. community. provide access to the labour market life for people with an immigrant In 2018, two candidates were Thon Hotels signed a group background. The partnership is a offered trainee places, at a hotel agreement with Ringer i Vannet in win-win situation for both parties and at the Olav Thon Group’s head autumn 2017. Since then, 27 hotels – the candidates gain workplace office. have signed agreements with local training, language training, and a labour and inclusion agencies. These network, the hotels gain contact agreements have resulted in seven with talented people who can confirmed appointments. According quickly move into employment, and to Ringer i Vannet’s reports, society Norwegian society benefits from the saves NOK 10 million every time a value creation the individual worker person is helped back into work. contributes. This means that, through Ringer i Vannet, Thon Hotels has already In 2018, a total of 10 candidates saved society NOK 70 million. were offered work experience in our hotels. Of these, four candidates have gained full-time or temporary jobs.
25 Employee development
TRAINING AND SKILLS TRAINING GRANTS DEVELOPMENT In partnership with several of our Facilitating courses and skills suppliers, we are able to offer development is important financial support/grants to our staff for the progress of the Group in Thon Hotels and Resthon, through and is therefore one of the HR the Training Fund. The grants are Department’s most important areas for people who want to learn more of responsibility. Information on within a specific field they are courses and enrolment is published working in and are enthusiastic via the Group’s activity calendar in about. This could mean a course in the course administration system. restaurant management, training as 31 different types of courses were a bartender or sommelier, or a craft arranged by the Group in 2018, certificate. in areas such as safety, food and beverages, HSE, management, and APPRENTICES sales. A total of 2,683 employees It is becoming increasingly took one or more courses. In important for the hotel industry to addition to the courses, a total of attract apprentices, both to support eight seminars of various types were professionalism in the industry also arranged in 2018. and because the authorities are introducing ever more stringent THE F&B SCHOOL requirements regarding the use The F&B School arranged courses of apprentices in connection with for the first time in 2016. This tenders. In Thon Hotels, it is the is an internal knowledge school hotels themselves that decide to focusing on food and beverages take on apprentices, although this for the employees of Thon Hotels is increasingly becoming a focus and Resthon. The school offers area for the central management. multiple levels and the elementary In 2018, 53 of our hotels were school was launched in 2016. The approved apprenticeship companies elementary school is a three-day who employed 74 apprentices course covering the basics of being training to be chefs, receptionists, a good service associate. Every day waiters and waitresses, and pastry has a focus area – wine, beer and chefs. spirits. This was continued in 2018, and a total of 51 employees of Thon Hotels and Resthon attended two sessions of the elementary school.
26 HSE
The Olav Thon Group’s health, safety and environment work aims to create safe and secure places to work with good working conditions and thriving employees and managers.
ABOUT THE WORK The Group’s HSE vision is to To get more information out into the maintain a “visible focus on health, organisation, it has been decided to safety and the environment.” The produce two HR & HSE newsletters various divisions in the Group are each year. These will be sent out to working in different ways and on all managers in the Group. The idea levels of the organisation to achieve is for the newsletters to be posted our vision: on noticeboards and thus be made • The executive management available to employees. team holds four HSE meetings each year, in which the key guidelines for HSE are drawn up. • It has been decided that HSE should be an agenda item in internal meetings. • The HSE department attends internal meetings and talks about the HSE work. • The HSE department attends internal HSE training courses and talks about HSE in the Group. • News on health and safety issues is published on the intranet, and printed information sheets are distributed that can be posted on noticeboards to reach those who do not have their own PC. HSE ORGANISATION OTG
WEC ATU AKAN
Thon Conrad Unger Follo Head- AMFI Resthon Thon Hotels Time Park Eiendom Langaard Fabrikker Fjernvarme quarters
27 Organisation (incl. WEC)
The executive management team is the supreme body for HSE matters. The central guidelines are then implemented via the working environment committees (WECs) in the various divisions and units.
HSE WORKING ENVIRONMENT The executive management team COMMITTEE (WEC) A WEC is a There is a central WEC for hotels holds at least four HSE meetings decision-making and advisory body and restaurants. There are also 12 each year in which key guidelines for tasked with helping to implement local WECs, nine of which are linked HSE are drawn up. The Group HSE working environment legislation to Thon Hotels. Over 90% of our Director heads the health, safety in the enterprise. The committees employees are represented via a and environment work, and has take part in the planning of health, formal WEC. established a network of working safety and environment work in environment committees (WECs) the enterprise, and closely follow at a company level. Local unit developments in the working managers are responsible for HSE in environment. There are a total of 13 their unit, and have a duty to follow WECs in the Olav Thon Group. up statutory HSE requirements.
WEC ORGANISATION Other Businesses: HSE group Unger Fabrikker Group Conrad Langaard Follo Fjernvarme
WEC WEC WEC WEC Units without Hotell&Rest Headquarters Time Park Drift Surnadal office own WEC
Hotels with own WECs
28 Sick leave
One of the goals of the Olav Thon Group’s HSE work is to achieve lower sick leave than the national average.
The figures in the table include self-certified and doctor-certified sick leave for our companies. In D s on FTEs S c e e 2018 comparison, the national average Consump�on non-renewable fuels 289 2 75 % was 5.8% in 2018. Consump�on renewable fules 19 12 10 % Consump�on electricity 4 1 55 % Knowing the sick leave figures for a Consump�on district hea�ng 409 4 7 % given period means we also know Consump�on district cooling the attendance rate for the same 2 02 8 54 % Consump�on steam period. The attendance rate tells us 451 3 19 % how many employees have been at Sales electricity 8 1 80 % work and is about factors such as Sales district hea�ng 1 5 28 % a sense of belonging, loyalty, team Sales cooling 115 80 % spirit, motivation, professional pride, 1.Sales Includes steam Thon Hotels AS, Thon Hotels Salg AS, Thon Holding AS, Time Park AS, Time Park responsibility, being able to use your ServicesTotal energy AS, Norsk consump�on Pantelotteri AS, and Norsk Underholdningsspill AS. skills, leadership, and caring for each 2. Includes all operating companies belonging to Thon Hotels AS (incl. Sweden, Belgium and the other. Netherlands) + Vettre Hotelldrift AS, Linne Hotell AS, and Hotel Bristol AS.
Sick leave is always on the agenda of 3. Includes Olav Thon Eiendomsselskap ASA, Gardermoen Park AS, Bergen Storsenter AS, Lagu- each WEC with the aim of increasing nen AS, Amfi Group, Vestkanten AS, Sartor Senterforening AS, Østerås Kjøpesenter AS, Åsane attendance in the Olav Thon Group. Storsenter DA, Thon Ski AS, the Thon Sverige AB Group, and the Thon Fastigheter AB Group. The occupational health service for Thon Hotels, Resthon and Thon Bygg AS follows up units whose attendance figures are too low, and helps to establish measures to improve them. Local social activities that promote better working environments are also organised.
29 Safety
The Olav Thon Group focuses on the safety of both people and property. Digital attacks became increasingly common in 2018.
EMERGENCY INCIDENTS RISK ASSESSMENT The Olav Thon Group experienced The Olav Thon Group’s risk picture no incidents categorised as very has not really changed in recent serious (incidents that result in years. This is especially true when a fatality) in 2018. Threats were it comes to ordinary incidents such made against some of the Olav as burglary and vandalism, where Thon Group’s shopping centres, but the number of incidents has actually with good cooperation between dropped. However, there is an the management, the emergency increase in the risk and likelihood of response team, and the police, digital crime. these were resolved without the operating unit having to close. EMERGENCY DRILLS When it comes to other incidents, The Olav Thon Group has a central the picture was relatively similar to emergency response team that the one in 2017. There has been a manages incidents when our decrease in fires and near fires. At operating units need assistance. the same time, there were several The emergency response team evacuations of our properties due to conducted four emergency drills fire alarms. in 2018. These primarily focused on developing the emergency THE DIGITAL THREAT application further and reviewing The digital threat continues to actual incidents and cases. Beside grow and we have experienced emergency drills organised by the almost weekly scam attempts in emergency response team, regular Norway, Sweden, and Belgium. We emergency training/drills are also experience phishing attempts conducted in the operating units, in and the copying or misuse of our addition to seminars and courses. companies’ Facebook pages. We have seen our name being misused in relation to our guests and customers. This can take the form, for example, of fake invoices and false emails.
30 Supplier chain
The Olav Thon Group purchases goods and services worth NOK 3-5 billion each year, and has a major responsibility as a purchaser.
Responsible purchasing is an SUPPLY CHAIN CONTROL SUSTAINABLE FOOD increasingly important focus area. In 2017, the Purchasing Department The Group is increasingly focusing The Group strives to purchase carried out a project aimed at on sustainable food. The keywords responsibly via thorough procedures improving our control of the are quality, safety, and eco-friendly for supplier selection that include supply chain with regard to ethical food. assessing numerous aspects of purchasing. The Group has a set corporate social responsibility that of ethical standard terms, and the The Olav Thon Group’s central are relevant within the individual project was designed to identify Purchasing Department, on behalf categories. We also have our own and assess the need to monitor risk of our hotels and other catering set of ethical standard terms that more closely. As a control measure, outlets, is constantly on the lookout impose strict requirements on a form was produced for further for good ingredients in collaboration all suppliers and subcontractors, checks of suppliers within the with our suppliers. The Group including their focus on and purchasing categories that were focuses heavily on quality at all continuous work with human considered to be most risky. The stages, from buying to serving. Our rights, working conditions, the suppliers’ responses were used to food and beverage managers run environment, and anti-corruption. follow up relevant points. regular training courses for chefs and encourage the maximum use of MONITORING DUTY After having followed up this work in fresh, unprocessed products. The Olav Thon Group carries out 2018, a need to systemise the work inspections and spot checks in even further has been identified. We are proud of our partnership line with its monitoring duty. The An agreement has therefore been with good Norwegian suppliers. We selection of suppliers is based on entered into with Factlines in only buy food that can be traced an annual risk assessment. The 2019 regarding broader and more back through the suppliers, so monitoring duty is fulfilled both systematic monitoring of the supply we know where the food comes locally and nationally. For centrally chain. This work is expected to from. We are concerned with good agreed contracts, the responsibility commence in the second quarter of internal control and are regularly for monitoring 2019 and will represent improved visited by supervisory authorities, mainly lies with individuals at supply chain control. Our choice of which helps ensure a safe and clean headquarters. Local managers are suppliers, as well as what we choose environment for food preparation. responsible for monitoring various to focus on in this work, will be stress points in the everyday work guided by earlier surveys and risk Thon Hotels has a policy whereby and notifying headquarters if they assessments. all hotels must seek to increase the suspect breaches of collective number of organic products every agreements. Local managers are year. In 2018, we assumed it would also responsible for fulfilling the be possible to offer a minimum of monitoring duty where relevant 15 organic products at each hotel. local agreements exist. Our hotels also focus on local food in the form of home-cooked dishes. A steadily increasing number of the products are produced locally in the hotels.
31 General disclosures
The Olav Thon Group’s general disclosures are provided below. They are based the on template from the Global Reporting Initiative (GRI).
ORGANISATIONAL PROFILE 102-1 Name of the organisation Page 3 102-2 Activities, brands, products, and services www.olavthon.no 102-3 Location of headquarters www.olavthon.no 102-4 Location of operations www.olavthon.no 102-5 Ownership and legal form Page 3 102-6 Markets served Annual Report of the Olav Thon Group 102-7 Scale of the organisation Annual Report of the Olav Thon Group 102-8 Information on employees and other workers Annual Report of the Olav Thon Group 102-9 Supply chain Page 31 102-10 Significant changes to the organisation and its supply chain No relevant significant changes 102-11 Precautionary Principle or approach Page 27 102-12 External initiatives Page 12 102-13 Membership of associations Thon Hotels is a member of the Norwegian Hospitality Association. Otherwise, no such memberships.
STRATEGY 102-14 Statement from senior decision-maker Page 7
ETHICS AND INTEGRITY 102-16 Values, principles, standards, and norms of behaviour www.olavthon.no
GOVERNANCE 102-18 Governance structure Page 3
STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups Page 12 102-41 Collective bargaining agreements Around 70% 102-42 Identifying and selecting stakeholders Page 12 102-43 Approach to stakeholder engagement Page 12 102-44 Key topics and concerns raised Page 12
REPORTING PRACTICE 102-45 Entities included in the consolidated financial statements or equivalent documents www.olavthon.no 102-46 Defining report content and topic boundaries Page 12 102-47 List of material topics Pages 12-13 and 34 102-48 Restatements of information Page 37 102-49 Changes in reporting Page 12 102-50 Reporting period Page 12 102-51 Date of most recent report Page 12 102-52 Reporting cycle Page 12 102-53 Contact point for questions regarding the report Page 40 102-54 Claims of reporting in accordance with the GRI Standards Page 12 102-55 GRI content index Pages 32-33 102-56 External assurance The report is not audited by an external party
32 GRI Index
The Olav Thon Group’s corporate social responsibility report for 2018 was produced in accordance with GRI’s guidelines for sustainability reporting. The Group’s reporting qualifies it for Core Level use of the GRI Standards.
ECONOMIC PERFORMANCE GRI 201-1 Direct economic value generated and distributed Page 17 GRI 103 Management approach Pages 12, 14, 17
ENVIRONMENT GRI 302-1 Energy consumption within the organisation Pages 21-22 GRI 306-2 Waste by type and disposal method Pages 19-20 GRI 307-1 Non-compliance with environmental laws and regulations No instances GRI 103 Management approach Pages 12, 14, 18-23
SOCIAL EFFECTS LABOUR PRACTICES AND DECENT WORK GRI 403-1 Working environment committee Page 28 GRI 404-1 Education, training and counselling Page 26 GRI 405-1 Gender and age breakdown Page 24 GRI 103 Management approach Pages 12, 14, 24-30
HUMAN RIGHTS GRI 406-1 Incidents of discrimination No known instances GRI 407-1 Monitoring of suppliers (organisational freedom) Page 31 GRI 408-1 Monitoring of suppliers (abolishing child labour) Page 31 GRI 103-2? Human rights violations No instances GRI 103 Management approach Pages 12, 14, 31
33 UN Global Compact
The Global Compact is a UN initiative for collaboration with businesses on sustainable development. The letter below was sent to the then Secretary-General of the UN, H.E. Ban Ki-moon, confirming that in supporting the Global Compact, the Olav Thon Group undertakes to integrate the 10 basic principles into its strategy and day-to-day operations. The next letter confirms that the Olav Thon Group continues to support the UN Global Compact, and that the Group’s work will be summarised in an annual report (Communication on Progress).
34 35 Appendix The appendix provides supplementary information about various elements of this year’s Sustainability Report.
FINANCIAL FIGURES to ensure that the Group’s sorting precise, but the figures from An anomaly has been identified in rate represents the actual sorting the Purchasing Department the calculation of product costs, rate. The specified sorting rates per represent a summary of the which also applies to previous years. division are calculated in the same invoiced costs from typical fuel This has, therefore, been corrected way, although with the collation of suppliers. Fuel consumption is in this year’s report and also for the figures for the locations included calculated by dividing the total previously reported calendar years. in the division. invoiced sum by the average As a result, the company’s retained cost per litre of fuel. Energy earnings were lower than previously Given that Retura’s portal solution consumption is calculated using reported. has not yet been cleared for data a factor of 9 kWh/L and an extraction for the purposes of efficiency rate of 45. BASE DATA FOR WASTE the Sustainability Report, these The base data for waste was figures were supplied in an Excel Follo Fjernvarme uses gas for obtained from our waste services worksheet. The location overview peak loads as needed. The suppliers. This means that the and classification of the various consumption figures for gas figures were primarily obtained properties had not been fully quality were not included in previous from Retura, Norsk Gjenvinning and checked at the time they were energy accounts due to a Stena Recycling. Since the Olav Thon obtained. Therefore, there may be misunderstanding. In 2017, the Group changed its main supplier of some errors in the reporting with consumption of gas amounted waste services in 2018, the figures regard to whom some properties to 1,221,000 kWh, which are a collation of the services belong. This may affect the indicates total consumption provided by both Retura and Norsk calculation of volumes and sorting of non-renewable fuels of Gjenvinning in a Norwegian context. rate per division/company, but will 5,640,357 kWh in 2017. The figures from Retura were not have an impact on the overall 2. Renewable fuels: obtained via a contact person, while picture. The consumption comprises the figures from Stena Recycling and Follo Fjernvarme use of pellets Norsk Gjenvinning were obtained The overview of the waste (biomass) and is considered via customer portals. It is therefore management (material recovery, precise. possible that the incorrect use of a energy recovery, etc.) was obtained 3. Electricity consumption: portal could represent a source of from Retura and only covers waste The consumption comprises errors for waste figures, although handled by Retura. This represented the sum of Follo Fjernvarme’s none had been identified at the the majority of the waste in 2018. purchases of electricity and time the report was published. the electricity suppliers’ BASE DATA FOR ENERGY stated deliveries to the Olav All of the figures for waste were Explanation of the base data Thon Group. Control numbers obtained for the full calendar for the various types of energy from Energinet indicate a year 2018. For Retura and Norsk consumption: slightly smaller volume. This Gjenvinning this means that the is primarily due to the fact period was set to 2018, and what 1. Non-renewable fuels: The that some properties are we have obtained are the total consumption comprises the not registered in Energinet. figures for this period, even if the sum of Follo Fjernvarme’s Energinet is a digital solution for suppliers have not been our supplier purchases of oil and gas (and continuously monitoring and for the locations all year. The sorting others), and the consumption reporting energy consumption. rate was calculated on the basis of fuels, obtained from the Consumption is automatically of the waste volume and are not Olav Thon Group’s Purchasing recorded via electricity meters an average of the various sorting Department. The figures from in the properties. rates per division/location. This is Follo Fjernvarme are considered 4. District heating consumption:
36 The consumption comprises the GENDER AND AGE sum of Follo Fjernvarme own Sources: purchases of district heating, and registered consumption • The Olav Thon Group’s HR in Energinet. Control numbers system (Norway) have not been obtained from • The Olav Thon Group’s payroll the Purchasing Department. system (Norway) 5. District cooling consumption: • Thon Hotels’ HR system The consumption is the (Benelux) registered consumption in • Thon Hotels AB’s HR system Energinet. Control numbers (Sweden) have not been obtained from • Thon Property AB’s HR system the Purchasing Department. (Sweden) 6. Sales of district heating: Registered sales obtained from The age statistics provide an Follo Fjernvarme. anonymous overview of the ages of 7. Sales of cooling: employees from all of the sources. Registered sales obtained from These have been collated per Follo Fjernvarme. division and totalled.
The goal is to obtain/use statistics The gender statistics were obtained from Energinet. At the moment, at an overarching level from the only the consumption figures for Olav Thon Group’s HR system in district heating and district cooling Norway. Almost all of the Group’s can be read off in Energinet, albeit employees are employed in Norway with a supplement for district and are registered in the HR system. heating from Follo Fjernvarme. The We have therefore chosen to use numbers are still encumbered with these figures for the entire group some uncertainty. since collating information about the rest of the employees who are In order to see the trend for specific not registered in this system would consumption (kWh/ m2), we need a be challenging. link between consumptions figures and space. As of today, the only The gender breakdown of managers place this exists is in Energinet. was obtained from the Olav Thon Energinet contains electricity, Group’s payroll system in Norway. district heating and district cooling. The system can differentiate This specifies the heated area, which between senior managers and means the area inclusive of tenants, middle managers. The number while the consumption figures are of these per gender has been stated exclusive of tenants. The collated so that simple percentage figures will therefore not be correct. calculations of the gender It would be best if we had viewed breakdown can be made for the compared consumption in shared categories senior manager, middle facilities with the area of shared manager, and the total picture. facilities, but we do not have these areas available. However, using the suppliers’ figures for shared facilities and areas from Energinet, we can get a figure we can use for comparisons. OLAV THON GROUP Stenersgata 2A Postboks 489 Sentrum | 0105 Oslo Telephone +47 23 08 00 00 [email protected] | olavthon.no