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 CentrNortern Nor 29 17 Seen 11 9 OF THE 10 LARGEST Western Nor Te Group ons or nes 9 o te 10 rest soppn centres n Nor 25 20 SouternEstern Nor 34 34 * O hich 5 hotels and 3 apartment in Brussels and 1 hotel Ro�erdam Tot: Soppn centres SHOPPING CENTRES 99 COMMERCIAL PROPERTY Hotes Brusses/Ro�erdam* RESIDENTIAL PROPERTY 80 9 DID YOU KNOW Olav Thon Group Thon Hotel Storo as The Olav Thon Founda�on ons around 3 .2 named the customers’ onte NOK 42 on on s o favourite hotel in Noray to research and teaching propert by erg-Hansen in 2018 4 At year end Thon Hotels had 11,870 ote roos in 80 otes Around 500 flats are under O Ton construc�on in Group’s profit Oslo and Akershus eore t n 2018: Olav Thon Group has around 5500 tennts in our shopping centres 4 ,9 in Noray BILLION (NOK Thon Eiendom one and ne 99 soppn centres in 2018 Net investments At the year end, totalled NOK 28 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.