2019 SUSTAINABILITY REPORT 2 2019 SUSTAINABILITY Contents REPORT 04 About this report 06 The Olav Thon Group 2019 09 Sustainable Value Creation Group Structure 10 The Olav Thon Group’s Sustainability Work 13 The Olav Thon Foundation 14 Pantelotteriet 16 UN Sustainable Development Goals 19 Economic Corporate Social Responsibility 20 The Environment 27 Social Responsibility 30 HSE 34 The Supply Chain 35 General Disclosures 36 GRI Index 37 UN Global Compact 39 Appendices
Executive Management Team
OLAV OLE- CHRISTIAN DAG MORTEN ARNE B . THON HALLERUD TANGEVALD - JENSEN THORVALDSEN SPERRE Konsernsjef Visekonsernsjef/ Konserndirektør Konserndirektør Konserndirektør Konserndirektør Eiendom Økonomi | Administrasjon Hotell | Restaurant Finans
3 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 (GRI) reporting framework since 2013. This report has been prepared in accordance with GRI Standards (Core).
LIMITATIONS AND REPORTING PERIOD materiality analysis were conducted The combined stakeholder This Sustainability Report is aimed at in 2016/2017. dialogue and materiality analysis our customers, guests, employees, was conducted by the technical suppliers, the local communities The need to repeat these was first adviser for sustainability work, who in which we operate, students, discussed in a meeting with the analysed aspects and associated special interest groups, and public group directors in September 2016, indicators and also collected priority authorities. We regard all of you as at which a decision was made to analyses from the group directors stakeholders who are affected by, conduct a combined stakeholder in relation to the various aspects and have a considerable influence dialogue and materiality analysis (including simple explanations for on, our business. with key personnel in the Group, each aspect). Interviews were then as well as the group directors. The conducted with the group directors The data presented in this report Group’s economic, environmental in which the aspects were reviewed is for all the companies in the and social impact was examined and explained further. The technical Olav Thon Group, which means earlier to determine our footprint adviser and group directors business units of which the Olav and thereby identify the areas in discussed the aspects and related Thon Group owns more than 50%. which we can make a contribution significant/relevant indicators (based Any exceptions are explained in the in the form of sustainable on the previous materiality analysis notes on the individual data. development. The previous and a new analysis conducted by The report is for the calendar year materiality analysis is still viewed the technical adviser looking at 2019 and has been produced in as highly relevant in the context of market demand and signals from Norwegian, Swedish, and English. the Sustainability Report, although the executive management team The Group has an annual reporting some adjustments have been made and from key personnel in the cycle, meaning that the next report following the new stakeholder organisation). All group directors will be published in the second dialogue. were then given the opportunity quarter of 2021. The previous report to prioritise the aspects anew. was published in September 2019. The stakeholder dialogue was These were compiled in a priority conducted in two phases: an table (average of all of the group MATERIALITY ANALYSIS AND ongoing dialogue with key personnel directors’ priorities), which in turn STAKEHOLDER DIALOGUE in the Group and interviews with formed the basis for the managers’ We have previously conducted the group directors. The ongoing report with recommendations. a materiality analysis in order dialogue with key personnel is This report has taken the previous to define the content of the essential in order to obtain relevant materiality analysis into account, as Sustainability Report and ensure information and focus our efforts well as the most recent stakeholder that the report is as relevant to our in the direction the organisation dialogue. core operations as possible. This was deems necessary at any given time. done for the first time in 2013 as At the same time, it is the group FOCUS AREAS part of the preparations for the first directors who make decisions in In our sixth sustainability report, sustainability report. the area of sustainability and it we have decided to emphasise We need to conduct these is important that information on four focus areas for the Group: stakeholder dialogues and trends is communicated to the economics; environment and green materiality analyses at regular group directors, so that they can operations; health and safety; intervals and, for this reason, a new make well-informed decisions on diversity and inclusion. stakeholder dialogue and a new the direction of the work.
4 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
5 The Olav Thon Group 2019
OUR SHOPPING CENTRES AN HOTELS
Nor 9 OF THE 10 LARGEST 79 T e Group o ns or n es 9 o t e 10 r est s opp n centres n Nor 72
S e en 11 O which 5 hotels and 3 apartment in Brussels and 1 hotel Ro�erdam
Tot S opp n centres
KJØPESENTER 90 Hote s Brusse s Ro�er N RINGSEIEN O BOLIG 1 9
DID YOU KNOW... Thon Hotels has about A FI adla was Thon Hotel 10 450 ote roo s n e est s opp n Rosenkrant er en spread across 72 hotels centre 2019 s n e est ote in Norway 2019
6 O T on Group’s profit e ore t n 2019 4 2 BILLION NOK
Net investments At the year end, totalled NOK 2.5 cash reserves billion in 2019 amounted to NOK 9.4 billion
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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
9 The Olav Thon Group’s Sustainability Work
The Olav Thon Group works systematically on sustainability and corporate social responsibility. We have policies and guidelines in place and we continuously follow up on sustainability and corporate social responsibility work.
In order to integrate the consideration and coordination has been assigned to Further evaluation of the Group’s for human rights, employee rights, the HSE department, represented by focus areas is addressed in the equality and anti-discrimination, the Group’s sustainability advisor. The various chapters of this report. social conditions, the external various companies/entities within the environment and the fight against Group are responsible for the everyday OTHER POLICIES AND GUIDELINES corruption, the Olav Thon Group has implementation of sustainability The Olav Thon Group has a number developed a policy for corporate social measures. of policies and guidelines within responsibility, joined the UN Global corporate social responsibility and Compact as a member, prepares The work on corporate social sustainability. annual reports in accordance with responsibility and sustainability will be GRI Standards, employed its own highlighted internally and externally Policies: sustainability advisor and convenes through annual sustainability reports, - Environmental Policy annual status meetings for corporate as well as internally through the - Diversity and Equality Policy management addressing sustainability use of separate tools for internal - Group Procurement Policy and corporate social responsibility. communication. - Travel Policy
CORPORATE SOCIAL OVERALL EVALUATION OF THE Guidelines RESPONSIBILITY POLICY WORK IN THE LAST YEAR - Supplier Code of Conduct The Olav Thon Group policy for The work on sustainability and - Guidelines for waste sorting corporate social responsibility corporate social responsibility is - Guidelines for company/service describes the Group’s goal of evaluated annually at status meetings cars pursuing the most sustainable between the HSE department and the - Guidelines for responsible development possible in its Executive Management Team. At the procurement business activities. Corporate social 2019 status meeting, the 2018/2019 responsibility in the Olav Thon Group status was presented, alongside EXPECTATIONS GOING FORWARD is based on Norwegian legislative proposals for activities in 2019/2020. With regard to the Olav Thon Group’s requirements and standards as well During 2019, work has been work going forward, the expectation as the principles of the UN Global undertaken on various aspects of the is that policies and guidelines will be Compact and the guidelines of the Group’s sustainability work and certain revised, annual sustainability reports Global Reporting Initiative (GRI). elements have been given greater will be validated externally in future In accordance with our policy, the priority than others. The largest and that a new materiality analysis is focus is on waste, energy, health and change is the Group’s designation of conducted, that stakeholder dialogue safety (for employees, customers and relevant UN Sustainable Development takes place to a greater extent in guests), diversity, equality and anti- Goals. This is followed by reporting in connection with sustainability work, discrimination, as well as the impact accordance with GRI standards for the that work is undertaken to establish a on local communities. first time. Other than this, the work is sustainability strategy within the Group considered satisfactory in accordance and that a new system for internal ORGANISATION OF THE WORK with the Group’s corporate social control of the work on sustainability The Executive Management Team is responsibility policy. However, work and corporate social responsibility is responsible for the Olav Thon Group’s will still be undertaken to ensure established. These measures are not work on corporate social responsibility better integration in the Group’s expected to be implemented in 2020 and sustainability. The professional and everyday operations and strategic but the work on the measures will everyday responsibility for facilitation decisions in 2020. commence from and including 2020.
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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 purpose of the Olav Thon Foundation is to exercise stable, long-term ownership of Olav Thon Gruppen AS and to distribute funds to non-profit causes.
SOCIAL COMMITMENT SUPPORT FOR NON-PROFIT For the fifth year running, academic Olav Thon has dedicated his CAUSES prizes and funding for outstanding working life to creating value The foundation will support causes teaching and research in the and secure jobs. Both Olav Thon within the areas of mathematics, medical and scientific fields were personally and the Olav Thon Group science and medicine. This may awarded in 2019. Prizes and funding have increasingly made active be done by awarding prizes to were awarded in four different contributions towards a better Norwegian and international categories – an international society. researchers and through direct research award, national awards support for research projects. for outstanding teaching, support LONG-TERM OWNERSHIP OF THE for Nordic research collaboration in OLAV THON GROUP Support will also be provided both medicine and support for student- The job of the foundation’s board for general non-profit causes and led research. Altogether, awards is, through its management of the for the construction of properties totalling almost NOK 30 million were Olav Thon Group, to ensure that for use for non-profit purposes in presented and shared by the award the Group develops in line with the Norway. winners. values, vision and ideas on which Olav Thon has based his business A large number of applications for For more information on the award career. support of non-profit causes were winners, please visit the Olav Thon received in 2019. Distributions of Foundation website. The foundation will continue approximately NOK 35 million (NOK to own all of the shares in Olav 79 million in 2018) were approved. Thon Gruppen AS, which will Funding was distributed to 17 non- remain domiciled in Norway. The profit causes in 2019. 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.
13 Pantelotteri
The Pantelotteri is an eco-friendly lottery in which bottle deposits are used as the stake in the lottery. 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.
2019 will go down in history as the best year for the Pantelotteri of all 45.43% time. This has a major impact on humanitarian work. Market share in best shop In July alone, a pledge of NOK 18 Half of the income goes to the local million in bottle deposit returns was Red Cross branches, for many of made, NOK 4 million more than in which these funds have become NOK 62.7 July the previous year. This is the one of their most important sources highest one-month total ever. The of income. This means better million increase in revenue was no less preparedness and more visitors, Contribution to the Norwegian Red than 24 percent for the year as a homework helpers, refugee guides Cross in 2019 whole. In 2019, an invitation was and much more. extended for Joker and Nærbutikken retailers to join the Pantelotteri. This NOK 306.5 contributes to increased distribution and higher income. million Contribution to the Norwegian Red In total, the Pantelotteri contributed Cross since 2008 NOK 62.7 million to the Norwegian Red Cross in 2019. This has a major impact on humanitarian NOK 523,470 work, locally, nationally and Funds raised in best shop internationally. 71 69 2 6 r k 36 9 9 3 9 4 r k 9 3 Contributions to the Norwegian 17 0 11 1 Red Cross 7 04 The Norwegian Red Cross’s 3 09 1 r 45 5
k annual income from Pantelotteri 2 9 1 37 0 3 9
r has risen dramatically since it 24 1 2 k r 6 0 0 4 0 k was started and amounted to 2 3 r
k no less than NOK 62.7 million in 2 r 52 3 61 1 k