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 Econoc 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 Te Group ons or nes 9 o te 10 rest soppn centres n Nor 72

Seen 11 O which 5 hotels and 3 apartment in Brussels and 1 hotel Ro�erdam

Tot Soppn centres

KJØPESENTER 90 Hotes BrussesRo�er NRINGSEIENO BOLIG 1 9

DID YOU KNOW... Thon Hotels has about AFI adla was Thon Hotel 10450 ote roos ne est soppn Rosenkrant eren spread across 72 hotels centre 2019 s ne est ote in Norway 2019

6 O Ton Group’s profit eore t n 2019 42 BILLION NOK

Net investments At the year end, totalled NOK 2.5 cash reserves billion in 2019 amounted to NOK 9.4 billion

7

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.

10 11

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

2019. 1 r 42 3 k 65 7 2 20 6 1 r 7 4 k 7 91 4 r 54 3 k 4 r k 92 r k

200 2009 2010 2011 2012 2013 2014 2015 2016 2017 201 2019 14 NOK 62 million for the Norwegian Red Cross The Norwegian Red Cross will receive NOK 62 million from the Pantelotteri in 2019, up from NOK 50 million in 2018.

“2019 has been a year with a high The previous bottle machine was 17 Funds water rescue number of emergency response years old and it was both slow and Brummunddal Red Cross Emergency missions and injuries in extreme noisy. The new Tomra machine was Response Corps is one of the weather conditions. In such conditions, installed this summer and this time local branches that receive the it is crucial that we have the funds to Pantelotteri was included. This resulted most funds from the Pantelotteri act quickly. We are now entering a in the amount of bottle deposits at the in Hedmark. Director Pål Chr. year with major challenges ahead. The store doubling and took Joker Fjellbu Tyskeberg also really appreciates income from the Pantelotteri therefore into the lead when it came to Oppland the willingness to donate among all means a lot to us and to all of those stores and the proportion of deposit bottle deposit users in the county. we are able to assist in a variety of returns donated to the Pantelotteri. The Emergency Response Corps has, different ways. Locally, the funds help “It would also appear that the new, among other things, specialised in to improve preparedness, counteract much quicker, machine is attracting water rescue and has its own boat loneliness and social exclusion and to more customers. Customers also and its own underwater drone. create safe and positive conditions seem to consider it a positive “The drone is pretty unique and allows for children and young people,” that they are able to support the us to carry out underwater searches says Robert Mood, President of the Norwegian Red Cross through their without using divers,” says Tyskeberg. Norwegian Red Cross. bottle deposit returns,” says Jølstad. A team of around 20 people work on water rescue and many of them Taking the lead in the county The new machine is great news for practice every week. During winter, In 2019, Joker and Nærbutikken Nord-Aurdal Red Cross Emergency training takes place at a swimming became part of the Pantelotteri. Even Response Corps and Executive pool. In total, there are now 70 though it is optional for stores to join, Director Odd Magne Bjørgo. volunteers in the local emergency nearly 200 retailers have chosen to The Emergency Response Corps response corps, from 15-year old have the lottery in their stores. Just currently has around 14 active trainees to the oldest member, who a few months after Joker Fjellbu had members, who have all undertaken clocks in at the age of 70. Several a bottle bank with a “donate to the extensive training in first aid and of the volunteers staff the corps’ Red Cross” button installed, the store emergency preparedness. ambulance or act as drivers for A&E has taken the lead in the list of stores “The funds from the Pantelotteri during evenings and weekends. where customers give the greatest have become an important source of “We also have a team of girls that proportion of the bottle deposit to the income for us. I would therefore like have specialised in climbing and rope Norwegian Red Cross in all of Oppland. to thank everyone who contributes. rescue. All in all, this means that Another store supporting the lottery we are extremely well equipped in “Previously it was a bit of a chore to means that we can receive even the event that search and rescue is return bottles here. I think the old more funds to run the emergency required. Often this also results in us machine was driving both customers response corps,” says Bjørgo. assisting in areas outside of Hedmark and employees a bit crazy,” explains and Oppland,” the Emergency shopkeeper Lars Jølstad. Response Corps Director says. 1 2 2 1 Accumulated contributions to the Norwegian Red Cross 10 3 306451 306451

r r k k 10 3 Adding up the annual funds raised by Pantelotteri gives 73 4 243753

4 1

you the total amount raised since it started in 2008. The r k 243753

73 0 73 4 r

total has now surpassed NOK 306 million. 193769

k r k 6 2 15659

r 4 1 22 7 k 193769 124507

r r 5 7 k k 94616 01 7

73 0 r k 6375 15659

r r k 44574 k

r 6 2 26051 k

124507 r

r k 0 k r 22 7 k 94616

r 5 7 k 200 2009 2010 2011 2012 2013 2014 2015 2016 2017 201 2019 6375

01 7 r k 44574

r 74 9 k 26051

r

k 15 542 0

r

r k k

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 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 aims to with the Group’s sustainability four Sustainable Development Goals contribute by minimising its negative adviser, mapped the Group’s that stand out as the most relevant impact and increasing its positive value chain based on the GRI goals that the Group can help to impact on the UN Sustainable and the Global Compact’s guide achieve: Development Goals. As a major on identifying UN Sustainable purchaser of goods and services, Development Goals. Based on this • 12 - Responsible consumption a group with many customers and mapping, we analysed which of the and production employees and as a cornerstone Sustainable Development Goals the • 8 - Decent work and economic company and district developer, the Group appears to have the greatest growth Olav Thon Group can contribute in impact on, both in a positive and a • 11 - Sustainable cities and many links of the chain. We will make negative sense. Next we determined communities sure we buy the raw materials that where in the value chain this impact • 9 - Industry, innovation and are best for the environment and occurs and which targets it would be infrastructure social conditions. We will reduce most relevant for us to contribute our consumption in production and to achieving. The Olav Thon Group In addition to identifying these operations. We will influence our has also chosen which of the goals, we have chosen to identify suppliers and make sure that the measurable indicators it would seek the targets it would be most services we offer our customers to report progress on. Some of the relevant for us to work on. We are sustainable. We will streamline indicators have been modified to have also chosen to identify which our day-to-day operations. And we better reflect our own operations, indicators we will seek to report on will be inclusive and contribute to a although the same principles apply in order to measure the Olav Thon diverse business world. as for the original indicators. Group’s contribution.* 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.

The work to operationalise the Sustainable Development Goals has not been completed and will continue in 2020. There are therefore limited opportunities to report on the goals for the 2019 calendar year. It has been decided that the SDG Action Manager tool, developed by B Lab and UN Global Compact, will be used as the evaluation tool for the work on the 16 Sustainable Development Goals.

* See the next page for more information. 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 • • • • • • • • • • • • • • •

17

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 son 2016 2017 201 2019 Revenues 10 172,0 10 935,0 11 041,3 10 412,7 Opera�ng costs 5 05,6 5 345, 4 423,1 3 2, Employee wages and benefits 1 505,0 1 505,0 1 590,6 1 715,6 Payment to suppliers of capital 1 27,0 1 107,9 1 632,6 1 337,0 Payment to authori�es 213,7 371,7 50,0 412,3 Investments in society - - 71,4 4,0 Fnnc ues retne n te copn 2 1166 2 6053 2 156 3 0351

INCOME AND PROFITS Norwegian companies’ earnings from to expand the business. This is in In 2019, the Olav Thon Group sales of their goods and services. The line with the Olav Thon Foundation’s achieved operating income of NOK payment of employee wages and articles of association and helps create 10,412.7 million and its retained benefits represents a more direct jobs and value for Norwegian society. earnings amounted to NOK 3,035.1 contribution. The Olav Thon Group million. These retained earnings paid NOK 1,715.6 million in wages and The Olav Thon Group also were invested in expansion and benefits to employees in 2019. This contributes through investment in business improvements in line with impacts the economy by contributing local communities. In some cases, the Olav Thon Foundation’s articles to the personal finances of each we will make improvements to public of association. employee and helps to maintain the spaces/installations adjacent to our purchasing power of our workforce, as construction projects. This could FINANCIAL CONTRIBUTIONS TO well as their contributions to society entail planting trees, building new SOCIETY through the payment of taxes and pavements, or similar measures. The Group’s financial contributions duties. The Olav Thon Group is also a Through the Pantelotteri, funds are to society are divided into several direct contributor to society through distributed to the Norwegian Red factors. Its operating costs constitute the payment of taxes and duties. Cross and are allocated directly to indirect socioeconomic support In addition, the retained earnings the local and central work of the in that they contribute to other generated by the company are used Norwegian Red Cross. In 2019, the Olav Thon Group invested NOK 84 Outons 2019 million in local communities. In addition to investment in local Opera�ng communities, funds are distributed expenses to non-profit causes including scientific research by the Olav Employee wages Thon Foundation. This payment is and benefits financed through dividends paid to the Olav Thon Foundation by the Payment to Olav Thon Group. In 2019, dividends suppliers of capital amounting to NOK 50 million were paid from the Olav Thon Group to Payments to the Olav Thon Foundation and NOK authori�es 44 million was awarded as prizes.

Investments in Further explanation of financial figures society can be found in the appendix (p. 39). 19 Environment

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.

In order to safeguard the external the individual subsidiaries are GREEN BUILDING ALLIANCE environment, the Olav Thon Group responsible for following up. In 2019, the Olav Thon Group undertakes systematic and focused The model was revised in 2016 after became a member of the Green work in the areas where the Thon Hotels became a part of Eco- Building Alliance. The Green Building Group has the most impact. These Lighthouse’s HQ model in 2015. Eco- Alliance is a non-profit membership considerations are integrated by the Lighthouse has improved its digital association for companies from the Group through its environmental interface and has now completed a construction and property sectors. policy. The policy focuses on comprehensive digital solution for The Olav Thon Group considers the environmental management and certification and recertification. In Green Building Alliance to be a key the two main focus areas of the the transition to the digital solution, forum for exchanging expertise with Olav Thon Group’s work with the Thon Hotels reviewed the criteria the industry, so that the Olav Thon environment: waste and energy. again and reallocated them between Group can be part of a sustainable headquarters and subsidiaries, construction and property sector. This THON HOTELS albeit without any significant is a great way for us to manifest our Thon Hotels’ Eco-Lighthouse changes. The new digital solution corporate social responsibility and certifies all of the hotels it owns in makes the certification process is a key source for green property Norway. As one of Norway’s largest easier and more transparent for development. At the Olav Thon hotel chains, Thon Hotels has a underlying units and allows better Group, we focus on skills development responsibility to contribute to a integration with the person assigned among technical operations better environment. With more than responsibility for Eco-Lighthouse employees. The membership of the 2.8 million guest nights per year, it is certification at headquarters. Green Building Alliance provides important to facilitate eco-friendly Certification based on the new us with access to valuable training consumption, reduced waste and model was carried out for the first materials. The skills development energy savings. time in 2017, with great success. itself has Thon Hotel's headquarters was re- taken place Thon Hotels is also a certified in 2019. The certification is individually control member of perceived to have a positive impact using online Grønt Punkt Norge on the environmental efforts at the training and requires its hotels. with central Norwegian suppliers follow-up. to be members of a The headquarters model will This allows return scheme for packaging. contribute to simpler and more each operational employee to rational certification for the hotels, manage the speed and progress REVISED HQ MODEL stronger local support and better themselves. The membership of the In 2015, information flow. Thon Hotels’ overall Green Building Alliance is perceived Thon Hotels environmental results are presented as having a positive impact on such was certified to management annually. The skills development, as well as fostering according to the ambitions of the environmental work collaboration across the property headquarters will be strengthened and further industry. model. The model highlighted. The pace is expected to ensures that responsibility for be maintained where certification the environmental management is concerned and all new hotels system is anchored where it are expected to be Eco-Lighthouse naturally belongs and clarifies certified regardless of whether they which processes and environmental are franchised or owned. requirements headquarters is responsible for and which environmental requirements

20 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 in order to reduce the Group’s impact on the external environment.

THE GROUP'S WORK ON WASTE with a more pronounced increase The Olav Thon Group has an from 2018 to 2019. environmental policy, in which waste is designated as one of two main There are considerable differences WASTE VOLUME (TON) focus areas. We have expressed between the various divisions/ 35000 an ambition to reduce the volume companies. The most significant 30000 of waste and also to achieve an division is the shopping centres, 25000 average sorting rate of 60% in which account for the largest 20000 the Group. To achieve this, the volume in the Group (67.8%). Other 15000 10000 Olav Thon Group has established significant divisions are Thon Hotels 5000 separate guidelines for waste sorting (11.3%) and commercial property 0 2015 2016 2017 201 2019 and waste schedules developed for (9.9%). It is particularly important

NON�HAZARDOUS HAZARDOUS the various entities in the Group. All that these three divisions perform of this takes place in close dialogue well with respect to sorting rates. with the waste management If these divisions do not perform provider. Status meetings with well, the target of a sorting rate of suppliers are convened at regular 60% will be impossible to achieve. intervals, waste is a subject in The shopping centres achieved an internal communication as well as average sorting rate of 56.1% in an agenda item at the annual status 2019. This is 0.9 percentage points SORTING RATIO meeting on sustainability with the higher than in 2018 but remains 51,6 % 47,7 % 4,6 % 49,7 % Executive Management Team. stable at around 55%. Commercial 46,0 % properties decreased by 1.0 VOLUME percentage point from the 2018 For the first time in several years, level to a sorting rate of 34.4%. the volume of waste in the Olav The Olav Thon Group’s commercial Thon Group is increasing. The properties are largely older city increase can predominantly be blocks in the centre of Oslo with attributed to the shopping centre little space for waste management. 2015 2016 2017 201 2019 division and may have been caused This means that it is challenging to by changes to the property portfolio establish and manage a high sorting or tenancy relationships. The actual rate for waste. In 2019, as in 2018, change in volume from 2018 to Thon Hotels achieved an increase in 2019 is 6.3%, corresponding to approximately 1,938 tonnes of ASTE TREATENT 2019 waste.

SORTING RATE son 2015 2016 2017 201 2019 Shopping centre 54,5 % 56,0 % 55,5 % 55,2 % 56,1 % The average sorting rate in the Hotel 46,0 % 47,5 % 49,1 % 53,9 % 56,9 % Property 36,0 % 33,0 % 3,1 % 35,4% 34,4 % Group is 51.6%, which is below our Headquarters 54,0 % 4,9 % 43,2 % 53,2 % 54,5 % stated target of an average sorting Sweden 50,2% 44,9% 59,0% 55,5 % 52, % enelux 35,9 % 12,7 % 40,2 % 24,0 % 24,0 % rate of 65%. Even though the target Resthon 22,0 % 23,9 % 5,6 % 17,7 % 17,1 % has not been achieved, the sorting Unger Fabrikker 12,0 % 10,0 % 7,2 % 3, % 5,3 % Follo Fjernvarme 43,0 % 50,0 % 4,1 % 29,7 % 57,4 % rate was 1.9 percentage points Conrad Langaard 17,0 % 30,1 % 37,6 % 37,0 % 23,0 % higher in 2019 than in 2018. The Totalt 47,7 % 46,0 % 4,6 % 49,7 % 51,6 % ATERIA RECCING ENERG RECOVER sorting rate has therefore continued ANDFI to steadily increase since 2016, but

21

*The base data and caveats concerning waste statistics are explained in the appendix (p. 36). You can also find a more detailed overview of waste management methods for various waste fractions in the Olav Thon Group. SORTING RATIO PER IVISION 100

0

2015 60 2016

40 2017 201 20 2019

0

Property Resthon Sweden Headquarter Hotels enelux Hotels Norway Uner Fabrikker Conrad anaardFollo Fjernvarme Shoppin centers

its sorting rate. In 2019, Thon Hotels Therefore, a good sorting rate waste at hotels. achieved a sorting rate of 56.9%, means a higher material recovery which represents an increase of rate, which is more sustainable than TOO GOOD TO GO 3 percentage points. Thon Hotels energy recovery. Thon Hotels entered into an is now the business area in the agreement with Too Good To Go Olav Thon Group with the highest ASSESSMENT AND EXPECTATIONS for some of its hotels in 2016. The average sorting rate. The overall trend in waste volume number of participating hotels has As is apparent from the historic is negative, while the overall trend since increased and in 2019 there overview of the sorting rate per in sorting rate is positive. However, were 27 hotels offering food via Too division, there have been some there is still some way to go to Good To Go. big annual variations in the sorting achieve the goal of an average Too Good To Go is a solution rates. This may be due to sources sorting rate of 60% for the Group. designed to reduce food waste. It of errors, but it has not proved The collaboration with the waste helps restaurants and other food possible to identify any. disposal provider is anticipated to outlets sell their surplus food. In continue and we will also make brief, the participating hotels are WASTE MANAGEMENT internal advances in the form of registered in Too Good To Go’s app, In collaboration with our new waste internal communication. Waste is which enables users to order surplus disposal supplier, Retura, we can an area in constant development, food. The food can usually be picked report on our waste management especially with regard to innovation up just after the restaurant closes, methods. This allows us to see in equipment and downstream and entails minimal extra work for how much of our waste is recycled, solutions. We anticipate that we will our employees. The main aim of this as well as how the materials are continue to explore the possibilities measure is to reduce food waste recycled. The waste firstly has to within the waste segment. after the food has been cooked. be sorted into fractions in order to be recycled. This means that there MEASURES IN 2019 The most important thing food is a strong correlation between - Further increased focus on suppliers can do is reduce waste the sorting rate and the material monitoring, customer service and in production, but if surplus food recovery rate. In 2019, the Olav information. is unavoidable, Too Good To Go is Thon Group achieved a material - Monthly reports on costs and an initiative that makes it possible recovery rate of 55.6%. In addition, sorting rate to be sent to each to prevent this surplus food from 44.3% of the waste was used for location. going to waste. This is great for the energy recovery in the form of - Focus on optimisation and review environment and for finances, both incineration. 0.1% of waste went to of status reports at the local level. ours and the finances of those who landfill. - Increased frequency of central use Too Good To Go. status meetings with waste The majority of the waste that goes management providers. Thon Hotels rescued 23,939 to energy recovery is residual waste. - Optimisation of handling of food portions of surplus food from

22 going to waste in 2019, saving the WAISTER environment 59.8 tonnes of CO2. The Olav Thon Group has previously This is equivalent to a car driving participated in the pilot testing 238,805 km, or charging 7,626,427 of Waister, a food waste drying mobile phones. machine. Following a brief stay at Thon Hotel Arena, the machine was returned to the factory in Italy for calibration and further testing. The machine later returned to Thon KUTTMATSVINN 2020 Hotel Arena as a full production In 2017, Thon Hotels signed a model. It should be capable of contract to participate in the reducing the volume of food waste KuttMatSvinn 2020 (cut food by 75-80%, which benefits the waste) project. One third of all food environment through less logistics produced is thrown away. If food and waste management. In addition waste were a country, it would be to this, the downstream solutions the world’s third largest country in are much better for this dry waste terms of greenhouse gas emissions. than for normal food waste. The KuttMatSvinn was started as a end product is significantly better measure aimed at contributing to for incineration than wet waste and the UN Sustainable Development the biogas potential is around three Goal of cutting food waste by 50% times as high as for wet food waste. by 2030. The aim of the project is to cut food In 2019, three new machines were waste in the catering industry by procured for Thon Hotel Opera, 20% by 2020. Several other large Thon Hotel Oslo Airport and Hotel hotel chains are participating in the Bristol respectively. project, along with many individual hotels and restaurants. Thon Hotels will contribute by taking various steps to reduce our food waste. All of the food we throw away must be weighed, which enables us to see whether we need to change the way we procure and produce food in our hotels. Thon Hotels chefs are encouraged to be creative in terms of food reuse, we encourage guests to help reduce the amount of food waste on their plates and Too Good To Go is used to sell surplus food.

23 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.

THE GROUP'S WORK WITH ENERGY The Olav Thon Group undertakes systematic work with energy to safeguard the external environment. CONSUPTION 2019 KH Our environmental policy focuses on energy management through 300 000 000 awareness, training and increased expertise. In addition, we also 250 000 000 focus on energy reduction and the phasing out of fossil fuels. 200 000 000 This is done, among other things, through an energy monitoring 150 000 000 system, a focus on LED lighting, 100 000 000 water consumption and demand management. The work is overseen 50 000 000 by a separate technical department holding the overall responsibility for 0 the work on energy management Non-renewable Renewable Electricity District District and energy optimisation. sources sources hea�ng cooling

ENERGY CONSUMPTION WITHIN THE ORGANISATION The reporting categories are in of non-renewable fuels in 2019 Reporting these figures for a group accordance with GRI Standards. involved gas, which is used for with numerous subsidiaries and peak loads in Follo Fjernvarme’s different types of operations is The Olav Thon Group’s total district heating production. The complicated. The figures have energy consumption increased consumption of non-renewable been taken from our energy by approximately 2.8% from 2018 fuels is small compared to the total portal, Energinet, in which some to 2019. Electricity consumption consumption in the Group. Of the of the figures are checked against increased by 1.4% in 2019, which is total consumption, non-renewable purchases and the accounts.* mainly due to a general increase in consumption accounts for only space. District heating consumption 1.3%. Of this, the non-renewable PRODUCTION 2019 (KWH) increased by 9.4% in 2019, which consumption comprises 83.4% gas 12 000 000 is expected to be linked to the for the production of district heating decrease in oil consumption and and the remaining 16.6% consists 10 000 000 new district heating connections, of oil. as well as a general increase in

000 000 space. District cooling consumption The statistics indicate that by far the experienced a decrease of 19.9% largest source of energy consumed and is thought to be the result of a by the Olav Thon Group is electricity. 6 000 000 cooler summer in 2019. This comes as no surprise since a large number of our technical 4 000 000 Non-renewable fuels experienced a facilities are wholly or partly decrease of 8% from 2018 to 2019. powered by electricity and the Olav 2 000 000 This was predominantly caused Thon Group is a major player in by a decrease in the procurement the property industry. Some of the 0 of gas. Most the consumption electricity consumption is used to Sales district Sales district hea�ng cooling

24 * The base data, explanations and caveats are commented on in the appendix (p. 39). run heat pumps and these pumps produce several times as much Energy consump�on per category 2016-2019 thermal energy as the energy they son 2016 2017 201 2019 consume. Nor is it surprising that Consump�on non-renewable fuels 6 345 06 4 419 537 5 34 217 4 921 079 the second largest consumption Consump�on renewable fules 415 09 14 011 97 13 590 000 13 910 000 Consump�on electricity category is district heating. Many 299 991 210 320 424 001 26 229 26 271 900 594 Consump�on district hea�ng 56 632 171 63 349 314 75 65 704 2 766 343 Olav Thon Group properties are Consump�on district cooling 17 01 956 19 949 559 23 236 240 1 613 46 connected to district heating. Consump�on steam 0 0 0 0 Sales electricity 0 0 0 0 CONSUMPTION PER SQUARE Sales district hea�ng 11 121 000 10 27 000 13 17 000 10 52 000 METRE Sales coolin 10 501 000 96 000 11 347 000 9 445 000 In this year’s report, we can Sales steam 0 0 0 0 report three measurement figures Total energy consump�on 366 44 951 402 971 39 361 555 97 371 14 62 (kWh/m2) for the second time. Since this is breaking new ground consumption per square metre for to focus on employing its own in our reporting, these figures electricity and district heating, while staff. This also ensures direct and could potentially contain errors. the consumption of district cooling personal follow-up of tenants. Nevertheless, it is important to refer is decreasing per square metre. to the measurement figures as they Other reporting shows a decrease To strengthen communication are significantly better indicators of in consumption and it is therefore and sharing of expertise in the changes in performance over time. uncertain why this reporting shows operations department of Property different results. There is a suspicion Services, separate geographical Energy consumption per square that changes to the square footage regional coordinators were metre is available for electricity, available in the system may be the appointed for hotels, commercial district heating and district source of the results. It is known properties and shopping centres cooling. It has not proved that the Energinet figures include in 2019. Regional coordinators possible to calculate a figure for errors and omissions and the act as the link between their total consumption per square continual improvement of these own area and the other regions metre, so the consumption has figures could also have an impact on of the country as well as central been broken down into the the results reported here. headquarters. Separate meetings aforementioned categories. In 2019, for regional coordinators allow us to the consumption of electricity was ensure that the same information 100.3 kWh/m2, district heating was EXPECTATIONS FOR FURTHER is communicated efficiently and 30.5 kWh/m2 and district cooling WORK It is expected that the good work quickly to the entire organisation. was 6.9 kWh/m2. This means that will continue and that we will Regional coordinators have played there is an apparent increase in constantly increase our internal a key role in the work on energy expertise and awareness of saving and have achieved good ENERGY CONSUMPTION (KWH/M2) energy optimisation. We are also energy savings through targeted 120 expecting to continue exploring and systematic work with a focus on new opportunities for optimisation result assurance. 100 and we are increasingly looking at the opportunities to increase the THE OLAV THON GROUP ADOPTS 0 share of renewable (climate-neutral) NEW TECHNOLOGY 201 energy. We are striving to improve The Olav Thon Group is a major 60 2019 the reporting base, as there are player in the property sector and currently some uncertainties. is therefore an attractive partner 40 when it comes to testing out new PROPERTY SERVICES technology. The Olav Thon Group 20 A solid, dedicated operations has several such projects on the department is just as important as go at any time. Below you can find 0 constructing good buildings with examples of such projects: energy benefits. All operations have been grouped together in Fortum Oslo Varme is owned EECTRICIT Property Services in the Olav Thon by the Finnish company Fortum DISTRICT HEATINGDISTRICT COOING Group. Unlike other property actors, and there have been positive the Olav Thon Group has chosen experiences of intelligent heat

25 management in Finland. In brief, and the outside. This results in responsibility, while also benefiting the solution is about controlling unwanted draughts and, not least, from the results of the work. the so-called heating curve for an influx of cold or warm outdoor district heating based on variable air that has to be heated or cooled DISTRICT HEATING demand throughout the day rather depending on season. This is District heating is considered a than a fixed configured curve. By especially prevalent at shopping renewable thermal energy source controlling the heating levels based centres. The Olav Thon Group was and is therefore a natural first choice on the heat stored in the building the first shopping centre chain to where available. In Oslo alone, more and the weather forecasts, a more adopt new technology to stabilise than 70 properties are connected stable indoor temperature is and balance out this pressure to the district heating network. A achieved, along with lower energy imbalance. We ran pilot projects major upgrade to Storgata is under consumption. The project was at two large shopping centres, way in Oslo, a project spanning established as a pilot at three of our with extremely positive results. We several years. Pavements are being residential properties in the centre reduced draughts and saved energy. widened and, in connection with of Oslo and we have chosen to make Several tenants have reported a this work, the Olav Thon Group the solution permanent following noticeable reduction in draught has contributed to establishing the pilot. issues. district heating in the pavements to ensure safe and ice-free pavements One of the major challenges in ELECTRIC CAR CHARGING throughout winter. the energy market is to obtain As early as December 2017, the enough electrical output when Olav Thon Group entered into an SENTER SYD market players request energy agreement with the car charging As part of a larger Enova-funded at the same time. This is caused company Grønn Kontakt. The project, we have completed a by coinciding start-up times or agreement covers the delivery major upgrade to the technical when high or low temperatures and operation of charging stations installations at Senter Syd require a lot of heating or cooling at Olav Thon Group premises. Mortensrud. The background to at the same time. As an alternative The agreement is an important the project was the poor indoor to expanding major electricity contribution towards achieving climate and a need to replace the production and distribution Norway’s climate goals and fits well ventilation and cooling system networks, Statnett is seeking into the Olav Thon Group’s work and more. Such a project allows solutions to regulate subscribers’ on corporate social responsibility. for energy optimisation of the power outlets so demand can be At the end of 2019, 26 shopping systems and the results have been reduced. The Olav Thon Group centres had fully-fledged charging extremely positive, with savings participates in several pilot projects provisions and there is continuous of approximately NOK 800,000 in which the purpose is to identify development taking place to compared to previous years. By unallocated energy. Such projects ensure that the Olav Thon Group harnessing the heat from the could explore equipment that is not shopping centres form a substantial cooling units, further savings can be critical to operations, or identify part of the Norwegian charging achieved on the purchase of district other solutions for meeting energy infrastructure. heating. Senter Syd is one of several demands. By identifying such output centres with a particular energy for short periods, major investments MASTER’S THESES focus. can be saved, especially in the The Olav Thon Group’s property distribution network. Such measures stock is extremely well suited as a are rewarded in the regulatory starting point for master’s theses. energy market. Through a collaboration with a leading consultancy firm, we come Many properties suffer from major into contact with master’s students air leaks. This is due to pressure seeking suitable assignments. In differences between the inside this way, we take corporate social

26 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.

Gener 2015 2016 2017 201 2019 The Olav Thon Group’s work on a positive improvement but there is Women 51 % 52 % 53 % 53 % 54 % equality and anti-discrimination still some potential for improvement en 49 % 4 % 47 % 47 % 46 % is rooted in our diversity and among senior management. equality policy. The purpose of the policy is to promote equality In 2019 there was an increase in GENER ISTRIBUTION and ensure equal opportunities the number of managers of 9% AONG ANAGERS AN and rights for everyone, regardless compared to 2018. Broken down by 300ILE ANAGEENT of ethnicity, religion, sexual gender, there was an increase of 8% orientation, age and/or disability. in male managers and 10% in female 250 This applies to all aspects of managers. This means that more employment: recruitment, pay and female than male managers were 200 working conditions, development appointed by the Olav Thon Group opportunities, as well as termination in 2019. 150 of employment. AGE BREAKDOWN 100 GENDER BREAKDOWN The age breakdown of the Olav The Olav Thon Group has a balanced Thon Group’s employees is 50 gender breakdown and the trend balanced. 48% of employees are is towards a steadily growing in the 30-49 age group. This is 0 proportion of women. The gender a large group and spans a wide Women en breakdown among managers range of experience and skills. IDE ANAGEENT ANAGERS remains on a par with that in Besides the 30-49 age group, a previous years. large proportion of the Group’s employees are younger than 30. The proportion of female employees A large proportion of these work AGE ISTRIBUTION was higher in 2019 than in 2018. in Thon Hotels, which as a division The proportion of women in attracts many young employees. The 19 the Group is 54%. An increase hotel division also has the highest of three percentage points has number of employees, meaning that 33 been recorded since 2015. This Thon Hotels has a big impact on the demonstrates the Olav Thon Group’s Group’s gender and age statistics positive attitude towards equality. for its employees. We consider this broad age distribution to be The total proportion of female positive. 4 managers is at the same level in 2019 as in 2018. Women occupied EXPECTATIONS FOR THE FUTURE Under 30 30-49 50 and over 46% of senior positions in 2019. The work is expected to continue. There are variations in gender There are no further expectations of breakdown when differentiating major changes to the way in which between managers and senior we work on equality and inclusion at managers. The percentage of the current time. women in senior management is 44%. Amongst middle management it is 48%. This means that the proportion of women in senior management has increased by three percentage points since 2018. This is 27 AGE ISTRIBUTION PER IVISION 60

50

40

30

20

10

0 Under 30 30-49 50 and over Not stated

Thon Hotels Shoppin Centre Division H Thon y 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 COLLABORATION WITH PØBELPROSJEKTET Ringer i Vannet is a labour and NAV 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 the work all started with Thon Hotel Vettre fallen out of the labour market training for the target group in the in Asker, and has since spread to back into work at NHO member collaboration. Since 2013, 70 people other hotels and shopping centres companies. Ringer i Vannet is based have been offered work experience in the Oslo area. In 2017, the Olav on local cooperation between at our 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 for people with an immigrant ASSESSMENT AND EXPECTATIONS Thon Hotels signed a group background. The partnership is a The collaborations are working well agreement with Ringer i Vannet in win-win situation for all parties – the and we consider the results to be autumn 2017. Since then, 27 hotels candidates gain workplace training, positive. We anticipate that these have signed agreements with local language training and a network, collaborations will continue and that labour and inclusion agencies. the hotels gain contact with talented the Olav Thon Group will increase its These agreements have resulted people who can quickly move into commitment through participation in 16 confirmed appointments employment and Norwegian society in the “Vi Inkluderer” pilot project in 2019. According to Ringer i benefits from the value creation the from and including 2020. Vannet’s reports, society saves NOK individual worker contributes. 10 million every time a person is helped back into work. This means In 2019, a total of 14 candidates that, through Ringer i Vannet, Thon were offered work experience in our Hotels has already saved society hotels. Of these, four candidates NOK 230 million since the Group have gained full-time or temporary agreement was signed in 2017. jobs.

28 Employee development

As part of the Group’s work on social has a focus area – wine, beer and conditions and employee rights, spirits. This was continued in 2019 the Olav Thon Group works on and a total of 55 employees of Thon employee development. Systematic Hotels and Resthon attended two training and education are offered sessions of the elementary school. and centrally followed up by the HR department. TRAINING GRANTS In partnership with several of our TRAINING AND SKILLS suppliers, we are able to offer DEVELOPMENT financial support/grants to our staff Facilitating training and skills in Thon Hotels and Resthon, through development is important the Training Fund. The grants are for the progress of the Group for people who want to learn more and is therefore one of the HR within a specific field they are department’s most important focus working in and are enthusiastic areas. Information on training and about. This could mean a course in enrolment is published via the restaurant management, training as Group’s activity calendar in the a bartender or sommelier, or a craft training administration system. certificate. 50 different training courses were arranged by the Group in 2019, APPRENTICES in areas such as safety, food and It is becoming increasingly beverages, HSE, IT systems, service, important for the hotel industry to management and sales. A total of attract apprentices, both to support approximately 2,200 employees professionalism in the industry have participated in one or more and because the authorities are training courses. These results are introducing ever more stringent considered positive and the work requirements regarding the use continues. Training provisions are of apprentices in connection with expected to be expanded if relevant. tenders. In Thon Hotels, it is the hotels themselves that decide to In addition to training courses, a take on apprentices, although this is total of five seminars of various increasingly becoming a focus area types were also arranged in 2019. for central management. In 2019, 47 of our hotels were approved THE F&B SCHOOL apprenticeship companies and The F&B School arranged courses employed 71 apprentices training for the first time in 2016. This to be chefs, receptionists, waiters is an internal knowledge school and waitresses, pastry chefs and in focusing on food and beverages tourism. We consider these to be for the employees of Thon Hotels positive results and will continue and Resthon. The school offers focusing on the use of apprentices. multiple levels and the elementary school was launched in 2016. The elementary school is a three-day course covering the basics of being a good service associate. Every day

29 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. This work is linked to the Group’s work on employee rights.

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

30 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.

EC ORGANISATION Oter Busnesses HSE roup Uner Frer Group Conr Lnr Foo Fernre

EC EC EC EC EC Unts tout Opera�ons Hote&Rest Heurters Cra�smen Surnadal office on EC persone

Hotes t on ECs

31 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 son FTEs Sc ee 2019 comparison, the national average Amfi Group 306 3,93 % was 5.8% in 2019. Conrad Langaard 22 11,92 % Follo Fjernvarme 6 0,51 % Knowing the sick leave figures for a Headquarter1 440 5,23 % given period means we also know Hotels2 2 06 9,26 % the attendance rate for the same period. The attendance rate tells us Shopping centres3 476 4,09 % how many employees have been at Resthon AS 60 2,22 % work and is related to factors such Thon Eiendomsservice AS 6 4,9 % as a sense of belonging, loyalty, Unger Fabrikker 115 5,70 % team spirit, motivation, professional 1. Includes Thon Hotels AS/Thon Hotels Salg AS/Thon Holding AS/Time Park pride, responsibility, being able AS/Time Park Services AS/Norsk Pantelotteri AS/ Norsk Underholdningsspill AS. to use your skills, leadership, and 2. Includes all operating companies belonging to Thon Hotels AS (incl. caring for each other. Sweden, Belgium and the Netherlands) + Vettre Hotelldrift AS, Linne Hotell AS, and Hotel Bristol AS. Sick leave is always on the agenda of each WEC, with the aim of 3. Includes Olav Thon Eiendomsselskap ASA/Gardermoen Park AS/ Bergen Storsenter AS/ Lagunen AS/ Amfi konsern/ Vestkanten AS/Sartor Senterforening AS/Østerås increasing attendance in the Olav Kjøpesenter AS/Åsane Storsenter DA/Thon Ski AS/ Thon Sverige AB konsern/Thon Thon Group. The occupational Fastigheter AB konsern. 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.

32 Security

The Olav Thon Group focuses on the safety of both people and property. Digital attacks became increasingly common in 2019.

RISK ASSESSMENT THE DIGITAL THREAT EMERGENCY INCIDENTS The Olav Thon Group’s risk picture The digital threat continued to grow As a major industry player, the has not really changed in recent in 2019 and we have experienced Olav Thon Group occasionally years. This is especially true when almost weekly scam attempts in experiences incidents with varying it comes to ordinary incidents such Norway, Sweden, and Belgium. In security characteristics.The as burglary and vandalism, where addition to phishing attacks targeted Olav Thon Group experienced the number of incidents has actually at employees, we see that the theft no incidents categorised as very dropped. However, there is an of bonus points from members serious (incidents that resulted increase in the risk and likelihood of is increasing significantly. This is in a fatality) in 2019. The risk and digital crime. We occasionally also a general challenge across the threat situation in the Olav Thon experience increasing challenges industry. Group is considered to be at an associated with nuisance issues at acceptable level, which has not shopping centres in city centres. EMERGENCY PREPAREDNESS changed significantly since 2018. DRILLS Nevertheless, we still experienced ANTI-CORRUPTION The Olav Thon Group has a central several serious incidents of various As part of the Group’s work on emergency response team that natures at our properties in 2019: security, we systematically work on manages incidents when our anti-corruption. We offer training operating units need assistance. - Threats made against shopping courses in how to detect and The emergency response team centres via social media handle embezzlement, the Security conducted four emergency - Fall accidents on stairs, Manager reviews the annual preparedness drills in 2019, as escalators and moving walkways financial statements together with well as several meetings to discuss (some fracture injuries) the auditor each year, we have clear actual incidents. The focus has - One rape procedures in place for cash sales been on reviewing actual incidents/ - Five natural deaths at our and we conduct annual inspections cases to learn to become better. hotels on how cash and card sales are The Executive Management Team - One suicide attempt carried out. has also reviewed the incidents - Minor fires concerned with a focus on their - Attempted fraud targeted at the Experience indicates that the responsibilities in connection with Olav Thon Foundation majority of those who are found to serious incidents. The majority of - Misuse of Group CEO Olav commit embezzlement (excluding shopping centres and hotels have Thon’s name in an attempted cash sales) are randomly discovered. conducted their own training. The fraud Notification of inappropriate Olav Thon Group’s Security Manager - Misuse of the Group name and circumstances is therefore a key has also participated in several of logo in an attempted fraud element in exposing this type of these training sessions. - Flooding crime. However, embezzlement - Violent demonstrations in in connection with cash sales is Brussels predominantly discovered through inspections and monitoring, emphasising the importance of clear procedures and the management of these.

33 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 procurement is SUPPLY CHAIN CONTROL the supplier chain. We anticipate part of the Olav Thon Group’s In 2017, the Purchasing department adapting the 2020 survey to the work to safeguard human rights, carried out a project together with new code of conduct and the employee rights, social conditions, the sustainability advisor aimed survey will be issued to around 100 the external environment and to at improving our control of the suppliers. combat corruption. The Group supply chain with regard to ethical integrates these considerations purchasing. The Olav Thon Group SUSTAINABLE FOOD through a procurement policy and has a code of conduct and the The Group is increasingly focusing thorough procedures for supplier project worked to identify and on sustainable food. The key selection that include assessing assess the need to monitor risk concepts are quality, safety and eco- numerous aspects of corporate more closely. As a control measure, friendly food. social responsibility that are a form was produced for further relevant within each category. We checks of suppliers within the The Olav Thon Group’s central also have our own code of conduct purchasing categories that were Purchasing Department, on behalf requirements that impose strict considered to be most risky. The of our hotels and other catering requirements on all suppliers and suppliers’ responses were used to outlets, is constantly on the lookout subcontractors, including their focus follow up relevant points. for good ingredients in collaboration on and continuous work with human with our suppliers. The Group rights, working conditions, the After having followed up this work in focuses heavily on quality at all environment and anti-corruption. 2018, a need to systemise the work stages, from buying to serving. Our We follow up on these requirements even further has been identified. An food and beverage managers run through an annual supplier survey. agreement was therefore entered regular training courses for chefs into with Factlines in 2019 regarding and encourage the maximum use of NEW SUPPLIER CODE OF CONDUCT broader and more systematic fresh, unprocessed products. In 2019, the Olav Thon Group monitoring of the supply chain. An prepared a new code of conduct audit of the supply chain based on a We are proud of our partnership for suppliers. The new code of risk assessment was conducted for with good Norwegian suppliers. We conduct is based on Ethical Trade the first time in Q2 2019. only buy food that can be traced Norway’s code of conduct template This survey was adapted to the back through the suppliers, so and references a substantial Olav Thon Group’s Supplier Code we know where the food comes proportion of ILO conventions on of Conduct and the outcome from. We are concerned with good the following topics: forced labour/ shows that 93% of suppliers have internal control and are regularly slave labour, trade unionism and adopted strategies for sustainability/ visited by supervisory authorities, collective bargaining, child labour, corporate social responsibility, 90% which helps ensure a safe and clean discrimination, abusive behaviour, have an overview of their supplier environment for food preparation. HSE, pay, working hours, decent chain and 87% state that they have work, marginalised populations, the a system or procedures in place to Thon Hotels has a policy whereby environment, corruption and animal follow up on their supplier chains. all hotels must seek to increase the welfare. The new code of conduct number of organic products every was adopted at the end of 2019 and We consider these results to be year. In 2019, we assumed it would is continuously introduced in new positive and as a Group we have be possible to offer a minimum of agreements. faith in our suppliers adhering to 15 organic products at each hotel. our code of conduct. At the same Our hotels also focus on local food time, it is important to continue in the form of home-cooked dishes. working on these areas. The Olav A steadily increasing number of Thon Group will continue to carry products are produced locally in the out annual, risk-based surveys of hotels.

34

General disclosures

The Olav Thon Group’s general disclosures are provided below. They are based the on a 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 104-4 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 34 102-10 Significant changes to the organisation and its supply chain No relevant significant changes 102-11 Precautionary Principle or approach Page 30 102-12 External initiatives Pages 7-8, 14 and 16 102-13 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 102-41 Collective bargaining agreements Page 14 102-42 Identifying and selecting stakeholders Around 70% 102-43 Approach to stakeholder engagement Page 14 102-44 Key topics and concerns raised Page 14 Page 14 REPORTING PRACTICE 102-45 Entities included in the consolidated financial statements or equivalent documents 102-46 Defining report content and topic boundaries www.olavthon.no 102-47 List of material topics Page 14 102-48 Restatements of information Pages 14-15 and 16 102-49 Significant changes from previous reporting periods in terms of Page 39-40 scope and boundaries Page 14 102-50 Reporting period Page 14 102-51 Date of most recent report Page 14 102-52 Reporting cycle Page 14 102-53 Contact point for questions regarding the report Page 42 102-54 Claims of reporting in accordance with the GRI Standards Page 14 102-55 GRI content index Page 35-36 102-56 External assurance The report is not audited by an external party 36 GRI Index

The Olav Thon Group’s sustainability report for 2019 has been produced in accordance with the 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 19 GRI 103 Management approach Page 14, 16, 19

ENVIRONMENT GRI 302-1 Energy consumption within the organisation Page 24-26 GRI 306-3 Waste overview Page 21-23 GRI 307-1 Non-compliance with environmental laws and regulations No instances GRI 103 Management approach Page 14, 16, 20-26

SOCIAL EFFECTS LABOUR PRACTICES AND DECENT WORK GRI 403-1 Working environment committee Page 31 GRI 404-1 Education, training and counselling Page 29 GRI 405-1 Gender and age breakdown Page 27-28 GRI 103 Management approach Page 14, 16, 27-33

HUMAN RIGHTS GRI 406-1 Incidents of discrimination No known instances GRI 407-1 Monitoring of suppliers (organisational freedom) Page 34 GRI 408-1 Monitoring of suppliers (abolishing child labour) Page 34 GRI 103 Management approach Pages 12, 14, 31

37 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 ten basic principles into its strategy and day-to-day operations. The next letter confirms that the Olav Thon Group continues to be a Signatory of the UN Global Compact and that the Group’s work will be summarised in an annual report (Communication on Progress).

38 39 Appendices

The appendix provides supplementary information about various elements of this year’s Sustainability Report. FINANCIAL FIGURES of the Pantelotteri help contribute were obtained via customer portals. The Olav Thon Group now reports to a steady stream of revenue It is therefore possible that the in accordance with IFRS, which for the Norwegian Red Cross. incorrect use of a portal could affects some of the reported figures There are no commercial interests represent a source of errors for concerning the Group’s financial associated with the transfer of waste figures, although none had contribution to society. these values to the Norwegian Red been identified at the time the Cross. Transfer to the Norwegian report was published. The 2018 figures in the table Red Cross is therefore included in showing an overview of the Group’s this year’s reporting of investments All of the figures for waste were income and expenditure have been in society. This has also been obtained for the full calendar updated in accordance with IFRS. adjusted in the 2018 figures. In year 2019. The sorting rate was This means that these figures have 2019, NOK 84 million were invested calculated on the basis of the waste been modified slightly compared in society, distributed as follows: volume and is not an average of the to last year’s report. The primary NOK 21.3 million was invested in various sorting rates per division/ purpose of this is to improve local communities in connection location. This is to ensure that the comparability between 2018 and with construction projects, NOK Group’s sorting rate represents 2019. 62.7 million was transferred to the the actual sorting rate. The Norwegian Red Cross. specified sorting rates per division The reported figures are distributed are calculated in the same way, as follows: The Olav Thon Foundation’s although with the collation of the contributions to scientific research figures for the locations included in 1. Income: Compilation of the and non-profit causes can be the division. Olav Thon Group’s total linked to the Group’s activities, as operating income. the contributions are taken from The overview of the waste 2. Operating expenses: Other the Olav Thon Group’s profits. management (material recovery, operating expenses, product These figures have therefore energy recovery, etc.) was obtained costs for residential properties. been accounted for in the chapter from Retura and only covers 3. Employee wages and on finances, but have not been waste managed by Retura. This benefits: Wages and benefits included in the calculation of the represented the majority of waste to employees, as well as Group’s investments in society, in 2019. employer’s national insurance as the reporting covers only the contributions. activities of the Olav Thon Group There are some uncertainties 4. Payments to providers and not the Olav Thon Foundation. associated with the figures for Thon of capital: Provisions for Hotels in Benelux. Among other dividends/dividends paid and BASE DATA FOR WASTE things, there has been inadequate interest expenses. The base data for waste was data collection as a result of the 5. Payments to authorities: Tax obtained from our waste COVID-19 situation. payable, corrections to taxes for management suppliers. This means previous years and property tax. that the figures were primarily BASE DATA FOR ENERGY 6. Investments in society: see obtained from Retura, Norsk The figures reported account for the explanation below. Gjenvinning and Stena Recycling. Olav Thon Group’s overall activities Since the Olav Thon Group changed in Norway, including the Group’s After once more reassessing its main supplier of waste services own district heating company, Follo GRI 201, we have concluded that in 2018, the figures are a collation Fjernvarme. “Investments in society” covers of the services provided by both more of our business than was Retura and Norsk Gjenvinning in a Explanation of the base data previously reported. This applies Norwegian context. The figures from for the various types of energy to Norsk Pantelotteri AS and its Retura were obtained via a contact consumption: financial contributions to the person, while the figures from Stena Norwegian Red Cross. The activities Recycling and Norsk Gjenvinning 1. Non-renewable fuels: The

40 consumption comprises the the Purchasing Department. sum of Follo Fjernvarme’s 9. Sales of district heating: The age statistics provide an purchases of oil and gas (and 10. Registered sales obtained from anonymous overview of the ages of others), and the consumption Follo Fjernvarme. employees from all of the sources. of fuels, obtained from the 11. Sales of cooling: These have been collated per Olav Thon Group’s Purchasing 12. Registered sales obtained from division and totalled. Age statistics Department. The figures from Follo Fjernvarme. for Thon Hotels in Benelux are the Follo Fjernvarme are considered same as in 2018 as the COVID-19 precise, but the figures from The goal is to use statistics from situation has made it difficult the Purchasing Department Energinet. At the moment, only to obtain the data prior to the represent a summary of the the consumption figures for district publication of this report. invoiced costs from typical fuel heating and district cooling can suppliers. Fuel consumption is be read in Energinet, albeit with a The gender statistics were obtained calculated by dividing the total supplement for district heating from at an overarching level from the invoiced sum by the average Follo Fjernvarme. The numbers are Olav Thon Group’s HR system cost per litre of fuel. Energy still subject to some uncertainty. in Norway. 85% of the Group’s consumption is calculated employees are employed in Norway using a factor of 9 kWh/L and In order to see the trend for specific and are registered in the HR system. an efficiency rate of 45. Follo consumption (kWh/ m2), we need a Fjernvarme uses gas for peak link between consumptions figures The gender breakdown of loads as needed. and space. As of today, the only managers was obtained from the 2. Renewable fuels: place this exists is in Energinet. Olav Thon Group’s payroll system 3. The consumption comprises Energinet contains electricity, in Norway. The system is able Follo Fjernvarme use of pellets district heating and district cooling. to differentiate between senior (biomass) and is considered This specifies the heated area, managers and middle managers. precise. which means the area inclusive of The number of these per gender 4. Electricity consumption: tenants, while the consumption has been collated so that simple 5. The consumption comprises figures are stated exclusive of percentage calculations of the the sum of Follo Fjernvarme’s tenants. The figures will therefore gender breakdown can be made purchases of electricity and not be correct. It would be best if for the categories senior manager the electricity suppliers’ we could compare consumption and middle manager, as well as the stated deliveries to the Olav in shared facilities against our overall picture. Thon Group. Control numbers areas of the shared facilities, but from Energinet indicate a we do not have these area figures slightly smaller volume. This available. However, using the is primarily due to the fact suppliers’ figures for shared facilities that some properties are and areas from Energinet, we are not registered in Energinet. able to obtain a figure we can use Energinet is a digital solution for for comparisons. However, we continuously monitoring and are aware that the area figures in reporting energy consumption. Energinet are imprecise and not up Consumption is automatically to date. This affects the calculation recorded via electricity meters of consumption per square metre. in the properties. 6. District heating consumption: GENDER AND AGE 7. The consumption comprises Sources: the total consumption recorded in Energinet as well as Follo • The Olav Thon Group’s HR Fjernvarme’s district heating system (Norway) consumption. Control numbers • The Olav Thon Group’s payroll have not been obtained from system (Norway) the Purchasing department. • Thon Hotels’ HR system 8. District cooling consumption: (Benelux) The consumption is the • Thon Hotels AB’s HR system registered consumption in (Sweden) Energinet. Control numbers • Thon Property AB’s HR system have not been obtained from (Sweden) THE OLAV THON GROUP Stenersgata 2A Postboks 489 Sentrum | 0105 Oslo Telephone +47 23 08 00 00 [email protected] | olavthon.no