CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts

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CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
CORPORATE SUSTAINABILITY
      REPORT 2019
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
01 About this Report
                 02 Message of the General

Table of            Manager
                 03 About SUN Resorts
                 04 About Sugar Beach Hotel

Conten
                 05 Our Management
                    Approached to
                    Sustainability
                             i. Business Ethics

ts
                            ii. Environment
                           iii. Community

Sustainability
report
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
About this report

Sugar Beach’ Sustainability Report is for the Financial Year (FY) July 2018 to June 2019. This report should be read together
with the Sun Annual Report 2019, available online for download.
Forward looking statements
This report contains forward-looking statements and undue reliance should not be placed upon them. Such forward-
looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance
and financial results in future periods to differ from any projections of future performance.

Reporting Standards and Assurances
The content of this report has been defined in accordance with the UN Global Compact Principles, and the GRI principles
of materiality to cover topics that reflect the organisation’s significant economic, environmental and social impacts, or
that substantially influence the assessments and decisions of stakeholders. This report conforms to the “comply or explain”
provisions of UN Global Compact, CEO Water Mandate, and the Stock Exchange of Mauritius Sustainability Index (SEMSI).
Our sustainability initiatives are audited by both Earth Check and Travel Life, based on a 2017 benchmark created by
these same entities. In line with our ‘business ethics’ principles, this Sustainability report stays true to these internal auditing
reports.

SUN Resorts welcomes your feedback. Our stakeholder views and opinions are important to us. Please share your views
with us email: suncare@sunresorts.mu
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
Message from our General
Manager

It has been an exciting year for Sugar Beach hotel in terms hotel renovation and we have
stepped up our efforts to operate in a responsible manner that demonstrates our desire to
create a sustainable timeless memories.

Being a responsible corporate citizen and contributing to local communities have been
core tenets of our business throughout SUN Resort’s history. Our Group is committed to
sustainability and this year’s Annual Sustainability Report marked an important milestone
outlining our approach to identify and proactively manage sustainability issues and risks in
a meaningful way.

While we continue to implement our sustainability approach in line with business objectives, we also recognise how important our
stakeholders are to the way we conduct business in the communities where we operate. In 2017, we began to implement our
sustainability strategy and I am pleased to share our progress results in this Report and our plans to expand our sustainability
initiatives and further enhance our performance.

We have a strong future ahead of us, a committed team aligned around our core cultural beliefs, and an infallible spirit to make
every moment a Timeless memories. Everyone at Sugar Beach Hotel is committed to moving our company forward with regards to
how we care for our people, our communities and our planet.

Thank you for supporting us in making every moment memorable and sustainable.

Mr Nicolas DE CHALAIN
General Manager
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
Executive Summary

Sugar Beach has made a positive economic, environmental
and social impact while achieving a notable improvement of
our key performance indicators: The management system of
Sugar Beach is certified for
  • Quality Management (ISO 9001)
                                                                                 Consistent
  • Food Safety (ISO 22000)                                                    improvement
  • Travel Life Gold                                                               guest
                                                                                satisfaction
  • EarthCheck Certification

                                            -23%
                                            CO2 Emission
      -18%
        Energy                                                Progress
      Consumption             Progress                       2017 vs. 2019
                            2017 vs. 2019

                                                                 201
                                201

                        92%                                                  +35%
                                                                                 Staff
                     Guest Satisfaction
                                                                             engagement
                                                                                rate
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
About SUN

Sun Limited is the owner of seven resorts in Mauritius and
Maldives. Five are managed directly by Sun Resorts and
two by recognised international brands: Shangri-La’s Le
Touessrok Resort & Spa and Four Seasons Resort
Mauritius at Anahita
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
About Sugar Beach

                    On the Western Coast of
                    Mauritius, Sugar Beach resort
                    faces the turquoise, crystalline
                    waters of Flic-en-Flac lagoon.
                    This contemporary, plantation-
                    style property, vestige of a
                    colonial    mansion,      offers
                    magnificent views of the
                    sunset over the ocean.

                      • Environmental
                        Champion for: LPG
                        consumption: 40417 kg
                      • Sun Excellence Award
                        for Best people
                        Management Award
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
Membership
                                                                  THE STOCK EXCHANGE OF MAURITIUS
     UN GLOBAL COMPACT                                            SUSTAINABILITY INDEX (SEMSI INDEX)
     Sun has been UN Global Compact signatory member
                                                                  Sun Limited joins the SEM Sustainability Index (SEMSI) on
     since 2017.
                                                                  July 2018
     For the 2 years, SUN has been a Founding Member of UN
                                                                  Promoting sustainability, good governance and
     Global Compact Local Network Mauritius promoting UN
                                                                  transparent business practices Launched by the SEM in
     Global Compact and assisting companies who want to
                                                                  September 2015, SEMSI tracks the price-performance of
     do business responsibly to align their strategies and
                                                                  those companies listed on the Official Market or the
     operations with Ten Principles on human rights, labor, the
                                                                  Development & Enterprise Market which demonstrate
     environment, and anti-corruption. Signatories take
                                                                  strong sustainability practices.
     strategic actions to advance broader societal goals,
     such as the UN Sustainable Development Goals, with an
                                                                  SEMSI provides a robust measure of listed companies
     emphasis on collaboration and innovation.
                                                                  against a set of internationally aligned and locally
     The Compact is the world’s largest voluntary corporate       relevant environmental, social and governance (ESG)
     sustainability initiative.                                   criteria. It offers a useful tool for domestic and
                                                                  international investors with an appetite for responsible
                                                                  investment in frontier markets.

     UN CEO WATER MANDATE                                         THE CODE
     Sun was the first hospitality company in Mauritius to        The Code (short for “The Code of Conduct for the
     endorse the UN CEO Water Mandate in 2018. The UN             Protection of Children from Sexual Exploitation in Travel
     CEO Water Mandate is a UN Global Compact Action              and Tourism”) is a multi-stakeholder initiative with the
     Platform which mobilizes business leaders on water,          mission to provide awareness, tools and support to the
     sanitation, and the UN Sustainable Development Goals.        tourism industry to prevent the sexual exploitation of
                                                                  children.
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
Third Party Certifications
 Inorder to ensure Sugar Beach “walk the talk” our sustainability commitments extend to overall hotel
 operations through the partnership with EarthCheck, Travel Life Gold and The Stock Exchange of
 Mauritius Sustainability Index. Each of the certification provide the best sustainability management
 system to be use by the industry with key performance areas in good governance, greenhouse gas
 emission, energy efficiency , waste management, social and cultural issues.
                                                     By embracing EarthCheck and Travel life Certification which
TRAVEL LIFE CERTIFICAITON                            are widely used by the travel and tourism industry for
                                                     benchmarking and certification in our hotel operations, an
Travelife is an internationally recognised
                                                     environmental risk assessment is being conducted by the hotel
accommodation sustainability programme. In
                                                     to investigate and assess all know/ potential risk that may cause
over 50 countries with around 1,500 members
                                                     ecological and social harm. Monitoring of performance against
who use its practical tools and resources to         policy, benchmarking indicators against baseline and best
                                                                                                                         EARTHCHECK CERTIFICATION
improve their business's environmental, financial    practices performance is made.
and social impact.
                                                     Setting improvement targets at each of our hotel through self-
                                                     assessment ensure results are assessed and verified by third        EarthCheck is the world’s leading
                                                     party on an annual basis.                                           scientific benchmarking,
                                                    Our effort in minimising environmental impact of hotel operation     certification and advisory group
                                                    will continue and we are committed to be the first hotel for         for travel and tourism.
                                                    EarthCheck Gold Certification in Mauritius.
                                                                                                                         Sugar Beach started its
                                                                                                                         benchmarking in 2015 and in
                                                                                                                         2018, Sun was the first hotel
                                                                                                                         group in Mauritius to be silver
                                                                                                                         certified.
CORPORATE SUSTAINABILITY REPORT 2019 - Sun Resorts
OUR MANAGEMENT
APPROACH TO
SUSTAINABILITY
Sustainability Policy

  Sun Group through its SUNCARE Programs strongly believes that “caring for the people
  and the planet” is not only a company responsibility but also a condition for long term
  business success. Sun Group is committed to pursuing a triple-bottom line approach of
  environmental, social and financial responsibilities by finding innovative ways to do more
  with less.

  As a responsible operator, we are committed to adhering to our legal obligations,
  sustained environmental protection, social responsibility, health and safety and conduct
  that reflect highest ethical values through continual improvement by ways of annual
  benchmarking assessment.

  We are committed to

     •
     •
         Conserve natural resources and enhancing resources for future generation.
         Protect ecosystem biodiversity.                                                            We are committed to
     •   Drive sustainable development.

                                                                                                    improve and reduce
     •   Minimise pollution, reduce waste and the consumption of Group resources.
     •   Report on key environmental, social and financial performance indicators through
         our Balance Scorecard.

                                                                                                    our impact upon the
     •   Raise environmental awareness among our associates, suppliers, guests and
         communities.
     •   Provide resources, training, equipment and other support to enable fulfilment of
         this policy
     •   Review our performance and the effectiveness of Sun Group Environmental and
         Social Policy periodically to enable us to determine our next steps forward
                                                                                                    environment
  Special consideration will be given to employing and empowering local employees, and
  wherever possible sustainable products and services will be sourced locally in
  accordance with fair trade principles.

  We encourage our stakeholders to align with our commitment to environmental and social sustainability.
……………........................
 Sustainability
   Mr Nicolas DE CHALAIN Governance
   General Manager

To fully embed sustainability in our strategy, SUN has established the Sun Resorts Sustainability
Committee, which reports to the Board of Directors. The committee is led by SUN’s CEO
Francois Eynaud, and comprises of executive committee members, who meet at least three
times a year. The SUNCARE Sustainability Committee’s mission is to

       (1) ensure the integrity of our core values,
       (2) set the direction of the Group’s sustainability policy and strategy, and
       (3) measure the impact of our sustainability initiatives on our business, planet and
       people.

Our hotels have an amount of freedom and independence with regards to what topics and
projects they wish to put in place, so long as they are aligned with the reporting lines and
strategies established.

In order to coordinate this, each of our business units have their own sub-committees, chaired
by their General Manager (GM). Their role is to coordinate actions within their hotel, review
how sustainable practices can be integrated into their day-to-day operations and monitor
progress towards their commitments.

At the operational level, the SHEQ’s role is to monitor the sustainability initiatives within the
operations. The SHEQ team also holds forums with operatives in order to ensure that all
personnel are involved in sustainability and can bring their ideas for improvement.
SUNCARE as a Strategy

 Promoting business excellence and                                                     Employing best practices and acting
  good corporate governance and                                                         responsibly in sustaining the natural
   maintaining the highest ethical                                                     environment today and in the future.
standards in our relationships with our
            stakeholders.

                                          Empowering the communities within which we
                                           operate by supporting their intellectual
                                          growth & development, health and well-
                                                           being.
Our strategic journey from 2015 to 2019

The SUNCARE pillars are based on the three intertwining sustainability themes ‘society, environment, economics’, in alignment with the United
Nations Global Compact (UNGC) 10 Principles and the Sustainable Development Goals (SDGs). Our current management approach is aimed at
improving on our first benchmark by Earth Check in 2015, through responsible action and continuous contribution to the development of our
business, planet and people. In order to measure progress, each hotel’s GM keeps a balance scorecard system, shared with and monitored by
the CEO.

Our 5-year journey in considering the impact of our processes has taken us through:

    1. Selecting the labels that could measure our progress while maintaining industry standards
    2. Benchmarking the key performance indicators that allow us to measure how we
       use resources and how we could consider optimising the use of these resources.
    3. Piloting processes that allow us to optimise our use of resources in order to
       mitigate our environmental impacts and replicating the model once the pilot
       proves successful.
    4. Creating community activities that allow our stakeholders to experience our
       initiatives as well as increase our local impact and outreach.
To ensure the continuous improvement of our methods, we are currently reviewing our
processes and renewing our goals to contribute to a world of sustainability while
maintaining industry standards of luxury experiences. We aim to further consolidate and
streamline our approach by creating specific strategic objectives and targets, with a
Group-wise dashboard to measure and monitor our KPIs more closely. We also plan on
holding further stakeholder focus groups in order to better understand their needs and expectations, in order to update out Materiality Matters,
   Our Commitment
    which help determine our strategic objectives and targets.

    We believed our action and result must support our words and commitments for creating
    meaningful / sustainable timeless memories.
                We believed                             We have achieved                                                   We are committed ( 2020-
                                                                                                                           2021)
Business        •   Stakeholders should be kept         •   Provide information through our annual report and              •   Seek feedback on our SUNCARE
                    aware of our sustainability             communicate constantly with our stakeholders via press             programme via our guest satisfactory
Ethics              program and performance                 release                                                            survey
                •   Suppliers and contractors should    •   First sustainability report 2019                               •   Yearly innovation award
                    meet our standard on supplier       •   All our top suppliers have sign our supplier code of
                    code of conduct                         conduct
                •   Promoting business excellence       •   Setting up a sustainability committee for all sustainability
                    good corporate governance               strategy
                •   Healthy, motivating working         •   Have health, safety and environmental policies and
                    conditions, job security, fair          management systems at every hotel.
                    treatment of team member            •   Monitor injury rates across the group
                •   Reduce operating costs, increase    •   Offer management training programmes for talented
                    efficiency through innovations          team members
                                                        •   Remunerate team members
                                                        •   First Innovation Award 2019
Environment     •   Understanding our impact on the     •   Report a standard set of indicators from each Business         •   Have all hotels re-certified to
                    environment and improving our           Unit on a monthly and annual basis                                 EarthCheck Certifications
                    performance                         •   All business unit adhered to EarthCheck, Travel Life and       •   Set targets on energy & CO2
                •   Compliance to environmental             SEMSI standard.                                                •   Roll-out a SUNCARE guest experience
                    standard and law                    •   Implementation of SUNCARE initiative in all business unit          programme to hotels
                •   Sustainable use of resources        •   Member of UN Global Compact and CEO Water                      •   Sustainable meeting facilities
                                                            Mandate                                                        •   Establish a waste management
                                                        •   Banned plastic straws                                              framework
                                                                                                                           •   Reduce plastic footprint in our room
Community       •   Giving back to the community is     •   Each of our business unit have adopted a local                 •   Continue to support our local
                    part of our culture and corporate       community in the area of operation                                 community and sun children cancer
                    responsibility.                                                                                            fund project over the coming years
•   Partnering with companies and        •   Encourage guest and team members to donate to good        •   Creating share value for the
                NGOs to catalyse share value             cause ( launch of SUNCARE Voluntary contribution)             community
                initiatives in addressing social     •   Partners with more than 100 companies for the SUNCARE
                issues                                   Charity golf event
                ( Golf Event, Sun Children Cancer
                Fund)

Stakeholder Management

We define stakeholders as being entities or individuals that can reasonably be expected to be significantly affected by the Hotel’s activities and
services, and whose actions can reasonably be expected to affect the ability of SUN to successfully implement its strategies and achieve its
objectives.

Engaging and responding to our stakeholder’s expectations is key to our good governance. In order to ensure that our management approach
and Materiality Matters are aligned with our stakeholders, we have open lines of communication with our various stakeholder groups. This allows
us to understand and navigate constantly shifting concerns and expectations and provides direction for the improvement of our business in the
short and long term.

Specifically, this year we conducted two focus group discussions at the Ambre and Sugar Beach hotels where we held discussions. At Ambre we
approached the community’s needs and expectations of the Hotel industry, while at Sugar Beach open discussions were held to raise
awareness and sensitise fishermen on the importance of the Marine Park Project and the value of preserving healthy corals. Further discussions
with our business partners and suppliers are planned for 2020.

 Stakeholder Expectations                                   Policy                                 How & when we communicate

 s
Employees     •   Regular, timely communication;           We educate and facilitate for our             •    Organising routine meetings.
              •   Fair wages and labour practices;         employees to make a conscious                 •    Intranet
              •   Training & development opportunities;    decision in favour of environmental,          •    Organising Sustainability Champions meetings
              •   Performance incentives;                  ethical and social issues in their private         quarterly.
                                                           and work lives.                               •    Organising Sustainability committees quarterly.
Guests        • Excellent customer service;                We inform and make it easy for our            •    Open face-to-face communication lines at all times.
              • Transparent communication regarding        guests to participate in Responsible          •    Communicating through SUN’s website.
                initiatives taken by the Group;            Business related activities at our hotels.    •    Making use of the online survey tool to analyse
              • Fair and ethical dealings;                                                                    customer feedback and implement corrective &
              • Sustainable practices and services.                                                           preventive actions accordingly.
              • Eco-friendly activities                                                                  •    Releasing of reports
Shareholde    •   Profitability and continuity;            We provide shareholders and investors         •    Releasing an Annual Monitoring Report.
              •   Accurate performance reports;            with timely, accurate and transparent         •    Having Sustainability initiatives regrouped in an
rs            •   Good governance                          information on Responsible Business                Information Booklet.
              •   A clearly defined sustainability         related risks and opportunities.              •    Releasing a corporate magazine quarterly.
                  approach.                                                                              •    Communicating through SUN’s website.
Authorities   •   Ethical business practices and           We abide by local and international
                  compliance with the law;                 legislation, especially regarding labour      • Annual reports
              •   Fair labour practices;                   laws, Health and Safety, human rights         • Ad-hoc and as needed meetings
              •   CSR contribution;                        and the environment.
              •   A clearly defined sustainability
                  approach;
              •   The upholding of the Mauritian Tourism
                  standards.
Communiti     •   On-going commitment to make a            Sponsoring local communities.                 • Constant communication through our partner NGOs
                  positive impact on the communities       Donating to certain specific initiatives.
es                within which the Group operates.         Establishing the SUN Children Cancer
              •   Transparency and involvement in          Trust Fund.
                  decisions taken.                         Investing socially.
              •   Protection of the eco-system services    Organising yearly community events.
                  upon which they depend on
              •   A clearly defined sustainability
                  approach.
              •   Funding and sponsorship.
Suppliers     •   Creating fair and mutually beneficial    We strive to purchase products that               • Regular communication and meeting.
                  partnership to attain shared goals;      have a reduced environmental impact               • Supplier code questionnaire and communication
              •   Fair business practices                  during their lifecycle, from suppliers that
                                                           demonstrate environmental and social
                                                           responsibility
Environmen       • Protection and prevention of harm       We do our utmost to continuously       -
                  • Respectful attitudes and promotion of   improve our performance in the areas
 t                  good practice                           of energy, water, chemicals and
                                                            resource consumption, and waste
                                                            generation in order to reduce our
                                                            negative impact on the environment.

Material Matters up to 2019

In this section, we report on the matters that have been material to our strategy
from 2015 to 2019 (our new materiality matrix for 2020 can be found in the last
chapter on page X).

The identification of our Materiality Matters has largely been defined by the
international standards we wish to adhere to, and our certification bodies. Whilst
we have considered our extensive understanding of our stakeholders, local
context, and risks, we have chosen to first and foremost ensure that we meet the
necessary conditions and KPIs set by our sustainability auditors. The ‘map’ below
shows what our focus has been in the last 4 years, and their strategic importance
for SUN.
Pillar            Indicator

Business ethics   Good governance & compliance
                  Sustainability leadership
                  Sustainability audits
                  Diversity and inclusion
                  employee skills & development
                  Localism & guest involvement
                  Responsible sourcing
Environment       The plastic problem
                  Energy efficiency
                  Water management
                  Waste management
                  Protection of ecosystems
Community         Health and safety
                  Education
                  Host community support
                  Human rights in the hospitality industry
                  Healthy Food production
Business Ethics
Promoting business excellence and good corporate governance,
and maintaining the highest ethical standards, to maximise the
value we create for all our stakeholders.
Code of Ethics

 PROTECTING OUR PEOPLE, POLICIES AND BRAND

 In 2017 we launched our code of ethics that supports equal opportunities and the human
 rights of our colleagues, affirming our commitment to uphold high moral and ethical
 standards. Upon joining Sun, each team member is requested to sign the code of ethics
 and undergoes training. It’s essential that our people have a voice and feel empowered
 to speak up. We have put in place a number of tools to encourage this. Our ethics
 Committee service is managed by an independent company, which allows colleagues to
 anonymously report any concerns they may have and any concerns raised are rigorously
 investigated

 Policies to support employee wellness and health:

        - ensure that health and safety is a core objective of hotel managers
        - promote the well-being of guests and team members
        - assess health and safety risks at each location
        - operate a health and safety audit programme
        - join appropriate health and safety initiatives and groups,
        - investigate all complaints and noncompliance and act on our findings
        - provide team members with the necessary training and personal protective
        equipment to safely do their
                                                                               Job
69.23 %
30.77 %
Training hours
              for leadership
              development &
              technical
              capacity

                                     FY 17/18    FY 18/19

% of Employee having signed a code     N/A          47%
of ethics
% of Employee trained on ethics        N/A          24%

% of grievance solved                  85%          87%

Training hours for leadership          N/A      539 hrs (Marc
development & technical capacity                   Antoine
                                                  Tschopp)
No of employees engaged in the          22           22
innovation programme
% of women at Management and           33%          33 %
board level
No of young employed trained ( YEP      2            2
Programme)
Food Safety

              FOOD SAFETY

              Sun takes full responsibility for food safety and has taken
              every possible measure by maintaining ISO 22000 Food

upply chain   Safety standards in all hotel in 2019. The ISO 22000
              certification scheme compiles the highest existing
              standards in the service industry, with specific risk
              assessments at each location followed by control
              measures and strict reporting.

              Food safety is a very challenging and sensitive issue for a
              hotel company – especially when it operates on a global
              scale. To ensure food safety standards are continuously
              met, the group maintains a centrally managed
              management system and conducts regular internal and
              annual external audits.

              Our Commitment

              Ensure no endangered species in our F&B offerings
Health & Safety
  GUESTS AND COLLEAGUES HEALTH, SAFETY AND SECURITY

   The health, safety and security of our guests are our top priorities. All Sun properties systematically
  identify, assess and minimise risks according to the Health and Safety Management scheme of the
  country. Colleagues receive regular training in first aid and fire safety upon joining the company, and
  Sun investigates and records all incidents using a central tool, sharing the lessons learned with other
  upply chain
  hotels where appropriate.

                                 Target to be OHSAS 18001 certified.

                       136       PROGRESS: The number of work-related injury cases has decreased by 19% in
                        0        the past three years.
            832

     Lost time Injury

           FY 17/18   FY 18/19

                                                Sugar Beach holds its annual SUNCARE Week for its staff
                                                comprising programmes and initiatives designed to
                                                encourage healthy living including blood donation and
                                                health check-up.
 Safety
  Data
for 2019
Supply Chain
Our Supply Chain Code of Conduct is aligned with international standards such
as the United Nations Global Compact, the UN Universal Declaration of Human
Rights, the Conventions of the International Labour Organisation and, data
privacy and confidentiality.

SUN has also recently created a Central Procurement Company, “Supply Chain
Experts Ltd” to consolidate volume items, Source, Contract and import required
products and services across all the business units. This organisational model
facilitates the implementation of the Sustainable procurement objectives at the
upply chain
onset.

At SUN we have an important and sizable F&B department. Catering for
hundreds of rooms, all year long, in our four to five stars hotels is an art form! We
are conscious of the impact unsustainable sourcing of products and produce
can have in this industry.

We are committed

   •   Support Local Community projects
o   Increase % of fruits source locally Increase % of food / sea food source
               regionally
   •   Introduce bio classify wine for AI
   •   Source a locally manufacture furniture & fittings
   •   % of bio chemical
   •   Energy Efficiency rating on all electrical goods
   •   Reduce plastic footprint in our room ( Supply Chain Reverse Engineering)

Ambition

       Reduce our carbon foot print on deliveries
Environment
Employing best practices and acting responsibly in sustaining the
natural environment today and in the future.
Energy

It is our belief that a sustainable hotel and a protected natural habitat is both
ethical and good for business. Guests staying at our hotels actively contribute
to our journey towards becoming a more environmentally aware and friendly
hotel group. We have established programmes and policies in place to
reduce our negative impacts while continuing to create positive luxurious
experiences for our guests.          We are aware that transition is not a
straightforward process and that we may still improve.

Energy consumption includes LPG gas, electricity, and diesel.

SUN group purchases electricity from the national grid through the Central
Electricity Board. At SUN, with the active engagement of our engineering
and maintenance departments we have been working to provide for the
best available context specific opportunities that we can easily act upon to improve our performance. We have inter alia:

   •   Adhered to the Programme National d’Efficacité Energétique (PNEE) by partnering with Business Mauritius
                                                                                                     Kwh/GN
       to participate in hot & cold equipment audit;
•   Set-up a detailed process-level audit to calculate efficiency;
   •   Implemented energy efficiency measures such as heat recovery
   •   Installed 1.5 MW of solar panels for water heating in all hotels (3000m4)
   •   Changed 100% of all lights to LED,
   •   Changed air conditioning to new standards,                                                                                        33.97
   •   Improved the cold room.                                                                                  30.14
                                                                                                    28.54                    28.61
   •   DVMC unit for all rooms.
                                                                                                                                                     23.30
                                                                                                                                                                    -
                                                                                                                                                                 18.36%

 Water                                                                                             FY 14/15   FY 15/16     FY 16/17    FY 17/18   FY 18/19

                                           Water is a limited resource which poses one of the
                                           most vital sustainable development challenges of our time. Managing our use of water is good for
                                           the planet, good for people, and good for business. SUN is focused on water stewardship – taking
care of this precious resource to ensure water use is equitable

A water leak was uncovered at Sugar Beach which has resulted in an increase in water consumption. This has not been remedied and we will
share the learning from this with other business units. From 2020, SUN will be developing and
deploying a companywide eco efficiently programme to identify improvement opportunities
and make reduction in consumption: water will be a key part of this project.
                                                                                                                                  0.79
                                                                                                                          0.73
                                                                                                         0.60       0.62
                                                                                                                                0.57

SUN signed the CEO Water Mandate in 2019, becoming                                     the first       FY 14/15   FY 15/16    FY 16/17    FY 17/18    FY 18/19
hospitality company in Mauritius to do so.                                                                         M3/GN
As from 2020 the group shall center its actions on the                                 Mandate’s six water stewardship commitments:
1. Direct Operations
               2. Supply Chain & Watershed Management
               3. Collective Action
               4. Public Policy
               5. Community Engagement
               6. Transparency

                                                                                                                                             +31.55
                                                                                                                                               %

       Waste

REDUCE, REUSE, RECYCLE

Waste disposal has a strong negative impact on the environment – through the release of CO2, methane or particulates, the contamination of
groundwater, noise and visual pollution, and energy consumption for waste treatment.

Sun Resorts prioritises waste disposal methods wherever possible, and each hotel has its own waste management system in accordance with
ISO 14001 (Environmental Management).

PROGRESS: Since 2018, all hotels have developed various                                waste treatment initiatives.

   •   Sun has partner with the University of Mauritius to                             implement a food waste reduction programme.
   •   Our Chef Ms Sandy has come up with an innovative                                practice by transforming banana peel into
       Bakery yeast, use for our signature sun bread.

                                                                                                       Total waste m3
Emission
Emissions were calculated by Earth Check

We are happy to report that since our baseline year (2015)
we have managed to cut down our emissions
by 23%. We are today well below recommended best
practice.

It is important to note that for now, SUN has opted-out of

                                                                                                                  2931.46
                                                                               2509.2            2484.16

                                                                1991.52

Carbon Offsetting through Voluntary Carbon Markets, as
we believe there is still a lot to be done here in Mauritius,                           916.61
                                                                                                        798.24
                                                                      721.92
and in the communities surrounding our hotels.                                                                          582.92

                                                                    2016           2017               2018            2019
                                                                               Total Waste       Waste Recycing
Other wastes
We have several initiatives in place, to upcycle waste -
creating shared value. For instance, uniforms contribute
                     largely to textile wastes as they are          -23%
                     changed every year. Through a
                     partnership with the Fashion and Design
                     Institute, these old uniforms have been
                     transformed into artwork as a wish tree.
                     Future collaborations are planned for
                     more projects involving the upcycling
                     of textile wastes. Only those wastes
                     than cannot be recycled or upcycled
                     through third parties are sent to landfills.

   Little actions matter
   As SUN has embarked on a journey towards more
   sustainable practices, raising awareness has
   become its everyday responsibility.

   Designed to be an enchanting, fun and safe
   place for kids on holiday, the Sun Kids Club
   programme offers a wide variety of in-door and
   out-door activities. From puppet shows to
   theatrical performances to the huge array of toys,
   games and arts activities, staff promote a few
Sugar Beach has an in house waste water
                                                                                                                      treatment plant for Sugar Beach and La
                                                                                                                      Pirogue Hotel.

                                                                                                                      100% of our irrigation is from recycling water

         Plastic
Waste water treatment
        In our        plant
               endeavour towards minimising waste to landfill, one of our new
         and major targets set at the start of 2020, is to achieve 100% elimination
         of single-use plastic in our hotels in the next few years. This is a big task
         when closely examined and we all agreed that it cannot be resolved it
         overnight. In 2019 we have asked our entire team to list every item in
         their operation housekeeping, kitchen and F&B made from plastic. We have identified 54 items consider as single use of plastic and we are
         currently working with our supply chain to find alternatives. We have also double the production of our in house water bottling plant in an effort
         to avoid the use of plastic water bottle.
Guests are inspired to be mindful of their energy and water use. We encourage
                                                         multiple use of linen and towels to limit use of water and cleaning chemicals; we
                                                         have installed LED lights and master switches to ensure energy consumption is kept
                                                         to a minimum. We have also established green criteria for the materials that we use
                                                         as part of our standards when it comes to room renovations. Our ambition for the
                                                         near future is to achieve zero plastic in room amenities such as for soaps, shampoos
                                                         etc.

Environmental Sustainability in Practice
                                Our strategic partnership with the UN Environment Programme (UNEP), through the
                                                    Switch Green Africa initiative, lays the foundation towards an inclusive green
                                                    economy. The first project involved the transformation of solid soap (used by clients)
                                                    into
                                        SMALL CHANGES    liquid A
                                                       MAKE     soap.
                                                                  BIG The research, carried out by the University of Mauritius, proved to
                                                                      DIFFERENCE
                                                    be a success.
                                        We believe that being sustainable is simply being better at business and these
                                        practical SUNCARE Programme demonstrate just how we are achieving this and
                                        enhancing our guests’ quality of life

                               Beach Cleaning

                               Dedicated to preserving the environment, Sugar
                               Beach Hotel organised a dedicated CSR activity:
                               a clean-up drive at the flic en flac public beach.
                               Heads of department and associates from both
                               properties pitched a hand in cleaning flic en flac
                               public beach, collecting rubbish within the area.
Non motorise sea activities

                                                                                                                    Because we care about our environment Sugar
Earth Hour                                                                                                         Beach does not promote motorise activity.
On Saturday the 28th of March, our
restaurants participated in Earth Hour, and
guests were encouraged not to use energy
sources during that time. This entailed                                    Recycling of hotel’s used oil
switching off all lights to conserve energy and
reduce our footprint. Not only did it have a
       Cleaner
positive impact for Production
                      the planet,Technology
                                   but it allowed
our guests to participate and dine in a cosy
       SUN Group
and romantic         has its own Industrial laundry (Washright) which takes care of all the hotel’s laundry, including some external clients. Recently the
                atmosphere.
       company invest in an innovative                                                                            technology that uses used oil as a source
       of fuel.

                                                                                                                       Soap recycling project
                                                                                                                       Solid soap transform to hand wash
Old brochures transform into
                                    bags

Soap recycling project                                             Old brochures transform into
Solid soap transform to hand wash                                  bags
Coral farming
Community
Community Engagement

In its quest to address sustainability initiatives, SUN’s core mission is to act as a role model in
the community. This is done by involving and engaging stakeholders at all levels: from the
management to the employees including suppliers, guests and the local community. SUN’s
commitment towards the well-being and empowerment of the community where it operates
is reflected through its contribution in four key areas, namely: charitable contributions and
human rights. health and disability, food, education and circular economy.

SUN Children Cancer Fund

In 2008, one of SUN Resorts’ employees’ child was diagnosed with cancer and passed
away at the age of 5. Profoundly touched by such a terrible event, our whole staff came
together and raised Rs 8 million for the expansion and renovation of the Children’s Cancer
Ward at Victoria Hospital. This one positive impact became our North Star. We believe
every child with cancer should have access to essential healthcare. Today, we currently
support more than 100 children requiring treatment.

SUNCARE Charity Golf competition is a yearly event at SUN where guest and other
companies participate to raise fund for children with cancer
In order to continue to fund our star programme, at the beginning of this year, we introduced the Voluntary 1 Euro per
Guest Night. This programme allows our clients to contribute to the Trust. We are humbled and pleased to show that in
just five months, our guests have contributed RS400,568.

Their contribution will directly support our future:
                                                                                                Total SUNCARE Guest Voluntary
    •   To collaborate with neuropsychologists to address the unmet
                                                                                                         Contribution
        psychological needs of the children and their families.
    •   We have noticed that many patients struggle to reach facilities for their
        recurring treatments. The lack of transportation is a barrier to care. Some           121,670.88
        children must travel to other countries to receive adequate treatment.
                                                                                                                       100,595.39
        We are working to identify the more complex cases and find a solution.

                                                                                      In Rs
                                                                                                           86,165.69
    •   Several our patients are not able to pursue their schooling due to                                                          76,129.91
        ongoing treatments and lack of funds. We are working on a volunteer
        programme to assist them.
                                                                                                                                                16,006.76

                                                                                                MAR          APR         MAY          JUN         JUL

Local Community Project

Each of our hotels must pick a project that will serve their host communities. Our community engagement is mainly
philanthropic. Our aim is to ensure that the most vulnerable – usually children and women – have their basic needs
fulfilled and live in dignity. Each of our hotels encourages our employees to volunteer in these programs, which is usually
met with much enthusiasm.
Sugar Beach Mauritius

   •   Sugar Beach has been supporting the Flic en Flac Government School since 2008, by
       helping organize events including music day, Independence Day, and their end-of-year    2019 Sugar Beach     SUNCARE
       party.                                                                                   Team Members
   •   We also provide support to a family with additional needs.                                Volunteered
   •   New project: Build a playground area which the school currently does not have. The
       project, which entails removing a rocky hill, purchasing of new playground equipment,       1092 hours
       installing a fence and painting.                                                                             Rs 175,000
                                                                                                   Local projects   invest in our
                                                                                                                    community
                                                                                                   2 projects
Education
  Recognising the importance of education for the future of the community and securing the future of our
  hotels by ensuring a continuous pool of educated people for the future of our hotel, SUN has elaborated
  various programs:

  The Youth Empowerment Program aims to attract and expose youth to the hospitality industry and
  sometimes the formal work sector through apprenticeship. This provides an opportunity for these young
  people to enhance their skill development.

  SUN also collaborates with the tertiary education sector for various programmes. A collaboration with the
  Fashion & Design Institute promotes young talents. In order to be at the forefront of industry initiatives, SUN
  has recently signed a Memorandum of Understanding with the University of Mauritius, promoting research
  and innovation in sustainable tourism industry.

Celebrating Women’s Day

                                                                 Sugar Beach Hotel celebrate This International Women’s Day recognising the many
                                                                 achievements and contributions our women colleagues have made. Women make up a
                                                                 sizeable proportion of our workforce – almost 33% at Management level.

                                                                 At Sugar Beach Hotel, we recognize that women make significant contributions to the workplace,
                                                                 to society, community and family. We recognize that women, too, have their dreams and
                                                                 passions, and we want to help make their passion, possible.

                                                                 From promoting gender parity by fair employment practices based on meritocracy, to support
                                                                 systems built into our organization that support the unique needs of our employees including
                                                                 women, we seek to create a healthy work-life balance for our employees. For example,
                                                                 transitioning return-to-work mothers by providing facilities that they made need, and ensuring
                                                                 leaders are equipped with the necessary resources and skills to manage the department’s needs
                                                                 while being mindful of the challenges of family commitments.
Sharing our cultural heritage with our guests
Our guests are increasingly interested in engaging with local communities, even in the luxury sector. As such, we strive to ensure that our guests
experience the local culture and cuisine. We organise ad hoc cultural events in all of our hotels, covering different religious ceremonies and
                                                                            celebrations.

                                                                             One of our guests favourite time at
                                                                             Long Beach Hotel, is the Mauritian
                                                                             day that is held every Wednesday.
                                                                             During this day, we share our cultural
                                                                             heritage with our guests. A typical
                                                                             Mauritian day would look like this:

                                                                             During the day, while parents lounge
                                                                             by the cocktail bar and swimming
                                                                             pool, children can enjoy a fun day
                                                                             filled with Mauritian games. The kids
                                                                             club runs all-year long.

                                                                                                                          In the early evening, local artisans
                                                                                                                          come to the hotel to display their
                                                                                                                          creations. These are the perfect gifts
                                                                                                                          to bring back to your loved ones. They
                                         Those interested in the local                                                    are locally sourced, locally made,
                                         cuisine, learning about local                                                    and directly support our communities.
                                         recipes and taking home the
                                         best ingredients, can join our
                                         Chef on a market outing.
Come evenings, we share the
local cuisine, with ingredients
sourced from the market that
day. The evening is then
accompanied by our local
musicians.
Next Step
Our sustainability journey continues, with renewed focus, KPIs and
commitments for 2020 and beyond
Next Step
Preparing and writing this report has allowed us to take stock of the last four years. We are proud of the journey
we have taken, and have made investments where they were most needed and made significant strides
towards the right direction. We are aware that we still have improvements to make, and will apply as many of
the recommendations from Earth Check and Travel Life as possible in the coming year.
According to our latest audit, which was in 2018, areas in need of improvement that we haven’t yet fully
achieved in 2019 include:
  1. Potable water consumption per guest: Water consumption across the SUN’s Resorts remains high and a
     priority from a sustainability point of view. Broader strategies to reduce its dispersion and use should be
     deployed.

  2. Waste sent to landfill: Waste management and reduction remains the biggest challenge across the group
     due to the lack of a country wide waste management strategy. Whilst measures to divert waste from landfill
     have been put in place, total general waste production remains above the national average. Reduction
     of the source of waste at the supply chain level should be the leading objective, followed by more reuse
     and recycling strategies.

  3. Community commitment and inclusion: local communities and suppliers should be prioritised when
     feasible. A “Km Zero” strategy for the procurement of local produce and services should be evaluated
     when feasible. Working with and favouring local suppliers represent also an opportunity to adopt sourcing
     strategies that can work towards the reduction of waste generated. This is to be understood in the context
     of a Small Island Developing State, which creates challenges with regards to finding enough local
     procurement.
In light of this, in November 2019 we held a workshop with an external consultant and all of our GMs and
sustainability managers. The goal of this workshop was to review our strategic constraints, risks and opportunities
and see how sustainability initiatives could help us find a better way forward. We are thus, increasingly
embedding sustainability within the Groups’ strategic work. The workshop resulted in a new Materiality Matrix, as
well as a list of commitments we are ready to make and that we believe will help us create more and better
opportunities for the future.
2020 Materiality Matrix

                                                 Importance to stakeholders (according to the UN, EarthCheck, Travel
1       Sales and Economic performance
2       Certifications and operational
        excellence
3       Local Economic Impacts
4       Transparency and good governance
5       Human capital and staff involvement
6       Labour conditions, health and safety
7       Human Rights Protection and Advocacy
8       Community inclusion and
        empowerment
9       Guest's hotel experience
10      Eco-responsible supply chain
11      Energy Production and Consumption
12      GHG emissions and offsetting

                                                 LifeSDGs, and GRI)
13      Water resource and management
14      Waste and pollution management
15      Biodiversity and environmental impacts
16      Heritage experience and Guest
        involvement                                                                                                    Importance to SUN
17      Urbanisation and Landscape Erosion
18      Destination enhancement and
        promotion
In light of this work, we have collectively committed to these 10 elements, for all of our hotels in Mauritius:

   1. Give free training and endorsement to surrounding local street food stalls in food safety. This would allow us to
      encourage our guests to taste local street food without them worrying about getting sick.
   2. On water management: we target to cut on potable water wastage by 10%.
   3. Guest involvement:
         a. Develop a program that gives our guests a better immersive experience in local lifestyle, and to build strong
            cultural and interactive memories.
         b. Inviting the guest to the chef’s place and experience culture.
   4. Improving operational efficiencies through staff development and motivation
   5. Waste management:
         a. set-up an action plan to reach 0 food waste to landfill and optimise unwanted by-products
         b. Consider partnerships to pilot a community clean-up process in and around hotels in Flic en Flac
         c. Reduce our carbon foot print on single use plastic.
   6. Supply chain:
         a. To source locally made products to the best standards possible, ensuring reasonable milestones towards
            100% sustainably local; providing potential suppliers with an evaluation form that certifies their awareness
            on the lifecycle of their products.
         b. Ban the purchase of any vulnerable species from the sea, benchmarking against the Marine Stewardship
            Council or any other reputable body.
   7. Improve the group’s Economic performance
   8. Involve required expertise to evaluate and keep improving practices on biodiversity, to protect endemicity and
      as a carbon offsetting measure
   9. Enhance and replicate the Marine research project at la Pirogue to other resorts, and further develop
      partnerships to increase the practice of reef restoration. This will work together with the promotion of good tourist
      behaviour in order to respect the environment of the marine ecosystem.
10. Look into cost effective solar and wind energy options. In addition, consider eco-decorative outdoor solutions
    such as solar-jars.
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