ENVIRONMENT - Sun International

 
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ENVIRONMENT - Sun International
ENVIRONMENT
As a responsible company, we recognise that we have an obligation to
ensure we operate in an environmentally responsible and proactive
manner. This ensures a safe and pristine environment for our guests,
employees and other stakeholders affected by our operations.

                        HIGHLIGHTS
                        • Updated our environmental strategy, setting the path towards
                          an integrated sustainability approach
                        • Established and rolled out our energy, water and waste
                          reduction targets to all South African operations to improve
                          resource efficiencies and reduce costs
                        • Restructured our South African unit teams to include a
                          dedicated resource incorporating safety, health and
                          environment (SHE)
                        • Reduced water consumption for South African operations by
                          3% compared to the 2017 reduction target
                        • Developed an electronic dashboard for capturing and recording
                          groupwide environmental data
                        • Finalised and implemented the SHE legal register and trained
                          SHE professionals in South Africa to use the register
                        • Wild Coast Sun achieved zero-waste-to-landfill

                        CHALLENGES
                        • Water scarcity and increased cost of water impacting on
                          business continuity in the Western and Eastern Cape
                        • Renewable energy initiatives
                        • Standardising South African operations waste management
                          systems to improve efficiencies and save costs
                        • Difficulties in achieving our local WWF-SASSI target
                        • Driving behavioural change throughout operations to ensure the
                          efficient use of resources, such as water, energy and effective
                          waste management
                        • Increasing cost of electricity and concerns regarding security of
                          energy supply in certain areas
                        • Data accuracy and reporting groupwide

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ENVIRONMENT CONTINUED

DELIVERING ON FOCUS AREAS
Our focus for 2017                                            What we achieved                                             Self-assessment
Finalising the Sun City landfill feasibility study in         A scoping exercise revealed that the landfill space was
preparation for closure in 2019.                              adequate until 2019 and not 2017 as originally
                                                              anticipated. This extension was largely due to higher
                                                              recycling recoveries and a decrease in waste generation
                                                              volumes during the temporary closure of Sun City’s
                                                              entertainment centre.
Approved the waste-to-energy project for Sun City.            A basic assessment report was submitted to the
                                                              Department of Environmental Affairs for the proposed
                                                              waste-to-energy project for Sun City. Additional studies
                                                              were conducted to confirm the size and type of
                                                              equipment required for the proposed waste-to-energy
                                                              plant. This project will be closely monitored to ensure
                                                              the pyrolysis plant is ordered and implemented before
                                                              the current waste site at Sun City reaches full capacity
                                                              (estimated to be December 2019).
Implementing electricity and water metering to                Electricity and water metering implementation was
improve data capturing and accuracy of data.                  delayed so that improved technology for monitoring
                                                              electricity and water could be built into our new
                                                              environmental dashboard, allowing real-time
                                                              monitoring of water and electricity use.
Identifying water use reduction initiatives to further        Numerous water initiatives implemented across
reduce water consumption.                                     properties resulting in a reduction in water
                                                              consumption from the previous year.
Encouraging supply chain and concessionaire                   Sustainability elements are in the process of
compliance to Sun International’s group                       development for incorporation in our supply chain
environmental policies and commitments, including             policies and our supplier onboarding process in 2018.
concessionaire adherence to the WWF-SASSI                     Additional supplier workshops are planned to continue
sustainable seafood initiative.                               to work towards our WWI-SASSI objective of only
                                                              procuring sustainable seafood.
Implementing environmentally-friendly initiatives at          Various environmentally friendly initiatives were
Time Square.                                                  implemented at Time Square making this property the
                                                              group’s most green unit. However, the proposed solar
                                                              plant did not materialise due to structural difficulties
                                                              and future developments around Time Square
                                                              that would have impacted on the efficiency of the
                                                              solar project.

    Substantially achieved                 Limited progress              In progress

KEY PERFORMANCE INDICATORS
Sun International remains committed to reducing its environmental footprint across all business units. As part of our commitment, we
continue to report on relevant and applicable Global Reporting Initiative (GRI) indicators. With the change in our financial year end from
June to December, our 2016 data was restated for the period January to December 2016 to allow for comparability of our year-on-year
data. The data has also been segmented by region to ensure an accurate reflection of our key performance indicators across the group.

                                                                                                               December           December
South Africa                                                                                                       2017               2016

Energy consumption                                                                              kWh          239 352 621        238 696 073
Water consumption                                                                                 kl           5 340 041          5 072 217
Waste                                                                                        tonnes            9 983 923          9 816 599
Carbon emissions (Scope 1 and 2)                                                        tonnes CO2e              268 632            290 570

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ENVIRONMENT CONTINUED

MANAGEMENT APPROACH
                           Governance                              Risk                                  Strategic objectives

 Environment               •   Sustainability committee            • Availability of water at            • Governance and sustainability
                           •   Social and ethics committee           GrandWest, Table Bay and            • Improve our existing operations
                           •   Risk committee                        Boardwalk                             and our guest experience
                           •   Executive committee                 • Approval and implementation         • Protect and leverage our
                                                                     of waste-to-energy plant              existing asset portfolio
                                                                   • Increase in water and
                                                                     energy costs
                                                                   • Inaccurate data capturing

During the financial year Sun International        exist, however not every unit has the same       To ensure our environmental targets and
formalised an integrated sustainability            levels or number of representatives.             commitments are monitored and
structure to improve overall coordination          The unit structure depends on the unit           achieved, the group will be developing an
of the group’s sustainability initiatives.         size and operational requirements and            integrated SHE management system and
The new structure has improved the                 applicable environmental and legislative         training SHE representatives to conduct
monitoring and reporting of environmental          requirements. This new structure allows us       cross-unit internal audits, which allow for
data, initiatives and potential risks and          to standardise the SHE job profiles,             learning experiences, shared value and
opportunities, both locally and internationally.   requirements and minimise the risks              improving best practice at unit level.
As a result, the environmental policy              associated with succession planning and          Formal SHE awareness campaigns
http://ir2017.suninternational.com/                intercompany moves.                              will be held monthly at all units and a
downloads/downloads/pdf/Sun_                                                                        sustainability culture programme is being
International_IAR2017_                             The newly appointed group sustainability         developed to promote various SHE
                                                   manager is responsible for ensuring the          elements.
Environmental_policy.pdf and
                                                   integrated sustainability strategy is filtered
strategy (previously referred to as the
                                                   down to the group environmental                  Environmental data is collected,
climate change strategy) is being revised
                                                   specialist, who in turn, is responsible for      consolidated and analysed monthly at all
to align with the revised integrated
                                                   updating and implementing the                    South African units and then captured on
sustainability strategy.
                                                   environmental strategy and ensuring a            the new environmental platform, which
As part of the environmental strategy,             consistent approach to environmental risk        provides groupwide visibility and ongoing
we developed and implemented our first             management by facilitating policy and            monitoring against environmental targets.
water and energy reduction targets along           performance standards. The group                 Going forward, the same procedure will
with our committed zero-waste-to-landfill          environmental specialist also monitors,          be implemented at our Latam operations
target for all local units. Overall group          evaluates and reports on group                   that currently report environmental
reduction targets are 18% for water by             environmental performance while guiding          information to the group on an annual basis.
2020, and 15% for electricity by 2022.             and supporting the SHE teams at unit level
                                                   and ensuring ongoing awareness and               Specific targets and initiatives have been
                                                                                                    identified for each unit for water, waste
GOVERNANCE AND RISK                                training is conducted for all employees
                                                                                                    and energy.
                                                   in the group.
MANAGEMENT PROCESS
Our board of directors and chief executive         PERFORMANCE OVERVIEW
(assisted by the board’s social and ethics         South African environmental
and risk committees and our recently
                                                   performance
establish sustainability committee) are
accountable for Sun International’s                To achieve our environmental goals,
environmental management and                       Sun International has developed a holistic
environmental footprint reduction.                 approach towards making our business
                                                   sustainable. Our environment strategy is
With the alignment of various portfolios           premised on an understanding that the
under the new sustainability department,           environment is integral to how we do
environmental being one of them, we                business, impacting local communities,
have restructured our SHE teams at a unit          our guests, our employees and our
level, combining our efforts and maximising        bottom line. Our environmental journey
value across the South African units.              continues to evolve as new technologies
Various levels within the new structure            and opportunities open up.

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ENVIRONMENT - Sun International
ENVIRONMENT CONTINUED

                                                           consumption by more than 33%. Some of
WATER MANAGEMENT                                           the long-term solutions include financing
Water is a critical resource for our                       additional boreholes, constructing water
operations and remains a key focus area                    treatment plants to treat enough water to
for each of our properties. Sun International              operate the non-potable water aspects of                     Water sources
is committed to the responsible                            their operations, and various other                          Most of our properties obtain water
stewardship of water resources, while                      initiatives such as grey water collection                    from the municipal supply system,
ensuring we have a secure supply of water                  systems, water-wise plants and                               while some (e.g. Wild Coast and
for all our properties. During the financial                                                                            Carnival) are partially dependent
                                                           information posters and awareness
year Cape Town and Port Elizabeth                                                                                       on freshwater resources (i.e. river
                                                           material in our hotels. Boardwalk is
experienced their driest periods in                                                                                     abstraction). Other properties use
                                                           investigating an alternative water source                    a combination of municipal water,
recorded history. Cape Town was declared
a disaster area, with severe water                         that, with minimal treatment, could see                      groundwater or boreholes, and
restrictions being imposed across the city.                the unit drastically reducing its                            treated waste water. No water
                                                           dependency on municipal water supply.                        sources are significantly affected
This water scarcity impacted three of our                                                                               by any of our properties’ activities,
properties in the Western and Eastern                      We continue to investigate additional
                                                                                                                        nor is water withdrawn from any
Cape – GrandWest, Table Bay and                            sustainable water sources from a cost,                       wetland or protected water
Boardwalk. These properties have                           time and efficiency perspective to                           resources.
intensified efforts to save and reuse water,               determine the most feasible options.
and investigate long-term solutions for                    In addition, Sun International will continue
alternative water sources. Together, these                 to reduce water consumption even after
properties have reduced their net water                    the water crisis ceases.

Group: water key performance indicators (KPIs)
                                                                                                                                      %
Water – Group                                                                                                   2017             change                  2016

Total water withdrawals (kl)                                                                             5 340 041                    5.3           5 072 217

Recycled water                                                                                                855 870               (22.6)          1 105 264

% water recycled                                                                                                 18.4              (20.2)                 23.1

Cost of water (R)                                                                                      71 406 206                     8.7          65 656 187

                                                                                                                                      %
Water – South Africa                                                                                            2017             change                  2016

Total water withdrawals (kl)                                                                            4 634 520                    (3.0)         4 788 209

Recycled water                                                                                                855 870               (22.6)          1 105 264

% water recycled                                                                                                 18.4              (20.2)                 23.1

Cost of water (R)                                                                                      63 022 263                    (3.6)         65 347 743

                                                                                                                                      %
Water – Latam1                                                                                                  2017             change                  2016

Total water withdrawals (kl)                                                                                  402 037                221              125 220

Recycled water                                                                                                     0                   0                        0

% water recycled                                                                                                   0                   0                        0

Cost of water (R)                                                                                        8 383 943                 2 539              317 752

                                                                                                                                      %
Water – Africa                                                                                                  2017             change                  2016

Total water withdrawals (kl)                                                                                  294 484                 85              158 788

Recycled water                                                                                                     0                   0                        0

% water recycled                                                                                                   0                   0                        0

Cost of water (R)                                                                                                  0                   0                        0
1 The comparative 2016 data does not include all Sun Dreams properties resulting in the material variances.
Note: The 2016 environmental data has been restated due to our year end changing from June to December.

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ENVIRONMENT CONTINUED

Municipal water supply remains the largest      improvement of data reporting, resulting
source of overall water withdrawals and         in fewer challenges in data accuracy,
accounts for 92% of the main water supply       consistency, completeness and reliability.
in South Africa. The targets set for the        Recommendations were made to review
South African operations are based on a         the efficiency indicator and to continue
scientific target aligned methodology over      improving water consumption procedures,
a three-year time horizon, and annualised       systems and controls.
for each unit. The main target is to reduce
the water consumption of our South              To reduce our overall water consumption,
African operation by at least 18% by 2020.      the group has committed to implement
These targets have accounted for the            electronic water meters at all local units.
increased water consumed at Time                This will allow the group to view real-time
Square, and the disposal of Fish River          consumption and eliminate data capturing
and Morula.                                     errors. Data will feed into our environmental
                                                dashboard that will flag anomalies and
The 2017 water consumption data for             highlight possible water leaks and wastage.
South Africa is 3% less than in 2016, and
                                                Group water source (%)
should be viewed in the context of the
following factors:
• Significant water consumption
  reductions and water saving initiatives                                  ●   Municipal
  especially in the Western and                                                supply    87
  Eastern Cape.                                          2017              ●   Ground     6
• Improved data reporting in 2017 from                                     ●   Surface    7
  2016, although data inaccuracies
  remain a problem at most of our units.

Sun International voluntarily participates in
the Carbon Disclosure Project’s annual          Group water source (%)
water disclosure programme. For the
2017 CDP-Water report, only South
African operations were assured. Until the                                 ●   Municipal
data collection systems and procedures
                                                                               supply    90
are embedded in our Latam and African                    2016
operations, we will continue to assure our                                 ●   Ground     4
South African operations only. Based on                                    ●   Surface    6
year-on-year comparisons of our
CDP-Water submissions, the independent
assurance process shows an overall

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ENVIRONMENT CONTINUED

WASTE MANAGEMENT                                            Since reinforcing the South African waste             zero-waste-to-landfill by 2020. This ToR
                                                            monitoring programme in August 2017,                  will be rolled out systematically to units
Sun International is committed to a
                                                            annual waste reduction targets were                   whose contracts are expiring, who are on a
zero-waste-to-landfill for the South
                                                            implemented at each unit to ensure                    month-to-month contract basis, or are not
African units by end of 2020. This is an
                                                            zero-waste-to-landfill is achieved by 2020.           complying with the ToR provided.
indication of our commitment to minimise
                                                            Ongoing reporting and tracking of waste
our footprint and we continue to work                                                                             Waste volumes and recycling initiatives
                                                            reduction and recycling initiatives will also
tirelessly to achieve this target. By reducing
                                                            allow Sun International to monitor                    were also assessed as part of site visits.
our waste to landfill we also reduce our
                                                            year-on-year cost savings within the group.           Various waste initiatives are being
carbon footprint, create job opportunities
                                                                                                                  considered at group level and at individual
and have a positive impact on our                           Since the initiation of the zero waste                operation level, as part of the waste
bottom-line.                                                programme in March 2016, site visits were             reduction programme.
                                                            conducted at all our local units. Some of
During 2017, the total waste measured
                                                            the findings included: inconsistencies in             No significant spillage incidents were
throughout our South African operations
                                                            waste management procedures, difficulties             reported during 2017. With the exception
was 7 575 tonnes (2016: 8 678 tonnes),
                                                            in optimising waste contacts due to a                 of Sun City, which owns its own licenced
a 13% reduction compared to the previous
                                                            broad range of service providers, and the             landfill site, all non-hazardous waste is
year. The reduction in waste can be
                                                            lack of standard operating procedures for             either recycled or disposed of at municipal
attributed to:
                                                            all types of waste. In 2018 the group will            landfill sites. The waste audits at our local
• improved recycling and beneficiating                      be embarking on various waste                         units highlighted areas for improvement
  measures applied at units                                 management projects to standardise                    especially around waste processes,
• the Wild Coast Sun achieving their                        waste practices, operating procedures and             reliability of waste data but also identified
  zero-waste-to-landfill target in 2017                     data collection as well as to review and              opportunities and best practices in the
• improved data reporting in 2017                           improve our current service level                     group. Lessons learned at an operational
  compared to the prior year, however                       agreements with waste service providers.
                                                                                                                  level, especially the Wild Coast Sun which
  data inaccuracies remain a problem at                     With all local units currently engaging with          achieved its zero-waste-to-landfill two
  most of our units                                         various waste service providers, the group            years ahead of schedule, will be shared
                                                            will be developing a comprehensive terms              throughout the group during 2018 to
                                                            of reference (ToR) for waste services which           improve each operation’s waste
                                                            is in line with our target of achieving               management performance.

Waste – Group1                                                                                 Total 2017 (kg)         %        Total 2016 (kg)           %
Total volume of non-hazardous waste to licenced landfill                                             6 213 035        (62)          6 073 940           (62)
Total volume of non-hazardous waste recycled                                                         3 659 582        (37)          3 643 722            (37)
Total volume of hazardous waste to licenced landfill                                                     51 565     (0.52)             46 066          (0.47)
Total volume of oils recycled                                                                           43 654     (0.44)              40 130          (0.41)
Total volume of hazardous waste recycled                                                                16 087      (0.16)              12 742         (0.13)
Total waste for the group                                                                           9 983 923                       9 816 599
1 The comparative 2016 data does not include all Sun Dreams properties resulting in the material variances.

Waste – South Africa                                                                                 2017 (kgs)        %             2016 (kgs)           %
Total volume of non-hazardous waste to licenced landfill                                             3 916 575        (52)          4 954 760            (57)
Total volume of non-hazardous waste recycled                                                        3 586 898         (47)          3 643 722           (42)
Total volume of hazardous waste to licenced landfill                                                    24 145      (0.32)              26 776         (0.31)
Total volume of oils recycled                                                                           31 684     (0.42)              40 130         (0.46)
Total volume of hazardous waste recycled                                                                16 087      (0.21)              12 742         (0.15)
Total waste for South Africa                                                                         7 575 389                      8 678 129
Note: The 2016 environmental data has been restated due to our year end changing from June to December.

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ENVIRONMENT CONTINUED

ENERGY MANAGEMENT                                          approved and specific unit reduction                          electricity meters at each local operation,
                                                           targets have been rolled out locally. The                     these two initiatives will assist in
Our energy management focus is driven
                                                           targets are based on a scientific aligned                     eliminating incorrect data capturing and
by reducing GHG emissions and our
                                                           methodology over a five-year time                             developing data with high levels of
impact on the environment. The group
                                                           horizon, and annualised. These targets                        integrity, accuracy and traceability.
continues to focus on reducing energy
                                                           have accounted for the increased
consumption by managing behaviour,                                                                                       During 2017 the total amount of
                                                           emissions from Time Square as well as the
improving efficiencies and implementing                                                                                  electricity (Scope 2) purchased by
                                                           disposal of Fish River and Morula.
energy-saving initiatives.                                                                                               Sun International was 307 060 056 kWh
                                                           During the year under review all                              (2016: 290 516 560 kWh), reflecting a 6%
Sun International has been collecting and                                                                                increase compared to the prior year. This
                                                           South African properties underwent
analysing energy data since 2015 to                        energy audits to improve data collation                       was mainly due to the acquisition of
establish baseline data for the group’s                    and reporting processes, and identify                         Sun Dreams resulting in additional units in
operations in South Africa. In 2017                        further energy reduction initiatives. A new                   Latam in the comparative reporting period.
Sun International approved and                             energy data management platform,
implemented their first energy reduction                                                                                 The increase in fuels, used by generators to
                                                           including a data validation component,                        produce energy, can mainly be attributed
targets for local operations based on the                  has been introduced as part of the
2016 baseline data. An estimated 15%                                                                                     to the reliance of Latam and African
                                                           environmental dashboard. Along with the                       operations on this type of energy source.
reduction by 2022 (Scope 1 – 3) has been                   planned implementation of electronic

Energy data
                                                                     2017                                     % year-                         2016*
                                                                                                              on-year
Electricity purchased                                        kWh                     Rand                     change                     kWh                  Rand

South Africa                                       239 352 621              234 849 928                         (0.28)           238 696 073           224 481 411

Latam   1
                                                     55 463 591              107 786 516                          (89)            29 392 981            58 849 751

Africa (Nigeria and Swaziland)                      12 243 844                18 005 624                         (135)              5 219 844            7 185 398

Total                                             307 060 056               360 642 068                           (12)           273 308 898          290 516 560

                                                                     2017                                     % year-                         2016*
                                                                                                              on-year
Direct: Fuel use for generator                              litres                   Rand                     change                     litres               Rand

South Africa                                              68 035                 840 913                          (63)                184 512           2 020 406

Latam1                                                  152 663                1 495 830                         (971)                 14 249                21 915

Africa (Nigeria and Swaziland)                        2 444 939               17 734 298                          (66)              1 471 778            9 860 913

Total                                                 2 665 637              20 071 040                           (60)              1 670 539           11 903 234

                                                                     2017                                     % year-                         2016*
                                                                                                              on-year
Direct: Liquified petroleum gas                               kgs                    Rand                     change                      kgs                 Rand

South Africa                                            724 974               11 868 318                          (32)               549 386             9 075 723

Latam1                                                  783 928                8 126 890                         (185)                275 429            2 642 345

Africa (Nigeria and Swaziland)                            40 412                 845 502                          (66)                 24 288              504 270

Total                                                 1 549 314               20 840 710                          (82)               849 103            12 222 338
1 The comparative 2016 data does not include all Sun Dreams properties resulting in the material variances.
* 2016 environmental data has been restated due to our year end changing from June to December.

Total group emissions for Scope 1 for 2017 was 23 097 tonnes CO2e (2016: 32 838 tonnes CO2e). Total group emissions for Scope 2 for
2017 was 268 632 tonnes CO2e compared to the 290 570 tonnes CO2e reported in 2016. The decrease in both Scope 1 and 2 CO2e
emissions is due to no data being available for the Latam operations. Scope 2 emissions remain the largest contribution to total footprint at
90% followed by fossil fuels utilised for energy generation, at just under 4%.

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Group carbon emissions data
                                                                                                        Total 20171             Total 2016*        % year-on-year
Scope           Source                                                                               (Tonnes CO2e)            (Tonnes CO2e)               change

Scope 1         Company-owned vehicles                                                                          2 934                  3 044                    (4%)

                Stationary fuels                                                                                9 612                 18 485                  (48%)

                Fugitive emissions (Kyoto gases)                                                                7 716                  8 181                    (6%)

                Waste landfill on-site                                                                          2 320                  2 540                    (9%)

                Waste water                                                                                      515                     588                   (12%)

                Subtotal Scope 1                                                                               23 097                32 838                   (30%)

Scope 2         Electricity consumption                                                                       245 535                257 732                    (5%)

                Subtotal Scope 1 and 2                                                                        268 632               290 570                     (8%)

Out of          Fugitive emissions (non-Kyoto gases)                                                            4 509                  8 037                  (44%)
Scope
                Total emissions (including other direct)                                                      273 141               298 607                     (9%)
1 The comparative 2016 data does not include all Sun Dreams properties resulting in the material variances.
* The 2016 environmental data has been restated due to our year end changing from June to December.

The Scope 1 and 2 target achievements                      Hotel, as well as other buildings planned                    Based on the year-on-year comparisons
should be viewed in the context of the                     around the Time Square precinct in the                       of our CDP-Carbon submissions, the
following factors:                                         next few years. However, the overall                         independent assurance process indicated
                                                           engineering design of Time Square already                    a significant improvement of reporting
• Improved data reporting in 2017 from
                                                           includes a significant investment in energy                  data, resulting in fewer challenges with
  2016, however data inaccuracies remain
                                                           efficient infrastructure which aligns with                   data accuracy, consistency, completeness
  a problem at most of our units.
                                                           the group environmental strategy and                         and reliability. Recommendations were
• The raw data reported for Scope 1                        once fully completed, will be the leader in                  made to review the efficiency indicator
  emission require further interrogation                   operational efficiency within the group.                     and to continue to improve energy and
  in 2018 to ensure accurate reporting                                                                                  carbon data, procedures, systems
  to the group.                                            Sun International participated in the                        and controls.
• Additional operations’ data were                         Carbon Disclosure Project in 2017.
  included in 2017 as part of the                          For the 2017 CDP-Carbon report,                              As part of our ongoing commitment to
  Sun Dreams acquisition.                                  only South African operations were                           reduce energy consumption (and our
                                                           assured. Until the data collection systems                   carbon footprint) the group has
Ongoing reporting and tracking of Scope 1                  and procedures are embedded in our                           committed to implementing electronic
and 2 initiatives will allow Sun International             Latam and other African operations, we                       electricity meters at all local units in 2018.
to monitor year-on-year cost savings                       will continue to only assure our South                       This will allow the group to view real-time
within the group.                                          African operations. While the primary                        consumption of electricity and eliminate
                                                           objective of the assurance process was to                    data capturing errors. Data will feed
Renewable energy projects are being                        provide stakeholders with an independent                     directly into the newly established
considered across the group. The Time                      ‘moderate level assurance’ opinion of our                    environmental dashboard that can flag
Square PV Solar Panel project has been                     carbon data, it also provided insight into                   anomalies and highlight peak demand
cancelled following further research,                      the overall energy usages of the group to                    energy consumption, allowing the units to
which showed that the project was not                      improve and/or reduce energy                                 plan operational activities around these
feasible largely due to additional shading                 consumption.                                                 peak demands.
created by the new Maslow Time Square

  Doing our bit for Earth Hour
  Boardwalk has been an energy champion of the group. Energy initiatives are being implemented and monitored by the facility
  management team. The team has successfully implemented a hot water system that uses waste heat recovery for hot water. The
  casino’s HVAC systems have been interlinked to reduce energy consumption. Currently the site does not have sufficient metering to
  track effectiveness of each initiative. However, the facilities management team has allocated budget for roll out of a fully automated
  energy metering system across the site in 2018.
  Carnival City has replaced 95% of all fluorescent fittings with energy efficient LED alternatives. They continued their energy-saving drive
  by switching off their lights for an hour at the clinic, staff canteen and in the slots and tables staff room. Solar lanterns were also used
  and, where possible, non-essential lights were switched off completely.
  Wild Coast Sun’s facilities management team implemented an energy metering system (Ernakulum), which is used predominately for
  concessionaire billing, allowing the unit to accurately meter and invoice concessionaires. They also use this data to manage their own
  electricity usage on site.
  Sibaya implemented a water recovery system from the cooling tower ‘blow down water’ and installed a heat pump system for the hotel.

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ENVIRONMENT CONTINUED

BIODIVERSITY
Although our properties have a limited impact on the biodiversity, properties situated in rural areas that are adjacent to or within sensitive
environments are detailed below.

                                              Size of property
 Region            Property                                (ha)   Sensitive natural receptor

 South Africa      Carnival City                          122     River and wetland system on site
                                                                  Underdeveloped natural area

                   Carousel                               586     On site game reserve

                   Flamingo                                10     Adjacent to Kamfers Dam

                   Golden Valley                           27     Underdeveloped area with fynbos vegetation

                   GrandWest                               43     Adjacent to Elsies River channel

                   Sibaya                                  39     In close proximity to the Ohlanga River and the Umhlanga Lagoon
                                                                  Nature Reserve

                   Sun City                             1 600     Adjacent to Pilanesberg National Park

                   Wild Coast Sun                         640     Within Maputaland-Pondoland-Albany biodiversity hotspot

                                                          448     Underdeveloped natural area

                   Windmill                                  2    Undeveloped grassland area

 Other African     Nigeria                                   8    Canal leading to harbour

                   Swaziland               Data not available     Data not available

 Latam             Monticello                              34     Adjacent to Canal Lucano

                   New units               Data not available     A detailed biodiversity assessment for our new units in Latam still needs to
                                                                  be conducted

Our impact on biodiversity remains largely         This commitment was made public in                purchase only green sustainable seafood
the same. The acquisition of Sun Dreams            2014 with the target date being                   species. The group has implemented
in Latam still needs to be assessed for any        January 2018. The commitment was                  various procurement processes and
sensitive biodiversity and potential               accompanied by the Sun International              procedures to reduce and/or eliminate the
impacts. In addition to our standard               Sustainable Seafood Policy at                     purchasing of any red seafood species and
management measures to protect                     http://ir2017.suninternational.com/               aim to do the same with the orange
important biodiversity, many of our                downloads/. While Sun International               seafood species, although this remains a
properties continue to monitor and                 has not yet met the 2018 commitments,             challenge for the group.
support biodiversity initiatives in and            WWF-SASSI continues to support the
around their operations.                           group in identifying new commitments              Other biodiversity initiatives in the group
                                                   and timeframes.                                   include:
As a principal partner of the WWF,
Sun International continues to support             In September 2017 Sun International               • Sun City: Continue to support rhino
efforts and initiatives identified by the          hosted its first WWF-SASSI Supplier                 protection initiatives in and around
WWF. One of the initiatives we have been           Workshop where all its seafood suppliers            the operations.
actively involved in is the WWF-SASSI              were invited to participate in the journey        • Wild Coast Sun: Habitat restoration
initiative. WWF-SASSI and Sun                      that Sun International is undertaking               projects involving eradication of alien
International entered into a formal                towards sustainable seafood. Going                  invasive species and the replanting of
partnership in 2013 through the retailer/          forward, we will host more of these                 indigenous vegetation.
supplier participation scheme. This meant          supplier workshops.                               • Wild Coast Sun: Monitoring
that Sun International committed to                                                                    International Union for Conservation of
transforming its seafood operations                In 2017 Sun International achieved a 65%            Nature (IUCN) red data list species
in specific properties under the                   rating compared to the 72.5% in 2016.               including the Grey Crowned Crane, the
Sun International brand as well as making          The decrease is mainly due to the group             Ground Hornbill and the Blue Duiker.
a commitment to sustainable seafood.               not meeting the commitments to

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ENVIRONMENT CONTINUED

GENERAL AWARENESS
To ensure the group continues to promote environmental initiatives, the sustainability department will be rolling out SHE awareness
campaigns each month, which will include six environmental awareness events to be hosted by different units. Each unit will be responsible
for developing content for use throughout all units.
The environmental events calendar is as follows:

Date                                               Awareness event                                     Unit hosting event

March 2018                                         World Water Day                                     GrandWest

April 2018                                         Earth Day                                           Flamingo

May 2018                                           International Biodiversity Day                      Wild Coast Sun

June 2018                                          World Environment Day                               Sun City

September 2018                                     National Arbour Day                                 Meropa

September 2018                                     Recycling (Clean-up) Week                           Windmill

Sun City Resort Cascades

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ENVIRONMENT CONTINUED

              OUTLOOK
              • Implementing and training SHE professionals on the use
                and updating of the new environmental dashboard
              • Training all SHE professionals to conduct cross-unit
                SHE audits at our local units
              • Updating the environmental strategy to align with the
                group’s new sustainability strategy
              • Monitoring and achieving our South African
                environmental reduction targets for 2018
              • Improving data quality throughout the group
              • Developing and implementing our sustainability culture
                programme
              • Improving health, safety and environmental awareness
                through training and initiatives

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ENVIRONMENT CASE STUDIES
                                                                                                  Table Bay implemented two grey
WATER INITIATIVES                                                                                 water collection systems. The first
In addition to implementing boreholes and a purification plant, GrandWest recycles the ice        collection system treats and stores
rink water for use in garden irrigation and grey water for lawns. They have also installed        water from the kitchens and several
flow restrictions on all taps, stopped the car wash initiative, used artificial flowers, and      rooms, which is then used to flush
harvested water from their air-handling units throughout the complex. In addition, they           the public toilets in the banquet area,
have removed all bath plugs from the hotel rooms to encourage guests to rather shower             staff ablutions and to water the
(plugs can be requested) and distributed and displayed water-saving awareness material in         gardens throughout the hotel. The
each room and at each unit.                                                                       second collection system recycles
GrandWest also used World Water Week to inspire employees and learners from                       backwashed water back into the
Goodwood College, Kalksteenfontein Primary and Boundary Primary to help clean up the              swimming pool after it has been
Elsies River canal, along with city councillors, service providers and other interested parties   filtered and cleaned.
(as depicted below).                                                                              The hotel has also removed all bath
                                                                                                  plugs from the hotel rooms but these
                                                                                                  can be obtained on request. Bed
                                                                                                  linen is now only replaced every four
                                                                                                  days (previously every second day)
                                                                                                  unless otherwise requested by our
                                                                                                  guests.
                                                                                                  The restaurants replace their napkins
                                                                                                  with good quality full biodegradable
                                                                                                  paper serviettes with the hotel’s logo
                                                                                                  and a message to guests encouraging
                                                                                                  them to minimise their own water use.
                                                                                                  To improve water efficiency of the
                                                                                                  hotel’s gardens, water-wise plants are
                                                                                                  being planted and the hotel’s
                                                                                                  flowering plants are being replaced
                                                                                                  with succulents, which require less
                                                                                                  water. The irrigation system in the
                                                                                                  garden beds at the main entrance has
                                                                                                  also been replaced with a drip system,
                                                                                                  which reduces water consumed for
                                                                                                  irrigation purposes by 60%.
                                                                                                  The Table Bay also introduced a
                                                                                                  campaign to engage its guests in its
                                                                                                  water-saving efforts. Notices are
                                                                                                  placed on arrival, in rooms and
                                                                                                  bathrooms to advise guests about
                                                                                                  the hotel’s water-saving campaign
                                                                                                  and offer easy tips for reducing water
                                                                                                  consumption that won’t compromise
                                                                                                  the guests’ experience.

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CASE STUDIES CONTINUED

SUN CITY’S LANDFILL                              WILD COAST SUN ZERO-
With Sun City’s landfill approaching its         WASTE-TO-LANDFILL FOR
end-of-life in 2019, the operation has
identified and implemented various
                                                 2017
initiatives to reduce waste generation and       Wild Coast Sun achieved its one year
significantly increase the volume of waste       zero-waste-to-landfill in January 2018.
recycled. Due to the size and location of        This is an amazing achievement for the
Sun City, normal waste recycling initiatives     operation and the group. The unit
would inhibit achieving zero-waste-to-           managed to recycle 98.7% of non-
landfill by 2020. After various                  hazardous waste and 1.3% hazardous
investigations, the unit identified a            waste during the period under review. This
waste-to-energy pyrolysis plant as a             was achieved two years ahead of the
possible solution for waste disposal to          group’s 2020 target.
achieve their zero-waste-to-landfill target.     To achieve the zero waste goal, the unit
In addition, the pyrolysis plant produces a      created job opportunities by establishing
synthetic by-product gas that will be used       two enterprise development projects from
as an energy source at                           disadvantaged communities in the Eastern
Sun City. The project also has the ability to    Cape – Vuka Uzenzele, who is responsible
produce bricks from the ash that results         for converting food waste, garden cuttings
from the burning of waste. The group has         and manure into valuable compost, and
completed a feasibility study and has            Gayo Enterprises who is responsible for
submitted a basic assessment report to           recovering all items from the hotel
the Department of Water and Sanitation           complex for recycling. These entities
for review. It is anticipated that the           support six households from the
pyrolysis plant will be operational by the       community.
end of 2019, before the landfill site closes.
                                                 They have sourced a recycling company,
SUN INTERNATIONAL’S                              Recycle 4 Africa, that provides the Wild
PARTNERSHIP WITH                                 Coast Sun with zero waste services by
                                                 committing to 100% recycling,
VIVREAU                                          permaculture and eco-bloc production
Our partnership with Vivreau continues to        from waste aggregate.
yield positive results when it comes to our
volume of waste generated. Vivreau               The Wild Coast Sun is planning to comply
supplies the group with purified drinking        with the Green Building Association to get
water dispensers and provides an                 their property certified as a zero-waste-
environmentally positive alternative to          to-landfill operation. The lessons learned
pre-bottled mineral water, providing the         and initiatives implemented will be shared
best quality still and sparkling water locally   across our group to improve the waste
via dispensers. This not only eliminates         management at all our operations.
tonnes of waste in the form of plastic
bottles but also minimises the need for
transportation and packaging.

 Wild Coast Sun’s waste management team.

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