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1 Dusit Thani Public Company Limited 2015
2 Corporate Sustainability Report The Company has prepared CSR Report contains economic, social and environmental management and operations policies from January 1 to December 31, 2015, according to Dusit Thani's annual data updating cycles. Data was last updated on December 31, This report was compiled following the CSR Report on the Global Reporting Initiative (GRI) Version 3.1 (G3.1) Level C; the data was collected solely in 2015 and can see in the Company s website Contact information for data collection Corporate Human Resources Dusit Thani Public Company Limited Dusit Thani Building, 946 Rama IV Road Bangkok Telephone
3 Scope of Content Data disclosure in this CSR Report is controlled by Dusit Thani in accordance with the control levels on Dusit Thani Group hotels. Thus, the report covers hotel businesses owned or managed by the Company or subsidiaries and located in Thailand, excluding affiliates, subsidiaries, educational businesses and partners, except in the event that they are identified as under direct management of the Company or their operations might significantly affect the performance of the Company. As such, this report covers policies and operating guidelines for sustainability of Dusit Thani Plc. and eight hotels under its supervision, namely: Dusit Thani Bangkok, Dusit Thani Pattaya, Dusit Thani Hua Hin, Dusit Thani Laguna Phuket, dusitd2 Chiang Mai, Dusit Princess Srinakarin, Dusit Princess Korat and Dusit Princess Chiang Mai. For more information apart from this report, please refer to the 2015 Annual Report. The Company prepared this CSR report according to the CSR Report of the Global Reporting Initiative (GRI), Version 3.1 (G3.1), Level C. The CSR Committee determines the main points, strategies and procedures, gives opinions on significant issues affecting economic, social and environmental sustainability of its businesses, and periodically follows up and evaluates the report so that the content is accurate, complete and transparent. GRI Application level Criteria *Dusit Thani Public Company Limited starts the CSR Report at Level C. Main points and procedures applied in this report are the same as using in Sustainability Report of year
4 Stakeholders Organizational stakeholders are individuals or entities affecting or affected by business operations or activities concerning such stakeholders as shareholders and investors, customers, employees, society and government agencies in connection with impacts on the organization. Company responsibilities to stakeholders Stakeholders Responsibilities 1. Shareholders and investors Transparent management Appropriate compensation for investors Value added to the company 2. Customers Service standards Satisfaction and safety Tourists, business people, seminar attendants, Price-worthy goods and services hotel customers No taking advantage of customers Customer confidentiality Service and after sale service promotions Service information through various channels Wholehearted service before customer requests Keep business continuity in every situation Prompt execution after customer requests 3. Employees Good benefits and remuneration packages Security and employee career advancement Executives, employees and workers Equal opportunities for skill development and training Promotional priorities for current employees 4. Society Communities, people, youth, the needy and educational institution. 5. Government agencies Government agencies and Policy-makers Good working environment Participation in social activities Use of environmental friendly products and services Energy efficiency Efficient waste disposal Creative co-living in communities Promote legal and regulation compliance Disseminate good identity and culture Support government activities Dusit has identified these stakeholders as one of the important elements in order to implement CSR policy. The company operates with responsibility, honesty and transparency keeps playing important role in social responsibility affairs and concerning for stakeholders rights not only the internal stakeholders such as directors, executives and employees but also the external stakeholders such as shareholders, customers, trade partners, creditors, business competitors, social and environment, government and related organizations including their rights given by law and agreement. The Company Board of Directors has set policies of directors, managements and employees conducts in Good Corporate Governance Policy, the Company Business Ethics and Code of Conduct for the Board of Directors, the Executives and the Employees in order to create 3
5 fairness and transparency to all stakeholders. The said policies were disclosed on the Company s website. Major issues and association of stakeholders Important Importance for Dusit Very important Importance for Stakeholders Very important Important Satisfying customers and making them feel safe while receiving services, and ensuring that the services and prices are reasonable. Giving returns appropriate for net profits. Disclosing accurate data and reports. Doing PR and advertising of products and services with responsibilities both both before and after selling Being a good citizen and regulate and operate business with responsible to social and community nearby. Prevent accidents and disasters that might derive from Dusit businesses. Responding to customers complaints. Standards of goods and services. Deliver full services before customer requests. Good governance. Procure environmentally friendly products and services. Take care of employees and give career security and advancement. Use energy efficiently. Compliance with government laws and regulations. Business Context The Company and hotels under Dusit brands aim to run businesses proactively with effective cost management, focusing on increasing the number of management hotels both in Thailand and aboard. Meanwhile, consider to investing in hotel, hospitality educational business with the goal of maintaining its long-term business values based on Thai cultural promotion and expanding to business in CSV (Creating Shared Value) context. The Company foresees that currently, hotel and hospitality business in Thailand confronting the lack of experienced and knowledged personnel situation. Meanwhile, the hotel and hospitality business educational opportunity in Thailand also not enough to serve the needs. Therefore, in 2015 the Company started the Dusit Thani Hotel School project which will increase opportunity to study in hotel and hospitality business in Thailand including in ASEAN and lift up the standard of hotel and hospitality education in Thailand. Moreover, this project also aims to delivery high standard personnel in to hotel industry therefore we can recruit more capability with high quality persons into the business. In addition, in order to regulate and monitor the business operation to perform effectively and efficiently in compliance with fair and transparent basis for the benefit of social sustainability the Company has appointed committees which will responsible to consider and monitor the matters. Dusit also emphasizes social sustainability through employee development and career security, which lead to family and community security. Regards to the education business, the 4
6 Company develops school curricula in order to produce the competent and ethical graduates in demand by employers. Additionally, The Company places great importance on the communities surrounding the hotels and contributes in social and government activities when given the chance. Environmental awareness is instilled in employees, customers and stakeholders; environmentally friendly and energy-efficient equipment and appliances are used widely in hotels so that future generations can continue to enjoy ample resources. Economic Sustainability To achieve the Company s goal to operate fair business with social awareness and maintain long-term business values based on business opportunity expansion and going toward to the business in CSV (Creating Shared Value) context. Therefore, in 2015 the Board of Directors of the Company has approved the Dusit Thani Hotel School project since the project is business that will promote and develop hotel and hospitality business standard of Thailand. Moreover, increase the educational opportunity in hote business for students not only in Thailand but also AEC countries. This will be a significant move for business of the Company and Economic of Thailand. Wage, Salary and Benefit Management Dusit Thani abides by the minimum wage laws of the countries where its hotels are located. Wages of our male and female employees are effectively higher than the minimum wage standards compared to wages offered by local hotels at the same level. In addition, gender is not an indicator of employee wages. At the beginning of April every year, Dusit Thani reviews salaries of its employees based on their KPIs and the Company's performance. Thus, employees of any gender or age receive fair and proper salaries. Moreover, the Company's pay structure is appropriate and comparable to other businesses in the same category. Dusit Thani offers many benefits to employees, such as living expense, annual bonus, two duty meals per day, annual leave, sick leave, provident fund, group life and medical insurance with benefits covering medical expenses private and government hospitals, travel insurance in cases of business trip, funeral allowance and wreath in case of decease of employee's immediate family member, disaster relief funds, benefits of staying in affiliated hotels at employee prices and family and friends rate for employees related and friends, Dusit Thani College tuition fee discount for employees children, laundry discount, discount on wedding reception of employees and their children in hotels in Dusit Thani Group, loans at lower interest rates from participating banks and compensation on retirement. 5
7 Annual physical check-up are also provided for employees by professional physicians from hospitals who will give health advice to employees. Environmental Sustainability Environmental sustainability is the key to management of hotels in the Dusit Thani Group. All hotels under Dusit Thani management have been awarded environmental and social certification by EarthCheck. Dusit Thani promises that it will constantly improve the environment and society using equipment designed in compliance with EarthCheck standards in terms of energy preservation and efficiency, water usage, environmental protection and management, social and cultural management, space planning and management, air quality protection, noise control, wastewater management, solid waste management and storage of materials hazardous to the environment. The Company also complies with laws and regulations on the environment and tries its best to achieve global standards. The Company has appointed regional technical directors so that EarthCheck coordinators and all hotels have a green team working on environmental issues, assessing risks, recording, following up on environmental impacts and setting measures of sustainable environmental and social development. The Company hires local people to work as employees and contractors in its hotels and procures products or services from local communities with environmental awareness. In addition, our employees are encouraged to tell guests, goods and service providers, contractors and goods distributors about the Company's commitment to sustainable environment and social development and our status under EarthCheck activities. In addition, the Company places importance on selecting materials for equipment in hotels that are environmentally friendly and fresh clean food, quality assured by the procurement department, so that our customers can be sure of quality every time they stay at our hotels. Energy In order to reduce electricity use while not compromising our international customer service standards, we are planning to replace incandescent light bulbs with LED light bulbs, in consideration of the environment, within five years from 2012 onwards, and install intelligent lighting control systems in all our hotels in Thailand including system set up of screw-type chillers with variable speed controls, heat-exchange heat pumps, solar water heating systems, use LPG instead of diesel to heat water, and change motors and control systems or replace old appliances with new ones. Employees involved with laundry, kitchens and lifts are trained and educated on how to decrease electricity use in a practical way. Furthermore, we run energy saving campaigns encouraging personnel to take the stairs instead of lifts, turn off computers during the lunch break while they are not using them, use natural light and set automatic shutdown times on air conditioners. We also invite customers and employees to join 6
8 the Earth Hour program every year. In 2015, it was mega joules per guest night usage, 7.9% decreased from Water Since hotel businesses require large amounts of water, we strive for sustainable water management while meeting international customer service standards. Every hotel has concrete water saving measures, such as water pipe and water meter maintenance and replacement, watersaving sanitary ware, faucet and shower installations, use of salt chlorinators for swimming pools and providing water efficiency training to employees. Dusit Thani Hotel Group has ongoing water efficiency plans and activities in order to continuously reduce water use. In 2015, it was liters per guest night usage, 17.7% decreased from Waste Landfill In order to effectively and efficiently reduce and manage waste, the Green Team Committee has initiated a 3 R's Project (Reduce, Reuse and Recycle). Each hotel, including the central office, educates employees about waste reduction such as using both sides of paper, storing documents on hard drives instead of paper, using kitchenware made of durable materials and sorting waste. Every hotel has an effective waste management system and sorts waste into two categories: waste that can be reused through the Reduce, Reuse and Recycle concept, such as used paper, glass, aluminum, and plastic bottles, which are disposed of and processed, food waste, which is composted into organic fertilizer, and waste that is sent to landfills, such as used batteries. Proper waste disposal methods are in place for public safety. In 2015, it was 3.86 liters per guest night usage, 34 % increased from 2014 due to the addional organized banquet in hotels. Summary of Environmental Operations in 2015 Usage Processes in 2015 Compared to 2014 Percentage: Guest Night Electricity 7.9 % Water 17.7% Waste Landfill 34.0 % Number per Guest Night Yearly Goal Electricity consumption (MJ) % % Difference Compared to the Year Before -6.0% +15.7% -7.9% Water (Liters) % Difference Compared to the Year Before -1.5% +32.0% -17.7% Waste to Landfill (Liters) % Difference Compared to the Year Before -1.8% +0.3% +34% - 8% - 10% 7
9 Energy Consumption Mega Joules/Guest Night Water Consumption Liter/Guest Night Landfill Waste Liter/Guest Night
10 In 2015, the Company and hotels in the group performed the following environmental activities: 1. Installed LED light bulbs. At present, over 75% of the work is completed in all hotels in the Dusit Thani Group. 2. Installed water saving equipment. At present, 60% of the work is completed in all hotels in the Dusit Thani Group. 3. Maintained and installed heat-pump (hot water) heaters in hotels. At present, 90% of the work is completed in all hotels in the Dusit Thani Group. 4. Recycled used materials. At present, over 90% of all the hotels practice recycling. 5. Maids set the temperature of hotel rooms at 26 degrees Celsius when there are no customers in the rooms and help save water included using heat-reduced curtain. 6. Laundry is done in a water efficient manner. Amounts of chemicals are reduced and ozone laundry systems are used. Water from washing machines is treated and then used to water landscape and garden. 7. Water chillers have been changed to Screw-type and combined with cross-flow cooling towers. 8. Installing equipment controlling electricity systems and replacing old motors with new ones for increased performance and/or being variable-speed type. At present, over 68% of the work is completed in all hotels in the Dusit Thani Group. 9. Selected ECOLAB chemical supplies for housekeeping, stewarding and laundry, being their eco-line and cold-wash product series. 10. Changed Swimming Pool Sanitizing system to salt chlorinated Saline type using no chemicals but salt for sanitizing. At present, over 80% of all hotels practice this hygienic solution. 9
11 Environmental Report # Items Objectives Goals Operations 1 Electricity Use (EN5) To decrease electricity use > Efficiently decrease electricity use in all types of appliances within 5 years from 2012 onwards and decrease yearly electricity use by 8%. > Replace 100% of old light bulbs with LED light bulbs within five years. 2 Water Use (EN8) Decrease water use > Effectively reduce water use in all activities within 5 years from 2012 onwards and reduce yearly water use by 8%. 3 Landfill Waste (EN22) Reduce waste sent to landfills. > Effectively dispose of waste and reduce amounts of each type of waste in each hotel within 5 years, from 2012 onwards and reduce waste produced each year by 10% > Install lighting systems controlled by key cards and automatic time settings. > Change and install light bulbs, water heating pumps and solar water heating systems. Replace diesel with LPG for water heating systems. > Replace old motors and control systems with new ones for laundry, cooking and lifts. > Train and educate employees so they understand the concept and implementation of energy efficiency. > Examine wear and tear of water pipes and water meters and fix them if necessary. > Select water-saving sanitary ware, faucets and showers. > Use salt chlorinators for swimming pools. > Train and educate employees so they understand the concept and implementation of saving water. > ECOLAB eco-line and coldwash product range to reduce related water and energy consumption. > Organize, Reduce, Reuse and Recycle campaigns > Allocate areas for waste sorting. > Turn food waste into organic fertilizer. > Effectively deliver waste to landfills. > Use environmentally friendly and biodegradable containers such as plastic bags made of corn starch. > Train and educate employees so they understand the concept and implementation of waste reduction. 10
12 Social Sustainability Thanpuying Chanut Piyaoui, founder of Dusit Thani and Dusit Thani College, saw the importance of sustainable social development through education. As a result, Dusit Thani is the only company managing hotels together with a college and proudly deliver graduated quality people into the hospitality business. Dusit Thani also offers opportunities to students to experience in hotel works as trainees. Since all employees are part of social sustainability, their works and English language skills are constantly developed and well prepared for the ASEAN Economic Community (AEC). In addition, the company organizes an Executive Trainee program aim to develop and prepare potential employees for promotion and opportunity to be transferred to hotels under Dusit brand in foreign countries. The Company also offers a Management Trainee program to fresh graduate who are interested in the hotel business in order to gain experiences in every core departments to learn about the Company business as a whole and join the most suitable department after the program completed. Contribution in social activities is another importance mission, as such, the Company organizes yearly activities such as - Blood drives and donations in cooperation with the Thai Red Cross - Children s Day activities which organized for children living near hotels under Dusit brands - Campaigns to promote clean hotels and clean community - Energy saving campaign Personnel Development Employees are precious resources of an organization. Therefore, employee competency development is an important policy. The company allocated 3% of total annual income of each hotel for employee trainings. The training course divided in 2 categories comprise of compulsory training which the Company tailored for each position and career training which is special course that employee can apply with outsource institution for specific development. Training is one of the Key Performance Indicators (KPIs) and will be used as employee evaluation standards. Each employee is evaluated during the fourth quarter of every year. All new employees shall attend orientation training which consist of three programs: the program for new employees, the after-60-day orientation program, and the after-365-day orientation program. Orientation training is aimed to introduce new employees the rules in the workplaces, the organization's policies and products, and the location of each hotel, to prepare them to work with other employees. 11
13 Training plan for each level Type Grade 1-2 Grade 3 Grade 4-5 New Staff Orientation Dusit Guest Experience Dusit Guest Experience M. 1 & 2 Module1 Frontline Leadership Performance Appraisal (Some modules) Behavior-based interview Behavior-based Professional Trainer interview Handing Grievance Operational Trainer Maintain Discipline Handling Grievance Maintain Discipline Compulsory Training Career Training Management courses Related to individual development plan Competitive Training Corrective Training Finance for Non Finance Revenue Management Entrepreneurship Budgeting, P&L, Financial Analysis Leadership Profiling and influencing Situational Leadership the core plus High Impact Presentation Management Courses Related to individual development plan Presentation Skill Training topics based on business and functional needs New Staff Orientation Product Knowledge Position Skill (SOPs) Dusit Guest Experience M.1 & M.2 Frontline Leadership (For Grade 4) Operational Trainer (For Grade4) Competency Development (Related to position skills, language, and computers) Training topics based on business and functional needs Other languages required Up Selling Trainings Handling Complaint Handling Complaint Handling Complaint Sanitation and Safety in the Workplace The Ministerial Regulation requires a hotel to equip its employees with training on sanitation and safety in the workplace. Therefore, hotels in the Dusit Thani Group organize three training topics for employees as follows: 1. Safety officer curricula for supervisors. 2. Safety officer curricula for executives. 3. Safety committee curricula for committee members All hotels have a safety committee in charge of monitoring safety in the workplace, preparing safety regulations, manuals and standards in the workplace, setting up an unsafe working condition reporting system, evaluating safety performance in the workplace, follow-up meetings. 12
14 Proportion of Employees to Workplace Safety Committee in year 2015 Hotel Committee Staff Average (%) Dusit Thani Bangkok Dusit Thani Pattaya Dusit Thani Hua Hin Dusit Thani Laguna, Phuket dusitd2 Chiang Mai Dusit Princess Srinakarin Dusit Princess Korat Dusit Princess Chiang Mai Health and Work Safety For employees to work safely and in order to reduce possible loss, employees are trained about work safety on a regular basis. The workplace safety committee gathers information on the safety of employees, which can be divided into 3 groups: injury rate, lost day rate and absentee rate as follows: Remark: Year No Health and Work Safety Results Number of sickness case from work-related (Case) Number of injury case from work-related (Case) Number of fatalities from work-related (Person) Injury rate from work-related (Injury case /200,000 Man-Hours) Lost day rate (Days / 200,000 Man-Hours) Absentee rate (Days / Total days scheduled to be worked by the workforce) Number of Employees as of December 31 (Person) 2,535 2, Injury : The number of injuries from work-related with at least one day's abstention from work which the data does not include accidents categorized at the first-aid level. 2. Lost Day : Time ( days ) that an employee could not be worked (and is thus lost ) because of injury or sickness from work-related. Record begins the next day. 3. Absentee : Time ( days ) that an employee absent from work because of incapacity of any kind, not just as the result of work-related injury or disease. Permitted leave absences and compassionate leave are excluded. 13
15 Corruption and Human Rights The Company and its subsidiaries support and encourage all employees to learn about human rights and anti-corruption. Each employee must receive training on human rights and anticorruption. All executives and employees must abide to the local laws, customs, traditions and culture, which differ in each country where hotels under Dusit brands operate. Employees must strictly observe human rights according to the Universal Declaration of Human Rights. In year 2015, every employee of the hotels under Dusit Group has received one-hour training session on anti-corruption and human rights achieving the goal set in last year. Services and Customer Satisfaction TripAdvisor 2015 Certificate of Excellence Hall of Fame: a latest certificate have been also recognized by TripAdvisor in occasion of its 5th anniversary that the prestigious Certificate of Excellence award recognizes establishments. This certificate is to honor hotels that have won TripAdvisor Certificate of Excellence all five years and to help reinforce the success of the hotels. Dusit Princess Srinakarin Bangkok has been awarded the TripAdvisor 2015 Certificate of Excellence Hall of Fame, which places the hotel in the top-performing of all business worldwide on TripAdvisor. TripAdvisor 2015 Certificate of Excellence: Certificate of Excellence have been recognized by the world's largest travel site TripAdvisor s website. This website help owned well planning and create their great trip of travelers. This award Trip Advisor 2015 Certificate of Excellence celebrates hospitality excellence as Hotel businesses line to Premium Restaurants and is awarded to establishments that consistently achieve outstanding traveler reviews on the TripAdvisor s website. To qualify for the Certificate of Excellence, businesses must maintain an overall rating of four out of a possible five as reviewed by travelers on TripAdvisor and receive positive traveler reviews. Additional criteria include the volume of reviews received within the last 12 months. Leading hotel chain Dusit International have celebrates achieved the Trip Advisor 2015 Certificate of Excellence as follow Dusit Thani: Dusit Thani Bangkok, Dusit Thani Pattaya, Dusit Thani Hua Hin, Dusit Thani Krabi Beach Resort, Dusit Thani Maldives, dusitd2 chiang mai, dusitd2 phuket resort, Dusit Princess Chiang Mai, Dusit Princess Korat, Dusit Princess Srinakarin and Pathumwan Princess. World Luxury Hotel Awards: awards are established as a celebration of ultimate achievement in service excellence. They are about rewarding and congratulating hotels and spas that have excelled beyond the normal call of duty and aim to raise standards within the luxury hotel industry by giving recognition to hotels for world class facilities and service excellence, which are presented to luxury hotels in different categories on a country, continent and global basis. In 2015, the grand annual World Luxury Hotel Award Gala Ceremony was held on 14
16 October 24, 2015 at Harbour Grand Hong Kong. Leading hotel chain Dusit International have celebrates accomplished the awards as follows; Luxury Diplomatic Hotel 2015, Dusit Thani Hua Hin Luxury Romantic Hotel 2015, Dusit Devarana New Delhi Luxury Business Hotel 2015, dusitd2 Nairobi Luxury Boutique Hotel 2015, dusitd2 Nairobi Dusit Thani's service philosophy is to be humble and sincere to its customers, which is why hotels in the Dusit Thani Group Thai hotels, managed by Thais, are internationally recognized. This brings pride to all Dusit Thani executives and employees alike. We will help strengthen Dusit Thani so its hotels retain their status as the world's top hotels. 15
17 Performance Indicators Indicator Description Page Economics EC5 Range of rations of standard entry level wage compared to local minimum wage 5-6 at significant of operation. Environment EN22 Total weight of waste by type and disposal method EN5 Energy saved due to conservation and efficiency improvements EN8 Total water withdrawal by source Society SO3 Percentage of employees trained in organization s anti-corruption policies and procedures. 14 Labor Practices and Decent Work LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs. 13 LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities compared to previous year. 13 LA10 Average hours of training per year per employee by employee category Human Rights HR8 Percentage of security personnel trained in the organization s policies or procedures concerning aspects of human rights that are relevant to operations Product Responsibility PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
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