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Environmental management performance

Highlights

Increased consumer awareness of global environmental issues and the growing demand for environmentally responsible tourism products worldwide has created significant opportunities for Sun International due to its decision to implement a group environmental management system (EMS) over the past few years.

The past year has been focused on consolidation of the group EMS standard and to the development of key strategies aimed at addressing those environmental challenges that still remain. Particular attention was given to: 
The implementation of more responsible procurement practices and the identification and elimination of harmful food additives and chemicals; 
Increasing local supplier content;
Identification and management of environmental risks;
Improved visibility and communication of the group environmental vision; and
Developing a resident skills base for more effective management of the EMS.
 
Sun International Group Procurement has also concluded a methodology for the assessment of suppliers in terms of environmental compliance. The process of measuring compliance in quantitative terms has begun, with suppliers subject to formal contracts being the first to be measured. When concluded, this project will enable Sun International to encourage suppliers to become aware of their environmental responsibilities and to strive to improve their compliance to environmental regulations and best practice.

Greater management commitment to sustainability and improved awareness by staff and guests has resulted in some significant achievements and the group remains ahead of any of its competitors in this field. The challenges created by climate change and the need for more efficient use of corporate resources in addressing the operational impacts of the group remains a short-term objective, one that will become less difficult as the EMS develops. 
 

Energy and Climate Change 

South Africa’s energy crisis in late 2007 and early 2008 had a marked impact on the group. While actual energy use dropped due in part to forced load-shedding and unplanned outages, the increase in diesel fuel use for substitute power systems has climbed quite significantly. In spite of this, considerable effort has been made to address energy use across the group through improved management systems, the replacement of inefficient lighting systems and improved management of plant and machinery. 
 
Wild Coast Sun Country Club – Africa’s first
environmentally rated golf course
 
Energy consumption has decreased by an average of 13,7% over the past year in spite of the increased occupancies experienced across the group. However, this has been off-set by increased use of generators during this period due to the prevailing energy crisis and which has resulted in an average diesel increase of 21,7%.

Energy efficient lighting is now being used in approximately 57% of lighting systems across the group and plans are in place to ensure that the remaining high-energy systems are phased-out through a combination of design, maintenance and replacement strategies. The following actions contributed to reduced energy consumption this past year: 
An energy efficiency study and improved BMS systems at Sun City 
The replacement of outdated air-handling (HVAC) systems at the Fish River Sun 
The installation of the group’s first solar water heating system at Gaborone Sun 
The development and application of more effective energy management policies and procedures across the group 
Greater use of energy efficient lighting systems across the group 
Increased awareness of energy issues among staff and guests 
 
Our contribution and strategy to limiting global warming will be developed in the coming year to provide the group with the means to address future challenges while continuing to deliver the highest possible standard of service and hospitality to our guests. 
 

Monitoring and Management 

The establishment of environmental management teams has now been completed across the group and this has resulted in improved resource and operational performance. Regular monitoring of consumption and environmental performance is undertaken and this has resulted in timely intervention in areas of concern. The collation of accurate statistics and data for performance measurement has been improved in all properties.

External evaluations and reviews continue to be undertaken by The Heritage Environmental Management Company and where necessary, steps have been taken to address shortcomings in the current EMS and challenges that arise from time to time at individual units.

An important milestone over the past year has been the implementation of a comprehensive Environmental Legal Register system for all properties in the group. This process highlighted potential areas of environmental risk and allowed the opportunity for appropriate remedial steps to be taken as part of the overall monitoring of environmental performance. 
 
Improved water management systems at resorts such as Sun City have proved particularly successful with over 280 megalitres having been saved through improved maintenance of the reticulation system.

Water

This past year has seen the group make particularly good strides in managing its water consumption and an average reduction of 11% has been achieved in spite of increased occupancies.

Improved water management systems at resorts such as Sun City have proved particularly successful with over 280 megalitres having been saved through improved maintenance of the reticulation system. Additional pumping facilities at the resort have resulted in the total elimination of potable water for the irrigation of the golf courses and gardens and greater control over fresh water needs across the resort.

At the Gaborone Sun, improved maintenance and consumption management has resulted in savings of 26% while properties such as the Windmill Casino (15%) and Morula (26%) also showed favourable improvements.
 
 

Waste and Recycling

The management of waste remains one of the group’s most important environmental challenges.

This has been possible through the implementation of a comprehensive waste management strategy aimed at reducing the amount of waste being consigned to local dumpsites across the country. Waste separation programmes have been initiated in all properties and this past year has seen an average waste recovery level of 33% compared to the previous year’s 27%.

The ongoing lack of suitable or licenced municipal dumpsites in the Sun City area continues to place stress on an already strained situation at the resort where the existing dumpsite is about to reach the end of its permitted lifespan. Particular effort is being made to address waste and to increase the amount of recycled material currently being recovered while suitable alternatives to the current practice are found. A decision to stop dumping at the unregistered local site was taken in 2007 until the necessary permits had been obtained by the local authority, placing the burden of responsibility on the resort and increasing the amount of waste being treated on-site. Ongoing efforts are being made to resolve the situation.

Across the group, greater awareness of the need for recycling practices is being achieved and some remarkable effort has been initiated.
 
Waste recycling at Sun City
 
 

Procurement and Supply Chain Management 

Sun International plays an important role in the economies of most of its locations, and efforts to improve the economic impact of our operations have received particular attention in the past year. While the Group Procurement Office is responsible for approximately 35% of all purchases made by the group, the balance represents discretionary expense which benefits local communities and economies directly.

A concerted effort has been made to increase the direct economic benefits of each property through a programme of localisation, which has included the identification of local entrepreneurs and suppliers for the operational requirements of each unit. In some cases, this process has even extended to assistance with the development of local entrepreneurs to meet the needs of specific units. The Falls Resort in Zambia has committed itself to supporting local farmers for their fresh produce needs, resulting in an inflow of almost US$13 000 over the past year to previously marginalised farmers and local businesses. 
The development of a hydroponic garden at the Falls Resort which is run by and on behalf of the local blind community. The facility at the resort – and another in the blind community itself – was initiated by Sun International Zambia and they are responsible for supplying the tomatoes, herbs, cucumbers and other ‘soft’ vegetables for the resort. The balance of the crop is sold in the community with all proceeds going directly to the blind community. 
The introduction of a Farmer’s Market in Livingstone where local farmers are encouraged to bring their produce for sale to the Falls Resort. 30% of fresh produce not already being supplied from the hydroponics farm is sourced from local farmers, with a target of 70% by the end of 2008, directly benefiting the local community and reducing imports from South Africa. 
 
Hydroponic garden, Zambia
 
The introduction of the Group Environmental Procurement Standard in 2007 represents the only effort in Africa to identify, evaluate, rate and actively select environmentally responsible products and services at corporate level. While initial shortcomings were experienced with this standard, the group is now far better equipped to identify, recognise and avoid products or services that pose a threat to our guests, visitors or staff, and which could have any detrimental effect on our surrounding communities. This standard has now been devolved to unit level to accommodate and reflect discretionary procurement practice, thereby ensuring a corporate approach to the issue of responsible supply chain management. 
 

Communication and Development

Our commitment to responsible business practice has led to increased efforts being made to raise awareness of the environmental commitment of Sun International, both internally and to our external clients and visitors.

As part of this process, environmental awareness has been included as a standard element in the employee induction process and this is enhanced with the provision of an annual environmental awareness refresher course for all employees as part of the current training and development programme. Ongoing poster campaigns, information sessions and recognition of important environmental events have all contributed to higher employee participation levels across the group.

Guests and visitors to our resorts are encouraged to support our environmental objectives in a number of ways, including the prominent display of awareness posters, notices and signs; in-room notices and guest letters. Feedback systems have been implemented at a number of properties to encourage comment from guests and visitors in an effort to improve our performance. 
 

Targets and Objectives 

Although the past year has proved a difficult period for targets due in part to the volatile nature of costs associated with water, fuel and energy, we are satisfied that every effort is being made to manage these elements in the most effective manner possible.

Overall group environmental performance has shown an improvement of 4% year-on- year and we are confident that this performance can be improved in the coming year. A group environmental performance target of 79% has been set for 2008/9, an increase of 5% on current levels. This will be achieved through improved monitoring and systems application, human resource development and improved technical support at unit level.

Although targets have been established for the year to come, these will be monitored and adjusted on a quarterly basis as part of normal internal review and management of the overall EMS to ensure the most relevant and achievable results.

A number of environmental objectives were set in the last report and the following chart provides an indication of the group’s performance in meeting these objectives.

Over the coming year, the following objectives have been identified in order to improve the overall environmental performance of Sun International. 
Implementation of an online resource database for improved management at group level 
Formalisation of group environmental policies and procedures 
Introduction of an environmental management development programme for senior personnel 
The development of a global warming strategy at group level 
 
 
Course title Interventions
The implementation of Environmental Legal registers in all units Completed
Completion and implementation of Green Building Standard Draft completed
Complete implementation of EMS across the group Completed
Improve Environmental Awareness levels and skills across the group Ongoing
Improve resource monitoring and reporting systems Ongoing
To achieve group environmental performance targets by December 2008 Ongoing
Introduce environmental performance compliance strategies for business partners Ongoing
Incorporate environmental and sustainability aspects into the group marketing policies Ongoing
Increase public awareness of group environmental policy Completed
Conduct an audit of all bio-diverse and environmentally sensitive areas affected by the group’s operations by July 2008 Completed
To investigate greater use of sustainable energy options for the group Ongoing
To increase waste recovery and management levels across the group Ongoing
 
     
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