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The Inheritance – 2017/2018
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The Inheritance – 2017/2018
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Contents 1 EXECUTIVE SUMMARY ................................................................................................... 3
1.1 Statement from the Top Management ........................................................................ 3
1.2 Organizational Profile ................................................................................................. 4
1.3 Summary of Report /Risks & Opportunities .............................................................. 5
2 CORPORATE CONTEXT .................................................................................................. 15
2.1 Nature of business and activities /Main Products & Services .................................. 15
2.2 Products and Services ............................................................................................... 16
2.3 Major Markets and the Position of Heritance Kandalama in the Tourism Market .. 19
2.4 Organizational Structure ........................................................................................... 22
2.5 Geographic Spread and Scope of Activities............................................................... 23
3 REPORT PROFILE ........................................................................................................... 24
3.1 Reporting Period ....................................................................................................... 24
3.2 Reporting Scope ........................................................................................................ 24
3.3 Reporting Entity ........................................................................................................ 26
3.4 Boundaries and Limitations ...................................................................................... 26
3.5 Assurance .................................................................................................................. 26
4 CONTENT INDEX ............................................................................................................ 27
5 Stakeholder Engagement.................................................................................................. 31
6 MANAGEMENT APPROACH ........................................................................................ 333
7 PERFORMANCE INDICATORS .................................................................................... 355
7.1 economic performance indicators ........................................................................... 355
7.2 environmental perforamce indicators ..................................................................... 40
7.3 social performance indicators ................................................................................. 555
8 BIBLIOGRAPHY ............................................................................................................ 644
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1 EXECUTIVE SUMMARY
1.1 Statement from the Top Management
Sustainability has emerged as an important component to our everyday lives, directly
shaping our daily activities – the products we purchase, the materials we recycle, and
our climate change, and many more. While its exact definition may vary, the concept
of sustainability is generally recognized as integrating the environmental, social and
economic aspects of our lives, and aims to strike a balance over the long term. As a
five-star rated Resort, Heritance Kandalama is following its best sustainable
practices on the process and assist clients in developing sustainable approaches to all
the challenges, over the past 25 years, and many more to continue in future.
Heritance Kandalama Being the strongest pioneer for the Eco-friendly resort, its
quality and success are rewarded and recognized many times by different
organizations worldwide.
I take most pride in the fact that as a resort we have taken lots of initiatives, actions,
methods and practices to influence more sustainable environment. Resort continued
to benchmark against the Green Globe 21, Earth Check Silver certification and
improvement system that assist the international travel and tourism industry to
attain sustainability. Through the implementation of productivity initiatives such as
7S, has enabled the resort to optimize its return to the nation. Over 55% of the
Heritance Kandalama staff originate and live within close approximately of the resort
and in border and we empower the people around the resort, in Kandalama and
Dambulla by sourcing and procuring a range of services and products for the resort.
I take this opportunity to thank all who have supported on continuing this
sustainable joinery any many more years to continue the same because we ‘Heritance
Kandalama’ believe that there’s no business if it’s not sustainable. In conclusion, I
would like to thank our Heritance Kandalama family of specialists for their great
work. They are dedicated to our achievements in sustainable way.
Heritance Kandalama is always continued to grow and uphold with sustainability
practices in current and future business.
Priyan Wijerathne General Manager
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1.2 Organizational Profile
Heritance Kandalama believes in Development than the Growth, Sustainable
Development than Development.
Vision
To be the global leader in sustainable tourism which attracts intelligent stakeholders
to experience high quality eco luxury products and services.
Mission
To delight all stakeholders by practicing world class business ethics and values while
continually improving business viability through development of the human asset.
Objectives
1. Profitability
2. Cost Reduction
3. Efficiency Improvement
4. Environmental Stewardship
5. Societal Stewardship
6. Product Stewardship
Strategies
1. Product diversification
2. Value innovation
3. Discounts on volume
4. Customer database management and continual customer engagement
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5. Identifying unique customer needs through their domestic servants, drivers
etc.
6. Effective vendor relation to maximize revenue and profits of both parties.
7. Embedding GP concepts to products and services
8. Sourcing of material from the local community
9. Realistic budgeting
Values
1. Character first in employment
2. Sustainability at any cost
3. Share smallest to the biggest benefit with community
4. Genuine stakeholder care
5. Overcome challenges through discipline
6. Transform problems and challenges in to opportunities
1.3 Summary of Report /Risks & Opportunities
This report consists of Heritance Kandalama’s business activities, up to which extent
the hotel operation is sustainable, how the risks are calculated, minimized and
recover over a period of time making least adverse impacts to its environment and
society. There are 50 criteria defined by the national green reporting system (NGRS)
of Sri Lanka and Heritance Kandalama is reporting under 50 criteria with maximum
available data and analyzed information. Graphs (bar, line) have been utilized to
make readers better understand on the matters trying to disclose by the organization.
The key impacts identified by the resort are quality of products and services, use of
energy, fresh water and disposal of solid and liquid waste and emissions by usage of
especially energy.
Main risks associated with the business are strategic, financial and operational. Since
the organization is located in an environmentally sensitive area, the management
pays a great attention on its adverse impacts to the environment. The opportunities
that are identified by the organization remain very similar to the Aitken Spence Hotel
Holdings Plc which is the mother company. However, the management strongly
believes that the environmentally friendly tourism will play a major role in the global
tourism market in order to give sustainable socio-economic benefits to an
organization and a country.
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The risk management
With the end of the 30 year civil war in Sri Lanka and the stabilization of the impacts
of the global recession the world tourism industry continued in its path to recovery
which is highlighted by the major increase in inbound tourist arrivals throughout the
world. This represents an environment where opportunities for growth are immense.
Therefore Heritance Kandalama has identified the importance of adopting a
structured risk management approach which enables the resort to identify and
evaluate new growth opportunities and the risks involved.
The resort identifies three main categories of risk
Strategic risk
Risk associated with future business plans and strategies of the resort. These include
plans for improvement of quality and expansion of customer experience in
diversified areas.
Operational risk
Risk caused due to day to day business functions.
Financial Risk
Risk that the company may not have sufficient cash flows to meet financial
obligations.
Risk Management Structure
With the increasing number of avenues available for growth, the resort considers risk
management as an important tool when evaluating new projects. Risk awareness is
Risks
Identification
and Recovery
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embedded in to our culture due to the well structured and disciplined approach to
risk management which aims to identify risks and implement mitigating strategies to
nullify the impact. The approach is depicted above in graphical form for the easy
understanding of its all stakeholders in taking decisions.
Strategic Risk
Business Risk Impact Risk Management Strategies Risk Rating
Failure to implement
strategic plans,
Revenue
improvement & cost
saving initiatives and
undertake profitable
investments.
Reduced revenue, cash
flow and profitability
Impedes future growth
Regular meetings are held by the
top management of the resort to
formalize future strategies and
plans and to revise and update
plans, taking in to consideration
the changing circumstances of the
tourism market and the product
offered by the Resort.
Medium
Socio-Economic,
Political &
Environmental Risk
Impact Risk Management Strategies Risk Rating
Risks relating to the
Political and
Economic climate
including decrease in
domestic and
international travel.
Lowering the
competitiveness of the
resort’s product
offering on the
national and
international market.
Reduction in revenue
and increase in cost
thereby reducing cash
flow and profitability.
Possible restrictions
on movement of
capital.
The resort works closely with
lobby groups, relevant authorities
and trade associations though
Aitken Spence Hotel Holdings
PLC to ensure that the best
interests of the tourism industry
are fulfilled at all times.
Medium
Risks from Natural or
Man-made disasters
Loss of assets resulting
in significant losses to
the group
Transferring risks to third parties
through insurance policies as far
as possible. The adequacy of
insurance covers are regularly
reviewed and adjusted when
necessary.
Appropriate contingency plans
and disaster management systems
are adopted to safeguard the
Medium
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assets of the company.
Competitive Risk Impact Risk Management Strategies Risk Rating
Risks from
competitive actions
from existing market
participants and new
entrants
Reduced market share
and rates reducing
revenue, cash flow and
profitability
Increased promotional
expenditure
The Resort’s service excellence,
committed and award winning
staff, uniqueness of environment
related property, innovative
products and service
developments and the strength of
its brand name
Leveraging the Resort’s long-term
relationship with major tour
operators, development of
repetitive business from Sri
Lankan Customers and the
strength of the sister company in
the travel industry (Aitken Spence
Travels Ltd.) gives the group a
significant advantage over its
competitors.
Medium
Operational Risk
Reputation Risk Impact Risk Management Strategies Risk
Rating
Risks to the Resort’s
reputation and
Brand image
Decline in the
customer base
resulting in reduced
market share,
revenues, cash flow
and profitability.
Deterioration of
company image.
The hotel employs a well
defined quality assurance
system to ensure the highest
quality of service. At
operational level, systems are
in place to promptly address
any issues/complaints brought
about by the clients and to
take proactive steps to
mitigate similar occurrences in
the future
Regular training sessions are
held to train and educate staff
on quality standards and new
Medium
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developments in the
hospitality industry ensuring
the quality of the hotel’s
products offering.
Deployment of an effective
compliance system, the resort
is committed to best
environmental practices to
ensure strict compliance with
local regulations and
maintains harmonious
relationships with the
localities in which the hotels
operate.
The top management ensures
that the company strictly
complies with all relevant laws
and codes of best practices and
is not involved in any
unethical business practices. A
code of Ethics Booklet is given
to all executives of the
company and they confirm
their acceptance of the same.
Fraud Risk Impact Risk Management Strategies
Risks from
breakdown of
internal controls,
processes and
procedures
Disruption to the
normal course of
operations.
Wastage of
management time
and resources
Regular reviews of the
effectiveness of internal
controls by the top
management and the
corporate audit department
carried out to ensure the
robustness of internal
controls.
External auditors are also
engaged to carryout internal
audit wherever necessary.
The Resort uses
Medium
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comprehensive general &
specific reporting and
monitoring systems to identify
access and manage risks.
Operations Risk Impact Risk Management Strategies Risk
Rating
Risk of default by
debtors
Reduced cash flow
and profitability
Through the credit policies
and stringent controls to check
credit worthiness prior to
granting credit
Comprehensive systems are in
place to monitor and review
debtors. The resort conducts
excellent working capital
practices and take legal or
industrial action where
appropriate. Steps are taken to
obtain advances from travel
agents and tour operators
wherever possible.
Medium
Risks associated
with sourcing
inputs of the hotel
Law quality raw
materials could
adversely impact the
hotel’s brand image.
A specialized Central
Procurement Division and the
in house procurement
coordinator make sure lower
the risks by frequently
coordinating with local and
international suppliers.
Employee Risk Impact Risk Management Strategies Risk
Rating
Risk of not being
able to attract
employees with
good character,
high quality
Reduced
productivity and
stakeholder
satisfaction
Significant resources are
invested in strengthening the
hotel’s human capital through
the deployment of the latest
Human Resource Information
Systems, regular staff training
& development, succession
planning and fostering a
Medium
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performance-based culture
Technology Risk Impact Risk Management Strategies Risk
Rating
Risks relating to
Information
Technology and
Security
Loss of revenue and
business
opportunities due to
outdated software
resulting in
reduction in cash
flow and
profitability.
Loss of key
confidential
information to
competitors
resulting in reduced
market share
Loss of data and
transactions
The resort has implemented
the latest in Property
Management and Reservation
software, along with the
Enterprise Resource Planning
software, facilitating faster,
more accurate information for
decision making. Regular
review of the systems and
upgrades where appropriate
Implementation of a
comprehensive IT policy
within the hotel, supported by
adequate systems and
controls, ensure the safety and
security of data. Contingency
plans are in place to mitigate
any short term loss on IT
services.
All employees are bound by
the code of conduct to
safeguard the group’s
information, irrespective of its
physical form.
A dedicated IT Manager is in
place to support all IT related
aspects of the resort.
Legal Risk Impact Risk Management Strategies Risk
Rating
Risk of legal actions
due to non
High cost of legal
and penalty fees
A comprehensive control
system is in place
Low
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performance of
legal and statutory
requirements
resulting in reduced
profitability and
image.
supplemented by the
Accountant and cost
controller, Environment
Management Representative,
the HR Manager and the
corporate legal division are
acting to ensure all statutory,
legal and voluntary obligations
are met in all transactions
Financial Risk
Credit Risk Impact Risk Management Strategies Risk
Rating
Risks from high
operational gearing
Significantly reduced
cash flow and
profitability during low
occupancy periods.
The Resort’s cost structure has
design in such a way that a high
level of flexibility is employed to
mitigate the risks through rental
agreements, outsourcing
noncore operations.
Low
Foreign Exchange
Risk
Impact Risk Management Strategies Risk
Rating
Risks from adverse
exchange rate
fluctuations
Reduced cash flow and
profitability
Negotiation of room rates in
stronger currencies. Strong
counterparty backing and use of
sophisticated financial
instruments where appropriate.
Matching outflows with inflows
of the same currency to the
extent that is permitted by the
prevailing laws.
The treasury division of the
parent company monitors
exchange rates on a daily basis
and advices the Resort on best
rates to obtain from foreign
currency conversions
Considering the possibility of
contracting in local currency
Low
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with Local Travel Agents instead
of foreign currency in order to
transfer the possible exchange
rate risk.
Interest Rate Risk Impact Risk Management Strategies Risk
Rating
Risks from adverse
interest rate
fluctuations
Reduced cash flow and
profitability
Entering in to loans with interest
rate caps mitigated his risk and
other instruments to minimize the
volatility of cash flows.
Working closely with the parent
company treasury department to
negotiate favourable terms and
conditions for loan facilities
obtained.
Mediu
m
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Footprints and
Milestones - Heritance
Kandalama
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2 CORPORATE CONTEXT
2.1 Nature of business and activities /Main Products & Services
The resort is a fully fledged fives star property, especially distributing the new
concept of eco luxury for the niche market of the national and international tourism.
The resort consist of 152 fully air-conditioned rooms with the breathtaking view of
Sigiriya Rock Fortress, Dambulla Cave Temple, the Kandalama Tank which dates
back to 17th century AD and the pristine forest which is the tail end of knuckles range,
Matale. The product was introduced to the market in the year 1994 after investing
more than LKR. 850 millions and was fully refurbished in the year 2005 spending
LKR. 650 millions to maintain the product quality and customer expectations. State
of the Art Conference Facility is the latest value addition to Heritance Kandalama.
The conference Centre has dedicated 5 breakup rooms, a dining room to be utilized
when a high profile, tight scheduled business meeting is taken place. It is
complemented with the latest audio visual, lighting and stage facilities. The exclusive
car park of the conference centre can accommodate more than 75 cars at a time. The
investment for the conference centre has amounted to LKR. 350,000,000. The resort
has 6 room categories, namely Superior, Luxury, Deluxe, Suite, Luxury Suite and
Royal suite to provide with a diversified range of intelligent luxury to its
stakeholders. Fully air-conditioned two restaurants, three bars, a coffee lounge and
an Arrival Lounge provide the customers the convenience of experiencing a variety of
food and beverage wrapped with the genuine local hospitality. The resort serves a
range of world class food products, mainly buffet meals which the price starts from
LKR.3,500. The other dining experiences that are offered to its customers spread
between LKR 16,100 and LKR. 64,400. Things like Dining at Deshamanya Geoffrey
Bawa’s table have gained a very high popularity amongst customers. Although the
food products are relatively expensive than the resort’s competitors, the pricing
strategy remains unchanged due to the value additions and continual quality
improvement in the whole process, thus gaining higher profit margins by its
operation.
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Graph 01
2.2 Products and Services
The Global Perspective
WTTC’s latest Economic Impact Research shows that growth in world Travel &
Tourism was robust in 2018 despite many economic challenges. The total
contribution from Travel & Tourism to the world GDP by 10.4% in 2017/2018. This
was faster than growth of the world economy as whole. And also faster than many of
other industries. Tourism direct contribution to GDP in 2017/2018 was USD 2.57
trillion(3.2% of total GDP) and 2017 USD 2.31 Trillion and demonstrated a clear
growth of 11.25% and the industry directly supported 118 million jobs direct
employment opportunities which represents 3.8% total employment in the world .
When considering the total economic impact of direct, indirect and induced the
contribution was more than USD 8.2 trillion in the year 2017/2018 as against
7.61Trillion in the year 2016/2017. After a long downturn in the tourism market in
the world due to financial recession in developed world, the social unrest in Middle
East and some internal issues in Sri Lanka, economy gained a rapid upswing during
the period under review. Despite all the challenges, the International labour
Organization’s report on international tourism, expects global tourism to provide 413
million jobs by 2028.
The Local Perspective
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Based on the information of Sri Lanka Tourism Development Authority’s statistical
data report, there have been 2,116,407 arrivals in 2017 and 2,333,796 in 2018 to Sri
Lanka showing a positive change of 10.3%. Heritance Kandalama during the same
period has welcomed 34,264 foreign tourists in 2017 and 37,027 in 2018 depicting a
positive change of 7.46% during the year 2018. In comparison to the year 2017 the
capture rate has been increased and demonstrate the higher level of customer
satisfaction.
Sri Lanka, for the first time in her history received more than 830,000 foreign
tourists to the country and has been estimated to contribute LKR. 60 billions to the
national economy. Heritance Kandalama also has made a remarkable contribution to
the national economy even though the hotel was partially closed for renovation and
for constructing a conference facility. It is noteworthy to analyze the local tourism
trends to understand, and direct the tourism business through the unlimited and
unexpected challenges to come. The graph 1 compares the similar period of 2017 and
2018 in order to understand the tourism trend. In contrast to 2017, year 2018 has
shown a very positive signs of arrivals with an overall positive change Which are
giving a clear understanding, the tourism in Sri Lanka is at a continuous upward
trend. (graph 2)
When comparing arrivals to Sri Lanka and Heritance Kandalama, it shows an
interesting contrast in the graph 2. The arrivals to Sri Lanka from the counties like
U.S.A,Saudi Arabia Denmark, Poland have shown very positive change whilst
Heritance Kandalama is gaining the attention of European, Middle east, American &
Australian.
Graph 1 - Percentage Change in Arrivals 2017-2018
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Products at a Glance
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2.3 Major Markets and the Position of Heritance Kandalama in the Tourism Market
Despite global and local challenges, the resort has been able to secure a strong
market condition capturing more than 26.6% of the national arrival to the resort
during the year 2018. The hotel served more Sri Lankans than the foreigners, as it
acclaims for attraction of local tourists. Heritance Kandalama, as always, has
attracted Sri Lankan tourists and has been continuing to sustain and improve the
contribution from Sri Lankans. As depicted in the graph 3 the Resort has entered to
the markets like Europe, Australia, Japan, and Emirates during the period under
review. Marketing through the web, in ways of search engine optimization, link
distribution, have contributed immensely towards entering to the new markets and
gaining higher level of revenue margins due to directly accessing consumers,
enhancing B to C business though the web. The change between the similar periods
of 2017 and 2018 demonstrates in the graph 4. Saudi Arabia, Denmark, Italy,
America have shown significant positive change during the period under review.
Graph 3
Market Presence of the Heritance Kandalama 2018 Graph 2
Graph 4
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Occupancy and Percentage Change 2017/2018 Heritance Kandalama
Graph 4
The occupancy trend of the Resort has shown a significant positive change when
comparing the similar period of 2017 and even on monthly basis. In parallel to the
arrivals to Sri Lanka the arrivals to Heritance Kandalama shows a significant
difference whilst the resort has been demonstrating the highest ever occupancy
percentage (The percentage is calculated by considering the total number of rooms in
the inventory as 152 rooms) during the period under review.
The most important parameter to demonstrate the economic impact from tourism is
the revenue per occupied room and the graph 6 depicts as to how the resort have
increased its value in order to sell at a better price and gain more advantages to the
resort and Sri Lanka as a whole.
Graph 6
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Major sites and operations (production places)
N/A
Name
Kandalama Hotels (PVT) Ltd.
Legality
Private Limited Company incorporated in March 27, 1992
Company registered number
PB -151 - PV
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2.4 Organizational Structure
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2.5 Geographic Spread and Scope of Activities
The Resort does not operate in different locations.
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3 REPORT PROFILE
3.1 Reporting Period
This report covers the calendar year 2018 (From January– December) and
comparison is done as much as possible with the same period of 2017 in order to give
a proper understanding to the stakeholders of the organization.
3.2 Reporting Scope
The report covers the activities which affects significantly to economy, environment
and society to provide sufficient information to make effective decisions by the
stakeholders. Major concerns of the Management and the Board of Directors of the
mother company Aitken Spence Hotel Holdings PLC are extraction of Fresh water,
Use of Energy, Conservation of Bio Diversity, Emission of Carbon, disposal of Solid
and Liquid Waste.
The resort has its own EMS, FSMS,QMS and EnMS, certified by the ISO 14001, ISO
22000, National Five Star Rating and ISO 50001 respectively. Hence, the resort has
used to maintain day-to-day reports to support the above management systems and
on the other hand the mother company of Heritance Kandalama is reporting under
GRI level B, thus providing proper information is an inherent operation of the
organization. However, a better structure and customized formats were developed;
distributed to data owners gathered data and analyzed.
The achievements made in the reporting period (January – December 2018).
Name of the
Award
Awarding
authority Picture Achievement
Sri Lanka
Tourism Awards
2018
Sri Lanka Tourism
Development
Authority
The Best Host Hotel
Sustainable and Green
Practices
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South Asian
Travel Award
2018
SATA Leading Eco Hotel/ Resort in
South Asia
Leading Eco Hotel/ Resort in
Sri Lanka
7S and HR
Excellence
Awards
2017
Aitken Spence
PLC
Winner -
Group 7S & HR Excellence
Award
Winner -
Group HR Excellence Award
Winner -
7S & HR Excellence Award -
Hotel Sector
Winner -HR Excellence
Award - Hotel Sector
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3.3 Reporting Entity
This report covers all operations of Heritance Kandalama (Kandalama Hotels (Pvt)
Ltd.) which includes;
Front Office
Housekeeping
Food & Beverage
Maintenance & Engineering
Staff Village
Accounts & Sourcing
Human Resource
3.4 Boundaries and Limitations
This report covers the activities of whole organization, as an individual entity
although it has a mother company (Aitken Spence Hotel Holdings PLC) overlooking
the operation. The reporters have taken maximum care in covering total operation
and performance during the period under review.
3.5 Assurance
The information provided in the report has been internally assured to provide a set of
dependable data and information for its diversified stakeholders in order to take
effective decisions and forecast their future engagement with Heritance Kandalama.
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4 CONTENT INDEX NGRS
No National Green Reporting System Indicator Page
1 Strategy & Executive Summary (1.1-1.2.1) 1-10
2 Corporate context (2.1-2.7) 15-23
3 Report Profile (3.1-3.5) 24-26
4 Content Index 27-30
5 Stakeholder Engagement (5.1-5.4) 31-32
6 Management Approach(6.1-6.4) 33-34
7 Performance Indicators 35
7.1 Economic Performance Indicators 35-39
ECON 1 Direct Economic Value Generated 35
ECON 2 Coverage of the Organization’s Defined Benefit Plan Obligations 37
ECON 3 Significant Financial Assistance received from the Government 37
ECON 4 Policy practices and Portion of Spending on Locally –Based Suppliers at Significant
38
ECON 5
Development and Impact of Infrastructure Investment and
Services Provided Primarily for Public Benefit through
Commercial, In-kind or Pro-bono Engagement. 38
ECON 6 Understanding and Describing Significant Indirect Economic
Impacts Including the Extent of Impacts 39
7.2 Environmental Performance Indicators 40-54
ENVT 1 Materials used by weight or volume 40
ENVT 2 Percentage of Materials used that are Recycled Materials 41
ENVT 3 Direct energy Consumption by Primary Energy Source 41
ENVT 4 Indirect Energy Consumption by Primary Energy Source 42
ENVT 5 Energy saved due to Conservation and Efficiency Improvements 42
ENVT 6
Initiatives to provide Energy-Efficient or Renewable Energy
based Products and Services and reductions in Energy
Requirements as a result of these Initiatives 42
ENVT 7 Initiatives to reduce indirect Energy Consumption and
Reductions achieved 43
ENVT 8 Total Water withdrawal by Source 44
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ENVT 9 Water source significantly affected by Water usage 44
ENVT 10 Percentage of total Water usage that is Reused or Recycled 45
ENVT 11
Location and size of Land owned, Leased or Managed in or next
to Protected areas or areas of high Biodiversity value outside
protected area 45-46
ENVT 12 Description of significant impacts of Activities, Products and Services on Biodiversity in protected areas or areas of high Biodiversity value outside protected areas.
46
ENVT 13 Total direct and indirect GHG emissions by weight 46-49
ENVT 14 Initiatives to reduce Greenhouse Gas emissions and Reductions
achieved 50
ENVT 15 NO x SO x and other significant air emissions by type and weight 50
ENVT 16 Total waste Water discharge by quality of Effluent and Volume 51
ENVT 17 Total weight of waste by type and disposal method 52
ENVT 18 Total number and Volume of Significant Spills 52
ENVT 19
Weight of transported, exported or treated waste deemed
hazardous under the terms of the basel convention annex i,ii,iii
and viii and percentage of transported waste ship internationally 52
ENVT 20 Initiatives to mitigate environmental impacts of products and
services, and extent of impact mitigation 53
ENVT 21 Percentage of products sold and their packaging materials that
are reclaimed by category 53
ENVT 22
Monetary value of significant fines and total number of
non-monetary sanctions for non-compliance with environmental
laws and regulations 54
ENVT 23 Total environmental protection expenditures and investments by
type 54
ENVT 24 Promotion of best practices for Sustainability Production and
Consumption along the supply chain 54
7.3 Social Performance Indicators 55
SOCL 1 Total workforce by employment type, employment contract and
region 55
SOCL 2 Total number and Rate of Employee Turnover by age Group,
Gender and Region 56
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SOCL 3 Benefits provided to full-time employees that are not provided to
temporary or part-time employees by major operations 57
SOCL 4
Percentage of total workforce represented in formal joint
management-worker health and safety committees that help
monitor and advance on occupational health and safety programs 58
SOCL 5 Rates of Injury, Occupational Diseases, Lost Days and
Absenteeism, and total Number of Work related Fatalities 58
SOCL 6
Education, Training, Counseling, Prevention and Risk-Control
Programs in place to assist Workforce Members, Their Families
or Community Members regarding Serious Diseases 59
SOCL 7 Average Hours of Training per Year per Employee by Employee Category
59
SOCL 8
Programs for Skills Management and Lifelong Learning that
Support the continued Employability of Employees and assist
them in Managing Career Endings 60
ENVT 9
Composition of Governance Bodies and breakdown of employees
per category according to Gender, Age Group and other
indicators of Diversity 61
SOCL 10 Public Policy Positions and participation in Public Policy
Development and Lobbying 61
SOCL 11 Total value of Financial and in-kind contributions to political
parties, politicians, and related institutions by Country. 61
SOCL 12
Monetary Value of Significant Fines and Total Number of
Non-Monetary Sanctions for Non-Compliance with Laws and
Regulations 61
SOCL 13
Total Number of Incidents of Non-Compliance with Regulations
and Voluntary Codes Concerning Health and Safety Impacts of
Products and Service During Their Life Cycle, by Type of
Outcomes.
62
SOCL 14
Type of Products and Services Information Required by
Procedures and Percentage of Significant Products and Services
Subject to Such Information Requirements. 62
SOCL 15
Total Number of Incidents of Non-Compliance with Regulations
and Voluntary Codes Concerning Product and Service
Information and Labeling, by Type of Outcomes 62
SOCL 16 Practices Related to Customer Satisfaction, Including Results of
Surveys Measuring Customer Satisfaction 62
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SOCL 17
Programs for Adherence to Laws, Standards, and Voluntary
Codes Related to Marketing Communications, Including
Advertising, Promotion and Sponsorship 63
SOCL 18
Total Number of Incidents of Non-Compliance with Regulations
and Voluntary Codes Concerning Marketing Communications,
Including Advertising, Promotion and Sponsorship by Type of
Outcomes
63
SOCL 19
Monetary Value of Significant Fines for Noncompliance with
Laws and Regulations Concerning the Provision and Use of
Products and Services 63
SOCL 20
Life Cycle Stages in which Health and Safety impacts of Products
and Services are assessed for improvement and Percentage of
Significant Products and Service Categories subject to such
Procedures
63
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5 Stakeholder Engagement
The Stakeholder Map
Connecting with varied stakeholders is a vital aspect of the Resort’s operations. As a
responsible business, the Resort understands that its actions will affect others and
that their actions in turn will reflect back upon the Resort. As a part of the process of
managing social and environmental sustainability, Heritnace Kandalama is
cognizant of the need to increase engagement with stakeholders, making itself more
open and more accountable to a wider range of interested parties. Thus, effective
stakeholder engagement assists the Resort to understand the current emerging
challenges faced by its stakeholders and in turn challenges the Resort to develop
mutually beneficial solutions. This process also entails communicating results
clearly, openly, and thoroughly, a critical criteria, as the Hotel’s business depends
upon credibility, and on the trust placed in the Resort by its stakeholders.
The table below endeavours to showcase the array of stakeholder groups engaged by
Heritance Kandalama and strives to outline the reasons for engaging with the
stakeholder and the engagement channels used.
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Stakeholder(
What)
Basis(Why) Channel(How) Frequency
(When)
Suppliers To ensure that the Resort can maintain
predetermined standards of service
and to transpose the sustainability
ethics
Meetings /informal
discussions
Annually
/When visited
hotel.
Tour
operators/Tr
avel
Agents/Corp
orate
Customers
To ensure that the expected customers
are attracted and to keep the updated
with the new policies and procedures.
Meeting at their own
locations by the Marketing
Team
Every three
months
Guides/Driv
ers/Travel
Assistants
They provide information to clients to
keep them abreast of the hotel
Leaflets/Meetings/Through
tour operators
Daily
Schools Identified as the most important group
of people in order to pre arrange
employees to join
Visit schools, conduct
presentations, invite for site
visits
Monthly
/Daily
Universities
and Other
higher
educational
institutions
Provided abreast of knowledge by
training sessions and allowing them to
conduct project reports, assignments
and Thesis thereby improving the
potential knowledge base in the
economy
Visit universities and other
higher educational
institutions, help in
conducting assignment,
projects and writing thesis.
Ongoing, on
request
Employees Employees are a very strong link to
provide accurate information to the
customers and many of other
stakeholders
Training, Performance
Evaluation, voluntary
circles
Ongoing
Customers To ensure green consumerism and to
develop a sustainable consumer base
for future business
Directories, Notices,
Informed at check-ins,
communicate through tour
operators/ Travel Agents,
Tent Cards, leaflets
Ongoing and
Some are
updated
annually
Local
Government
Authorities
To assist in developing policies where
long term sustainability is handled and
gain national policy makers attention
toward sustainable tourism.
Assist in developing
management systems,
productivity techniques
Ongoing,
Project Base
Local
Community
To blend the business with the
community and gain more positive
attraction of the stakeholder
Meet community leaders,
invite community leaders
for internal activities
Ongoing
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6 MANAGEMENT APPROACH
Sustainability is fully integrated into the business concept of Heritance Kandalama
and in fact the hotel pioneered in bringing the sustainability in to the business
activities in Sri Lanka in the year 1994. Heritance Kandalama, then it was called
Kandalama Hotel is one of the very first organization in Sri Lanka to conduct
Environment Impact Assessment (EIA) and has evolved with 3R principle to 7R
principle, a way of life in contributing to the triple bottom line, 5S to Green
Productivity. The environmentally friendliness, social sensitivity, economic viability
is an inherent achievement of the resort from its inception which now have become a
buzz word in the business scenario. In long term, the Resort views its sustainability
focus to be a key not only to the financial and commercial interest of the hotel but
also to Sri Lanka as a destination. With a growing number of travellers looking
towards green destinations in an effort to minimize their own carbon footprints, the
resort will be a forerunner in assisting Sri Lanka to achieving a green destination
status. Furthermore, by protecting the environment and the culture within which it
operates the resort identifies its capacity to differentiate the product offer and retain
a truly Sri Lankan identity. Sri Lanka is not a nation geared for mass tourism. Its
tourism infrastructure capacities coupled with the nature of the product, allows the
nation to specialize and cater to niche segments of high-end travellers. Thus, the
destination should be pursuing a strategy of sustainable tourism whereby tourism is
utilized as a tool to preserve the nation’s culture, heritage and environment and not
over-exploit them through continuously increasing visitations. By integrating CSR
into core business processes and stakeholder management, the Resort recognizes its
ability to achieve the ultimate goal of creating both social value and corporate value.
However, the adaptation of CSR and sustainability goes beyond face value, the Resort
views sustainability as a strategic avenue for growth in the long-term. As opposed to
ad-hoc philanthropy, strategic sustainability streams are embedded into the overall
business approach and filters to the fundamental business practice. This, the Resort
perceives sustainability beyond the scope of stepped-up environmental performance,
but as a comprehensive way of doing business; one that delivers tremendous
economic value and opens up a vast array of new opportunities.
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The company’s unwavering commitment to sustainability is evident in the inclusive
role that sustainability plays in its daily operations. In much the same manner,
engagement and involvement with the community within which the Resort operates
is fundamental to values and ethics. The Resort recognizes that the integration of
sustainability practices require relentless determination and tenacity, but also
accepts that by doing so it is able to generate substantial business value whilst
enhancing the quality of life of the communities, customers, suppliers and employees
that are part and parcel of its inter-linked business environment. Similarly, its
impact on the immediate natural environment and wider global environment is far
reaching.
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7 PERFORMANCE INDICATORS
7.1 ECONOMIC PERFORMANCE INDICATORS Direct economic Value Two years at a glance
The net sales and revenue has demonstrated a significant growth during the
period under review. The change is 12.4% and 12.5% respectively
All types of cost have increased when compared to year 2017. The Operating Cost,
Employee wages, Employee Benefits, Payments to providers of Capital and
Community Investments have increased 9.5%, 26.8%, 27.5%, 421.5%, 147%
respectively and decreased Payments to Government in 15% . The cost of operation
has been increased by 34% mainly due to the energy and raw material price increase
and the continuous inflation in the economy.
Direct economic Value Graph 08
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The cost of staff has been increased due to new recruitments based on the business
improvements and the salary increments according to the government regulations .
January – December
2017
January – December
2018
Direct economic value generated
Net sales 1,371,121,171.49 1,541,075,556.56
Revenue 1,402,074,517.49 1,578,091,672.49
Economic value distributed
Operating costs 262,752,820.63 287,725,234.59
Employee wages 130,586,638.96 165,612,208.12
Employee benefits 74,028,794.56 94,443,973.08
Community investments 493,052.00 1,218,607.50
Employee cost
Cost towards wages salaries 130,586,638.96 287,725,234.59
Other benefit costs 74,028,794.56 94,443,973.08
Total personnel costs 204,615,433.52 382,169,207.67
Payments to providers of funds
Interest payments made to providers of loans 0 0
Staff Cost - Graph 10
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Coverage of the Organization’s Defined Benefit Plan Obligations
All employees of the company are members of the Employees’ Provident Fund and
Employees’ Trust Fund, to which their employers contribute 12% - 15% and 3%
respectively such employees’ basic or consolidated wage or salary, cost of living and
all other allowances. Contributions to defined benefit plans, EPF & ETF, are
recognized as an employee benefit expense in profit and loss in the periods during
which services are rendered by employees. The defined benefit plans are done
according to the gratuity Act. No.12 of 1983. All employees are allocated the required
amount based on their salary and a provision is kept in the operational budget on
annual basis although the payment of the gratuity takes place after completion of 5
years of uninterrupted service of an employee at the Resort.
The defined benefit plan for both years has been the gratuity payment for all
employees who completed continuous five years of service. The liabilities for stock
holders have grown slightly and have amounted to 25% compared to the same period
last year.
Significant financial assistance received from the government
There is no significant financial assistance received during the period under review.
However, the Resort has gradually decreased its financial expenses based on the
below graph.
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Policy practices and Portion of Spending on Locally –Based Suppliers at
Significant
Heritance Kandalama
Purchasing Policy
We at Heritance Kandalama Hotel are committed to protect and conserve our present and future
environment.
As we are an environmentally sensitive organization, all our purchasing will be done in the most
environmentally friendly manner. Bulk purchasing will be preferred over supplies in small
containers. Priority will be given to supplies in returnable containers. Packaging out of
biodegradable materials will be encouraged.
Suppliers should be able to deliver with the least handling and transport. Goods with eco-labels
and recycle labels will be preferred over all others. Biodegradable soap and detergents and items
with the least amount of chemicals such as phosphates, sulphates, nitrates and boron salts will be
purchased.
Local materials and fair trade products including elements of local art and cultural heritage will
be given priority in purchasing.
When selecting suppliers, their environmental commitment and policies will always be
considered.
General Manager
The local suppliers are given priority in purchasing all types of raw, semi-finished
and other materials. The Resort has a defined 20km radius boundary in prioritizing
purchasing decisions .
Local Purchases
Development and Impact of Infrastructure Investment and Services
provided Primarily for Public Benefit through Commercial, In-kind or
Pro-bono Engagement.
LKR. 610,220.00 has been invested on developing infrastructure which is 75%
increase compared to the similar period previous year. Other than the said, the
Resort plays a coordination role in carrying out infrastructure development
programmes which has amounted to LKR. 112,121,941.86 during the period under
review. Physical and intellectual capital of the Resort is shared with its stakeholders
to promote sustainable development where 1.75 million of global citizens gained
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access to the Resort’s knowledge pool. The “Gasifier” was introduced to contribute to
the triple bottom line approach of the organization in the year 2009. It consumes
2100 Kgs of fuel wood {(Gliricidia) the plant was used as fences of the farming lands
in the local community and the leaves were used as animal food previously} for a day
replacing 800 Lts of diesel which reduce carbon emission, cost of operation by 68%
and provide the opportunity to the community to supply the wood which is freely
available and grow in abandoned lands and gain LKR 40,000.00 daily. Further it has
generated 8 more employment opportunities to the community.
Understanding and Describing Significant Indirect Economic Impacts
Including the Extent of Impacts
Percentile value of the cadre employed from the 35km radius was 54.9% and all of
them are bread winners to the household which in turn contribute in eradication of
poverty. The Self Development Centre, the resorts state of the art training and
development facility provide an array of training and development programmes to
meet the hotel’s demand and to provide opportunities in the tourism field. Within
the history of resort’s existence, it has developed more than 3085 employees to the
industry and 64 are now holding senior management position in the global tourism
industry out of whom 9, joined as trainees are still onboard.
Villagers preparing fuel wood (Gliricidia)
for Renewable energy plant at Heritance
Kandalama
Provided School bags 210 nos for vicinity
schools in kandalama
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7.2 ENVIRONMENTAL PERFORAMCE INDICATORS
Materials used by weight or volume
The above is the consumption of raw material, semi-finish goods, packaging material
etc for the period under review with the comparison to the similar period of 2017.
The graph illustrates on consumption per room with a comparison to the similar
period of 2017.
Material 2017 2018
Vegetable 133657.12 132548.55
Fruits 171,369.69 177,960.60
Other Food Items (Kg) 665,669.80 664,645.91
Beverage (Lt) 643082.3 693375
Fuel – Diesel (Lt) 407102.49 187228
Fuel – Wood (Kg) 415339.5 445162
Other Maintenance Related Items (Units) 222209 211205
Stationary (Units) 193250 169099
LP Gas (Kg) 29,062.50 30,712.50
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Percentage of Materials used that are Recycled Materials
Since the majority of the stationary are based on recycled materials, the amount
shown is the recycled stationary against total stationary purchased during the period
under review and for further understanding it has been compared with the previous
year
Direct energy Consumption by Primary Energy Source
Direct Energy Consumption 2017/2018 January - February
Graph 5
Stationary Consumption Graph 1
Stationary Consumption
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Indirect Energy Consumption by Primary Energy Source
Total Indirect energy consumed 2017/2018 Graph 6
Energy saved due to Conservation and Efficiency Improvements
Total energy saved due to various initiatives had amounted 6,331,311.86MJ,
5,920,680.08MJ in the years 2017 and 2018 respectively. The above graph shows as
to what kind of initiatives have made by the Resort during the period under review.
Initiatives to provide Energy-Efficient or Renewable Energy based
Products and Services and reductions in Energy Requirements as a
result of these Initiatives
Please see the above paragraph and the line chart for ENVT 6
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Initiatives to reduce indirect Energy Consumption and Reductions
achieved
January - December 2018
Energy Saving Methods & Saved Values - Heritance Kandalama
Item Description
Per
Month
Qty
QTY for
Year of Jan
'18 to Dec
'18)
in Ltrs
QTY forYear of
Jan '18 to Dec
'18)
in MJ
Remarks
1 Fuel saving by
1.1 *By limiting usage of hotel vehicle
1.1.1 Goods transferring to Staff Village by
tractor
*Early - 2 times per Day
*Present - 1 times per Day
*Reduction - 7.5km per Day
7.5km per
day
(1.07 ltrs
per day)
32.14
ltrs per
Month
385.71 14,502.70 Assuming : Tractor
diesel usage is 7km
per 1ltr
1.1.2 Purchasing by using hotel van.
*Early - 2 times per month
*Present - 1 times per month
*Reduction - 340km per month
340km per
month
(37.77ltrs
per Month)
37.77ltr
s per
Month
453.33 17,045.21 Assuming : Van
diesel usage is 9km
per 1ltr
1.1.3 Cable modification in generator .When
CEB done long term power cut, Operate
Single generator for the both wings
*Early - for the both generator used 180
ltr diesel per hour
*Present - When there is power cut
,Single generator can powered both
wings with 100 ltr diesel
Average
800 lts per
day
8000
ltrs per
10 Days
8,000 300,800.00 Assuming:
* 10 days have full
CEB power cut day
time (8 hrs) per
Year.It depend on
the wether
condition of the
country
TOTAL SAVING PER MONTH, FROM ABOVE COST SAVING
METHODS / (MJ) 31,547.90
Item Description
Per
Month
Qty
QTY for Year (Jan
'18 to Dec '18)
in Ltrs
Remarks
2 Water reduction by
2.1 *By implementing new machines
2.1.1 TertiaryTreated water supply for
Staff village urinals
*Saving of tube well water -
average 12m3 per day
average 12m3
per day
360,000 ltrs
per Month
16,639,200.00
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2.1.2 Put 1.5ltrs water bag in to
cisterns of guest rooms & Public
Area
1645 ltrs
saving per day
49,360 ltrs
per Month
2,281,419.20 Assuming:
* 5 times usage of one commode in
guest room per day &
* Average occupancy for last Year is
83% &
* 50 times usage of public area
commodes per day
2.2 *By changing the process or method
2.2.1 Water saving from laundry
washing machines (this is done
only for three machine up to
now. There are 2 m/cs more)
*Early - when the CEB power cut
all water will drain & need to fill
again.
*Present - when the CEB power
cut water will not drain
*water saving - 2850ltres per day
2850 ltres per
day
85,500 ltrs
per Month
3,951,810.00 Assuming : CEB power will be cut 3
times per day during luandry
operating time period
TOTAL SAVING PER MONTH, FROM ABOVE COST SAVING
METHODS / (Ltrs) 22,872,429.20
Total Water withdrawal by Source
Different type of sources 2017 2018
Surface water 0.00 0.00
Ground water 90,518.00 103,524.90
Rainwater collected and stored 0.00 0.00
Wastewater from other
organization
0.00 0.00
Municipal water supplies 0.00 0.00
Total water Withdrawal 90,518.00 103,524.90
Water source significantly affected by Water usage
Source Size of source(m3) 2017 (m3) 2018 (m3)
03 nos. of tube wells -
Water below the rock bed
Approx. 100ft, 250ft,
160ft in depth 90,518.00 103,524.90
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45
Percentage of total Water usage that is Reused or Recycled
Source
Quantity of water (m3)
during
January to December
Quantity of water (m3) during
January to December
Percentage of
water
recycled/
reused Water
withdrawal
Recycled
or reused
Water
withdrawal Recycled or reused
Surface water 0.00 0.00 0.00 0.00 -
Ground water 90,518.00 85,992.10 103,524.90 98,348.66 95% from total
water usage
Rainwater
collected and
stored
0.00 0.00 0.00 0.00 -
Waste water 0.00 0.00 0.00 0.00 -
Municipal water
supplies 0.00 0.00 0.00 0.00 -
Total 90,518.00 85,992.10 103,524.90 98,348.66
Location and size of Land owned, Leased or Managed in or next to
protected areas or areas of high Biodiversity value outside protected area
Heritance Kandalama situated alongside the Kandalama Tank, a manmade rain fed
reservoir of 8sq Km built by King Vasaba in the 17th century. The area is rich in
biodiversity and house a spectrum of wildlife, including the Asian Elephant, 09
endemic birds, 172 other birds including migrants, three types of monkeys. A canopy
of tropical dry mixed evergreen hardwood trees that take an average of 40-50 years
to mature distinguishes the area. The Resort has a natural preservation of 193 acres
of conservation forest that ensures the bio-diversity is protected. The preservation
also protects the origins of 11 natural streams that provide irrigation water to 34 dry
zone reservoirs. The preservation also acts as preventive mechanism against
deforestation and the construction of unauthorized artificial structures.
Bio Diversity Indicators
Type Number of
Species
Type Number of
Species
Native Flora 120 Reptiles and Amphibians 19
Birds 183 Mammals 17
Trees 120 Butterflies 73
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The Eco Park is one of the unique attractions of Heritance Kandalama, located just
ten minutes walk from the resort. It includes a wildlife orphanage and rehabilitation
centre for injured animals, a state-of-the-art waste water recycling plant, compost
fertilizer pits, wet and solid waste recycling centres, elephant dung paper making
facility, a herbal garden and an eco library.
The Eco Park performs a valuable role in community education. More than 1.75
million visitors have passed through the Eco Park and have been exposed to the
Heritance Kandalama’s Green Philosophy.
Description of significant impacts of Activities, Products and Services on
Biodiversity in protected areas or areas of high Biodiversity value
outside protected areas.
The organization is taking utmost care in its operation not to disturb the natural
habitats and biodiversity of the adjacent land and the land it sits on since the nature
has been the cutting edge advantage from its inception. More than disturbing and
negatively impacting the nature, the resort has contributed in developing and
assisting to improve the variety of species in ways of replanting native trees,
controlling wildlife hunters.
Total direct and indirect GHG emissions by weight
The GHG footprint figures are aimed at identifying, analyzing and quantifying
sources of GHG emissions for Heritance Kandalama. The Engineering department at
Heritance Kandalama oversees carbon management and inventorization along with
support from Stores, Travel desk, Eco-park, Accounts, Kitchen and Human
Resources department.
The following approach has been used to determine Heritance Kandalama’s GHG
footprint as described in this report:
Methodology of Estimating GHG Footprint
Each division / function of the hotel was consulted for determining the GHG
footprint. Subsequently, data was collected through data collection formats which are
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47
consistent with international guidelines on GHG foot printing. GHG data collection
protocols were developed to assist hotel in consistently reporting its annual carbon
footprint on an ongoing basis.
For each division/function, GHG emissions were identified, categorized and
calculated, as per standardized calculation approaches for the year 2018. There are
two basic approaches for estimating direct (Scope 1) CO2 emissions from stationary
combustion:
1) Direct measurement of the mass of CO2 in the exhaust gas and
2) The calculation of CO2 emissions based on proxy (i.e., activity) data.
Both approaches are acceptable ways to estimate CO2 emissions from stationary
combustion. Direct measurement, although more accurate, is an expensive and
unfeasible option. Thus, in the absence of direct measurement of the mass of CO2 in
the exhaust gas, it is acceptable to base the calculation of CO2 emissions on proxy
(i.e., activity) data involving the monitoring of fuel types and consumption rates.
Assumptions
The carbon footprint of Heritance Kandalama was primarily calculated based on
standard emission factors, and involved monitoring of fuel use patterns. Since
physical determination/direct monitoring of GHG emissions was not possible, or
practically infeasible due to the expensive nature of instrument or testing procedure,
globally accepted standards and emission factors have been adhered to for
determination of GHG footprint.
GHG Footprint - Overall Hotel Operations
The Total GHG footprint of Hotel Heritance Kandalama for 2018 is 3025.201 tCO2e.
The chart below explains the breakup of total carbon emissions from the hotel. As
illustrated, Scope 2 forms the highest proportion of overall GHG emissions with a
contribution of about 77%. Scope 1 emissions are the second largest contributor to
overall GHG emissions with a contribution of about 22%.
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Scope 1 emissions
The activities contributing to scope 1 emissions have been clubbed under the
following heads:
Utility
Housekeeping
Kitchen
Waste Management
Transportation
The total scope 1 emissions for Hotel Heritance Kandalama stand at 674.55 tons of
CO2e. A deeper look into the breakup of scope 1 emissions reveals that utility
operations contribute to significant proportion of the overall scope 1 emission (79%).
Utility related activities primarily include diesel consumption in the boiler and diesel
generator. 15% of the scope 1 emissions are contributed through kitchen operations.
This is through the use of LPG in guest kitchen, staff canteen and use of food heating
gel in restaurants. The contribution from waste management (incineration,
composting, waste transportation) and transportation using company owned vehicles
is relatively lower contributors to scope 1 emission
Scope 2 emissions
Scope 2 emissions which are the single largest contributor to Hotel Heritance
Kandalama’s carbon footprint stood at 2315.007 tons of CO2e. In order to clearly
understand the contributors towards scope 2 emissions, data from energy
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sub-meters were obtained. GHG emissions related to electricity consumption from
chiller plant (DW and SW) were found to be contributing the maximum. The GHG
emissions from chiller plant alone account for 52% of the overall scope 2 emissions.
The miscellaneous category accounted for 3rd largest emission source and includes
electricity consumption at STP, guest rooms, main restaurant, boiler, gassifier and
SW swimming pool.
Scope 3 emissions
Total scope 3 emissions stood at 35.64tons of CO2e, the smallest amongst scope 1,
scope2 and scope3 emissions. The activities considered for calculating the scope 3
emissions include the following:
Outsourced transportation for employees and guests
Guest activities like safaris and balloon rides
Paper manufacturing in the hotel facility
GHG emissions due to outsourced logistics related to waste management and Freight
diesel consumption for sourcing of raw materials were not considered for calculating
scope 3 emissions due to unavailability of relevant data.
Vehicle diesel/ petrol consumption in Transportation 92% of the overall scope 3 emissions.
Transportation of guests and employees included only such activities that are not under
direct control of the hotel i.e.: fuel allowances provided to employees, public transportation
and office bus used by employees, contracted vehicles for guests and employees and guest
safaris
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Initiatives to reduce Greenhouse Gas emissions and Reductions achieved
Source of Emission Description
Gross Profit of the Gasifire (only considering
Energy Costs) AND CO2 Saving from the
Gasifire
Considerations : Unit cost of Fuel Wood = Rs. 12.5 Unit cost of Diesel = Rs. 107 01ltr of Diesel = 4.1 * 01kg of Fuel Wood Please Note That : have not considered the O&M payment & Panalty charges for the calculation
Description Amount
Actual Expenses for Boiler Running
Total Fuel Wood Consumption Average per month / (kg)
52,716
Cost for above Fuel Wood / (Rs.) 658,950.00
Total Amount of Diesel for Boiler Running during a average per month / (ltrs)
4,800
Cost for above Diesel / (Rs.) 513,600.00
Actual Boiler Running Expenses for the month / (Rs.)
1,172,550.00
If Boiler Run With Only Diesel
Total Equivalent Diesel Amoumt / (ltrs) 17,657.56
Cost for above Equivalent Diesel Amoumt / (Rs.)
1,889,359.02
Average Gross Profit from the Gasifire / (Rs.) 716,809.02
CO2 SAVING
Total CO2 Saving for a average month / (kg) 32,143.90
Total CO2 Saving for a average month / (T) 32.143
NO x SO x and other significant air emissions by type and weight
Not measured so far
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The hotel uses the aerobic extended aeration method in treating its effluent at three
plants comes from the hotel rooms, staff rooms, kitchens and laundry and all other
small operations. An average of 300 M3 of waste water (Per Day) is discharged after
treating to the above mentioned standard. The water discharged is not sent to a
water body or any other environmentally sensitive area but 100% is reused whilst
4% of the water is recycled and sent to the toilet cisterns in the staff area. The sludge
is converted to compost to be used in the organic vegetable farm belongs to the
resort.
Total waste Water discharge by quality of Effluent and Volume
PLANT 01 -
Dambulla Wing
Water quality parameters Limits Before
treatment After treatment
Ph 6.0-8.5 Not measured 7
TSS / (mg per ltr) <50 Not measured 15
TDS (ppm) Not measured Not measured Not measured
BOD / (mg per ltr) <30 Not measured Less than 20
COD / (mg per ltr) <250 Not measured 60
Oil and Grease / (mg per ltr) <10 Not measured Less than 01
PLANT 02 -
Sigiriya Wing
Water quality parameters Limits Before treatment After treatment
Ph 6.0-8.5 Not measured 7
TSS / (mg per ltr) <50 Not measured 15
TDS (ppm) Not measured Not measured Not measured
BOD / (mg per ltr) <30 Not measured Less than 20
COD / (mg per ltr) <250 Not measured 60
Oil and Grease / (mg per ltr) <10 Not measured Less than 01
PLANT 03 - New
Sigiriya Wing
Water quality parameteres Limits Before treatment After treatment
Ph 6.0-8.5 Not measured 7
TSS / (mg per ltr) <50 Not measured 15
TDS (ppm) Not measured Not measured Not measured
BOD / (mg per ltr) <30 Not measured Less than 20
COD / (mg per ltr) <250 Not measured 60
Oil and Grease / (mg per ltr) <10 Not measured Less than 01
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Total weight of waste by type and disposal method
Type of waste Disposal method Quantity (tons)
2017 2018 2017 2018
Non - hazardous
Wet Waste
Purchased by a
piggery owner as food
for pigs
238.58 247.83
Dry Waste Sold for
recycling/Reuse 26.84 24.88
Coconut shells Coverts to carbon by
the purchaser 3.44 2.57
Total quantity of non - hazardous waste 268.86 251.28
Hazardous Dry Waste
Transported across
the boundary and
land fill by the
buyer
0.91 0.88
Total quantity of hazardous waste 0.91 0.88
Total number and Volume of Significant Spills
No significant spills have been reported in the period under review.
Weight of transported, exported or treated waste deemed hazardous under the terms of the basel convention annex i,ii,iii and viii and percentage of transported waste ship internationally
Since the Resort does not generate significant amount of hazardous waste it is
transported across the boundary and land filled by the purchaser.
The sludge is converted to
compost
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Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation
Material use
The hotel practices the 7R principle (Reject, Reduce, Reuse, Repair, Reclaim, Replace and Recycle) which is unique for the hotel and that reduces many of the adverse impacts to the society, environment and economy.
Water use
The hotel uses the ground water to minimize the adverse impacts to the biodiversity and as a social obligation. 95% of the water used are recycled or reused in ways of irrigation and sending back to the toilet cisterns.
Emissions
Hotel has already estimated the carbon footprint and a gasifier has been introduced to reduce the GHG and operational cost.
Effluents
All effluents are treated and used as compost.
Noise
Main noise creator is the DG set and the DG room has been installed with noise reducer and it meets the level accepted by ISO 14001 standard.
Solid Waste
All types of waste are applied with 7R principle and sorted out at the source itself. Segregated waste is sold to an outside recycler.
Application of 7R principle at Heritance Kandalama
Percentage of products sold and their packaging materials that are reclaimed by category
In the nature of the hotel operations, there are fewer amounts of products sold with a
packaging. However, although it has not measured, the Resort uses reclaimed
packaging materials in its operations
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Monetary value of significant fines and total number of non-monetary sanctions for
non-compliance with environmental laws and regulations
No fines or non monitory sanctions have been reported in the period under review.
Total environmental protection expenditures and investments by type
Promotion of best practices for Sustainability Production and Consumption along the supply chain
Raw material suppliers have been given with standard specifications to use in
sourcing, transporting, storing products such as;
• Method of transport
• The volume to be transported at a time to reduce no of trips
• Numbers to be included in a Kilogram – Eg. 6 tomatoes per KG
• Purchase of bulks amounts for higher price to reduce multiple transportation
– Eg. LKR 5.00 extra per Kilo is paid for the suppliers who supply more than
20,000.00 Kgs at once.
Investment & Expenditure for Environment
Protection
2017
January-
December
2018
January-
December
Total Water Treatment cost 1,881,700 1,672,949
Total Pollution Prevention cost 858,846 1,051,734
Environment Protection license fee 8,415 10,965
Voluntary EMS/FSMS Audit & Certification fees 336,642 163,203
Total Amount 3,085,603 2,898,851
Educating suppliers on
sustainable transport and quality
Engage with Fuel Wood Suppliers
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7.3 SOCIAL PERFORMANCE INDICATORS
Total workforce by employment type, employment contract and region
As a policy, Resort does not recruit/hire employees on part nor on seasonal basis.
The employees hire to the organization are based on full time basis. However, to
maintain the sustainability, hotel freezes recruitments/hires during the off peak
times of the business.
Following is the break down and analysis with a comparison to similar period of 2017
and 2018.
Graph 7 Graph 8
Item 2017 January-December 2018 January-December
No of full time employees 383 364
No of part time employees 0 0
No of supervised workers 383 364
No of non supervised
workers
0 0
Employees based on employment contract
Permanent 188 193
Contractual 161 142
Trainee 34 29
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Graph 9
Total number and rate of employee turnover by age group, gender and region
Rate of Employee Turnover Graph 10
Turnover based on Age Group Graph 22
Turnover based on Gender Graph 23 Turnover based on Distance
Graph 24
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Benefits provided to full-time employees that are not provided to temporary or part-time employees by major operations
The hotel recruits all the employees on full time basis although the seasonal
employment regulation is applicable to the tourism industry. However, the
permanent employees are given more benefits than the other workers regardless of
the category.
Common benefits provided to all employees
✓ Bonus/Exgratia, Service Charge
✓ Insurance cover for injuries/fatalities/disabilities/Hospitalization/invalidities
and deceases
✓ Benefits at the death of an employee, immediate family members
✓ Annual gift vouchers to purchase books for children
✓ Contribution for ETF/EPF, Loan on no interest
✓ Gifts at the marriage, Gift for first and second baby, Gift when starting the
education of children
✓ Gift when children of employees get though the grade five examinations
✓ Annual day outing with immediate family members
✓ Staff day once a year, Annual staff’ trip, Annual executives’ trip, Annual
supervisors’ trip
✓ Uniforms including shoes and PPEs for required operations,Three
Meals,Accommodation,Facilities for recreational activities for 100% of the staff
Special Benefits for permanent employees that are not provided for
other employees
✓ Reimbursement of tuition/exam/course fees on successful completion
✓ Maternity Leave, Annual Leave, Casual Leave
✓ Gratuity for employees who have completed full five years of service
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Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advance on occupational health and safety programs
100% of the workforce is involved in some kind of joint management committee and
get involved in contributing for decision making etc.
Health, Safety and other committees Percentage of total
workforce represented Level where committee operates
2017 2018 2017/2018
First aid 18.28% 18% Middle Management ,Supervisors and
Operational level below
Trainers 13.05% 12.91% Middle Management ,Supervisors and
Operational level below
Management of Solid Waste (7R) and storage of
environmentally harmful substances 25% 25%
Management , Supervisors and
Operational level below
Social and cultural development 25% 25% Management , Supervisors and
Operational level below
Management of energy efficiency, green house gas
emissions, fresh water and waste water 25% 25%
Management , Supervisors and
Operational level below
Transport, air Quality protection and noise control 25% 25% Management , Supervisors and
Operational level below
Quality 2.30% 2% Middle Management ,Supervisors
Rates of Injury, Occupational Diseases, Lost Days and Absenteeism, and total Number of Work related Fatalities
Available Man Days based on Category
Graph 25
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The total no of man days available is calculated based on the no of actual working
days for a month (22) which has amounted to 96,096 for the period under review
(22*12*383) & (22*12*364). No occupational diseases, fatalities, have been reported
in the period. The first aid level injuries are excluded in the report whilst the
unauthorized leave have been reported as lost days regardless for what reason the
leave has been utilized by the employees.
Education, Training, Counseling, Prevention and Risk-Control Programs in place to assist Workforce Members, Their Families or Community Members regarding Serious Diseases
The resort carries out training and awareness programmes to the community and
employees on prevention of Aids and improvement of environment/productivity
Average Hours of Training per Year per Employee by Employee Category
The training and development programmes are conducted base on the annual
training needs analysis which the results are derived from personal interest of all
employees, observations, suggestions from the management heads, performance
appraisals, other gaps created due to technology improvements, introduction of new
products, services, processes, systems. The below table illustrates on no of
programmes conducted during the reporting period and no of hours per employee on
category of employees against total no of employees were employed during the
reporting period.
No. of lost days based on category Graph 26
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Employee category No of Training Hours
No of Training Hours
Per Employee
2017 2018 2017 2018
Executive 315:30:00 996:40:00 10:31:00 30:12:07
Supervisor/Clerical 1009:15:00 4395:30:00 14:01:03 63:42:10
Other 3767:15:00 11038:15:00 13:24:24 42:07:51
Total 5092:00:00 16430:25:00 13:17:42 45:08:19
Programs for Skills Management and Lifelong Learning that Support the continued Employability of Employees and assist them in Managing Career Endings
The private sector retirement age, based on National regulations has been set for 55
years, the Resort offers the extension for all employees passing the age of 55 to
continue the employability. On the other hand the employees are offered
employment opportunities in the overseas operations within the group of Aitken
Spence Hotel Holdings PLC as a cross exposure and to gain more knowledge of
No. of Training Hours Graph 27
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diversified tourism environment to protect the continuity of the employment with no
interruptions to the career.
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity
Ratio of male to female of the total cadre is very low as 12:1 (336:28)due to many
geographical, educational, cultural reasons in the area that the Hotel is being
operated. However, the hotel takes maximum effort in maintaining equity in
diversified areas like region, gender, ethnic group etc. Because of that reason new
ladies accomodation also establish to continue the equity of both parties. Almost all
the employees are a member of Resort’s welfare society. Other than the chair person
who is the General Manager of the Organization, all officials are from a cross section
of the organization and it is a policy to have ladies in the committee whilst all
employees of the organization are given the membership of the society in order to
raise their opinion on the welfare activities, employee benefits etc. The Resort’s
welfare society meets on quarterly basis and AGM every year to select the team of
officials and committee members from various departments.
Public Policy Positions and participation in Public Policy Development and Lobbying
The management team which consists of an average of 33 are members of the Ceylon
Hotel School Graduate Association and the Vice President of Aitken Spence Hotel
Holdings PLC who is a previous General Managers was appointed as the President of
Ceylon Hotel School Graduate Association during the period under review.
Total value of Financial and in-kind contributions to Political Parties, Politicians, and related Institutions by Country. Nil
Monetary Value of Significant Fines and Total Number of Non-Monetary Sanctions for Non-Compliance with Laws and Regulations
No significant or minor fines have been posed against the organization during the period with regard to violation of social conditions.
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Total Number of Incidents of Non-Compliance with Regulations and Voluntary Codes Concerning Health and Safety Impacts of Products and Service During Their Life Cycle, by Type of Outcomes. The critical areas of food and beverage items which are very sensitive to consumers
have been identified to conform to the voluntary international standard ISO 22000
while the boilers, steam generators, gas receivers, steam receivers are measured and
tested to comply with the national standard since the vulnerability remains high in
the areas. Hence, no non compliance, monitory or non monitory fines have been
imposed to the organization during the period according to the reviews .
Type of Products and Services Information Required by Procedures and Percentage of Significant Products and Services Subject to Such Information Requirements.
The jam produced in the small jam factory are distributed to the hotels belongs to
Aitken Spence Hotel Holdings PLC. The labeling is done to meet the requirement of
the food act of Sri Lanka and the production meets the HACCP/ISO 22000 standard.
Total Number of Incidents of Non-Compliance with Regulations and
Voluntary Codes Concerning Product and Service Information and
Labeling, by Type of Outcomes
Other than the minor NCRs for environment management system and food safety
management system, no fines or warning given by the voluntary codes verifying
organizations and regulatory bodies during the period under review
Practices Related to Customer Satisfaction, Including Results of Surveys
Measuring Customer Satisfaction
As any of the organizations in the world, Heritance Kandalama believes in customer
preference is a key to the success of any kind of Hotels or Tourism operation. Hence,
the Resort applies few methods to get the feedback of the customers and consumers
to plan and organize future developments and devise changes for prevailing products
and services.
The questionnaire provided in each room brings many valuable outputs whilst
guests’ comments books give another choice for guests to throw their ideas,
complaints and suggestions. Below graph depicts the representation of the analyzed
complaints (Only complaints) from all the comment sheets provided in the rooms
during the period under review .
Programs for Adherence to Laws, Standards, and Voluntary Codes
Related to Marketing Communications, Including Advertising,
Promotion and Sponsorship
Marketing of alcohol and tobacco products in Sri Lanka should align the national
laws and the Resort is meeting those standards and has never disqualified by
regulations or voluntary codes.
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Total Number of Incidents of Non-Compliance with Regulations and
Voluntary Codes Concerning Marketing Communications, Including
Advertising, Promotion and Sponsorship by Type of Outcomes
The marketing campaigns of the resort are done in Sri Lankan and overseas. The
resort takes utmost care in marketing the property to potential customers mainly
through electronic media. The increasing price strategy and value added products
and services have mainly brought the business to the peak. In marketing, the hotel
has been always meeting the best standard which has grown beyond national law.
The resort has not been punished/taken any negative actions in the period of review
nor through the history of its existence since the customer base has been developed
through word of mouth than any other.
Monetary Value of Significant Fines for Noncompliance with Laws and
Regulations Concerning the Provision and Use of Products and Services
No fines reported during the period under review therefore no cost has been incurred
by the resort during the period.
Life Cycle Stages in which Health and Safety impacts of Products and
Services are assessed for improvement and Percentage of Significant
Products and Service Categories subject to such Procedures
No products and services are researched, developed, transported, stored or sold by
the organization which has significant negative impacts towards society and
environment.
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8 Bibliography
www.sltda.gov.lk/statistics
www.wttc.org
Monthly Financial Information – Heritance Kandalama
Monthly Energy/Water/Effluent Analysis Records
Monthly HR Indicator Reports
Monthly EMR Data Records
Monthly Oracle Finance Report
Monthly Opera PMS Reports