The Company provides hospitality services that serve travellers’ demand in sustainable lifestyle, supporting collaboration for climate actions and addressing climate change risks.
The Company is committed to increase efficient of resource consumption to an optimum level and minimizing negative environmental impacts across project developments and hotel operations, with key priorities on environmental policies, Energy and Carbon Management, Food Waste Management, Materials and Waste Management, Water Resource Management policies.
Energy Efficiency Management
The service business is an energy-intensive business resulting from direct consumption of energy by hotels themselves and by their guests, a situation that makes the reduction of energy consumption challenging. The Erawan Group tries to improve our energy consumption, reduce waste and seek a variety of technology and partner to help us maintaining service excellence while still able to consume energy efficiently. Consumption of energy remains a crucial factor determining the level of carbon emission by the company itself and by hotels within our group.
In 2023, through our collaboration with partners for better energy management, we supported the consumption of various types of energy. With our business expansion, we commit to efficient and effective energy management as follows.
Target
- Effective energy management with 2 percent decrease of energy intensity per year in order to reduce energy cost and align with the Company’s GHG emission target
- Increase percentage of renewable energy with coverage more than 10 percent of total properties by 2027
- All self-managed properties (100 percent) provide services that relate to the reduction of energy and carbon emissions
Business opportunities and risks
Opportunities
- Reduction of long-term costs from energy consumption
- Competitive advantages on cost for budget hotels
- Attraction for tourists with environmentally friendly conscious and promote their sustainable lifestyle
- Opportunities to access green finance
Challenges and risks
- Insufficient energy supply during high season
- Balance between energy reductions and customer satisfaction
- Electricity, fuel, natural gas, etc. are significant to business operations, however, these resources are also significant to carbon emissions
Management approaches
- Set goal, target, management approaches and monitor performances
- Increase energy efficiency in the properties’ common areas and guest room by maintenance and new technology
- Increase proportion of energy mix between traditional and renewable energy
- Promote sustainable lifestyle of customers
- Collaborate with sustainability partners
Electricity consumption (kwh.)
Year 2021
Year 2022
Year 2023
Performances
- Average energy intensity (per room) reduced for 11.17%
- 33,914 kwh is renewable energy from solar rooftop, equivalent to 5 percent of HOP INN Thailand’s total electricity consumption
- Installation of solar rooftop, 10.45 kilowatt, in 3 HOP INN Thailand, totaling 31.35 kilowatts
- Energy partnership with BanpuNext
- MOU with SCG Cleanergy on smart green energy solutions
- Replacement of light bulbs and maintenance of electrical appliances
- Expansion of EV Charging Station at properties
Energy consumption of The Erawan Group
| Energy consumption | Unit | 2021 | 2022 | 2023 | Change from previous year |
|---|---|---|---|---|---|
| Electricity | GWh | 50.56 | 67.11 | 76.16 | 13.48% |
| Diesel | ML | 74.71 | 73.08 | 52.27 | -28.48% |
| Gasoline | ML | 24.78 | 16.46 | 10.52 | -36.08% |
| LPG | Tonne | 881.49 | 1,227.09 | 1,399.40 | 14.04% |
| Budget hotel | Kw/room | 17.61 | 13.07 | 13.36 | 2.24% |
| Economy hotel | Kw/room | 65.06 | 32.16 | 22.19 | -31.01% |
| Midscale hotel | Kw/room | 116.46 | 49.87 | 40.78 | -18.24% |
| Luxury hotel | Kw/room | 592.95 | 165.99 | 155.64 | -6.24% |
| Energy intensity | Kw/room | 76.87 | 41.88 | 37.20 | -11.17% |
Remarks
- 2022-2023 was a recovery period for tourism industry in Thailand, resulted in an increase in number of tourists
- 2023 excluded data of Erawan Bangkok as the property was in the process of renovation, and excluded data of Foodcourt of Ploenchit center building as it was energy consumption of tenants
- Fuel consumption could be partially collected
- Calculated from total of electricity, fuel and LPG consumption
Water Management
Target
- 1 percent reduction in water withdrawal per year
- 5 percent reduction in water consumption per room per year
Business opportunities and risks
Opportunities
- Reduce operating cost from lower cost from water consumption
- Efficient water management allows the hotel to operate at full capacity year-round
Challenges and risks
- Distance hotels or on islands might face water shortages, especially during the high tourism season when water demand is high and during droughts when natural water sources are insufficient, potentially disrupting services.
Management approaches
- Regularly monitor water demand, assess wastewater quality, and check the hotel's wastewater treatment in all seasons
- Maintain equipment to ensure it remains efficient and functional. Use water-saving fixtures and low-water-consuming appliances
- Engage guests in water-saving campaigns
Performances
The Company is committed to sustainable water management, which includes sourcing water, recycling, and reusing it through water management policies and strategies. The Company complies with environmental laws, ISO 14001 standards, and other environmental regulations, focusing on improving efficiency and reducing water usage sustainably. In addition to using water-saving products, campaigns are held to encourage customers and employees to conserve water and choose environmentally friendly chemical products.
Beyond energy consumption, water is another heavily consumed resource in the hotel industry. The Erawan Group has guidelines to raise awareness and reduce water usage, including:
- Encouraging guests to reduce towel changes to lower water usage from laundering.
- Raising awareness among staff about the importance of using water resources efficiently.
- Installing aerators to reduce water flow from taps and choosing water-saving fixtures.
- Inspecting equipment, piping systems, and water meters to monitor, record, and continuously repair to prevent leaks.
- Creating rainwater storage in suitable areas.
- Implementing wastewater treatment systems and regularly checking the quality of water used by the hotel.
Water withdrawal
| Water source | Unit | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Water supply | Cubic meters | 684,776.81 | 1,047,587.00 | 1,269,078.96 |
| Surface water | Cubic meters | - | - | - |
| Groundwater | Cubic meters | 10,013.00 | 145,096.00 | 146,815.00 |
| Seawater | Cubic meters | - | - | - |
| Total | Cubic meters | 694,789.81 | 1,192,683.00 | 1,415,893.96 |
2023 Water withdrawal
Carbon management
Commitment towards climate actions
In the tourism and hotel industry, climate change plays a significant role, stemming from tourism travel, energy consumption to serve guests through various facilities, and even renovations and construction projects that must consider local conditions, geography, and climate change impacts.
The Erawan Group recognizes that running a hotel business requires careful consideration of various factors. They are committed to reducing their organizational carbon footprint across all hotels in the group. This commitment aligns with Thailand's Nationally Determined Contributions (NDC) to achieve net-zero carbon emissions by 2065 (B.E. 2608). The company has also outlined a long-term carbon strategy to support this goal.
Target
- Support the national target of achieving carbon neutrality by the year 2050 in Thailand.
- Ensure that all self-managed hotels (100%) provide services related to energy reduction and carbon offset by the year 2027. Practices for GHG emission reduction.
Scope 1 and 2 Greenhouse Gas Emissions TonCO2e
2021
2022
2023*
*ได้รับการทวนสอบโดยหน่วยงานภายนอก
Business opportunities and risks
Opportunities
Our hotel business caters to a diverse customer base both domestically and internationally, who are interested in different approaches to greenhouse gas management. Currently, we have corporate customers from both domestic and international markets who are interested in eco-friendly accommodation and hosting green meetings that can offset carbon emissions. If we focus intensively on this aspect, it can expand its customer base in the future. In addition, the Company would have an opportunity to access green finance.
Challenges and risks
The hotel business is a service industry that consumes a significant amount of energy, and a large portion of energy usage is driven by the guests themselves. This makes it challenging for hotels to have control or manage energy consumption effectively. Therefore, it poses a challenge for the company to achieve its carbon reduction goals. However, the company is making efforts to improve energy efficiency, construction practices, and adopt environmentally friendly energy innovations in its business operations.
Furthermore, there is an increasing demand for environmentally friendly hotel services from both individual customers and corporate clients. If hotels fail to adapt and meet these growing demands, they may miss out on long-term business opportunities in the future.
Management approaches
- Manage energy consumption in responding to determined target and plan.
- Increase the proportion of environmentally friendly energy on both hotel operations such as installation of solar energy and hotel facilities such as installation of EV charging station for hotel guests.
- Define carbon emission base year, reduction target, action plan, management approaches, in order to monitor, assess, and offset carbon emissions in both short- and long-term.
- Enhance sustainability partnerships within supply chain and external parties
- Provide knowledge on the responsibilities of hospitality service providers towards climate change to executives and employees at all levels.
- Upgrade hotels to meet Green Hotel standards and other environmental standards.
Performances
In 2023, The Erawan Group was assessed and certified its Carbon Footprint for Organization (CFO) scope 1 and 2 with external verification. The Company uses the data in order to set its carbon emission baseline and prepares for decarbonization and climate action plan. In addition, the Company also practiced its key business operations as following.
- SCG Cleanergy MOU to support consumption of solar energy for properties.
- BanpuNext collaboration to enhance energy efficiency within properties.
- 500 tree planting to increase green public areas in Bangkok and plantation of 20-rai mangrove to increase carbon absorption area in Nakhon Si Thammarat.
- EV Charging Station expansion to serve hotel guests with sustainable lifestyle
- “STAY FOR SANTA” initiative in collaboration with the Carbon Market Club to offset personal carbon footprint during Christmas and New Year festival. 332 tCO2e was offset from the initiative.
- ESG & Carbon Knowledge Sharing session for executives and employees
Waste and food waste management
Target
- The Company aims to reduce 50 percent of landfill waste by 2027
Business opportunities and risks
Opportunities
- Gain business opportunities in seeking new environmentally friendly supplies and amenities as well as facilities, so that hotels could differentiate from others and able to deliver new experience to hotel guests.
Challenges and risks
- Food waste is considered to be a significant global sustainability issue for the hospitality sector as it relates to natural resource consumption and global hunger concerns. It is a challenge for the Company to balance resource consumption, demand and satisfaction of customers in serving quality food at the right amount. In addition, it is crucial to consider food loss during preparation and food waste after consumption.
Management approaches
- Sort waste, especially types of waste that are significant to the hospitality sector such as food waste, as well as an increase in percentage of recyclable waste.
- Promote consumption of recyclable or recycled materials for hotel supplies and amenities.
- Exercise 4Rs principles; Reduce, Reuse, Recycle and Resourcing
- Collaborate with external partners to create sustainable waste journeys with optimum utilization of resources.
Performances
- 5 partnerships on waste management
- 29.30% reduction of food waste from ‘Zero Food Waste’ initiative
- 457.10 kg. of plastic waste was properly recycled
Food leftover and food waste management
The Company promoted ‘Zero Food Waste’ campaign in many hotels such as Grand Hyatt Erawan Bangkok where it started the campaign in May 2023 by encouraging their employees with no food leftover on their plate. The hotel could reduce food waste in the employees’ canteen by 29.30 percent after the first month of the campaign launched, and 12.44 percent average each month.
Partnerships for leftover food and food waste management
Scholars of Sustenance Foundation (SOS) – a non-profit organization who pass on leftover food for charities and those under privileged
Partiticipating hotels
- Grand Hyatt Erawan Bangok
- JW Marriot Bangkok
- Courtyard by Marriot Bangkok
- Accor Hotels (To join in 2024)
“Yindii” – a mobile application designed to re-sell bakery and pastries from hotel buffet line at a special prize to reduce foodwaste.
Participating hotels
- Grand Hyatt Erawan Bangkok
- JW Marriot Bangkok
The PLEDGE on Food Waste - a food waste management program Awarded hotel
Awarded hotel
- Courtyard by Marriott Bangkok (All-star level)
Plastic waste management
The Erawan Group and its properties say no to single-use plastic to reduce non-recyclable plastic waste which is now replaced by renewable products taking into consideration customer satisfaction in an attempt to reduce waste at its origin.
We also collaborate with SCG Chemical Co., Ltd and Corsair International Thailand to separate plastic waste for recycling purpose where 457.10 kilograms of waste were recycled.
Paper waste management
The Erawan Group’s head office and hotels in Bangkok together with our partner SCG Packaging Public Company Limited (SCGP) collect paper for recycling. We plan routes and collection dates to reduce transport energy.
Landfill waste management
The Company collaborated with external partners to effectively sort recycling waste in order to reduce landfill waste. Currently, the Company started collecting data of landfill waste of hotels in Bangkok Metropolitan Area and the Head Office.
Proportion of Total Waste
Biodiversity Management
Sustainable biodiversity management requires an understanding of the balance between how to safeguard resources and how to use them efficiently. As a result, to cultivate a proper understanding of how one can seek appropriate benefits from the resources as well as how to effectively take care of them will remain an important principle not only to preserve and protect biodiversity, but also to support carbon management practices of the Company.
Year 2022
The Erawan Group Plc and hotels within the group planted 400 trees in Chatuchak Park, Benjakitti Park, and Mab Prachan Chonburi Reservoir.
The Naka Island Hotel, which is located at the Naka Island, Phuket, together with Pak Klok Sub-district Administration Organization, planted 2,500 mangrove seedlings within the island. The hotel also took part in the “Go Green” Project to collect 156.64 kilograms of waste from beaches and village areas.
Year 2023
In 2023, The Erawan Group planted 500 trees at a park closed to Khlong Toei MRT Station on the World Environment Day (5 June 2023) thanks to our collaboration with the Khlong Toei District, local volunteers, and other properties under the group. The tree-planting activity was attended by 86 staff.
Besides, we planted 15,000 mangrove trees on a 20-rai land at the community mangrove in Thong Kam Bay, Ban Laem Village, Tha Sala District, Nakhon Si Thammarat Province.
