SUSTAINABILITY – From Ideas to Actions

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We are at the beginning of a long, challenging but equally exciting journey. From the reduction of plastic waste, resource efficiency, circular resource flows, responsible procurement and the reduction of carbon emissions to the support of our employees’ health and education.

When it comes to sustainability, we put collaboration over competition. We invite our employees and guests to become an active part of this transformation and wish to receive their feedback. The more people bring in their motivation and expertise and turn them into concrete actions, the closer we move towards our shared objective: A more just, equal and wellbeing-centered world, operating within our planetary boundaries and safeguarding our ecosystems and species.

CARING FOR NATURE

• We introduced certified natural and organic cosmetics in all of our hotels.
• We work closely with organizations creating positive impact for the ecosystems we operate in. Maritimo Recycling is an organization that raises awareness of waste in the Adriatic Sea and for circularity in general. Apart from informing and educating, they are also conducting several beach clean-up initiatives. We invite our guests to be part of their journey through donations or participation.
• Wild (non-domesticated) animals are neither displayed nor interacted with while kept at the property, nor are they harvested, consumed, or sold.
• Due to the reconstruction taken on hotel Supetar, we have permanently relocated turtles to a new, larger and more natural environment in the gardens of hotel Croatia Cavtat.
• We are digitizing our operations. We have implemented software solutions for managing and storing documentation with the aim of significantly reducing paper usage.
• Our employees have switched to EARTHBOUND sneakers as workwear – Croatian biobased sneaker brand with rigorous ecological standards. Using the strongest natural fibers, they are crafting durable and stylish sneakers all the while ensuring minimal environmental impact through. EARTHBOUND is the first Croatian B Corp certified company.
• We have implemented a change in the paper used for our Collateral across almost all of our properties. We now use a premium sustainable paper brand called Munken Kristall, which is produced by Arctic Paper Munkedals. This is one of the world’s most environmentally friendly paper mills globally recognized for its efforts towards sustainability, with a reputation for its eco-friendly practices and proximity to nature. Furthermore, it has been awarded a Silver Material Health Certificate by the Cradle to Cradle Products Innovation Institute. Their production process follows a sustainable circular model that promotes environmental responsibility. For further information on this sustainable paper brand, please visit www.arcticpaper.com.
• We have replaced cleaning agents with environmentally friendly products that have the EU ECOLABEL certificate.

WASTE REDUCTION

• We switched to eco-friendly cosmetics packed in 100% recyclable plastic material. The packages are being collected after use and send to a recycling facility. We are also using larger dispensers to reduce packaging waste in all of our hotels.
• We removed single-use and disposable plastic from all our hotels (plastic straws and cups, food containers, all plastic cutlery and tableware, all plastic stirrers) and replaced them with biodegradable ones. With this measure, a total of 1255 kg of plastic packaging was collected for recycling in 2022 which was also the result of investing more effort and training our employees how to better separate waste.
• We have a plastic-free breakfast in all hotels.
• We have implemented wooden key cards in Hotel Supetar.
• We implemented water coolers/dispensers for all of our employees in all of our hotels.
• We provide water in reusable bottles for all employees.
• We improve recycling awareness by providing recycling bins in the public areas of all our hotels.
• We implemented a dedicated food waste policy that includes education, food waste prevention, reduction, recycling, and disposal.
• We conduct regular staff training on how to separate recyclable waste and how to recycle in general.
• We continuously educate employees on rational water and electricity usage, proper waste sorting, nature and eco-system protection, and cultural heritage preservation.
• We created an internal waste management campaign and as a result, we reduced the amount of total waste by 12%, but at the same time we managed to increase the ratio of recycled waste to municipal waste by 7% in 2022 compared to 2019.
• We increased our share of recycling waste from 7,8% in 2019 (as a reference year due to COVID-19) to 8,3% in 2022. However, the overall amount of waste generated decreased from 6.628 m3 in 2019 to 5.881 m3 in 2022.

WATER USE REDUCTION

• To increase the number of guests who opt out of daily room cleaning, we offer incentives. We provide options to reuse bed linens and towels.
• We are installing water-efficient toilets (e.g. low-flow toilets, dual flush toilets) with every renovation.
• We are installing water-efficient showers (e.g. smart showers, low-flow shower heads) with every renovation.
• We have implemented water faucet aerators into pipes and showers in all our hotels.
• A new procedure for watering gardens has been developed in order to educate employees on the method, necessity and timing of watering green areas and flowers, with the aim of rational and sustainable water management in our facilities.
• We regularly check and maintain all equipment to prevent possible pipe breaks and unwanted water loss.
• Monitoring the water consumption on a monthly basis.

SAVING ENERGY AND REDUCING GREENHOUSE GASSES

• We have implemented a key card to prevent electricity wastage in all guest rooms apart from Hotel Odisej.
• We have implemented motion-sensor-controlled electricity in some parts of Hotel Kompas where we identified the need to prevent the waste of electricity.
• At least 80% of our lighting uses energy-efficient LED bulbs.
• All our windows are double-glazed and thus temperature efficient.
• We reuse energy through our pool water heating system by recycling the waste water from our room air conditioning systems.
• We are providing a free electric vehicle charging station in Hotel Dubrovnik Palace.
• Monitoring energy consumption on a monthly basis.
• Regular servicing and maintenance of equipment.
• Installing or upgrading to more efficient devices during renovations, when they break or during annual capex planning.

WELL-BEING OF EMPLOYEES AND CARING FOR LOCAL COMMUNITY

• 70 % (data from 2022) of our employees today come from the area we operate in thus supporting the local community economically.
• Our employees have elected a Workers Council which represents their interests.
• A representative of our employees is a permanent member of our Supervisory Board and, as such, participates in regular meetings.
• Less than 4,5% (data from 2022) of permanent employees leave ALH indefinitely and 43% (refers to those seasonal workers who worked in 2021 and returned to work again in 2022) of seasonal employees reward us by returning for the next season. Those numbers provide evidence of our care and consideration for our employees, their working conditions and our company culture.
• Year after year, we are increasing the health support for our employees. Today, they are entitled to free additional health insurance, free periodic systematic examinations (which are not part of the mandatory provisions according to Occupational Health and Safety requirements), special support in case of serious illness of employees and the implementation of strong Occupational Health and Safety measures through Covid protection program. 
• We support the employment of young people from the local community. Every year, we offer scholarships to a certain number of students from the Dubrovnik High School of Tourism and we provide opportunities for apprenticeships. In 2022/2023 we agreed on 18 scholarships and up to 50 apprenticeships. In 2023, internships for 6 Canadian students from the Institut de Toursime et d’hotellerie du Quebec (ITHQ) were also agreed upon.
• In addition to the regular salary, we reward the performance of our employees financially on a group level and on an individual basis. Regarding group level in 2023 we increased rewards for 20% per employee.
• We financially support educational initiatives by our employees. Compared to 2022 we had an increase of 50% more registered participants in foreign language courses for which the employees themselves expressed their desire to attend.
• Free meals have been introduced for all employees in hotel canteens, and for employees who do not have the opportunity to use a free hot meal in the hotel canteens, a meal allowance will be paid.
• We provide free accommodation and transportation to seasonal employees who are not from our area.
• With the goal of educating as many of our employees as possible, the education budget for this year has been increased by 5%.
• At the end of the year, we organize a party for employees and reward the most successful ones.
• An email address sustainability@alh.hr has been created. It is also available in ALH News (internal employee magazine) where employees can submit their suggestions related to sustainability.
• We signed a new collective agreement for a period of 5 years in which we have introduced two important categories for our employees:
  • Paid leave for the parent of a child entering the 1st grade of elementary school (1 working day). 
  • Paid leave for the care of a member of the immediate family (5 working days).

OUR COMMITMENT TO GUESTS

• We offer local excursions to promote cultural and natural heritage, with an emphasis on areas where our guests will be more acquainted with customs, traditions, our cultural heritage and the local cuisine.
• We provide our guests with information on local ecosystems, history, culture, and visitor etiquette.
• We are continuously educating our guests on how to behave to protect the cultural sites and to respect the ecosystem. We communicate with them through the web, IPTV in the room and public TVs, ALH Times magazine but also through direct contact.
• We are providing low carbon/healthy/vegetarian/vegan food options on the menu in all our restaurants.

SUPPORTING THE LOCAL COMMUNITY

• A percentage of revenue is invested back into the community and into dedicated sustainability projects.
• In 2021, a total of 774,288.50 HRK was given to sponsorships and donations
  • Supporting cultural and artistic projects for guests and the local community and thus providing a platform for local artists to display their talents. Supported projects include Dubrovnik Summer Festival, Unseen Film Festival Cavtat, Midsummer Night Festival, Epidaurus Festival, Dubrovnik Symphony Orchestra, the Museum of Modern Art and many more.
  • Sponsorships for local sports clubs, sport associations and events, for example VK Bellevue Water Polo Club, Basketball Club Dubrovnik, Dubrovnik Triathlon and many more.
  • Sponsorships for education and health initiatives and services such as Dubrovnik Hospital, the Multiple Sclerosis Society, a Flower Garden in Elementary School Lapad and many more.
  • Donations to disaster relief and humanitarian aid projects such as the Croatian National Relief Fund after the earthquake, Charity Events for the local fire brigade, hospitals and disabled children and support through prize vouchers for the Humanitarian Association.
• In 2022, a total of 517,323.54 HRK / 68.660,09 EUR was given to sponsorships and donations including:
  • Supporting cultural and artistic projects for guests and the local community and thus providing a platform for local artists to display their talents. Supported projects include Dubrovnik Summer Festival, Dubrovnik Winter Festival, Unseen Film Festival Cavtat, Epidaurus Festival, Konavle ART and Konavle museums and many more.
  • Supporting local sports clubs, sport associations and events, for example, Water polo clubs VK Bellevue and VK Cavtat, Danče swimming marathon, Croatia Car Racing Championship, and many more.
  • Sponsorships for education and health initiatives and services such as Flower Garden in Elementary School Lapad, projects and fundraisers at Zagreb School of Management & Technology, and Rochester Institute of Technology, and many more.
  • Donations to eco cleanup actions such as Diving Clean up Mljet, EKO Mljet, Konavle Fire brigade clean up, as well as humanitarian aid projects with Dubrovnik Caritas for kids from Ukraine.
• In 2023, Adriatic Luxury Hotels have taken the following actions:
  • We have become proud sponsors of Dubrovnik’s very own rugby team – Rugby Club Dubrovnik. In Rugby Club Dubrovnik, we have recognized a valuable partner towards a brighter tomorrow for our youngest generation, thanks to the inclusion of both girls and boys in the club’s teams and training, reaching out to schools and teaching the basics and importance of inclusion and fair play. Together with Rugby Club Dubrovnik, we have formed the ALH Touch Rugby School League, inspiring young boys and girls to start a brand-new tradition in sports competitions – an inclusive league of future rugby players.
• Continuous efforts:
  • We make sure that the tours and activities we offer to our guests are organized by local guides and businesses and thus generate value for the local community.
  • We acknowledge our role as a corporate buyer and make sure to put local businesses first when buying goods and services. Through this, we support the local economy and strengthen our ties with the community.
  • We acknowledge our role as an employer for regional economic stability and are proud to provide jobs to the local community.

RESPONSIBLE PROCUREMENT

• We have integrated sustainability criteria into our supplier scoring system.
• We make procurement choices also based on the environmental and social impact of the product. Products, that cause less carbon emissions, consume less water and energy, generate less waste or support an organic agriculture will be preferred.
• During breakfast, all small packages (butter, chocolate spreads, jams, etc.) are purchased in larger packages and served in smaller glass containers on the buffet table. We continuously purchase larger product packages instead of smaller ones.
• We procure bed linens and towels from companies that have implemented certified sustainability standards in their business operations.
• We procure food from verified suppliers who confirm their implementation of certified food safety management systems.