Social responsibility policy

Frederiksberg, November 4, 2022

1. Introduction

The Board of Danske Hoteller A/S has adopted this policy for social responsibility in accordance with the company's report on good corporate governance.

Danske Hoteller A/S regards social responsibility as an important prerequisite for running, innovating and developing the company in accordance with good social norms and an awareness that the company, with its size, is part of society, and is therefore also obliged to contribute to society's development and to take responsibility.

Danske Hoteller A/S is a national, but very locally rooted hotel chain. There is therefore a large local focus on the places where Danske Hoteller runs a business and has great local involvement in the respective hotels' natural market area.

As a natural part of the hotels 'local presence, the company at management level is also involved in what occupies the local areas, and often the hotels' premises

and service offerings in the restaurant and hotel area a significant focal point for the local association and community life, family gatherings etc.

As a result of our national distribution is Danske Hoteller A/S also strongly concerned with general social responsibility and the topics that concern the population of Denmark. That is why we work with both national and local agendas.

2. Purpose

The purpose of the social responsibility policy is to:

• to set the overall framework and ambitions for the company's social responsibility.
• to ensure focus on and, if necessary, strengthen social responsibility in the company, so that it always at least meets current legal requirements and norms.
• to engage the company's management and employees in the areas that the company particularly focuses on in corporate social responsibility
• to help strengthen the company's relationships with customers (guests), suppliers, authorities and other collaborative relationships

3. General information on social responsibility

Danske Hoteller A/S is a strong Danish hotel chain that runs traditional hotel operations. The operation is based on solid local roots, and the main activity is to offer accommodation and meals to the customers. Danske Hoteller wants to offer customers a wide range of products with a decent quality and at reasonable prices.

The operation currently comprises 25 hotels spread throughout Denmark, however with special emphasis on Jutland. All hotels are owned by the group.

The company's business model is based – with the guests at the center – on the triple bottom line model:

• Social responsibility
• Environmental responsibility
• Financial responsibility 

In addition to the strategic goals for the company, which are described in the group's strategy document and discussed on the company's website, the company's goals also include:

• that we create value and good experiences for our thousands of guests annually and do so in a proper and honest manner
• that the company is run in a financially and resource-wise as well as socially responsible way
• that the company is constantly at the forefront of development and able to adapt to the new business and societal requirements

Danske Hoteller A/S would thus like to help - in the broadest sense - contribute to a sustainable society that, among other things, creates value, experiences and jobs.

4. Special focus areas

Danske Hoteller A/S works to make the company as sustainable as possible. For now, it has been decided to work with three of the 17 global goals: Health and well-being, sustainable energy and responsible consumption and production. The group has generally selected a number of focus areas that focus particularly on social responsibility:

a. Guests
Danske Hoteller A/S focuses on the individual customer - private as well as business - and the different situations and needs they may have. Hotel business is a service profession and the employees in the group must constantly ensure that value is created for both the customer and the respective hotels through proper and honest service.

Feedback from guests is very welcome - positive as well as negative - because the hotels thus have the best basis for developing the service and thus the business. 

b. The employees
The employees are the most important resource in any service company, and Danske Hoteller is very aware that retention and development of employees are absolutely central and decisive for the development of the company.   

The more detailed rules for the employees and what the company wants to stand for are described in the company's Personnel guide, where one of the goals, among other things, is – in addition to providing guests with good service – to provide colleagues with good service and help each other in everyday life. This achieves two things, namely: that the colleagues become happier and engaged, which largely affects the level of service to the company's guests, which ultimately benefits both the employees and the company.

Danske Hoteller wants an open and open-minded culture, where creating results together and in collaboration is an essential element. It is crucial here that the individual employee can make the best use of their skills, regardless of gender, level of education and country of origin.

c. Diversity
Danske Hoteller A/S has drawn up a policy for diversity which, among other things, deals with gender, life stages, ethnic and educational backgrounds as well as the composition of the board and management. The policy is available on the company's website.

d. Human rights
It is therefore part of the group's values ​​that colleagues must be treated equally and properly. This minimizes the risk of employees feeling discriminated against or not being treated equally (in relation to human rights).  

e. Resource consumption
It is forever Danske Hotellers ambition to optimize resource consumption so that the hotel operation has the least possible impact on the environment. To emphasize the importance of this, the company's business Strategy Framework has a section on CSR strategy, which describes an increasing focus on resource consumption. Resources have thus been set aside for this with a view to reducing consumption and thereby reducing the risk of negative impact on the environment.

There is also a strong focus on the environmental impact, the use of inexhaustible and scarce natural resources is minimized. Significant risks in resource consumption are e.g. electricity, heat and food consumption as well as consumption of disposable plastic. For all these areas, action has been taken to control and reduce consumption and waste (including food waste).

f. Sponsorships
Danske Hoteller engages at both local and national level through sponsorships to support socially beneficial initiatives and activities. 

Overall wants Danske Hoteller to support associations and organizations that take care of people with special problems.

At the national level, the focus is primarily on disease control as well as activities for children and adults, just as at the local level, support is most often provided for sports associations or other local activities that strengthen development in the local community.

g. Anti-corruption
The most significant risk in relation to corruption is assessed to be the risk that an employee unjustifiably receives gifts / other funds from stakeholders who have an interest in influencing the employee's decisions.  

There is in Danske Hoteller rules for where purchases for the company must be placed, and the individual employee cannot therefore be influenced to purchase elsewhere.

Members of the Procurement Committee must never receive gifts or other services from stakeholders who have an interest in influencing employee decisions.

h
It is the company's position that the company must constantly pay tax in accordance with the rules that apply to Denmark.

In this connection, internal controls have been established, which ensure that the head office and the control function constantly monitor the individual hotel units, so that the highest possible degree of security is created to ensure that the rules - both internal and external - are complied with.

5. Reporting

Danske Hoteller A/S explains its social responsibility on the company's website, and once a year - in the company's annual report - the results achieved in a large number of focus areas related to the company's social responsibility are reported.  

6. Evaluation

Danske Hotellers A/S's policy for social responsibility is evaluated once a year as a self-evaluation, typically at the board's annual strategy meeting.