Louis : CSR Report 2021

Consolidated Non-Financial Statement

LOUIS PLC

Sustainability Report

For the year ended 31st December 2021

1

Consolidated Non-Financial Statement

Contents
ABOUT THIS REPORT.......................................................................................................................................................................	3
LETTER FROM THE CHAIRMAN........................................................................................................................................................	4
GROUP'S KEY HIGHLIGHTS ..............................................................................................................................................................	5
OUR COMPANY ..............................................................................................................................................................................	6
OUR HISTORY ..........................................................................................................................................................................................	6
OUR BUSINESS MODEL ..............................................................................................................................................................................	8
	Business Developments in 2020	8
	Future Developments	11
OUR VISION, PURPOSE AND VALUES ...........................................................................................................................................................	11
OUR APPROACH TO MANAGING OUR PRIORITIES.........................................................................................................................	12
OUR SUSTAINABILITY GOVERNANCE ............................................................................................................................................................	12
OUR CONTRIBUTION TO THE UN'S SUSTAINABLE DEVELOPMENT GOALS (SDGS) ..................................................................................................	16
MATERIALITY ASSESSMENT .......................................................................................................................................................................	18
IDENTIFYING, COMMUNICATING AND UNDERSTANDING OUR STAKEHOLDERS ........................................................................................................	19
OUR SUSTAINABILITY STRATEGY .................................................................................................................................................................	22
OUR PERFORMANCE.....................................................................................................................................................................	24
PEOPLE AND SOCIETY...............................................................................................................................................................................	24
▪	Health and Safety / Food Safety	24
▪	Employee Management / Talent Attraction and Retention	27
	Human Rights and Equal Opportunities	28
	Employee Policy	29
	Grievance Policy	29
	Recruitment Policy	29
	Diversity	30
▪	Training and Education	30
▪	Supporting Local Communities and the promotion of Local Products	33
	Our Impact on Local Communities	33
	Purchase of products from local suppliers	35
	Younger Generations	35
	Child Protection	36
▪	Personal Data Protection	36
▪	Product/Service Labelling & Fair Advertising	37
MARKETPLACE .......................................................................................................................................................................................	38
▪	Economic Performance	38
▪	Quality and Client Satisfaction	41
▪	Seasonality	42
▪	Compliance	44
▪	Risk Management / Governance	44
▪	Embedding Technology	50
▪	Strategy and Investments	56
ENVIRONMENT.......................................................................................................................................................................................	58
▪	Environmental Management	58
▪	Energy Management	59
▪	Waste Management	60
▪	Water Management	61
ADDITIONAL INFORMATION .........................................................................................................................................................	63
INFORMATION ON PEOPLE AND SOCIETY PERFORMANCE ..................................................................................................................................	63
INFORMATION ON MARKETPLACE PERFORMANCE ..........................................................................................................................................	68
INFORMATION ON ENVIRONMENTAL PERFORMANCE .......................................................................................................................................	70
STANDARDS, CERTIFICATIONS AND AWARDS ...............................................................................................................................	73
GRI CONTENT INDEX .....................................................................................................................................................................	79
CONTACT DETAILS ........................................................................................................................................................................	88
		2

Consolidated Non-Financial Statement

About this report

According to the Companies Law (Cap. 113), Section 151B, paragraph (1), Public Interest Entities that are parent companies of a large group of companies, and at the consolidated balance sheet date, their average number of employees during the financial year exceeds 500 employees, then their Consolidated Management Report includes non-financial information ("Sustainability Report" or "Non-Financial Statement").

The information presented in this report includes all the operations of Louis PLC ("the Company") and its subsidiaries in 2021, namely Louis Hotels Public Company Ltd and Celestyal Cruises Ltd, collectively referred to as the "Group". This report discloses information, to the extent necessary that assists in understanding the development, performance, position and the impact of their operations, in relation to environmental, social and governance matters. Sustainability refers to the activities of the Group that aim to make a positive contribution to the economy, society, environment and its stakeholders.

We are managing the material issues that arise from the Sustainability report, by applying a precautionary approach, which is implemented through our organizational structure, internal processes and the Sustainability action plans that we focus on. For this report, the Group has considered best practices and standards such as the Global Reporting Initiative (GRI) Standards and the ISO 26000 for Social Responsibility. This report has been prepared in accordance with the Global Reporting Initiative framework (GRI Standards: Core option).

For the preparation of the consolidated non-financial statements of the Group, management is required to exercise judgment, formulate estimates and assumptions of the Group which affect the data reported. The estimates and underlying assumptions are based on historical experience and a variety of other factors as well, which are reasonable under the circumstances. Actual results may deviate from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

The Group presents the Consolidated Non-Financial Statement for the year that ended on 31 December 2021.

3

Consolidated Non-Financial Statement

Letter from the Chairman

Dear Stakeholders,

With the COVID-19 pandemic continuing to disrupt both our businesses and daily lives, 2021 was certainly

another challenging year. From safeguarding guests' and employees' health and safety, tackling travel

restrictions and at the same time ensuring business continuity, we have seen fundamental changes in the way business is conducted in our industry. Some of these changes, albeit challenging, have presented new opportunities such as digitization of processes and exploring new means of cooperation both internally and externally. If anything, this setback has highlighted how interconnected we all are and how one's decisions can impact the wellbeing of others. Similarly, geopolitical tensions such as the recent Russia-Ukraine war send immediate shockwaves to global markets and result to significant consequences on trade and businesses, particularly in Cyprus and its tourism and hospitality industry - nearly a million of Russian and Ukrainian tourist arrivals is considered lost.

Behaving responsibly has been of paramount importance for us here at the Louis Group and we have worked hard at leaving no one behind through systematic engagement with our key stakeholders and making sure that our operations and practices, even during these difficult times, have left a positive footprint, both environmentally and socially.

In the following pages, you may read about our efforts to build a more resilient business - one that can be both agile and adaptive while creating added value for all its stakeholders, across the most material aspects identified: People and Society, Marketplace and Environment. A series of Key Performance Indicators have been established to help us monitor the progress of our efforts and continually improve the way we operate. Despite the grave impact that this health crisis had on our business and industry in general, we have set our guests' and employees' health, safety and wellbeing as top priority.

We are fostering our efforts towards a smooth, green and fair transition, one that ensures not just our future but that of generations to come. Tourism was undoubtedly stricken severely but humans' innate need to socialize, travel and explore allows us to remain hopeful and continue to work hard to meet and even exceed our clients' expectations.

Once this crisis is behind us, travelers will once again seize the opportunity to have the much needed break without any restrictions. They can feel free to plan their holidays and catch up on all those destinations they missed visiting because of COVID-19 but were dreaming of for all this time. And we will be there to greet them with the same smile and the same unparalleled hospitality that we are renowned for in the last 87 years. Bringing our motto to life again: creating happy faces in happy places.

…………………………………..

Costakis Loizou

Chairman

Louis PLC

4

Consolidated Non-Financial Statement

GROUP'S KEY HIGHLIGHTS

87 years of

experience in

the tourism

sector

23 Hotel

Units in

Cyprus and

Greece

2.355 personnel

>1.000.000kg

materials recycled

87% of procurement

budget spent to local suppliers

>55 awards received in 2021

2 Cruise ships

9/10 customer

satisfaction score

4.021 training hours

to staff

1:1 ratio of salary to men & women

0 incidents of

corruption

5