At NagaCorp, we are cognisant that whatever impacts the environment will also impact our business. With this underpinning, we seek to operate in a responsible, transparent and sustainable manner that delivers the highest quality of services and products to our customers while minimising our impact on the environment.
Our efforts to manage our environmental footprint are targeted at reducing our carbon emissions, energy consumption, water consumption and waste production, and improving air quality. In addition, we are closely monitoring the implementation of Cambodia’s carbon neutrality plan and National Energy Efficiency Policy, which were approved by the Royal Government of Cambodia in end-2022.
To realise our sustainability commitments, we engage with external stakeholders who align with our strategy and goals, adopt industry best practices, promote environmental awareness and engagement among our workforce, and measure and disclose our impacts. Setting environmental targets will be our focus in 2023 to propel our goals to action.
From 2016 to 2018, NagaWorld, our flagship property in Phnom Penh, Cambodia, was certified by the ASEAN Tourism Forum and recognised as an ASEAN Green Hotel. The ASEAN Green Hotel Standard is an initiative dedicated to promoting sustainable tourism in ASEAN by adopting environmentally-friendly and energy conservation practices.
To reduce our environmental footprint, we actively engage our employees and customers to adopt environmentally-friendly practices. One of these initiatives is our towel and linen reuse programme. We encourage hotel guests to reuse bed linens and bath towels unless a replacement is requested. This has helped to save considerable amount of water and energy used for laundry. Educational messages on saving water and energy are also put up in common areas to encourage our employees and customers to be environmentally friendly.
At the national level, we continue to foster cross-sector partnerships by playing an active role in working alongside the Cambodian government, non-governmental organisations, and the Cambodian business community to promote green initiatives and raise environmental awareness.
1. Energy Usage
Besides tapping on the Phnom Penh city grid, we also use diesel for operating backup generators and hot water boilers, and liquefied petroleum gas ("LPG") in our kitchens for cooking. Total energy consumption in 2022 was higher as compared to 2021 as we operated for 5.5 months in 2021 due to a temporary closure of business operations related to the COVID-19 pandemic. For a more accurate analysis of our energy use, we compared the average monthly energy use intensity. In 2022, the average monthly energy use intensity was 21.7 kWh/m2, 38% lower than that of 35.0 kWh/m2 in 2021.
We are constantly exploring ways to save energy, especially for heating, cooling and lighting as they consume significant amounts of energy. These initiatives are estimated to cumulatively save at least 1,465 MWh in energy usage and US$233,000 in energy costs annually.
Hotel room fittings and housekeeping protocols are also designed to save energy:
2. Carbon Emissions
At NagaWorld, we are committed to minimising our carbon footprint by reducing our direct and indirect emissions, while pursuing customer satisfaction and operational efficiency. This entails seeking green technologies and reviewing our current practices.
In 2022, enhancements were made to our carbon accounting methodology. During the Year, our average monthly carbon emissions intensity was 7.4 kgCO2e/m2, 12% lower than 2021’s 8.4 kgCO2e/m2 where we operated for 5.5 months due to a temporary closure of business operations related to the COVID-19 pandemic. Carbon emissions from purchased electricity (Scope 2) represented more than half of carbon emissions that are owned or controlled by NagaWorld. Scope 1 (direct) emissions increased significantly in 2022 due to the new disclosure of fugitive emissions from refrigerants and the increased use of LPG for cooking.
On top of our energy reduction initiatives which would contribute to decreased carbon emissions, we are looking into reducing our usage of refrigerants as they constitute a sizable portion of our carbon footprint. Our action plan includes:
To reduce our carbon footprint, we will continue to seek out and implement energy-monitoring and energy-saving practices and technologies.
In understanding how climate change affects our business and its underlying financial impacts, we undertook an internal climate risk assessment that is based on the TCFD framework. It guides our development of climate mitigation and adaptation strategies, with the overall aim to advance a low-carbon strategy. For more details, please refer to pg 52 to 53 of our Annual Report 2022.
3. Air Quality
In 2022, the Ministry of Environment of Cambodia launched the Clean Air Plan as part of climate action. NagaWorld supports the national plan to reduce air pollution and continues to comply with the relevant Cambodian rules and regulations governing air pollution. Our air emissions comprises emissions from the use of diesel in our backup generators and hot water boilers, liquefied petroleum gas in kitchens and fuels used in vehicles.
As part of our commitment to ensure the safety and comfort of our building users (e.g. customers, visitors and employees) and communities where we operate, preventive measures are implemented to remove air pollutants from operating our backup diesel generators and premises where smoking is allowed.
During 2022, our primary focus was ensuring the air handling systems functioned effectively to reduce the risk of the air-borne coronavirus spreading, should there be any infections on our properties.
Other air quality improvement initiatives include:
4. Water Usage
According to the World Resources Institute’s Aqueduct Water Risk Atlas, Cambodia is a high-water-stress country. This further highlights the importance of proper water management in Cambodia. Our water supply comprises treated freshwater from the Phnom Penh Water Supply Authority (“PPWSA”). The PPWSA complies with the drinking water standards of the World Health Organization and national drinking water standards. NagaWorld is committed to the responsible usage and management of water. Being conscientious about our water usage also brings about utility savings. Most of the water used is for the cleaning and maintenance of our properties. As part of our environmental strategy, we develop strategies to reduce our water consumption by optimising our mechanical systems and processes and fostering responsible user behaviour.
Water conservation features and practices are incorporated into the building design and maintenance to enhance water conservation.
In 2022, our average monthly water use intensity was 0.15 m3/m2, 23% lower than 2021’s 0.20 m3/m2; despite operating for 5.5 months in 2021. As the business recovers from the pandemic, we will continue to monitor our water usage.
5. Waste and Effluent Management
We embrace the “5R” strategic approach in our waste management – Refuse, Reduce, Reuse, Recycle and Remind. We also aim to minimise resource use and maximise reuse, recycling, and recovery in business operations. From building construction, water use, energy use, packaging, or food waste, we focus on uncovering opportunities for responsible consumption.
Our environmental policy encourages the use of goods that have a lower environmental and social impact and seeks to instil life cycle thinking into our decision-making process. For diverted waste, we work with local companies to ensure our waste is handled, recycled and disposed of appropriately. They comprise shredded playing cards, carton boxes, hotel soap bars, plastic drinking water bottles, food waste and used cooking oil. Our food waste from staff cafeterias, restaurants and kitchens is sent to local farms to be cooked and used as animal feed. In 2022, we recycled 529 tonnes of waste.
From 2023, battery recycling bins will be installed at our properties to collect spent alkaline batteries.