Mediterranean Green Tourism

José Guillermo Díaz

CEO ARTIEM

27 Noviembre 2014

agenda

1. Artiem Background

2. Our Sustainability Culture Process

3. Actions & Results

4. Obstacles

5. Conclusions

1.- artiem background

• 1974

• BASED IN MENORCA

• 3 HOTELS

2.- Our Sustainability Culture Process

Beginning 1998-2002

• Pressure of TTOO

• Demand of German customers

• ISO 14001 , EMAS

Believing2003-2007

• We noticed that it was possible to take care of the environment by being more efficient.

• The trend was raising sharply

• Part of our employees were aware of this trend

• A growing part of our customers started to recognize our effort

Internalizing 2008-

• Apply as our VALUE

• We became evangelists for the cause

• We began to work with our stakeholders in favour of the environment´s sustainability

3.- actions & Results

AwarenessEfficiency &

managementSupply

EfficientProcesses

Local Cooperation

“We believe that taking into account the interest of our stakeholders is not only our responsibility but also it is a way to improve our competitiveness”

awarenessRemove 95 kg of plastic from the sea.(1,3 Tm for whole season)We draw attention to the importance of caring for- and protecting our environment.

Opportunity to contribute in taking care of the environment, and to enjoy a day at sea.

Contribute to take care of the environment.Pride of ownership to the company.

Improving the environmentInvestment in brand reputation.

On the 4th of August, peak season, we close our S&N centre and invite customers and employees to help to clean our coast.

efficiency & Management Supply

From 1.998 on we have reduced the carbon footprint by 44,79% while we have increased our installed power.

We still offer our customers the same comfort. Customers see how we care for the environment.

As a company we are more efficient, so we can invest in more resources to be more competitive.

Strengthen our Company´s purpose.

More efficient, so more profitsWe preserve our most competitive advantage: Our environment

Investment in equipment, management of the demand, changing habits, revision of fees, working with suppliers.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

kg of CO2 vs Electric Power Installed

kg de CO2

Linear (kg de CO2)

Efficiency & Management SupplyOptimizing our climate/temperature control by using the hot air produced by the air condition chillers to generate sanitary hot water.

The year we introduced the best practice we reduced

23,45% (53.454 kW) spending of kW for retrofits, and 28,66% (13.053 liters) spending of petrol for “heat recovery”

R22 replaced by gas R401a, not harmful for the ozone layer

CO2 emission reduction by 158 Tn

Reduced noise and vibrations in the rooms

Enhancing the feeling of comfort

Minimizing incidents.

Improved performance of our Equipment at operation level to adapt to the demand

Reduce the electricity cost in 5% (7.000€) Reduce the diesel cost in 20% (10.000€) High return on investment We respond to a social demand

efficiency proccessesLet the costumer choose when they want to replace their bed linen.

We introduced this practice in 2008. That year we reduced spending by 34,95% of petrol, water, salt, Kw, and detergents.

Allow the customer the choose when to have a bed linen change.Increase of guest satisfaction from 86% to 91% in 2014.

Improved the work conditions by reducing the kg of linen to manipulate and transport everyday

Reduce the Laundry costs by 27,97%.Small investment huge return.

efficiency processesWe developed a software in order to have paperless management.

Reduced paper, toners, faxes, envelopes and binders by 70%.

We got a better knowledge of our customers, so we could improve the service we offered.

Eliminate routine tasks, so more time for management, thinking and creation.

Reduction by 4.000 hours of unproductive labour We got more information, quicker, without errors in the processes.

local cooperation We set up a project called “Aportam” with the aim to contribute to sustainable development of our rural environment

Preserve our rural environment.Provide revenues to our rural areas.Help to maintain local culture and traditions.

Provide natural and healthy products.Improve our guest satisfaction.Offer a more authentic experience.

Pride of ownership to the company.Social recognition.Strengthen our purpose.

Greater differentiation.

4.- ObstaclesPublic Services Efficient Communication Extra Costs

At first municipal services did not segregate the waste

Difficulty for hiring companies for the management of hazardous waste

Public administration did not know which procedures to follow

Great complexity and dispersion of law

To value the actions we did and ensure the market values

To find out how to communicate properly

Insensitivity of our providers

Initially investments were seen as expenses

Resistance to change habits

Deal with the lack of competitiveness of local products and the market requirements

5.- Conclusions• Sustainability is a strong trend and we have to see it as an

OPPORTUNITY.

• Being sustainable requires us to innovate and as a result become more competitive.

• Caring about our environment helps us protect our best competitive advantage.

• Leading sustainability not only gives us social recognition, but also strengthens the pride of belonging to our company.

Thank you!!

José Guillermo DíazCEO artiem

27 Noviembre 2014