Pandox’s GHG emissions in 2022

The reduction in emissions is due to the fact that there were fewer large construction products in 2022, but also that energy-related emissions did not increase at the same rate as guest occupancy. Energy intensity per guest night has decreased, thanks to energy efficiency projects yielding results. The majority of Pandox’s GHG emissions in 2022 occurred both upstream and downstream in the value chain. Pandox’s own operations accounted for just 9 percent of the total emissions. Pandox’s largest sources of direct GHG emissions in its own operations are from combustion of fossil fuels such as natural gas and any leakage of refrigerants, which give rise to Scope 1 emissions. Pandox also purchases electricity, district heating and cooling for the hotels it operates and for the head office. This gives rise to Scope 2 emissions. Pandox’s total market-based GHG emissions in Scope 1 and 2 amounted to 8,708 (8,478) metric tons of CO2e. The Company’s largest Scope 3 emissions upstream in the value chain come from purchased building materials, products and services, mainly in connection with extension and retrofit as well as renovation of the properties. Downstream in the value chain means emissions from tenants’ hotel operation, mainly from energy consumption, which is the single largest emissions category. Waste does not make up a significant percentage of Pandox’s total emissions as a property owner. Even so, the Company is working to facilitate a reduction in emissions from waste at the hotels it operates, as this makes up a significant percentage of their emissions. Business travel accounts for only a negligible portion of Pandox’s Scope 3 emissions. Pandox’s total market-based GHG emissions in Scope 3 amounted to 90,995 (101,610) metric tons of CO2e. In 2022 Pandox carbon-offset its Scope 1 emissions, amounting to 5,825 (5,636) metric tons of CO2e, through a solar energy project in Vietnam. The project has Gold Standard certification. Carbon offset will not be counted in the activities that Pandox implements to achieve its climate targets.

GHG emissions in the value chain (Scope 1,2 and 3)

Emission categories upstream and downstream in the value chain (Scope 3)