Economic

Direct Economic Value Generated & Distributed

Including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments

From the pie chart above, SBR spends approximately 1.6% of its annual revenue on social investments. This is not very common for companies at all. In fact, most companies spend much less than 1% of their revenues on CSR or sustainability projects. In 2013 alone, SBR has spent over S$ 180,000 on CSR efforts.

Financial Implications, Other Risks & Opportunities

For the organization’s activities due to climate change

SBR takes climate change issues seriously. SBR acknowledges the fact that climate change is real and that progressive changes as a result will be felt throughout the century.

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Short Term

Long Term

While SBR does not see any significant financial impacts in the short term, many aspects of how it operates and plans its business in the medium to long term take climate risk into consideration.

SBR foresees that financial risks in the medium to long term may include:

Increased Adaptive costs

E.g. coastal erosion from rising sea levels, stronger and more frequent rainfall events and tropical storms which could cause structural damages to our buildings and associated problems such as floods, water infiltration into buildings etc.

As ambient temperature will increase, SBR will have to find new solutions to deal with mosquito control. These new solutions tend to be more expensive, which are additional costs to the company.

As the impacts of climate change increases, the world economy will be adversely affected. This will affect leisure travels and therefore SBR’s business.

As a beach front business, sea level rise will become a major issue for SBR in the long term.

The potential of future environmental regulations and taxes serve to potentially increase operating cost.

Impacts

Opportunities

With climate change also comes the opportunity to provide sustainable hospitality services.

Having been environmentally conscious from the very start, climate change also could add a competitive advantage to the resort as other businesses work to catch up and improve their environmental credentials.

Coverage of Defined Benefit Plan Obligations

Our coverage includes the following:

CPF Contribution
Compulsory
Transportation
Medical insurance (& hospital coverage)
Work/Life Balance
Accommodation
Meals

Significant Financial Assistance Received from Government

SBR has not received any financial assistance from the Singapore government so far nor is the government present in the shareholding structure. The construction of the hotel was privately funded.

However, SBR is starting to look into a range of government funds, especially for the implementation of new energy efficiency projects.

Range of Ratios of Standard Entry Level Wage

By gender compared to local minimum wage at significant locations of operation

Our wages are in line with standard minimum entry level wage in the hotel industry in Singapore.

We have recently increased our minimum wages to make them more competitive. This process is also part of our strategy to attract and retain local talents.

Ratio for both genders is in the range of 0.93 (in our favor).

Procedures for Local Hiring

SBR is an employer of equal opportunity. It has a clear procedure in place when it comes to foreign verses hiring Singaporeans. Priority is always given to Singaporeans in situation of equal skills and experience.

Proportion of Senior Management Hired from the Local Community

At SBR, senior management is 100% Singaporean and comprises of family members (we define senior management as those above the normal department manager positions).

Most of our management are locals, and come from diverse backgrounds. SBR believes that it is important to have such a balance because diversity in the work force provides a stronger management by integrating views from different angles.

Breakdown of Department Managers 2014:

Total: 9

Singaporeans (including Permanent Residents): 8

Foreigners: 1

Development & Impact of Infrastructure Investments & Services

Provided primarily for public benefit through commercial, in kind, or pro-bono engagement

Infrastructure Investments

While many of the infrastructure at SBR was developed with guest satisfaction and the environment in mind, they were not developed primarily for public benefit. Most of the resort's infrastructure has a direct economic return such as rooms and restaurants facilities.

Infrastructure Investments

Before implementing a new service, SBR conducts a financial analysis of how much it’s going to cost verses financial returns. Initiatives are subdivided into two categories:

Financial investments: Investments for which a positive financial return is expected

CSR investments: Investments for which no financial return is expected.

For CSR projects, a budget is allocated from the total hotel revenues. SBR has no financial interest in doing so but also believes that acting as a responsible corporate citizen in giving back to society is an important moral task that any business should consider.

Our Eco Tour program in particular is a CSR project that is for public benefit by teaching students, companies, and the community about sustainable business using SBR as a case study. Although a local community assessment has not been conducted, we are confident of the importance of this program as it has been requested by many teachers and business. We believe that knowledge about sustainable business will benefit the public as they will have better quality of life from business impacts when society accepts that sustainable and responsible practices are the only viable way of doing business.

Our Eco Tour program is conducted free of charge (pro bono) and since its start in 2007 has been conducted for more than 7500 participants (as of October 2014). For 2013, there were over 1900 participants! The estimated cost of running the program for each year is about S$12,000 per year.

Significant Indirect Economic Impacts

SBR works with various organizations who advise us on the economic needs of Singapore and help us to understand our indirect economic impacts.

Extent of Impacts

For all of our indirect economic impacts, the extent of the impact is very small, and not possible to observe in relation to the overall Singapore economy. However, as a responsible business, we feel it is still important for us to study and understand our indirect economic impacts.

Policy, Practices & Proportion of Spending

On locally-based suppliers at significant locations of operation

SBR has a strong policy to purchase its supplies as much as possible from local suppliers.

For aspects such as F&B, local is defined as within South East Asia. One of our primary reasons for purchasing locally is to reduce our carbon footprint.

More than 70% of our purchases are done locally (as a percentage of our total purchasing budget)

In addition to the geographic location, we also take into account:

Cost
Quality
Carbon footprint of transport
Sustainability of the supplier in its production and its disposal processes
Social performance.

Recently, SBR has implemented a sustainability fund.

This fund collected through various means will help to fund our sustainability projects with the aim of having our sustainability programs self sustained in the future.