SUSTAINABILITY AT THE BAY

• We are deeply committed to managing our energy footprint through smart technology and operational discipline. We aim to mitigate our contribution to climate change, ensure long-term business resilience, and meet the growing expectations of our guests and stakeholders for responsible, low-carbon hospitality. Through targeted efficiency measures and robust tracking,
• We achieved a remarkable 9.10% reduction in energy consumption in 2025 compared to the previous year. Furthermore, we surpassed our annual electricity intensity targets by limiting consumption to an average of 37.75 kWh per guest night, from a 3% reduction target of 45.31 kWh per guest night. To evaluate energy performance against internationally recognized hospitality benchmarks, The Bay utilizes the Cornell Hotel Sustainability Benchmarking (CHSB) Index. The Bay’s energy intensity performance was positioned between the median and low benchmark thresholds within the CHSB Index in 2025.
• Several ongoing initiatives help us drive energy efficiency across our properties:
• 100% LED light fittings
• Use of sensors and motion detectors
• Standard set point for all Air Conditioners
• Replacing older electrical appliances with new ones
• Electricity performance monitoring through the sub-electricity meters
• Embracing clean power, our on-site solar PV and solar thermal systems generated 116,046.20 kWh in 2025. As we work toward our group-wide sustainability goals, we currently maintain a steady 9% share of renewable solar energy in our total energy mix, with a firm commitment to achieve a 30% share of renewable energy by 2030.

• The main source of water for the resort is grid water, which is treated water supplied by the Sri Lanka Tourism Development Authority (SLTDA). Therefore, the resort does not operate a separate water purification plant.
• By the end of 2025, water sub-meters had been installed in most areas of the resort to enable continuous monitoring of water consumption across different sections of the property. The total water consumption increased by 15.48% in 2025 compared with the previous year.
• Managing our available water resources responsibly is vital to our operations, and we do so through the following targeted measures:
• Utilizing low-flow fixtures and systematically replacing older fixtures with new, high-efficiency models.
• Treating all wastewater on-site through an aerobic Sewage Treatment Plant and safely reusing it to nourish our lush resort gardens and landscaping.
• Conducting annual water flow assessments to identify potential leaks and optimize back-of-house operations.
• On-site water bottling (the facilities at The Bay produce 13,223.00 glass water bottles per year for guest use in 2025).

At The Bay, we actively combine rigorous operational practices with structured frameworks to minimize our environmental footprint and maximize productivity. Several key policies and practices help us to manage our resources with maximum efficiency across our operations:

• Procurement: As per our sustainable procurement policy, we adhere to using locally made and/or sourced products, prioritizing the purchase of products with sustainable certifications, ensuring minimal packaging waste, and bulk purchasing to eliminate unnecessary waste at the source.
• Productivity: The structured 5S concept is implemented to enhance productivity and efficiency in the use of our resources.
• Resource Management: Paper consumption, linen usage, and chemical usage are continually monitored with strict annual targets set for each area to prevent unnecessary depletion.
• Waste Management: Currently, our resort’s waste composition consists of 75% food waste, 15% mixed waste, and 10% recyclable waste. We successfully recycle or reuse 10% of our total waste materials. At present, our target is 20% landfill waste for all our properties.

Committed to empowering the communities around us and sharing our success with them, we allocate USD 1.5 per room night towards our Corporate Social Responsibility (CSR) fund. This revenue-based mechanism supports our grassroots CSR projects, which cover three vital aspects directly entwined with our operations: the 3Ws – Water, Wildlife, Women. Driven by this framework, our resort successfully generated LKR 5,315,637.05 (USD 17,428) to invest in community well-being and environmental resilience, actively executing targeted initiatives under each pillar in 2025:

• Believing that access to clean water is a fundamental right, we actively support our surrounding region where clean potable water is a scarce resource. To address this vital need, we regularly provide clean water to local community members, government institutions, and organizations upon their request as a dedicated community service.
• We identified that approximately 240 families living in the Kannagipuram GS Division, Vaalaichenai, currently lack access to a proper main line water connection, and Individual connection to 80 families. To address this issue, we have planned to provide water connections with the support of the National Water Supply & Drainage Board, Batticaloa, and the Koralaipattru Pradeshiya Sabha.
• As part of our commitment, we participated in a beach cleanup for World Tourism Day. 18 of The Bay staff joined over 50 volunteers in a beach cleaning initiative along a 2 km stretch of Pasikudah coastline. Together, they collected 150 kg of waste, helping preserve the area’s natural beauty and protecting the marine life.
• We recognize how critically important female participation is to the hospitality industry in Sri Lanka, where women amount to less than 10% of the workforce at present, well below the global average of 54%. Committed to making meaningful progress towards advancing gender equality, we have increased our number of female employees from 13% to 14% over the past four years and aim to achieve 20% by 2027.
• In recognition of the International Day of Charity, snacks and fresh fruit juice were shared with the 18 children (girls) at Theresa House, Valaichenai. Mr. Damjee Ediriweera is a repeat guest, and during his second visit, he made a kind donation to The Bay to support the provision of school bags and shoes for 30 girls at the care-taking home of Good Shepherd Home, Valaichenai, contributing positively to their education and daily needs.

We believe that true sustainability cannot be achieved in isolation, and it requires a collective commitment built on education, transparency, and a shared cultural mindset. To foster this environment, we actively conduct internal and external training sessions across eight core sustainability topics, striving to maintain an average 70% participation ratio per topic across our workforce. Driven by this framework, our resort provided 1138.75 total training hours in 2025, averaging a highly impactful 8.9 hours of professional development per employee. Our educational modules and community initiatives are designed to turn sustainability principles into everyday actions:

• Core Sustainability Frameworks: To ensure our entire team is aligned with our environmental and ethical goals, we achieved a 61% staff attendance rate for our Introduction to Sustainability module.
• Operational Safety & Compliance: We delivered technical safety workshops to protect both our team and our surroundings, achieving a 32% attendance rate for Chemical Handling and a 40% attendance rate for Waste Management practices.
• Empowering the Next Generation: Extending our knowledge beyond the resort’s boundaries, we regularly open our doors to the community. We celebrated Global Recycling Day on March 11th at Kalkudah Namagal College, promoting awareness of waste segregation, recycling, and sustainability. Students showcased crafts made from recycled materials, encouraging responsible waste management. An awareness program and art competition were held at Kalmadu Vivekanantha School to educate students on the dangers of single-use plastics on 5th of June on World Environment Day.

• Maintaining the highest standards of integrity, transparency, and operational ethics is core to our identity. We monitor our operations monthly to ensure full compliance with local laws while holding ourselves accountable to international benchmarks.

Our unwavering dedication to robust legal, environmental, and social governance is driven by several key pillars:

• Auditing: We underwent 17 comprehensive audits to ensure policy compliance, including 7 on-site audits led by our Sustainability Executive, 6 audits conducted by [missing entity] and 4 accredited third-party assessments.
• Ethical Labor & Human Rights: We maintain a zero-tolerance policy for child and forced labor. 100% of our workforce undergoes strict age verification via birth certificates and National Identity Cards (NICs).
• Local Employment & Equality: We actively support our regional economy, with 46.27% of our team members residing within a 30km radius of the property.
• Environmental & Health Testing: We regularly submit environmental samples to accredited third-party labs, maintaining 100% safety parameters for Legionella alongside strict, continuous testing of drinking water, swimming pools, and treated wastewater.
• Global Gold Accreditation: Reflecting these ongoing efforts, we successfully retained our prestigious Travelife Gold Certification for accommodation sustainability.