ESG policy

 

1. Executive Summary

The Motel Next ESG strategy provides a comprehensive, detailed, and structured framework that integrates environmental, social, and governance considerations as an integral part of the company’s business model. The purpose of this document is to demonstrate that Motel Next operates not merely as an accommodation provider, but as a specialist in B2B employee housing, capable of meeting large corporate, financial, and regulatory expectations.

The core principle of the strategy is that sustainability is not a marketing tool, but a matter of risk management, quality assurance, and business development. Accordingly, Motel Next’s ESG approach is data-driven, long-term, and integrated, with particular attention to the ESG and CSRD obligations of large corporate clients.

2. Motel Next’s Business Model from an ESG Perspective

Motel Next operates and develops premium employee apartment accommodations primarily for corporate clients. The purpose of the service is to provide stable, safe, and long-term sustainable housing solutions for employees. From an ESG perspective, this activity sits at the intersection of social and environmental impacts, as it directly influences employees’ quality of life, companies’ workforce retention capabilities, and the local infrastructure and environment.

Motel Next’s business model is explicitly designed for the long term, which naturally encourages energy efficiency, resource optimization, and predictable, high-quality operations. This approach is fully aligned with international best practices in sustainable real estate operation.

3. Environmental Pillar (Environmental)
3.1 Climate Change Strategy and Risk Management

Motel Next interprets climate change both as a strategic risk and as an opportunity. The energy demand associated with property operations, volatility in energy prices, and the increasing frequency of extreme weather events are all factors that may influence operations over the long term. Accordingly, Motel Next regularly assesses climate-related risks across short-, medium-, and long-term horizons.

The company aims to gradually transition its operations towards a low-emission pathway, in line with European climate policy objectives. To reduce Scope 1 and Scope 2 emissions, Motel Next applies energy-efficient building services systems, modern insulation solutions, and intelligent energy monitoring and management systems. Scope 1 emissions refer to direct emissions resulting from Motel Next’s operations, such as those arising from building heating systems and energy use of company-operated equipment. Scope 2 emissions comprise indirect emissions associated with the consumption of purchased electricity and thermal energy.

3.2 Energy Efficiency and Solar Energy Utilisation

Motel Next’s energy efficiency approach is based on the conscious planning, continuous monitoring, and on-site optimisation of energy consumption. The objective is not solely to reduce overall energy demand, but to align energy generation and energy use with the actual operational needs of the buildings.

All buildings operated by Motel Next are equipped with on-site solar power plants, enabling the local utilisation of solar energy. These systems are supported by intelligent control solutions that allow continuous monitoring of energy generation and consumption, as well as remote supervision and regulation of operations via digital tools, including mobile applications.

Electricity generated during daytime hours is primarily used within the buildings, with particular focus on the production of domestic hot water and the energy supply of heating systems. The objective of the energy management approach is to maximise on-site self-consumption of locally generated energy. To this end, an operator-developed and applied control software ensures that the generated electricity serves internal building systems and is not fed back into the public electricity grid.

This solution contributes simultaneously to the predictability of energy consumption, the stabilisation of operating costs, and the reduction of environmental impacts associated with operations, in line with Motel Next’s long-term sustainability and operational reliability objectives.

3.3 Waste Management and Circular Operations

Motel Next’s waste management approach is based on prevention, structured organisation, and the optimisation of resource use. During the operation of its accommodation facilities, the company aims to reduce the overall volume of waste generated and to increase the proportion of recyclable materials, in line with the principles of the circular economy.

Selective waste collection is implemented by Motel Next through an organised, in-house system. Within the apartment premises, separated waste collection is ensured, supporting residents’ active participation in recycling practices. In connection with the national deposit-return scheme, a designated collection area is provided for returnable bottles and containers, enabling residents to collect these items separately and redeem them at official return points (REpont).

This approach not only improves the efficiency of waste management, but also contributes to strengthening residents’ environmental awareness and reducing the environmental footprint of operations.

3.4 Water Management

Motel Next applies responsible water management practices, taking into account the capacity and load of local utility systems. The measurement of water consumption, the use of water-efficient fixtures, and regular maintenance all support sustainable operations. Water efficiency is further enhanced through the installation of aerators on taps, which mix water with air to maintain user comfort while significantly reducing the volume of water used per draw.

To further reduce potable water consumption, Motel Next operates rainwater harvesting systems whereby rainwater collected on-site is stored in dedicated tanks and primarily used for the irrigation of green areas. This practice contributes to lowering potable water use and reducing the burden on municipal water infrastructure.

4. Social Pillar (Social)
4.1 Employee Housing as a Strategic Social Factor

Within Motel Next’s ESG approach, the social pillar places employee housing at its core, recognising it as a key prerequisite for employee well-being, workforce retention, and the stability of corporate operations. Adequate housing is not merely a matter of comfort, but has a direct impact on employees’ physical and mental health, occupational safety, job performance, and loyalty.

The accommodation solutions provided by Motel Next are designed to offer predictable, safe, and long-term sustainable living environments for employees who often relocate temporarily from other regions or from abroad to work in Hungary. This is particularly relevant in the manufacturing, construction, and logistics sectors, where workforce mobility is high and housing insecurity represents a significant business risk.

4.2 Residents’ Well-being, Safety, and Quality of Life

Motel Next places strong emphasis on residents’ quality of life and safety throughout its operations. The design and management of its accommodation facilities are supported by technical standards, operational procedures, and house rules that promote a well-organised, clean, and conflict-free living environment.

Safe housing includes the continuous monitoring of buildings’ technical conditions, compliance with fire safety and occupational health and safety requirements, and the provision of clear and easily understandable rules for residents. Motel Next’s objective is for its accommodation facilities to function not as temporary stop-gap solutions, but as stable living environments for employees.

4.3 Grievance Handling, Communication, and Representation

Motel Next operates a structured grievance handling and feedback mechanism that enables residents and corporate partners to safely and efficiently report concerns, issues, and suggestions. All incoming feedback is handled in a documented manner and is used to support the continuous improvement of service quality.

Grievance handling and communication at Motel Next are also supported through digital channels. Residents can contact the operator at any time via a closed, dedicated software platform to report operational issues or provide feedback. Incoming requests are addressed with short response times, ensuring fast and traceable case handling. For foreign corporate partners and residents, English-language support is also available, facilitating effective and clear communication. Throughout all communication processes, Motel Next applies clear, culturally sensitive practices designed to minimise misunderstandings and enable the prompt and effective resolution of issues.

4.4 Enforcement of Labour and Human Rights Principles

A core principle of Motel Next’s operations is the full respect for human rights and fair treatment. The company applies a zero-tolerance approach to forced labour, child labour, and any form of discrimination. This principle applies not only to Motel Next’s own employees, but also extends to subcontractors and service partners.

Motel Next expects all involved parties to comply with applicable labour laws and fundamental human rights standards. This ensures that the company’s operations remain aligned with the ethical and ESG expectations of large corporate supply chains.

4.5 Engagement with Local Communities

Motel Next consciously manages its presence within the areas where it operates. During both development and operational phases, the company strives to minimise disruptive impacts on the environment and local residents, with particular attention to noise, traffic, and construction-related activities.

Motel Next’s long-term objective is for the properties it operates to represent added value rather than a burden for local communities, contributing to the economic stability and sustainable development of the surrounding region.

5. Governance Pillar (Governance)
5.1 ESG Governance Structure and Responsibilities

Motel Next’s ESG governance system is based on the principle of management accountability. ESG considerations are not treated as a separate function, but are embedded into strategic planning, investment decisions, and operational processes.

Company management regularly evaluates ESG-related risks and opportunities and ensures that sustainability considerations are reflected in day-to-day operations. This approach ensures that ESG is not merely a formal compliance requirement, but a practical management tool supporting effective decision-making.

5.2 Risk Management and Compliance

Motel Next applies a comprehensive risk management approach covering operational, legal, reputational, and ESG-related risks. The identification and management of these risks are particularly important in the field of B2B employee accommodation, where the company is directly linked to the operations and reputation of large corporate clients.

Regulatory compliance is a key priority, especially in areas related to property operations, data protection, labour law, and environmental regulation. Motel Next aims to ensure that its activities are fully compliant with applicable Hungarian and European Union legislation at all times.

5.3 Business Ethics and Integrity

Motel Next’s business ethics are founded on transparency, fairness, and strict adherence to laws and regulations. The company applies a zero-tolerance policy towards corruption, bribery, and any conduct that may compromise business integrity or partner trust.

Secure channels are provided for the reporting of misconduct and irregularities, and Motel Next guarantees that all reports are investigated objectively and without retaliation.

5.4 Responsible Partner and Supplier Relationships

In its relationships with partners and suppliers, Motel Next expects compliance with applicable laws, ethical business conduct, and respect for ESG principles. The company’s objective is to build a partner network that supports long-term, sustainable operations and meets the expectations of large corporate supply chains.

5.5 Data Protection and Information Security

Motel Next places strong emphasis on the protection of personal data and information security. In handling the data of residents and business partners, the company complies with applicable data protection regulations and implements appropriate technical and organisational measures to ensure data security and confidentiality.

6. ESG Measurement, Reporting, and Continuous Improvement
6.1 ESG Measurement Framework and Data Collection

Motel Next aims to ensure that its ESG performance is based not only on principles and commitments, but on measurable, traceable, and comparable data. To this end, the company is progressively developing its ESG measurement framework, taking into account the nature of its activities, the scale of its operations, and the expectations of large corporate partners and financial institutions.

The collection of ESG data primarily focuses on those areas that have a material impact on Motel Next’s business model. These include, in particular, energy and water consumption, emissions related to property operations, residents’ safety and satisfaction, as well as legal and ethical compliance. The company’s objective is not to create excessive administrative burden, but to establish a proportionate and business-relevant ESG measurement system.

6.2 ESG Metrics and Performance Indicators

Within Motel Next’s ESG approach, key performance indicators (KPIs) are defined as a limited set of business-relevant metrics that directly support decision-making and risk management. The company’s objective is not extensive data collection, but the application of indicators that genuinely reflect environmental, social, and governance performance.

KPIs related to the environmental pillar primarily cover buildings’ energy consumption, the share of on-site generated solar energy used for own consumption, and trends in water consumption per resident. These indicators enable the monitoring of energy and water use over time and support the continuous improvement of operational efficiency.

For the social pillar, Motel Next measures the effectiveness of grievance handling processes, with particular focus on response times to incoming requests and the traceability of case handling. These metrics provide direct feedback on resident satisfaction and service quality.

KPIs linked to the governance pillar relate to legal and ethical compliance, including the monitoring of documented incidents and the effectiveness of internal controls. Motel Next aims for ESG metrics to function not as stand-alone reporting obligations, but as indicators of operational excellence and business continuity.

6.3 Reporting and Transparency

Motel Next’s ESG reporting practices are based on the principles of transparency and gradual implementation. The company’s objective is to present its ESG performance to partners and stakeholders in a clear, concise, and credible manner, avoiding overly technical or purely formal approaches.

Reporting is primarily aligned with the needs of large corporate partners, financial institutions, and business decision-makers, and, where required, is capable of supporting partners’ own ESG or CSRD reporting obligations. Over the long term, Motel Next aims to ensure that its ESG data is available in a structured and retrievable format.

6.4 Continuous Improvement and Feedback

Motel Next’s ESG strategy operates as a dynamic system based on regular review and continuous improvement. Measurement results, partner feedback, and regulatory changes are continuously integrated into operations, enabling the gradual enhancement of ESG performance.

The company’s objective is for ESG to function not as a one-off project, but as an integral part of organisational culture and daily decision-making. To this end, Motel Next consciously embeds sustainability considerations into development, investment, and operational decisions.

7. Closing Remarks

Motel Next’s ESG strategy provides a comprehensive and professionally grounded framework that clearly reflects the company’s long-term mindset and sense of responsibility. The objective of the strategy is not merely compliance, but the establishment of an operating model that delivers stability, predictability, and value for corporate partners, residents, and local communities.

We are convinced that in the field of B2B employee accommodation, sustainable and responsible operations represent a competitive advantage. Motel Next’s goal is to be a partner that clients can rely on at a strategic level, supported by its expert approach, transparent operations, and long-term commitment.

This ESG strategy is not a closed document, but an evolving compass that supports Motel Next in maintaining its position as a professionally prepared, credible, and long-term reliable player in the corporate accommodation market.