Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Responsible Gaming

Environmental Achievements

• Completed first Scope 1 & 2 greenhouse gas emissions inventory
• Reduced mail by 30% since 2019
• Expanded “3Cs” Technology to 21 properties to reduce plastic use
• Recycled 61% of total oil consumption companywide (662,000 pounds)
• Diverted over 885 tons of waste from landfills

Social Achievements

• Named top publicly traded gaming company in Forbes’ “America’s Best Employers for Diversity”
• Top commercial casino operator for Diversity, Equity, Inclusion and Belonging (All-In Index)
• Named “Champion of Board Diversity” by the Forum of Executive Women
• Ranked first in Bristol Associates-Spectrum Gaming’s “iGaming and mobile sports betting” category
• PENN Interactive became the first U.S. operator to voluntarily undergo the Responsible Gambling Council’s RG Check accreditation
• ESG metrics now comprise a portion of PENN’s long-term incentive executive compensation program
• Awarded $1 million annually to fund scholarships for children of Team Members
• Increased diverse spend by 43% since 2020
• Donated approximately $275K to responsible-gaming focused organizations

Governance Achievements

• Established ESG Committee
• 44% of Corporate Board of Directors are female

Climate Goals & Targets

Environmental Challenges

• Climate change
• Reducing direct mail completely by 2025 (some customers unwilling to convert to electronic delivery)
• Reducing plastic use
• Human trafficking

Mitigation Strategies

• Calculated Scope 1 & 2 GHG footprint
• Energy efficiency projects (LED lighting, EV charging stations, smart thermostats)
• Implementing an efficient data collection process for annual GHG footprinting
• Exploring companywide GHG abatement and decarbonization levers
• Investigating disclosing to CDP and TCFD
• Implementing water-saving technologies
• Exploring additional diversion opportunities and reduction of single-use plastics
• Partnering with Institute for Shelter Care to combat human trafficking
• Launching companywide policy to prevent human trafficking

Supply Chain Management

Responsible Procurement

• Supplier Diversity Initiative
• Supplier Code of Conduct
• Diverse Vendor Incubator Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Third-party Assurance: ClimeCo (for GHG emissions)

Awards & Recognition

• Forbes America’s Best Large Employers
• Forbes America’s Best Employers for Diversity
• Forum of Executive Women Champion of Board Diversity
• All-In Index top ranked gaming company for DE&I

Environmental Metrics

ESG Focus Areas

• Diversity, Equity & Inclusion
• Sustainability
• Community Support
• Responsible Gaming
• Climate Change

Environmental Achievements

• Completed first Scope 3 GHG emissions inventory.
• Established inaugural companywide carbon abatement targets to reduce Scope 1 and 2 GHG emissions by 25% by 2030.
• Reduced annual direct mail pieces by 48%, an estimated reduction of 2,800 trees in 2023.
• Sourcing of approximately two million sustainable cups resulted in a plastic weight offset of over 11 tons.
• Recycled more than 865,048 pounds of used cooking oil.
• Eliminated approximately 39,829 plastic oil jug-in-box (JIB) units.
• Reduced fryer oil consumption by approximately 59,000 gallons.
• Diverted from landfills over 4,300 tons of waste.
• Racetracks diverted over 42,000 tons of agricultural waste.

Social Achievements

• Donated more than $8 million in support of local charities and Veterans-focused organizations.
• Generated more than $17 million in economic development grants.
• Team members provided over 9,500 volunteer hours.
• Exceeded goals for diverse vendor procurement, with a total spend of over $108 million.
• Launched the “PENN Women” initiative.
• Implemented a new Diverse Vendor Incubator Program.
• Awarded $1 Million in tuition scholarships annually to the children of team members.
• Launched a new pilot mentor program as part of the Mid-Career Leadership Academy.

Governance Achievements

• Aligned with TCFD and submitted inaugural CDP climate-change disclosure.
• ESG metrics, including those related to climate targets, were included as metrics in PENN’s overall long-term incentive executive compensation program in 2023.
• Implemented an “exclude one, exclude all” policy for responsible gaming.
• PENN Interactive received the RG Check iGaming Accreditation from the Responsible Gambling Council.

Climate Goals & Targets

Environmental Challenges

• Extreme weather conditions impacting operations.
• Supply chain disruptions.
• Meeting ESG performance expectations of stakeholders.
• Potential for reputational damage if ESG performance is perceived as lagging competitors.

Mitigation Strategies

• Investing in climate-resilient construction and remodeling.
• Considering extreme weather risks during facility acquisitions and divestitures.
• Investing in hurricane and severe weather preparedness.
• Collaborating with a third-party energy consultant to identify energy efficiency opportunities.
• Monitoring current and anticipated regulatory frameworks concerning climate change.
• Developing climate governance and oversight structures.
• Measuring annual greenhouse gas footprint and disclosing efforts in CSR report.
• Implementing robust insurance coverage.

Supply Chain Management

Responsible Procurement

• Supplier Diversity Initiative
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions (snowstorms, flooding)

Transition Risks

• Legislation and regulation regarding climate change
• Changes in stakeholder and customer preferences

Reporting Standards

Frameworks Used: SASB, TCFD

Awards & Recognition

• Newsweek: America’s Greatest Workplaces for Diversity
• Forbes: America’s Best Employers for Diversity 2023
• Forbes: America’s Best Large Employers 2023
• Time Magazine: World’s Best Companies for 2023
• Forum of Executive Women: 2023 Champion of Board Diversity
• Age Friendly Institute: Certified Age Friendly Employer™