Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 17 GWh reduction in electricity consumption at Studio City and Altira Macau
• 3% reduction in total greenhouse gas emissions
• City of Dreams became the first hospitality facility in Macau to obtain the ISO 14001 Environmental Management Certification, along with an Indoor Environmental Quality Certificate.

Social Achievements

• 362,249 beneficiaries from community programmes
• 136,832 volunteer hours by employees
• Opened lactation rooms at four Macau properties and Hong Kong corporate office
• 137,414 hours of training for employees

Governance Achievements

• Established risk management taskforce and policy
• Implemented Ethical Business Practices Programme for anti-corruption
• Established whistle-blowing channels

Climate Goals & Targets

Environmental Challenges

• Typhoon Hato's impact on the community and operations

Mitigation Strategies

• Created MOP $30M Cash Relief Fund and Volunteer Task Force to support employees and community
• Reassigned construction workers to assist in city restoration efforts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procurement Policy emphasizing sustainable procurement decisions; environmental requirements stipulated in tendering documents; priority given to environment-friendly and energy-efficient products.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, Hong Kong Stock Exchange's ESG Reporting Guide

Certifications: ISO 14001 (City of Dreams)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• BDO ESG Awards – ESG Report of the Year Award (Middle Market Capitalization category)
• Hong Kong Awards for Environmental Excellence – Wastewise Label – Class of Excellence
• Hong Kong Council of Social Service – 10 Years Plus Caring Company
• Business Award of Macau – Corporate Social Responsibility Grand Award – Melco Resorts & Entertainment Limited
• Asian Excellence Award by Corporate Governance Asia magazine – Best Environmental Responsibility – Melco Resorts & Entertainment Limited

Environmental Metrics

ESG Focus Areas

• Ethics & Integrity
• Community Engagement & Investment
• Diversity & Inclusion
• Energy & Climate Change
• Material Use & Waste
• Responsible Gaming
• Safety
• Sustainable Economic Growth
• Talent Attraction & Retention
• Water Use

Environmental Achievements

• Reduced energy consumption in existing operations by an average of 10% across resorts between 2016 and 2018
• Sourced 100% of electricity from renewables in 2018 via EACs, reducing market-based emissions by 95% since 2016
• Installed solar photovoltaic panels at City of Dreams and Studio City generating nearly 7.7 million kWh/year
• Received Green Key Environmental Management Awards at four integrated resort properties
• Studio City received the CEM Energy Saving Excellence Award

Social Achievements

• Melco Resorts named Socially Responsible Operator of the Year at 12th International Gaming Awards
• Melco Resorts received Gaming Operator of the Year, Australia & Asia award
• Melco Resort’s service excellence recognized by Hotelier Awards Greater China
• 38% of senior leadership and close to 40% of general management are female
• OSHA Lost-Time Injury Frequency Rate (LTIFR) of 3.2 (down from 3.7 in 2017 and 4.0 in 2016)
• Over HK$85 million in charitable and in-kind donations in 2018
• 22,942 employee participants in CSR activities in 2018

Governance Achievements

• Strengthened enterprise risk management and developed formal ESG risk management and internal control framework
• Launched new Sustainability & CSR Vision, Strategy, and Manifesto called ‘Above and Beyond’
• 98% of required employees completed ‘Do the Right Thing’ ethics and anti-corruption training
• Mr. Ho, Lawrence Yau Lung recognized as Asian Corporate Director of the Year (7th consecutive year)
• Received Asian Excellence Award for Asia’s Best CEO and CFO (Investor Relations)
• Honored with Asian Excellence Award for Best IR Company (6th consecutive year)
• Received BDO ESG Awards – Certificate of Merit

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact of resorts
• Achieving zero waste across resorts
• Maintaining a best-in-class workplace
• Managing risks associated with gambling

Mitigation Strategies

• Implementing reduction targets across emission sources to achieve carbon neutrality
• Implementing circular economy approaches to reduce plastic waste
• Investing in employee training and development
• Developing responsible gaming policies and programs

Supply Chain Management

Supplier Audits: Regular review of supplier environmental and social performance

Responsible Procurement

• Sustainable sourcing guidelines for cotton, cleaning products, and seafood
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Listing Rules of The Stock Exchange of Hong Kong Limited), GRI Sustainability Reporting Standards

Certifications: ISO 27001 (Macau operations), Green Key (four properties), HACCP (City of Dreams and Altira Macau)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Green Key Awards
• CEM Energy Saving Excellence Award
• Socially Responsible Operator of the Year
• Gaming Operator of the Year, Australia & Asia
• Hotelier Awards Greater China
• BDO ESG Awards – Certificate of Merit

Environmental Metrics

ESG Focus Areas

• Sustainability
• Corporate Social Responsibility
• Environmental Protection
• Community Engagement
• Responsible Gaming
• Good Governance

Environmental Achievements

• Reduced SUP usage by 16%
• Removed all SUP bottles in the ‘Heart-of-House’, as well as SUP straws, disposable Food & Beverage containers and utensils across its operations
• Installed water refill stations in guest areas
• Increased sustainable seafood purchases in Macau by 15%
• Making progress towards carbon neutrality, energy saving and waste and water reduction at its properties around the world.

Social Achievements

• More than HK$133 million in charitable and in-kind donations or contributions in 2019
• 27,282 employee participants participated in CSR activities in 2019
• 80% of colleagues reported that they were proud of where they work
• Women comprise around 38% of senior leadership and around 40% of general management team
• Melco Resorts was named the “Best Companies to Work for in Asia 2019” in the hospitality sector for Hong Kong and Macau by HR Asia Magazine

Governance Achievements

• Group Chairman and Chief Executive Officer, Mr. Lawrence Ho was granted the “Leadership Gold Award” in the Business Awards of Macau in 2015
• Melco International has been honoured with the “Corporate Governance Asia Annual Recognition Awards” for 14 consecutive years since 2006
• Melco International was a founding signatory of the Hong Kong Corporate Governance Charter

Climate Goals & Targets

Environmental Challenges

• Overall operating environment in 2019 was impacted by macro headwinds including the Sino-US trade war, economic slowdown in China and social events in Hong Kong
• COVID-19 outbreak, along with travel bans, visa restrictions and suspended flights, are poised to hit global tourism and impact the number of visitors to all its integrated resorts
• Sino-US trade war continues to weigh on the global economy
• Competition between integrated resort operators to intensify and the Macau VIP market will continue to face challenges
• Prolonged social disruption in Hong Kong may also negatively impact the number of tourists travelling to the region

Mitigation Strategies

• Cost cutting measures and CapEx deferrals allow to maintain its regular dividend programme and position well to counter the hurdles posed by COVID-19
• Re-investment and improvement programme is key to retaining existing and attracting new guests
• Focus on key investments currently earmarked for Macau, Manila, Cyprus and Japan, and decided not to pursue its planned investment in Australia for the second tranche of shares in Crown

Supply Chain Management

Responsible Procurement

• Sustainable sourcing efforts by tackling high-impact items such as cotton, chemicals and seafood
• All cotton bed and bath linens made from 100% cotton that was procured for its Macau and Manila properties are Better Cotton Initiative (“BCI”) and STANDARD 100 by OEKO- TEX® certified
• Implemented sourcing guidelines for chemicals with a rating system and preference for internationally-recognized, high-quality, environmentally-responsible products meeting Green Key or Green Seal standards or having other biodegradable attributes
• 80% of procurement in Macau is through local businesses or distributors, with 30% of those involving local SMEs, and in Manila over 90% of procurement is from local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 41001:2018

Awards & Recognition

• Socially Responsible Operator of the Year (Asia/Australia)
• Integrated Resort of the Year
• Certificate of Merit for “Best in ESG Awards – Large Market Capitalization” at the BDO ESG Awards 2019
• CDP 2019 Best First Time Performer award and a score of “A-”
• Green Key eco-label
• Gold Award in Environmental Performance at the Business Awards of Macau 2019
• Sustainable Business Award Philippines

Environmental Metrics

ESG Focus Areas

• Energy & Climate Resilience
• Material Use & Waste
• Engaging our People
• Safety, Health & Wellbeing
• Responsible Gaming
• Community Engagement & Investment
• Ethical & Sustainable Supply Chain
• Ethics & Integrity
• Privacy & Cybersecurity

Environmental Achievements

• 22% reduction in electricity consumption and 21% decrease in electricity intensity at the Group level compared to 2019.
• 24% reduction in GHG emissions in both absolute and intensity terms.
• Macau’s first, large-scale onsite solar PV project generating approximately 7.7 MWh at full capacity.
• City of Dreams Manila became the first integrated resort in the Philippines to harness solar power, generating 1,617 MWh of electricity.
• EVs accounted for 29% of the total bus fleet in Macau.
• 13% reduction in average grams per cover of food waste in Macau compared to the previous year.
• 36 tonnes of compost generated in Macau alone.

Social Achievements

• Maintained the number of colleagues receiving training at 96% or greater.
• Over 80% of managers in Macau came from the local community.
• Women comprised 35% of senior leadership and 41% of the general management team.
• Zero allegations of discrimination submitted.
• Average work-related injury frequency rate reduced by 52.1% and lost-time injury frequency rate by 52.06% in Macau, Philippines, Cyprus and Hong Kong.

Governance Achievements

• Strengthened ESG oversight under the Corporate Governance Committee and directly under the Chairman and CEO.
• Achieved international third-party accreditation for Responsible Gaming programs through RG Check.
• Zero material incidents of corruption, anti-competitive behavior, or anti-trust or monopolistic practices.

Climate Goals & Targets

Environmental Challenges

• Meeting ambitious 2030 targets for carbon neutrality and zero waste.
• COVID-19 impacted waste treatment processes and access to recycling facilities.
• Balancing health and safety concerns with environmental impact during the pandemic.
• Managing supply chain performance and resilience during global border shutdowns.
• Sourcing masks and hand sanitizers during the pandemic.

Mitigation Strategies

• Established three Working Groups (Carbon Neutral, Zero Waste, Sustainable Sourcing).
• Installing refillable glass bottles and shower amenity dispensers.
• Expanding sustainable sourcing categories.
• Exploring PPAs and green tariffs for renewable energy.
• Improving waste diversion through awareness raising and new technologies.
• Fast-tracking payments to SME suppliers to ease liquidity pressures.
• Capacity-building initiatives for suppliers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for Suppliers
• Sustainable sourcing guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Storm surges
• Flooding
• Sea-level rise
• Extreme temperatures

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards: Core option

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001 (Macau operations)

Third-party Assurance: Third-party assurance provider verified GHG emission inventory for 2019 and 2020 against ISO 14064-1:2006

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NORDAQ 2000 water filtration system
• Sustainable building materials
• Biodegradable products

Awards & Recognition

• Asia’s Best CSR – Asian Excellence Awards 2020
• Green Key Award
• BREEAM Awards
• CEM Macau Energy Saving Activity awards
• High scores in Dow Jones Sustainability Index
• Best First Time Performer by CDP (2019)
• A- score for climate-related supplier engagement strategy by CDP (2020)
• Best Companies to Work for in Asia – HR Asia magazine (2019-2020)
• Community Award – Asia – Industry Community Awards 2020
• 97 Stars by 2021 Forbes Travel Guide

Environmental Metrics

ESG Focus Areas

• Energy & Climate Resilience
• Material Use & Waste
• Engaging our People
• Safety, Health & Wellbeing
• Responsible Gaming
• Community Engagement & Investment
• Ethical & Sustainable Supply Chain
• Ethics & Integrity
• Privacy & Cybersecurity

Environmental Achievements

• Increased sustainable seafood options with 57 varieties available in Macau, comprising 16% of total seafood procured by weight, compared to 26 varieties and 8% in 2020
• Diverted over 192 tonnes of food waste from disposal through composting and vermiculture, an increase of 430% over the previous year
• Capture of plastic for recycling increased from over 4 tonnes in 2020 to 102 tonnes, an increase of 2,429% over the previous year
• Annualised savings of over 46.8 million kWh through energy-efficiency measures
• Annualised savings of over 432,000 m3 of water in 2021

Social Achievements

• More than 95% of colleagues vaccinated through the “Get the Jab” programme
• 92,000 FAP experiences offered, of which 99% were taken by locals, with 96% involving exposure to non-gaming areas for our gaming colleagues
• Total of 680,000 participants completed training programmes through the Group’s Learning Academy
• 71% of vacancies were filled by internal colleagues
• Launched the “Melco Mentoring and Networking Group”

Governance Achievements

• Achieved RG Check accreditation by international third-party Responsible Gambling Council, across our global portfolio
• No material incidents of corruption, anti-competitive behaviour or monopolistic practices reported within the Group
• No significant data breaches or substantiated complaints concerning breaches of customer privacy or losses of customer data during the reporting period

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and increasing use of disposables
• Balancing health and hygiene concerns with environmental goals
• Need to adopt new technologies and build colleague/partner understanding of carbon-neutral goals
• Rising transport costs and supply chain disruptions
• Increased cybersecurity risks and data breaches globally

Mitigation Strategies

• Redoubled reduction, reuse and recycling efforts
• Engaged with suppliers to reduce waste in product sourcing and packaging
• Developed online training courses to enhance workforce support
• Optimised efficiencies within operations using online P2P procurement system
• Implemented robust protocols, systems and initiatives to protect against cybersecurity threats

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prioritising local procurement
• Building supplier capacity on responsible practices

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons)

Transition Risks

• Carbon pricing
• Energy-efficiency improvement requirements

Opportunities

• Renewable energy and onsite energy generation
• Green bonds

Reporting Standards

Frameworks Used: HKEX ESG Reporting Guide, GRI Standards: Core option

Certifications: ISO 14001:2015, ISO 50001:2018, ISO 41001:2018, ISO 45001, RG Check, BREEAM (Studio City Phase 2, City of Dreams Mediterranean)

Third-party Assurance: Third-party assurance provider verified GHG emission inventory for 2019, 2020, and 2021 against ISO 14064-1:2006

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Sustainable Resort of the Year 2021 – International Gaming Awards (IGA)
• WeCare™ HR Asia Most Caring Companies Award 2021
• Best Companies to Work for in Asia – HR Asia magazine (2019-2021)
• Many others listed in the report

Environmental Metrics

ESG Focus Areas

• Energy & Climate Resilience
• Material Use & Waste
• Engaging our People
• Safety, Health & Wellbeing
• Responsible Gaming
• Community Engagement & Investment
• Ethical & Sustainable Supply Chain
• Ethics & Integrity
• Privacy & Cybersecurity

Environmental Achievements

• Reduced energy intensity by 24% compared to 2019 baseline.
• Reduced GHG emissions by 46% (Scope 1 and 2) compared to 2019 baseline.
• Reduced waste generation by 24% compared to 2021.
• Increased materials diverted from disposal through composting and recycling by 4% compared to 2021 (13% total).

Social Achievements

• 49% of vacancies filled by internal colleagues.
• Close to 110,000 gaming colleagues participated in career development programs.
• Over 1,210 training courses offered to colleagues.
• Average training hours per employee: 183 (non-management), 17.3 (management).

Governance Achievements

• Zero reported incidents of discrimination.
• Zero material incidents of corruption, anti-competitive behavior, or monopolistic practices.
• Zero cases of ethical violations along the value chain.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic, particularly in Macau.
• Unreliable supply chains.
• Rising global costs and inflation.

Mitigation Strategies

• Continued research and implementation of best practices.
• Harnessing technology to improve data collection and supply chain visibility.
• Exploring alternative sourcing strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable sourcing guidelines for key product categories (chemicals, seafood, cotton).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic temperature increases
• Water stress

Transition Risks

• Regulatory pressures and carbon pricing
• Resource procurement

Opportunities

• Capital flow opportunities
• Renewable energy and onsite generation opportunities

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001, HACCP, BREEAM

Third-party Assurance: Third-party assurance provider verified Scope 1, 2, and 3 GHG emission inventory of Melco Resorts.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NORDAQ water filtration and bottling system
• Carbon-neutral beef
• Plant-based meat alternatives
• Sustainably sourced seafood

Awards & Recognition

• Global Gaming Awards Asia – Corporate Social Responsibility of the Year
• International Gaming Awards – Sustainability Award
• ATD Excellence in Practice Awards 2022
• Cyprus HR Awards 2021
• Asian Excellence Awards
• CEM Excellence Award
• ASEAN Green Hotel Award
• Macao International Environmental Co-operation Forum and Exhibition – Green Booth Award
• Macao International Trade and Investment Fair – Green Booth Award
• Forbes Travel Guide – Work Here Work Happy Award

Environmental Metrics

ESG Focus Areas

• Energy & Climate Resilience
• Material Use & Waste
• Engaging our People
• Safety, Health & Wellbeing
• Responsible Gaming
• Community Investment & Engagement
• Ethical & Sustainable Supply Chain
• Ethics & Integrity
• Privacy & Cybersecurity

Environmental Achievements

• Achieved BREEAM “Excellent” rating for the design stage for both Studio City Phase 2 and City of Dreams Mediterranean.
• Eliminated single-use plastic water bottles in almost all guest areas by serving filtered water in refillable glass bottles.
• Diverted 11% of total waste stream from disposal through composting and recycling (76% increase over 2022).
• Reduced energy consumption intensity by 4% over 2022 despite increased visitation and occupancy.
• Reduced water consumption by 13% in absolute terms and 30% in intensity terms over 2019.

Social Achievements

• Launched REACH! Programme, encouraging colleagues to engage in exercise and community sports (7,435 participants).
• Maintained RG Check accreditation across all operations, with three more locations attaining a perfect score of 100% on the RG Implementation Index criteria in Macau.
• Provided detailed supplier and colleague training on sustainability practices, including modern slavery.
• Over 3,800 colleagues volunteered their time and efforts across over 530 volunteering initiatives.

Governance Achievements

• Delivered in-depth cybersecurity training for Melco Resorts’ Board and executive leadership.
• Updated Supplier Code to address expectations of Environmental Sustainability Policy and included requirements for safeguarding human rights.
• No material incidents of corruption, anti-competitive behaviour or monopolistic practices reported.

Climate Goals & Targets

Environmental Challenges

• Maintaining cost effectiveness and efficiency while progressing environmental initiatives.
• Going deeper in assessment of climate-related and other environmental impacts and understanding related financial impacts.
• Navigating challenges of inflation and geopolitical pressures impacting supply chains.
• Building resilience in sourcing to mitigate risks from natural events and other factors impacting supply chain continuity.

Mitigation Strategies

• Staunch support from leadership and colleagues, growing appreciation from guests.
• Substantial resource commitment to work closely with suppliers, expanding responsible options and introducing new menu categories.
• Strengthening supplier relationships, creating economies of scale in procurement, and using technology to improve data collection and supply chain visibility.
• Being nimble and diversifying sourcing base to mitigate risks.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct outlining expectations for ethical and responsible behavior.
• Sourcing guidelines for cotton, chemicals, and seafood.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic temperature increases
• Water stress

Transition Risks

• Regulatory pressures and carbon pricing
• Resource procurement

Opportunities

• Capital flow opportunities
• Renewable energy and onsite generation opportunities

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD

Certifications: RG Check, Sharecare Health Security VERIFIED® with Forbes Travel Guide, BREEAM, HACCP, ISO 45001, ISO 27001

Third-party Assurance: Third-party assurance provider verified Scope 1, 2 and 3 GHG emission inventory.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Global Gaming Awards Asia – Corporate Social Responsibility Award of the Year
• Asia Gaming Awards – Outstanding Contribution in Corporate Social Responsibility and Best Responsible Gaming Program
• Inside Asian Gaming IAG Academy IR Awards – Best Overall CSR Program
• Association for Talent Development – Career Development category
• Associação de Juventude Voluntária de Macau – Spread Love Through the City Service Award
• Pou Tai Elderly Integrated Service Center and Pou Tai Youth and Family Integrated Service Center – Pou Tai Volunteer Recognition Bronze Award
• Forbes Travel Guide – greatest number of stars amongst integrated resorts in Asia
• MICHELIN Stars
• Green Hotel Gold Awards
• Green Key Award
• Best International Sustainable Commercial Development 2023
• Best Sustainable Commercial Development Europe 2023
• Asian Excellence Awards – Best Environmental Responsibility