Climate Change Data

Environmental Metrics

ESG Focus Areas

• Restoring our World
• Inspiring our Communities
• Sustaining our Supply Chain
• Empowering our Business

Environmental Achievements

• 67% reduction in overproduced food waste over a six-month trial at City of Dreams employee dining rooms.
• Reduction of annualized electricity consumption of 34,297 MWh in Macau and Manila, equivalent to avoiding over 24,000 metric tonnes of GHG emissions.

Social Achievements

• Mobilized over 7,800 Melco volunteer participants in more than 600 volunteer activities under the ‘Simple Acts of Kindness’ initiative.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Procuring locally and creating demand for materials that have sustainability attributes in the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

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

• 25% energy intensity reduction achieved over 2019
• Annualized savings of over 46.8 million kWh through energy-efficiency measures since 2018
• Eliminating 2.8 million plastic bottles annually with water refilling dispensers across our properties
• Replaced all SUP F&B containers and utensils with biodegradable, sustainable alternatives
• Increased plastic recycling by 2,429%
• Waste diversion increase of 433% in composting and 126% in recycling over 2020
• Cut plate waste in Employee Dining Rooms by up to 35% over a five-month, Winnow Sense trial
• Annualized savings of over 432,000 m3 through water-efficiency measures
• BREEAM “Excellent” rating for the design stage of City of Dreams Mediterranean and Studio City Phase 2

Social Achievements

• Women comprise 27% of our Boards and 38% of senior management, and 73% of our people are hired from within the local community
• Overall, 111 average training hours per colleague, a 260% increase over 2019 and 18% over 2020
• Over 95% of colleagues vaccinated through our ‘Get the Jab’ program
• First and only integrated resort operator globally to be recognized by RG Check in all jurisdictions
• Heart-of-House Roadshows generated over US$950,000 worth of business for more than 140 local SMEs

Governance Achievements

• All colleagues received training on Melco’s anti-corruption policies and procedures
• No incidents of corruption, or legal actions taken for anti-competitive behavior or monopolistic practices

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted financial performance and liquidity.
• Uncertainty regarding license renewal in Macau.
• Intensified cyber risk globally.
• Limited access to renewable energy sources in certain jurisdictions.
• Tightening data privacy laws globally.

Mitigation Strategies

• Employing cost-containment and financing measures to manage financial sustainability
• Evolving and diversifying business model
• Operating responsibly and adhering to government policies and regulations
• Protecting IT infrastructure and systems
• Engaging independent third-party experts to assess processes and preparedness
• Incorporating environmental features into building design and facilities
• Appointing Data Protection Officers in each jurisdiction
• Protecting data subject rights

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Sustainability attributes indicated on procurement system with icons
• Sourcing guidelines for cotton, chemicals, and seafood

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons)
• Damage to property and loss of revenue

Transition Risks

• Carbon pricing
• Energy-efficiency improvement requirements
• Rising fossil-fuel based energy prices

Opportunities

• Sourcing renewable energy
• Expanding onsite solar generation
• Reducing cost of capital through green bonds

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 27001, RG Check, BREEAM Excellent (City of Dreams Mediterranean and Studio City Phase 2 design)

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

Sustainable Products & Innovation

• NORDAQ water purification and bottling solution
• Biodegradable F&B containers and utensils
• Sustainable building designs

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)
• Excellence in Practice Award: Customer Service Training – Association of Talent Development
• Silver for Best Graduate Recruitment Programme – HR Asia Recruitment Awards 2021
• 15 Years Plus Caring Company Logo
• 97 Forbes Travel Guide Awards
• Studio City Phase 2 Regional Award, Asia at BREEAM Awards 2021
• Gold Awards 2021 of the ‘Climate Change Initiative’ category – PATA
• Green Key International Environment Award 2021
• ASEAN Tourism Standards Awards 2021 – ASEAN Green Hotel
• Hong Kong Sustainability Award 2021 – Certificate of Excellence
• Outstanding Corporate for Volunteerism (2019-2021)

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% energy intensity reduction achieved over 2019
• Solar photovoltaic (PV) at all properties in Macau, Manila and Cyprus
• Annualized savings of over 51.3 million kWh through energy-efficiency measures
• BREEAM “Excellent” rating for the design stage of City of Dreams Mediterranean and Studio City
• Eliminating 1.4 million plastic bottles at City of Dreams Manila and Macau properties
• 24% reduction in waste generated in 2022 compared to 2021
• 9% increase in waste diversion through composting and recycling
• 36% overall increase in composting compared to 2021
• Annualized savings of over 463,625 m3 through water-efficiency measures

Social Achievements

• Women comprise 27% of our boards and 34% of senior management
• 68% of positions at the “Vice President” level and above have been filled from within our local community
• 170 average training hours per colleague in 2022
• 99% of colleagues completed the Hotel and Catering Safety Card Training Program
• Close to 500 colleagues participated in mental wellness seminars
• 2,276 community activities organized, a 104% increase from 2021 with over 22,300 Melco volunteer participants
• Awarded “Outstanding Corporate for Volunteerism”

Governance Achievements

• 97% completion rate of Corporate Governance induction training
• No material incidents of corruption, anti-competitive behavior or monopolistic practices reported
• Procured cyber insurance to protect Melco against financial losses caused by potential cybersecurity incidents
• No complaints or instances of data or customer privacy breaches were reported in 2022

Climate Goals & Targets

Environmental Challenges

• Impact of the COVID-19 pandemic, particularly in Macau
• Limited access to renewable energy sources in certain jurisdictions
• Ongoing pandemic disruptions to international supply chains
• Rising costs globally amid high inflationary conditions

Mitigation Strategies

• Employing cost-containment and financing measures
• Evolving and diversifying our business model
• Prioritizing local procurement
• Harnessing the power of technology to improve data collection and visibility over our supply chain

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Local sourcing
• Sustainable sourcing guidelines for chemicals, seafood, and 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

Certifications: RG Check, BREEAM, ISO 45001, ISO 27001, HACCP

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 14 (Life Below Water)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 17 (Partnerships for the Goals)

Melco's initiatives contribute to these goals through various programs and strategies outlined in the report.

Sustainable Products & Innovation

• NORDAQ water filtration system
• Biodegradable packaging
• 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
• Cyprus HR Awards
• 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
• Outstanding Corporate for Volunteerism

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

• 5% energy intensity reduction achieved over 2022 and a 26% reduction compared to 2019
• Intensity reduction of 6% for Scope 1 and 2 greenhouse gas (GHG) emissions over 2022
• 1.3% absolute and 22% intensity reductions in Scope 3 emissions
• Avoided 5.2 million single-use plastic (SUP) bottles with the NORDAQ water filtration system
• Recycling or repurposing over 500 tonnes of playing cards
• Diversion of 11% of valuable materials from our waste stream through composting and recycling, a 76% increase over 2022
• Achieved annualized savings of over 466,304 m3 through water-efficiency measures

Social Achievements

• Women comprise 27% of our boards and 35% of senior management
• 66% of positions at the “Vice President” level and above have been filled from within our local community, increasing to 85% in Macau
• 93% of colleagues attended training, averaging 65 hours each in 2023
• Over 7,000 Foundation Acceleration Program (FAP) experiences provided
• 36-person REACH! Elite Team represented Melco in 55 local and national sports events; 200 REACH! training sessions involving over 1,190 participants
• 89% of our colleagues completed the Hotel and Catering Safety Card Training Program in 2023
• 300 internal OSH sessions were held with over 17,000 participants
• Since 2021, first and only integrated resort operator globally to be recognized by RG Check across all our properties
• Perfect score of 100% attained with Macau’s Gaming Inspection and Coordination Bureau’s (DICJ) Responsible Gambling Indicators in 2023 at three more of our locations
• Over 3,800 participants volunteered their time and efforts across over 530 volunteering initiatives
• Close to US$17 million donated to worthy causes in our communities
• Generated over US$1.1 million for small and medium enterprise (SME) businesses in Macau

Governance Achievements

• 100% completion rate of our Corporate Governance induction training on Melco’s Code of Conduct in 2023
• No material incidents of corruption, anti-competitive behavior or monopolistic practices reported
• Implemented new, mandatory, in-depth cybersecurity training for relevant colleagues, with specialized sessions for the Board and senior management

Climate Goals & Targets

Environmental Challenges

• Maintaining focus on being cost effective and efficient while progressing environmental initiatives
• Going deeper in the assessment of climate-related and other environmental impacts, and enhancing understanding of the related financial impacts
• Expanding procurement of more responsible options and introducing new categories on restaurant menus
• Navigating the challenges of inflation and geopolitical pressures
• Building resilience in sourcing to mitigate risks from natural events and other factors impacting supply chain continuity
• Maintaining effective management practices and mitigation strategies, aligned with high ESG standards, and providing training on advanced social engineering attacks

Mitigation Strategies

• Employing cost-containment and financing measures to manage financial sustainability
• Evolving and diversifying the business model
• Committing substantial resources to work closely with suppliers
• Strengthening supplier relationships, creating economies of scale in procurement and harnessing technology to improve data collection and supply chain visibility
• Being nimble and diversifying the sourcing base
• Deepening investment in advanced tools for attack prevention and detection, and arranging regular resilience drills

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sourcing goods and services with sustainability attributes
• Local procurement

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, IFRS S1, IFRS S2, SASB, TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, RG Check, BREEAM

Third-party Assurance: Third-party assurance provider verified the Company’s Scope 1, 2 and 3 GHG emission inventory for the year 2023 against ISO 14064-3:2019

Sustainable Products & Innovation

• NORDAQ water filtration system
• Biodegradable packaging
• Recycled glass media filter for swimming pools

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
• Forbes Travel Guide awards
• 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