Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Social responsibility
• Corporate governance
• Responsible gaming
• Community investment
• Support for Macau SMEs

Environmental Achievements

• Reduced water consumption from 755,673 m3 in 2017 to 745,863 m3 in 2018 in Casino Grand Lisboa and Grand Lisboa Hotel.
• Implemented energy-saving initiatives in Casino Grand Lisboa and Grand Lisboa Hotel, resulting in energy savings of 384,783 kW per year for Grand Lisboa Hotel.
• Grand Lisboa Hotel received the Continuous Energy Saving Award (Hotel Group) in Macau Energy Saving Activity 2018, and Sofitel Macau at Ponte 16 received the Silver Award in Macao Green Hotel Award 2017–2019 and the “Environmental Performance” Gold Award at the 2018 Business Awards of Macau.
• Recycling programs for various materials implemented across properties.
• Paperless approval processes and paperless meetings to reduce paper usage.

Social Achievements

• Launched a program in 2018 to aid local SME restaurants affected by Typhoon Hato by distributing free dining coupons.
• 90% of approximately 20,400 employees are local Macau residents.
• SJM and Macau SME Procurement Partnership Programme enrolled 1,250 local suppliers by 31 December 2018, with total procurement from local SMEs exceeding MOP900 million.
• Organised responsible gaming training for 1,244 new employees and various RG activities for employees and their families.
• SJM Volunteer Team participated in various volunteer activities, with over 650 staff members volunteering in 2018.

Governance Achievements

• Established an ESG working team to identify and assess material ESG issues.
• Complied with code provisions of the CG Code except for deviation of code provision E.1.2 due to the former Chairman's absence from the 2018 AGM for health reasons.
• Adopted a Board diversity policy in 2013, considering gender, age, race, cultural and educational background, professional experience, and industry experience.

Climate Goals & Targets

Environmental Challenges

• Setbacks in Grand Lisboa Palace construction due to Typhoon Hato and a fire in 2017.
• Overall economic performance of the surrounding region, government regulatory policies, and the level of visitation to Macau.
• Competitive situation among casino operators in Macau.

Mitigation Strategies

• Construction of Grand Lisboa Palace made good progress in 2018, aiming for completion in the first half of 2019.
• Maintaining strength in mass market and VIP gaming sectors while striving to improve operating efficiency.
• Strong balance sheet and strategically located network of casinos.

Supply Chain Management

Responsible Procurement

• Green procurement

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons

Awards & Recognition

• Corporate Social Responsibility Excellence Award (2018 Business Awards of Macau)
• Macau Energy Saving Activity 2018 Hotel Group B Excellence Award and Continuous Saving Award (Grand Lisboa Hotel)
• Silver Award in Macao Green Hotel Award 2017–2019 and the “Environmental Performance” Gold Award at the 2018 Business Awards of Macau (Sofitel Macau at Ponte 16)

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Environmental Sustainability (Green Facilities, Green Hospitality, Green Gaming)
• Employee Well-being and Engagement
• Community Investment

Environmental Achievements

• Grand Lisboa Palace Resort Macau awarded LEED® Silver certification.
• Implemented energy-saving initiatives in Grand Lisboa hotel and casino (LED lighting, smart controls).
• Reduced Casino Lisboa external lighting operating hours by 30%.
• Satellite casinos switched to energy-efficient lights and reduced exterior lighting operating hours.
• Implemented water-saving measures (filtration systems, water-saving devices).

Social Achievements

• Organised 45 recruitment events for Grand Lisboa Palace.
• Provided over 9,000 hours of anti-corruption and money laundering training.
• Promoted responsible gaming with a focus on family relationships.
• Received Family-Friendly Employers Awards for 2018-2020.
• Introduced Non-Mandatory Central Provident Fund System to employees.
• 9,489 staff participated in the 37th “Walk for a Million”.

Governance Achievements

• Established a Sustainability Steering Committee and five ESG working teams.
• Published the first standalone ESG Report.
• Implemented anti-corruption and money laundering policies and measures; no legal or material cases of non-compliance.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and community.
• Climate change risks (extreme weather events).

Mitigation Strategies

• Implemented stringent anti-pandemic policies and measures.
• Incorporated climate-resilient features in Grand Lisboa Palace (flood protection, wind resistance).
• Hired insurance specialist to assess and advise on insurance coverage.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy (introduced January 2021)
• Priority given to local suppliers and suppliers meeting environmental criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (typhoons)

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ESG Reporting Guide (Appendix 27 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited), UN Sustainable Development Goals (SDGs)

Certifications: LEED® Silver (Grand Lisboa Palace), Certified Sustainable Development Corporation (World Institute of Sustainable Development Planners)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

SJM aligns its sustainability objectives with the UN SDGs.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• LEED® Silver (Grand Lisboa Palace)
• Certified Sustainable Development Corporation
• Family-Friendly Employers Awards (2018-2020)
• 2020 Elderly Employment Award

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Stewardship of our Planet
• G.R.E.A.T.NESS of our People
• Cornerstone of our Community

Environmental Achievements

• Grand Lisboa Palace received LEED® Silver certification
• Recycled over 427 tonnes of waste
• Reduced GHG emissions intensity by 17.23%
• Reduced general waste disposal intensity by 83.41%
• 100% shift to biodegradable straws, stirrers, and chopsticks in hospitality

Social Achievements

• Low employee turnover rate of 8%
• Zero work-related fatalities for three consecutive years
• Over 247,000 hours of training provided to employees
• Over 11,400 staff participated in the Non-Mandatory Central Provident Fund System
• Supported local employment with over 90% of workforce being local

Governance Achievements

• Established Sustainability Steering Committee and five ESG Working Teams
• Zero concluded legal cases regarding corrupt practices
• Implemented Sustainable Procurement Policy
• Provided over 15,000 hours of anti-money laundering training
• Implemented comprehensive complaint handling procedures

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations and tourism
• Climate change related risks (extreme weather events)
• Managing waste effectively
• Reducing carbon footprint

Mitigation Strategies

• Strengthened preventive measures and Health Code checks
• Developed Emergency Contingency Plans
• Implemented waste management and recycling programs
• Set GHG emission reduction targets
• Exploring renewable energy strategies (solar energy feasibility study)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy
• Prioritization of local suppliers (80% in 2021)
• Green procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme rainfall and storm surge
• Extreme typhoons and wind

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Guide

Certifications: LEED® Silver (Grand Lisboa Palace), Certified Sustainable Development Corporation

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Null (Five primary SDGs mentioned but not specified)

Not disclosed

Sustainable Products & Innovation

• rPET bottled water

Awards & Recognition

• Numerous awards mentioned in the report (details not quantified)