IT’S NOT AN OPTION, IT’S NOT A LEGAL OBLIGATION, IT’S NOT A PRESS RELEASE. IT IS A PASSION.
TO RESPECT OUR PLANET, TO INSPIRE OUR GUESTS, TO PROTECT OUR COMMUNITIES.
PUSHING BOUNDARIES, INVENTING NEW PATHS, GOING ABOVE AND BEYOND WHAT OUR WORLD KNOWS, WE ARE CHANGING THE GAME, NOW.
CONTENTS
ABOVE & BEYOND
4 CONTENTS SUSTAINABILITY & CSR REPORT 2018 ABOUT THIS REPORT 01
e are excited to launch We welcome your feedback on this report, ‘Above & Beyond,’ our new our sustainability and CSR strategy and W Sustainability & Corporate our goals. Please email: Social Responsibility (CSR) strategy in [email protected] this report. with your comments.
Above & Beyond sets ambitious goals
ABOVE & BEYOND ABOVE and increases our transparency on the environmental, social, and governance (ESG) topics that are central to our business. We plan to issue annual updates to share how we are improving on our key performance indicators.
This report has been prepared in accordance with the principles and disclosures of the Global Reporting Initiative (GRI) Standards: Core Option. The GRI Standards are the most widely- used sustainability reporting framework in the world today.
This report covers our priority ESG topics for all entities covered in our financial statements, including our resort facilities in Macau and Manila, Philippines. The highlights and metrics shared in the report cover the 2018 calendar year and we provide multi-year data where relevant. Financial information, unless otherwise stated, is presented in U.S. dollars.
6 ABOUT THIS REPORT SUSTAINABILITY & CSR REPORT 2018 8 MESSAGE 9 02 A MESSAGE from OUR CEO
t wasn’t so long ago that in polite society, Over the past year we have been building a children were supposed to be seen and more detailed, data-driven understanding of our I not heard. Thankfully though, we’re now impact, and we are harnessing these findings, not only listening to and learning from them, alongside our many programs and targets, in a we’re finally taking responsibility for the world new strategy that will further unlock Melco’s that they’ll inherit from us. Because it is they huge capability as a force for good. who will have to deal with the consequences of so many of our and our predecessors’ actions. We are calling this shift in thinking and approach, ‘Above & Beyond.’ Quite simply, it Whilst there is ample legislation, guidelines, captures my personal commitment to embrace and standards governing every aspect of our sustainability as a powerful engine for growth corporate activity, it’s often the opinions and and a catalyser for change. At the heart lie four desires of my daughter that best represent the goals that will shape our work in years to come. guiding light for my thinking and actions. I find myself asking “what would she think” of how Our resorts will be carbon neutral. we are tackling issues such as climate change, pollution, responsible gaming, or support for We will take the lead on tackling plastic waste the community around us? Are we acting in a in Macau, and beyond. way that would make her proud of our integrity and intent? Through the power of entertainment, we will inspire positive change. As the only major integrated resort operator to be a 21st century company, Melco was founded And we should continue to be a great in 2004, and one of the things that has always community partner, and employer of choice. set us apart is the depth to which we care about our impact on the world we all share. On the Since the start we’ve been game-changers, surface, we exist to pamper and entertain our whose focus is on bringing the future into the guests, and we lead the world in that. Yet as lives of our guests, today. ‘Above & Beyond’ a multinational company of more than 20,000 is our commitment to making it sustainable, individuals, we have a responsibility that runs positive and rewarding for all of those involved. much deeper.
Every one of us must play our part in tackling the big challenges present and future generations face. And this requires us to LAWRENCE HO rethink some of the most basic aspects of how Chairman and CEO our industry works. CHAIRMAN AND CEO
10 MESSAGE FROM OUR CEO 11 12 OUR VISION 13 OUR VISION: ABOVE & BEYOND
03 To achieve our vision, we are bringing together our social and environmental achievements and ambitions in a new strategy we call Above & Beyond.
oing well by doing good in the places our guests, colleagues D and other stakeholders live, work and play has always been central to our business philosophy. Our vision is
ABOVE & BEYOND ABOVE to change the game in our industry and in the places we operate, by bringing the power of innovation, entertainment and play to some of the challenges that face the world in the 21st century.
To achieve our vision, we are bringing together our social and environmental achievements and ambitions in a new strategy we call Above & Beyond that will guide our actions to 2030. Above & Beyond sets new goals, including eliminating the impact of our resorts on the climate by 2030, and taking a lead on circular economy approaches to the global push to clean up plastic waste. It also further commits us to ensuring we are the best community partner, and foster a best- in-class place to work. Through these actions, it will help inspire our guests to realize that a sustainable future is a better future. Above & Beyond will accelerate our Sustainability & CSR program across the board so that Melco becomes a benchmark for our industry and beyond.
14 OUR VISION OUR GOALS FOR 2030
Above & Beyond sets out our ambitions under four goals:
• Inspiring our guests by showing them a sustainable future is a better future: Our guests arrive at Melco resorts expecting to be entertained and to experience best-in-class luxury. Our goal is to ensure sustainability enhances that experience, through our dedication to inspirational innovation.
• Being the best partner and best place to work: Ensuring that Melco is an employer of choice and a force for good in the community lies at the heart of our philosophy. The same focus will drive us to be the best partner and place to work.
• Achieving carbon neutral resorts: Tackling climate change is a top priority, so we set the goal of achieving carbon OUR APPROACH
neutrality in our operations. We have SOCIETY AND COMMUNITY PROGRAMS: implemented reduction targets across a Societal and community issues are built into business strategy and drive partnerships and collaboration range of emission sources to achieve our on a wide range of community projects. Philanthropy and volunteering are also a big part of how we sup- goal. port communities where we operate. • Achieving zero waste across our resorts SUPPORTING AND GOVERNANCE AND ENVIRONMENTAL RESPONSIBLE and contributing to circular economy DEVELOPING OUR PEOPLE: ETHICS: INITIATIVES: GAMING: leadership in Asia: People and culture We have steering Taking care of our Our award-winning We will work to eliminate waste in our drive success, so we committees for environmental work on responsible operations through reducing the use of create a culture of responsible gaming, impacts means an gaming includes materials, reusing or recycling waste that excellence by hiring environmental ambitious program industry - leading otherwise would be sent to landfill, and for potential and sustainability and CSR on renewable energy, technology, exploring options for energy recovery. investing in training. with active participa- and a growing focus comprehensive We will also pursue waste management We compete for the tion from Chairman & on materials, waste, training programs, initiatives that support the circular best on reputation, CEO, Lawrence Ho. We water, and sustainable cooperation with economy around all our resorts in Asia. career opportunities, track emerging issues procurement. regulators, and and a great working through our mate- commitment from the environment, always riality process, and very top. alming to be employer drive behaviour with of choice. our Code of Business Conduct and Ethics. P.7 OUR VISION SUSTAINABILITY & CSR REPORT 2018 17 ABOVE & BEYOND
Given the significant environmental UR FOCUS AREAS O impact plastics pose, we plan to phase out all single-use plastic bottles, plastic straws We will deliver our goals by continuing and plastics in our amenity packs and to build on our Sustainability & CSR send no plastic to landfill from any of our program, through five focus areas which resorts by 2030. Our waste practices are also form the main sections of this report. being overhauled to achieve zero waste - by sending no waste to landfill with a focus on reducing, reusing and recycling S UPPORTING AND DEVELOPING E NVIRONMENT PROGRAMS or not incinerating waste without energy OUR COLLEAGUES recovery - by 2030. Melco’s environment programs have Our outstanding culture of service A recent global survey by Willis Towers Watson showed that our won multiple awards – including the We are also strengthening our sustainable depends on the passionate commitment colleagues like it here—with 80% telling us they are proud of prestigious Green Key Awards in 2018 sourcing efforts by tackling high impact of our 21,000 colleagues. Attracting and where they work. Our long-term vision is to offer professional for Morpheus, Nüwa, The Countdown procurement categories, such as cotton, retaining the best people means building a and educational programs for all our colleagues. We established at City of Dreams and Studio City Hotel, chemicals, and seafood. You can read great employer brand. We pride ourselves Macau’s first in-house Learning Academy in 2009, and we are and the Asian Excellence Award for best about these and other commitments we on providing career opportunities and a partnering with international and local educational institutions environmental responsibility each year have made in the Environment section. positive working environment where to ensure our colleagues earn recognized credits, diplomas, and from 2013–16. These awards recognize people feel valued, cared for and are certificates. Learn about our work supporting and developing
ABOVE & BEYOND ABOVE achievements we are proud of, from recognized for performance. Building the Melco team in the People section. installing Macau’s largest onsite solar the right team means recruiting for photovoltaic array, to sourcing 100% of attitude and potential and then investing “The New Plastics Economy Global our electricity from renewables in 2018, in skills through a wide range of programs Commitment unites businesses, to using decomposer technology at City focused on personal and professional of Dreams, which handle 200 kg of food governments and others behind a clear development. The workplace itself really waste daily. vision of a circular economy for plastic. matters, so we invest in “Heart of House” We are pleased Melco Resorts and best-in-class amenities including onsite Our pioneering investments in renewable Entertainment as the first hospitality medical clinics and healthy food available energy are the centerpiece of our plan to around the clock. group and integrated resort is joining achieve carbon neutral resorts. As well as us, by setting concrete 2025 targets. solar arrays, we are investing in electric vehicles and energy efficiency measures Our vision is for a world where plastic in a comprehensive roadmap to become never becomes waste or pollution. It carbon neutral by 2030. will be a challenging journey, but by coming together we can eliminate the We are the first and only hospitality group plastics we don’t need and innovate, and integrated resort operator globally so the plastics we do need can be to join the New Plastics Economy Global Commitment, led by the Ellen MacArthur safely and easily circulated – keeping Foundation in collaboration with UN them in the economy and out of the Environment. environment.”
Sander Defruyt, Lead of the New Plastics Economy initiative at the Ellen MacArthur Foundation
18 OUR VISION OUR VISION 19 ABOVE & BEYOND
S OCIETY AND COMMUNITY PROGRAMS
Society and community issues are built Japan, Macau and Manila. One example is the 2,500 Morpheus into Melco’s business strategy, and construction workers that we reassigned to join government- are also the focus of partnerships and led efforts to restore the city’s most affected areas following collaboration with government, charities, Typhoon Hato in 2017. More detail on the many programs we educational institutions, and community support are outlined in the Society & Community section. organizations. The culture and heritage of our host communities are part of what G OVERNANCE AND ETHICS makes a resort special, and we work hard to ensure we are welcomed as a committed community partner. Whether it is Our industry is in the spotlight for some stakeholders when it innovative projects to promote culture and comes to governance and ethical considerations, and so our heritage, programs that support women, program must go well beyond simple compliance. Governance investments in local infrastructure, arrangements set the tone. We have steering committees for or the young people who have been CSR (led by our Chief Officer for HR/CSR), for Environmental inspired by the world’s best through our Sustainability (led by our Chief Sustainability Officer) and for Dare to Dream program, Melco takes its responsible gaming led by Chairman and CEO, Lawrence Ho, responsibilities seriously and is working who takes overall lead for governance of CSR on the Melco for the long-term benefit of all. The same board. We keep an eye on emerging and current issues through values inspire our colleagues to give their our materiality process, and set the standard for colleagues’ time to good causes, and we are very behaviour with our Code of Business Conduct. Read more proud of the high level engagement of our about our programs on anti-corruption and data privacy and colleagues in CSR activities. security in the Governance & Ethics section.
R ESPONSIBLE GAMING
To help our guests manage their gaming we responsibly provide Melco helps local suppliers and SMEs safeguards and support to those who need help. We train all to succeed. We partner with them to colleagues to identify and manage problem gambling, and help them understand our expectations raise awareness of potential issues with guests and the wider through activities such as Vendor community. We have over 300 responsible gaming ambassadors, Experience Tours, our standards, and more than 65,000 colleague participants have taken part in Business Matching Sessions, ISO and responsible gaming activities since 2009. Alongside our use of other workshops. Through better innovative technology to restrict access, these programs explain understanding of our specific needs, they why Melco was named Socially Responsible Operator of the are able to be a better provider of products Year at the 12th International Gaming Awards in February 2019. and services. Read more about our industry-leading work on responsible gaming, which is led personally by our Chairman and CEO We also support where we are needed Lawrence Ho in the Responsible Gaming section. most, such as the investments we made TYPHOON HATO following the natural disasters affecting Volunteering
20 OUR VISION SUSTAINABILITY & CSR REPORT 2018 OUR VISION 21 22 ENVIRONMENT 23 ENVIRONMENT 04
“The ambitious new environmental goals we have launched will continue to focus our efforts and catalyse our progress.”
DENISE CHEN, SENIOR VICE PRESIDENT, CHIEF SUSTAINABILITY OFFICER
ABOVE & BEYOND ABOVE e are harnessing the power Through these goals, we will show that a of play to create a more sustainable future is the only future and W sustainable future for our inspire others to do the same. We can children and the planet. Providing our only achieve these goals by inspiring our guests new experiences in luxury, and colleagues, partners, vendors, and guests entertainment that also protect the to collaborate with us on our vision for the environment is a top priority. That is why future, and acting with passion, conviction we have set ambitious environmental and the relentless ambition that our goals for 2030 focused on: company is built on.
• Building and operating carbon neutral resorts;
• Achieving zero waste across our resorts and contributing to the circular economy in Asia; and
• Extending our positive impact by sourcing sustainable goods and services.
24 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ABOVE & BEYOND
GOVERNANCE VERMICOMPOSTING AT CITY OF E NGAGING OUR COLLEAGUES R ECOGNITION DREAMS MANILA
Our Chairman and CEO Lawrence Ho Reaching our goals is a team effort. To continue to improve, we need to look to industry and leads by example with active participation We have implemented a network of global best practice. Four of our hotels have received the in our Executive Sustainability Committee Sustainability Champions to encourage industry-renowned Green Key Award, meeting the highest meetings. This committee sets our colleagues to engage in environmental environmental management standards set by the Foundation priorities, constantly drives our ambition, programs, identify opportunities and build for Environmental Education (FEE). Our ISO14001 and is responsible for establishing the sustainability from the ground up. Environmental Management System (EMS) supports our necessary governance, policies, funding offices to benchmark performance and track our progress and reporting arrangements we need New colleagues are introduced to our towards goals. We will continue to assess and pursue global across the business. It is chaired by our sustainability approach as part of their standards, for the travel and tourism industry to evaluate and Chief Sustainability Officer and supported general induction, called the Melco recognise our sustainability practices. by our Chairman and CEO, Property Orientation. The Melco Orientation Presidents, and Executive Vice Presidents covers our sustainability initiatives, which of several corporate and business can range from innovative installations Departments who are active members of to simple ways to save environmental the Committee. resources. We want their ideas, and to encourage them to identify ways they can improve sustainability at work and at ABOVE & BEYOND ABOVE The Committee is supported by three Working Groups centered around our home. In 2018, Melco became Macau’s first and only environmental goals: Carbon Neutral, Zero Waste and Sustainable Sourcing. These establishment to achieve the prestigious Green working groups identify and assess best practices, help prioritize projects across Through our ongoing ‘Sustainability Key Awards at four of our integrated resort properties, and measure and verify performance. The working groups help our Thoughts’ initiative, facts, trivia and properties: Morpheus, Nüwa, The Countdown at properties plan and implement the goals set by the Committee. suggestions are regularly shared with City of Dreams and Studio City Hotel. Green Key colleagues using email, discussion is the leading global tourism industry award for boards and shift briefings. Colleagues excellence in environmental responsibility and also promote environmental awareness sustainable operations. EXECUTIVE by collaborating with community CHAIRMAN & CEO SPONSOR organisations to plant trees, clean coastal areas, and conduct donation and targeted recycling campaigns. EXECUTIVE CHIEF SUSTAINABILITY OFFICER CHAMPION
CHIEF FINANCIAL EVP, CHIEF OFFICER, EVP, DESIGN & OFFICER HR/CSR CONSTRUCTION
SVP, CHIEF COMMITTEE CHIEF MARKETING & EVP HOTELS GOVERNMENT MEMBERS BRAND OFFICER & F&B AFFAIRS OFFICER
ALL PROPERTY PRESIDENTS
26 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 27 CARBON NEUTRAL RESORTS CARBON NEUTRAL RESORTS
Climate change is not just an issue for with shuttle buses, we will expand our use the future, it is happening right now. of electric vehicles across our properties Extreme weather events, such as the and power them with renewable energy. typhoons experienced at our own resorts, are predicted to increase in frequency as 3. Switching from grid electricity to the climate changes. renewable electricity. We are already installing onsite renewable sources of To address these big challenges, we need energy. We’ll prioritize this along with to rethink some of the most basic aspects investments in offsite renewable projects MAXIMIZE OUR USE OF ALL OUR RESORTS of how our industry works. and virtual power purchase agreements ENERGY EFFICIENCY CARBON NEUTRAL MEASURES TO REDUCE BY 2030. (vPPAs) where possible. To ensure all our CONSUMPTION We believe that luxury and world class electricity is from renewable sources, we AT EXISTING entertainment experiences can go hand- will purchase Energy Attribute Certificates RESORTS. in-hand with caring for the climate. That’s (EACs) or other renewable energy why we are playing our part in combating instruments to help stimulate renewable ABOVE & BEYOND ABOVE climate change by committing to achieving energy markets in the regions we operate carbon neutrality 1 at all our resorts by in. 2030. This bold ambition will be built on continuously improving energy efficiency 4. Reduce and offset our indirect footprint. at our existing properties, and investing Upon continuously maximizing efficiency in renewable energy, innovation and other measures and use of renewable energy, low- and no-carbon technologies such as we will offset any remaining emissions by electric vehicles. purchasing verified carbon credits in line with our carbon neutral commitment.
Carbon neutrality is a demanding goal, but 1 As defined by The CarbonNeutral Protocol: The global we are building a roadmap to achieve it standard for carbon neutral programs. January 2018, Natural with four main strategies: Capital Partners. https://assets.naturalcapitalpartners.com/ downloads/The_CarbonNeutral_Protocol_Jan_2018.pdf 100% OF THE ELECTRICITY USED ACROSS 1. Reduce our energy consumption with OUR GLOBAL OPERATIONS PRODUCED FROM OR MATCHED AGAINST GENERATION FROM energy efficiency measures at our existing RENEWABLE SOURCES FROM 2018 ONWARDS. properties. Avoiding the use of energy is not only the preferred environmental option, it also enables us to track these savings to invest in other sustainability initiatives to support our strategy.
2. Electrify our fleet of vehicles over time to reduce the use of fossil fuels. Starting
28 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 29 ABOVE & BEYOND
HOW WE ARE DOING TOTAL ENERGY CONSUMPTION ALL NUMBERS IN MWH (MEGAWATT HOURS)
We are making substantial progress towards carbon neutrality across our four 2016 2017 2018 integrated resorts in Macau and Manila. Our absolute Scope 1 & 2 have reduced by FUEL CONSUMPTION FROM 95% since 2016. 55,170 55,765 74,208 NON-RENEWABLE SOURCES
FUEL CONSUMPTION FROM - - - RENEWABLE SOURCES
GHG EMISSIONS ELECTRICITY CONSUMPTION 2 IN MTCO E (METRIC TONNES CARBON DIOXIDE EQUIVALENT) FROM NON-RENEWABLE 423,089 409,666 - SOURCES
ELECTRICITY CONSUMPTION 2016 2017 2018 - - 431,060 ABOVE & BEYOND ABOVE FROM RENEWABLE SOURCES
13,581 15,132 19,781 TOTAL ENERGY SCOPE 1 478,260 465,430 505,269 CONSUMPTION
SCOPE 2 (MARKET-BASED) 363,226 328,225 - ENERGY INTENSITY BY GROSS FLOOR AREA 0.038 0.037 0.036 (IN SQUARE FEET) TOTAL SCOPE 1 AND 2 376,807 343,357 19,781 EMISSIONS "MINOR DISCREPANCIES IN THE TOTAL SUMS OF INDIVIDUAL COMPONENTS IS DUE TO ROUNDING. TOTAL GROSS FLOOR AREA (GFA) IS MEASURED IN SQUARE FEET AND COVERS THE FOLLOWING PROPERTIES: CITY OF DREAMS, ALTIRA MACAU, STUDIO CITY, MOCHA CLUBS, AND CITY OF DREAMS MANILA, AS WELL AS EMISSIONS INTENSITY BY CORPORATE OFFICES OF MELCO RESORTS AND MELCO INTERNATIONAL." GROSS FLOOR AREA 0.030 0.027 0.001 (IN SQUARE FEET)
MELCO’S GHG INVENTORY IS CALCULATED USING AN OPERATING CONTROL APPROACH. THE INVENTORY ALIGNS WITH THE GREENHOUSE GAS PROTOCOL CORPORATE ACCOUNTING STANDARD (“GHG PROTOCOL”) PUBLISHED BY THE WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT (WBCSD) AND THE WORLD RESOURCES INSTITUTE (WRI), AND REFERS TO THE GLOBAL WARMING POTENTIALS (GPWS) OF THE FIFTH ASSESSMENT REPORT (5AR) OF THE INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE (IPCC). SCOPE 2 LOCATION-BASED EMISSIONS ARE REPORTED IN THE GRI CONTENT INDEX.
TOTAL GROSS FLOOR AREA (GFA) IS MEASURED IN SQUARE FEET AND COVERS THE FOLLOWING PROPERTIES: CITY OF DREAMS, ALTIRA MACAU, STUDIO CITY, MOCHA CLUBS, AND CITY OF DREAMS MANILA, AS WELL AS CORPORATE OFFICES OF MELCO RESORTS AND MELCO INTERNATIONAL.
30 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 31 ABOVE & BEYOND
RESORT GHG EMISSIONS
IN MTCO2 E 2016 2017 2018
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
CITY OF DREAMS CITY OF DREAMS STUDIO CITY ALTIRA MACAU MANILA
STUDIO CITY
Golden Reel
32 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 33 ABOVE & BEYOND
REDUCING OUR ENERGY CONSUMPTION
RESORT PURCHASED Energy efficiency is always our preferred ELECTRICITY CONSUMPTION
way of reducing our emissions. In 2018, IN MWh 2016 2017 2018 we completed detailed energy audits and “Our energy created environmental roadmaps at all our efficiency programs make resorts. 2018 highlights include : smarter use of energy. New 200,000 technologies are providing • LED Lighting installations: 180,000 our guests with the We continued rolling out energy-efficient 160,000 LED lighting for both exterior and interior experience they expect, in a illumination. All newly constructed or more sustainable way.” 140,000 renovated spaces are equipped with 120,000 latest technology LEDs. Over 70% of approximately 4,300 light installations VINCENT WONG 100,000 have been converted in the parking EXECUTIVE DIRECTOR, PROPERTY SERVICES 80,000 building at City of Dreams Manila, saving ABOVE & BEYOND ABOVE nearly 27,700 kWh monthly. 60,000
40,000 • Greater use of photo-sensors: We implemented photo-sensors in outdoor 20,000 light fixtures and all hotel staff lift lobbies reduced energy consumption at each of - in Altira Macau, as well as in priority our other three resorts by an average of spaces in the City of Dreams and Studio 10%. CITY OF DREAMS CITY OF DREAMS STUDIO CITY ALTIRA MACAU City Heart of House. This will help ensure MANILA those lights are only turned on when they We are proud that Studio City received the are needed. CEM Energy Saving – Excellence Award in 2018 in recognition of its work to improve • Optimised building management energy efficiency. There has been a systems: To help us understand where simultaneous drop in the use of absolute other savings can be made, we are electricity at this resort by 13% since 2016. optimising our building management system at City of Dreams Manila to collect data from individual submeters and track energy use and temperature.
Excluding City of Dreams, which expanded significantly with the addition of Morpheus, between 2016 and 2018 we
34 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 35 TRANSITIONING TO RENEWABLE ENERGY
Renewable energy is the future. To play our part in accelerating adoption, we are investing in renewable energy markets in «We are thrilled as a local small the locations where we operate, and in and medium enterprise to have the particular leading the way in Macau by opportunity to collaborate with Melco implementing the first large-scale onsite on this pioneering sustainability solar photovoltaic project. In addition project for Macau’s gaming and to this, we are already procuring 100% of the electricity we use from renewable hospitality industry. The vast scale of sources through our purchase of EACs or the system has never before been seen PowerPlus. in Macau, and through the ongoing partnership with Melco, our company has gained valuable knowledge and M ACAU’S LARGEST SOLAR ARRAY on-the-field experience to establish its
ABOVE & BEYOND ABOVE foundation as a forerunner in the area Close to 30,000 square meters of rooftop of sustainable energy.» space at City of Dreams and Studio City in Macau is covered with over 18,000 solar photovoltaic panels. They will have the MR. SAM LIU capacity to generate nearly 7.7 million DIRECTOR OF BUSINESS DEVELOPMENT AT MAN IO ENERGY kWh of energy per year—enough to power 1,500 households.
We are the first integrated resort in Macau to install such large-scale onsite renewable energy technology. Once fully operational, it will reduce our CO2 emissions by more than 6,000 tons a year. This is roughly the same amount of CO2 that 260,000 trees would absorb annually.
This is not just about our carbon footprint. The project has great potential to create positive change in Macau by nurturing the local renewable energy industry. This is one of the reasons we partnered with local company, Man Io Energy, to install the panels. CITY OF DREAMS
Grand Hyatt Macau
36 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 37 ABOVE & BEYOND
S TIMULATING THE RENEWABLE OUR VISION FOR FUTURE ENERGY MARKET RESORTS
As we work to increase our investment launching Macau’s largest fleet of twenty in onsite and offsite renewable energy zero-emission electric buses in September Our new resorts offer even greater At the heart of our design philosophy is an attention to thermal projects, we also want it to have an 2018, we celebrated not only a reduction opportunity for positive environmental comfort, acoustic performance, indoor air quality and the use immediate impact on the environment. in greenhouse gas emissions, but also an impact, and we are committed to of natural daylighting to reinforce the health and wellbeing of improvement in air quality and the health designing them to the highest standards our guests and our colleagues. Using our procurement power is an of our staff and local communities. of environmental sustainability. New effective way for Melco to drive change. building design, will be informed by We will target a 20% improvement in energy performance That is why 100% of the electricity used at globally recognised, sustainable building compared to the ASHRAE baseline. To achieve this, we will our resorts in 2018 came from renewable certifications, to ensure we identify enhance the thermal and solar properties of the building sources through purchased EACs issued opportunities for sustainable design and façade, as well as create system efficiencies and sub-metering by the I-REC Standard (International potential for future certification. to accurately monitor energy consumption. Renewable Energy Certificate Standard) from renewable energy projects in China Our vision for the second phase of Dedicated areas for the collection and storage of recyclable and the Philippines. The I-REC Standard development at our Studio City resort materials will be incorporated into the building design to allows us to guarantee that our electricity in Macau features an exciting mix of ensure we maximize sorting and recovery of materials. The
ABOVE & BEYOND ABOVE is coming from renewable sources and 900 rooms and suites and non-gaming principal contractor will also be required to implement a via credible tracking systems, while entertainment attractions, including one construction and waste management plan that facilitates the also supporting local renewable energy of the largest water parks in Asia. It will reuse, recycling and recovery of materials throughout the markets. also implement an ambitious array of construction phase. sustainable design elements that support PowerPlus, a similar scheme in Japan, our carbon neutral and zero waste goals. enables us to match our electricity consumption in our Japan operations with renewable energy generation in The buses operate as guest shuttles the country. It is verified and validated between our City of Dreams, Studio City through J-Credit Standard, a Japanese and Altira Macau resorts. They represent standard that provides independent third- a collaboration with manufacturer party assurance of the electricity produced Zhengzhou Yutong Bus Company and carbon emission reductions. Limited and support broader government commitments for a greener Macau.
E LECTRIFYING OUR VEHICLE FLEET
Small changes can have a far wider impact. Fossil fuels, natural gas in our kitchens, and diesel in our vehicle fleet, represent less than three percent of our direct carbon footprint. However, in
38 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ABOVE & BEYOND
ACHIEVING ZERO WASTE RESORTS AND CONTRIBUTING WASTE DISPOSAL BY METHOD TO CIRCULAR ECONOMY (IN TONS) LEADERSHIP IN ASIA
2016 2017 2018 Melco’s goal is to be a leader in the Circular Economy movement in Asia, and achieving zero waste resorts by 2030. To Melco, “zero waste” means sending no waste to landfill or incinerating COMPOSTING 29 32 71 waste without energy recovery.
RECYCLING 627 555 576 A circular economy is one that keeps materials in productive use for longer and eliminates waste. It’s an idea that affects INCINERATION WITH 11,892 11,680 12,423 the way we think about our entire business. It requires us to ENERGY RECOVERY strategically design our resorts and operations with greater focus on which materials we use, how much and how long we INCINERATION - 2 7 use the materials for and, of course, how we dispose of those materials. LANDFILL 3,981 3,885 3,260 ABOVE & BEYOND ABOVE It requires us to find new solutions, and to harness the WASTE INTENSITY BY GROSS innovative spirit that is at the core of our business. This will FLOOR AREA*** 0.0013 0.0013 0.0012 help us to shape the future of gaming and entertainment in (IN SQUARE FEET) Asia. By doing so, we aim to help lead the transition to a more TOTAL (TONS) 16,528 16,154 16,337 circular economy.
To achieve zero waste we will : "MINOR DISCREPANCIES IN THE TOTAL SUMS OF INDIVIDUAL COMPONENTS IS DUE TO ROUNDING. TOTAL GROSS FLOOR AREA (GFA) IS MEASURED IN SQUARE FEET AND COVERS THE FOLLOWING PROPERTIES: CITY OF DREAMS, ALTIRA MACAU, STUDIO CITY, MOCHA CLUBS, AND CITY OF DREAMS MANILA, AS WELL AS • Improve how we use resources, and eliminate waste in our CORPORATE OFFICES OF MELCO RESORTS AND MELCO INTERNATIONAL." operations
• Partner with our supply chain for innovative solutions that O UR WASTE FOOTPRINT eliminate waste and enhance circularity
This is not a new concept for us; we received an “Excellence” The majority of our waste is incinerated ranking at our Hong Kong offices from Wastewi$e for ten with energy recovery, allowing us to avoid consecutive years from 2009-2018. Wastewi$e rankings evaluate landfills. Meanwhile, waste to landfill three areas: reducing waste, recycling, and buying recycled tonnage has decreased every year since products. 2016, while composting has increased. These trends support the reduce, reuse, and recycle efforts subsequently described in this section.
40 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 41 ABOVE & BEYOND
T AKING ACTION ON PLASTIC WASTE
Plastic waste is a global challenge and to 100 metric tonnes of plastic annually, addressing requires us to respond with an ambitious approximately 96% of our Macau resorts and 90% plan. In 2018 we started working on just of our Manila resorts water bottle procurement. such a plan, with a focus on eliminating In Manila, through colleague training, we have T AKING ACTION ON FOOD WASTE all problematic and unnecessary plastic successfully separated 100% of the bottles from the items. We are innovating to ensure that general waste stream for recycling in 2018. Three the plastics we do need are reusable, initiatives, one goal – to reduce the plastic from Memorable and luxurious dining is an important part of recyclable, or compostable, and we are water bottles becoming waste. what attracts our guests to Melco resorts. Beyond these reusing, recycling or composting to keep signature restaurants, there are more than 95 restaurants, plastic in the economy and out of the We are making many small changes like these which, cafes and bars across our properties offering a range of environment. Melco recently became the when combined, will have a significant impact. We culinary choices to our guests. Behind the scenes, our first hospitality company to join the Ellen replaced plastic stirrers with wooden alternatives in employee dining facilities cater around the clock for over MacArthur New Plastics Economy Global Manila. We moved to single-wrapping cotton buds at 21,000 colleagues. We offer a ‘healthy food corner’ for Commitment, solidifying our approach to Altira Macau and Morpheus rather than the previous our colleagues that includes fresh fruit and vegetables addressing plastic waste. double-layered version. The work continues as we delivered daily. explore further sustainable replacements for plastic
ABOVE & BEYOND ABOVE Focusing initially on drinking straws, items such as straws, take-away containers, trash Composting also helps to reduce food waste. In Macau, water bottles, and packaging from the bags, and ice cream spoons. we are composting 200 kg of food waste a day, equivalent in-room amenity packs, we will also be to 73 tons a year. By composting we can reuse organic expanding our efforts to all single use waste, reducing associated CO2 emissions and other plastic amenity items and packaging environmental impacts. At City of Dreams Manila, across our operations. wormeries break down material such as eggshells, vegetable peelings, and gardening clippings, to produce This work involves the focused efforts of vermiculture. This in turn is used as organic fertilizer on colleagues from across the business and our grounds, reducing the need for chemical fertilizers. a range of new initiatives. Take bottled water as an example. We have installed Food waste audits completed in 2018 at our Heart-of- over 100 water dispensers throughout House employee dining facilities at City of Dreams and our properties, and we estimate these Studio City in Macau helped us identify waste reduction dispensers have saved over 390,000 half- opportunities that we can replicate at our other properties. litre bottles since 2017. At both Manila In 2019, we will explore opportunities to inform leaner food and Macau, we are ‘lightweighting’ water production and demand forecasting. We will also install bottles by reducing the size and thickness a food waste pulper to promote efficient decomposition of bottles and caps. Decreasing bottle of waste material. weights by more than 26% will save close
42 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 BLA BLA BLA P.8 ABOVE & BEYOND
OTHER HIGHLIGHTS OF OUR RECYCLING/REUSE INITIATIVES IN 2018
«Likhaya» is a social entrepreneurship program from the Virlanie Foundation, which is focused on repurposing some RECYCLE REUSE of our waste materials to support families in the Philippines. Mothers in Bulacan, Quiapo and Tondo are paid to craft eco-bags, packaging, eco-jewelry and handicrafts from old magazines, fabrics (uniforms, linens and curtains), thick canvas, sacks, cardboard boxes, tissue roll core, and other WE PARTICIPATE IN A NESPRESSO IN MANILA, WE COLLECT UNDEALT waste materials. Virlanie markets their products for corporate CAPSULE RECYCLING PROGRAM. SOME PLAYING CARDS INTO FULL PACKS FOR CAPSULES ARE HANDCRAFTED BY RECIRCULATION RATHER THAN TREATING gifts and through bazaars, using the proceeds to support a ARTISANS AT NVC FOUNDATION INTO THEM AS SINGLE USE. training centre for adults and kids as well as a ARTWORKS WHICH ARE SOLD TO SUPPORT street-based education program for street children. FAMILIES WITH THEIR HEALTH, EDUCATION AND LIVELIHOOD. THE THE PADS USED IN LAUNDRY REMAINING SHREDDED CAPSULES ARE PRESSING MACHINES ARE COVERED WITH RECYCLED BACK TO PURE ALUMINIUM DISCARDED LINENS, PROLONGING THEIR THROUGH SMELTING, AND THE COFFEE LIFESPAN. GROUNDS ARE DONATED TO LOCAL FARMERS TO BE USED AS FERTILIZER. IN MACAU, OVER 30,000 PIECES OF USED LINEN WERE REUSED TOWARD OTHER MACAU RESORTS RECENTLY JOINED THE NEEDS SUCH AS TYPHOON AND ‘CLEAN THE WORLD’ ASIA INITIATIVE, CLEANING SUPPLIES. IN MANILA, WE RECYCLING PARTIALLY USED SOAPS INTO DONATED OVER 6,500 PIECES OF USED SOAP BARS THAT ARE DONATED TO LOCAL LINEN TO MULTIPLE ORGANISATIONS AND REGIONAL COMMUNITIES IN NEED. SINCE SEPTEMBER 2017. THE SOAPS WILL BE PREDOMINANTLY DISTRIBUTED TOGETHER WITH HYGIENE EDUCATION TO THE PHILIPPINES, WITH A PORTION RESERVED FOR THE LOCAL MACAU RESIDENTS IN NEED OR AS PART OF THEIR HYGIENE EDUCATION PROGRAMS.
COLLEAGUES VOLUNTEER FOR OUR MANILA “SOAP FOR HOPE” PROGRAM, SANITIZING AND PROCESSING PARTIALLY USED SOAPS THAT ARE THEN DONATED TO PARTNER CHARITIES.
44 SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 45 ABOVE & BEYOND
WATER
Growing populations and climate change These initiatives have resulted in a relatively mean that water stress is an increasing consistent water consumption profile over the last WATER USE issue globally. We are committed to using three years. Our City of Dreams Manila and Studio (IN M3 ) this precious resource responsibly. City resorts have achieved a significant reduction in water consumption—over 20% and 9% respectively We have installed state-of-the-art since 2016. This data supports our future plans for 2016 2017 2018 equipment at our resorts to conserve improving the water efficiency at these operations. water. The SYNERGY® system purifies BY LOCATION water while reducing chemical use by up to 90%. A sophisticated filtration system CITY OF DREAMS 1,072,140 1,078,463 1,302,178 for The House of Dancing Water at City STUDIO CITY 1,026,695 981,723 937,636 of Dreams, allows us to reuse pool water indefinitely. ALTIRA MACAU 381,596 391,692 413,273
CITY OF DREAMS MANILA 685,454 597,792 544,561 At Altira, Macau we treat and recycle greywater from guestroom sinks, showers MOCHA 60,694 61,175 48,603
ABOVE & BEYOND ABOVE and baths to use as flush water, saving 5,338 5,615 5,798 more than half of the freshwater normally OFFICES required for flushing. JAPAN - 112 298
There are also many smaller scale water BY SOURCE efficiency measures installed across MUNICIPAL WATER 3,181,198 3,065,854 3,201,628 our resorts. These include automatic sensors on all faucets, water-saving RECYCLED WATER 50,718 50,718 50,718 toilets and showers in hotel guest rooms, and a rainwater recovery system to store TOTAL (m 3 ) 3,231,916 3,116,572 3,252,346 rainwater for irrigation. Additionally, we have invested in extensive planting WATER INTENSITY BY to minimise water loss through wind GROSS FLOOR AREA 0.256 0.247 0.230 evaporation from pools and river features. (IN SQUARE FEET) Behavioural change also plays a key role, as we train our colleagues to be water- conscious when cleaning guest rooms and "MINOR DISCREPANCIES IN THE TOTAL SUMS OF INDIVIDUAL COMPONENTS IS DUE TO ROUNDING. TOTAL GROSS FLOOR AREA (GFA) IS MEASURED IN SQUARE public areas. FEET AND COVERS THE FOLLOWING PROPERTIES: CITY OF DREAMS, ALTIRA MACAU, STUDIO CITY, MOCHA CLUBS, AND CITY OF DREAMS MANILA, AS WELL AS CORPORATE OFFICES OF MELCO RESORTS AND MELCO INTERNATIONAL."
46 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 47 ABOVE & BEYOND
SUSTAINABLE SOURCING THE BETTER COTTON
Our impact stretches far beyond C OTTON INITIATIVE CONNECTS our resorts. We recognise that with procurement we can amplify our PEOPLE AND ORGANIZATIONS environmental and social commitments We procure large quantities of cotton each year, with the choices we make, and be a force primarily in the form of high-quality bed linen and THROUGHOUT THE for positive change. towels for our hotel rooms, ensuring our guests have a luxurious night’s sleep. To mitigate the COTTON SECTOR, FROM FIELD environmental impacts associated with the global cotton industry, Melco is committed to sourcing TO STORE, TO PROMOTE cotton items that promote sustainable growing, harvesting and manufacturing practices. MEASURABLE AND “We are driving positive In 2018, we launched our sustainable cotton sourcing CONTINUING IMPROVEMENTS social and environmental guidelines which endorse and actively support changes far beyond our the sourcing of Better Cotton through the Better FOR THE ENVIRONMENT, operations through the Cotton Initiative in addition to OEKO-TEX® certified FARMING COMMUNITIES, AND
ABOVE & BEYOND ABOVE choices we make in the things cotton products in our hotels. The STANDARD 100 we buy.” by OEKO-TEX® certification ensures our products have been tested for harmful substances, providing THE ECONOMIES OF COTTON- reassurance to our guests that their safety has been PRODUCING AREAS. AUGUSTA VARGAS-PRADA put first. VICE PRESIDENT, GLOBAL SUPPLY CHAIN By the end of 2018, we had already made considerable BCI is the largest cotton sustainability program in the world strides with OEKO-TEX®: and makes enough cotton to manufacture 2.1 billion large bath towels. BCI Farmers produced 3.3 million metric tonnes Sustainable purchasing at Melco means • Within our Macau resorts, over 95% of our of Better Cotton lint in 2016-2017. At Melco, we are proud to be understanding more about the impact bed linens and towels by volume have obtained the first company in the hospitality sector to become members, of the goods and services we purchase STANDARD 100 by OEKO-TEX® certification. demonstrating our leading commitment to this initiative. and changing practices to reduce environmental impacts. It also means • Across all of our operations, over 70% of our investing in local suppliers so that our bed linens and towels by volume have obtained resorts support the local economy and the STANDARD 100 by OEKO-TEX® certification. communities that depend on it. Our goal is for 100% of our bed linens and towels In 2018, we implemented sustainable to be sourced from OEKO-TEX® certified suppliers sourcing guidelines for three key product by 2030, and 50% of our linens and towels to be categories – cotton, seafood and cleaning sourced as Better Cotton in the same timeframe. We products. Over time, we will add other will extend this goal to other textiles and garments, goods to our sustainable sourcing over time. program.
48 ENVIRONMENT SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 49 ABOVE & BEYOND
C LEANING PRODUCTS S EAFOOD
In 2018, we reviewed all the cleaning Healthy and productive oceans are important for both products we use and introduced marine ecosystems and the communities that rely on them guidelines and a sustainability rating for their livelihoods. To supply our restaurants and staff scheme for buyers. The guidelines state dining facilities across our resorts, we procure a large our preference for products that reduce amount of high-quality seafood from around the world. environmental and human health impacts By making a positive choice to purchase seafood products while maintaining quality. from sustainable fisheries and farms, we can play a role in promoting responsible management of fish stocks and We encourage buyers to choose products the health of our oceans. that meet internationally recognized eco-labels such as Green Key, Green Our recently implemented sustainable sourcing guidelines Seal and those that biodegrade outline our preference for Marine Stewardship Council easily, while avoiding products that (MSC), Aquaculture Stewardship Council (ASC), or contain chemicals that are harmful to Best Aquaculture Practices (BAP) certified seafood. the environment and human health. In We also highly consider seafood sourced from fishery 2018, Morpheus, Nüwa, The Countdown or aquaculture improvement projects, or are listed as at City of Dreams and Studio City Hotel all recommended or equivalent on reputable seafood rating received Green Key Awards. By achieving systems. These guidelines inform our work with suppliers these awards, our colleagues and guests to source certified products for our own operations. can be assured that we are continuously working to increase the number of To ensure that the MSC-certified seafood products we cleaning products that are free of the purchase are traceable throughout each stage of the harmful chemicals listed in the Green supply chain and separated from non-certified products, Key blacklist. Melco is working to obtain MSC Chain of Custody (CoC) certification. We are also providing MSC CoC training to While we already use many products that our supply chain and restaurant staff in early 2019 to help adhere to internationally recognized them make more sustainable seafood choices. Among ecolabels, our guidelines will expand the other topics, the training will address the principles scope of environmentally preferable behind certification, present current MSC Chain of products we purchase over time. Custody suppliers in the region, and culminate with a workshop on sourcing specific species. In addition to the types of chemical cleaning products we use, we are looking In 2018, we worked towards increasing the percentage at how technology can have an added of seafood we purchase from sustainable sources, and positive impact in our cleaning operations engaged a number of priority suppliers in supporting our as well. efforts. We look forward to reporting our progress once we have completed MSC Chain of Custody certification. No matter the solution implemented, we always ensure our colleagues are provided training on the proper handling, use, storage, and disposal of cleaning products. This training helps ensure that our employees are equipped with the knowledge to keep themselves and others safe.
SUSTAINABILITY & CSR REPORT 2018 ENVIRONMENT 51 52 RESPONSIBLERESPONSIBLE GAMING 53 R E S P O N S I B L E G A M T H E I N G I N G C O M M RESPONSIBLE S T E E R I T T E E GAMING
“ We will always be at the forefront of the industry’s EXECUTIVE CHAIRMAN & CEO 05 LAWRENCE HO responsible gaming efforts and work tirelessly to SPONSOR protect those in need of help.”
LAWRENCE HO, CHAIRMAN AND CEO EXECUTIVE EVP & CHIEF OFFICER HR / CSR CHAMPION AKIKO TAKAHASHI
THE INDUSTRY’S NEW LEADER IN RESPONSIBLE GAMING V P, COMMITTEE SVP, GAMING V P, SECURITY CO-CHAIRPERSONS OPERATIONS TABLES GAMES OPERATIONS ABOVE & BEYOND ABOVE Melco’s proactive, systematic approach towards Responsible Gaming (RG) results in industry-leading technology, and includes programs and initiatives that go OPERATIONS above and beyond mandated regulatory Chairman and CEO who is the Executive PROPERTY BUSINESS SECURITY & LEGAL REGULATORY PRESIDENTS DEVELOPMENT SURVEILLANCE requirements. RG is a top priority; Sponsor. COORDINATION instilling a culture of responsible gaming is inherent in everyone’s role, and we are The RG Steering Committee and its proud that our efforts have been awarded policies are global and apply to all and recognized internationally and locally. jurisdictions in which we operate, subject
We respect and fully cooperate with to local regulations. The Committee is CAGE, COUNT COMMUNI- LEARNING HR FINANCE governments and gaming regulators, and comprised of cross-functional members & CRÉDIT CATIONS ACADEMY work closely with them in the jurisdictions from diverse departments–both gaming where we operate. and non-gaming–including the Presidents COMMITTEE of all our properties. The Committee MEMBERS meets quarterly to review and approve C OMMITMENT FROM THE TOP strategic initiatives. Separate working CASINO CORP RISK & STRATEGY & TABLE STEERING COMMITTEE LED MOCHA committees meet more regularly to MARKETING INVESTIGATIONS ANALYTICS GAMES BY CHAIRMAN & CEO propose and implement initiatives.
The Melco Responsible Gaming Steering Committee was founded in 2008. It is personally led by Lawrence Ho, Melco’s INFORMATION GAMING TRANSPOR- VIP HOTEL/F&B TECHNOLOGY MACHINES TATION SERVICES
54 RESPONSIBLE GAMING SUSTAINABILITY & CSR REPORT 2018 55 ABOVE & BEYOND
AWARDS & TECHNOLOGY RECOGNITION & PROCESS
F ACIAL RECOGNITION
Socially Responsible Operator of the Year 2019 International Gaming Awards In 2016, Melco became the first operator in Asia to deploy real-time facial recognition security systems at every Business Award of Macau 2017 entrance to our gaming areas in Macau, assisting self- Corporate Social Responsibility (RG) exclusion. Top Gold award: The judging panel consisted of Melco has since been refining the technology and is business leaders and academics in the community. preparing to install the latest generation in its properties in both Macau and Manila in 2019. RG Knowledge Competition 2014 & 2016 Champions Melco is the only gaming operator in Macau to M ELGUARD - THE NEXT GENERATION win first place in two out of the three years this
ABOVE & BEYOND ABOVE government-led competition was held. MelGuard is the world’s first “Biometric Intelligence System” for RG, developed by Melco. The technology uses RG Train-the-Trainer Excellence Award biometric indicators to prevent restricted individuals— 2017 & 2018 including self-exclusions—from entering the casino floor, Melco trainers have won this award from the while complying with data privacy requirements. government-led Macau Responsible Gaming Association, in two consecutive years. For potential operations in Japan, our plan is to use TECHNOLOGY MelGuard in conjunction with the “MyNumber” card as & PROCESS a means of authentication for those seeking to enter the casino areas of the integrated resort. OUR SYSTEM FOR SUCCESS
EMPLOYEE EDUCATION Melco’s global RG strategy is divided into three focus areas to ensure that a comprehensive framework is implemented throughout the group.
COMMUNITY • Technology & process Innovating and implementing differentiated technology for RG.
• Community engagement Promoting RG through community engagement.
• Employee education Amplifying RG by educating employees.
56 RESPONSIBLE GAMING SUSTAINABILITY & CSR REPORT 2018 ABOVE & BEYOND
COMMUNITY AWARNESS AND ENGAGEMENT
In addition to meeting the Macau P ROMOTING POSITIVE GAMING ATTITUDES Government’s request for operators to display Responsible Gaming information to tourists, we go a step further to raise The objective of this micro-film was awareness across the local Macau to instil positive values in gaming community. practitioners, in particular the dealer segment of the workforce. Using a movie as a medium to engage audiences was P UBLIC SERVICE COMMERCIAL IN MACAU an innovative approach in RG, and we were delighted that 70 Melco colleagues Melco partnered with a local production volunteered as cast members. company in Macau to produce a television commercial raising awareness of RG. The Melco supported the project financially commercial was aired on Teledifusão de and helped with story production, Macau (TDM) during primetime viewing scripting and provision of shooting ABOVE & BEYOND ABOVE hours. Melco is the only casino operator locations. We also took care to ensure the in Macau to sponsor, produce and televise project contributed to the development a public service video on RG in this way. of Macau’s local creative arts industry. This microfilm received tremendous recognition from the community and the W OMEN AND RESPONSIBLE GAMING – Macau government. ‘ART OF LIVING’ WORKSHOPS
C OLLABORATION WITH UNIVERSITIES This series of workshops supports women AND RESEARCH INSTITUTES in the communities where we operate with information on RG. To encourage participation, the RG curriculum is Melco continues to support gaming interwoven with lifestyle topics such research and education. We donated as flower arrangement, gift wrapping, US$ 650,000 towards research of cooking, etc. The program was launched Responsible Gaming. We established a in 2018 and the first workshop was Research Centre with Macao Polytechnic conducted in partnership with a local non- Institute and donated to the University governmental organization (NGO). of Macau’s Institute for the Study of Commercial Gaming (ISCG).
58 RESPONSIBLE GAMING SUSTAINABILITY & CSR REPORT 2018 RESPONSIBLE GAMING 59 ABOVE & BEYOND
EMPLOYEE EDUCATION
Melco invests heavily in educating R ESPONSIBLE GAMING colleagues on RG, and training on RG is AWARENESS ACTIVITIES mandatory for every Melco colleague – gaming and non-gaming, management and non-management. RG awareness activities take place every 2-3 months in our resorts, and they are an essential part of engaging our colleagues. These activities have helped us win the government- RESPONSIBLE GAMING led RG knowledge competition twice. To date, over 65,000 TRAINING PROGRAM colleagues have taken part. These activities take place in our Heart-of-House, and aim to be interactive and fun. They are Our RG training program adopts a attended by our Chairman and CEO, Property Presidents and proactive and systematic approach, with other members of the management team. a system to ensure progressive levels of knowledge attainment. We take RG RG activities include : training seriously and its implementation - Roadshows, co-organized with the local aligns with our philosophy that RG is NGO Gaming Colleagues Home; everyone’s job— gaming, non-gaming, management and non-management. To - Annual knowledge competition; date, 69,326 RG training seats have been filled by Melco colleagues. - Annual photo competition; - Game booths.
L EADERSHIP FORUM
Over 600 Melco management colleagues participated in a Leadership Forum dedicated to Responsible Gaming. Speakers and guests included key government and RG educational experts. The guest of honor was Mr. Liu Bin, Director of Economic Affairs Department of the Liaisons Office of the Central People’s Government, Macau SAR.
LAWRENCE HO & EMPLOYEES
Employee RG booth
60 RESPONSIBLE GAMING SUSTAINABILITY & CSR REPORT 2018 RESPONSIBLE GAMING 61 62 PEOPLE 63 ABOVE & BEYOND
e have worked hard to build a culture of excellence. Our PEOPLE W premium levels of luxury and service are achieved through a highly “People are the lifeblood of this business. With structured training system and program 06 that are aligned with our brand service more than 8,000 people working at City of Dreams standards. Macau, I am always looking for ways to gain their perspectives and ideas to improve what we do and how we do it.” DAVID SISK, PRESIDENT, CITY OF DREAMS MACAU E LEMENTS INCLUDE:
ur people and our culture are Our compensation is competitive and Mandatory orientation: “Forbes” standards training: key drivers of our success rewards for performance. We compete on a required induction that our colleagues an extensive training module that increases O and the means through which culture as the differentiator. must attend before they start working in colleague awareness of what it takes to meet Forbes we create the highest-quality guest their respective departments. Five-star standards. experiences each day in our resorts. At “My first 90 Days” integration Mystery shoppers: ABOVE & BEYOND ABOVE Melco, we are committed to being an PRIDE IN THE employer that people choose to work ORGANIZATION program: a process which measures our standards. Our for and to stay with. It is our Chairman a proprietary program, customized for colleagues are trained as mystery shoppers to and CEO’s belief that if we care for our every department, which is a structured ensure high standards are being delivered. A value- colleagues, they will take care of our Melco prides itself as a curator of world- integration process to ensure necessary added benefit is that our colleagues become service guests. class entertainment that breaks new knowledge, skills and expectations are champions through experiencing our high standards ground. We position Melco as the place understood. We believe that a structured themselves. We have created a culture of excellence to build a career for those who wish to integration process results in better aligned with the aspirational brand work for the best. Our colleagues are retention and productivity. Technical skills training: promise of our premium luxury segment. very proud of working for a company with an essential foundation of practical skills and Our colleagues’ delivery of luxury service international recognition for its excellence Customized consumer brand & service knowledge. It is especially important in the context is achieved through structured and –from the Michelin-stars that adorn our training: of our hiring philosophy to “hire for attitude, systematic training programs. restaurants, to the Forbes 5-Star ratings a training program to ensure colleagues potential, and image, and train on skills.” achieved by Melco properties. understand our consumer brand – “what it To attract and retain high quality represents, what it means to me, and what colleagues, Melco competes on: do I do?” In 2018, we designed and rolled out the best-in-class Morpheus Service - Pride in the organization’s reputation Our global employee survey Brand training. and success conducted in 2016 by Willis - Career development opportunities Towers Watson indicated that Melco core service standards: a service training module emphasising a - Work environment where people feel 80% of our colleagues are proud valued, cared for, and recognized for consistent approach to foundation service of working for the company. performance behaviours. This is delivered as part of the - Quality of life mandatory orientation program. - Safe and healthy working conditions
64 PEOPLE SUSTAINABILITY & CSR REPORT 2018 PEOPLE 65 ABOVE & BEYOND
CAREER OPPORTUNITIES T HE LEARNING ACADEMY – THE FIRST IN-HOUSE ACADEMY IN MACAU
We believe that career direction and development opportunities are essential Melco’s Learning Academy embraces life- for attracting and retaining the best long learning. Since its inception in 2009, talent. The following examples illustrate 5,325 courses have been offered across our commitments in this area. our properties in Macau and Hong Kong and more than 518,000 seats have been filled by Melco colleagues. It provides I NTERNAL CAREER OPPORTUNITIES a curriculum across multi-functional tracks, including technical—gaming and non-gaming, sales and marketing, legal, Melco promotes career development service, language, finance, computer through opportunities in-house. Our application, HR, leadership, and lifestyle. policy mandates that most vacancies be internally posted, and where qualifications are equal, priority should be given to the F OUNDATION ACCELERATION internal candidate. Our hiring philosophy PROGRAM is “Hire for attitude, potential, and image, and train on skills”. This approach facilitates cross-functional career paths Melco’s Foundation Acceleration Program because it relies more on transferrable (FAP) is designed to enhance our traits than on prior experience of the job colleagues’ understanding of business specifics. perspectives beyond their own jobs. It is a placement program which can involve We want to retain our talented and short—or long-term assignments, or offer committed colleagues, so it’s important valuable insight into areas or skills outside they feel that they can grow their careers current roles and experience. without having to go to a competitor. In 2018, 40% of our vacancies were filled by Examples of FAP placements vary. Longer Melco colleagues. Since our inception, examples include dealer’s working in the company has offered 26,250 internal hotel operations for six months or a promotions and transfers. Hotel Front Office Manager spending a year rotating through a variety of cross- functional roles from Contact Centre, Reservations, Revenue Management, “We would much rather lose Food and Beverage, to Marketing and colleagues to ourselves than to Public Relations. Examples of shorter placements include groups of human a competitor.” Internal Career resources professionals spending one Policy Approach day each in the business units which they support, or specific assignments to stretch skills in areas such as public speaking.
SUSTAINABILITY & CSR REPORT 2018 PEOPLE 67 WORK ENVIRONMENT ‘VALUED & CARED FOR’
C OMMUNICATING AND LISTENING TO OUR COLLEAGUES
We have implemented a variety of formal and informal mechanisms to ensure that our colleagues have many ways to give us feedback. These include :
• Colleague surveys; H ARDSHIP • Frequent focus groups across various ASSISTANCE business functions and properties. In 2012-2018, 1,296 focus groups alone were BEST OFFICE INTERIOR MACAU (2017) BY INTERNATIONAL PROPERTY AWARDS organized for our Table Games Dealers, When our colleagues face extraordinary ABOVE & BEYOND ABOVE 92% of the suggestions were addressed; circumstances—such as medical problems or natural disasters, the company, our Chairman and C OLLEAGUE CAMARADERIE • “Meet management” sessions where CEO and colleagues come together to support one property presidents engage with another and alleviate hardships through donations. approximately 50 colleagues at a time We host a wide range of activities for to share business updates and invite colleagues to connect with one another. H OPE SCHOLARSHIP perspectives from the team; Since 2009, we have held more than 1,200 employee activities, an average of • Leadership Forums; Hope Scholarships are offered for those who are 10 events per month. With the opening facing extraordinary circumstances which would in 2018 of the Macau ESports Stadium, • Performance appraisals; otherwise prevent them from meeting the relevant we also hosted a tournament for our academic criteria. colleagues. • “Talk to Management” feature of our MelcoToday colleague mobile app; and H EART-OF-HOUSE • Colleague communications channels (newsletters, mobile app, social media, etc.). As a provider of premium luxury service, our Chairman and CEO believes that if we care for our colleagues, they will take care of our guests. We invest in the design of our “Heart-of-House,” what is typically called “back of house.” We call it “Heart-of-House” as it is analogous to how the heart is essential to our bodies, our colleagues are vital to our success.
68 PEOPLE SUSTAINABILITY & CSR REPORT 2018 PEOPLE 69 DIVERSITY IN BOARD OF DIRECTORS
QUALITY OF LIFE W OMEN IN INFLUENTIAL ROLES
• We have seven women represented on the three We know that family and work-life balance is important to our colleagues. boards overseeing Melco Resorts & Entertainment To foster this, Melco includes family in special events, and has implemented companies; the following programs:
• 25% of our Corporate Executive Committee is female;
AMILY EVENTS F • 38% of Senior Leadership are female;
• Family days: Events focused on families • FlexCompress: Depending on the • Close to 40% of general management are women. of colleagues. colleague role and business needs, this flexible working scheme gives an • “Heart-of-House” tours: Tours of Heart- opportunity for colleagues to work the of-House that reassure families and same number of hours but have more days friends that colleagues are working in an off per week. environment where they are valued and cared for. • Strawberry Life: Through this scheme,
ABOVE & BEYOND ABOVE Melco enables colleagues to work part- • Scholarships for family members: time, while staying dedicated to their Melco provides various scholarships primary commitment. They are eligible to encourage the concept of life-long for full-time benefits on a prorated basis. learning. These scholarships are provided for our colleagues and their immediate • Lifestyle Programs: We support personal families. development and lifestyle knowledge through programs offered by the Melco Learning Academy.
We survey tour participants to see how their attitudes to Melco FOSTERING A DIVERSE change. We were encouraged to WORKPLACE learn that before the tour: 59% rated Melco as a good/excellent Embracing diversity is one of Melco’s employer but after the tour this guiding principles. Melco’s workforce figure had jumped to: 91% includes a multitude of nationalities, so it is essential we cultivate a tolerant and harmonious workplace. As an equal opportunity employer, Melco does not W ORK LIFE BALANCE engage in discriminatory employment practices.
We operate three schemes which MARCELINA FRANCES emphasise and support work-life balance. CRUZANA YUYUCHENG
70 PEOPLE SUSTAINABILITY & CSR REPORT 2018 71 ABOVE & BEYOND
KEEPING OUR COLLEAGUES AND GUESTS SAFE
MELCO TOTAL RECORDABLE INCIDENT RATE Ensuring the safety of our colleagues, • Providing feedback to management on guests and contractors by integrating colleague OSH issues and concerns, and (TRIR) health and safety considerations into all implement measures to reduce accidents aspects of our business is a top priority at Melco. All new hires receive OSH induction 4.5 training and existing staff receive OSH Our safety culture is led by senior refresher training each year. Contractors 4 leadership, but all colleagues and are also required to go through an OSH 3.5 contractors are expected to take orientation session. responsibility for their own safety, the 3 safety of those around them and to Melco adopts a holistic approach to 2.5 constantly promote a safe and healthy safety in all public areas of our integrated work environment. resorts. External risk engineers perform 2
quarterly assessments of key public 1.5 We conduct frequent training and areas such as hotel rooms, entertainment ABOVE & BEYOND ABOVE monitoring, covering applicable topics attractions, all guest elevators, and 1 in accordance with our Occupational main entrances/exits of the integrated 0.5 2017 2018 Safety and Health (“OSH”) Policy and the resorts to ensure these areas satisfy 2016 OHSAS 18001 Standard. There are OSH international safety standards. We also 0 Committees at each of our operating maintain Emergency Response Teams properties and they meet once a month to at each property and collaborate with discuss safety management issues. OSH local emergency response teams on site- FOOD SAFETY Committee responsibilities include: specific plans.
• Reviewing OSH performance trends and We focus on prevention and strive for World-class dining is a central part of Because of these measures, we maintain a clean bill of health follow up on major OSH incidents and continuous improvement on all health and the guest experience we provide at our and safety across the board. 100% of our properties were accidents safety indicators as measured by standard resorts—Melco restaurants in Macau now assessed for food safety and we had no incidences of non- industry metrics and established goals. In command an unprecedented ten Michelin compliance resulting in a fine, penalty or warning in 2018. • Supporting OSH promotion and 2018, our OSHA Lost-Time Injury Rate was stars —so excellence in healthy and safe awareness activities, and assisting with 3.2, down from 3.7 in 2017 and 4.0 in 2016. food runs deep in our culture. Food the implementation of OSH education and We had no fatalities in 2018. quality and hygiene at all food outlets, training programs for guests and for our colleagues, are regularly assessed and audited by Melco • Coordinating OSH auditing and Food & Beverage department managers inspection activities and our highly trained Food Safety team, as well as external advisors such as the HACCP certification body and the Food Safety Centre of the Macao SAR.
72 PEOPLE SUSTAINABILITY & CSR REPORT 2018 PEOPLE 73 74 SOCIETYSOCIETY & COMMUNITY 75 SOCIETY & COMMUNITY
07 “Creating opportunities for people to grow and communities to prosper is a huge motivation for Melco.” AKIKO TAKAHASHI, EXECUTIVE VICE PRESIDENT, CHIEF OFFICER HR/CSR
e endeavor to make our CSR programs sustainable W by incorporating social and community issues in our business strategy. CSR PILLARS While volunteering and philanthropy are important elements of how we deliver, partnerships and collaborations drive our approach—with government, charities, educational institutes, and other community organizations.
Focused on the communities in which we operate, Melco creates unique and differentiated programs with emphasis customized to each community. Our CSR 1 - YOUTH 2 - EDUCATION 3 - WOMEN strategic pillars guide our focus. They are 4 - ENVIRONMENT 5 - CULTURE & HERITAGE 6 - RESPONSIBLE GAMING Youth, Education, Environment, Women, 7 - WHOLE PERSON DEVELOPMENT Responsible Gaming, Whole Person Development, and Culture & Heritage. departments, associations and other Our approach: organizations;
• Focus on the communities in which we • Develop unique and differentiated operate, with emphasis customized to programs; each community; • Incorporate societal needs with business • Bring proactive solutions to recognized strategy, for a sustainable approach; social issues; • Enhance economic prosperity of local MANILA • Partner and collaborate with local suppliers and SMEs. NGOs, charities, academia, government City Skyline
76 SOCIETY & COMMUNITY SUSTAINABILITY & CSR REPORT 2018 SOCIETY & COMMUNITY 77 ABOVE & BEYOND
AWARDS & RECOGNITION
CSR STEERING COMMITTEE V OLUNTEERISM OVERALL CORPORATE EDUCATION SOCIAL RESPONSIBILITY The importance of CSR is evidenced by the Enabling volunteering is a cornerstone of our corporate active involvement of our Chairman and social responsibility strategy. Melco is very proud of and 2018 2014 CEO in the CSR Steering Committee. It is inspired by our colleagues’ dedication to giving back. We are OUTSTANDING CSR - CARIDADE SOCIAL MACAU - also a regular agenda item for the Melco equally dedicated to thanking our volunteers through various MIRROR POST HONG KONG BACK TO SCHOOL board of Directors. The CSR Steering programs, including the annual Volunteer Recognition Event. Committee is comprised primarily of 2013 - 2017 local colleagues, and meets monthly to CORPORATE GOVERNANCE ASIA - WOMEN review proposed initiatives of the various BEST CSR working committees, which meet more MACAU GOVERNMENT RECOGNITION 107,631 colleague participants in our CSR frequently for implementation. 2013 OF LACTATION ROOM FACILITIES activities since 2007 MACAU BUSINESS AWARDS - The Committee engages with key CSR GOLD ENVIRONMENT stakeholders in the communities where we operate to ensure we are sensitive to their VOLUNTEERISM 2018 greatest needs. This engagement informs L OCAL SMALL AND MEDIUM ENTERPRISES GREEN KEY SUSTAINABILITY AWARD our unique focus in each community. 2018 PHILIPPINES DEPT OF ENVIRONMENT Melco helps local suppliers and small and medium-sized PHILIPPINES RED CROSS NATURAL RESOURCES RECOGNITION P HILANTHROPY DONATION DRIVE - PLATINUM enterprises to succeed. We partner with them to help them PHILIPPINES COAST GUARD understand our standards through activities such as Vendor 2018 AUXILIARY RECOGNITION Melco supports local communities Experience Tours, our standards, Business Matching Sessions, CARIDADE SOCIAL MACAU - by investing in their well-being. Our ISO and other workshops. Through better understanding of
TYPHOON HATO PHILIPPINES MUNICIPALITY OF contributions are outlined below: our specific needs, they are able to be a better provider of TERNATE, PROVINCE OF CAVITE products and services. 2016 RECOGNITION - MANGROVE PLANTING CARIDADE SOCIAL MACAU - CNY RICE DONATION CHARITABLE CONTRIBUTIONS 83% of all procurement YOUTH (USD) from 2016 - 2018 was from local RESPONSIBLE 2015 businesses and suppliers. 2008-2018 GAMING (RG) CARIDADE SOCIAL MACAU 2018 (CUMULATIVE) DARE TO DREAM 2019 45,725,206 10,728,954 INTERNATIONAL GAMING AWARDS - 3RD PLACE MOST IMPROVED SOCIALLY RESPONSIBLE OPERATOR FACILITY IN PARANAQUE, OF THE YEAR PHLIPPINES SCHOOL (LAND-BASED) * COMPRISED OF DONATIONS, SPONSORSHIPS, SAN ANTONIO ELEMENTARY SCHOOL IN-KIND DONATIONS AND PHILIPPINES FOUNDATION 2017 MACAU BUSINESS AWARDS - CSR GOLD FOR RG
78 SUSTAINABILITY & CSR REPORT 2018 SOCIETY & COMMUNITY 79 ABOVE & BEYOND
W HOLE PERSON DEVELOPMENT
PROGRAMS - Development of local people is a top 2008-2018 Cumulative MACAU priority for Melco. We focus on Whole Contributions for Programs in Person Development, a holistic approach Macau: $19.7M Melco’s culture of innovation produces which embraces a generalist career path signature and bespoke programs. beyond a technical or functional-only focus. The initiative sees embedded learning programs transcend traditional classroom training. This includes D ARE TO DREAM experiences that enhance personal growth and, fundamentally, create a stronger foundation for success in the future. Award-winning entertainment and • Late Dame Zaha Hadid – legendary architect hospitality are our differentiated offerings, known as the “Queen of the Curve.” Partnership These Melco programs support and deliver our service promise to Mainland Chinese people, and they afford us unrivaled access to with the Tertiary Education Services Office of development of local people for who account for the majority of Melco’s customers. Melco world class artists. In partnership with Macau Government; management roles. In 2008, 38% of colleagues learn about China’s economy, China’s premium leading educational institutions, we managers in Macau came from the local luxury market, Chinese history and “Xi Jingping Thought” on connect them to local young people for • Barney Cheng – named one of the 25 most community; today, that figure is over 80%. visits and learning programs taught by an eminent professor once-in-a-lifetime opportunities that they influential designers in fashion by Forbes. from the world-renowned Tsinghua University. never dreamed possible. Thus “Dare to Partnership with Macau Productivity and ABOVE & BEYOND ABOVE Back to school Dream” was born. Technology Transfer Centre (CPTTM); and Breast cancer awareness First launched by Melco in 2010, the in- Internships at the maestro organization • Alain Ducasse and Pierre Hermé – world- house high school diploma program was To increase awareness of breast health, Melco partners with are provided to winners who are selected renowned culinary masters. Partnership with the conducted in partnership with the Luso- the Organization for Oncology and Translational Research, the by the maestro and/or their team. Melco Institute for Tourism Studies. Chinese school Luis Gonzaga Gomes, and Worker’s Medical Clinic, and the Women’s General Association pays for scholarships, or internships and the Education and Youth Affairs Bureau of Macau. These organisations provide free breast cancer travel costs for the winning students. (DSEJ). This program was developed screenings each year for colleagues and women from the to address the issue of people exiting community. We are proud of the world-renowned education - particularly unwillingly—to artists who have shared their expertise The House of Dancing Water pursue a job. Lactation rooms and given so much inspiration, and we ‘backstage journey’ is a learning thank our partners for their ongoing program that has involved nearly “Melco YOU-niversity” program To support nursing mothers at work, Melco was the first support. 600 students and professors from gaming operator in Macau to provide fully equipped lactation Melco partnered with Edinburgh Napier rooms across all our global operations. • Yundi Li – international piano maestro. universities in Macau. In 2018, University to announce the development Partnership with the Cultural Affairs fashion design students from the of the Melco YOU-niversity for local Teaching children values Bureau of the Macau Government; Macau Productivity and Technology employees who were yet to achieve a Transfer Centre came to learn about university degree. We created the “Teaching Children Values” initiative to promote • Franco Dragone – producer and creative costume design and wardrobe volunteering among children and to cultivate empathy for those director of the award-winning “The House operations—and like many others Splendors of China less-privileged. Volunteer activities have included tree planting of Dancing Water.” Partnership with and monthly visits to the elderly through the “Show Your Kind Macao Polytechnic Institute; in the program, gained valuable The “Splendors of China” is a learning Heart by Holding Hands” program, where children received insights and exposure to careers in program about China’s cultural heritage, guidance from NGOs on how to communicate with the elderly. entertainment productions. We plan history, and its modernization. It helps to extend the positive social and our colleagues to better understand environmental impact of this and other shows in the coming years.
80 SOCIETY & COMMUNITY SUSTAINABILITY & CSR REPORT 2018 SOCIETY & COMMUNITY 81 ABOVE & BEYOND
PROGRAMS - JAPAN
IMONO ROBOTO “ 着物XきものX KIMONO” PRESERVING THE K LEGACY, CREATING THE FUTURE
Kimono embodies Japanese culture, To honor the artisans and their traditions, and lifestyle. The popularity spectacular works, the exhibit “Kimono of the Kimono has been sadly waning in Roboto” was launched in November 2011-2018 Cumulative recent years, which in turn has threatened 2017. The exhibit manifested the vision Contributions for Programs the livelihood of artisans involved in the of “Preserving the legacy and creating in Japan: $6.7M traditional trade of making Kimonos. the future.” The exhibition was also Given that the creation of fabrics for such supported by contemporary music, and garments is often an art passed down video from artists including the 15-time from one generation to the next, the entire Grammy nominated Icelandic artist Bjork. existence of the Kimono trade is under threat. Its demise would be a major loss ABOVE & BEYOND ABOVE for Japanese culture. D ARE TO DREAM DESIGN AWARD - JAPAN
W ORLD-FIRST COLLECTION OF 13 MUSEUM-QUALITY KIMONOS The purpose of the “Dare to Dream Design Award” was to encourage the use of kimono in designs. Melco partnered with Junko Koshino Inc., one of In collaboration with Kyoto prefecture and Japan’s most highly-acclaimed fashion designers, supported by Kyoto Cultural Association, and the award program was launched during Tokyo Melco’s Kimono project gathered local Designers’ Week. artisans from around Japan to create a world first collection of 13 museum quality Nine internationally-renowned designers and kimonos. These included the Japanese artists comprised the panel of judges, including Living National Treasures and Imperial Yoshikazu Yamagata, Junko Koshino, Yasuhiro Family-appointed artisans. Mihara, Tamae Hirokawa, Masaya Kushino, Commissioned in 2013, the kimonos Asami Kiyokawa, Toshiyuki Inoko, HDMI (Human were completed in a process that took Dwelled-In Monitor Inside), and Ross Lovegrove. four years and used weaving techniques unseen in over a century. These included The finalists for “Dare to Dream” received an the ‘Tabenoshi Bunyou Furisode’ by Chiso, internship with JUNKO KOSHINO Inc. and were a 460-year-old shop that uses kyoyuzen given a special booth in the industry renowned dyeing; and ‘Keicho Momoyama Furisode “Rooms30,” Japan’s largest fashion and design Matsukawa Bunyou’ by Fujii Kan, creators exhibition. for the imperial household.
82 SOCIETY & COMMUNITY SUSTAINABILITY & CSR REPORT 2018 SOCIETY & COMMUNITY 83 PROGRAMS PHILIPPINES
S OAP FOR HOPE H EADFUL OF DREAMS
City of Dreams Manila is the first Manila colleagues volunteered their integrated resort to participate in time to tutor students of San Antonio the “Soap for Hope” program in the Elementary School. The school was Philippines. This award-winning global recognized with 3rd place in The Most program cooperates with hotels to Improved Facility category for all schools eliminate soap waste by hygienically in the Paranaque region. reprocessing used soap into new soap bars and donating them to various charitable institutions. In 2018, we reprocessed over 5,000 used soap bars into new bars. ABOVE & BEYOND ABOVE
CITY OF DREAMS MANILA RUNS A NUMBER OF OTHER CSR PROGRAMS TO ENGAGE THEIR LOCAL COMMUNITY INCLUDING BUILDING DREAMS, GROWING DREAMS AND MORE.
84 SOCIETY & COMMUNITY SUSTAINABILITY & CSR REPORT 2018 SOCIETY & COMMUNITY 85 DISASTER RESPONSE
We are committed to sharing our resources to help communities in the aftermath of natural disasters.
T YPHOON HATO
Typhoon Hato in 2017 was the most and construction services team over two days, to devastating disaster to hit Macau in help repair damaged infrastructure, ensure public the last 50 years, resulting in the loss safety and support beach clean-up efforts. of human life and catastrophic damage to buildings and infrastructure. Within the first 24 hours following the disaster, J APAN TOHOKU EARTHQUAKE Melco responded to support and restore
ABOVE & BEYOND ABOVE the community. Close to 3,500 Melco volunteers joined government-led clean In 2011, a magnitude-9 earthquake shook north- up efforts. The volunteers cleared debris eastern Japan, causing widespread devastation, from the streets and distributed 1,200 including the destruction of more than 120,000 meal boxes and 10,000 bottles of water. buildings. Melco donated to the relief efforts. This Melco electricians and carpenters helped included financing short morale-boosting trips for restore power to over 40 local businesses, 300 disaster-affected young students to Okinawa and allowing them to return to operation. Osaka. Within three days, we announced a relief fund for both the community and colleagues of US$3.75 million, including a DISASTER RELIEF SUPPORT personal donation from Melco’s CEO and Chairman. Over 1,900 colleagues received (IN USD) funds.
JAPAN $1.68M Melco was appreciated and recognized by the community for its efforts, with local online HR magazine recognizing Melco as MACAU AND MAINLAND a “Best Employer.” $5.15M CHINA
Fortunately, Typhoon Mangkhut in September 2018 was less severe than the $6.83M previous year’s typhoon. We dispatched a TOTAL team of 230 colleagues from our property
86 SOCIETY & COMMUNITY SUSTAINABILITY & CSR REPORT 2018 88 GOVERNANCEGOVERNANCE & ETHICS 89 GOVERNANCE & ETHICS
08 “Our business success depends on building productive relationships based on honesty, integrity and mutual trust.”
RAYMOND HO, VICE PRESIDENT, CORPORATE & GOVERNANCE COUNSEL
rust is at the heart of our business. T It underpins our relationships with OUR GUIDING our customers, stakeholders, and regulators and is the foundation of our PRINCIPLES licence to operate. To build this trust, we are committed to the highest standards of & VALUES governance and ethical conduct.
We strive to exceed requirements, whether from commercial practice or local laws. Our colleagues are central to this and We are a law-abiding corporate citizen. we consistently engage them on the standards expected through training and We are innovative thinkers. Melco’s Code of Business Conduct & Ethics. We have courage.
This desire to do better is shown in our We embrace diversity. Guiding Principles and Values and in our mission: “to shape the future of gaming We value our colleagues, customers, and entertainment in Asia.” and community.
FORBES FIVE STAR
Nuwa - City of Dreams
90 GOVERNANCE & ETHICS SUSTAINABILITY & CSR REPORT 2018 GOVERNANCE & ETHICS 91 ABOVE & BEYOND 92 GOVERNANCE ÐICS impact is part of our culture, and this into roles where theycanhavegreater Promoting talented,capablepeople new insightintorisksandopportunities. greater understanding of our guests, and business. Through diversity we gain a Diversity atalllevelsofour isimportant Committee • NominationsandCorporate Governance • AuditandRiskCommittee Committee • Compensation committees. bythreeThe board issupported board committees Directors, whichleadandparticipatein • Four Non-Executive Independent serving asdirectors • TwoNon-ExecutiveDirectors currently • OneExecutiveDirector The board hassevenmembers: that appropriate controls are inplace. determining related risksandensuring and reporting, and for evaluating and for ourSustainability&CSRstrategy programs. Theboard isresponsible including oursustainabilityandCSR company strategy and operations, Our board oversees ofthe allaspects AND RISKMANAGEMENT C ORPORATE GOVERNANCE policies andtaxstrategy,policies seeourwebsite. Directors committees,financialaccounting andboard directors, andcharters of composition oftheboard andpracticespolicies includingtheelectionof For more information onourcorporate governance corporate andproperty boards. Senior Leadership. We havesevenwomenacross our Corporate ExecutiveCommitteeand38%ofour employer.opportunity Women makeup25%ofour is reflected anequal inourcommitmenttobe so wecontinuetoimprove. with theircolleagues.Thisnetwork alsoshares ideas makes theprojects andpromotes happen awareness and theirenthusiasm.Anetworkofstaffchampions butwealsoneedourcolleagues Process isimportant, and corporate functions. monitored across theorganization byourproperties programs are thenresourced, implementedand oversight overoursustainabilityprograms. The which is authorized by the board to have overall Nominations andCorporate GovernanceCommittee, Executive SustainabilityCommitteereports tothe Committees report quarterlytotheboard. The GamingSteeringThe CSRandResponsible priorities,andgoals. setting policies, governance, ensuring funding and resources, and stakeholder concerns,establishinginternal The committeesare responsible for assessing three complementarySteeringCommittees. Our Sustainability&CSRprograms are ledby GOVERNANCE S USTAINABILITY ANDCSR SUSTAINABILITY &CSR REPORT 2018 our ChiefSustainability Officer. goals. Thecommitteeischaired by reporting progress against our properties, andmeasuring promoting projects across our groups practices, thatidentify best workingincluding sponsoring 1 sustainability initiatives Leads environmental WORKING GROUPS SUSTAINABILITY NOMINATIONS & SUSTAINABILITY &CSRGOVERNANCE STRUCTURE AT MRE GOVERNANCE CORPORATE COMMITTEE COMMITTEE EXECUTIVE SUSTAINABILITY OFFICER CHIEF PROPERTIES ANDCORPORATE FUNCTIONS EMPLOYEE CHAMPIONNETWORKS from across thebusiness. is attendedbyseniormanagers Officer HumanResources/CSR and committee ischaired byourChief and communityengagement.The including developingourpeople 2 Responsibility initiativesResponsibility Oversees Social WORKING GROUPS CSR STEERING COMMITTEE BOARD CEO CHIEF OFFICER HR /CSR Committee. GamingWorkingResponsible thecross-functionalsponsoring approving strategic initiativesand strategy includingreviewing and RESPONSIBLE GAMING STEERING COMMITTEE 3 WORKING GROUPS Responsible GamingResponsible Accountable for our 93 ABOVE & BEYOND 94 GOVERNANCE ÐICS Report (USFormReport 20-F). our businessandoperations seeourAnnual For more information onrisksrelating to basis. Audit and Risk Committee on a quarterly Management, andpresents formally tothe mitigation measures, withExecutive impacts andrisks, and their potential regularly discussescurrent andemerging identification andmanagement.OurCRO properties activelyinvolvedinrisk from different businessfunctionsand processes, withcolleaguesatalllevels management ispartofourday-to-day to make ourERMapproach work.Risk We involved needourcolleaguestobe by ourChiefRiskOfficer(CRO). and RiskCommitteeledoperationally is overseen bytheboard through theAudit evaluate, andtreat risks.OurERMprocess systematic approach toidentify, analyse, aligned to ISO31000:2018 to provide a objectives, includingsustainability. Itis impact ourstrategic andoperational framework managesallriskswhichmay Enterprise RiskManagement(ERM) Risk isininherent inourbusiness.Our R ISK MANAGEMENT SUSTAINABILITY &CSR REPORT 2018 ABOVE &BEYOND THE MORPHEUSHOTEL GOVERNANCE ÐICS by ZahaHadid 95 PRIORITY SUSTAINIBILITY & CSR TOPIC AREAS TOPIC BOUNDARY BY SCOPE AND BOUNDARY IMPACTS IMPACTS OCCUR OCCUR PRIORITY INSIDE OUTSIDE SCOPE OF TOPIC TOPIC AREA MELCO MELCO
WHAT MATTERS MOST • CORPORATE AND SUSTAINABILITY & CSR GOVERNANCE • CODE OF CONDUCT OUTLINING EXPECTED BEHAVIOURS, ETHICS AND PRACTICES & TRAINING, INCLUDES ANTI CORRUPTION To do better, we need to focus on what build these measures into business plans, INTEGRITY • DATA SECURITY & CUSTOMER PRIVACY matters most. To understand where our goals, and targets so we can monitor and • REGULATORY COMPLIANCE Sustainability & CSR impacts lie, we report on our progress. These risks are • RISK MANAGEMENT AND EMERGING ISSUES TRACKING developed a new framework in 2018 to not just Sustainability & CSR risks, but
help us consistently identify and assess business risks. So, they are considered • COMMUNITY ENGAGEMENT & INVESTMENT PROGRAMS COMMUNITY material topics across the business. By by the CRO and are included in Melco’s • PHILANTHROPY & VOLUNTEERISM ENGAGEMENT & repeating this review regularly, we will overall risk register and priorities, which • CULTURE & HERITAGE INVESTMENT continue to manage the Sustainability & are periodically reported to the Audit and • DISASTER RESPONSE CSR issues that matter most to us. Risk Committee. DIVERSITY & • DIVERSE WORKFORCE & LEADERSHIP TEAM From staff and investors, to communities, To understand our broader impact, we INCLUSION academia, government and non- have begun mapping our top priorities governmental organizations, we speak to against the UN Sustainable Development ENERGY & • GHG EMISSIONS REDUCTION internal and external stakeholders about a Goals. This will help us see where it CLIMATE CHANGE • ENERGY CONSUMPTION – RENEWABLE & NON-RENEWABLE wide range of Sustainability & CSR topics makes sense to further focus our efforts through our day-to-day operations. We for maximum impact. This mapping is
ABOVE & BEYOND ABOVE listen and work hard to be responsive to included in the GRI Content Index and we • MATERIALS USE EFFICIENCY their needs and concerns. will be further developing this assessment MATERIALS USE • SUSTAINABLE SOURCING in 2019. & WASTE • NON-HAZARDOUS SOLID WASTE To provide the broad range of perspectives • FOOD WASTE / PLASTIC WASTE we needed for our 2018 materiality assessment, we interviewed senior • TECHNOLOGY & PROCESS RESPONSIBLE managers and experts across the business • COMMUNITY ENGAGEMENT GAMING who engage with various external and • EMPLOYEE EDUCATION internal stakeholders. We also reviewed
sustainability data and researched • GUEST HEALTH & WELLBEING SAFETY industry trends, standards and best • COLLEAGUE HEALTH, SAFETY & WELLNESS practices, investor concerns, and evolving
scientific knowledge. The outcome of SUSTAINABLE • INCREASING SHAREHOLDER VALUE WHILE MAXIMIZING the assessment highlights our priority ECONOMIC OTHER STAKEHOLDER BENEFITS Sustainability & CSR impact areas. GROWTH
We are continuously striving to improve. • COMPETITION FOR TALENT Each key impact presents both risks and TALENT • LOCAL HIRING opportunities. Colleagues have taken ATTRACTION • COLLEAGUE TRAINING & DEVELOPMENT responsibility for each of these risks & RETENTION • WORK LIFE BALANCE and opportunities and have developed • INDIRECT ECONOMIC IMPACT measures to mitigate the risks and maximize the opportunities. We will
• WATER RECYCLING & REUSE • WASTEWATER EFFLUENTS WATER USE • REDUCING/REUSING / RECYCLING WATER
• WASTEWATER COMPLIES WITH REGULATORY LIMITS
96 GOVERNANCE & ETHICS SUSTAINABILITY & CSR REPORT 2018 97 S TAKEHOLDER ENGAGEMENT
Our business affects lots of people. We care about what matters to our stakeholders. Their opinions play a vital role in defining our sustainability MELCO PRIDES priorities. How we respond to their concerns builds trust in our business. Our ITSELF IN stakeholders’ concerns are wide ranging. Some stakeholders, such as investors and IMPROVING governments, are interested in a variety of sustainability topics. Others, such as local CUSTOMER communities and business partners, may only be interested in a single issue. EXPERIENCES
We connect with stakeholders regularly AND VISITATION to discuss matters that interest them, using a variety of methods including BY
ABOVE & BEYOND ABOVE guest satisfaction surveys, surveys and focus groups to ensure we are actively LEVERAGING listening to the needs of our colleagues, ongoing engagement with local regulators STAKEHOLDER and NGOs to identify and address the greatest needs in the communities where FEEDBACK we operate, close collaboration with ACROSS MANY academic institutions and regulators on responsible gaming topics, and more. CHANNELS.
We collect feedback through focus groups, face-to-face surveys, various online platforms, and regularly through our employees. Melco Resorts attained a record- breaking 85 stars at 2019 Forbes Travel Guide and Forbes 5-Star and Michelin experiences, which is attributed to knowing our guests needs and desires, and constantly exceeding their expectations.
98 GOVERNANCE & ETHICS SUSTAINABILITY & CSR REPORT 2018 GOVERNANCE & ETHICS 99 ABOVE & BEYOND 100 GOVERNANCE ÐICS harassment employment practice andsexual • Prohibition againstanydiscriminatory environment andcorporate culture • Creation ofaharmoniousworkplace • Moneylaunderingandfraud • Confidentialandproprietary information ongiftsandentertainment policies and corruption, including• Bribery • Conflictsofinterest • Faircompetition retaliation discrimination, noharassment, andnon- • Employment practices, including non- subcontractors. on: It outlines our policies directors, officers, colleagues,agentsor whethertheyaresubsidiaries tobehave, atalloursitesand allourpeople expect outlineshowweEthics (theCode) of Business Conduct Ourand Code and internationallaws. nationalconduct and comply with local, to meet the highest standards of ethical and mutualtrust.We workwithcolleagues relationships basedonhonesty, integrity on buildingoperate, productive depend Our business success, and licence to E THICS and implementpreventive measures. monitor compliance, evaluate risk areas with the Ethical Business Legal Adviser to Ethical Business Liaison Officers work government officialsandotherpartners. entertainment, aswellinteracting with on givingandreceiving gifts,corporate includes, for example, providing guidance staff enquiriesontheProgram. This understanding lawsandanswering local areoperating locations responsible for Business LiaisonOfficers atallourmain for The Ethicalthe Code their location. guidance tohelpcolleaguesinterpret legislation varies.Wewide, local provide and ProgramWhile the Code are company- and theChiefRiskOfficer. effectiveness byinternalaudits supported andforthe Code, ensuringitsongoing includingcorporate governancepolicies for reviewing andamendingourkey Governance Committee has responsibility The NominatingandCorporate laws. anti-corruptioncompliance withlocal (the Program) setstherequirements for Our EthicalBusinessPractices Program SUSTAINABILITY &CSR REPORT 2018 parties andtherelated contracts. audit theactivitiesofhigher-risk counter- including contract clausesthatallowus to can taketoreduce risks,for example flags and role-specific actionsindividuals the legalreasons theProgram, behind red- contract approvals. DTRT training covers and corruption,suchasprocurement and riskofbribery carry ahigherorpotential employees inkeybusinessfunctionsthat provides a refresher for management and • DoTheRightThing(DTRT) training: the content to indicatetheyunderstands andagree to andsignaCertificateofCompliance Code They mustacknowledgetheyreceived the eachyear.to theothercorporate policies andnotifiedofthechangessent theCode their career withMelco,allcolleaguesare reinforce therequirements throughout orientation within30daysofstarting. To must complete corporate governance requirements from theverystartthey all ouremployeesunderstand our briefing andannualcertification:ensure • New-startercorporate governance andtheProgram:the Code colleagues understand theirresponsibilities, We runthree initiativestohelpour 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2016 2017 particularly our anti-corruption policies andprocedures.particularly ouranti-corruptionpolicies government and partnerswith local regarding our ethics and tocompletethetraining Weexpected soon. alsocommunicate them completedthetraining. The remaining colleaguesare DTRT training giventheirroles andresponsibilities. 98%of In 2018, more than 2,800 colleagues were required to complete Academy platform andinfacetotraining sessions. available inmultipleformats, suchasthrough ourLearning To make it easier, we make this information and training reporting obligationsundertheProgram. and acknowledgetheirunderstanding oftheProgram andtheir personnel suchasseniorexecutivesanddirectors toconfirm • Annual certification under the Program: requires our key 2018 In2018,98%ofrequired employeescompleted‘Do the RightThing’Training. 2016 -2018 ANNUAL ETHICSTRAINING COLLEAGUES WHOCOMPLETED MANILA MACAU GOVERNANCE ÐICS 101 ABOVE & BEYOND S Adviser. resources, ortheEthical Business Legal concerns withtheirmanager, human • We encourage colleagues toraise Internal AuditandLegal. managementmembers fromindependent the Human Resources team and selected thirdindependent partyandmonitored by blowing hotlinewhichismanagedbyan • We provide ananonymous whistle- properties: on our intranet and are displayed at our in avarietyofways,whichare available retaliation. Colleaguescanraise concerns they canraise concernswithoutfear of difficult. We protect our colleagues so Wethe code. understand thiscanbe a violation ofif they see or suspect We up wantourcolleaguestospeak HARING CONCERNS SUSTAINABILITY &CSR REPORT 2018 additional local requirements.additional local andISMSalongwithanyprivacy policies worktoimplementourdatalocations Data Protection Officers inall ourmain Data Protection Act. we operate, includingtheMacauPersonal regulations inthejurisdictionswhich the requirements ofthedataprivacy To protect dataprivacy, wemeetorexceed needed. toprovideexternal experts guidancewhen practice,systems follow best weengage processes andprotocols. To ensure our risk assessments and audits to check have controls ateach layer with regular Our “layered” securityapproach meanswe Data andInformation Securitypolicies. byour Cybersecurity andis supported holding thiscertificationsince2009.This of ISO27001,withourMacauoperations system (ISMS)meetstherequirements global information securitymanagement our business, including data security. Our Melco’s highstandards applytoallpartsof privacy. highest standards ofdatasecurityand data. In return, we are committed to the partners alltrustuswiththeirpersonal Customers, colleagues,suppliers and D & SECURITY ATA PRIVACY
hacker tactics. We alsoworkwithothers toshare information onthreats and require allITproviders complywiththeISO27001standard. any issuestovendors iftheydonotmeetourhighstandards and selection processes followed byon-goingtesting. We highlight requirements are includedinrelevant partnerandsupplier partner andsuppliersystemsprocesses. Cybersecurity Security risks donot end with our systems but extend to improve awareness andidentifyifadditionaltraining isneeded. hacking emails.We continuallyrunphishingcampaignsto on cybersecurity when colleagues start to help them identify atargetColleagues canbe for hackers. We provide training release furtherguidanceonpersonal dataretention. their region. Thisisanongoingprocess andin2019wewill guidelines tocolleaguesondataprotection atMelcoandin andourcorporate governancepolicy,Code andwehaveissued and data protection. Information security is included in the roleOur colleagues havean important in information security W S substantiated complaintsin2018. We hadnodatabreaches ofsignificancenordidwereceive any TAFF TRAINING&AWARENESS ORKING WITHPARTNERS GOVERNANCE ÐICS
103 104 ABOUT MELCO 105 OUR OPERATIONS
ABOUT MELCO 09
elco Resorts & Entertainment Limited (“Melco”) is a developer, owner and operator of casino gaming and We own and operate M entertainment casino resort facilities in Asia. We are headquartered in Hong Kong, China and listed on the NASDAQ three Forbes 5-Star as “MLCO”. Our largest shareholder, Melco International hotels in Macau — Development Limited, is listed on the Main board of The Stock Altira Macau, Nüwa Exchange of Hong Kong Limited and is substantially owned and
ABOVE & BEYOND ABOVE and Studio City’s Star led by Mr. Lawrence Ho, our Chairman, and CEO. Tower — and received 11 Forbes 5-Star and We currently have three major casino-based operations in four Forbes 4-Star Macau (City of Dreams, Altira Macau and Studio City), and ACTUAL GFA3 ACTUAL GFA3 ACTUAL GFA3 ACTUAL GFA3 ACTUAL GFA3 non-casino based operations in Macau at our Mocha Clubs. ratings across our 6.8 million 5.1 million 1.1 million 131 700 1.5 million We also have a casino-based operation in the Philippines, City properties in 2018 of Dreams Manila. (SQ. FT) (SQ. FT) (SQ. FT) (SQ. FT) (SQ. FT)
We offer luxury, world class fun and unforgettable experiences to our visitors and guests. But we strive to go further. Whether it is setting a new benchmark for luxury in Macau with Morpheus, 2170 1600 230 950 the recently completed phase of City of Dreams, holding the N/A most Michelin stars of any integrated resort operator in the We won the “Gaming GUEST ROOMS GUEST ROOMS GUEST ROOMS GUEST ROOMS SUITES SUITES SUITES SUITES world, or introducing pioneering entertainment in ‘The House Operator of the Year, & VILLAS & VILLAS & VILLAS & VILLAS of Dancing Water,’ a truly unique show that has become one of Australia & Asia” Macau’s entertainment landmarks and changed the game for award at the 2018 Asia’s leisure and entertainment industry. International Gaming 476 292 104 300 Awards. GAMING TABLES GAMING TABLES GAMING TABLES GAMING TABLES Through our dedication to providing world class luxury, 1336 GAMING innovative products and services, and partnerships with 724 957 129 MACHINES 1929 globally renowned brands—we combine them to deliver the best GAMING GAMING GAMING GAMING MACHINES MACHINES1 MACHINES MACHINES2 entertainment experience to customers across Asia.
More information on our operations can be found in our annual report. 1 INCLUDING MOCHA CLUB AT ALTIRA 2 INCLUDING 129 GAMING MACHINES AT ALTIRA 3 GROSS FLOOR AREA (GFA) IS THE TOTAL FLOOR AREA INSIDE THE BUILDING ENVELOPE, INCLUDING THE EXTERNAL WALLS AND BALCONIES.
106 ABOUT MELCO SUSTAINABILITY & CSR REPORT 2018 107 ABOVE & BEYOND
OUR WORKFORCE OUR ECONOMIC IMPACT
2018 WORKFORCE ECONOMIC VALUE GENERATED & DISTRIBUTED (IN THOUSANDS OF US$)
21,413 EMPLOYEES (2016-2018) - FOR THE YEARS ENDED 31 DECEMBER
MEN : 52% 2016 2017 2018
WOMEN : 48% TOTAL REVENUES $4,519,396 $5,284,823 $5,158,509
TOTAL OPERATING COSTS $4,156,280 $4,677,211 $4,531,673 & EXPENSES
ABOVE & BEYOND ABOVE 2018 2017 2016 OPERATING INCOME $363,116 $607,612 $626,836
CORPORATE AND CENTRALIZED SERVICES CASH AND CASH 676 636 712 $1,702,310 $1,408,211 $1,436,558 (INCLUDING HK, MACAU & EQUIVALENTS JAPAN)
DIVIDENDS PAID PER FEMALE 294 285 313 $0.2408 $0.5604 $0.1867 SHARE
MALE 382 351 399
TOTAL EMPLOYEES 20,248 19,609 21,413 MACAU PROPERTIES (INCLUDING COD, STUDIO 15,099 14,079 15,171 CITY, ALTIRA AND MOCHA COMMUNITY INVESTMENTS - - $11,117,858 CLUBS) (CHARITABLE GIVING)
FEMALE 7,352 6,873 7,345
MALE 7,747 7,206 7,826
MANILA PROPERTY 5,638 4,894 4,365
You can learn more about our ownership, FEMALE 2,552 2,332 1,996 organizational structure and financial MALE 3,086 2,562 2,369 performance on our Investor Relations webpages. TOTAL 21,413 19,609 20,248
108 ABOUT MELCO SUSTAINABILITY & CSR REPORT 2018 ABOUT MELCO 109
112 GRIGRI CONTENT INDEX INDEX 113 RELEVANT MELCO UNSDG/ FOCUS ALIGNMENT WITH TARGETS AND MELCO PROGRAMS AND INITIATIVES AREA UNSDG TARGETS PROGRESS
WASTE MANAGEMENT • REDUCE GLOBAL • ZERO WASTE RESORTS • PLASTICS ELIMINATION, INCLUDING COLLEAGUE FOOD WASTE BY 2030 TRAINING GRI CONTENT SDG 12 RESPONSIBLE CONSUMPTION AND • ACHIEVE • SIGNATORY TO NEW • ONSITE WATER DISPENSERS TO REDUCE PLASTIC PRODUCTION ENVIRONMENTALLY PLASTICS ECONOMY BOTTLES SOUND MANAGEMENT GLOBAL COMMITMENT INDEX OF CHEMICALS • ECOBINS AND HOUSEKEEPING STAFF TRAINING
• REDUCE WASTE • COMPOSTING AND FOOD AUDITS 10 GENERATION THROUGH PREVENTION, • SOAP FOR HOPE PROGRAM REDUCTION, RECYCLING AND REUSE • LIKHAYA SOCIAL ENTREPRENEURSHIP PROGRAM
• REUSE OF PLAYING CARDS IN MANILA
ENERGY • BY 2030, INCREASE • ALL RESORTS CARBON • ENERGY-EFFICIENT LED LIGHTING AND his content index covers the Global SUBSTANTIALLY THE NEUTRAL BY 2030 PHOTO-SENSORS IN OUTDOOR LIGHTING T Reporting Initiative’s Sustainability SDG 7 AFFORDABLE SHARE OF RENEWABLE Reporting Standards and Disclosures AND CLEAN ENERGY ENERGY IN THE GLOBAL • 100% OF THE • BUILDING MANAGEMENT SYSTEMS THAT OPTIMIZE ENERGY MIX ELECTRICITY ACROSS EFFICIENCY found in Melco’s Sustainability & CSR OUR OPERATIONS Report, 2018 Annual Report and company • BY 2030, DOUBLE PRODUCED FROM OR • SOLAR PHOTOVOLTAIC PANELS AT CITY OF website. This report has been prepared in THE GLOBAL RATE MATCHED AGAINST DREAMS MACAU AND STUDIO CITY WITH CAPACITY OF IMPROVEMENT IN GENERATION FROM TO GENERATE NEARLY 7.7 MILLION KWH OF ENERGY accordance with the GRI Standards: Core ENERGY EFFICIENCY RENEWABLE SOURCES PER YEAR ABOVE & BEYOND ABOVE Option. FROM 2018-2030 • PROMOTE INVESTMENT • BETWEEN 2016 AND 2018 REDUCED ENERGY IN CLEAN ENERGY CONSUMPTION IN OUR EXISTING OPERATIONS BY INFRASTRUCTURE AN AVERAGE OF 10% ACROSS OUR RESORTS SUSTAINABLE DEVELOPMENT GOALS • SOURCED 100% OF OUR ELECTRICITY FROM The following four goals represent the RENEWABLES IN 2018, VIA PURCHASE OF I-RECS AND OTHER RENEWABLE ENERGY INSTRUMENTS, clearest and strongest connections to HELPING TO REDUCE OUR ABSOLUTE MARKET-BASED To understand our broader impact, we our most established Sustainability & EMISSIONS BY 95% SINCE 2016 have also mapped our top priorities against CSR initiatives and targets, and where we the UN Sustainable Development Goals have an opportunity to make significant (UNSDG) and targets. The Sustainable contributions. We plan to do a more Development Goals are a globally detailed assessment in 2019 to further recognized framework for advancing assess other goals where there is potential EDUCATION • ACCESS FOR ALL • 5,325 COURSES • THE LEARNING ACADEMY sustainability in the public and private for stronger alignment and collaboration WOMEN AND MEN TO OFFERED IN LEARNING SDG 4 QUALITY AFFORDABLE AND ACADEMY AND 518,000 • BACK TO SCHOOL sectors. Many different stakeholders, with key stakeholders to create positive EDUCATION QUALITY TECHNICAL, SEATS FILLED including countries, communities, impact. VOCATIONAL AND • MELCO YOU-NIVERSITY businesses and organizations support TERTIARY EDUCATION, • FIRST 15 GRADUATES INCLUDING UNIVERSITY FROM MELCO • TEACHING CHILDREN VALUES the goals to tackle global challenges in YOU-NIVERSITY IN 2018 economic, environmental, and social • INCREASE THE • HANDFUL OF DREAMS dimensions. NUMBER OF YOUTH • 88 COLLEAGUES AND AND ADULTS WHO HAVE FAMILIES HAVE RECEIVED • HOPE SCHOLARSHIP AND SCHOLARSHIPS FOR RELEVANT SKILLS FOR MELCO SCHOLARSHIPS, FAMILY EMPLOYMENT AND INCLUDING HOPE DECENT JOBS SCHOLARSHIP, FOR • EDUCATIONAL TRAINING AROUND SUSTAINABILITY UNDERGRADUATE • ENSURE THAT ALL EDUCATION LEARNERS ACQUIRE THE KNOWLEDGE AND SKILLS NEEDED TO PROMOTE SUSTAINABLE DEVELOPMENT
114 GRI CONTENT INDEX SUSTAINABILITY & CSR REPORT 2018 115 EMPLOYEE SUPPORT • PROMOTE • COMMITMENT TO • WHOLE PERSON DEVELOPMENT PROGRAM AND CAREER DEVELOPMENT- LOCAL HIRING - IN 2008, DEVELOPMENT ORIENTED POLICIES 38% OF MANAGERS IN • FOUNDATION ACCELERATION PROGRAM THAT SUPPORT MACAU CAME FROM SDG 8 DECENT WORK PRODUCTIVE ACTIVITIES, LOCAL COMMUNITIES; • THE LEARNING ACADEMY AND ECONOMIC DECENT JOB CREATION, IN 2018, THAT FIGURE IS GROWTH ENTREPRENEURSHIP, OVER 80% • HEART-OF-HOUSE: LEADING IN EXCELLENCE CREATIVITY AND FOR EMPLOYEE WORKSPACES INNOVATION • COMMITMENT TO INTERNAL CAREER • WORK-LIFE BALANCE PROGRAMS • PROTECT LABOUR PROMOTION - IN 2018, RIGHTS AND 40% OF VACANCIES PROMOTE SAFE AND WERE FILLED BY MELCO SECURE WORKING COLLEAGUES ENVIRONMENTS FOR ALL WORKERS
• DEVISE AND IMPLEMENT POLICIES TO PROMOTE SUSTAINABLE TOURISM THAT CREATES JOBS AND PROMOTES LOCAL CULTURE
116 GRI CONTENT INDEX SUSTAINABILITY & CSR REPORT 2018 GRI GRI 102-13 MEMBERSHIP OF MELCO BELONGS TO SEVERAL INDUSTRY ASSOCIATIONS TO GRI DISCLOSURE ADDITIONAL DISCLOSURE LOCATION & NOTES ASSOCIATIONS ADVANCE VARIOUS POLICY OBJECTIVES THAT FALL UNDER THE TITLE REFERENCES NUMBER SUSTAINABILITY & CSR UMBRELLA. EXAMPLES INCLUDE THE MACAU CORPORATE GOVERNANCE ASSOCIATION, THE MACAU GAMING MANAGEMENT ASSOCIATION, MACAU GAMING OPERATORS GRI GENERAL DISCLOSURES ASSOCIATION AND THE SAFETY ORGANIZATION OF THE PHILIPPINES (SOPI), OF WHICH WE ARE MEMBERS. ORGANIZATIONAL PROFILE
STRATEGY GRI 102-1 NAME OF THE MELCO RESORTS AND ENTERTAINMENT. (NASDAQ: MLCO) ORGANIZATION GRI 102-14 STATEMENT FROM SENIOR MESSAGE FROM OUR CEO GRI 102-2 ACTIVITIES, BRANDS, ABOUT MELCO DECISION-MAKER PRODUCTS, AND SERVICES
GRI 102-3 LOCATION OF THE CENTRIUM, 60 WYNDHAM STREET, ETHICS & INTEGRITY HEADQUARTERS CENTRAL, HONG KONG SAR
GRI 102-4 LOCATION OF ABOUT MELCO: OUR OPERATIONS GRI 102-16 VALUES, PRINCIPLES, GOVERNANCE & ETHICS: ETHICS Learn more about our OPERATIONS STANDARDS, AND NORMS OUR CODE OF BUSINESS CONDUCT AND ETHICS OUTLINES HOW WE Corporate Governance OF BEHAVIOUR EXPECT ALL OUR PEOPLE AT ALL OUR SITES AND SUBSIDIARIES TO policies and practices, GRI 102-5 OWNERSHIP AND SEE OUR ANNUAL REPORT: PART 1, ITEM 6 BEHAVE, WHETHER THEY ARE DIRECTORS, OFFICERS, EMPLOYEES, and our board of LEGAL FORM AGENTS OR SUBCONTRACTORS. Directors and committees here: GRI 102-6 MARKETS SERVED SEE OUR ANNUAL REPORT: PART 1, ITEM 4 Investor Relations and Corporate Governance. GRI 102-7 SCALE OF THE ABOUT MELCO: OUR OPERATIONS ORGANIZATION AS OF DEC 31, 2018, MELCO HAD 21,413 EMPLOYEE ACROSS GRI 102-17 MECHANISMS FOR ADVICE GOVERNANCE & ETHICS: ETHICS ASIA AND WE REPORTED $5,2 BILLION IN TOTAL REVENUE. AND CONCERNS ABOUT OUR CODE OF BUSINESS CONDUCT AND ETHICS OUTLINES THE ETHICS INTERNAL AND EXTERNAL MECHANISMS FOR EMPLOYEES TO GRI 102-8 INFORMATION ON ABOUT MELCO: OUR OPERATIONS SEEK ADVICE ABOUT ETHICAL AND LAWFUL BEHAVIOR, AND EMPLOYEES AND ABOUT MELCO: OUR WORKFORCE ORGANIZATIONAL INTEGRITY, AND TO REPORT CONCERNS ABOUT OTHER WORKERS UNETHICAL OR UNLAWFUL BEHAVIOR, AND ORGANIZATIONAL INTEGRITY. GRI 102-9 SUPPLY CHAIN ABOUT MELCO: ECONOMIC IMPACT ENVIRONMENT: SUSTAINABLE SOURCING GOVERNANCE GRI 102-10 SIGNIFICANT CHANGES IN 2018, MELCO MADE NO SIGNIFICANT CHANGES TO THE TO THE ORGANIZATION ORGANIZATION’S SIZE, STRUCTURE, OWNERSHIP Annual Report AND ITS SUPPLY CHAIN AND SUPPLY CHAIN. GRI 102-18 GOVERNANCE STRUCTURE GOVERNANCE & ETHICS: CORPORATE GOVERNANCE & RISK Learn more about our MANAGEMENT Corporate Governance GRI 102-11 PRECAUTIONARY OUR PRECAUTIONARY APPROACH IS REFLECTED IN OUR policies and practices, PRINCIPLE OR ENTERPRISE RISK MANAGEMENT APPROACH. and our board of APPROACH GOVERNANCE & ETHICS: RISK MANAGEMENT Directors and committees here: GRI 102-12 MELCO ENDORSES THE FOLLOWING VOLUNTARY ENVIRONMENTAL Investor Relations and EXTERNAL INITIATIVES AND SOCIAL CHARTERS/ STANDARDS/ SETS OF GUIDING Corporate Governance. PRINCIPLES:
• BETTER COTTON INITIATIVE (BCI) COTTON STAKEHOLDER ENGAGEMENT
• FOUNDATION FOR ENVIRONMENTAL EDUCATION (FEE)
GRI 102-40 LIST OF STAKEHOLDER OUR KEY STAKEHOLDER GROUPS INCLUDE BUT ARE NOT LIMITED • GREEN KEY GROUPS TO: CURRENT AND FORMER MELCO EMPLOYEES AND CONTRACTORS; GUESTS; SUPPLIERS AND VENDORS; SOCIETIES AND COMMUNITIES • GREEN HOTEL AWARDS ORGANIZED BY MACAU IN WHICH WE OPERATE; GOVERNMENTS AND REGULATORY ENVIRONMENTAL PROTECTION BUREAU AGENCIES; AND INVESTORS.
• GRI SUSTAINABILITY REPORTING STANDARDS GRI 102-41 COLLECTIVE BARGAINING OTHER THAN THE RANK-AND-FILE EMPLOYEES OF THE TABLE AGREEMENTS GAMES DIVISION OF CITY OF DREAMS MANILA, NONE OF OUR • HAZARD ANALYSIS CRITICAL CONTROL POINTS (HACCP) FOOD EMPLOYEES ARE MEMBERS OF ANY LABOUR UNION AND WE SAFETY CERTIFICATE PROGRAM GRI 102-42 IDENTIFYING AND ARE NOT PARTY TO ANY COLLECTIVE BARGAINING OR SIMILAR SELECTING AGREEMENT WITH OUR EMPLOYEES. • ISO14001 ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) STAKEHOLDERS GOVERNANCE & ETHICS: STAKEHOLDER ENGAGEMENT • STANDARD 100 BY OEKO-TEX® CERTIFICATION
GRI 102-43 APPROACH TO GOVERNANCE & ETHICS: STAKEHOLDER ENGAGEMENT • WASTEWI$E LABEL SCHEME STAKEHOLDER GOVERNANCE & ETHICS: WHAT MATTERS MOST ENGAGEMENT PEOPLE: WORK ENVIRONMENT – VALUED AND CARED FOR 118 • NEW PLASTICS ECONOMY GLOBAL COMMITMENT 119 GRI 102-44 KEY TOPICS AND MELCO STAKEHOLDERS HAVE RAISED SEVERAL KEY ISSUES THAT GRI 102-55 GRI CONTENT INDEX THIS GRI CONTENT INDEX TABLE. CONCERNS RAISED INCLUDE BUT ARE NOT LIMITED TO: LOCAL HIRING, RESPONSIBLE GAMING, WORKER RIGHTS, ETHICS AND COMPLIANCE, WASTE/ GRI 102-56 EXTERNAL ASSURANCE NO EXTERNAL ASSURANCE WAS SOUGHT FOR THIS REPORT BUT WATER/ENERGY USE, CLIMATE CHANGE, AND DIVERSITY/INCLUSION. OUR SCOPE 1 AND 2 GHG EMISSIONS WERE VALIDATED BY A 3RD PARTY.
REPORTING PRACTICE
SPECIFIC STANDARD DISCLOSURES - ECONOMIC
GRI 102-45 ENTITIES INCLUDED IN MELCO’S SUSTAINABILITY & CSR REPORT COVERS TOPICS FOR ALL TOPIC : ECONOMIC PERFORMANCE THE CONSOLIDATED ENTITIES INCLUDED IN OUR FINANCIAL STATEMENTS. FINANCIAL STATEMENTS
GRI 102-46 DEFINING REPORT GOVERNANCE & ETHICS: WHAT MATTERS MOST GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST SEC Form 10-K CONTENT AND TOPIC IN SUPPORT OF THE 2018 MATERIALITY ASSESSMENT, WE 103-3 MATERIAL TOPIC AND BOUNDARIES INTERVIEWED SENIOR MANAGERS AND EXPERTS ACROSS THE ITS BOUNDARY BUSINESS THAT ARE RESPONSIBLE FOR ENGAGING WITH VARIOUS EXTERNAL AND INTERNAL STAKEHOLDERS, WE ALSO REVIEWED GRI 201-1 DIRECT ECONOMIC VALUE ABOUT MELCO: OUR ECONOMIC IMPACT SEC Form 10-K ESG DATA AND CONDUCTED DESK-BASED RESEARCH OF INDUSTRY GENERATED SOCIETY & COMMUNITY: PHILANTHROPY TRENDS, STANDARDS AND BEST PRACTICES, INVESTOR CONCERNS AND DISTRIBUTED AND EVOLVING SCIENTIFIC KNOWLEDGE. THIS WORK HELPED US DEVELOP A SHORTLIST OF TEN ESG TOPICS WHICH WE ASSESSED FOR SIGNIFICANCE OF ESG IMPACTS, AND BUSINESS AND TOPIC: INDIRECT ECONOMIC IMPACTS STAKEHOLDER CONCERN. THE KEY ESG IMPACTS WE IDENTIFIED HAVE INFORMED THE SCOPE OF THIS REPORT AND HELPED US SET CORPORATE GOALS AND APPROPRIATELY ALLOCATE RESOURCES. GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST SEC Form 10-K
103-3 MATERIAL TOPIC AND GRI 102-47 LIST OF MATERIAL TOPICS GOVERNANCE & ETHICS: WHAT MATTERS MOST ITS BOUNDARY MELCO’S PRIORITY ESG TOPICS INCLUDE: -COMMUNITY ENGAGEMENT & INVESTMENT GRI 203-2 SIGNIFICANT INDIRECT ABOUT MELCO: OUR ECONOMIC IMPACT SEC Form 10-K -DIVERSITY & INCLUSION ECONOMIC IMPACTS -ENERGY & CLIMATE CHANGE -ETHICS & INTEGRITY (WHICH INCLUDES ETHICS, ANTI CORRUPTION AND DATA SECURITY & CUSTOMER PRIVACY) TOPIC: ANTI-CORRUPTION -MATERIALS USE & WASTE -RESPONSIBLE GAMING -SAFETY (WHICH INCLUDES GUEST HEALTH & WELLBEING AND EMPLOYEE HEALTHY & SAFETY) GRI 103-1 EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST -SUSTAINABLE ECONOMIC GROWTH to 103-3 MATERIAL TOPIC AND GOVERNANCE & ETHICS: CORPORATE GOVERNANCE & RISK -TALENT ATTRACTION & RETENTION (WHICH INCLUDES EMPLOYEE ITS BOUNDARY MANAGEMENT TRAINING & DEVELOPMENT) GOVERNANCE & ETHICS: ETHICS -WATER USE GRI 205-2 COMMUNICATION AND GOVERNANCE & ETHICS: ETHICS GRI 102-48 RESTATEMENTS OF SINCE THIS IS OUR FIRST SUSTAINABILITY & CSR REPORT, THIS IS TRAINING ABOUT MELCO ENABLES AND REQUIRES ALL EMPLOYEES TO RECEIVE INFORMATION OUR FIRST DISCLOSURE OF BASELINE ESG DATA AND INFORMATION. ANTI-CORRUPTION TRAINING REGARDING ETHICS AND ANTI-CORRUPTION PRACTICES POLICIES AND ON AN ANNUAL BASIS. IN 2018, 98% OF REQUIRED EMPLOYEES GRI 102-49 CHANGES IN NOT APPLICABLE SINCE THIS IS OUR FIRST SUSTAINABILITY PROCEDURES COMPLETED ‘DO THE RIGHT THING’ TRAINING. REPORTING & CSR REPORT. GRI 205-3 CONFIRMED INCIDENTS IF ALLEGATIONS OF CORRUPTION ARE BROUGHT TO OUR OF CORRUPTION AND ATTENTION, WE WORK TO INVESTIGATE AND RESOLVE THEM GRI 102-50 REPORTING PERIOD THE HIGHLIGHTS AND METRICS SHARED IN THIS REPORT COVER ACTIONS TAKEN APPROPRIATELY AND DISCLOSE MATERIAL, SUBSTANTIATED CALENDAR YEAR 2018, AND WE PROVIDE MULTI-YEAR TREND DATA INCIDENTS AS APPROPRIATE. WHERE FEASIBLE.
GRI 102-51 DATE OF MOST RECENT THIS IS OUR FIRST SUSTAINABILITY & CSR REPORT. SPECIFIC STANDARD DISCLOSURES - ENVIRONMENT REPORT W TOPIC: MATERIALS GRI 102-52 REPORTING CYCLE MELCO PLANS TO ISSUE ANNUAL SUSTAINABILITY & CSR UPDATES.
GRI 103-1 to EXPLANATION OF THE ENVIRONMENT: ACHIEVING ZERO WASTE RESORTS AND SEC Form 10-K GRI 102-53 CONTACT POINT FOR MELCO’S CONTACT POINT FOR QUESTIONS REGARDING THE REPORT 103-3 MATERIAL TOPIC AND CONTRIBUTING TO CIRCULAR ECONOMY LEADERSHIP IN ASIA QUESTIONS REGARDING IS [email protected] ITS BOUNDARY ENVIRONMENT: TAKING ACTION ON PLASTIC WASTE THE REPORT
GRI 301-2 RECYCLED INPUT ENVIRONMENT: ACHIEVING ZERO WASTE RESORTS AND SEC Form 10-K GRI 102-54 CLAIMS OF REPORTING IN WE SELF-DECLARE THAT THIS REPORT HAS BEEN PREPARED IN MATERIALS USED CONTRIBUTING TO CIRCULAR ECONOMY LEADERSHIP IN ASIA ACCORDANCE WITH THE ACCORDANCE WITH THE GRI STANDARDS: CORE OPTION. WE CURRENTLY ADDRESS SUSTAINABLE MATERIALS BY REDUCING GRI STANDARDS SINGLE-USE PLASTICS USED IN THE DELIVERY OF OUR SERVICES OR BY EXTENDING THE LIFE OF MATERIALS THROUGH RECYCLING AND REUSE AND WILL LOOK TO ASSESS THE AMOUNT OF RECYCLED 120 INPUT USE IN THE NEAR FUTURE. 121 TOPIC: ENERGY TOPIC: EFFLUENTS & WASTE
GRI 103-1 to EXPLANATION OF THE ENVIRONMENT: ACHIEVING ZERO WASTE RESORTS AND GRI 103-1 to EXPLANATION OF THE ENVIRONMENT 103-3 MATERIAL TOPIC AND ITS CONTRIBUTING TO CIRCULAR ECONOMY LEADERSHIP IN ASIA 103-3 MATERIAL TOPIC AND ITS ENVIRONMENT: CARBON NEUTRAL RESORTS BOUNDARY ENVIRONMENT: TAKING ACTION ON PLASTIC WASTE BOUNDARY ENVIRONMENT: REDUCING OUR ENERGY CONSUMPTION ENVIRONMENT: TAKING ACTION ON FOOD WASTE
GRI 302-1 ENERGY CONSUMPTION ENVIRONMENT: HOW WE ARE DOING GRI 306-2 WASTE BY TYPE AND ENVIRONMENT: OUR WASTE FOOTPRINT WITHIN THE DISPOSAL METHOD BECAUSE MELCO GENERATES AN IMMATERIAL AMOUNT OF ORGANIZATION HAZARDOUS WASTE, ONLY NON-HAZARDOUS WASTE TOTALS ARE REFLECTED IN THE CHARTS. GRI 302-3 ENERGY INTENSITY ENVIRONMENT: HOW WE ARE DOING
SPECIFIC STANDARD DISCLOSURES - SOCIAL TOPIC: WATER TOPIC: EMPLOYMENT
GRI 103-1 to EXPLANATION OF THE ENVIRONMENT: WATER 103-3 MATERIAL TOPIC AND ITS GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST BOUNDARY 103-3 MATERIAL TOPIC AND ITS PEOPLE BOUNDARY GRI 303-1 WATER WITHDRAWAL ENVIRONMENT: WATER BY SOURCE GRI 401-1 NEW EMPLOYEE ABOUT MELCO: OUR OPERATIONS HIRES AND EMPLOYEE NEW HIRES BY REGION IN 2018: GRI 303-3 WATER RECYCLED AND ENVIRONMENT: WATER TURNOVER • MACAU – 2,243 TOTAL (1,211 MALES, AND 1,032 FEMALES) REUSED RECYCLED AMOUNTS ARE ESTIMATED FOR THE WATER THAT RUNS • MANILA – 1,125 TOTAL (652 MALES, 473 FEMALES) THROUGH THE FILTRATION SYSTEM FOR THE HOUSE OF DANCING WATER FEATURE; RECYCLED AMOUNTS FROM THE GREYWATER WE ARE PLEASED TO SEE OUR TURNOVER RATE COMING SYSTEMS ARE NOT AVAILABLE. DOWN EACH YEAR FOR THE PAST 3 YEARS.
TURNOVER BY REGION: TOPIC: EMISSIONS • MACAU • 2016 – 12.8% • 2017 – 12.4% GRI 103-1 to EXPLANATION OF THE ENVIRONMENT: CARBON NEUTRAL RESORTS • 2018 – 10.9% 103-3 MATERIAL TOPIC AND ITS • MANILA BOUNDARY • 2016 – 18.9% • 2017 – 11.7% GRI 305-1 DIRECT (SCOPE 1) GHG ENVIRONMENT: HOW WE ARE DOING • 2018 – 10.9% EMISSIONS
TOPIC: OCCUPATIONAL HEALTH AND SAFETY GRI 305-2 ENERGY INDIRECT (SCOPE ENVIRONMENT: HOW WE ARE DOING 2) GHG EMISSIONS MELCO USES SUBREGION GRID («UTILITY») EMISSION FACTORS FOR SCOPE 2 MARKET-BASED CALCULATIONS, AND USES IEA GRID EMISSION FACTORS FOR SCOPE 2 LOCATION-BASED CALCULATIONS. GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST 103-3 MATERIAL TOPIC AND ITS PEOPLE: KEEPING OUR COLLEAGUES AND GUESTS SAFE SCOPE 2 LOCATION-BASED EMISSIONS ARE AS FOLLOWS: BOUNDARY
GRI 403-2 TYPES OF INJURY AND PEOPLE: KEEPING OUR COLLEAGUES AND GUESTS SAFE 2016 2017 2018 RATES OF INJURY, NOTE THAT WE DO NOT REPORT ON OUR TOTAL INCIDENT RATE OCCUPATIONAL BY GENDER AS WE DO NOT MANAGE TO THIS METRIC. OUR H&S SCOPE 2 LOCATION-BASED 276,400 267,539 281,698 DISEASES, LOST DAYS, POLICIES, PROGRAMS, AND TRAINING ARE TARGETED AT ALL AND ABSENTEEISM, AND COLLEAGUES. NUMBER OF WORK- RELATED FATALITIES GRI 305-4 GHG EMISSIONS ENVIRONMENT: HOW WE ARE DOING INTENSITY
122 123 TOPIC: TRAINING AND EDUCATION TOPIC: CUSTOMER HEALTH & SAFETY
GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST 103-3 MATERIAL TOPIC AND ITS PEOPLE: CAREER OPPORTUNITIES 103-3 MATERIAL TOPIC AND ITS PEOPLE: KEEPING OUR COLLEAGUES AND GUESTS SAFE BOUNDARY BOUNDARY
GRI 404-2 PROGRAMS FOR PEOPLE: CAREER OPPORTUNITIES GRI 416-1 ASSESSMENT OF KEEPING OUR COLLEAGUES AND GUESTS SAFE UPGRADING EMPLOYEE NOTE THAT WE REPORT ON THE TYPE AND SCOPE OF PROGRAMS THE HEALTH AND SKILLS AND TRANSITION MELCO PROVIDES TO HELP EMPLOYEES UPGRADE THEIR SKILLS. SAFETY IMPACTS OF ASSISTANCE PROGRAMS WE DO NOT CURRENTLY OFFER ANY PROGRAMS TO FACILITATE PRODUCT AND SERVICE CONTINUED EMPLOYABILITY OF EMPLOYEES WHO LEAVE EITHER CATEGORIES THROUGH RETIREMENT OR TERMINATION. GRI 416-2 INCIDENTS OF NO INCIDENTS OF NON-COMPLIANCE WITH REGULATIONS AND/ NON-COMPLIANCE OR VOLUNTARY CODES WERE IDENTIFIED DURING THIS REPORTING CONCERNING THE HEALTH PERIOD. AND SAFETY IMPACTS OF PRODUCTS AND SERVICES
TOPIC: DIVERSITY AND EQUAL OPPORTUNITY TOPIC: CUSTOMER PRIVACY
GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST 103-3 MATERIAL TOPIC AND ITS PEOPLE: FOSTERING A DIVERSE WORKPLACE 103-3 MATERIAL TOPIC AND ITS GOVERNANCE & ETHICS: DATA PRIVACY AND SECURITY BOUNDARY GOVERNANCE & ETHICS: CORPORATE GOVERNANCE AND RISK BOUNDARY MANAGEMENT GRI 418-1 SUBSTANTIATED WE HAD NO DATA BREACHES OF SIGNIFICANCE, NOR DID WE GRI 405-1 DIVERSITY OF PEOPLE: FOSTERING A DIVERSE WORKPLACE COMPLAINTS RECEIVE ANY SUBSTANTIATED COMPLAINTS IN 2018. GOVERNANCE BODIES GOVERNANCE & ETHICS: CORPORATE GOVERNANCE AND RISK CONCERNING AND EMPLOYEES MANAGEMENT BREACHES OF CUSTOMER ABOUT MELCO: OUR OPERATIONS PRIVACY AND LOSSES OF NOTE THAT MELCO REPORTS ON PERCENTAGE OF INDIVIDUALS CUSTOMER DATA WITHIN THE ORGANIZATION’S GOVERNANCE BODIES FROM A GENDER PERSPECTIVE, AND ON OUR TOTAL GLOBAL WORKFORCE BY GENDER. TOPIC: SOCIOECONOMIC COMPLIANCE
TOPIC: LOCAL COMMUNITIES GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: ETHICS 103-3 MATERIAL TOPIC AND ITS CODE OF BUSINESS CONDUCT BOUNDARY GRI 103-1 to EXPLANATION OF THE GOVERNANCE & ETHICS: WHAT MATTERS MOST 103-3 MATERIAL TOPIC AND ITS SOCIETY & COMMUNITY GRI 419-1 NON-COMPLIANCE WITH NO SIGNIFICANT FINES OR NON-MONETARY SANCTIONS BOUNDARY LAWS AND REGULATIONS FOR NON-COMPLIANCE OCCURRED DURING THIS IN THE SOCIAL AND REPORTING PERIOD GRI 413-1 OPERATIONS WITH SOCIETY & COMMUNITY ECONOMIC AREA LOCAL COMMUNITY ALL OF OUR OPERATIONS HAVE COMMUNITY ENGAGEMENT ENGAGEMENT, IMPACT AND INVESTMENT PROGRAMS IN PLACE. ASSESSMENTS, AND DEVELOPMENT PROGRAMS
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