Annual Digest 2018

ANNUAL DIGEST 2018

MACAU INTEGRATED RESORT INDUSTRY

ANNUAL DIGEST 2018

MACAU INTEGRATED RESORT INDUSTRY ABOUT THIS REPORT

About the Publisher

TEAM Publishing and Consultancy Ltd is a Macau-based publishing company. The Company has experience in a range of media skills including print and online journalism, copywriting, translation, corporate publishing, and television news and documentaries.

About the Promoter

The Association for Promotion of Corporate Social Responsibility in the Integrated Resort Industry was established in Macau as an advocate for advancing CSR best practices in the city’s integrated resort industry. The Association aims to stimulate exchange of ideas, promote networking, and contribute to advancement in CSR strategies. By doing so, the Association aims to give higher visibility to CSR excellence in Macau’s integrated resort industry and raise awareness about the positive impact that the sector can have on society.

About the Producer

Macau-based GGRAsia Publications focuses on printed materials and special projects. It is part of GGRAsia, a leading business-to-business media platform for the Asian casino industry. GGRAsia was launched in 2014 to provide the sector with in-depth news and information. INDEX

FORWARD THINKING 6 COMMUNITY COMMITMENTS 8 PROTECTING THE ENVIRONMENT 22 ETHICAL GAMBLING 32 HELPING SMEs PROSPER 38 RESPONSIBLE EMPLOYERS 46 HIS inaugural edition of the “CSR Annual Di- same time operates in a highly-sensitive field, having gest”, produced by GGRAsia Publications – to ensure it has enough safeguards in place to curb the publishing arm of gaming industry news social woes such as gambling addiction, and to pre- provider GGRAsia – examines corporate social vent criminal activities. Tresponsibility (CSR) practices in the context of the Ma- According to official data, Macau’s gaming indus- cau gaming industry, with a special focus on progress try had more than 57,000 full-time employees as of during 2018. The document is the first of its kind, and end-2018. The overall sector – when including hotel, aims to offer a comprehensive review of the industry’s retail and entertainment operations – was responsible commitment to sustainable development. It does so by for a much higher number of jobs, making the casino analysing how resort operators, suppliers and junkets resort sector in aggregate one of the largest employ- are contributing toward the betterment of Macau. ers in the city. The expectations of different stakeholders in- In addition, direct taxes from gaming accounted volved in Macau’s casino industry, from government for almost 80 percent of the Macau government’s to employees and shareholders, are complex, chal- aggregate revenue for 2018, meaning the industry lenging and – at times – even conflicting. The indus- played, and continues to play, a significant role in en- try plays a very important economic role but at the suring the local authorities are well funded and can

6 CSR ANNUAL DIGEST 2018 FORWARD THINKING

Assessing CSR practices

ow is CSR “measured”? Gaming companies suring CSR, covering 17 sustainability goals. As Hin Macau have the option of reporting their of 2018, there were at least three companies in CSR practices based either on global guidelines or Macau’s casino sector that had chosen to disclose in relation to standards implemented by the Hong information in accordance with GRI standards Kong authorities. In both scenarios, the goals of and to incorporate the SDG framework into their such reporting are to urge corporations to disclose long-term CSR strategy. details regarding their impact on host communi- There are also some gaming firms that ties, and to allow businesses – and their stakehold- have chosen to publicise information on their ers – to track progress made over time. CSR practices based on Hong Kong’s reporting One reporting option is to adopt the global standards. Listed companies on Hong Kong’s framework for measuring CSR created by an in- bourse are encouraged to disclose information dependent, non-profit organisation: Global Re- by issuing annual environmental, social and porting Initiative (GRI). GRI offers guidelines aimed governance reports. In those contexts they can at a variety of stakeholders including investors, provide information on a wide range of social employees and civil society. Many Macau gaming and environmental indicators, while also out- companies are now disclosing their environmental lining measures they have taken to reduce any efforts in accordance with GRI measurements. negatives in terms of their overall impact on the The United Nations Sustainable Development community. Firms can also submit carbon foot- Goals (SDGs) initiative, aimed at creating by the print reports to the Carbon Footprint Reposi- year 2030 a sustainable framework globally for tory overseen by Hong Kong’s Environmental business and commerce, is another way of mea- Protection Department.

provide quality services and infrastructure to the over- culture and history. The gaming industry has been en- all population. gaged in work in all those fields. The impact of the casino industry in Macau goes The European Commission of the European well beyond employment and the economy. A number Union, an organisation that has been at the forefront of resort operators, suppliers and junkets has in place of developing thinking on corporate social responsi- comprehensive sponsorship activities, including funding bility, says CSR should be “a concept whereby com- sports initiatives as well as social and cultural projects. In panies integrate social and environmental concerns addition, many casino-sector firms have in recent years into their business operations and into their interac- developed integrated CSR strategies, building ongoing tions with their stakeholders on a voluntary basis”. In partnerships with non-profit organisations and making that regard, CSR “should be company led” and not use of their core operational skills to address commu- an imposition of regulators. nity issues in a way that involves more than just funding As reported in this publication, the gaming industry in third-party organisations. Macau has been increasingly active and creative in terms The gaming industry also has a key role in as- of CSR initiatives, extending the coverage and stated goals sisting Macau with its public-policy aim of being a of such activities. CSR efforts are starting to move beyond “world centre of tourism and leisure”. That policy is cash donations to third-party community organisations supported by China’s central government. Ensuring and are also focusing on partnerships with local small and the city develops as a quality destination for interna- medium-sized enterprises (SMEs), environmental sustain- tional tourists includes not only boosting the quality ability and team development. The aim is to contribute to and standards of resorts developed in Macau, but also the overall well-being of of the Macau community and supporting the promotion of the city’s gastronomy, the people of the surrounding region.

CSR ANNUAL DIGEST 2018 7 COMMUNITY COMMITMENTS

IR operators move beyond charity donations, to active engagement COMMUNITY COMMITMENTS

OMMUNITY investment’ in the context of the gaming industry refers to the op- portunity for companies to make positive MGM China volunteer contributions to community life and peo- team provided more pleC in their host jurisdictions and beyond. ‘ According to a 2018 study by the Institute for than 10,000 hours in Social and Cultural Research at the Macau University of Science and Technology (MUST), the six integrat- community service in 2018 ed resort operators in Macau donated in aggregate HKD1.56 billion (US$198.9 million) to charity organ- isations between 2011 and 2017. The report stated donations were mostly for projects related either to education, scientific research, environmental protec- beyond cash donations, important though such ac- tion or disaster relief. tions are. These two voices in the CSR debate suggest Major Macau charities regularly to have received companies should first assess positive and negative support from the gaming industry include: Caritas social effects of their operations, and then take the Macau; the Charity Fund from the Readers of Macao initiative in engaging with relevant communities. Daily News; Orbis Macau; the Peng On Tung Tele-As- In 2018 the Macau gaming industry reported it sistance programme – a scheme run by the General continued to take steps to connect with the local Union for Neighbourhood Associations and providing community via a wide range of activities; from corpo- support to elderly people living alone; Tung Sin Tong rate initiatives to supply community volunteers from Charitable Society; and the Welfare Shop Project of among the operator workforces, to promotion within the Macau Holy House of Mercy. the workplace of diversity and inclusion. Such busi- According the United Nations Global Compact nesses were also involved in promoting arts and cul- and the Global Reporting Initiative (GRI), the CSR- ture, in sponsoring sports initiatives, and taking part inspired investment in the community should extend in community- and animal welfare-related activities.

The Macau Holy House of Mercy food hamper initiative for disadvantaged families has been supported by gaming-sector businesses

CSR ANNUAL DIGEST 2018 9 Junkets: new claimants to corporate citizenship

acau’s VIP gaming promoters – also known official title sponsor for the Macau Grand Prix. It Mas junkets – play an important role in the was the fifth consecutive year the company was city’s casino business. They coordinate the recruit- the main title sponsor of the city’s top annual mo- ment of high-roller players from mainland China torsport event. and beyond, and crucially arrange for the extension David Group – another Macau-based junket of credit to those VIP individuals while they are in operator – says it has been supporting the devel- Macau, to support their gaming activities. opment of the sports sector in Macau. It created The sector has undergone significant change its own sports event known as “David Zunwu in recent years, fuelled by tighter regulation and a Tianxia Fighting Championship”, held for the consolidation in the number of junkets. The total of first time in 2018. David Group also sponsored licensed junkets in Macau fell from 235 in January the China-Macau Junziball (Tchoukball) General 2013 to 100 by January 2019. Those changes ap- Association and the Monte Carlo Sports Club pear to have had some knock-on effects in terms of Dragon Boat Team. the way the sector manages its business. Some jun- The junket sector additionally reports it is in- kets say they have been adopting best international volved in supporting the development of local arts practices in terms of their corporate governance. and culture. Suncity Group and David Group re- They claim this has led them to rethink the way they spectively sponsored the 3rd Macau International engage with the local community. Film Festival & Awards, which took place in De- In 2018, a food hamper initiative for disad- cember 2018 and brought to the city some of the vantaged families - a scheme run by the Macau most prominent and influential figures globally in Holy House of Mercy - had financial support from the film industry. David Group also supported the a number of junket operators, including Suncity locally-produced feature film “INA”. Group, Meg-Star Group and Tak Chun Group. Meg-Star Group is another junket operator Suncity Group reports significant involvement reporting a number of initiatives providing com- in community affairs. In 2018, the group donated munity support. In February 2018, the firm hosted money to several local charities, including Caritas a charity event to raise funds to support five local Macau and Oxfam Macau. The group also took charity initiatives and associations. The group also part in the 2018 “Walk for a Million” event, one of took part in the 2018 “Walk for a Million” event, the city’s largest annual charitable initiatives, aiming with more than 160 employees joining in. to raise funds to support the activities of its pro- Meg-Star was the title sponsor for the Macau moter, the Charity Fund from the Readers of Ma- Golf Masters 2018. It was that year’s edition of cao Daily News. an annual three-day golf tournament that seeks To mark Chinese New Year in February 2018, to raise awareness about intellectual disabilities. Suncity Group held a festival at the Kam Pek Com- Meg-Star also sponsored the MGM Macau Eco munity Centre. The firm invited 300 local senior citi- TrailHiker event, which took place on hilltop trails zens to attend the event and celebrate with Suncity in Coloane, in the southernmost part of Macau. Group community volunteers. The company also In addition, the group – via its Meg-Star Char- supported the “Children’s Dreams 2018” campaign ity team – funded the construction of a new in partnership with the Macao IN Volunteer Group, school building in the mountain village of Patle- which took children with either intellectual or physi- khet in central Nepal. The opening ceremony took cal disabilities – or children either from single-parent place in April 2018. The Meg-Star Charity team or low-income families – on a trip to Taiwan. also organised several visits to charity organisa- Junket operators also have close ties to organ- tions and events throughout the year, both in ised sport in Macau. Suncity Group was in 2018 the Macau and mainland China.

10 CSR ANNUAL DIGEST 2018 COMMUNITY COMMITMENTS

Melco Resorts team taking part in ‘Walk for a Million’

Charity support

HE Charity Fund from the Readers of Macao Daily The 2018 edition also raised the highest amount in TNews holds a yearly “Walk for a Million” event. donations – a total of MOP19 million (US$2.4 million) This is widely reported as being the city’s largest-single – since the annual event’s inception. annual charitable event, bringing together thousands Many firms in Macau’s gaming sector not only of people from across the community for a morning make donations for the “Walk for a Million”, but also walk around the Macau peninsula. The main goal is organise groups of employees to participate in it. In to raise money to support the activities of the fund. 2018 all six integrated resort operators were repre- The year 2018 marked the 35th anniversary of the sented on the walk, as well as several junket opera- walk. There was a record turnout: 50,000 participants. tors and gaming equipment suppliers. Another major annual charity event attracting thou- sands of people each year is the Caritas Macau Charity Bazaar. The bazaar, which celebrated its 50th anniver- sary in November 2018, featured live performances and More than 3,000 SJM over 90 booths offering games, food and items in aid of charity. The 2018 edition raised approximately MOP7 Holdings employees million in aggregate from the gaming sector and the took part in the annual wider community. Such sums are put towards Caritas Macau’s operational expenses and its efforts to develop charity event “Walk for a Million” and implement social services in the community. in 2018 Tung Sin Tong, one of Macau’s oldest charitable or- ganisations, also receives major donations from several gaming operators. Tung Sin Tong was formed to provide

CSR ANNUAL DIGEST 2018 11 food, clothing and medicine for the poor. It has grown sig- nificantly since, and – as well as distributing rice and cook- ing oil to those in need – it now operates nurseries, schools, an adult-education centre, medical clinics and a pharmacy. US$10.7 MLN The integrated resort operators and junkets have also been supporting the Welfare Shop Project of the Social contributions in 2018 Macau Holy House of Mercy, which provides food by Melco Resorts, including support to disadvantaged families. In terms of other initiatives by the gaming firms, sev- sponsorships and in-kind donations eral of them support the Peng On Tung Tele-Assistance programme by the General Union for Neighbourhood Associations. In addition to cash donations, gaming companies send groups of volunteers to visit elderly people living alone that rely on the Peng On Tung ser- vice for support. Donations to the programme subsidise people with financial difficulties by ensuring they get ac- cess to the tele-assistance service. The money also helps the scheme’s promoters widen the scope of its work. Two major charities involved in humanitarian proj- ects outside Macau – Orbis Macau and the World Vision of Macau Association – also receive frequent funding US$13 MLN from local gaming firms, in response to the charities’ respective appeals seeking assistance for work they do Direct cash donations to charity around the world. Orbis works on saving or restoring made by Wynn Macau Ltd in 2018 human sight in uunderdeveloped communities. World Vision of Macau Association works to alleviate poverty around the world and to promote development.

Sands China takes part in the 2018 Caritas Macau Charity Bazaar

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Equipment sector and community support

Asia Pioneer Entertainment staff at Run of Hope in Macau

acau, the world’s largest single-jurisdiction A number of casino equipment suppliers sup- Mgaming centre by gross gaming revenue, ports the Macau Golf Masters, an annual event has become a regional base in Asia for a number that seeks to raise awareness about intellectual of international companies supplying equipment disabilities. The 2018 edition had input from Aris- and technology to the casino sector. Many of the tocrat Technologies, Scientific Games Corp and Macau operations of the equipment suppliers are International Game Technology Plc. involved in work to support the local community. Macau-based gaming equipment distributor Aristocrat Technologies Macau Ltd – known Asia Pioneer Entertainment Ltd (APE) is also en- until April 2019 as Aristocrat (Macau) Pty Ltd – is gaged in community support work. In November the local arm of Aristocrat Leisure Ltd, an Austra- 2018, employees representing the APE volunteer lian maker of slot machines. Each year at the firm’s team took part – along with family members and Christmas party, gifts are collected and donated to friends – in the Macau version of the annual “Run children in local orphanages. Aristocrat Technolo- of Hope”, a charity event promoted at locations gies also regularly sponsors charitable events and across the world by Four Seasons Hotels and Re- ones organised by the International Ladies’ Club sorts. The initiative raises funds for cancer research of Macau. and for orphanages.

CSR ANNUAL DIGEST 2018 13 Corporate voluntary work

ORPORATE voluntary work – involving employees Cfinding time for community causes – was prevalent in the Macau integrated resort industry in 2018. It has been an element in gaming companies’ CSR work in 120+ Macau. The sector has identified a number of poten- tial benefits in this approach: not only advantage for Total number of charities/ the community, but also an improved reputation for the associations that have benefitted company involved and a sense of achievement and de- velopment of new skills among workers. up to the end of 2018 The city’s six integrated resort operators say they from support by the Galaxy have made voluntary work a core activity rather than a fringe one. This has involved approaches such as creat- Entertainment Volunteer Team ing in-house volunteer programmes. Sector volunteers regularly visit local facilities such as community centres and orphanages; provide support to elderly people living alone; or assist the effort of organisations working on behalf of people with physical or intellectual challenges. Asilo Vila Madalena, a home for the elderly in Coloane. Chinese New Year 2018 – in mid-February – was a The company also organised outings for senior citizens particularly popular time for community voluntary work by partnering with the Lok In Elderly Service Centre of organised by integrated resort operators. Many of the the Women’s General Association of Macau. The initia- activities focused on festive events for old people. An tive involved taking 120 old folk to visit the Communica- example was volunteers from Wynn Macau Ltd visiting tions Museum. Wynn Macau Ltd also worked with an

Wynn Macau Ltd volunteers visit the Concordia School for Special Education

14 CSR ANNUAL DIGEST 2018 COMMUNITY COMMITMENTS

Diversity and inclusion 90 acau integrated resort companies ex- Total number of community activities Mpress an interest in making the city more held in 2018 by Sands China inclusive in terms of the role played in society by people with either physical or intellectual disabilities, or those that have previously be- come marginalised by things such as drug addiction. These firms have been cooperat- tive, volunteers dedicate their personal time to various ing with a variety of non-profit organisations events across Macau to benefit either children with spe- working with such community members. cial needs, senior citizens, or those with intellectual or The Fuhong Society of Macau, founded physical challenges. by locals in 2003, offers opportunities for Volunteers from Melco Resorts held a “One Day individuals with intellectual disabilities to Volunteer” event – for 88 children and family members integrate in society. It also supports those from outside the company.There were also games as identified as having mental health problems. well as time for individual play. Its activities are regularly supported by the Galaxy Entertainment launched in 2018 with AJVM integrated resort sector, and such support a “One Day Volunteer” programme to help old people. continued during 2018. In that period a More than 100 elderly locals gathered at Banyan Tree number of gaming companies also worked Macau to attend an “Active Ageing Event”. Approxi- with an organisation called the Association mately 30 Galaxy Entertainment volunteers, together of Parents of the People with Intellectual Dis- with representatives from AJVM, conducted a range of abilities of Macau. activities including workshops and games designed to The Macau Special Olympics – a charity improve hand dexterity among the elderly. The volun- helping people with intellectual disabilities to teers also sang and danced for the guests. take part in competitive sport and thus pro- SJM Holdings workers also devoted time to the el- mote their inclusion in mainstream society – derly via the firm’s own “One Day Volunteer” activity. also receives ongoing support from the city’s Approximately 30 members of the SJM Volunteer Team gaming industry. All the city’s integrated visited elderly folk living alone – people known to be us- resort operators engaged with the group in ers of the Peng On Tung Tele-Assistance service – at the 2018. They did so in particular by creating Sac Pai Van public housing complex. Volunteers brought special sports events for children with special food hampers to them and helped check the tele-assis- needs and their families. The activities – also tance devices. involving volunteers from the respective host Sands China and parent firm Las Vegas Sands Corp integrated resort operators – were chiefly de- encourage voluntary community work among their em- signed to help increase children’s interest in, ployees by making sure those people get public recogni- and confidence about, involvement in sports. tion within the organisation. In the Macau operation, the group awarded May Wu Yee Mei, a Venetian Ma- cao worker, the “Mr Sheldon G. and Dr Miriam Adelson Citizenship Award”, for her work under the Sands Cares activity centre for the elderly run by Tung Sin Tong to Ambassador programme. take 200 senior citizens to the city’s Panda Pavilion. To celebrate United Nations International Volun- According to announcements made at the time, at teer Day on December 5, Wynn Macau Ltd organised least three gaming companies took part in the “One in 2018 a “Wynn Cares – Volunteer Day”. The event Day Volunteer” programme in 2018. It is promoted by was designed to recognise the firm’s own volunteers for the Macao Voluntary Youth Association, also known their time dedicated to community service, and to en- by its Portuguese acronym AJVM. Through this initia- courage people to take part in volunteer work.

CSR ANNUAL DIGEST 2018 15 Typhoon response efforts

F&B workers from Galaxy Entertainment flagship properties pack meal boxes

wo ‘super typhoons’ struck Macau in little Due to damage caused by Typhoon Mangkhut Tmore than a 12-month period between sum- to some facilities of the General Union for Neigh- mer 2017 and summer 2018, after a half-century bourhood Associations, the group was unable for of relatively milder storms. Following those events, Macau gaming companies made efforts to spread awareness in the community about planning at household and neighbourhood level for any such emergencies in future. Integrated resort operator MGM China sponsored in May 2018 – in response to what it said were some of the lessons from 2017’s Typhoon Hato – a “Certif- icate Course on Critical Incident Stress Management – Group Crisis intervention”. The course – organised by the Sheng Kung Hui Macau Social Services Co- ordination Office – was designed to strengthen the community’s preparedness for major incidents such as natural disasters. The programme was attended by social workers and counsellors from Sheng Kung Hui and from other local social services organisations, as well as by MGM China employees. Sands China staff distribute meal boxes

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some time after the summer 2018 incident to pre- pare meals for elderly users of its tele-assistance programme. In response, integrated resort opera- tor Galaxy Entertainment helped – via the food and beverage departments of its properties – pre- pare more than 1,000 meal boxes for the commu- nity group. Following Typhoon Mangkhut, Galaxy Entertainment volunteers also distributed daily necessities – and 500 Red Cross Family Kits do- nated by the integrated resort firm – to residents in the São Lourenco and Patane neighbourhoods. In October, volunteers from Galaxy Entertainment again visited the homes of users of the Peng On Tung Tele-Assistance programme to deliver ty- phoon preparedness kits and provide safety tips. After Typhoon Mangkhut, Melco Resorts made available 230 employees from its property and construction services team over two days, to perform repair work in the community, ensure public safety and support beach clean-up efforts. Typhoon Hato led to the deaths of 10 people in Macau. Sands China created in 2018 a Hato Education Sponsorship Fund in cooperation with a local insurance firm to provide education funds for six children and young adults whose parents Volunteers from Melco Resorts help clean up Hac Sa beach were casualties of the typhoon. The integrated resort operator also donated around MOP2 mil- lion to cover the costs of repairing a Holy House ber 2018, to support the business of local eateries of Mercy-run home for the elderly after damage affected by Typhoon Hato. Through several of its from Typhoon Hato. properties, SJM Holdings distributed cash coupons Macau’s University of Saint Joseph also re- to local residents and tourists, redeemable at small ceived in 2018 a donation – of MOP15.4 million restaurants in areas most badly affected by the ty- – from the Adelson Family Foundation, a body es- phoon, to encourage those people to dine at them. tablished by Sheldon Adelson, chairman and chief MGM China cooperated with local telecoms executive of Sands China’s parent company, Las provider CTM to offer a data cloud backup service Vegas Sands Corp, and his wife Miriam Adelson. to local SMEs affected by flooding during Typhoon The funds assisted the university in its recovery Hato. MGM China sponsored the service, provided efforts after Typhoon Hato caused major damage to more than 70 local SMEs. Were there to be an- to its new campus. other major event disrupting local business, the Some integrated resort companies additionally data-storage capacity of those companies helped in 2018 helped local small and medium-sized en- should remain unaffected. It was reported that terprises (SMEs) that had their business disrupted MGM China chose that particular initiative after by Typhoon Hato the previous year. SJM Holdings recognising the effect of Typhoon Hato on a num- ran a five-month campaign, from August to Decem- ber of its own suppliers in that regard.

CSR ANNUAL DIGEST 2018 17 Sport promotion

EVERAL Macau gaming companies say they seek For 15 years, Galaxy Entertainment has been Sto promote interest and engagement in sport the title sponsor for Macau’s annual marathon among the local community. Such companies are road race, which attracts an international field of variously involved in: sponsorship of major sports competitors. The firm encourages its own team events; organising meet-and-greet sessions with members to take part in the event. sports celebrities; or hosting sports competitions. In 2018, the “FIVB Women’s Volleyball Na- tions League” made its debut in world sport, replacing the FIVB Volleyball World Grand Prix. Macau was one of the inaugural venues for the new tournament, and Galaxy Entertainment con- About 12,000 runners tinued its support for FIVB volleyball by sponsor- ing the new event. took part in the 2018 Galaxy Entertainment also provides sponsor- Macau International ship to enable Olympic gold medallists from China to visit Macau each year. In 2018, it invited gym- Marathon, an event sponsored by nast Li Shanshan, table tennis player Xu Xin and Galaxy Entertainment badminton player Wang Xin to share with 200 stu- dents from the University of Macau their respec- tive experiences of Olympic Games competition.

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CSR in education and the arts

n 2018 education was – as in previous years I– one of the most popular CSR causes for the integrated resort industry. Its involvement cov- ered scholarship programmes, infrastructure improvements, and other initiatives. Wynn Macau Ltd continued its financial sup- port – which it began in 2011 – for the Univer- sity of Macau Development Foundation. In 2018 Sands China donated money for scholarships and fellowships to six tertiary in- stitutions: the University of Macau; Macau University of Science and Technology; Macao Athletes with disabilities at an art workshop organised by Polytechnic Institute; the Macao Institute for MGM China’s volunteer team Tourism Studies (IFT); the University of Saint Joseph; and Macau Institute of Management. part of the UNESCO Creative Cities Network Other operators – including Galaxy Entertain- in the field of gastronomy. A number of inte- ment, Melco Resorts, MGM China and Wynn grated resort operators chose to mark the fact. Macau Ltd –, as well as trade body the Macau Their efforts included culinary workshops with Gaming Equipment Manufacturers Association, Michelin-starred chefs and promotional events. also had in place programmes to provide schol- Melco Resorts – via its “Dare to Dream” arships to higher-education students in Macau. educational programme – offered IFT year-three Each year, SJM Holdings awards scholar- students on the institute’s Bachelor of Arts in ships to certain children of employees, to fur- Culinary Arts Management degree programme, ther their higher-education studies. In 2018, the chance of a six-month internship either with the company awarded scholarships to 41 chil- the culinary team of world-renowned chef Alain dren of staff, including new scholarships to 10 Ducasse or with the equally-respected pastry outstanding students and renewed scholar- chef Pierre Hermé. The initiative enabled partici- ships for 31 young people. pants – selected via a cooking skills workshop In an effort to strengthen Macau’s position- – to join the chefs’ respective food and drink ing as a “world centre of tourism and leisure” operations at Morpheus, in the City of Dreams – as envisioned by the local authorities and Chi- Macau resort, with an additional two weeks at na’s central government – gaming companies outlets they operate in either Europe or else- were active in supporting the arts in 2018. where in Asia. The backing included support for events Macau casino investor Success Universe – such as street-art festivals and exhibitions Group Ltd, which operates the Ponte 16 casino promoting Chinese classical art forms. The in- hotel on the Macau peninsula, says it promotes tegrated resort sector also supported activities local culture via its online magazine “Macau aimed at promoting original cultural and cre- Hot Spot P16”. The company also hosts an ini- ative work within Macau. Those are policy aims tiative called “Youth’s stage”, providing young of the local government as it seeks to diversify performers with opportunities and platforms to the city’s economy. showcase their talent. Ponte 16 hosted a street “Macao Year of Gastronomy” was marked performance contest in 2018, which it said it in 2018 by the Macau government. It followed attracted more than 50 applicants from Macau the city’s inclusion – in November 2017 – as and Hong Kong.

CSR ANNUAL DIGEST 2018 19 MGM China hosts each year one of the world’s Abusers of Macao, and the Association of Parents of largest competitions for a Chinese traditional sport. In the People with Intellectual Disabilities of Macau. 2018, 29 teams from 13 countries and regions took The Macau integrated resort operators also have part in the MGM Lion Dance Championship – Macau teams in the annual Macao International Dragon Boat International Invitational. The company also organises Races, an event that is part of the city’s Dragon Boat the MGM Junior Lion Dance Training Program in part- Festival. These firms also arrange for volunteers among nership with Hong Wai Sports and Recreations Asso- their workforce to attend the races at the Nam Van ciation of Macau. The scheme has provided coaching Lake Nautical Centre in order to cheer the athletes. for 270 young people since it began in 2015. In 2018, The city’s top motor sport meeting – under the 70 children aged between five and eight participated branding the Macau Grand Prix – has strong backing in a seven-week training programme. across the gaming sector. SJM Holdings in particular The 2018 edition of the Macau Eco Trail Hiker has a strong tradition of involvement in the meeting. event received title sponsorship from MGM China. The In 2018, it was once again the title sponsor and official event has several aims: promotion of Macau’s pockets partner for the racing team known as Theodore of greenery; encouragement of teamwork; encour- Racing by PREMA. University of Macau students and agement of environmental awareness; and creating Kao Yip Middle School pupils had – thanks to SJM awareness about the value of contributing to the com- Holdings’ sponsorship – the opportunity to meet munity. The 2018 edition attracted a record 2,700 par- Theodore Racing chief executive Teddy Yip Jr. The ticipants – divided among 675 teams – with proceeds students also received a guided tour of the team’s donated to the Association of Rehabilitation of Drug garage on the home straight.

SJM Holdings was in 2018 the title sponsor and official partner for the racing team known as Theodore Racing by PREMA

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Galaxy Entertainment organised visits to the People’s Liberation Army Macau Garrison

Support for the ‘Chinese Dream’

ntegrated resort companies – firms that all rely on region in the industrial and technological, and cul- IChina’s support for their continued presence as tural and creative sectors. casino-licence holders in the Macau market – have The Greater Bay Area is an initiative by China’s in some cases run initiatives aimed at strengthening central government, which seeks to link the econ- relationships between the Macau Special omies and people of nine cities in Guangdong Administrative Region (SAR) and the ‘motherland’ province, with those of the country’s two SARs, across the border (see more on page 52). Hong Kong and Macau. An element for Beijing in bringing the two The Greater Bay Area was also one of the main communities closer is what is termed ‘national topics in a series of seminars on national education education’. This includes taking steps to instruct lo- hosted by Wynn Macau Ltd for its team members cal students about culture, arts and development in 2018. More than 460 management staff took in the rest of the People’s Republic of China (PRC). part in the seminars, according to the company. Some integrated resort operators involve them- In line with its long-standing practice, SJM selves in the process via things such as student Holdings organised in 2018 a reception to mark competitions, exchange programmes and other the anniversary of the founding of the PRC. More educational activities. than 3,600 employees attended it. Galaxy Entertainment introduced in 2018 na- Melco Resorts’ “Splendours of China” series tional education elements into its Youth Achieve- of events aims to allow company employees to ment Program. The latter is for locals aged learn about mainland China’s culture and eco- between 18 and 29. The 2018 edition of the pro- nomic policies and foster their understanding of its gramme featured a series of field trips throughout social systems and values. The initiative, launched what is known as the “Guangdong-Hong Kong- in 2016, is held in collaboration with the Liaison Macao Greater Bay Area”. Participants were en- Office of the Central People’s Government in the couraged to learn about the latest trends in the Macau SAR.

CSR ANNUAL DIGEST 2018 21 PROTECTING THE ENVIRONMENT

Sustainability is a business must, say IR operators PROTECTING THE ENVIRONMENT

NVIRONMENTAL sustainability is critical for cantly changed Macau’s landscape, and its environ- economies and communities around the ment. The city became the world’s largest single- world. Reducing greenhouse gas emissions, jurisdiction gaming centre by gross gaming revenue preserving biodiversity and natural resourc- and one of the most visited destinations in the Ees, and designing products and services to minimise world. Resort business and resort construction ex- waste are some of the strategies that businesses panded rapidly, and resource consumption skyrock- can adopt to promote environmental sustainability. eted. Nonetheless, in recent years especially, resort These important actions – when factored into every operators have worked hard to become leaders lo- aspect of operations – can help reduce the carbon cally in the promotion of environmental sustainabil- footprint of a company and help build its role as a ity, introducing new technologies and implementing socially-responsible partner in a host community. innovative practices aimed at reducing resource con- Promotion of environmental sustainability is par- sumption per unit of output. ticularly important in small places such as Macau, with While aggregate numbers for the industry might its limited natural resources and high exposure to fac- still be expanding regarding consumption of some re- tors beyond the control of its own public policy mech- sources – as the sector serves an increasing number of anisms. According to the 2017 edition of the “Report clients – Macau’s casino business is working toward on the State of the Environment of Macao” by the becoming more efficient and environmentally friendly. city’s Environmental Protection Bureau, “challenges In 2018, companies branched out via specific environ- still remain in terms of the atmospheric environment, mental initiatives. They included: creating new ways to solid waste management and water environment” in eliminate single-use plastics; encouraging resort guests the Macau Special Administrative Region (SAR). and resort workers to try meat-free meal options; ex- Following the liberalisation of Macau’s casino sec- perimenting with the use of solar panels; and setting tor in 2002, the city has witnessed a rapid growth in new benchmarks – in terms of environmental stan- the scale and scope of its gaming and tourism indus- dards – for the development of new projects. tries, with annual visitor arrivals increasing by more than 50 percent between 2008 and 2018 to almost 36 million; during the same period, the number of ho- tel rooms more than doubled from fewer than 17,000 to about 38,000. The Cotai district welcomed its first large-scale integrated resort, the Venetian Macao, in 2007, and since then – up to the time of this report – a total of eight more large resorts has opened on Cotai. The boom in Macau’s gaming and tourism indus- tries has led to strong growth in terms of local gross domestic product per capita: it doubled between 2009 and 2018. The increase in disposable income in the hands of Macau residents fuelled an increase in private consumption of goods, services and utilities, further putting pressure on Macau’s environment. Over the past 15 years, electricity consumption, solid waste disposal and water consumption in Ma- cau all showed significant growth rates, according to data compiled by the city’s Environmental Protec- tion Bureau. While the estimated annual greenhouse gas emissions for Macau had been in general de- creasing from the mid-2000s onwards, such emis- sions rose again in 2015 and 2016, according to the most recent data. The liberalisation of the casino sector and the economic development that followed has signifi-

CSR ANNUAL DIGEST 2018 23 Driving change

authorities that by May 2018 at least 15 percent of the passenger buses run by each casino licensee would be powered by clean-energy sources, either electricity or compressed natural gas. According to Macau’s Transport Bureau, by 2021 all shuttle buses operated by resort firms are expected to be compliant with the so-called “Euro V” standard or above. Euro V refers to a scale of emission standards for acceptable limits for exhaust emissions of vehicles, set by the European Union. The scale varies from Euro I (the least stringent level) to Euro VI. In a 2018 press release announcing the introduction of its so-called “new-energy” shuttle bus service in Ma- cau, resort operator SJM Holdings Ltd stated it expected the measure would “optimise Macau’s transportation, and enhance the overall environment for residents and visitors, while supporting Macau’s development into a world-class green tourism city.” 2023 Sands China Ltd asserted in a similar release that it Date by which all Macau’s six had been the first integrated resort developer in Macau to use “buses powered by compressed natural gas” resort operators are expected when it launched 30 such guest shuttle vehicles in Sep- tember 2016 for the opening of its Parisian Macao re- to use exclusively clean-energy sort on Cotai. The entire Parisian Macao fleet uses such power for their customer shuttles propulsion, according to the firm. Since 2014, Sands China has operated all-electric buses for shuttling staff. Galaxy Entertainment Group Ltd claimed in March 2018 it was the “first gaming operator to introduce ‘electric passenger buses’ in Macau.” The company said at the time it had introduced new electric buses MONG Macau gaming industry steps in 2018 to re- in “support of the environmental policies of the Ma- Aduce the sector’s carbon footprint and implement cau SAR Government and the global effort to protect more environmentally-sustainable practices, one of the the environment.” most significant was the introduction of new, environ- MGM China Holdings Ltd said that – to support fur- mentally-friendly shuttle buses for guests – either elec- ther the low-carbon development of Macau, to encour- tricity-powered vehicles or driven by compressed natural age use of electric vehicles by the general public, and to gas – and the phasing out of diesel-powered buses by improve the city’s air quality – it had installed four BMWi all six resort operators. and four Tesla charging stations in the parking area of its The move is in line with the Macau government’s integrated resort MGM Cotai, a property opened in Feb- vision of “Building a Low Carbon Macao, Creating ruary 2018. There resort visitors can charge their electric Green Living Together” proposed in “Macao’s En- vehicles cost-free. In 2018, the firm also purchased six vironmental Protection Conceptual Planning (2010- electric buses said to have zero emissions. They became 2020)”. It was also in response to government calls for operational in November 2018 and are being used on the industry to support “green” transport. The local several routes between MGM China properties and resort operators had made a commitment to the local boundary crossing points in and out of mainland China.

24 CSR ANNUAL DIGEST 2018 PROTECTING THE ENVIRONMENT

Earth Hour 2018: Sands China shut down non-essential lights at its Cotai venues

Saving energy

HE industry is also pioneering what is termed back-of-house areas. Wynn Macau Ltd and MGM T“smarter” energy usage. Energy is the main China also report having achieved energy consump- contributor to climate change, accounting for 60 tion reductions via LED lamp replacement projects percent of total global greenhouse-gas emissions, undertaken in recent years. according to the United Nations (U.N.). Using energy more efficiently is essential to mitigate and, if possible, arrest climate change and to reduce a company’s overall environmental footprint. The introduction of light-emitting diode (LED) lighting to replace older, less energy-efficient equip- ment has been a key trend in Macau’s gaming indus- 26.3 MLN KWH try in recent years. According to resort operator SJM Holdings, its Grand Lisboa property achieved energy Estimated energy savings by resort savings of approximately 384,783 kW in 2017, after operator Sands China in 2018 replacing fluorescent tubes and incandescent light bulbs with LED lights, both for front-of-house and

CSR ANNUAL DIGEST 2018 25 Sands China says that – as of 2018 – in aggre- In 2018, the Macau casino industry continued its gate 98 percent of the lighting in its hotel suites and practice of launching and participating in initiatives other operational areas was based on LEDs and other aimed at raising awareness about energy conserva- energy-saving technologies. tion among staff, clients and the wider Macau com- The use of automated, “intelligent” building man- munity. A number of firms supported the annual En- agement systems is also contributing to improvements ergy Saving Week 2018, promoted by the Office for in environmental efficiency across the industry. At the Development of the Energy Sector (GDSE). All six Melco Resorts and Entertainment Ltd, such systems resort operators took part in the local version of ‘Earth – including tracking the outdoor ambient tempera- Hour’, an annual initiative that is organised globally by ture to adjust the temperatures of chillers serving the the World Wildlife Fund (WWF). It involves the firms firm’s buildings; and using heat generated from the air switching off all non-essential lights for an hour and conditioning system to warm water – helped the firm spreading awareness of the importance of combat- achieve a 3-percent reduction in total greenhouse gas ting climate change. Some gaming-related properties emissions in 2017 compared to the previous year. are now hosting an ‘Earth Hour’ on a monthly basis.

ENERGY CONSUMPTION INDICATORS FOR MACAU RESORT OPERATORS IN 2018

Operator Total energy consumption Total greenhouse gas emissions (CO2e) Galaxy Entertainment Group Ltd 1.5 million gigajoules 301,446 tonnes Melco Resorts and Entertainment Ltd1 505,269 mWh 19,781 tonnes MGM China Holdings Ltd 215.7 million kWh 144,264 tonnes Sands China Ltd2 5.2 million gigajoules 775,552 tonnes SJM Holdings Ltd3 75.2 million kWh 56,932 tonnes Wynn Macau Ltd 352,892 mWh 249,614 tonnes

1 Includes City of Dreams Manila, in the Philippines, and the corporate offices of Melco International Development Ltd 2 Includes CotaiJet ferry operations 3 Includes only casino-hotel Grand Lisboa Source: Extracted from company reports; different data collection methods might be used by different operators

Water-saving measures

HE casino industry also continued implementing In an effort to stop unnecessary inflow of water to its Ta wide-range of water-saving measures in 2018. properties, Sands China introduced a pilot scheme using They included: water recycling and reuse programmes; what is described as new technology for hand washing at redesign of processes for dealing with water, including staff dining facilities. The aim was to save water and en- use of more efficient taps in back and front-of-house sure better sanitation. This technology is said to be able to washrooms; and encouraging – as corporate actors – reduce water use by more than 50 percent during hand changes in the wider community regarding the way washing. The company is now considering introducing water consumption is perceived. such know-how across all its Macau properties.

26 CSR ANNUAL DIGEST 2018 PROTECTING THE ENVIRONMENT

Melco Resorts says it has put in place measures to contribute to a greener Macau

Melco Resorts reports using a rainwater recovery system at its integrated resort City of Dreams. It uses water collected in order to irrigate the landscaping 3 around the property. The system has the capacity to 3.27 M /SQUARE collect 250 cubic metres of water each year, accord- ing to the firm. METRE SJM Holdings introduced in 2017 a water man- Water consumption intensity agement platform and water reduction plan to man- age the use of that resource more efficiently. The reported by Galaxy Entertainment company has implemented two specific measures: a new filtration system that uses and reuses water in in 2018 its swimming pools; and installation of water-saving

CSR ANNUAL DIGEST 2018 27 devices. These include automatic sensors in taps, ter, Wynn Macau Ltd has been implementing several water-saving showerheads and dual-flush lavatories. water-saving initiatives, with more efficient taps in- MGM China said that throughout 2018 it in- stalled in both back and front-of-house restrooms. creased the scope of its water-recycling programme. Galaxy Entertainment is also introducing water ef- It recycles condensation from the firm’s air-handling ficiency measures to reduce consumption across its units, as well as the cooling tower ‘bleed-off’, re- properties. The installation of the new water fixtures using them for toilet flushing. The firm reported in and fittings decreased the company’s water flow 2018 that it utilised fewer than 3 cubic metres of rate in 2017 by 40 percent. water per square metre of building space – the low- More than 40 percent of the global population est intensity of water use since its baseline year of experiences scarcity in water supply, according to 2013. the U.N. The percentage of those affected is pro- In an effort to help mitigate the waste of wa- jected to rise in the coming years.

TOTAL WATER CONSUMPTION FOR MACAU RESORT OPERATORS IN 2018

Galaxy Entertainment Group Ltd 4.1 million m3 Melco Resorts and Entertainment Ltd1 3.3 million m3 MGM China Holdings Ltd 662,923 m3 Sands China Ltd 6.9 million m3 SJM Holdings Ltd2 745,863 m3 Wynn Macau Ltd 2.5 million m3

1 Includes City of Dreams Manila, in the Philippines, and the corporate offices of Melco International Development Ltd 2 Includes only casino-hotel Grand Lisboa Source: Extracted from company reports; different data collection methods might be used by different operators

Waste not, want not

ASTE is a significant concern for Macau’s gam- In order to reduce food waste, resort operators Wing industry, with food waste in particular being across Macau are adopting composting programmes to one of the biggest challenges. A priority during 2018 turn kitchen scraps into reusable materials and thus di- was the role each consumer and staff member can play vert food waste from incineration. Compost can be rich in reducing food waste. Resort companies particularly in nutrients. Forms of compost are used, for example, encouraged team members to tackle this problem. in gardens, landscaping and organic farming. The pro- Initiatives included “Clean Plate” at Sands China and cess of composting is said also to avoid the methane “Let’s Fight Food Waste Week” at MGM China. gas emission that would otherwise be generated if such Also high on the agenda was the eradication of sin- food scraps went to landfill sites untreated. gle-use plastic items such as bottles, straws, plates, cups, At casino hotel StarWorld Macau, operated by take-out boxes and utensils, via plans – initiated from 2019 Galaxy Entertainment, the installation of a food- onwards – to replace them with more eco-friendly options. waste processing machine has helped reduce waste

28 CSR ANNUAL DIGEST 2018 PROTECTING THE ENVIRONMENT

volume. The material generated is later processed by third parties into fish feed. Wynn Macau Ltd too operates a composter to re- duce food waste. Such waste is said to account for approximately 42 percent of the Macau operator’s total waste at point of operations. Melco Resorts says it aims to achieve “zero-waste resorts” by 2030. That means, according to the com- pany, “sending no waste to landfill or incinerating waste without energy recovery”. In 2018, the majori- ty of the firm’s waste – a total of 11,270 tonnes – was incinerated with energy recovery. During that period, waste to landfill tonnage by Melco Resorts decreased by 16 percent in year-on-year terms, while waste sent for composting more than doubled. Sands China produced in aggregate approximate- ly 36,800 tonnes of waste in 2017. The group says it spent much of the following year taking active mea- sures to increase the amount of waste it diverted to systems of sustainability. In 2018, the company re- ported it had successfully diverted more than 4,200 0.002% tonnes of waste through recycling alone. Percentage of total waste MGM China added in 2018 new streams to its recycling programme: it initiated a helmet and safety produced by MGM China in 2018 gear recycling campaign for reusing and recycling such equipment; and, in partnership with Nespres- that was labelled as ‘hazardous so, launched a coffee capsule recycling scheme to waste’ collect capsules from hotel rooms, restaurants and company offices.

Role of transparency

N recent years, the practice of corporate sustain- dance with the Global Reporting Initiative (GRI) – a Iability disclosure has increased dramatically, as has non-governmental organisation – while some are stakeholder demand for sustainability data. Regula- aligning their measurements with the requirements tors in Macau, stock exchanges, investors, consum- of Hong Kong. ers and local organisations have been asking – in GRI standards define environmental sustainabil- a manner and scale that is unprecedented – that ity as an organisation’s impact in relation to land, the casino industry measure and disclose its perfor- air, water and ecosystems. GRI gives companies a mance. The thinking behind this and other initiatives comprehensive set of reporting tools to measure the seems to be that having transparency in disclosure of amount of energy and water that they are consuming information boosts sustainability efforts. as well as their waste and greenhouse gas output. Many gaming-related firms are now measuring Melco Resorts, MGM China and Sands China, and disclosing their environmental data in accor- three of Macau’s largest resort companies, have

CSR ANNUAL DIGEST 2018 29 gone further, adhering to the U.N. Sustainable De- initiative is supported by Hong Kong Exchanges and velopment Goals (SDGs). The 17 SDGs of the 2030 Clearing Ltd, which recommends firms listed on the Agenda for Sustainable Development are designed local bourse share their environmental impact data to address the global challenges of climate change, through an Environmental, Social and Governance inequality and poverty. Reporting Guide. It stipulates that listed compa- In Hong Kong, the Environmental Protection nies should report their greenhouse emissions, ex- Department has created a Carbon Footprint Reposi- plain the measures adopted to reduce emissions tory online platform for companies. This disclosure and demonstrate what was achieved. Five of the

Innovative green programmes

uring 2018, sustainability initiatives included the elimination of single-use plastic; the promotion of D“green” diets; and experimentation with solar energy. Single-use plastics

n 2018, MGM China an- Inounced it would be elimi- nating all plastic items includ- ing straws, plates, cups, food takeaway containers and take- out utensils from its restaurant outlets, replacing those items with eco-friendly alternatives by 2019. Straws are only provided on request. Upon the policy’s full implementation, the company estimat- ed that it would be eliminating more than 860,000 plastic straws and more than 470,000 food takeaway plastic containers over the course of a year.

‘Green’ diets

ands China launched in 2018 a ‘Green Monday’- Sthemed initiative in its dining rooms for back-of- house staff, in collaboration with Green Monday, a social enterprise group that seeks to promote globally what it terms green, healthy and sustainable living. On Mondays the menu included extra servings of veg- etables. In addition, the firm arranged for nutrition- ists, doctors, and other health professionals to provide advice to its team members. Sands China says the scheme is expected to decrease global CO2 emissions related with meat production by nearly 22.7 tonnes a day. Other resort operators in Macau have also intro- duced ‘Green Monday’-themed initiatives.

30 CSR ANNUAL DIGEST 2018 PROTECTING THE ENVIRONMENT

six Macau resort operators are listed on the Hong Kong Stock Exchange; Melco Resorts is listed in the United States, but its parent Melco International Green building Development Ltd is listed in Hong Kong. Several other gaming-related firms – including satellite ca- he MGM Cotai integrated resort – owned sino operators, gaming equipment suppliers and Tand operated by MGM China – is report- junket-related firms – are also listed on the Hong edly the largest in Macau to achieve the China Kong Stock Exchange. Green Building Design Label Three-Star Certi- fication. The scheme is described as the first national standard for green buildings in China. It was established in 2006 under the Ministry of Housing and Urban-Rural Development. The certification is based on measuring the green credentials of projects by assessing them from the design phase through to construction. It does so against a number of criteria, including how sustainable is the project’s consumption of utilities’ products. MGM China has said it incorporated green building techniques in MGM Cotai’s design, development and construction processes. Experimenting with solar energy Those techniques included: use of a high- tech, energy-efficient, air-conditioning system; entirely-LED lighting; introduction of low-flow elco Resorts has teamed with a local firm water fixtures and fittings; use where possible to develop what is said to be Macau’s larg- M of recyclable and locally-sourced construction est solar array. It includes installing more than materials; and advanced systems for mainte- 18,000 solar photovoltaic panels covering close nance of indoor air quality. to 30,000 square metres of rooftop space at two “By making these changes, we can reduce integrated resorts: City of Dreams and Studio the amount of waste being sent to Macau’s City. Once fully operational, the combined sys- incinerators, improve air quality, and protect tem is expected to have the capacity to generate the environment for the next generation,” says a total of nearly 7.7 million kWh of energy per MGM China. year. Each year, the scheme is expected to reduce CO2 emissions by more than 6,000 tonnes. Sands China installed solar window films across its properties, including at the link bridge and restaurant at the Eiffel Tower in 2017. This helped to block solar heat, while also cutting out electricity usage and carbon footprint. Galaxy Entertainment and Wynn Macau Ltd are also looking at solar energy to power operations. At StarWorld Macau, Galaxy Entertainment installed a solar power system for the property’s rooftop light- ing, enhancing annual energy savings. In 2017, Wynn Macau Ltd conducted a feasibility study to install a one megawatt photovoltaic system on the rooftop of Wynn Macau.

CSR ANNUAL DIGEST 2018 31 ETHICAL GAMBLING

Protecting the most vulnerable players ultimately helps IR industry, say operators ETHICAL GAMBLING

AMBLING is for most people a form of volving a number of campaigns each time. The 2018 entertainment, but it can affect the lives edition was a significant one, as that year marked the of some in a negative way. The field of 10th anniversary of the Macau government’s launch responsible gaming is a broad one, with of responsible gaming campaigns. Responsible Gam- Ginput from casino operators and authorities licensing bling Awareness Week initiatives are designed to in- casino operations, as well as from the players them- form gaming employees and the Macau community selves and other industry stakeholders. Responsible about the dangers of gambling addiction. gaming includes policies and initiatives aimed at mak- In 2011 the Responsible Gaming Working Com- ing sure gaming firms follow high standards when mittee and the Central Registry System of Individu- it comes to minimising potential risks to consumers als with Gambling Disorder were established. The stemming from gaming. Responsible Gaming Working Committee is made up Many changes have taken place in the Macau ca- of government officials, scholars and representatives sino sector in the nearly two decades since market lib- from the integrated resort industry. eralisation brought an end to the previous monopoly The most recent data from the city’s Social Wel- arrangements. The scale and availability of new prod- fare Bureau showed that a total of 133 people had ucts and services is greater than ever before. Such registered with Macau’s Central Registry System of developments have raised concerns in the local com- Individuals with Gambling Disorder in 2018. The tally munity regarding problem and compulsive gaming. was down 15.3 percent from the previous year and Over the years, Macau’s authorities and the city’s the lowest figure on record in any year since the cen- casino sector – including integrated resort opera- tral system was launched. tors and gaming suppliers – have claimed significant progress in reducing risk of harm from gaming. Such progress is said to involve innovation in the way they create and deliver awareness and information pro- grammes, and the way enhanced safeguards are pro- moted within the sector. Government policies aim to ensure gaming is a safe experience and that those engaging in it are pro- tected from the risk of negative consequences. Public policies also seek to ensure that integrated resort op- erators provide the necessary support to consumers so that they can enjoy gaming in a sensible manner. Those steps have included programmes to broad- en public awareness of gaming-related harm, espe- cially for the young and other vulnerable groups. Oth- er steps have involved creating and training teams of INITIATIVES PUT IN workers within the industry, to promote responsible gaming; creating counselling kiosks and setting up PLACE BY THE MACAU hotlines; and helping those who do develop gaming- GAMING SECTOR related problems get the support they need quickly and effectively. • Promotional campaigns Macau’s gaming regulator, the Gaming Inspection • Responsible gaming messaging and Coordination Bureau – a body also known by its • In-house teams dedicated to respon- Portuguese acronym DICJ – works closely with the sible gaming city’s integrated resort operators and civic organisa- tions to prevent problem gambling. • Training for team members Since 2009, the DICJ, the Social Welfare Bureau • Counselling centres and hotlines and the Institute for the Study of Commercial Gaming • Customer engagement (ISCG) at the University of Macau have been hosting • Self-exclusion programmes annually a Responsible Gambling Awareness Week in-

CSR ANNUAL DIGEST 2018 33 MGM China has formed responsible gaming operations teams to educate its employees

Raising awareness

S Macau has developed into the world’s largest DICJ and the University of Macau. The event’s initia- Asingle-jurisdiction gaming centre by gross gaming tives aim to manage potential harm associated with revenue, gaming firms say they have strengthened gambling by creating a responsible gaming environ- their efforts with regard to minimising harmful effects ment, as well as to educate and inform customers on the community, and have been working closely and employees about the potential harm associated with government bodies and non-governmental or- with gaming. ganisations to develop initiatives to develop aware- Sands China Ltd launched its self-exclusion pro- ness about responsible gaming. gramme in 2004. In 2007 it launched a responsible Efforts by integrated resort operators in this re- gaming programme designed to address social issues gard are said to include awareness programmes – and to develop a culture of responsible gaming in Ma- and if necessary counselling – for employees as well cau. In 2016, Melco Resorts claimed to be the first as guests. Information on responsible gaming is also operator in Asia to deploy real-time facial recognition displayed in most properties, in customer areas as security systems at every entrance to its gaming areas well as back-of-house ones. Such efforts encompass in Macau, assisting self-exclusion. information stations and kiosks located throughout In an effort to ensure its gaming promotions for the properties, promoting responsible gaming. tourists are conducted in a suitable way, Wynn Ma- Macau’s integrated resort operators report they cau Ltd provides in casino areas, at ATMs, in shuttle actively participate in community-wide events on re- buses and at smoking lounges in its casinos, messages sponsible gaming. This includes supporting the Re- about responsible gaming. sponsible Gambling Awareness Week annual event, Melco Resorts and Entertainment Ltd has estab- which is organised by the Social Welfare Bureau, the lished a Responsible Gaming Policy to minimise risks

34 CSR ANNUAL DIGEST 2018 ETHICAL GAMBLING

associated with problem gambling. The company in- centres, in order to boost awareness regarding prob- troduced last year The Art of Living, a campaign to lem gambling. In 2018, Galaxy Entertainment Group communicate specifically to women the importance Ltd’s Responsible Gaming Team visited several social of responsible gaming. It offers complimentary work- service establishments in Macau and Hong Kong, al- shops open not only to team members, but also to lowing team members to acquire an understanding the Macau community. of how such facilities assist individuals struggling with Companies in the Macau casino sector have also problematic behaviour relating to gaming, and with been arranging team member visits to social service financial problems.

Macau Gaming History Gallery

JM Holdings Ltd introduced in 2018 a Ma- card handlers, storage boxes for Keno lottery Scau Gaming History Gallery to the public. balls, traditional discard holders for storing The gallery is designed to present Macau’s used or damaged cards, and tombola cages. gaming history while promoting responsible SJM Holdings established the gallery in the gaming. It is located at Hotel Lisboa. The hope that it would provide a lasting reminder gallery is run by the company and exhibits of an important part of Macau’s history and 1970s-era slot machines, manual dice shak- serve as a reference point for further develop- ers, old-fashioned card shoes and wooden ment in the local market.

SJM Holdings executives attending the opening of the Macau Gaming History Gallery

CSR ANNUAL DIGEST 2018 35 Importance of training

NTERNATIONAL research suggests casino industry Iemployees often exhibit higher rates of problem gambling compared to the general population. Ma- cau’s Social Welfare Bureau said it had received 157 32,000 requests for assistance in 2017 regarding problem gaming in the city, with about 30 percent of the cases Training hours on responsible involving casino employees. gaming provided by MGM China Staff training on responsible gaming is described by Macau’s integrated resort sector as a central part for its team members since 2012 of its safeguarding framework. Responsible gaming training is mandatory for employees during the ori- entation phase of their arrival to any integrated resort operator. Regular refresher training is also provided. Each year, these companies are also said to or- ganise for employees a series of awareness activities Some of the Macau-based operators, such as in relation to responsible gaming. The idea is to help MGM China Holdings Ltd, have formed responsible workers identify problem gamblers and put in action gaming operations teams, consisting of employees measures to prevent problem gambling. who are specifically trained to identify problem gam-

Melco Resorts says it provides compulsory responsible gaming training to its employees

36 CSR ANNUAL DIGEST 2018 ETHICAL GAMBLING

Galaxy Entertainment has organised training courses for the company’s Responsible Gaming Committee bling behaviour, to file self-exclusion forms on behalf Committee. The company also holds Responsible Gam- of any customers wishing to use that mechanism, and ing Online Training programmes once every two years. to liaise with counselling agencies. MGM China has Since their launch in 2013, 26,000 employees have also established a Responsible Gaming Committee, taken part, according to Galaxy Entertainment. made up of senior managers. Last year the firm held Other Macau casino-sector firms are also keen on a two-week heart-of-house campaign themed ‘Gam- promoting a systematic approach to the field of re- bling is Not Business, Stay in Control’. More than sponsible gaming. Global gaming supplier International 1,300 team members participated in the initiative at Game Technology Plc (IGT) states that responsible gam- the company’s MGM Macau and MGM Cotai proper- ing is fundamental to its business success and CSR initia- ties, according to the firm. tives, giving the company an opportunity to work with Sands China has created what it calls Responsi- its stakeholders in relation to responsible gaming, re- ble Gaming Ambassador Walls in back-of-house ar- fresh its advertising practices and engage employees in eas to acknowledge the company’s team members expanding the gaming industry in a responsible manner. that have completed an advanced training course IGT has also set up a Responsible Gaming Working in awareness of problem gambling and the value of Group, which includes experts in specific subject areas responsible gaming. Since 2013, approximately 530 within the company’s many departments at the global Sands China team members have completed the Re- level. The Responsible Gaming Working Group helps sponsible Gaming Ambassador programme. It has de- incorporate responsible gaming features into products livered a total of 3,200 hours of instruction, according and training programmes for staff and customers, as to the firm. well as placing them within internal and external com- In 2018, Galaxy Entertainment invited representa- munications. The gaming supplier said that during 2018 tives from the University of Macau’s ISCG and the Sheng it focused its efforts on creating new training courses in Kung Hui Professional Training Centre to deliver a train- line with an evolving gaming market, and on enhancing ing course for 15 members of its Responsible Gaming relevant skills for various levels of employees.

CSR ANNUAL DIGEST 2018 37

HELPING SMEs PROSPER

IR operators say trying to create a win-win for local small businesses HELPING SMEs PROSPER

MALL and medium-sized enterprises (SMEs) Small businesses in Macau include traditional in Macau operate in a complex business SMEs. There are also some designated as focusing on environment. Macau’s economic boom “Made in Macau” activities, i.e., dealing in goods or since the liberalisation of the city’s casino services originating in Macau. Additionally, there are Sindustry has brought fresh opportunities but has ones that come under the general classification of in- also created some new challenges for local SMEs, volving “Macau Young Entrepreneurs”. including the recruitment and retention of staff. The Macao Chamber of Commerce launched an Despite that, many are prospering, and the city’s SME procurement partnership programme in 2015 to integrated resort industry has some claim to being promote business-matching sessions between inte- a positive influence. grated resort operators and local suppliers. According to the Small and Medium Enterprises The Macau Productivity and Technology Transfer Association of Macao, SMEs represent more than Centre (CPTTM), a non-profit organisation jointly es- 95 percent of the aggregate number of companies tablished by the Macau government and the private in the city, and they are key to driving the city’s sector, also serves to assist SMEs. economic diversification and ensuring sustainable The Macau government’s Policy Address for 2018 growth. With support from the city’s government stressed that since a majority of Macau companies and from local trade groups, partnerships between was in the SME sector, one of the government’s chief SMEs and the integrated resort sector have been policies would be to focus on their development. on the rise in recent years. Thanks to a number of support initiatives, the city’s six integrated resort operators have in aggregate been increasing each year the amount of goods and ser- vices they procure from local SMEs. Macau’s gaming sector has implemented measures to prioritise sourc- STRATEGY OF ing goods and services from local SMEs and to ensure – via “green procurement” policies – that the resorts SUSTAINABLE operators’ procurement effort is sustainable. PROCUREMENT In an effort to boost the competitiveness of local SMEs resort operators are partnering with the gov- This approach, as described by ernment, local business chambers and Macao SMEs the Organisation for Economic Co- to hold special events. Such activities aim respectively to: share knowledge; develop business-matching operation and Development (OECD), sessions; promote workshops; create competitions aims to raise awareness regarding stimulating innovation; and provide a bridging role the value of including certain socio- between local SMEs and businesses and potential economic criteria in the procurement customers in either mainland China or Portuguese- process. The goals include: language countries.

• Reducing the consumption of resources, utilities and energy • Avoiding waste and polluting emissions • Minimising environmental costs • Increasing the transparency of costs • Fostering innovation • Creating “green jobs” • Increasing quality of products and services • Making suppliers strategic partners SME representatives tour back-of-house at MGM Cotai to learn more about the resort’s supply chain work.

CSR ANNUAL DIGEST 2018 39 Support programmes

LL six of Macau’s integrated resort operators A– in partnership with the Macao Chamber of Commerce, other local organisations, and Macau government departments – have SME support 129 programmes designed to act as bridges to create partnerships with local businesses. The majority of New SME partnerships established such schemes was launched between 2015 and 2016. by MGM China in 2018 MGM China launched in 2015 an “SME Engage- ment Program” and a “MGM SME Advisory Commit- tee”. The latter is said to involve key MGM China deci- sion makers, local business representatives, non-profit organisations, and scholars, and provides guidance in products to MGM Resorts’ operations in the United terms of implementing the SME Engagement Program. States and elsewhere. The goal is to help Macau- In 2018, an aggregate of 80 percent of the com- based SMEs do business internationally. pany’s procurement was with local SMEs, according to Sands China’s “Local Small, Medium and Micro MGM China. The company says that in 2018 it created Suppliers Support Programme” was created with the 129 new SME partnerships and spent more than MOP1 Macao Chamber of Commerce in 2015 to promote billion (US$123.8 million) with SMEs, an increase of 48 the concept “buy local”. Sands China says that in percent in total spend compared to 2017. 2018 it spent MOP10.9 billion on procurement, and The company has also been identifying suitable of that, 77 percent or MOP8.4 billion was spent on local SME vendors and providing recommendations products and services from local companies. to its parent company, United States-based MGM Re- Wynn Macau Ltd introduced in 2016 a “Local SME sorts International, for such companies to supply their Procurement Partnership Program” with the Macao

Sands China provides space at its properties for selected SMEs to showcase their products to company team members

40 CSR ANNUAL DIGEST 2018 HELPING SMEs PROSPER

Chamber of Commerce, as well as business-matching of professionalism. Melco Resorts says it continues – sessions held quarterly to support purchases of food on a proactive basis – to form partnerships with SMEs and beverage services and of hotel-related equipment via activities such as “vendor experience tours”, busi- and supplies. The company also launched in 2018 the ness-matching sessions and other workshops. Wynn SME Development Support Scheme, to provide SJM Holdings Ltd launched in 2016 its “SJM and financial support for Macau SMEs that are facing Macau SME Procurement Partnership Programme” difficulties with their logistics. The idea is to reduce with the Macao Chamber of Commerce. That same pressure on the operations of relevant SMEs. year, the company invited local SMEs to take part in Galaxy Entertainment Group Ltd has in place what its “Dealer Uniform Design Contest” for Grand Lisboa it calls a “Large-Businesses-Leading-Small-Businesses” Palace, with the support of the CPTTM, the city’s pro- approach to assisting SMEs. The company launched in ductivity promotion centre. 2016 – together with the Macao Chamber of Commerce All six Macau operators respectively organised – a “Local SME Procurement Partnership Program”. It is during 2018 back-of-house roadshows for local SME also supported by some Macau government departments suppliers. They aimed to provide additional business and aims to boost trade involving local SMEs. Using such opportunities for local SMEs, micro-enterprises, young channels to build relationships with other companies op- entrepreneurs, and “Made in Macau” enterprises and erating in the city, has meant that “currently, local enter- thus support local SME growth and procurement at prises and SMEs account for the majority of Galaxy Enter- local level generally. tainment’s suppliers”, the firm says. Integrated resort operators also have their own Melco Resorts and Entertainment Ltd and the supplier award initiatives, recognising respectively Macao Chamber of Commerce launched in 2016 the some of their best suppliers in various fields. These ac- “Macau SME Procurement Development Program”. It tivities encourage existing vendors to build a broader aims to provide fresh business opportunities to local business network, opening up more opportunities for SMEs and help them improve productivity and levels cooperation between local SMEs and resort operators.

Business-matching sessions

ACAU’S integrated resort operators have Mlaunched business-matching sessions as platforms for local suppliers to present and demonstrate to the operators the types of product and service they offer. US$1.04 BLN These sessions aim also to promote “Made in Macau” companies and the city’s young entrepreneurs. The amount Sands China spent In 2017, Sands China partnered with six local in 2018 on procurement of local banks to provide financial support for local SMEs, as part of its F.I.T. (Financial Support, Invitational SME goods and services Matching, and Training and Development) programme. One of Sands China’s invitational matching sessions in 2018 focused on food and beverage, facilities management, and supplies and the food and beverage, gaming, hotel facilities, equipment for hotel operations. A total of 22 local and hotel operations departments. Members of SMEs was asked to the event, and the firms were the Macau Hotel Association and procurement able to connect directly with around 200 buyers representatives from Marina Bay Sands in Singapore of goods and services users from within the Sands – a resort promoted by Sands China’s parent Las China business. The buyers represented respectively Vegas Sands Corp – also took part, thereby providing

CSR ANNUAL DIGEST 2018 41 More than 110 representatives from local SMEs attended MGM China’s business-matching session in November 2018 potential for additional business opportunities for termath of Typhoon Hato. There was in some cases Macau SMEs. a speeding of payment processing to suppliers and Wynn Macau Ltd hosted two business-matching provision of logistical support. sessions in 2018 in partnership with the Macao MGM China’s November 2018 business-match- Chamber of Commerce. Each event attracted ap- ing session attracted over 110 SMEs. Four Macau proximately 200 representatives from local SMEs. banks also took part in order to provide – at the The SMEs were also invited to back-of-house areas event – financial services to SME vendors. In 2018, to learn about the company’s supply chain opera- representatives of MGM China also met with mem- tions and its needs. bers of the Macau Union Suppliers Association, a In recognition of the negative effects wrought on lobby group set up in 2011 to represent the interests some local SMEs by “Super Typhoon” Hato in 2017, of Macau SMEs. The purpose of the consultations Wynn Macau Ltd formed a partnership with the was to see how MGM China could strengthen its Bank of China to implement the “Wynn Local SME cooperation with the association regarding develop- Typhoon Hato Financial Support Program”. Under it, ment of environmentally-sustainable practices in the SMEs were able to apply for loan assistance. Several local supply chain. other of the city’s integrated resort operators also Melco Resorts organised in 2018 what it termed implemented measures to help local SMEs in the af- a “vendor experience” tour of the Studio City inte-

42 CSR ANNUAL DIGEST 2018 HELPING SMEs PROSPER

grated resort for local SMEs from various industries, linary heritage. The event, held in partnership with together with a business-matching session. The in- local SMEs, gathered more than 50 professionals terchange also featured what the company called a from the food and drink sector. The company has “sharing session” enabling the SMEs to learn more also invited local SMEs to open outlets in the Broad- about Melco Resorts’ sourcing needs and standards. way Food Street at Broadway Macau. In 2018, SJM Holdings continued its support for Galaxy Entertainment says it has taken these ini- local companies, prioritising purchases from local tiatives in order to support modernisation of busi- SMEs. The company had a total of 1,250 local sup- ness among traditional food and drink brands from pliers registered with it as of December 31 that year. Macau. At the same time the resort operator has SJM Holdings also launched in 2018 a programme to sought to raise awareness among those traditional aid those local SMEs running restaurants affected by firms about the importance of brand heritage. Gal- Typhoon Hato. The resort operator did so by distrib- axy Entertainment has offered these companies ad- uting coupons to residents and visitors. The vouch- visory services and technical support, while helping ers offered discounts in those restaurants. them establish and promote their brands. The com- A “Local Culture & Food Festival” was staged in pany says that nearly 60 percent of the SMEs with 2018 at Broadway Macau – a property operated by whom it currently collaborates are “renowned and Galaxy Entertainment – to promote Macau’s rich cu- traditional” brands in Macau.

Resort services sector and sustainability

ompanies directly involved in supporting ers are located in Macau – says it encourages all CMacau’s integrated resort operators – such business partners to develop business practices as casino services firms and gaming equipment for energy-saving as well as policies for reduc- manufacturers – are also keen to promote sus- tion of consumption. This is so both sides can tainability in their procurement processes. As work together in the group’s pursuit of sustain- well as requiring their suppliers to comply with able development. all the applicable regulations in the places they Global suppliers of gaming equipment have do business, they also seek to mitigate the envi- also put in place what are termed supplier-di- ronmental impact of their respective operations. versity programmes, to ensure they work with Paradise Entertainment Ltd, a maker of ca- local providers that can supply quality materials sino equipment and a casino operations manag- and services. er, says it promotes green and environmentally- International Game Technology Plc (IGT) says friendly procurement in its operations. Its own it designs and manufactures products that are suppliers are required to adhere to the group’s compliant with environmental requirements in environmental, social and governance policies. the markets where it has a presence. The group’s Casino services firm Macau Legend Develop- environmental compliance policy encompasses ment Ltd also states that it incorporates environ- product design, sourcing, warehousing, manu- mental concerns in its procurement from local facturing, reconditioning, and delivery. Such ser- suppliers. This is in order to ensure its products vices might be provided by local suppliers in each and services cause “minimal adverse environ- jurisdiction where it operates. Scientific Games mental impacts”, it says. Corp states that – thanks to a supplier-diversity Macau casino investor Success Universe programme – it provides economic and business- Group Ltd – which states that most of its suppli- development opportunities for its local suppliers.

CSR ANNUAL DIGEST 2018 43 Green procurement

LL six integrated resort operators in Macau for sustainable sourcing, covering three key cat- Ahave engaged in efforts to source products and egories – cotton products, seafood, and cleaning services that are generated in ways sustainable for products. The group plans to add other categories the environment, and that can be used in a sus- of goods to the list in future. The company con- tainable way. This involves the operators develop- ducted also a workshop introducing to local SMEs ing fresh strategies for the respective supply chains some of its initiatives in support of sustainability. serving their properties and corporate offices. Such They include its “Green Key Awards”, achieving effort covers how supplies are produced, how they ISO certification, and adopting the latest concepts are delivered, how they are used, and how they are relating to procurement sustainability. ultimately either disposed of or recycled. Sands China’s ECO360 strategy and its Sustain- Integrated resort operators are thus consider- able Procurement Policy examine management of ing the entire life cycle of the products they use environmental and social risks within the compa- every day and identifying ways to reduce their en- ny’s supply chain, in order to conserve resources, vironmental impact. They seek to achieve this by maximise recycling and reduce the possibility of establishing environmental standards that are ap- toxic materials entering the environment. Sands plicable to suppliers during the bidding and con- China also encourages its suppliers to strive for tracting process. innovation – ‘green’ ideas – in relation to the sus- Melco Resorts implemented in 2018 guidelines tainability of their products and services.

Education in procurement

ntegrated resort operators regularly organise international presence. As of 2018, representa- Iworkshops and training programmes to equip tives of 115 local SME suppliers have graduated local SMEs with an overview of the operators’ re- from the academy, according to Sands China. spective strategic sourcing processes. These ini- Macau integrated resort operators have also tiatives are intended to explain key activities and been working with the city’s productivity centre, methods used, to ensure efficiency and commu- CPTTM, in co-organising workshops on how to nity benefit via the procurement process, and to expand the business of local SMEs and how to enable collaboration between large enterprises ensure Macau’s long-term growth as a “world and local SMEs. centre of tourism and leisure” a policy aim of the One such example is the Sands Procurement local government. The resort operators individu- Academy, an initiative of Sands China for local ally also provide tailor-made training courses and SME suppliers. It was designed for existing and activities for local SMEs to support them develop new local suppliers serving the resort operator. and expand their respective businesses. The aim The Academy’s programmes aim to share the re- of such effort is to help SMEs understand a va- sort operator’s business experience and skills with riety of operational models, the importance of its suppliers, to the benefit of both sides. Such ef- operational efficiency, potential risks and chal- fort includes developing the capacity of the sup- lenges, and the optimal approaches to try to pliers to work with large-sized customers with an achieve success.

44 CSR ANNUAL DIGEST 2018 HELPING SMEs PROSPER

83% Of Melco Resorts’ procurement from 2016 to 2018 was from Macau businesses

Wynn Macau Ltd says it aims to build long-term and mutually-beneficial partnerships with local SMEs. The company continues to interact with its suppliers to ensure proper procurement practices are in place. The group says it procures goods and services from local sources in order to support Ma- cau’s SMEs, develop local workforce skills and to minimise the resorts operator’s carbon footprint. The company launched in 2017 its “Wynn Local SME Network,” an initiative designed to foster the development of local SMEs by coordinating efforts Melco Resorts organises workshops to help SMEs improve productivity made by all sectors of society.

Driving innovation

ntegrated resort operators say they are also while also promoting business collaboration be- Isupporting innovation in procurement via tween local SMEs and large companies. initiatives including competitions to create rel- In 2018, MGM China sought to simplify evant mobile apps, and via creation of more the purchase of its office materials engaging efficient purchasing systems. with a local stationery supplier known as New Wynn Macau Ltd commissioned Macau’s Fast. That company also needed resources productivity centre, CPTTM, to formulate a and expertise from a large firm so that it “Procurement Platform Mobile App Design could refresh its business practices and stay Competition” in 2016. It challenged SMEs to competitive. MGM China states it was able develop an innovative and convenient mobile to help New Fast develop an advanced and application that could connect local SMEs and efficient purchasing system which ultimately large enterprises. reduced the time it took for different MGM The contest winner, Blupurple Interactive Me- China departments to order materials and dia Ltd, developed an app called “ChoicePro”. receive them, from 15 hours to just 10 minutes. It enables large companies to centralise the re- It has also helped New Fast’s revenues grow lease and receipt of procurement information, by 40 percent in 2018 compared to 2017.

CSR ANNUAL DIGEST 2018 45 RESPONSIBLE EMPLOYERS

Skilled and fulfilled workers are better for the business, say IR operators RESPONSIBLE EMPLOYERS

NTEGRATED resort operators in Macau repeated- ly emphasise that team members are their most important asset. Private-sector firms that empower staff with skills 57,200 Iand knowledge helpful for personal success, can also make their businesses more competitive in the mar- Full-time employees in Macau’s ketplace. As a bonus it can also help the economy gaming industry as of the fourth of the business’s host community, as well as winning that particular enterprise plaudits for being in line quarter of 2018 with best international practices. The Macau gaming sector had more than 57,200 full-time employees as of the fourth quarter of 2018, according to the city’s Statistics and Census Service. That represented a significant increase over 2004, given sufficient opportunity to learn skills that would when the first of the city’s new-generation properties give them the chance for mobility in their respec- opened. In that year there were fewer than 20,200 tive career; whether that was ‘vertically’ – in terms full-time employees in the industry. of promotion – or ‘horizontally’ – when an employee More than a decade ago – in response to the rise changes to another department in the same category. in the number of gaming employees following the In the Macau government’s policy address for liberalisation of Macau’s casino sector – the local gov- 2018, delivered in November 2017, Chief Executive ernment began efforts to ensure local people were Fernando Chui Sai On restated that the local authori- ties wanted to increase the share of locals working in middle- and upper-level management positions in the city’s casino industry to at least 85 percent by 2020. According to the government’s “mid-term re- view” of the gaming industry – contained in a report published in May 2016 – Macau residents accounted for nearly 82 percent of employees in middle- or se- nior-management positions in the casino industry at the end of 2014. Against this backdrop, Macau’s gaming sector as a whole has been focusing on developing the city’s lo- cal talent and on promoting among all employees and in a number of ways team development. Such efforts include in-service training, and collaboration with lo- cal and overseas educational institutions, to offer study programmes covering a range of subjects. Resort opera- MAIN HUMAN tors also organise national education initiatives to foster closer links with mainland China and to build awareness RESOURCE among their staff about national policy initiatives such DEVELOPMENT as the development of the Guangdong-Hong Kong-Ma- cao Greater Area – also known simply as the “Greater INITIATIVES: Bay Area”. Gaming-sector businesses say they are also embracing diversity in terms of the sort of people that • Workplace training work for them. Additionally, staff health, well-being and • In-house academies work-life balance are becoming increasingly important • Leadership programmes for employers as well as for workers. During 2018, all • Diverse continuing-education courses six operators of the city’s integrated resorts announced moves to enhance the appropriate maternity or pater- nity benefits offered to their employees.

CSR ANNUAL DIGEST 2018 47 Skill development

ACAU integrated resort operators said that in 2018 within the organisation – to prepare locals for leadership Mthey made a number of efforts to broaden the skills roles in hospitality management within integrated resorts. of employees to help them explore fresh career opportu- The initial intake attracted more than 250 applications, nities. Such initiatives – mostly employer-sponsored – cov- with 48 staff members selected. Each participant receives a ered three main areas: professional skills and vocational subsidy of over MOP16,000 (US$2,000) from Sands China training; leadership development programmes; and con- for taking part in the coursework. tinuing education courses. Elsewhere in the Macau market, SJM Holdings Ltd says Sands China Ltd’s 2018 annual report stated the it offers training for career enhancement in the form of in- firm’s talent development strategy includes a series of pro- ternal courses and workshops for staff, and subsidies for grammes aiming to offer staff “fast vertical development” education of staff at the Macau Millennium College. The and/or “wide horizontal development”. The company said firm stated in its 2018 annual report it “strives to promote a typical example included its new Integrated Resort Busi- the long-term development of its employees” by provid- ness Analyst Development Programme, which it described ing educational opportunities that “broaden their skills and as simultaneously a recruitment and development initia- make them valuable assets to the group”. tive targeting fresh entrants to the labour force. A total SJM Holdings says it also offers a variety of in-house of 15 individuals was selected in 2018 to take part in the staff training programmes. Topics covered include use of 18-month internship scheme. human resources, marketing, finance, corporate gover- Sands China also introduced in 2018 a 24-month nance, lifestyle choices and life skills, supervisory and mana- Sands China Manager Development Programme for Inte- gerial skills, and various technical training courses. grated Resorts. It is offered in partnership with the Macao The firm states it also provides scholarships to support Institute for Tourism Studies (IFT) and aims to give pit su- employees wishing to enrol on either degree programmes pervisors and pit managers professional training courses offered by educational institutions; or development cours- and the experience of working across several departments es offered by external training companies.

Several of Macau’s integrated resort operators, including Wynn Macau Ltd, have set up in-house academies to train staff

48 CSR ANNUAL DIGEST 2018 RESPONSIBLE EMPLOYERS

culture, administrative operations, languages, personal and corporate development, and leadership management. Junket operator David Group also offers its workers 2.3% training. It says it hosts on a regular basis in-house training courses covering topics including customer service, legal af- Employee turnover rate in the fairs and management. gaming industry in the fourth Regular staff training also occurs at casino equipment makers. International Game Technology Plc says it offers quarter of 2018 employees skill-development programmes, including the use of digital educational resources made available online. The casino industry additionally offers a number of internship opportunities to higher-education students in Macau. An example is the MGM China Internship Pro- Local resort operators have in many cases set up in- gram. According to MGM China, it has been crafted as house academies to give employees the opportunity to ex- a way for local university students to receive workplace pand their horizons and even to pursue new career paths. training before graduation. In 2018, over 50 students The Melco Learning Academy, set up by Melco Resorts and drawn from a variety of universities completed the Entertainment Ltd, offers courses in leadership and man- 16-month internship programme. agement, corporate governance, human resources policies, Sands China offers an Integrated Resort Internship Pro- hotel operations, languages, and computer skills, as well as gramme, to provide opportunities to local higher-educa- courses in lifestyle choices. The academy collaborates with tion students to work full time at its integrated resorts on other educational institutions to provide educational credits a short-term basis. Students can work as an intern in one as well as diploma certificates. According to Melco Resorts, of 18 non-gaming areas such as concierge services, enter- 5,325 courses had been offered by the academy between tainment, eCommerce, food and beverage operations and the time of its inception in 2009 and the end of 2018. front office functions. In 2018, Sands China added two The MGM Academy, set up by MGM China Hold- other departments to the programme: IT, and strategic ings Ltd, provides more than 200 academic courses. It analysis. More than 130 students took part in internships has an online presence, to ensure educational resources via the programme in 2018, says the company. are made available 24 hours a day. Other operators also Other firms in the gaming industry also offer intern- with in-house academies include Wynn Macau Ltd and ships. In 2018, gaming equipment supplier Aristocrat Sands China. Leisure Ltd formed a partnership with Macao Polytechnic Investment in training happens in other parts of the Institute’s Gaming Teaching and Research Centre, to make casino industry: junket operators also recognise the impor- available two student internship positions. As part of the tance of promoting skill development among their work- scheme, students participated in training sessions at the forces. An example is Suncity Group: the firm says it offers Aristocrat Macau Integration Centre, and also took part in a series of training opportunities to its staff, covering service system and field-support training.

2018 TRAINING – IN NUMBERS

Total training hours Average training hours per employee Galaxy Entertainment Group Ltd 1,102,541 53 hours MGM China Holdings Ltd 917,000 85 hours Sands China Ltd 1,689,256 67 hours SJM Holdings Ltd Not available 9 hours

*No relevant information was provided by Melco Resorts and Wynn Macau Ltd Source: Company information; different data collection methods might be used by different operators

CSR ANNUAL DIGEST 2018 49 Focus on vocational training

ll integrated resort operators in Macau offer the Labour Affairs Bureau and the Wynn Facili- Avocational training to new and existing staff ties Academy. For the rest of the working week members. The operators – often in partnership they receive workplace training. with either Macau’s Labour Affairs Bureau, local Wynn Macau Ltd also sponsored 36 staff in trade associations or educational institutions – 2018 to enrol on either the one-year “Diploma offer a wide range of programmes covering top- in Casino Management” or the “Advanced Di- ics such as occupational health and safety, facili- ploma in Gaming Management” programmes of ties management and electrical maintenance. the Institute for the Study of Commercial Gam- Such training gives young adults and other ing at the University of Macau. The resort opera- workers previously occupied in unskilled work, tor says 2018 marked a record high in the aggre- a way to gain workplace skills and professional gate number of participants from Wynn Macau qualifications. Resort operators in turn benefit Ltd on the two programmes. Since the launch of from access to workers with advanced technical the diploma programmes in 2007, a total of 145 knowledge in fields where there has previously Wynn Macau Ltd employees has enrolled on the been little locally-available expertise. courses, according to the company. Wynn Macau Ltd’s answer to this challenge In 2018, Galaxy Entertainment and the Ma- was to create a training programme for people cao Polytechnic Institute launched the GEG-MPI to develop hands-on technical skills and a career Gaming Position Certification. It was announced path in engineering, with a view to working in at the time the professional qualification pro- facilities management. The programme can run gramme aimed to provide theoretical and prac- for 18 months or as much as 24-months, and is tical training for approximately 7,000 Galaxy available to certain trainees that have been hired Entertainment employees, namely from gam- as full-time employees. For two days per week, ing-related departments such as table games, participants attend training classes offered by electronic games and cage operations.

MGM China says it seeks to engage with the city’s young people via a number of initiatives

50 CSR ANNUAL DIGEST 2018 RESPONSIBLE EMPLOYERS

Macau resort operators help staff to aspire to management roles

Taking the lead

ACAU integrated resort operators say offering Mstaff training in how to take on leadership roles is of paramount importance for their businesses. Such coaching is said to empower those in management 632 or those earmarked as candidates for such roles, to develop the necessary planning, organisation and Total vocational training courses communication skills needed to lead a team. Such a provided by gaming firms for training strategy aligns with the Macau government’s stated goal of promoting more locals to leadership workers in fourth quarter 2018 positions within the industry. Melco Resorts says it promotes career develop- ment via in-house opportunities. The firm adds it is important that workers can enhance their careers within the group, rather than having to go to a com- pany as having talent for leadership. The scheme is petitor to seek opportunities. It notes that in 2018, operated in partnership with Macau’s University of 40 percent of Melco Resorts’ vacancies were filled by Saint Joseph; the Católica Lisbon School of Business existing staff. The resort operator says that, since its and Economics in Lisbon, Portugal; and the School of establishment, it has had more than 26,000 instances Hotel Administration at Cornell University, in Ithaca, of internal promotions or transfers. New York, in the United States. In 2018, Sands China Sands China has created the Sands China Interna- enrolled a second group of management staff on the tional Strategic Leadership Programme for Integrated five-month programme, which included courses in Resorts, to nurture those identified within the com- each of the partner universities.

CSR ANNUAL DIGEST 2018 51 in departments other than the one in which they have been working; project workshops; site visits; and overseas study field trips. 92% Wynn Macau Ltd launched its four-month Lead- ership Acceleration Program in 2016. It is designed Ratio of gaming industry to improve an individual’s planning, organisational employees on shift work as of the and communication skills. Courses combine theory and practical exercises, including training overseas fourth quarter of 2018 and in-house study in Macau. From the launch of the programme, up to the end of 2018, Wynn Ma- cau Ltd had organised six rounds of training, with 80 team members completing the programme. Across Macau, companies engaged in the inte- Integrated resort operator Galaxy Entertainment grated resort sector have created specialised train- states it tailors its training programmes to suit the ing programmes for employees at supervisory and needs of employees. The firm says its GEG Lead- managerial levels to advance their respective ca- ers Program is designed specifically for senior-man- reers. For instance, Sands China offers what it says agement-level staff. The scheme features seminars, are intensive “fast track” supervisor and managerial case studies and other opportunities for partici- programmes specially targeting local university grad- pants to acquire leadership skills and to learn tech- uates, with a goal for participants to reach either niques for coaching others, according to the firm. supervisor-level positions in integrated resort opera- MGM China has what it calls the PRIDE Pro- tions – or assistant manager positions in food and gram: an intensive course lasting nine or as many beverage operations – within four to 18 months. as 15 months, said to be designed for “high-po- Wynn Macau Ltd and Galaxy Entertainment are tential” employees to develop leadership skills. It examples of other firms with so-called accelerated includes: opportunities to experience operations development programmes for managerial positions.

Promoting Chinese identity

ll Macau integrated resort operators have College and a research institute under the Chinese Asought in recent years to introduce national Academy of Social Sciences. education courses and related educational ac- Following the October 2018 opening of the tivities for their staff. These initiatives aim to Hong Kong-Zhuhai-Macau Bridge, Galaxy Enter- strengthen among staff members awareness of tainment held a seminar titled “Construction of the national identity and to nurture patriotism regard- Greater Bay Area and Macau’s Roles and Opportuni- ing China. ties”. The firm also organised last year a visit to the SJM Holdings hosted a number of national People’s Liberation Army Macau Garrison, led by the education-related activities in 2018. In April, the company’s deputy chairman, Francis Lui Yiu Tung. SJM Staff Welfare Consultative Committee sup- The same year, MGM China organised several ported staff participation in patriotic education National Education Seminars. They were supported programmes in Jinggangshan, Jiangxi province, in by the Economic Affairs Department of the Liaison mainland China. SJM Holdings staff also attended Office of the Central People’s Government, and an an October 2018 training course on Chinese his- aggregate of 300 MGM China staff members took tory and culture offered by the Macau Millennium part in the two seminars.

52 CSR ANNUAL DIGEST 2018 RESPONSIBLE EMPLOYERS

Inspiring a new generation

acau integrated resort companies seek ternship with the culinary teams of either Alain Mto engage with the city’s young people Ducasse or Pierre Hermé, two world-renowned via a number of initiatives, ranging from work- French chefs. The firm also offered the oppor- shops and field trips, to overseas training. tunity for one local aspiring fashion designer to Galaxy Entertainment has established learn from Barney Cheng, director of Yenrabi the GEG Youth Achievement Program – also creative studio in Hong Kong, via a month-long known by the acronym YAP – co-organised internship. Mr Cheng is the designer behind with the Macau Management Association. the employee uniforms for Morpheus hotel, a The scheme was launched in 2011. It includes property managed by Melco Resorts. coaching in career planning, e-marketing, Also during 2018, MGM China facili- communications, public speaking, social eti- tated collaboration between Singaporean quette, and managing personal finances. It pastry chef Janice Wong and 20 students also features field trips: in 2018, selected and lecturers drawn from Macao Polytech- students visited industrial parks and compa- nic Institute’s bachelor degree programmes nies in Thailand, to get a better understand- in, respectively, Visual Art, Design and Mu- ing of Sino-Thai business cooperation under sic. Together, they completed an installation China’s “Belt and Road” initiative. of edible art, that was then put on display In 2018, Melco Resorts gave students from at the “Art is Play” exhibition, held at the IFT the chance to take part in a six-month in- MGM Macau casino hotel.

The Galaxy Entertainment Group Youth Achievement Program includes career-plan coaching

CSR ANNUAL DIGEST 2018 53 Staff diversity and equal opportunities

ompanies in the Macau integrated resort in- by the Association of Parents of the People with Cdustry generally state they are proactive on Intellectual Disabilities of Macau. workplace equality, including support and pro- SJM Holdings states it aims “to promote the motion of culture of exclusivity. That includes diversity” of its workforce, “including in terms of eliminating unfair discrimination based either on age, gender and nationality, as well as a culture gender, disability or race. of equal opportunity,” according to its 2018 an- “We fully support equal opportunities and nual report. diversity in our workforce,” MGM China stat- Sands China launched in 2018 an anti-harass- ed in its 2018 annual report. According to that ment and discrimination policy as part of its diver- document, the firm had a total 40 staff with dis- sity promotion efforts. According to the firm, this abilities, employed across an aggregate of seven was the first of its kind across Macau’s integrated departments. resorts. The scheme includes training for all staff, Galaxy Entertainment says it was the first in- and a specialised training path for company manag- tegrated resort operator in Macau to organise – ers and above on how to handle appropriately any in 2018 – training for its employees on how to situations where a complaint is made. By the end of serve and interact with individuals who have in- 2018, almost 21,900 Sands China employees had tellectual disabilities. The training was supported received this training, according to the company.

Work-life balance

NUMBER of integrated resort companies say A they are working on new ways to encourage employees to strike a healthier balance between work and personal life. 0.24% In 2018 all of Macau’s six integrated resort operators increased their staff maternity and pa- The rate of lost working days due ternity benefits. It was in response to requests to work injuries, as reported by from workforces for longer paid leave to take care of newborn children. All firms now offer Galaxy Entertainment for 2018 paid maternity leave of 70 days, i.e., above Ma- cau’s statutory 56 days, and have schemes for paid paternity leave. Firms are also introducing programmes to help staff – particularly those working in shifts – to their children. Sands China held in 2018 a series cope with the challenges of parenthood. Galaxy of seminars for employees on the subject of par- Entertainment announced in 2018 that it would enthood. The initiative was part of an effort to launch an eight-week coaching programme – promote work-life balance and encourage healthy aimed at those employees that work rotating parent-child relationships within the families of shifts – to ensure they can build strong bonds with people working for the firm.

54 CSR ANNUAL DIGEST 2018 RESPONSIBLE EMPLOYERS

Melco Resorts has implemented comprehensive training programmes for its staff

Staff safety

acau’s integrated resort sector has been certification for their operations. In 2018, Melco Mpromoting occupational safety and oc- Resorts received the ISO 45001 Occupational cupational health, in order to ensure a healthy Safety and Health (OSH) Management System and accident-free workplace for all employees. In Certificate. The firm said at the time it was the 2018 Galaxy Entertainment held its first Environ- first integrated resort operator in the city to be mental, Health and Safety Education and Aware- awarded such certification across its entire port- ness Week; while MGM China ran its “Healthy folio of Macau properties, in recognition of its Workplace and Happy Life” initiative. commitment to providing a safe and healthy A number of firms has also sought safety workplace for employees.

CSR ANNUAL DIGEST 2018 55 way that they can take more rest days in the course of a week. The firm also has in place a scheme enabling staff to work part-time. Employee assistance programmes are also com- monly available across the industry. These are de- signed to offer support and counselling for employees for work or personal problems, including work stress, parenting issues, marital problems, depression, or problem gambling as well as drug and alcohol usage. Other things offered by resort operators to help staff members that are working parents include: 24-hour availability of hot meals and snacks for staff, break rooms, onsite parking, shuttle buses Galaxy Entertainment has introduced programmes to help staff to and from work, on-site medical clinics, rooms achieve a healthier balance between work and personal life for breastfeeding, showers and lockers. Sands China launched “myFITNESS” in 2018 Integrated resort operators also offer flexible to encourage its team members to exercise and work hours designed to help working parents. Melco eat well. “Green Mondays” was one of its first Resorts’ FlexCompress scheme gives an opportunity campaigns, encouraging its team members “go for staff to shape their existing work hours in such a green” every Monday with a choice of six meat-

Sands China launched its ‘Green Mondays’ campaigns to encourage its team members to eat well

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free choices in the company’s canteens. on Chinese medicine and seminars on health topics. In May 2018, MGM China held a three-week Galaxy Entertainment organised in 2018 for “Healthy Mind Healthy Life” campaign of activities to employees a number of social and sports activities promote health and well-being among its workforce. outside of work. Its Staff Social Club and Employ- Over 10,000 people – staff and family members – ee Relations teams arranged bowling, badminton took part in the scheme, which included consultations and soccer competitions.

Staff appreciation ntegrated resort operators see corporate rec- Wynn Macau Ltd each month honours em- Iognition of good performance or achieve- ployees whose performance has been consid- ment among staff members as an important ered exceptional. Awards are also given out on tool for keeping them happy and engaged in a quarterly basis to outstanding supervisors and their work. All of Macau’s operators regularly managers who show exceptional talent in terms honour their best-performing employees via of leadership. special award ceremonies. The Grand Lisboa casino hotel, operated by In 2018, Sands China held the ninth edi- SJM Holdings, recognised in 2018 more than tion of its “Because We Care Team Member 40 employees for their outstanding perfor- Awards”, recognising a total of 430 team mem- mance, via the venue’s Grand Lisboa Premium bers across seven categories. Service Award.

More than 320 team members of MGM China participated in the World Challenge Day 2018

CSR ANNUAL DIGEST 2018 57 EDITOR Tiago Azevedo

DEPUTY EDITOR Emanuel Graça

EDITORIAL COORDINATOR Michael Grimes

PUBLISHER TEAM Publishing and Consultancy Ltd

PRODUCER GGRAsia Publications

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PRINTER Tipografia Welfare, Macau

ISSN: 2706-848X

Published: November 2019

Sources used to produce this report: Company annual reports, company CSR annual reports; company official websites; company press releases; and other information provided by companies.

Copyright © 2019 by TEAM Publishing and Consultancy Ltd. All rights reserved. No part of this publication may be reproduced in any form - print, electronic, or otherwise - without the express written permission of the publisher.

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