2022 ENV I RONMENTAL SOC I AL AND GOVERNANCE REPORT
SANDS I N 202 2 Included in the FTSE4Good Index Series, which recognizes companies demonstrating strong environmental, social and governance practices and performance Named to the Dow Jones Sustainability Indices (DJSI), including DJSI World for the third consecutive year and DJSI North America for the fifth consecutive year Continued disclosure to CDP, the gold standard of environmental reporting, earning A- scores for both CDP Climate Change and Water Security Listed as one of the Drucker Institute’s 250 best-managed publicly traded companies, the only company in the gaming industry to be included in this top-tier group Recognized by Newsweek for the second consecutive year as one of America’s Most Responsible Companies 3 Message From Our Chairman 4 Who We Are 5 Value Creation 6 Our Strategy 8 Our Performance 10 Environment 20 Social 38 Governance 46 Panoramic View 48 Property Spotlight 50 Appendix CONTENTS The Parisian Macao® 2022 ESG REPORT 2
I am pleased to present our 2022 Environmental Social and Governance (ESG) Report in which we review the year’s key ESG accomplishments and outline progress toward the corporate responsibility goals established for our 2021–2025 reporting period. The backdrop to our 2022 ESG performance included a series of important business accomplishments. We fully divested of our Las Vegas integrated report operations and assets, which allows us to redirect more capital to our existing markets in Asia – underscoring our commitment to our host communities – and the exploration of potential new ventures. We successfully tendered for a new 10-year gaming concession in Macao and reopened our Singapore property amid significant reinvestment to greatly enhance this iconic property. We also continued to navigate the pandemic’s impact, particularly in Macao where periodic closures and reduced travel continued. Despite these ongoing challenges, we remained committed to the People, Communities and Planet pillars of our corporate responsibility program and delivering results against our overarching goals of minimizing environmental impact, promoting the well-being of our people and keeping our communities strong. Our work under these three pillars is integral to our purpose of creating positive impact by making our regions ideal places to live, work and visit. Reflecting these accomplishments, Sands was again included on DJSI World for the third consecutive year, while Sands China made its DJSI World debut. Despite this recognition, it is important to continue evolving our approach to address the emerging ESG landscape. In 2022, we adjusted to changing ESG standards, frameworks and regulations by strengthening our reporting processes to provide transparency for our stakeholders, most notably through adherence to the updated Global Reporting Initiative (GRI) guidelines taking effect in 2023. We also continued our disclosures to leading environmental frameworks such as CDP and the Taskforce on Climate-related Financial Disclosures (TCFD). As we approach the middle of our five-year reporting cycle, the work toward our 2025 ambitions is progressing well. Greenhouse gas emissions remain below prior benchmarks and are on track to meet our 17.5% emissions reduction goal, albeit partly a reflection of lower business volumes in 2022. We also are making solid progress against our targets to invest $200 million in workforce development and contribute 150,000 Team Member volunteer hours to community causes. Under our Planet pillar, we made notable progress in addressing food and other forms of waste, reducing reliance on plastics and packaging, and conserving water. COVID-19 protocols required continued use of singleuse disposables to protect health and safety, impeding achievement of some waste diversion targets. However, reducing food waste was an area of significant progress as we continued to deliver on our prevention, rescue and diversion strategy, which is propelled forward through the use of artificial intelligence, data and analytics to optimize food management. Our People pillar ambition to invest in workforce development drove a large portion of our work to support our TeamMembers, suppliers, partners and the labor pool in our host communities. Our dedication to providing meaningful career and business advancement created opportunities for our TeamMembers and enabled small and medium enterprises (SMEs) to grow. ROBERT G . GOLDSTE IN Chairman of the Board and Chief Executive Officer Las Vegas Sands MESSAGE FROM OUR CHA I RMAN We also invested significantly in building excellence in the hospitality industry, headlined by the launch of a scholarship fund in Singapore. Our commitment to diversity, equity and inclusion (DEI) remained another focal point of our People initiatives with expansion of programs for both Team Members and the community. Protecting human rights and ensuring responsible gaming in our resorts also continued to be key priorities for building a people-centered culture with safeguards to protect all who enter our properties. In our communities, we took a lead role in addressing COVID-19 resurgences, while celebrating the return of key programs put on hold during the pandemic. In Macao, our properties provided extensive pandemic relief by serving as testing, vaccination and quarantine sites, and TeamMembers delivered thousands of hours of pandemic-related support. In Singapore, we saw the pandemic’s impact begin to ease, marked by the return of the annual Sands for Singapore charity festival, which raises millions of dollars for local nonprofits. We also launched the first annual Sands Cares Global Food Kit Build to further address hardship relief and food insecurity in our communities and brought the Sands Cares Accelerator to Macao. Advancing opportunities for local SMEs remained a top priority, capped by the annual Sands Shopping Carnival, which attracted 100,000 visitors to support local businesses. Our governance initiatives establish the guiding principles and standards of performance that ensure responsibility is interwoven into all company endeavors. In 2022, our board of directors’ nominating and governance committee continued playing a significant role in providing oversight, reviewing our progress and developing increased leadership knowledge surrounding the latest ESG trends and practices. As we look ahead to the remainder of 2023, we are focused on delivering the performance necessary to achieve our 2025 ambitions in emissions reduction, workforce development and community volunteerism. We hope to see continued strengthening in Singapore, where we are investing significantly to help the region capitalize on projected tourism growth. We also look forward to the return of a more normal business environment in Macao, where we continue to make significant commitments to support the region’s impressive development as a leading global tourism destination. Finally, the 2023 opening of our new headquarters in Las Vegas, designed with sustainability at its core, will be a working embodiment of our ESG commitment. We are incorporating environmentally conscious features, people-centered initiatives and a culture of community engagement into this investment in our future. It is another example of how Sands conducts business around the world and our dedication to being developers of positive impact in the regions where we operate. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 3 CLOSING
OUR PURPOSE Create positive impact through valuable leisure and business tourism, contributing economic benefits to our host communities and making our regions ideal places to live, work and visit OUR MI SS I ON Develop and operate iconic integrated resorts that drive leisure and business tourism through sustainable business practices OUR VALUES • Dedication to impeccable service • Excellence in business performance • Innovation by challenging conventional thinking in the hospitality industry • Fairness, honesty and a strong code of ethics • Sustainability for People, Communities and Planet With a portfolio of iconic properties in renowned global travel destinations, Sands is the world’s leading developer of integrated resorts. Our properties feature richly diverse and compelling offerings, including luxury accommodations, a wide array of entertainment attractions and state-of-theart meeting and convention facilities. The iconic Marina Bay Sands® in Singapore and our resorts in Macao SAR, China, attract millions of visitors annually to host regions, sustain thousands of jobs, provide financial opportunities for local businesses and invest significant resources in keeping communities strong. WHO WE ARE Macao 5 resorts Singapore Marina Bay Sands Singapore skyline $4.1B Consolidated net revenue 6 Integrated resorts 35,815 Team Members globally +14,000 Rooms and suites 3M Sq. ft. meeting space +200 Restaurants 5 Malls +28,000 Entertainment seats 2022 ESG REPORT 4
VALUE CREAT I ON For more than 30 years, Sands has attracted valuable leisure and business travel to our host communities, generating significant economic benefit through tourism revenue, jobs and business opportunities for local suppliers and SMEs. Our groundbreaking developments have challenged hospitality-industry conventions to maximize our local markets as attractive destinations. These contributions are further strengthened by an unwavering commitment to the pillars of our corporate responsibility strategy – helping our People thrive, keeping our Communities strong and protecting our Planet. PLANET We work to minimize our impact on the environment with a deep commitment to diligent stewardship of natural resources and preservation of local ecosystems. PEOPLE We create a pathway to prosperity with stable jobs, a roadmap for advancement and opportunities for business success. We deliver value to our guests through amazing travel experiences, impeccable service and a welcome environment for all. COMMUN I T I ES We help build a foundation for economic strength and vitality in our regions through philanthropic investments, capacity-building programs and volunteer resources. Las Vegas Corporate headquarters 89% Retention rate 46% Workforce with 10 years of service $56M Invested in Team Member development $1.4B Spend with SMEs and local business $40M Sustainable spend $6.3M Invested in energy efficiency projects $935M Gaming tax paid globally $8.5M Charitable giving 137,782 Hours of service to the community APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 5 CLOSING
Sands’ corporate responsibility platform represents our unique approach to addressing the ESG issues most material to our business, communities and key stakeholders. With defined strategies supporting each platform pillar, we are firmly dedicated to being an ESG leader committed to our People, Communities and Planet. Environment We protect our Planet by minimizing our environmental impact. Social We promote the well-being of our People by striving to bethe employer and partner of choice in host regions. We support Communities with unwavering dedication to helping keep our regions strong. Governance We commit to the highest standards of professional conduct and corporate governance. OUR STRATEGY Waste Promote reduction, reuse and recycling of products and materials Sourcing Increase purchasing of sustainable products and services Low-Carbon Transition Advance energy efficiency and renewable solutions to address climate change Plastic and Packaging Address high-volume plastic items, single-use disposables and packaging Water Stewardship Protect, conserve and reuse water resources PLANET Minimize our environmental impact MEMBERS TEAM AND OPERATI ONS RESORT MANAGEMENT AND ENTERTAI NMENT MEETI NGS, EVENTS AND DEVELOPMENT BUI LDI NG DESI GN Workforce Development Empower career and business growth to promote prosperity and create a thriving local industry Las Vegas Strip 2022 ESG REPORT 6
GOVERNANCE Commit to the highest standards of professional and business conduct PEOPLE COMMUNI TI ES Be the employer and partner of choice Keep our regions strong Responsible Gaming and Financial Crime Prevention Ensure safeguards and protocols for responsible, ethical and lawful behavior Human Rights Respect fundamental rights and freedoms of our TeamMembers, suppliers and guests Education Advance learning and mentorship opportunities to remove barriers and build the workforce of the future Disaster Response and Preparedness Provide aid and assist in community crisis planning Hardship Relief Invest in solutions to create resiliency for people in need Cultural and Natural Heritage Preserve regional assets and ecology to promote sustainable tourism Local Business and Partner Development Support the success of small and medium enterprises, nonprofits and diverse organizations PARTNERS SUPPLI ERS AND GUESTS GI VI NG CORPORATE BUI LDI NG CAPACI TY VOLUNTEERI SM Health, Safety and Well-Being Protect physical security and promote overall wellness Diversity, Equity and Inclusion Provide a collaborative, equitable environment for all and opportunities for underrepresented groups APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 7 CLOSING
As we approach the mid-point of our five-year reporting cycle, we are pleased to present our progress toward our 2025 ambitions and targets. Our performance and historical trends are reflective of our portfolio in 2022, which includes operation of our six integrated resorts and Sands corporate. Data for prior years has been restated throughout this report post divesture of our Las Vegas integrated report operations and assets. Additionally, we have restated and validated our science-based target for scope 1 and 2 emissions in alignment with our updated reporting boundary. All other targets shown were set taking into account the impact of the sale and therefore have not changed. OUR PERFORMANCE 2025 P I LLAR AMB I T I ONS 2025 Target : 17.5% in emissions from 2018 1 Absolute Emissions, Scope 1 and 2 0 200,000 -50% From baseline 2 400,000 600,000 800,000 1,000,000 2018 Baseline 2020 2019 2021 2022 PL ANET 2025 Target: $200M investment in workforce development 2025 Target: $200M 2021 2022: $113M Workforce Development Investment PEOPLE 2025 Target: 150,000 volunteer hours3 Volunteer Hours 2025 Target: 150,000 hours 2021 COMMUN I T I ES 2022: 192,330 hours The Venetian® Macao Resort 1 In 2022 we restated and revalidated this science-based target to give effect to the sale of our Las Vegas integrated resort operations and assets. Our new target aims for the same percent reduction across our new reporting boundary. 2 The operational downturn associated with the global pandemic positively impacted this result. 3 Extraordinary COVID-19-related volunteer hours continue in Macao in 2022, resulting in our goal being met ahead of schedule. We are looking to set a new 2025 ambition for Team Member volunteering. 2022 ESG REPORT 8
2025 TARGETS Waste Diversion 2025 Target: 5% in operational diversion rate from 2019 0% 1% From baseline 2018 15% Baseline 2019 18% 18% 2020 18% 2021 19% 2022 Food Waste Diversion 2025 Target: 25% of food waste is prevented, rescued or diverted 0% 10% 20% Diversion 20% 30% 2018 8% 2019 9% 13% 2020 16% 2021 20% 2022 Water Use 2025 Target: 3% in potable water use per sq. ft. from 2019 35 2022 0 20 -31% From baseline 1 40 60 2018 49 Baseline 2019 31 2020 36 2021 51 Plastic and Packaging 2025 Target: 100% Sands-branded water bottles are reusable or made from sustainable materials 0 20% 40% 60% 80% 100% 80% Achieved 2018 0% 2019 0% 1% 2020 46% 2021 80% 2022 ENV I RONMENT SOC I AL 2025 Target: 45% representation of women Representation of Women in Management2 43% Representation 0% 20% 40% 60% 2019 43% 2020 44% 2021 44% 43% 2022 2025 Target: 47% representation of women Representation of Women in Junior Management3 GOVERNANCE 1 The operational downturn associated with the global pandemic positively impacted this result. 2 Includes managers, directors, vice presidents and above. 3 Includes assistant manager to senior manager positions. 4 As of December 31, 2022. 5 Local is defined by region as follows: Corporate – Nevada, Arizona, California and Utah; Singapore – Singapore; Macao – Macao. 25% SME spend Spend with SMEs in Macao 25% 2022 2019 19% 2020 18% 2021 21% 9 board members 2022 Board Representation4 3 directors who are women (33%) 2 racially or ethnically diverse directors (22%) Spend with Local Suppliers5 79% Local spend 20% 40% 60% 80% 100% 2019 73% 2020 84% 2021 85% 79% 2022 0 10% 20% 30% 0% 20% 40% 60% 2019 44% 2020 2021 45% 45% Representation 45% 2022 45% 0% 10% 20% 30% APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 9 CLOSING
Garden Suite at Londoner Court ENV I RONMENT Our commitment to the environment is an integral part of our business. The Sands ECO360 global sustainability program guides responsible development and management of our resorts, and drives sustainable operations, conservation practices and eco-friendly initiatives that minimize our environmental impact. PLANET 2022 ESG REPORT 10
AREAS OF FOCUS Building Design and Development We incorporate environmentally conscious features, technologies and processes from the ground up to ensure we preserve resources and mitigate harm to the local ecology. Resort Management and Operations We aim for continuous improvement in sustainability throughout our resorts’ life cycles, with ongoing enhancement of our processes and integration of new technologies and best practices. Meetings, Events and Entertainment We curate experiences with environmental responsibility, attendee wellness and community impact in mind through a holistic approach that covers every step of our client engagements. MATER I AL TOP I CS Clean Water and Sanitation Responsible Consumption and Production Affordable and Clean Energy Life BelowWater UN SDG AL I GNMENT Through our focus areas in building design and development, resort management and operations, and meetings, events and entertainment, we are committed to addressing five core environmental topics identified through our materiality assessment: low-carbon transition, waste, plastic and packaging, sourcing and water stewardship. As practices in preserving biodiversity continue to evolve, we have also been developing and refining our approach to focus on the most relevant priorities and outcomes. Low-Carbon Transition Advance energy efficiency and renewable solutions to address climate change Water Stewardship Protect, conserve and reuse water resources Plastic and Packaging Address high-volume plastic items, single-use disposables and packaging Sourcing Increase purchasing of sustainable products and services Waste Promote reduction, reuse and recycling of products and materials Biodiversity1 Reduce deforestation, protect marine environments and preserve natural ecology PL ANET 1 Biodiversity is an emerging topic that previously has been addressed under other material topics; we are in the process of formulating our approach. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 11 CLOSING
APPROACH Led by Sands ECO360, we have developed a series of sustainability initiatives to address our core topics. These strategic and systematic efforts ensure we minimize environmental impact, preserve natural resources and achieve our commitment to protecting the planet. COMMUNITIES PEOPLE PLANET Energy Efficiency Design buildings that conserve electricity and deploy new technologies to reduce energy consumption during ongoing operations Transportation Transition guest shuttle buses to electric and clean-fuel sources and leverage carbon offsets for hard-to-decarbonize air and ferry travel Packaging Reduce the environmental footprint of primary, secondary and tertiary packaging in our operations Renewable Energy Seek out renewable energy solutions, including on-site solar thermal and solar photovoltaic systems and renewable energy credits Single-Use Disposables Replace single-use products with sustainable alternatives and transition to reuse models where possible Sustainable Food Source eco-friendly ingredients and provide sustainable cuisine in restaurants through menu offerings curated with the planet and biodiversity in mind Resort Operations Explore sustainable options for incorporation in our business processes and the guest experience Building Development and Renovation Integrate energy-saving technologies and environmentally preferred products and materials LOW- CARBON TRANS I T I ON Water Reuse Increase use of nonpotable water for landscaping, restrooms, cooling towers and other uses Water Efficiency Upgrade fixtures and systems, enact water-conservation policies and encourage sensible water usage Ecosystems Partner with regional water champions to reinvigorate biodiverse ecosystems, increase resiliency, engage communities and leverage water technologies WATER STEWARDSH I P PL AST I C AND PACKAG I NG SOURC I NG Food Waste Tackle one of our largest waste streams through prevention, donation and diversion Construction Waste Responsibly handle construction waste from new developments, remodels and renovations Operational Waste Recycle whenever possible and find opportunities to reduce waste generation WASTE PROGRAMS SANDS ECO360 The Sands ECO360 global sustainability program guides our efforts to minimize environmental impact and promote sustainable practices. SANDS ECOTRACKER Our internal project management tool tracks the progress of efficiency and optimization projects against our Sands ECO360 goals. THE DROP BY DROP PROJECT This innovative initiative repurposes our water savings into water-stewardship investments in our local communities. 2022 ESG REPORT 12
LOW- CARBON TRANS I T I ON Guided by our science-based emissions reduction target and the ambitions of the United Nations Paris Agreement, our low-carbon transition strategy focuses on reducing our climate impact through energy efficiency, renewable energy and conversion to low-emission vehicles. AT A GL ANCE P I L L AR Planet APPROACH Low-Carbon Transition Energy Efficiency Deploy energy conservation projects and innovative technologies Renewable Energy Utilize on-site and off-site renewable energy generation and renewable energy certificates (RECs) Transportation Transition to low-emission vehicles and expand electric vehicle (EV) charging infrastructure 2025 TARGET 17.5% Scope 1 and 2 emissions reduction from a 2018 baseline 202 2 PERFORMANCE 50% Reduction from baseline Achieved1 We continue to look for ways to balance premium resort expectations and escalating energy requirements with our commitment to a low-carbon future. We remain dedicated to the proven energy conservation strategies we have deployed, while exploring new ways to address this dynamic environment. We understand this transition requires working with multiple stakeholders, and extending energy management outside of our organization is an area where we have tremendous opportunity. We have plans to work on several priorities such as exploring emissions reductions associated with items sourced from our suppliers, assisting meeting clients with carbon-neutral events and collaborating with retail and restaurant tenants to address their energy use. Accomplishments In undertaking emissions reduction initiatives, we must account for the complex systems required to operate facilities of our magnitude. Our energy and electrification projects are wide-ranging and diverse, exemplifying our long-standing and comprehensive plan for energy management. Energy Efficiency: In 2022, Sands China and Marina Bay Sands installed controls to reduce energy use while guests are away in over 3,300 hotel rooms. We also tackled remaining hard-to-convert incandescent and fluorescent lights: Marina Bay Sands upgraded its staff-only walkway network with LED lighting, while Sands China transitioned back-of-house washrooms to LED lighting, replacing 634 fixtures. LED lamps now represent 98% of our global lighting purchasing. Renewable Energy: Our steadfast commitment to renewable energy continued in 2022, with 151,000 MWh of renewable energy purchased from solar and wind farms and 235 MWh generated at Sands China’s hybrid solar thermal plant and Marina Bay Sands’ rooftop solar plant. Transportation: We also continue to make progress on EV transition. Sands China added six range-extended electric taxis at The Londoner Macao® and installed six electric motorcycle charging stations for TeamMembers. Marina Bay Sands added 13 hybrid vans to its in-house fleet. 57 More information and data on low-carbon transition can be found in the Appendix on page 57. Our integrated resorts provide a range of amenities under a single roof, with sizable requirements for lighting, cooling and heating our facilities, and transporting our guests. In 2022, the pandemic continued to impact visitation, causing energy consumption and greenhouse gas emissions (GHG) to remain at lower-than-baseline levels. Operation of our ferry jet service, between Hong Kong and Macao, continued to be suspended in 2022, resulting in historically low GHG emissions frommarine fuel. Despite these reductions, we anticipate business will continue to rebound, increasing energy consumption. In addition, enhancement to our properties’ luxury experience and incorporation of more EV charging stations and intelligent devices also will bring a corresponding increase in electricity usage. EXCEED I NG STANDARDS FOR SUSTA I NAB I L I T Y In 2022, Marina Bay Sands achieved the Events Industry Council’s Platinum certification for Sustainable Event Standards for Venues, adding another major designation to the resort’s Leadership in Energy and Environmental Design (LEED) Platinum and Green Mark Platinum certifications. To achieve this latest rating, Marina Bay Sands accomplished several milestones, including improving its comprehensive waste management plan to achieve its highest-ever recycling rate of 27% in 2021. The resort also invested in energy-saving initiatives, such as purchasing renewable energy from solar arrays across Singapore and installing LED lighting that reduced energy consumption by 15% in 2021 against a 2019 baseline and converting 99% of its vehicle fleet at Sands Expo® and Convention Centre to electric. Success in achieving leading environmental certifications also stems from a culture of sustainability at Marina Bay Sands, with TeamMembers accomplishing more than 358,000 sustainable actions since 2015. 1 The operational downturn associated with the global pandemic positively impacted this result. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 13 CLOSING
WASTE Addressing the many forms of waste is a critical component of our environmental strategy to conserve resources. Our primary focus is on managing our largest waste streams, which are in the areas of food service, operations and construction. AT A GL ANCE P I L L AR Planet APPROACH Waste Food Waste Prevent, rescue and divert food from the general waste stream Operational Waste Reduce waste generation and recycle when possible Construction Waste Responsibly manage waste from new developments, remodels and renovations 2025 TARGETS 25% Food waste is reduced through prevention, rescue or diversion 5% Increase in operational diversion rate from a 2019 baseline 202 2 PERFORMANCE 20% Food waste reduced On track 1% Increase in operational diversion from baseline In progress to COVID-19 restrictions. We also continue to face difficulty in finding solutions to recycle used playing cards after export market limitations halted recycling of this complex material in 2020. Exploration of potential paths for managing playing card waste continues to be a top priority. Our rate of food waste prevention, rescue and diversion, however, continued on an upward trajectory. Since 2018, we have increased food waste recovery by 12%, thanks to processes and programs in our kitchens and restaurants and continued scaling of artificial intelligence technology and food waste digesters. Accomplishments The many ways we divert waste from landfill demonstrates a methodical and thoughtful approach to managing our three primary waste streams. GET T I NG TO ZERO WASTE As part of its commitment to Singapore’s zero waste masterplan, Marina Bay Sands has undertaken a comprehensive multi-year plan to address food waste, working closely with Team Members, restaurant partners, retail outlets, meeting and convention clients, and hotel guests to effect change. In 2022, the resort undertook two priorities: studying infrastructure and technology to increase food waste treatment at various property locations, and evaluating food waste segregation systems at 11 signature and six casino restaurants, resulting in tailored collection plans and new measurement/ monitoring systems for these venues. Critical success factors for managing restaurant food waste involve ensuring sufficient training and engagement amid an environment with frequent staff changes, a large number of non-company-employed staff and potential staffing shortages as business increases post-pandemic. A radio frequency identification (RFID) system was also installed at the waste dock to track tenants’ general waste volumes and enable support for meeting Singapore’s requirements. Marina Bay Sands will concentrate on waste segregation in its banquet, meetings and expo areas in 2023. The lingering presence of the pandemic created challenges in maintaining and improving our operational waste diversion target. Factors included use of The Parisian Macao and Sheraton® Grand Macao1 as quarantine hotels, prohibiting them from recycling any waste per government restrictions; suspension of on-site recycling services during intermittent shutdowns in Macao; and increased use of disposable takeaway containers in Team Member dining rooms due Operational Waste We have been evolving our waste management program for more than a decade, which has included segregating 26 product categories. Some areas of our operations, however, require customization due to their unique attributes and space constraints. In response, Marina Bay Sands implemented special processes for bottle collection at one of its nightclubs and waste sorting in its food court this past year. Sands China coordinated a variety of tailored recycling activities for seasonal items such as mooncake boxes and red packets. Managing paper usage was another key area of focus in 2022, with initiatives to reduce and track printing. Through managed printing services, Marina Bay Sands decreased paper consumption by 14%, while Sands China 1 Sheraton is a registered trademark of its owner and is used under license. 2022 ESG REPORT 14
PREVENT I NG FOOD WASTE I N TEAM MEMBER D I N I NG ROOMS Through joint efforts between the sustainability team, chefs and Team Members, Sands China is using insights and analysis to reduce food waste in its Team Member dining rooms. Leveraging Winnow artificial intelligence (AI) systems and a comprehensive study to assess plate waste, chefs were able to reduce food waste while improving Team Member satisfaction by adjusting food serving temperatures and providing smaller portions for salads, vegetables and other limited items. In addition, improving communication and signage at dining entrances and continuing plate-waste reduction challenges educated Team Members about this topic. The combination of research and education has contributed to significant progress in reducing food waste while enhancing the Team Member dining experience. expanded its managed printing program to offices in Hong Kong and Zhuhai. In addition, three Sands China properties installed hand dryers, eliminating 860 pounds of tissue per month and 5 tons per year. Team Member engagement is another way we ensure operational waste management goals are met. We provide departmental training and incentives, conduct special recycling campaigns and host programs to build critical knowledge and influence behavior. In 2022, Marina Bay Sands worked with cleaning and kitchen department staff to improve waste sorting and recycling, while Sands China undertook initiatives with partner Green Future to launch a recycling education program for Team Members 60 More information and data on waste can be found in the Appendix on page 60. and strengthen community awareness about proper recycling at the 2022 Sands Shopping Carnival, Macao’s largest mass retail event. Construction Waste We began preparations for our move to a new Las Vegas corporate headquarters in 2022 and have been committed to reducing waste throughout the building’s renovation, which will be completed in 2023.We set a target to divert 75% of overall construction and demolition waste using separation and contamination prevention measures, communication with contractors and clear signage. In addition, Sands China tackled waste in its retail space with a new process to collect, recycle and resell material from tenant renovations, which resulted in 55 tons of material diverted from landfill. Food Waste We control the sources of food waste with strategies for prevention, rescue and diversion from landfill, and our management plan incorporates technology, processes, training and measurement to tackle food waste from all angles. Prevention: Avoiding or reducing food waste generation is a foundational step. • For the first time since the program’s inception in 2020, all five Sands China properties met their quarterly plate waste reduction targets, enabling Team Members to earn multiple reward dishes in the staff canteen throughout the year. Food Rescue: Our strategy to donate recovered food continues to benefit people and causes in our communities. • Marina Bay Sands maintains a strong partnership with The Food Bank Singapore for donation of unserved food. • In Macao, we successfully piloted and established an initiative to donate bread and pastry items to the Macau ECOnscious Community Fridge project. Diversion: We continue to increase capacity for treating food waste in all areas of our resorts. • Sands China expanded its food waste digestion program to nine company-owned food outlets and is working with five leased restaurants to implement on- and off-site digestion programs. • Marina Bay Sands is piloting an innovative circular solution in which food waste is processed into a residual material with high calorific value that is then utilized to grow fish feed. Data Collection and Measurement: In addition to our standard reporting procedures, we track and measure food waste in real time, enabling adjustments in production and menu creation. • Sands China added four newWinnow AI trackers at two guest restaurants, complementing the 10 systems already in place in Team Member dining rooms. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 15 CLOSING
CLOS I NG THE LOOP Installing circular, closed-loop systems for necessities such as drinking water represents a primary way our resorts can significantly reduce single-use plastic. However, replacing single-use water bottles in guest suites has been one of our greatest challenges. In 2019, Marina Bay Sands piloted using refillable glass water bottles in hotel suites. While guests liked the system, the significant number of lost or damaged products, an inability to scale due to the labor-intensive manual bottling process and hindered staff mobility during distribution made this solution unviable for replacing single-use plastic bottles in hotel rooms at the time. The resort has since transitioned to recycled polyethylene terephthalate (rPET) water bottles, a change that stemmed from extensive analysis with a thought leader and material engineer to determine the most sustainable choice in Singapore at present. Our global sustainability team continues to explore circular water bottling systems for hotel rooms, including evaluating successful approaches used by various international companies with standards similar to Sands. Tableware: TeamMember dining rooms are among the largest restaurants on our properties and where we have made significant headway. Our primary focus is to replace single-use cups, utensils and condiment packets with more sustainable and reusable alternatives. After a successful pilot to remove the last remaining disposable plates and bowls at the Halal counter in the TeamMember dining room at Marina Bay Sands, the resort has fully integrated a newmeal pickup process utilizing reusable tableware, eliminating one million disposables annually. Amenities: We have continued trial use of refillable amenity bottles, testing the right formats to marry guest preference and luxury feel with sustainable solutions. Sands China transitioned to bulk bottles for shampoo, body wash and conditioners at the Conrad® Macao1 and began trials of wall-mounted bathroom amenities at The Venetian Macao, The Londoner Macao and The Parisian Macao. Other initiatives have included eliminating secondary packaging and materials in guest rooms, favoring high-quality, multi-use combs, razors and toothbrushes and using plantbased wrapping on bathroom amenities as needed. Plastic Bags: Plastic bags are one of our top-10 single-use product categories to address because they are especially harmful to ocean life, as well as recycling systems if improperly handled. From shopping bags to trash and takeaway bags, plastic is pervasive for transporting goods. Both Sands China and Marina Bay Sands have taken steps to reduce the use of plastic bags, such as installing umbrella-drying stations to eliminate plastic covers. Sands China also established the One Bin Challenge, which encourages TeamMembers to eliminate individual trash containers in offices and cubicles. Consolidating trash into receptacles in common areas will eliminate more than 300,000 plastic bags annually. PL AST I C AND PACKAG I NG We are committed to eliminating the use of unnecessary plastics and packaging wherever possible, transitioning to reuse systems and replacing materials with renewable and sustainable alternatives. Plastic and packaging are ubiquitous in all facets of daily life. While we understand that their elimination is critical to conserving natural resources and protecting ocean health, reduction or replacement is uniquely challenging in our business operations, as we emerge from a pandemic environment. Our strategy to reduce reliance on plastic and packaging, and create sustainable alternatives for instances where we can’t, involves a variety of avenues, most notably our initial goal to incorporate sustainable solutions in 100% of Sands-branded water bottles. We are committed to doing more by exploring alternative options for single-use disposables, such as aluminum cans and reuse systems, as well as replacing extra packaging wherever possible. Accomplishments While the convenience and cost-effectiveness of single-use plastic and packaging have entrenched their place in our society, we leverage our eliminate, reuse, replace and recycle strategy to tackle this area using a life cycle-based approach. AT A GL ANCE P I L L AR Planet APPROACH Plastic and Packaging Single-Use Disposables Replace disposable products with more sustainable alternatives Packaging Lessen the footprint of primary, secondary and tertiary packaging 2025 TARGET 100% Sands-branded water bottles are reusable or made from sustainable materials 202 2 PERFORMANCE 80% Incorporating sustainable solutions On track 62 More information and data on plastic and packaging can be found in the Appendix on page 62. 1 Conrad is a registered trademark of its owner and is used under license. 2022 ESG REPORT 16
outlets provided menus featuring plant-based meat and seasonal vegetables. The resort also hosts an Alternative Wednesday campaign in which TeamMember dining rooms offer plantbased protein items. Combined, Marina Bay Sands’ programming and engagement efforts resulted in the procurement of nearly 44,000 pounds of plant-based protein in 2022. TRANSFORM I NG THE SEAFOOD SUPPLY CHA I N Working in partnership withWorldWide Fund for Nature (WWF) since 2015, Marina Bay Sands has charted a pathway to pioneer the latest in sustainable seafood initiatives. The program aims to build a future that protects oceans by transforming the resort’s supply chain through guidance fromWWF on seafood sourcing, supplier engagement, verification of data and traceability, and chef education. In addition, Marina Bay Sands has supported eight farms across Malaysia and Singapore in their work withWWF’s aquaculture improvement programs. In 2022, the program was extended to include an additional farm in Singapore. Since joining the program, all farms have shown significant improvement across the activities required to meet the ASC certification for farmed seafood. One farm has reached the necessary milestones and is currently seeking certification. 63 More information and data on sourcing can be found in the Appendix on page 63. SOURC I NG In striving for sustainability with the thousands of goods and services we procure, our aim is to select products, packaging and suppliers that have a positive impact on the environment and our communities. AT A GL ANCE P I L L AR Planet STRATEGY Sourcing Sustainable Food Source ingredients friendly to the environment and biodiversity Building Design and Renovation Integrate energy-saving and eco-conscious products and materials Resort Operations Incorporate sustainable options into business processes and the guest experience As a result, procurement strategies are constantly evolving to address the latest sustainable guidelines and supply availability. For example, changing developments with sustainable seafood certified by the Marine Stewardship Council (MSC) and Aquaculture Stewardship Council (ASC) requires ongoing monitoring. In late 2022, the MSC certificate for lobster sourced from the Gulf of Maine was suspended due to the negative impact of the fishery on North Atlantic right whales. These circumstances affected our sustainable spend, while reduced resort visitation has continued to alter purchasing and impose budgetary restrictions, making sustainable sourcing more difficult in 2022. Accomplishments Our procurement teams incorporate emerging sustainability requirements into purchasing guides for a variety of products relevant to our business, including seafood, vegetables, coffee, tea, lighting, paints and paper. Seafood: We integrate sustainable seafood products frommenu creation and ingredient selection to final sourcing, continuously working with our chefs to develop sustainable dishes and procure certified seafood. We rely on trusted certifications such as MSC and ASC to ensure our purchases are from well-managed and sustainable fisheries that protect the marine environment. In 2022, Sands China’s Churchill Table restaurant expanded the number of sustainably sourced menu options in celebration of United Nations World Oceans Day, and Marina Bay Sands hosted tastings to encourage chefs to use available sustainable alternatives and replaced seabass served in Team Member dining rooms with stock from a farm supported by the Aquaculture Improvement Program. Further information on ocean health can be found in biodiversity on page 19. Plant-Based Alternatives: Beyond our seafood scope, another focus is to source products that support wellness while reducing our carbon footprint. As a result, we are expanding plant-based and alternative-protein offerings at restaurants and TeamMember dining rooms. This past year, Marina Bay Sands partnered with the Wellness Festival Singapore on a Meatless May campaign in which eight food and beverage $6.7M Sustainable seafood sourced globally 29% Sustainable coffee, tea and beverages sourced globally 79% Sustainable bed linens sourced globally 99% Sustainable paper hygiene products sourced globally Given the vast array of products our resorts purchase, we prioritize the categories with large spend, combined with assessment of meaningful sustainable impact and clear environmental criteria. Each category has its own unique requirements and ever-changing dynamics, compounded by the fact that many products are made of a mix of materials with their own ecological and social considerations. Photo Credit: WWF Singapore APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 17 CLOSING
WATER STEWARDSH I P Our strategy to preserve one of the planet’s most precious natural resources focuses on pursuing water efficiency, reuse and recycling, and protecting the water ecosystems surrounding our resorts. We are dedicated to using water wisely and safeguarding the waterways in our regions. Water is one of the resources most critical to our business. From showers in hotel rooms and drinking fountains in offices to our 200-plus restaurants that use water to clean, cook and serve guests, water is integral to delivering service to all who enter our resorts. Further, water is fundamental to building operations, from cooling systems to landscaping. Similar to energy, water consumption is strongly tied to guest visitation and hotel occupancy, which remained below normal levels last year due to the pandemic’s continuing impact. The pandemic also has necessitated practices that require more water for cleaning and sanitizing. Though water usage decreased by 31% in 2022, we remain vigilant in our strategies to conserve water and protect local waterways. Our AT A GL ANCE P I L L AR Planet APPROACH Water Stewardship Water Efficiency Upgrade fixtures and systems; enact water-conservation policies Water Reuse Increase use of nonpotable water Ecosystems Engage local communities to reinvigorate biodiverse ecosystems 2025 TARGETS 3% Reduction in potable water use per square foot from a 2019 baseline 202 2 PERFORMANCE 31% Reduction from baseline Achieved1 pathway to future progress includes enhancing accountability, driving behavior change and exploring other advanced infrastructure solutions to improve efficiency and increase reclamation. Accomplishments While we target water conservation projects in all segments of our business and with local communities, we made marked headway in a few key areas this past year. Internal practices: Reducing the water footprint in our restaurants was a significant focus. Efforts included integrating water-efficient fixtures and appliances and pinpointing areas for better water management. Marina Bay Sands installed water-efficient dishwashers in convention and hotel areas, as well as expanded its water-smart management program to 10 food venues. CATALYZ I NG COMMUN I T Y WATER I N I T I AT I VES Sands’ unique collaboration with Clean the World on the Drop by Drop Project supports water conservation programs via grants to local environmental organizations. In 2022, third-year grant recipient University of Saint Joseph (USJ) Macao continued its Drop by Drop work to preserve local wetlands through community-based education and awareness activities and scientific studies of mangroves’ ability to sequester carbon and remove microplastics from freshwater and marine waterways. USJ conducted exhibits and workshops to engage community members and assist teachers in educating students about the role mangroves play in ecological preservation. The next phase of mangrove studies focused on citizen-based research using local volunteers to collect soil and data samples for microplastic assessment and a field study utilizing smart wave sensors to understand the protection mangrove forests offer in response to severe weather events. In addition, USJ’s annual mangrove planting with Sands China TeamMembers established 1,000 seedlings along the coast of Taipa, Macao. 64 More information and data on water stewardship can be found in the Appendix on page 64. Practices include identifying water misuse – such as taps left running, leakages and damaged fixtures – and improving cleaning procedures to minimize consumption. Education and Engagement: With 36,000 global TeamMembers and over 4,000 suppliers and partners, providing water conservation education and engagement programs to the people who work for and with us can reverberate into our communities, impacting water use and protecting local waterways. In support, Sands China hosted its annual Green Products Roadshow onWorld Environment Day, enabling TeamMembers to purchase eco-friendly products from local SMEs, including purchases of water-savings products for home use. The company also provided free booth space for vendors to sell water-efficiency products at the annual Sands Shopping Carnival. 1 The operational downturn associated with the global pandemic positively impacted this result. 2022 ESG REPORT 18
B I OD I VERS I T Y Biodiversity loss has quickly risen to the top of sustainability agendas around the world. Many experts say it is one of the three most severe global risks following climate action failure and extreme weather. As pressure continues to mount, businesses must rethink their ability to thrive in harmony with nature. To further our biodiversity strategy, we plan to round out existing water and nature conservation programs by strengthening efforts to prevent deforestation. Our pathway necessitates identification of sustainable alternatives for palm oil and high-volume wood and paper products. We are also evaluating other deforestation hot spots in our supply chain from agricultural commodities such as coffee and cocoa. As we work to address these areas, our interim focus is on increasing purchases of Forest Stewardship Council (FSC)-certified products for wood, paper and single-use disposables. Accomplishments We already are making progress in the foundational areas of our biodiversity strategy. Deforestation Prevention: By sourcing FSC-certified products, we protect precious rainforests and old growth forests by ensuring wood and paper materials come from responsibly managed sources. In 2022, Sands China sourced nearly $1 million of FSC-certified products, including tissue and hand towels; paper plates, cups and napkins; coasters, bags, bamboo sticks and skewers; and some furniture and furnishings. Marina Bay Sands has upgraded boxed amenities in newly renovated rooms with FSC-certified packaging materials, and a majority of toilet paper and tissues is made either from 100% pure or mixed FSCcertified materials. Globally, we are now sourcing Nespresso coffee produced using Rainforest Alliance-endorsed practices for sustainable farming management and community resilience. Ocean Health: We continue to remove highly vulnerable ocean species from our seafood supply chain. See pages 17 and 63 in the Appendix for more information. Nature Conservation: The Communities pillar of our corporate responsibility platform aims to preserve our regions’ natural heritage through environmental education and volunteerism for local conservation initiatives. See details in cultural and natural heritage on page 36. 66 More information and data on biodiversity can be found in the Appendix on page 66. ENGAG I NG ON OCEAN B I OD I VERS I T Y As part of its continuing work through Sands’ Drop by Drop Project, Conservation International Singapore developed a five-part virtual learning series to boost ocean literacy and the understanding of biodiversity. The series was featured at the ArtScience Museum™ over three days, in which more than 400 people viewed films and participated in an interactive activity for the Whales in a Changing Ocean screening. Marina Bay Sands also shared the series at its Sustainability Action Day, reaching nearly 800 Team Members and their families. The event marked the launch of the 10 for Zero competition, which aims to engage with 10,000 youths aged 16 to 35 to assess sustainability issues and opportunities in Singapore, with an emphasis on the relevance of climate change and ocean conservation on their well-being and future. Conservation International’s Valen’s Reef, an immersive virtual reality exploration that highlights the rich biodiversity and mangrove ecosystem of the Raja Ampat Marine Protected Area in Indonesia, was also showcased at the event. AT A GL ANCE P I L L AR Planet APPROACH Biodiversity1 Deforestation Prevention Reduce key drivers of deforestation in our supply chain Ocean Health Protect marine environments and safeguard vulnerable species Nature Conservation Preserve ecology through education and nature-based carbon removal projects Biodiversity is an emerging topic that we have been addressing as part of our commitment to water stewardship, sourcing, and cultural and natural heritage. We are in the process of building a comprehensive biodiversity strategy by gaining understanding of our impacts and opportunities relating to three key realms: oceans, freshwater and land. Biodiversity-related initiatives already in place as part of other focus areas include our sustainable seafood program (see sourcing on page 17), in which we are eliminating shark fin and non-certified bluefin tuna from our supply chain; the Drop by Drop Project, which involves reinvigoration of local water ecosystems (see water stewardship on page 18); and engagement activities that bring Team Members closer to nature for a greater understanding of their role in limiting biodiversity loss. 1 While not a formal focus in our strategy platform, biodiversity continues to emerge as a topic of importance in our materiality assessment (see page 53). We have been addressing biodiversity under several topic areas and are formulating our biodiversity approach for incorporation into our Planet pillar. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 19 CLOSING
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