Transition Risks Impact Risk Identification Mitigation Strategy Policy and Legal Carbon tax schemes and climate regulations Increased utility and compliance costs due to carbon tax and other regulations Currently, we are not directly subject to carbon tax schemes in any of our locations. In Singapore, large producers of emissions are subject to a carbon tax. Marina Bay Sands is not considered a large producer under this scheme, but is subject to a carbon tax passed through by its electricity supplier. The government announced future increases for the carbon tax: S$25 in 2024–2025, S$45 in 2026–2027 and S$50–S$80 by 2030. The impact of the current carbon tax tariff on Sands has been negligible. The current forecast for 2030 indicates an $8–$11 million impact if 100% of the tariff is passed on to Sands, impacting electricity, chilled water and hot water consumption, and if no other mitigation measures take place. We also conducted additional simplified preliminary scenario analyses utilizing the IEA’s Global Energy and Climate Model (NZE and STEPS scenarios). While the intent is to align these analyses with the lifespan of our assets, the IEA carbon pricing forecasts are only available through 2050. We plan to further refine our scenarios based on technological development. To mitigate exposure, the company established stringent efficiency goals in line with the Science Based Targets initiative and continually invests in projects intended to reduce energy consumption. Market Changes in consumer preferences Reduced revenue from shifts in consumer travel and stay preferences due to climate change Consumer preferences are relevant to our company. However, we do not believe we are currently experiencing changes in consumer preferences due to climate change. In the hospitality, tourism and gaming sector, consumer preferences tend to be driven primarily by service offerings, customer service and destination desirability. We do not currently have sufficient information to forecast the medium- or long-term impacts of changes in customer preferences. We continue to expand our services to address shifting consumer preferences based on consumer feedback, stakeholder engagement, and market trends and research. For example, Marina Bay Sands launched a state-of-the-art studio for hosting hybrid in-person and virtual events. Similarly, we launched the Smart Stage virtual meeting offering at The Londoner Macao. Our green meetings program offers solutions for clients that value sustainability. Many food and beverage outlets in both locations offer sustainable menu options for eco-conscious customers. Reputational risk Reduced revenue due to missed business opportunities Reputational risk is relevant to our company. We believe that our low-carbon strategy and Sands ECO360 global sustainability program reduce our reputational risk as it relates to climate change. We developed a comprehensive corporate responsibility platform that covers three pillars – People, Communities and Planet – supported by our governance practices. We value transparency and share our progress through our annual ESG Report and various other ESG frameworks. Technology Inability to meet our ESG commitments Increased costs of renewable energy to meet our ESG commitments Lack of renewable energy availability or the high cost of renewable energy credits may impact our ability to meet our emissions-reduction target in the future. While the impact on our 2025 ESG commitments is likely insignificant, we are currently assessing renewable energy supply for the 2030 time frame. We have created detailed roadmaps to meet our environmental targets and continue to pursue multiple solutions simultaneously. The company has dedicated sustainability teams responsible for implementing ESG-related projects and initiatives in each of our regions. Climate-Related Opportunities Impact Opportunity Type Management Approach Resource Efficiency Building operations efficiency Reduced operating costs While relevant to meeting our ESG commitments, the operating cost reduction associated with efficiency projects is not material. Regardless, we plan to continue implementing efficiency projects in the long term. We continually seek energy- and water-efficient alternatives and initiatives to implement throughout our resort portfolio. We created a low-carbon transition roadmap that outlines our approach to reducing energy consumption. We established stringent efficiency goals in line with the Science Based Targets initiative that further support our focus on operational efficiency. Alternative energy and water sources Reduced operating costs While relevant to meeting our ESG commitments, the operating cost reduction associated with alternative energy and water sources is not material. Regardless, we plan to continue implementing alternative energy and water sources in the long term. In line with efforts to address efficiency in building operations, we continue to research, test and implement alternative sources for energy and water. We believe that piloting innovative technologies will allow us to scale solutions when future needs arise. Service Offerings Sustainable options Better competitive position Customer retention Potential revenue opportunity While relevant for customer satisfaction and overall reputation of the Sands ESG program, the potential revenue opportunity associated with sustainable options is negligible in the short term. We continue to extend sustainable options primarily to our MICE and food and beverage customers. We explore and offer sustainable menu options such as plant-based alternatives, local food, sustainable seafood and organic or other certified items. Our green meetings program for MICE clients has been in place for nearly a decade, and we make ongoing enhancements to meet demand and expectations. We have the only triple-platinum-certified MICE venue in Asia, with LEED Platinum, Green Mark Platinum and Events Industry Council certifications for Marina Bay Sands. TCFD I NDEX CONT I NUED APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 105 CLOSING
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