Tools and Models Utilized Indicators Assessed WTWClimate Diagnostic1 Drought Fire Heat stress Precipitation River flood (defended) River flood (undefended) Tropical cyclone WRI Aqueduct Water Risk Atlas Water stress WWFWater Risk Filter Water scarcity IPCC Global mean sea level rise Formation of paths of tropical cyclones National Oceanic and Atmospheric Administration Tropical cyclone formation regions IEA Global Energy and Climate Model Carbon pricing TCFD I NDEX CONT I NUED Enterprise Risk Management Assessment Management Through a comprehensive system of reporting, controls and mitigation procedures, our ERM program allows us to manage the potential for loss as well as reduced opportunities for gains, which may adversely affect achievement of our company’s objectives. Our ERM program facilitates identification of priorities through risk assessments conducted in collaboration with operational risk owners throughout the company. Risks escalated through the ERM process, including ESG-related risks, have formal mitigation plans that are reviewed and approved, with periodic updates provided on the progress of their implementation. Business units are then responsible for developing risk mitigation plans. Risks with potential material impact are outlined in our annual report, which can be found at https://investor.sands.com. Nonmaterial risks that are not included in the ERM process are managed and monitored by respective business units. Environmental Risk Assessment Management Sands conducts an environmental risk assessment, including climate-related risk evaluation, through processes aligned with best practices from the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Enterprise Risk Management and TCFD frameworks. The Sands ECO360 team executes risk assessments every one to three years and often more frequently, depending on emerging developments or changes in our business. The environmental risk assessment process uses multiple methods to identify risks, including background research, ongoing risk monitoring and stakeholder engagement. We use publicly available tools, research-based GHG concentration trajectories and internal analysis to complete the assessment. Potential risks are categorized as transition risks or acute and chronic physical risks. Transition risks include policy and legal changes, new technologies, updated market requirements, emerging reputation considerations and value chain issues. Acute and chronic physical risks include conditions such as extreme weather events or long-term drought. We then assess environmental risks on five-point scales for likelihood and impact. Identified risks are either included in the ERM process or managed by the Sands ECO360 team, depending on their impact. Results of environmental and social assessments are integrated into the company’s ESG materiality assessment for further management of low-level risks. This process provides a foundation for developing strategies within the People, Communities and Planet pillars of our corporate responsibility platform. Each strategy is supported by a topical brief, action plan, ESG benchmarking and other mitigation tools, as needed. Where appropriate, we have also developed specific goals to address priority issues. Risk Management 1 Not all climate-related risk assessments are available for all scenarios or time horizons. Scenarios Assessed Time Horizons Physical Risk Pessimistic (representative concentration pathway, (RCP) 8.5) Current, 2030, 2050 Business-as-usual (RCP 4.5) Current, 2030, 2050 Optimistic (RCP 2.6) Current, 2030, 2050 Transition Risk: Carbon Tax IEA Stated Policies Scenario (STEPS) 2030, 2050 IEA Net Zero Emissions by 2050 Scenario (NZE) 2030, 2050 Scope Covered Own operations Included Upstream and downstream activities Currently only included in the IEA NZE scenario Additional References CDP Climate Change and Water Response C2.2-2.4 2022 Annual Report p. 25 2022 ESG REPORT 106
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