ESG I NTEGRAT I ON Recognizing the importance of our supply chain as a factor in the health of our business and the responsible performance of our company, we fully integrate ESG protocols and standards into our supply chain management approach. Environment We leverage our Sustainable Procurement Policy to source products and services that minimize environmental impact, as well as our Sustainable Development Standards to guide the design and building of our resorts in a responsible and sustainable manner. We also focus on sustainable procurement and set internal targets to purchase sustainable products in categories such as seafood, vegetables, coffee, tea, lighting, paints, adhesives and other categories that meet our business needs. For more information, please see sourcing on page 17. Social Our comprehensive Supplier Code of Conduct establishes our standards for human rights and labor issues. Strict policies and procedures, such as our Anti-Human Trafficking Policy and Workplace Safety and Health Guidelines, govern the sourcing process. We monitor and assess our suppliers for compliance with these expectations. We also employ region-specific strategies to make sourcing decisions in line with company goals for conducting business with local suppliers, SMEs and diverse businesses. For more information, please see human rights on page 29. Governance Our compliance assessments and capability evaluations are important pieces of our supplier evaluation process. Ensuring our suppliers have solid foundational practices and are fit to do business sets up our relationships for long-term success. Monitoring and Evaluation To ensure suppliers meet our standards, supplier management teams visit select suppliers to review their performance and detect signs of violations. For suppliers that operate in regions and product categories that are more prone to Supplier Code of Conduct violations, we enlist recognized third-party audit firms to conduct on-site audits. Sands conducts three types of ongoing supplier audits. First, our compliance organization completes TPDD evaluations, which are conducted annually for high-risk suppliers and periodically for medium-risk suppliers. Second, Sands’ quality control team conducts audits of qualifications; on-site facilities, factories and project sites; data security; and other relevant areas for selected business categories, such as construction, furniture and lighting, gaming, food supply and technology. Finally, we engage independent third-party audit firms to conduct on-site audits for suppliers in selected regions and categories based on criteria including: • Type of product or service provided • Region in which suppliers are based • Current and projected company spend with the supplier • Feedback from our procurement and supplier quality teams Relationship Management If Sands or an independent third-party auditor identifies a corrective need, we share audit findings and require an action plan to address the issue. For minor violations, we work with suppliers to address and remediate issues. Suppliers must follow an identified protocol to establish corrective action, and we diligently manage these relationships. For existing suppliers, we review corrective action plans to ensure they appropriately address audit findings and evaluate implementation of the corrective action plan through documentation or a re-audit of the supplier. In rare cases when the supplier is not cooperative on a meaningful corrective action plan or its implementation, we exit the supplier engagement. For suppliers beginning a new engagement with Sands, our assessments are on a pass or fail basis, regardless of the method of assessment: TPDD, qualification review or on-site factory evaluation. Suppliers who are unable to meet our criteria do not proceed into a business relationship with Sands. 100% New suppliers are screened and advised of our Supplier Code of Conduct 98% Conformance with ESG requirements in 2022 per third-party audit 88 More information and data on supply chain management can be found in the Appendix on page 88. APPENDIX GOVERNANCE SOCIAL ENVIRONMENT OUR PERFORMANCE INTRODUCTION OUR STRATEGY 45 CLOSING
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