1 Sustainable spend is representative of procured products and services that meet our global sustainability criteria and requirements. 2 Data has been restated. Boundary excludes corporate spend, as we were unable to separate prior years’ corporate data from our Venetian Las Vegas Resort data. MANAGEMENT APPROACH SOURC I NG Oversight and Responsibilities Sustainable sourcing is integrated into our overall supply chain strategy, which is overseen by our chief procurement officer. Procurement teams work with department heads and sustainability teams to assess alternatives and increase sustainable purchasing. We dedicate multiple buyers in each region to focus on sustainable sourcing. Policies • Environmental Responsibility Policy • Sustainable Procurement Policy • Sustainable Development Policy • Bluefin Tuna Sourcing Restriction Policy Targets and Commitments We have set internal qualitative and quantitative targets for sustainable sourcing. Our program supports UN SDG 12: Responsible Consumption and Production and UN SDG 14: Life BelowWater. Strategy We procure thousands of products and services to deliver an exceptional guest experience, and our buildings require constant upkeep of fixtures and equipment. We strive to source products and services that are environmentally conscious and contribute to supporting our communities, in line with established criteria and to increase opportunities for sustainable performance. Sustainability criteria for all products and materials are outlined in a category-level framework that incorporates preferences for third-party sustainability certifications such as the Forest Stewardship Council, the Marine Stewardship Council and Fairtrade. In certain product categories, sustainability criteria must be met for purchasing. For other categories, criteria must be followed, where feasible, while sustainable attributes are being explored. Sustainable Food: We source eco-friendly ingredients and provide sustainable cuisine in restaurants by selecting foods with credible certifications, ensuring animal welfare, increasing plant-based proteins and addressing commodities of concern. Seafood is a priority category because of our spending level, and we drive progress in sustainable seafood sourcing by partnering with WWF and being a member of the Hong Kong Sustainable Seafood Coalition. Building Design and Renovation: We integrate energy-saving technologies and environmentally preferred products and materials including facilities equipment, LED lighting, carpet and furniture. Resort Operations: We explore sustainable options for incorporation in business processes and the guest experience including guest room amenities, laundry services, transportation and technology equipment. Training and Communications Training is provided to educate procurement teams on sustainable product certifications, desirable product and service attributes, and our annual sustainable sourcing action plan and goals. Additionally, the procurement department attends annual trainings on our Code of Business Conduct and our Ethics and Human Trafficking Prevention Policy. We engage our suppliers in ongoing dialogue to monitor their performance, promote our preference for products and services that are environmentally conscious and supportive of our communities, and educate them on environmental considerations and impacts of service delivery. Business reviews are held with key suppliers to communicate priorities, discuss their performance scorecards (including sustainability and corporate culture metrics) and define improvement action plans. For certain product categories, suppliers are asked to report on various attributes of their products or services to aid us in assessing and reducing our footprint. Evaluation and Adjustments On a monthly basis, we evaluate sustainable spend of key procurement areas including food and beverage, building facilities, operating supplies and marketing materials. Specifically, we evaluate sustainable spending on commodities such as seafood, coffee and tea, cleaning products, LED lightbulbs and paper materials. To keep our criteria current, we update our category framework annually in alignment with third-party certifications and conduct additional exploration as needed. Sustainable Spend1 20202 20212 2022 Seafood 32% 34% 24% LED lightbulbs 94% 91% 98% Coffee, tea and beverages 25% 30% 29% Paper hygiene 99% 97% 99% 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 63 CLOSING
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