MGM China Holdings Limited - Environmental sustainability

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Environmental sustainability

Our Approach to Environmental Management

As a developer, owner and operator of premiere integrated resorts, we are aware of our impacts on the environment through our consumption of natural resources and generation of emissions and waste.  Our dedication integrates environmental considerations into all operational practices from our supply chain, to our facilities management and guest rooms. We believe an environmentally-responsible business is a better business that brings benefits not only our Company but also the local community through our employees who are supported to adopt environmentally-responsible behavior at work and at home.

Our environmental management approach is defined by an ethos of continual improvement and we strive to find innovative ways to minimize our impacts on the environment. The Company’s Environmental Management System is aligned to well-recognized best practice frameworks, including ISO 14001 in Environmental Management, ISO 50001 in Energy Management, as well the EarthCheck Company Standard.

Emissions

In planning for the future, we recognize the potential threat of climate change to our business and the impact on the communities in which we operate. We are committed to reducing our emissions through our resource efficiency initiatives and fostering climate change awareness and action among our people. Further, we disclose our carbon footprint through the Carbon Disclosure Project (“CDP”) as part of our parent company, MGM Resorts International’s, report. Through this reporting tool, we have considered the risks and opportunities presented by climate change, as well as future global trends that may affect our business.

With energy accounting for approximately 98% of our emissions, our carbon reduction strategy focuses on the rigorous reduction of our emissions from energy sources (see the below “Energy Performance” section for more detail on our efforts to reduce energy consumption, which will also reduce our emissions from energy sources).  In 2016, total greenhouse gas emissions (Scope 1and Scope 22) were 71,1723 tons of CO2e, a 3% decrease year-over-year, and 15% decrease from 2013. This decrease is principally attributable to significant reductions in electricity consumption.

Emissions through our leased shuttle bus service is also an area of focus with ongoing initiatives to reduce the quantity of shuttle buses on Macau roads with the joint aim to reduce traffic and emissions. To support the Macau Government’s transport integration arrangement, we collaborated with Wynn Macau to launch a daily joint shuttle bus service connecting passengers between the Border Gate, Wynn Macau and MGM MACAU, the first collaboration of its kind in Macau. 

Natural Resource Use

At MGM China, we are aware that our planet’s supply of natural resources is limited. With this in mind we are actively engaged and committed to resource conservation and efficiency.

Our Building Management System ensures energy and water consumption is closely monitored and energy and water-intensive equipment is effectively calibrated and maintained. We have also implemented a data management system which allows us to access real-time energy and metered water data in a central, web-based system.  Through this system, analytical tools allow us to perform complex analyses to help us better understand our impacts and areas for improvement, as well as to enable us to produce automated reports for distribution.

Energy Performance: Our energy consumption in 2016 was 86,642,440 Kwh, which included purchased electricity, liquefied petroleum gas (“LPG”) and gasoline4

Energy type

Amount consumed in 2016 (Kwh in 000s)

Energy unit consumed per m2 (intensity)

Emissions (tons of CO2e)

Purchased electricity

70,162

0.33

65,883

LPG (for stoves, boilers & water heating)

15,873

0.08

3,806

Gasoline (for shuttle buses & limousines)

607

0.003

190

Year-over-year, we have reduced our energy consumption by 3%, and 30% since our 2008 baseline. We have achieved this despite a growing business and a progressively warming climate, thanks to energy saving initiatives such as technical upgrades to our equipment, operational control strategies and enhanced information management. Significant energy and emissions reductions have been realized from the following projects:

  • Heat pump installation;
  • Chiller plant optimisation;
  • Air handling units optimisation;
  • On-going LED (light-emitting diode) lamp replacement; by end of 2016 100% of general guest room lighting, and 95% of our back-of-house areas, have been fitted with LED lighting;
  • Monitoring-based commissioning to identify operational opportunities for energy reduction; and
  • On-going procurement of energy-efficient equipment.

In 2016, to further validate and formalize our energy management program MGM MACAU is certified against ISO 50001 in energy management.  

 

Water Performance: Water scarcity is a pressing and urgent issue for many countries around the world and it is therefore everyone’s responsibility to ensure this vital resource is conserved. The majority of Macau’s water is sourced from the Xijiang River, the mainstream of the Pearl River, with low risk of lack of potable water supply, however there are concerns of raised salinity levels during certain periods of the year5.

In 2016, we continued to reduce our water usage through our ongoing program of upgrading our fixtures and fittings (e.g. shower heads and faucets) with low-flow alternatives, as well as adjusting our flow rates where possible.  Throughout the year, we also continued to increase the scope of our water recycling program which serves to recycle the condensate from our air handling units, as well as the cooling tower bleed-off, to be reused for flushing.

In 2016, we consumed 649,674 m3 of water, a decrease of 6% year-over-year, and 19% decrease from our 2012 baseline. 

Waste Management

We recognise the importance of responsible waste management, and endeavor to reduce waste (hazardous and non-hazardous) sent to the landfill and incineration by managing our resources wisely.  In 2016, the Group generated 4,223 tons of waste, a decrease of 9% year-over-year, and 15% reduction from our 2012 baseline. 

Our waste management approach in 2016 focused on three important areas:

  • Reducing: For example setting all of our printers’ default setting to double-sided printing and removing the availability of disposable water bottles in back-of-house meeting rooms;
  • Reusing: For example using reusable items such as containers, cutlery, stirrers and cups and giving our guests the option of not having their towels and linen refreshed if they do not see the need; and
  • Recycling: Deploying recycling facilities for the collection of plastic, paper, cardboard, cooking oil, soap, metals and glass.

Typical non-hazardous waste includes organic waste, plastics, metals, paper & cardboard, fabrics and textiles.  Common hazardous wastes include diesel, compressed gases, oil-based paint, cooking oil, solvent adhesives, dry clean oil, acidic/alkaline and chlorine solutions (for pool water treatment), and batteries. Our hazardous waste management procedure ensures that such wastes are used up or returned to suppliers for safe disposal. Items such as cooking oil, toner cartridges and rechargeable batteries are recycled. In 2016, 0.002% of waste, or 8.45 tons, was hazardous waste, a decrease of 9% year-over-year.  

Green Building

We incorporate green building techniques into our design, development and construction processes using industry-leading green building frameworks. To ensure MGM COTAI is not only a best in class integrated resort, but also environmentally responsible, we have integrated green building techniques throughout the design and construction processes. Some of the key highlights of our green building program at MGM COTAI include: high-tech energy efficient air-conditioning, 100% LED lighting, low-flow water fixtures and fittings, use of recyclable and local construction materials, and systems for advanced indoor air quality. A focus on natural greenery pervades throughout the property; the Spectacle will boast a towering 500 square meter green wall and 600 square meters of additional horizontal greenery which will connect visitors to nature whilst boosting air quality and occupant well-being.

Biodiversity

For any new construction, we are committed to protecting ecosystem biodiversity. When selecting the site for MGM COTAI, an external Environmental Impact Assessment was commissioned to ensure there was no loss to ecosystem biodiversity of the site chosen. The report concluded with this positive result that both the site and surrounding 500 meter radius contained no heritage aspects, natural water resources, wetland, farmland, forest or other protected areas. Outside of our direct operational impact, we also seek to encourage our employees, suppliers and partners to also adopt responsible practices to support biodiversity through our engagement programs and policies.

Green Procurement

Wherever possible, we seek to favor procuring goods and services that cause minimal adverse environmental impacts, and make this clear to our suppliers. For example, we favor those that are more energy and water efficient, or products that include less toxins to reduce adverse health effects, or those that use less packaging. Suppliers are monitored to ensure our standards are being met, with adhoc audits being carried out. In 2016, we spent over HK$69 million procuring products that are environmentally-preferable, such as office paper certified by the Forest Stewardship Council, sustainable seafood and biodegradable laundry products, for example.

Employee Engagement

We proactively engage our employees in our efforts to manage our environmental impacts.  In 2016, our environmental employee engagement program focused on periodical themed events, and ongoing education and communication. 2016 event highlights included:

  • Energy Conservation Week, in support of the Office for the Development of the Energy Sector’s efforts, with key initiatives including tips to promote energy saving at work and at home, casual wear day, and energy saving games;
  • The Let’s Waste Less Campaign, in support of the 9th Macao International Environmental Co-operation Forum and Exhibition (“MIECF”), with a range of activities centered on waste reduction and recycling, such as the Recycling Bag Design Competition;
  • Tree Planting and Beach Cleaning exercises, that connected employees to nature whilst cleaning up our surrounding environment; and
  • A movie screening of Before the Flood, from Academy Award-winning actor, Leonardo DiCaprio, which helped open eyes to the realities of climate change.

During new hire orientation, all employees are made aware of our sustainability commitments and program. This is supplemented by department-specific Green Training for detailed advice on actions that can be taken to reduce impacts.

In addition to a monthly Sustainability Newsletter that is distributed to all employees celebrating monthly successes, we post stories and videos from our environmental program through our internal communication channels to update employees on our progress. We also welcome 2-way feedback, encouraging ideas from employees on how we can do things better.

Community Outreach

We are passionate about sharing what we have learnt from many years of dedication to sustainability with the community. Through seminars, forums, and MGM Property Green Tours, we hope to inspire the community to also take sustainable steps in their own lives and professions, and together create a greener Macau. Highlight initiatives from 2016 include:

  • Educational Sustainability Seminars for local students at Macau Polytechnic Institute, as well as University of Macau, on why it is important to protect the environment;
  • Sponsorship of the Macao Dialogue on Contemporary Lighting Technologies, which welcomed Nobel Laureate, Professor Shuji Nakamura, who is one of the founding fathers of LED lighting technology, to discuss technologies in the field of lighting for energy savings;
  • Sponsorship of the Inauguration of the Macau ASHRAE Chapter, of which also included a technical forum on energy efficiency for the professional and academic community. (ASHRAE being the “American Society of Heating, Refrigerating and Air Conditioning Engineers”);
  • Donation of ASHRAE educational materials in green building design to the engineering department of University of Macau;
  • Participation in Earth Hour 2016, joining together with MGM Resorts International in the global effort to raise awareness of climate change and environmental protection; and
  • Participating in expert speaker panels at sustainability industry forums for knowledge sharing in Macau, Beijing and Hong Kong.

2016 Recognition – Environmental Sustainability

  • MGM COTAI has been awarded the “China (Macau) Green Building Design Label” for leadership in environmentally-sustainable design. MGM COTAI is the first private sector property in Macau to have received the Label;
  • MGM MACAU was recognized by ASHRAE for achievements in energy efficiency by being awarded the “Regional Technology Award for the Asia Pacific Region” for the second year running, and also received the “Honorable Award” for innovation in energy conservation projects; and
  • MGM MACAU was selected as finalist in the Bank of China Environmental Leadership Award as well as the Hong Kong Green Building Council’s “Green Building Award 2016”.

Notes:

  1. Scope 1 emissions include emissions from stationary combustion sources, such as boilers, emergency generators and fuel stoves, mobile combustion sources, such as company-owned and operated fleet vehicles, including cars, limousines, shuttle buses, etc.; and fugitive emissions which are the hydrofluorocarbons (“HFC”) used in refrigeration and AC equipment.
  2. Scope 2 emissions comprise emissions from the generation of purchased electricity.
  3. GHG emissions calculation has been updated to reflect the correct emissions factor for 2015, which was previously unavailable in first quarter of 2016.
  4. Diesel is used to power our genset periodically, however no diesel purchased/used in 2016.
  5. “Report on the State of the Environment of Macao”, 2015, DSPA