MGM China Holdings Limited - ENVIRONMENTAL SUSTAINABILITY

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ENVIRONMENTAL SUSTAINABILITY

COMMITMENT TO ENVIRONMENTAL RESPONSIBILITY

Our Approach to Environmental Management

At MGM China, we believe an environmentally-responsible business is a better business. 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.  We are committed to integrating environmental considerations into all operational practices from our supply chain, to our facilities management and hotel rooms.

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 recognized best practice frameworks, including ISO 50001 in Energy Management. Being Macau's first integrated resort operator to receive ISO 50001 Energy Management System certification in 2016 for MGM MACAU, MGM China has been recognized for excellence and leadership in the use of energy management to improve building performance.

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 2018, the total greenhouse gas emissions (Scope 11 and Scope 22) were 159,0243,5 tons of CO2e, a 20% decrease for MGM Macau and 89% increase (all properties) compared to 2013. This increase in 2018 was due to our new property (MGM COTAI) opened on Feb 13, 2018.

All guest limousines and leased shuttle buses are Euro IV and V compliant, meaning lower levels of pollution. 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. In 2018, we purchased 6 electric buses that have zero emission, which are used on the routes that pick up and drop off our guests at the newly opened Hong Kong-Zhuhai-Macau bridge terminal and running on the routes between MGM China properties and the border gates.

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 2018 was 215,6665 kilo watt hours (“kWh in 000s”), which included purchased electricity, liquefied petroleum gas (“LPG”), diesel and gasoline. 

Energy type

Amount consumed in 2018 (kWh in 000s)

Energy Unit Consumed Per m2 (Intensity)

Emissions
(tons of CO2e)

Purchased electricity

180,474

0.362

151,237

LPG

28,689

0.058

6,283

Gasoline

979

0.002

238

Diesel

5,524

0.011

99

We remain dedicated to continuous improvement and finding new and innovative ways to continue our downward trend, despite a growing business and a progressively warming climate. Targeted retrofitting of our properties with more energy efficient equipment and focusing on employee behavior change in favour of energy conservation will continue to be areas of focus.

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. Whilst there is a low risk of lack of potable water supply, concerns have been raised concerning salinity levels during certain periods of the year4.

In 2018, we continued to conserve our water usage through our ongoing program of upgrading our fixtures and fittings (for example, 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 2018, MGM MACAU consumed 647,177 m3 and MGM COTAI consumed 754,879 m3

Waste Management

We recognize 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 2018, the Group generated 4,175 tons of waste for MGM MACAU and 3,882 tons of waste for MGM COTAI.

Our waste management approach in 2018 focused on three important areas:

Reducing: For example, MGM China has announced its intention to cease use of single use plastics in all of ourfood and beverage outlets by early 2019, becoming the first operator in Macau to offer plastic straws only upon request in all of our restaurants.

Our efforts to phase out single use plastic include:

  • Providing straws to our guests by request only
  • Replacing all plastic bags with paper bags
  • Giving out takeaway cutleries only upon request
  • Minimizing packaging for our pastry retail items
  • Replacing all the plastic takeaway food containers, beverage cups , straws, and cutleries with plant based biodegradable materials

Reusing:    For example, using items such as reusable containers and cups instead of disposable ones, givingour guests the option of not having their towels and linen refreshed if they do not see the need, and donating furniture to local charities; and

Recycling:  Our goal is to reduce waste as much as possible. But when we do have waste, we have a comprehensive recycling program for plastic, paper, cardboard, glass metals and e-waste. Other departments have specific facilities for particular products such as soap recycling collection points for housekeeping, and cooking oil collection drums for food and beverage. In 2018, we added new recycling streams to our program, including:

 

Safety gear: We initiated a helmet and safety gear recycling campaign for reusing and recycling.

 

 

Coffee capsules: In partnership with Nespresso, we launched a coffee capsule recycling scheme to collect capsules from our resorts’ rooms, restaurants and offices.

 

 

Lai See Packets (Red Packets): We supported the “Lai See Packets Recycling Campaign 2018” initiated by the Macau Environment Protection Bureau, where we collected used red packets from staff.

 

Once again in support of the Macau Environment Protection Bureau’s festive recycling program, we set up collection points for staff to drop off their empty mooncake boxes.

 

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 2018, 0.002% of waste, or 165 tons, was hazardous waste. 

Green Building

Opened in February 2018, MGM COTAI has become the largest property and the first mega-size complex project in Macau to achieve the China Green Building Design Label Three-Star Certification, which is the highest and most prestigious ranking available. We are also the only private sector organization in Macau to be awarded with this label. The label is the first informative national standard for green buildings in China, aiming to achieve maximum energy savings in the full life cycle of the buildings, create green buildings and achieve the objectives of saving energy, land, water and materials, protection of the environment and reducing pollution. The accolade recognized MGM China's commitment to designing a property with environmental sustainability at its heart. We incorporate green building techniques into our design, development and construction processes using industry-leading green building frameworks. 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.

By making these changes, we can reduce the amount of waste being sent to Macau's incinerators, improve the air quality, and protect the environment for our next generation.

Biodiversity

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. 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.

We are also bringing the wonders of nature to our visitors through the permanent Nature’s Art installation in the Spectacle at MGM COTAI. The vertical and horizontal greenery will comprise over 100,000 plants and over 2,000 plant species from Macau, Hong Kong and mainland China as well as from other world destinations. This display of exquisite biodiversity will also bring back to life several extinct and extremely rare plant species through the use of seed banks in Hong Kong and Europe.

Employee Engagement

We proactively engage our employees in our efforts to manage our environmental impacts.  In 2018, our environmental employee engagement program focused on periodical themed events, and ongoing education and communication.

CASE STUDY: Say Goodbye to Single-use Plastics

Single-use plastics negatively impact the environment on an alarming scale. Accordingly, we made an official announcement in September 2018 that we will stop the usage of single-use plastics at our restaurants. These include plastic straws, drinkware, take-out containers, cutleries, and more. We aim to replace them with environmentally friendly alternatives in the first quarter of 2019. We estimate that this initiative will see a yearly reduction of over 860,000 plastic straws and over 470,000 plastic take-out containers from the environment.

 

 

CASE STUDY: Green Transport

We responded to the call of the Macau Government for greener transport with our newest fleet of electric shuttle buses, which became operational in November 2018. To further support the low carbon development of Macau and help to improve the city’s air quality, we installed four BMWi and four Tesla charging stations in the parking area of MGM COTAI for guests to charge their electric vehicles – free of charge.

 

Community Outreach

We are passionate about sharing and promoting the green initiatives in our daily lives, by hosting events including:

  • Go Green Marketplace: In order to help our team members to Live Green, Eat Green and Shop Green, we held a Go Green Marketplace in March. We invited two local businesses, Concept H and StuffBOX, to a special marketplace where our staff could peruse a selection of healthy food and eco-friendly products. We also arranged a barter market for team members to bring pre-loved items their children have outgrown and exchange them for something useful.
  • Energy-Saving Week: In support of the Office for the Development of the Energy Sector’s (“GDSE”) Energy Saving Week 2018, we held a host of energy-saving activities during the period to help raise awareness for energy conservation. These include an Energy Saving Champion Competition across all departments, joining the “Lights Off” initiative and Casual Wear Day, as organized by the GDSE.

 

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 leased 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   The GHG emissions calculation for 2016 has been updated to reflect the correct emissions factor for the year, which was previously unavailable at the time of the 2016 report writing.

4  “Report on the State of the Environment of Macao”, 2015, DSPA

5    Data including MGM MACAU and MGM COTAI