Melco Resorts & Entertainment : Sustainability Report 2021

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SUSTAINABILITY REPORT 2021

ABOVE & BEYOND

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Contents

Quick access to sections

Our Strategy

CHAIRMAN & CEO'S STATEMENT .................................................................................................................................... 004

SUSTAINABILITY AT MELCO................................................................................................................................................ 006

PERFORMANCE HIGHLIGHTS...................................................................................................................................... 008

UNDERSTANDING WHAT MATTERS MOST.......................................................................................................... 010

ASSESSING MATERIALITY.............................................................................................................................................. 013

SUSTAINABILITY RISK MANAGEMENT.................................................................................................................... 014

EVOLVING RISKS AND OPPORTUNITIES............................................................................................................... 015

OUR RISK UNIVERSE ....................................................................................................................................................... 017

AWARDS, RECOGNITION AND CERTIFICATIONS............................................................................................ 018

Restoring our World

ENERGY‌& CLIMATE RESILIENCE ...................................................................................................................................... 024

MATERIAL‌USE & WASTE ...................................................................................................................................................... 032

Inspiring our Communities

ENGAGING‌OUR PEOPLE..................................................................................................................................................... 044

SAFETY, HEALTH‌& WELLBEING........................................................................................................................................ 050

RESPONSIBLE GAMING.......................................................................................................................................................... 054

COMMUNITY ENGAGEMENT & INVESTMENT............................................................................................................ 056

Sustaining our Supply Chain

ETHICAL & SUSTAINABLE SUPPLY CHAIN................................................................................................................... 064

Empowering our Business

ETHICS‌& INTEGRITY ............................................................................................................................................................. 076

PRIVACY & CYBERSECURITY............................................................................................................................................... 080

Appendices

ABOUT MELCO.......................................................................................................................................................................... 083

PERFORMANCE METRICS ..................................................................................................................................................... 084

GRI CONTENT INDEX ........................................................................................................................................................... 094

CONTACT DETAILS ................................................................................................................................................................. 110

--- Melco resorts sustainability report 2021

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About this Report

Introduction

Melco Resorts & Entertainment Limited's (MRE, Melco or the Company) fourth annual Sustainability Report presents an overview of our sustainability performance for the calendar year ended December 31st, 2021. This and our previous Sustainability Reports are available online.

Reporting Scope and Boundary

This report comprises all entities covered in our financial statements, including our properties in Macau, Manila and Cyprus, and our site in Japan. Our report presents performance and progress data in implementing our sustainability strategy and where possible information and updates on the development of our ongoing plans (refer to Forward-looking Statements below for details). Financial information is presented in United States Dollars (US$) unless otherwise stated.

Reporting Framework

This report has been prepared in accordance with the GRI Standards: Core option. The Global Reporting Initiative (GRI) is an independent, international organization that developed the first and most widely-adopted global standards for sustainability reporting.

The data and information detailed in this report have been compiled through industry research, peer benchmarking, internal data collection systems and extensive, multifaceted engagement with internal and external stakeholders. The results of these essential steps contribute to both the identification of the material environmental, social and governance (ESG) topics that are central to our business and the evolution of our "Above & Beyond" sustainability strategy. Recognizing the importance of global cooperation in addressing ESG challenges and opportunities, our strategy aligns with the United National Sustainable Development Goals (SDGs).

UN SDGs

We welcome your feedback on this report, our strategy and goals. Please email: [e-mail] with your comments.

Forward-looking Statements

This report contains certain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act of 1995), including statements regarding our financial condition, results of operations, businesses, plans, expectations, continuation or future execution of initiatives, programs, activities, policies or disclosures, strategies, goals, targets, intentions, commitments and other statements that are not historical in nature.

Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks, uncertainties and other factors beyond our control that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. These factors include, but are not limited to Melco Resorts & Entertainment's ability to successfully implement ESG initiatives under expected time frames and the Company's ability to achieve its announced ESG goals, targets and commitments.

Moreover, because we operate in a heavily regulated and evolving industry and operate across various geographies including Macau, a market with intense competition and where the Macau Legislative Assembly is currently considering a proposal to amend the key gaming legislation; the Philippines, a market that is expected to experience growth over the next several years; and Cyprus, a new market with significant growth potential, new risk factors may emerge from time to time. It is not possible for our management to predict all risk factors, nor can we assess the impact of these factors on our business or the extent to which any factor, or combination of factors, may cause actual results, performance or events to differ materially from those expressed or implied in any forward-looking statement. Additional factors are described in the Company's most recent Annual Report on Form 20-F under Item 3, "Key Information - D. Risk Factors" and subsequent filings with the U.S. Securities and Exchange Commission.

In some cases, forward-looking statements can be identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. All forward-looking statements contained in this Sustainability Report are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. The Company assumes no obligation to update such information.

OUR STRA TEGY

Inspiring our guests by showing them a sustainable future is a better future

Quick access to CONTENT

Chairman & CEO's Statement.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 004

Sustainability at Melco.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 006

Performance Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 008

Understanding What Matters Most. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 010

Assessing Materiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 013

Sustainability Risk Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 014

Evolving Risks and Opportunities.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 015

Our Risk Universe.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 017

Awards, Recognition and Certifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 018