In 2019 MGM Resorts established an ESG taskforce comprised of executives from strategy, investor relations, risk, finance, purchasing and other functions. The taskforce’s mandate was to understand the ESG landscape and strengthen our Company’s ESG disclosures. The taskforce focused on understanding how the Company performed on various ESG ranking platforms, including CDP, ISS and others and initiated a strategy to increase transparency and improve scores. Subsequently, the taskforce initiated a formal materiality assessment to obtain internal and external stakeholder input on priority ESG issues. The findings from the assessment, completed in Q1 2020 helped us refine and augment our strategy and triggered a significant increase in the scope and scale of metrics disclosed in our Social Impact & Sustainability Reports.
MGM Resorts International’s Vision is To be the World’s Premier Gaming Entertainment Company. We aim to be highly customer centric in our approach, and deliver globally leading gaming and experiences that captivate our audiences and “entertain the human race”. People and Planet form the foundation of this enterprise-wide strategy, underpinning the centrality of environmental and social sustainability to our company’s success.
ESG-related risks are assessed as part of MGM’s overall formal Enterprise Risk Management Process. This process, which is managed by MGM’s SVP of Internal Audit, includes a broad assessment of risks faced by MGM Resorts. The outcome of this process is a risk register which includes:
Climate Change and other ESG risks have been officially recorded in the Enterprise Risk Management Risk Register. The following summary statement is provided in the Risk Register that is reviewed and approved by the Audit Committee of the Board of Directors:
"Some of the Company's properties face increased physical risk associated with severe weather events exacerbated by climate change. This is especially true for properties in close proximity to rivers and oceans. Severe weather events related to climate change have already and are likely to continue increasing supply chain shocks and related price spikes. This is driven by potential impacts on the flow of goods, as well as production constraints of agricultural commodities triggered by drought, flood or fire."