Our Approach to Climate Change

At MGM Resorts, we strive to lead our industry in responding to climate change with bold action and clear advocacy for a clean energy future. Our approach, developed in collaboration with the Board and management, is informed by an understanding of climate science and based on a detailed climate impact, risk and opportunity assessment. Our approach is aligned with the main recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
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Climate Governance

Our governance of climate-related risks and opportunities is embedded into our overall corporate governance. As of 2020, climate-related risks are assessed as part of our formal enterprise risk management process. To manage these risks and opportunities, our board has well-defined oversight, and our management team helps to implement the Climate Action Plan, enabling progress towards our climate goals.

Board Oversight

Our Board of Directors exercises oversight over climate-related risks and opportunities through our board-level Corporate Social Responsibility & Sustainability (CSR&S) Committee. Rose McKinney James – a global expert in clean energy and MGM Board Director – chairs the CSR&S Committee, which governs our Climate Action Plan.

Management's Role

Our CEO and President Bill Hornbuckle oversees climate-related matters on behalf of management. Bill also acts as a liaison between the CSR&S Committee and senior management.

Two divisions collaborate to lead the implementation of our Climate Action Plan: Social Impact & Sustainability and MGM Resorts Design & Development (MRDD). Our Chief People, Inclusion & Sustainability Officer and President of Design & Development collaborate to champion progress toward interim and longer-term climate goals. They are supported by goal champions and an ESG Taskforce comprised of executives from Strategy, Investor Relations, Risk, Finance, Global Procurement, Human Resources and other functions.

Climate Strategy

As a framework for our climate strategic approach, MGM Resorts references the Corporate Climate Stewardship Guidelines for Best Practice Climate Action in the Paris Agreement Era. Developed by Carbon Disclosure Project (CDP), World Wildlife Fund (WWF) and The Gold Standard, this framework of four key elements informs our approach.

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Climate Risk Management

In 2021 and 2022, we engaged an expert independent third party to conduct a detailed climate risk and opportunity assessment for transition and physical risks. Our assessment considered low, moderate and high carbon price scenarios for policy risk. The high carbon price scenario is in line to limit climate change to 2°C by 2100. The scenarios used for our physical risk exposure include a High Climate Change Scenario (RCP 8.5), Moderate Climate Change Scenario (RCP 4.5), and a Low Climate Change Scenario (RCP 2.6).

Based on a moderate scenario, we assessed 25 of our resorts and entertainment venues for their exposure to climate-related hazards by 2050. We identified two properties with high overall risk exposure, 22 properties with moderate overall risk exposure and one with low overall risk exposure.

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Primary Climate Risks

Based on our independent assessment, as well as the policy risk which affects our company overall, our primary exposure at the property level is to wildfire, water stress and sea level rise related risks.

Policy Risk

The Task Force on Climate-Related Financial Disclosures finds increased pricing of GHG (greenhouse gas) emissions and increased operating costs, such as higher compliance costs, as examples of climate-related policy risk. Our industry-leading approach to renewable energy helps to mitigate policy risk over the medium and long term.

Wildfire

While our portfolio has low exposure to direct damage from wildfire, our Las Vegas resorts and some regional properties are still close to regions of high wildfire risk exacerbated by climate change. This can cause disruptions to travel and give rise to air pollution that may impact guest experience.

Water Stress

As a major operator of resorts, many of which are in the desert destination of Las Vegas, we recognize the criticality of water to our business. We know there is long term water stress in the Southwest United States where much of our business operates. Due to the Southern Nevada region's innovative water infrastructure planning (most of the water used indoors is recycled back to its source), the

region is well-positioned to adapt to potential future water supply constraints. However, we are still extremely focused on water conservation, with a special emphasis on consumptive water use.

Sea Level Rise

A small number of our properties are in areas that may be subject to sea level rise and extreme weather events that may interrupt our operations or the operations of critical suppliers. Damage may occur to these properties, reducing the number of customers who visit our facilities in such areas. Although we maintain both property and business interruption insurance coverage for certain extreme weather conditions, such coverage is subject to deductibles and limits on maximum benefits.

Climate Metrics & Targets

We have two sets of climate-related metrics, goals, and targets. Our primary set focuses on absolute scope 1 and 2 GHG emissions reduction and sourcing renewable electricity by 2030 (2019 baseline), and a secondary set covering intensity reduction for carbon, energy, water, and materials & waste by 2025 (2007 baseline). Both sets rely on underlying additional metrics that drive performance in these areas.

Primary Climate-related Metrics & Goals:

  • Reduce absolute Scope 1 and 2 carbon emissions by 50% by 2030 (2019 baseline, global)
  • Source 100% renewable electricity by 2030 (U.S.)
  • Source 80% renewable electricity by 2030 (global)

Secondary Climate-related Metrics & Goals (2007 baseline, global):

  • Reduce carbon emissions per square foot by 45% (2007 baseline, global)
  • Reduce energy per square foot by 25% (2007 baseline, global)
  • Reduce water per square foot by 30% (2007 baseline, global)
  • Reduce materials disposed per square foot by 60% (2007 baseline, global)

Find our climate-related targets, performance and progress in our Social Impact & Sustainability Metrics and Goals 2021 disclosure.

Examples of Climate Action in Practice

Our broader approach to climate metrics illustrates our understanding that climate action goes beyond energy alone, that many climate-related risks manifest as water-related impacts, and all materials have embodied carbon emissions. Multiple initiatives in each of these areas help deliver against a broader decarbonization agenda and help increase our resilience to climate risk. Three key examples include our 100 MW MGM Resorts Mega Solar Array which helps reduce scope 2 emissions; our turf removal program which helps reduce consumptive water use and mitigate our exposure to climate-exacerbated water stress; and our robust Materials & Waste program helps reduce disposal to landfill related scope 3 emissions.

Approach to Renewable Energy

MGM Resorts' Mega Solar Array is the hospitality industry's largest directly sourced renewable electricity project worldwide. This unique investment is integral as we aim to source 100% renewable electricity in the U.S. and 80% globally by 2030.

Approach to Water Conservation

Through a multi-year effort to identify and convert grass turf and other water intensive landscaping, MGM Resorts properties in Las Vegas now hove over 200,000 square feet of drought-tolerant landscaping.

Approach to Managing Materials

Food waste has a significant carbon footprint. Since 2008, we've diverted over 120,000 tons of food waste from landfills to pig farms or compost, and repurposed over 65,000 tons of brown or yellow grease.

Our Approach

Environmental, Social and Governance (ESG)

We operate with integrity and strategic focus.

Fostering Diversity, Equity and Inclusion

We are committed to an inclusive and diverse culture for our employees, guests, community partners and stakeholders.

Protecting the Planet

We work to ensure our operations are environmentally sustainable.

Investing in Our Communities

We are invested in growing and supporting strong communities.

More Information

Social Impact & Sustainability Reports

Each year we are proud to showcase these commitments by highlighting the work we do today and the goals we aim to achieve.

ESG Policies

We have a number of ESG-related policies in place to formalize and operationalize our efforts.

ESG Disclosures

In addition to our company’s self-selected metrics and goals, we also provide disclosures aligned to a number of prevailing third-party ESG frameworks.

Awards and Recognition

MGM Resorts International is honored when organizations recognize our Company’s efforts in diversity, philanthropy and environmental sustainability.