Recognizing supply chain management as a complex and multi-faceted area of program development, we aim to connect and organize separate work on supplier diversity and environmentally preferable purchasing with emerging work on supply chain human rights and total cost of ownership into one holistic sustainable supply chain program.

Our Approach to Supplier Diversity

MGM Resorts is an innovative leader in supplier diversity. Through our program, we identify, advocate for and connect certified, diverse-owned suppliers to opportunities within our supply chain. The programmatic elements within the Supply Diversity program are mentorship and diverse biddable spend.

Our Approach to Sustainable Procurement

Our sustainable procurement program is focused on environmentally preferable purchasing, human rights due diligence and micro supply chain and local sourcing.

• Environmentally Preferable Purchasing: We recognize that the materials we choose and products we buy drive much of our environmental impact. They also affect our ability to manage waste, as some materials are more durable, recyclable or reusable than others. Our concentrated buying power in some markets allows us to advance environmentally preferable purchasing.
• Human Rights Due Diligence: MGM Resorts engaged third-party experts to provide risk assessment support related to human rights vulnerabilities of workers and communities involved in or affected by the sourcing of products or commodities. Food and beverage products, operating supplies and equipment and facilities-related products are high priority issues for our human rights due diligence work. We also monitor specific activities in other product categories.
• Local Sourcing: MGM Resorts is a major buyer of goods and services, with a large proportion of our overall spend is concentrated in Las Vegas. As such, we have significant market power in many purchasing categories. We apply this power to advancing our commitment to invest in our communities, foster diversity and inclusion and protect the planet while delivering economic benefits to our stakeholders.

MGM Resorts led a supplier risk assessment in partnership with a third-party expert. Questionnaires were distributed to 200+ critical suppliers, determined by spend, to conduct a supply chain segmentation and understand supply chain risk. Questionnaires included performance data and qualitative information on policies, commitments and programs. Suppliers were screened on environmental, social and governance issues, including social and environmental compliance, recruitment, labor conditions, health and safety, human rights and hazardous waste, among others.

Current practices that intersect sustainable procurement include policy statements, the supplier diversity program and supplier risk assessment. Policies that address this intersection include the supplier code of conduct, global human rights policy, global environmental policy and global water policy.

Supplier Code of Conduct

The supplier code of conduct encourages suppliers to adhere to a set of standards related to ethical business practices, environmental compliance and the fair and respectful treatment of employees. A Suppler Code of Conduct Guide was developed to supplement the code. The guide references other ESG related policies, such as the MGM Resorts’ global human rights and environmental policies.

Cage-Free & Free-Range Egg & Chicken Policy

MGM Resorts is known for providing exceptional dining experiences, featuring quality products and unparalleled service. This focus on quality extends to our commitment to source sustainable food and beverage options to meet growing market and stakeholder demand. One of our early commitments in 2020 was a goal to source 100 percent of eggs (shell, liquid, and egg products) from cage-free sources throughout our global portfolio before 2030. In addition, we committed to sourcing chickens from suppliers certified by Global Animal Partnership.

Sustainability Policies

MGM Resorts has a set of enterprise sustainability policies that intersect procurement activities including the following:

• Global Human Rights Policy: We communicate and codify our commitment to identifying, preventing and mitigating adverse impacts related to human and labor rights through our business activities. The following language is specified in the policy related to suppliers: We are committed to operating with integrity and this extends to our supply chain. We expect our suppliers to provide fair and safe working conditions for all workers and to treat their employees with dignity and respect.
• Global Environmental Policy: Our environmental policy, published in 2019, includes a section on sustainable procurement and aligns with the United Nations Sustainable Development Goals. The specific policy language is as follows: We are committed to increasing environmentally preferable purchasing in priority categories, accelerating materials recycling, and further exploring the use of circular economy principles. In addition, we will embed environmental criteria into our Global Procurement Policy and engage suppliers on environmental matters.
• Global Water Policy: In 2022, we developed a global water policy to guide behavior and improve practices related to water stress. Training and acknowledgment of the policy was required for approximately 11,000 managers and supervisors in early 2023.

Our sustainable supply chain charter summarizes how procurement efforts align with our 2025 goals for protecting the planet and fostering diversity and inclusion. It also clarifies our planning for emerging objectives such as Scope 3 emissions reduction associated with purchased goods and services, reducing climate and water risks and assessing and mitigating human rights risks in our supply chain. Because understanding total spend is a foundation for effective measurement of progress on a sustainable supply chain, we work to gain a clear and consistent picture of what we buy and from whom, across regions and countries.

Our current commitments and targets for sustainable procurement at MGM Resorts are as follows: