Melco International Development Limited - Corporate Social Responsibility Report 2014

We believe that every child should have the same opportunities in life, whether they come from economically disadvantaged families or are facing challenges they cannot cope with on their own. In 2014, we provided a number of youth programmes that help young people develop into mature adults and contributing members of society.

SARDA – Coffee Life Youth Empowerment Life Skills Training Project

When young people find themselves unable to deal with the problems of opiate drug addiction, they usually lack the resources to find a more meaningful alternative in their lives. The Society for the Aid and Rehabilitation of Drug Abusers (SARDA) provides a residential living environment for these youths and an opportunity to rehabilitate themselves, both physiologically and socially. By learning coffee-making skills, they are empowered with new self-confidence and able to reintegrate into society. The program outcome is encouraging and the youths are widely recognized by the industry. Five trainees acquired Certificate of the City and Guilds International Barista program, and one of them is employed as barista after the completion of Trainee Internship Program in a well-known international coffee chain.

During the year, Melco continued to provide funding for the two-year Coffee Life – Youth Empowerment Life Skills Training Project at Au Tau Youth Centre.

SARDA website: www.sarda.org.hk

Playright - Hospital Play Program

Few experiences in a young child’s life can be as distressing as a stay in hospital. Through the Playright Hospital Play Program, young patients at hospitals in Hong Kong can take part in therapeutic play services that help them and their families deal with illness and medical treatments. The services offered prepare children psychologically, cope with pain and anxiety, and understand the medical procedures they are undergoing.

We again extended our support to this worthwhile programme for the child patients of Caritas Medical Centre, which benefited 2,231 hospitalised children.

Playright website: www.playright.org.hk

ORBIS International - Establish a Network of Pediatric Eye Care in Linyi, Shandong

In Linyi of Shandong province, we continued our support of the Paediatric Eye Care project under ORBIS, an international organization set up to fight global blindness, for the third consecutive year.

During 2014, we assisted the Lunan Eye Hospital and three county hospitals in screening 570,634 children, providing them with medical treatments and surgery. Through the programme, school staff and local healthcare professionals received training in eye-care and sight protection.

Orbis website: www.orbis.org

The Community Chest – Cycling Challenge

On March 9, 2014, we supported the Community Chest’s Cycling Challenge which raises money for member social welfare agencies to provide services for children and youth.

Melco was one of the sponsors of the event, and led by our Executive Director, six of our staff members took up the challenge themselves by taking part in the race. By the end of the day, Melco Team had won the 1st runner-up of the Corporate Team Time Trial Race awards, demonstrating their athletic prowess and generosity.

Community Chest website: www.commchest.org

Hong Kong Lutheran Social Service, LC-HKS, Sunshine Lutheran Centre - “Caring for our Kids” Rebuilding child - parent relationship for families with gambling problems and Prevention Project

The Hong Kong Lutheran Centre offers a child-parent relationship programme for families with gambling problems through its Caring for our Kids rebuilding project.

Melco’s supported this project that benefited 37 parents and 32 children in families with gambling problem with six volunteers from our staff.

We also sponsored a reading scheme for gambling prevention, by publishing 8,000 student diaries and 600 teaching aids in July 2014, which benefited 8,271 pupils and students in 310 kindergartens and primary schools.

Sunshine Lutheran Centre website: www.hklss.hk

The Child Development Centre – Daddy Daughter Ball 2014

Through our participation in the Daddy Daughter Ball of the Child Development Centre (“CDC”), we helped raise funds that go towards the CDC’s new centre in Wan Chai.

The Centre provides a wide range of therapeutic services for children with special educational needs in both English and Chinese. The Daddy Daughter Ball, which was held for the fifth year on June 1, 2014 attracted more than 450 daddies and daughters, raising money for children’s therapy services, the new service centre and the continuation of its services for another year.

Child Development Centre website: cdchk.org

Operation Santa Claus –
Christmas Party for Hong Kong Red Cross Margaret Trench School

Jointly organised by the South China Morning Post and Radio Television Hong Kong, Operation Santa Claus is an annual charity campaign supporting projects that help to make a positive change in the lives of disadvantaged people in Hong Kong and mainland China. These projects assist children and youth, the elderly, and people with physical and mental disabilities.

In 2014, we supported one of the beneficiaries of this programme, the Hong Kong Red Cross Margaret Trench School. Our volunteer team generously lent their support to assist in the organization of a Christmas Party for the school’s students and ensured all the children were able to take part in this festive occasion.

Operation Santa Claus website: osc.scmp.com

Hong Kong Red Cross Margaret Trench School website: www.mts.edu.hk

Resort hotels consume significant amounts of energy, water and other resources as well as generate substantial amounts of waste. Recognizing the need to mitigate our impacts on the environment, we monitor our use of resources, waste and the carbon we emit on an ongoing basis, and take appropriate remedial action wherever feasible.

Carbon Reduction Charter

Melco is a signatory to the Carbon Reduction Charter and a Green Partner of the Environmental Protection Department’s Carbon Audit Green Partner campaign. We are also a signatory member of the Copenhagen Communiqué.

As part of our climate change policy, we have set and communicated measurable and time-bound carbon reduction targets. Our goal is to reduce our total annual CO2 emissions from our Corporate Office by 2%–3%. In line with the recommendations of the WWF – Low-carbon Office Operation Programme (LOOP), we engage staff regularly on low carbon office measures and encourage them to switch off non-essential lights in the Corporate Office and minimise business travel. Additionally, we print all corporate stationery and publications, including brochures and publications such as this CSR report, on recyclable or FSC certified paper.

At the Corporate Office:

WWF – Low-carbon Office Operation Programme (LOOP)

As a signatory to the Carbon Reduction Charter, Melco has been making a concerted effort to reduce its carbon footprint. In order to further reduce greenhouse gas emissions at our head office, Melco participated in WWF’s Low-carbon Office Operation Programme (“LOOP”) in 2014 for the fourth consecutive year.

Data was collected through on-site observations and staff interviews on low carbon practices and analysed using a calculation tool provided on the WWF website (https://loop.wwf.org.hk/). The four areas of assessment included the following:

General
energy use

Air-conditioning,
refrigerators

Indirect emissions
from paper use

Transportation
and other areas

Improvements were registered in total carbon emissions (-13.56%) and average carbon emissions per staff (-2.06%). Our overall score was 77%, which was higher than 84.1% of participating companies and earned us a Gold Label. The rating was based on data collected using the LOOP methodology for a minimum of nine months. A third-party verifier made on-site visits and validated the data on August 25, 2014.

In addition to reducing carbon emissions through saving energy, we also encouraged recycling. Collection facilities were provided for recycling paper, mooncake containers, plastic bottles, ink cartridges and IT equipment. Collection points were also available for recycling paper and other stationery items in selected office areas, which were sent to qualified recycling services.

Energy Saving Charter on Indoor Temperature

In support of the Government’s efforts to combat climate change, we continued last year’s effort to save energy in our offices by maintaining an average indoor temperature between 24–26 degree Celsius.

Business Travel Carbon Emissions

In 2014, we successfully lowered our carbon emissions for overseas business travel by 11.5% compared with the year before, owing primarily to the increased use of video and voice conferencing rather than air travel. Carbon emissions due to local business travel, on the other hand, rose by 360.5%. Although local business travel contributes far less to our overall carbon footprint, we will encourage our staff to make greater use of public transport, rather than taxis, in order to reduce this source of carbon emissions.

The Hong Kong Awards for Environmental Excellence (HKAEE) – Wastewi$e Label

For the seventh consecutive year, we achieved the Class of Excellence in the Wastewi$e Label scheme for our Corporate Office. Our waste reduction objectives were met in three categories:

Goals Achieved:

However, in two areas — recycling of plastic bottles and waste paper — we did not achieve our goals. For 2015, we will continue to encourage recycling of these materials so that we can meet our objectives in all categories.

In our Operations:

Energy Efficient Systems

We manage our use of energy resources efficiently and wisely to the greatest extent possible. At City of Dreams, for example, we have the second largest Centralised Cooling System in the South China hospitality industry. It is at least 20-35% more energy-efficient than traditional air-conditioning systems.

In addition, City of Dreams has an advanced indoor air purification system that conserves energy by reducing the need for outdoor fresh air. The Building Management System is also highly advanced, monitoring indoor temperatures throughout the day and converting the heat generated from the air-conditioning system to heat the water used for taps and showers.

As LED lights offer significant energy savings, we have installed LED lamps extensively at City of Dreams, both on the façade and for interior illumination. Specifically, we have selected T5 tubes, the most energy efficient option in the market, for the Heart of the House and control outdoor light fixtures by photo sensors.

Conserving Water

One of the most popular attractions at City of Dreams, the House of Dancing Water, has been fitted with an advanced filtration system that uses and reuses pool water indefinitely.

All of our properties make use of many other state-of-the-art facilities for conserving water, including automatic sensors in all faucets and a rainwater recovery system to store rainwater for irrigation.

Grey water system at Altira Macau recycles treated guestroom sink, shower and bath water as flush water, successfully saving more than half of the freshwater normally consumed for flushing.

As significant amounts of water are used to clean guestrooms and public areas, we encourage employees to reduce water use as far as possible by making use of alternative cleaning methods.

Energy Efficiency

Second largest Centralised Cooling System in the South China hospitality industry, at least 20-35% more energy-efficient than traditional air-conditioning
State-of-the-art indoor air purification system conserves energy by reducing the need for outdoor fresh air
Building Management System monitors air-con temperature 24/7
Heat converted from air-conditioning to heat tap and shower water
LED lights for façade are 80% more energy-efficient compared to traditional halogen lamps
LED lights for interior are 70% more energy-efficient compared to conventional lighting
T5 tubes, the most energy efficient option in the market, in the Heart of House
Outdoor light fixtures controlled by outdoor photo sensors and time schedule
Motion sensors turn off lights at Heart of House when the area is not occupied
Air Handling Units equipped with Enthalpy Wheel for energy exchange between exhaust air and intake air
CO & CO2-controlled ventilation in car parks
Motion-activated escalator operations
Water-cooled high-efficiency kitchen freezer reduces energy consumption
Automatic sensors in all faucets within the properties
Water feature used as water reserve for fire-fighting
Rainwater Recovery System stores rainwater for irrigation
Employee education to reduce water use when cleaning guestrooms and public areas:

Basin cleaning with detergent and dry cloth to reduce water use
Use mop and bucket to clean public area instead of using high pressure jet
Use machine to clean and dry kitchen floor instead of using high pressure jet
Use buckets instead of a hose to water plants

Other Conservation Measures

Property Services Department and Housekeeping Department uses a paperless work order system to reduce paper consumption
Encourage colleagues to use staircase instead of elevator
Compress all carton boxes collected for recycling
Since 2013, two biodegradable food waste decomposers have been installed at City of Dreams Macau to reduce food waste via the use of microorganisms. The food decomposers handle 200kg of food waste daily, which is equivalent to 73 tons a year, to achieve a 96% reduction of CO2 emissions per 10 tons of food waste. Residuals can be recycled into useful organic fertiliser after six months

Recognition & Achievement

Altira Macau received the “Hotel Group C Merit Award” at the Energy Saving Contest 2012 & 2014 by GDSE of Macau SAR and Macau CEM and obtained ISO14001:2004 Certification accredited by SGS Hong Kong
Crown Towers (Gold Medal), Hard Rock Hotel (Gold Medal) together with Grand Hyatt Macau (Silver Medal) earned Macau Green Hotel Awards 2011-2014; the hotels were also accredited with ISO14001:2004 Certification by SGS Hong Kong
City of Dreams Macau earned the Indoor Environmental Quality Certificate as accredited by SGS Hong Kong
City of Dreams Macau won the “Energy-saving Concept Award” and “Excellence Award” in the Hotel Group C category at the Macau Energy Saving Contest 2013
First runner-up of the distinctive MCE exhibition booth in the Green Booth Awards in the 2014 Macao International Environmental Co-operation Forum and Exhibition (MIECF)
City of Dreams Macau, the first integrated resort in Macau awarded with ISO 14064 Greenhouse Gas (GHG) Emissions Inventories and Verification accredited by SGS Hong Kong Limited
One of the Excellence Award winners in the Environmental Performance category of the Business Awards of Macau 2014

In The Community:

Green Monday

The Green Monday social enterprise group promotes green and healthy living by encouraging vegetarianism and food rescue initiatives. Corporations, restaurants, schools, and the general public are all invited to join in the effort of reducing their carbon footprint through sustainable consumption.

At Melco, we encourage our staff members to adopt a green lifestyle and therefore contribute to environmental conservation. We do this by hosting a healthy meat-free lunch with a talk by Green Monday’s nutritionist at the Melco Corporate Office.

Green Monday website: www.greenmonday.org.hk

Playright – Forest School and Environmental Play

In a densely populated urban environment such as Hong Kong’s, reconnecting children with green spaces such as country parks goes a long way towards enhancing their play experiences.

During the year, Playright organised 3 family trips, 6 play days and 56 forest school sessions at Ma On Shan Park, Yuen Long Park and Po Hong Park. Feedback from participants and their parents was very positive.

A total 847 children from age 3 to 11 as well as 100 families took part in the Forest School programme during the first six months of 2014.

Playright website: www.playright.org.hk

Hong Kong Green Council – Hong Kong Green Day and Green School Programme

The Green Council, a non-profit, non-partisan environmental association in Hong Kong since 2000, aims to transform Hong Kong into a world-class green city. As part of its mission, they encourage environmental protection and responsibility in the industrial and commercial sectors as well as among the general public.

The Green School programme aims to increase public awareness and interest regarding environmental responsibility and protection. To help transform Hong Kong into a greener city, it offers an array of educational activities on different environmental topics and outreach programmes to school.

In 2014, we helped to sponsor this programme for a period of one year.

Green Council website: www.greencouncil.org

WWF – Walk for Nature

Melco once again took part in WWF’s Walk For Nature, an annual fundraising event that takes place at Hong Kong’s renowned Mai Po Nature Reserve. Members of our staff raised sponsorship money for the walk then set out on the route around the Reserve.

A total of 23 Melco staff took part in this meaningful event in 2014, which helps protect the many species of flora and fauna found at Mai Po.

Walk for Nature website: www.wwf.org.hk/en/getinvolved/walkfornature/

WWF – HK Big Bird Race 2014

Another fundraising event by WWF-Hong Kong, the Big Bird Race, has been held every year since its establishment in 1984.

Funds raised during the event go towards the conservation and management of the Mai Po Nature Reserve. Our financial support of the race helps raise awareness of wetland conservation in the region and understanding of the negative impact of rapid economic development on migratory birds.

Big Bird Race website: www.wwf.org.hk/en/getinvolved/hkbbr/

WWF – Earth Hour 2014

Since its launch in 2009, Earth Hour has been promoting sustainable living around the world. In 2014, 2.8 million people in Hong Kong and more than 3,900 companies — including Melco — and buildings took part in the “lights off” event on March 29, 2014 that symbolises the need for conserving energy and reducing our ecological footprint.

This was the sixth consecutive year that we took part in this event as an Associate Sponsor. From 8:30pm to 9:30pm on the March 29, 2014, we switched off the lights at our corporate offices The Centrium, as well as the EGT offices in Shatin and the decorative lighting on Jumbo Kingdom’s façade.

Earth Hour website: earthhour.wwf.org.hk

Green Council – International Coastal Cleanup

The amount of rubbish that can be found on Hong Kong’s beaches is not only visually repellent but also a source of serious pollution that threatens the wildlife on our shorelines and in our waterways.

For the third consecutive year, Melco sponsored this event organised by the Green Council and encouraged our corporate volunteer team to join in the effort to remove trash and debris from Stanley Main Beach on 1 November 2014.

International Coastal Cleanup website: www.greencouncil.org/eng/community/icc.asp

Caritas Computer Workshop – Computer Recycling Programme

Many of us think carefully before buying a new electronic gadget but seldom give thought to the pollution problems that arise when we later dispose of them.

At Melco, we saw this initiative by Caritas as a good opportunity to reduce our carbon footprint and minimise the e-waste we generate by taking part in this organization’s computer refurbishment project. During the year, we donated a total of 9 computers, 1 laptop, 4 printers, 12 LCD monitors, 2 computer mice and 4 keyboards for the underprivileged.

Caritas Computer Workshop website: www.ccw.org.hk

Company Code
In 2005, the Group adopted its Code on Corporate Governance (“Company Code”). The Code not only formalises the Group’s existing corporate governance principles and practices, but also serves to assimilate practices with benchmarks prescribed by the Hong Kong Stock Exchange, ultimately ensuring that the Group runs a highly transparent operation and is accountable to its shareholders.

Melco was a founding signatory of the Hong Kong Corporate Governance Charter launched by The Chamber of Hong Kong Listed Companies. By adopting the Charter, we are widely acknowledged for following a high standard of corporate governance in line with international best practices.

Governance and Organization
Today, under the leadership of Chairman and CEO Mr Lawrence Ho, Melco has found new energy and direction as a leading company in Asia’s leisure and entertainment sector and regards CSR as a core value of the Group. He is supported by six directors on the Board. A detailed breakdown of the composition of our governance bodies can be found in the Corporate Governance Report section of 2014 Annual Report available on our corporate website.

Melco is supervised by eight board committees, namely, the Executive Committee, Audit Committee, Nomination Committee, Remuneration Committee, Corporate Governance Committee, Finance Committee, Regulatory Compliance Committee and Corporate Social Responsibility Committee. The number of committees on our board is five more than that required and recommended by the Code of Corporate Governance Practices issued by the Hong Kong Stock Exchange.

The Nomination Committee regularly reviews the structure, size and composition (including the skills, knowledge and experience) of the Board to identify individuals suitably qualified to become Board members and make recommendations to the Board on the selection of individuals nominated for directorship.

To avoid conflicts of interest, company policy and procedures are in place according to the code of corporate governance. The company’s Code of Business Conduct & Ethics is introduced to all new staff members when they join the company. The precautionary approach has been adopted, which authorises our Audit Committee to investigate any activities within its terms of reference.

Organizational Structure of Melco International Development

Melco believes in the fair treatment of all current and potential employees. Our recruitment and employment practices comply with local government legislations and regulations wherever we do business. In particular, we comply with the following human rights related legislation and regulations:

Sex Discrimination Ordinance
Disability Discrimination Ordinance
Family Status Discrimination Ordinance
Race Discrimination Ordinance

Applicants for employment are considered regardless of their race, colour, religion, sex, marital status, age, national origin, and other considerations that are deemed inappropriate by local labor laws.

Selection criteria are based on job and competency requirements, which may include work experience, education and training, special professional knowledge and abilities, other job related factors and potential for development.

Available positions within the company will be filled, whenever possible, with qualified internal candidates prior to recruiting from external sources.

Staff Age and Gender Distribution

Notes:
1. All are full-time and permanent staff of Melco Corporate Office in Hong Kong.
2. The age group banding has been amended from last year’s Report in order to protect staff confidentiality.

Although we have achieved many of our CSR objectives, we recognise that more still needs to be done. In 2015, we will deliver additional programmes for the development of our youth, staff and the disadvantaged; we will also take further action to minimise the environmental impacts of our operations both in Hong Kong and in Macau. What’s more, in order to align our CSR programmes with the needs of our stakeholders we will broaden our engagement with the community and stakeholder groups.

We intend to improve our CSR performance and operational sustainability by:

Continuing stakeholder engagement exercises to formulate long-term CSR strategies relevant to our business
Engaging external and internal stakeholders to identify further energy reduction opportunities
Creating synergies among our business units in order to improve our CSR performance

VERIFICATION STATEMENT
Scope and Objective
Hong Kong Quality Assurance Agency (“HKQAA”) has been commissioned by Melco International Development Limited (“Melco”) to conduct an independent verification of its Corporate Social Responsibility (“CSR”) Report 2014 (“the Report”). The Report states Melco’s performance and efforts towards sustainable development for the period from 1st January 2014 to 31st December 2014. Since Melco participated in the Low Carbon Operation Programme (“LOOP”) organized by WWF, the environmental performance data is reported from 1st June 2013 to 31st May 2014 which is in line with the timeframe of LOOP.

The aim of this verification was to provide a reasonable assurance on the completeness and accuracy of the information stated in the Report. The Report is prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.1 (G3.1) at GRI Application Level B+, also referencing the Environmental, Social and Governance Reporting Guide (ESG Reporting Guide) issued by the Hong Kong Stock Exchange.

Methodology
The process used in this verification was based on current best practices such as:

International Standard on Assurance Engagement 3000 (ISAE 3000) – “Assurance Engagement Other Than Audits or Reviews of Historical Financial Information” issued by the International Auditing and Assurance Standards Board
GRI G3.1
ESG Reporting Guide

The verification process included reviewing of relevant documentation, interviewing responsible personnel and verifying the supporting evidence of the selected samples of data and information presented in the Report. Other references such as Annual Report and publications from external sources were cross examined.

Conclusion
It is the opinion of the verification team that the Report fulfills the B+ Application Level of the GRI G3.1 Guidelines.

The Report provides a structured, balanced and consistent representation of Melco’s CSR performance of 2014. Melco has been continuously evolving its stakeholder engagement process through different effective means such as the introduction of an on-line staff survey in 2014. A wider stakeholder group had been involved in the past year and feedbacks were collected for the development of this report in which material issues are addressed transparently. The Report demonstrates Melco’s accountability and commitments towards integrating CSR in its operations based on its guiding CSR core pillars. The contents of the Report reflect the accomplishment of the internal and external CSR initiatives which brings along great contribution to a sustainable society.

As a result of the verification process, the verification team confirms that the information contained in the Report is accurate and reliable. It is a fair and honest disclosure in all material aspects of Melco’s CSR initiatives, targets, progress and performance.

Signed on behalf of Hong Kong Quality Assurance Agency

Connie Sham
Head of Audit
February 2015

External CSR Initiatives

NGO	Project	No. of Beneficiary in 2014
The Community Chest Hong Kong	·BOCHK Cycling Challenge ·The Chest annual TV Show – Drum Performance with the Youths ·Wine for Millions 2014	(Children & Youth Services)
The Society for the Aid and Rehabilitation of Drug Abusers	·Coffee Life – Youth Empowerment Life Skills Training Project <since Jul 2012 >	1,978 youth persons and family members
ORBIS International	·Establish a Network of Pediatric Eye Care in Linyi, Shandong	570,634 children screened, medically treated, received surgery and education about eye-care and school/ local health staff trained in sight protection
The Child Development Centre	·Daddy-Daughter Ball 2014 Sponsorship	471 Participants (Children Therapy Service)
Christian Action	·Education Grant Programme for Students at Huangnan Children’s Home, Qinghai China <since Sept 2013 > ·Inspiring Macau Trip - City of Dreams Experience Tour	36 students & 104 elderly 10 students and 2 HUNCH staff
Hong Kong Lutheran Centre	·“Caring for our Kids” Rebuilding child-parent relationship for families with gambling problems and Prevention Project	75 parents and children, 8,271 pupils and 310 schools
South China Morning Post and Radio Television Hong Kong	·Operation Santa Claus 2014 sponsorship and Christmas Party for Hong Kong Red Cross Margaret Trench School	20 children and youths 150 students and 50 parents of Hong Kong Red Cross Margret Trench School
Playright Children’s Play Association	·Hospital Play Service for Child Patients of Caritas Medical Centre < since Jun 2014> ·Gold Sponsorship, Happy Bear Hospital 2014 ·Environmental Play Project <since Apr 2012 >	2,231 hospitalised children 2,200 hospitalised children 6,375 children, families and professionals
Hong Kong Green Council	·Hong Kong Green Day 2014 – Green School Program < since Apr 2014> ·International Coastal Cleanup 2014 ·Hong Kong Green Awards 2014 Presentation Dinner Gala Sponsorship	31,800 students (Beach Cleanup Service) N/A
Hong Kong Awards for Environmental Excellence	·Wastewi$e Label	(Environmental Protection)
WWF-HK	·Earth Hour 2014 – 6th consecutive year of participation ·Big Bird Race 2014 ·Walk for Nature – Charity Walk ·Gold Award, LOOP Labelling Scheme 2013/14	(Environmental Protection) 23 participants
Hong Kong Climate Change Forum	·3rd International Conference on Climate Change Sponsorship	(Environmental Protection) No. of participants: 44 students, 27 NGOs and 70 government representatives
Caritas Computer Workshop	·Computer Recycling Programme <9 computer, 1 laptop, 4 printers, 12 LCD Monitor, 2 mouse and 4 keyboard>	N/A
Food Angel, Bo Charity Foundation	·Mooncake donation	59 pieces

Internal CSR Initiatives

Company	Project	No. of Beneficiary in 2014
Melco Group and Melco Crown Entertainment	·Green office promotion: regular ·Green Messages on newsletter, Earth Hour ·Festival donation ·Green Lifestyle: Green Talk and Green Monday Luncheon ·Melco CSR Wish Fund ·Melco Volunteer Incentive Scheme	6 mooncake metal boxes are recycled No. of participants: 27 staff Donation: HKD 14,000 No. of participants: 12 persons Total no. of volunteer hours: 246 (116 by staff, 130 by friends of staff)

2014 Awards and Recongintions

Awarded to	Award Name	Organiser / Judge Panel
Melco International Development	Constituent member of Hang Seng Corporate Sustainability Benchmark Index Series (since 2013)	Hang Seng Indexes Company Limited
Melco International Development	Gold Label, Low-carbon Office Operation Programme	WWF Hong Kong
Melco International Development	Merit Awards, 5th Hong Kong Corporate Citizenship Awards	Hong Kong Productivity Council
Melco International Development	Class of Excellence in Wastewise Label (since 2009)	Hong Kong Awards for Environmental Excellence
Melco International Development	President’s Award (since 2006)	The Community Chest of Hong Kong
Melco International Development	10 Years Plus Caring Company (effective on Mar 1, 2015)	Hong Kong Council of Social Service
Melco International Development	9th Consecutive Year of Corporate Governance Asia Annual Recognition Award (since 2006) : Icon of Corporate Governance 2014; Best CSR 2014	Corporate Governance Asia Magazine
Melco International Development	Gold Award, Interactive Annual Report - Corporate Social Responsibility Report	International ARC Awards
Melco Crown Entertainment	Best Environmental Responsibility	Asian Excellence Awards by Corporate Governance Asia Magazine
Melco Crown Entertainment	Caridade Social Award 2014	Macau Association of Chinese Young Entrepreneurs and Youth Committee of the Macao Chamber of Commerce
Melco Crown Entertainment	Environmental Performance Outstanding Award	Business Awards of Macau 2014
Melco Crown Entertainment	Outstanding Company on Corporate Governance	Corporate Governance Asia Magazine
Melco Crown Entertainment	ISO 14001 Environmental Management Certification (since 2012)	British Standards Institution
City of Dreams	Energy Saving Concept Award	Energy Saving Contest organised by the Office for Development of the Energy (GDSE) and the Companhia de Electricidade de Macau (CEM)

GRI and HKEx ESG Content Index

GRI Indicator	HKEx ESG KPIs	Information Description	Page No. of Printed Report/Cross-Reference
1.1		Statement from our Group Chairman and Chief Executive Officer	6: Message from Chairman & CEO
1.2		Description of key impacts, risks and opportunities	6: Message from Chairman & CEO 10: Managing Our Impacts
2.1		Name of the organization	Inside front cover
2.2		Primary brands, products, and/ or services	9: Corporate Structure and Business Development
2.3		Operational structure	30: Organizational Structure of Melco International Development
2.4		Location of offices	Inside front cover
2.5		Number of countries where the organization operates	9: Corporate Structure and Business Development
2.6		Ownership and legal form	9: About Melco + Corporate Profile
2.7		Markets served	9: Corporate Structure and Business Development + Core Business
2.8		Scale of organization	9: Corporate Structure and Business Development 32: Staff Age and Gender Distribution (Partially Reported) 40: Commentary Table (Partially reported on quantity of goods and services provided)
2.9		Significant changes during the reporting period regarding size, structure, or ownership	+ Chairman & CEO’s Statement Significant Events and Developments
2.10		Awards received	36: 2014 Awards and Recognitions
3.1		Reporting period	8: Scope of the Report
3.2		Date of most recent previous report	8: Scope of the Report
3.3		Reporting cycle	8: Scope of the Report
3.4		Contact point	40: Enquiry
3.5		Process for defining report content	15: Materiality Analysis
3.6		Boundary of the report	8: Scope of the Report
3.7		Specific limitations on the scope or boundary of the report	8: Scope of the Report
3.8		Basis for reporting on joint ventures, subsidiaries etc.	8: Scope of the Report
3.9		Data measurement techniques and the bases of calculations	8: Scope of the Report 23: WWF – Low-carbon Office Operation Programme (LOOP)
3.10		Re-statements	40: Commentary Table
3.11		Significant changes from previous reports	8: Scope of the Report
3.12		Table identifying the location of the Standard Disclosures	36 – 39: GRI and HKEx ESG Content Index
3.13		Policy and current practice with regard to seeking external assurance for the report	34: Report Verification
4.1		Governance structure	30: Governance and Organization + Corporate Governance Report
4.2		Indicate whether the Chair of the highest governance body is also an executive officer	7: CSR Committee 30: Governance and Organization + Corporate Governance Report
4.3		For an organization with a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members	30: Governance and Organization + Corporate Governance Report
4.4		Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body	13: Our CSR Strategy + Investor Relations Melco Shareholders Communication Policy: http://www.melco-group.com/doc/governance/Shareholders-Communication-Policy.pdf
4.5		Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance (including social and environmental performance)	+ Human Resources Remuneration Policy Terms of Reference of the Remuneration Committee: http://www.melco-group.com/doc/governance/eMelco_RemunerationCommittee.pdf]
4.6		Processes in place for the highest governance body to ensure conflicts of interest are avoided	30: Governance and Organization + Corporate Governance Practices Code on Corporate Governance: http://www.melco-group.com/doc/governance/CodeonCorporateGovernance.pdf
4.7		Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity	30: Governance and Organization + Nomination Committee Terms of Reference of the Nomination Committee: http://www.melco-group.com/doc/governance/eMelco_NominationCommittee.pdf Code on Corporate Governance: http://www.melco-group.com/doc/governance/CodeonCorporateGovernance.pdf
4.8		Statement of mission and values	13: Our CSR Strategy + Entertaining Possibilities Achieving Growth
4.9		Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance	7: CSR Committee + Delegation by the Board
4.10		Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance	30: Governance and Organization (Partially Reported) Delegation by the Board Terms of Reference of the Corporate Social Responsibility Committee: http://www.melco-group.com/doc/governance/Melco_Terms_of_Reference_of_CSR%20Committee.pdf
4.11	GD-C3 KPI C3.2	Explanation of whether and how the precautionary approach or principle is addressed	30: Governance and Organization + Internal Controls; Terms of Reference of the Audit Committee: http://www.melco-group.com/doc/governance/eMelco_AuditCommittee.pdf
4.12		Charters and principles to which Melco subscribes	Inside front cover: Logos 9: About Melco 22: Carbon Reduction Charter 24: Energy Saving Charter on Indoor Temperature
4.13		Memberships in associations	Inside front cover
4.14		Stakeholder Groups	14: Stakeholder Engagement
4.15		Basis for identification of stakeholders	6: Message from Chairman & CEO 8: Scope of the Report 10: Managing Our Impacts 14: Stakeholder Engagement
4.16		Approaches to Stakeholder Engagement	10: Managing Our Impacts (Partially Reported) 14: Stakeholder Engagement
4.17		Concerns Raised through Stakeholder Engagement	10: Managing Our Impacts
DMA EC		Disclosure on Management Approach (Economic Performance)	33: Our CSR Journey Continues + Chairman & CEO’s Statement Management Discussion and Analysis
EC1	GD-D1 KPI D1.2	Direct Economic Value Generated and Distributed	12: Community Engagement 15: Social Responsibility 16-19: Youth Development 20: Education 33: Our CSR Journey Continues 35: Internal CSR Initiatives 40: Commentary Table
EC3	GD-A1	Coverage of the organization’s defined benefit plan obligations	12: Staff Engagement 32: Equal Opportunity Employer 33: Our CSR Journey Continues 40: Commentary Table + Retirement Benefit Scheme
EC4		Significant financial assistance received from the government	40: Commentary Table
DMA EN	GD-B1 GD-B2 GD-B3	Disclosure on Management Approach (Environmental)	12: Impacts on the Environment 13: Our CSR Strategy 22: Carbon Reduction Charter 23: WWF – Low-carbon Office Operation Programme (LOOP) 24: The Hong Kong Awards for Environmental Excellence (HKAEE) – Wastewi$e Label 25: Energy Efficient Systems 25: Conserving Water 33: Our CSR Journey Continues + Environment
EN1	GD-B1 KPI B3.1	Materials used by weight, value or volume	22: Carbon Reduction Charter 23: WWF – Low-carbon Office Operation Programme (LOOP) 24: The Hong Kong Awards for Environmental Excellence (HKAEE) – Wastewi$e Label
EN4	GD-B2 KPI B2.1	In-direct energy consumption by primary energy source	23: WWF – Low-carbon Office Operation Programme (LOOP) 24: Energy Saving Charter on Indoor Temperature 25: Energy Efficient Systems
EN5	GD-B2 KPI B2.3	Energy saved due to conservation and efficiency improvements	23: WWF – Low-carbon Office Operation Programme (LOOP) 24: Energy Saving Charter on Indoor Temperature 25: Energy Efficient Systems 26: Energy Efficiency (Partially Reported)
EN8	GD-B2 KPI B2.2	Total water withdrawal by source	23: WWF – Low-carbon Office Operation Programme (LOOP) 25: Conserving Water 40: Commentary Table
EN10	GD-B2 KPI B2.4 B2.3	Percentage and total volume of water recycled and reused	25: Conserving Water 26: Energy Efficiency
EN16	GD-B1 KPI B1.1 KPI B1.2	Total direct and indirect greenhouse gas emission by weight	22: Carbon Reduction Charter 23: WWF – Low-carbon Office Operation Programme (LOOP) 24: Business Travel Carbon Emissions
EN26	GD-B2 KPI B2.3	Initiatives to enhance efficiency and mitigate environmental impacts	23: WWF – Low-carbon Office Operation Programme (LOOP) 24: Business Travel Carbon Emissions 24: The Hong Kong Awards for Environmental Excellence (HKAEE) – Wastewi$e Label 25: Energy Efficient Systems 25: Conserving Water 26: Energy Efficiency 26: Other Conservation Measures
EN28	GD-B3	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations	40: Commentary Table
EN29	GD-B3 KPI B3.1	Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce	24: Business Travel Carbon Emissions
DMA LA	GD-A1	Labor Practices and Decent Work Disclosure on Management Approach	12: Staff Engagement 31: Staff Training and Development 32: Equal Opportunity Employer 32: Staff Age and Gender Distribution 33: Our CSR Journey Continues + Human Resources
LA1	GD-A1 KPI A1.1	Total workforce by employment type, employment contract, and region, broken down by gender	32: Equal Opportunity Employer 32: Staff Age and Gender Distribution
LA2	GD-A1 KPI A1.2	Total number and rate of new employee hires and employee turnover by age group, gender, and region	32: Equal Opportunity Employer 32: Staff Age and Gender Distribution 40: Commentary Table
LA3	GD-A1	Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation	40: Commentary Table
LA4		Percentage of employees covered by collective bargaining agreements	40: Commentary Table
LA8	GD-A2 KPI A2.3	Education, training, counselling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases	21: Responsible Gaming 31: Staff Training and Development 33: Our CSR Journey Continues
LA9		Health and safety topics covered in formal agreements with trade unions	40: Commentary Table
LA10	GD-A3 KPI A3.2	Average hours of training per year per employees, by gender, and by employee category	32: Staff Age and Gender Distribution (Partially reported) 40: Commentary Table
LA11	GD-A3 KPI A3.1	Programmes for skills management and lifelong learning	31: Staff Training and Development
LA12	GD-A1	Percentage of employees receiving regular performance and career development reviews, by gender	31: Staff Training and Development 40: Commentary Table
LA13		Composition of governance bodies and breakdown of employees according to gender, age group, minority group membership and other indicators of diversity	30: Governance and Organization (Partially Reported) 32: Staff Age and Gender Distribution (Partially Reported) + Corporate Governance Report Composition of the Board
DMA HR	GD-A1	Disclosure on Management Approach (Human Resources)	32: Equal Opportunity Employer
HR4	GD-A1	Total number of incidents of discrimination and corrective actions taken	32: Equal Opportunity Employer 40: Commentary Table 11: Impacts on our Organization 12: Community Engagement 15: Social Responsibility 16-19: Youth Development 20: Education 33: Our CSR Journey Continues
HR11		Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms
DMA SO	GD-D1	Disclosure on Management Approach (Society)
SO1	GD-D1	Percentage of operations with implemented local community engagement, impact assessments, and development programme	35: External CSR Initiatives
SO3	GD-C3 KPI C3.1 KPI C3.2	Percentage of employees trained in organization’s anti-corruption policies and procedures	40: Commentary Table
SO8	GD-D1	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations	40: Commentary Table
SO9	GD-D1	Operations with significant potential or actual negative impacts on local communities	12: Impacts on our Stakeholders - Responsible Gaming 21: Responsible Gaming
SO10	GD-D1	Prevention and mitigation measures in operations with significant potential or actual negative impacts on local communities
DMA PR	GD-C2	Disclosure on Management Approach (Product Responsibility)	40: Commentary Table Melco Shareholders Communication Policy: http://www.melco-group.com/doc/governance/Shareholders-Communication-Policy.pdf
PR7	GD-C2 KPI C2.2	Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotions, and sponsorships
PR8	GD-C2 KPI C2.5	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
PR9	GD-C2	Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

+ Refer to 2014 Annual Report

Commentary Table

GRI Indicator	HKEx ESG KPIs	Description	Comments
2.8		Scale of the reporting organization	For the financial performance of Melco, please refer to Melco International Development Limited’s Annual Report 2014 (http://www.melco-group.com/eng/index.html): - Financial Highlights - Distributable Reserves of the Company - Major Customers and Suppliers - Report of the Directors, Donations - Consolidated Statement of Profit or Loss and Other Comprehensive Income - Segment Information - Notes to the Consolidated Financial Statements - Five Years Financial Summary Melco International Development Limited actually acts as an investment holding company. As a holding company, they produce neither goods nor services. As described in the CSR Report, this Report does not disclose data from its associates and subsidiaries as well.
EC1	GD-D1 KPI D1.2	Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments
3.10		Explanation of the effect of any re-statements of information provided in earlier reports	None
EC3	GD-A1	Coverage of the organization’s defined benefit plan obligations	Under the Hong Kong Mandatory Provident Fund Schemes Ordinance, Melco has to participate in a master trust Mandatory Provident Fund Scheme (“MPF Scheme”). The MPF Scheme is a defined contribution retirement scheme funded by payments from employees and by the participating companies. All regular employees of Melco are required to join the scheme.
EC4		Significant financial assistance received from the government	Melco has not received any financial assistance from the Government during the reporting period.
EN8	GD-B2 KPI B2.2	Total water withdrawal by source	23: WWF – Low-carbon Office Operation Programme (LOOP) Total water consumption from municipal water supplies: 551m3 (recorded from 01/06/2013 – 31/05/2014)
EN28	GD-B3	Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations	There were no significant fines and non-monetary sanctions for noncompliance with environmental laws and regulations during the reporting period.
LA2	GD-A1 KPI A1.2	Total number and rate of new employee hires and employee turnover by age group, gender, and region	32: Staff Age and Gender Distribution 18.605% of new employee: 2 males and 6 females aged 40 or below. 27.907% of staff turnover: 3 males and 8 females aged 40 or below; 1 female aged over 40
LA3	GD-A1	Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant locations of operation	Medical and Life Insurance Scheme; despite Annual and Sick leave, we also provide Compassionate leave, Marriage leave and Jury Service Leave
LA4		Percentage of employees covered by collective bargaining agreements	No formal collective bargaining agreement is in place, as not required under Hong Kong law. However, channels for communicating grievances are in place.
LA9		Health and safety topics covered in formal agreements with trade unions	Melco does not have any formal agreements with trade unions.
LA10	GD-A3 KPI A3.2	Average hours of training per year per employees, by gender, and by employee category	During the year Melco only captured training data in sessions. We will expand the scope and level of disclosure to no. of staff training hours for future report.
LA12	GD-A1	Percentage of employees receiving regular performance and career development reviews	31: Staff Training and Development 100% of all full time staff will receive regular performance and career development reviews.
HR4	GD-A1	Total number of incidents of discrimination and corrective action taken	None during the reporting period
HR11		Number of grievances related to human rights filed, addressed and resolved through formal grievances mechanism	None during the reporting period
SO3	GD-C3 KPI C3.1 KPI C3.2	Percentage of employees trained in organization’s anti-corruption policies and procedures	100% of employees were trained in Melco’s anti- corruption policies and procedures. The anti-corruption policies are included in the code of conduct in induction training to all new staff.
SO8	GD-D1	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations	There were no significant fines and non-monetary sanctions against non-compliance with laws and regulations during the reporting period.
DMA PR	GD-C2	Disclosure on Management Approach (Product Responsibility)	Melco strictly adheres to Laws of Hong Kong. As such, an internal group-wide Shareholders Communication Policy was developed to guide our practices and approaches on handling communications and privacy issues. Melco Shareholders Communication Policy: http://www.melco-group.com/doc/governance/Shareholders-Communication-Policy.pdf
PR7	GD-C2 KPI C2.2	Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications including advertising, promotion, and sponsorship by type of outcomes	None during the reporting period
PR8	GD-C2 KPI C2.5	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data	None during the reporting period
PR9	GD-C2	Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services	There were no significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.

Enquiry: Tel (852) 3151 3777 Fax (852) 3162 8375 Email csr@melco-group.com
This Report has been prepared in accordance with the internationally recognized Global Reporting Initiative (GRI) G3.1 reporting guidelines. In addition we have also referenced the Hong Kong Exchanges and Clearing Limited (HKEx) ESG Reporting Guide, which is best practice and recommended for all listed companies in Hong Kong.