Environmental

Climate Resilience and Carbon Neutrality

The Group has committed to achieving carbon neutrality for its Scope 1 and Scope 2 emissions by 2060, in alignment with the national dual carbon goals. This long-term commitment anchors our approach to climate change, which the Group manages as a matter of enterprise risk: the climate risk management framework completed in 2025 embeds physical and transition risks into enterprise risk management, with climate scenario assessments reported to the Risk Management Committee and informed by consultation with insurance partners and relevant government departments. Assessment findings feed into property-level resilience and disaster-preparedness measures — an area identified in our materiality assessment as among the Group’s most material issues.

Our climate-related disclosure follows the HKEX ESG Code Part D, aligned with IFRS S2, covering governance, strategy, risk management and metrics, including scenario analysis; the complete disclosure is available in our ESG Report. The decarbonisation programmes that carry this commitment into operations are described under Energy, Water, Waste & Circularity, and the interim targets supporting the 2060 commitment, together with progress, are published on Our Targets.

Energy, Water, Waste & Circularity

The Group manages energy, water and waste through a structured approach that begins with measurement. Independent third-party energy and carbon audits have been completed across our major properties, establishing property-level consumption baselines, and resource use is monitored continuously through digital energy and facility management systems, so that investment and operational decisions are directed by data.

That measurement directs capital and operations. The Group is converting fuel sources through the natural gas transition at Grand Lisboa and the replacement of diesel equipment with electric alternatives — the diesel bus fleet has been reduced by 18 per cent — while building performance is optimised through AI-enabled air-conditioning, integrated building management systems and automated guest-room controls, complemented by the Group’s self-developed Cooling Tower Wind Energy Recovery Power Generation System at Grand Lisboa Palace, which recovers energy from cooling-tower airflow to generate power on site. In 2025, our properties diverted more than 1,500 tonnes of recyclables from landfill, supported by waste-separation infrastructure, while water stewardship measures operate across all properties and Scope 3 emissions reporting has been enhanced to category-level disclosure. Related targets are published on Our Targets.

Green Buildings & Certifications

The Group subjects the environmental performance of its buildings to independent third-party verification, integrated from the design stage onward. Grand Lisboa Palace Resort Macau holds LEED® Silver certification in the New Construction category, recognising sustainable design and construction, and in 2026 received its first EarthCheck Silver certification, recognising its achievements in green operations and sustainable development — extending independent verification from how the building was built to how it is operated.

The same discipline applies across the portfolio, with recognition advancing over time. At the 2025 Macao Green Hotel Awards, Grand Lisboa Palace was honoured with the Gold Award, progressing from the Silver Award it first received in 2022; Grand Lisboa holds a Silver Award and Sofitel Macau at Ponte 16 a Bronze Award under the same scheme. All four of the Group’s hotels and resorts have been members of the Low Carbon Green Hotel Development Alliance since 2021, with certifications maintained through periodic audit and renewal.