Sandy Shio, Chairman of the Macau Greater China Corporate Social Responsibility Research Institute (MICSRGC), speaking to AGB, notes that as Macau’s integrated resorts (IRs) grow in size, gaming operators should improve their CSR (Corporate Social Responsibility) and ESG (Environment, Social and Governance) standards and implement strategies into their daily operations.
Various ESG and CSR frameworks are in place for gaming operators, including gambling concessions and gambling laws. China has set targets to limit its carbon emissions and in addition to national regulatory frameworks, Shio adds that since all six operators are listed on the US or Hong Kong stock exchanges, there are international ESG and CSR frameworks in place for these companies. She generally believes Macau concessionaires are the driving force behind CSR in the city. Due to the listing obligations of the stock exchanges, ESG reports are also created as a requirement, leading to increased awareness of CSR and ESG.
CSR impact on the industry
Under the new 10-year gaming concession, the authorities in Macau have demanded that gaming operators invest more in non-gaming offerings. All six concessionaires have stated that they will prioritise organising more such events. These include MICE, entertainment, and sports-related activities in Macau, with an investment of $14.8 billion over a 10-year period.
Shio points to the increased focus on non-gaming activities as the most significant CSR contribution. Non-gaming initiatives are part of CSR’s compliance policy under the 10-year gaming concession. As such, Macau officials expect such events to help transform Macau’s gaming industry. Non-gaming events are also expected to expand customer base from mainland China into international markets.
Supporting local SMEs (small and medium-sized enterprises) and securing employment for local workers are also important aspects of CSR. In 2022, game operators in Macau were urged to practise CSR to avoid mass layoffs, specifically by maintaining, the salaries of local residents.
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