MGM Resorts International recently announced its Science Based Targets Initiative (SBTi). This is the leading organization for third party guidance and independent validation of climate targets – has approved its climate targets as science-based and in line with the goals of the Paris Agreement.
What this validation means
Approved scope 1 and 2 emissions targets were validated as being in line with the 1.5 °C pathway, currently the organization’s most ambitious designation.
“Climate change is real and action in line with climate science is critical to curbing emissions growth and preventing the worst effects of a warming planet,” said Michael Gulich, Vice President of Sustainability and ESG Reporting at MGM Resorts.
“Approval of our targets is an important step in our ongoing journey to address climate change and is a testament to our fierce commitment to corporate climate leadership.”
Which goals can this validation achieve?
- Reduce absolute scope 1 and 2 GHG emissions by 50% by 2030, which is in line with a 1.5°C trajectory
- Reduce absolute scope 3 GHG emissions from purchased goods and services, fuel-and energy-related activities, waste generated in operations, and employee commuting by 30%
Recognizing that emissions extend to the global value chain, MGM Resorts set a scope 3 emissions reduction target, setting a precedent for an industry in which most emissions come from the value chain, including purchased goods and services.
How is MGM Resort achieving this?
For the combined scope 1 and 2 target, the Company aims to substantially reduce scope 2 emissions associated with electricity use in the U.S by pursuing a separate but related goal to source 100% renewable electricity in the U.S. by 2030.
The MGM Resorts Mega Solar Array provides up to 90% of daytime electricity use at Las Vegas Strip resorts and approximately 30% of total Las Vegas resort electricity use (day and night).
For the scope 3 target, progress toward the goal will be activated by applying multiple levers across significant categories, with an emphasis on reducing embodied emissions in purchased goods and services, particularly those related to food.
MGM Resorts strives to lead the hospitality industry in its response to a changing climate with transparency, accountability and actions informed by the latest climate science.
In 2022, CDP placed MGM Resorts on its A-List for climate change and water security, making it one of only 57 companies worldwide to achieve this recognition.
The Company was also the first gaming company to endorse the CEO Water Mandate, a UN Global Compact and coalition of major companies making bold commitments to address water crises and challenges.