Caesars Entertainment Sustainability Report 2011-2012

Caesars Entertainment 2011-2012 Sustainability Report

2 7 16 25 Letter from the CEO

Commitment to

Our Communities

Commitment to Our Guests

Corporate Governance

4 5 11 13 18 24 26 28 Our Code

Sustainability

of Commitment

Highlights

Caesars Foundation

Commitment to Our Employees

Commitment to

Responsible Stewardship

About Our Company

of the Environment

About This Report

GRI Index

table of contents

Letter from the CEO

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Dear Stakeholders,

C

aesars Entertainment’s focus on social responsibility is a key component of our corporate culture. We are proud of our

economic and social contributions to the communities in which we operate, as well as the recognition we’ve received from our employees, guests and communities as an industry leader in environmental sustainability. We have made significant progress in the past year and a half in enhancing our environmental efforts, and I’m pleased to share that progress with you in our third annual report: Caesars Entertainment Sustainability Report (January 2011-June 2012). In 2011, we paid $2.8 billion in salaries and benefits, and $1.2 billion in U.S. state and federal taxes. Our nearly 70,000 employees gave back to their hometowns and regions during 2011 by donating 126,000 volunteer hours to community nonprofits such as the American Cancer Society and Second Wind Dreams. Combined giving from all sources during 2011 averaged $1.45 million a week. We place a great deal of emphasis on aligning our business practices with charitable giving and employee volunteerism to expand our positive impacts on communities and the environment. Our support of Clean the World (CTW), a nonprofit that works to prevent infectious disease and save lives by improving

Caesars Entertainment Sustainability Report 2012

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Letter from CEO continued

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hygiene in vulnerable communities, is one example. Each day, our housekeepers clean thousands of hotel rooms and collect unused soap and shampoo that is donated to CTW, which sanitizes and distributes it to impoverished areas around the world affected by infectious diseases. In addition, since 2010 the Caesars Foundation has donated $250,000 to CTW to expand its capacity to process donated soap from Caesars’ resorts and hundreds of hotels in the Western United States. Our support of the American Cancer Society’s Relay For Life initiative is another example. Forty of our HERO employee volunteer teams hosted Relay for Life events across the United States in 2011, raising $156,000 for cancer research. The Caesars Foundation matched that amount as part of its support of the teams. I am especially pleased to report that we are on track to achieve our energy-conservation, carbon-reduction, water-usage, LEED-certification and guest-awareness targets. We have added our international properties to the domestic casino resorts we include in measuring our carbon footprint, increased the staffing of our core CodeGreen team, and expanded the metrics on which we report. Our sustainability progress could not have been achieved without the enthusiastic support of our employees. I am inspired by their energy and passion, and proud to work alongside them. Sincerely,

Gary Loveman Chairman, President and CEO Caesars Entertainment Corporation


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Our Code of Commitment

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The Caesars Code of Commitment governs the conduct of our business. It is a public pledge to our employees, guests, and communities that we will honor the trust they have placed in us, and a pledge to environmental sustainability. The Code is made up of four individual commitments: A commitment to all our employees to treat them with respect and provide satisfying career opportunities A commitment to all our guests to promote responsible gaming A commitment to all our communities to help make them healthy and vibrant places to live and work A commitment to responsible stewardship of the environment

For more detailed information on the Code of Commitment, please see: http://www.caesars.com/corporate/about-us-code-of-commitment.html Caesars Entertainment Sustainability Report 2012

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Sustainability Highlights

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JANUARY 1, 2011 – JUNE 30, 2012

Transparency & Reporting • First in the gaming entertainment industry to publish three consecutive annual sustainability reports • Published second Carbon Disclosure Project Response

Global Leadership • Caesars vice president of sustainability elected to board of directors of the Global Sustainable Tourism Council • Played leadership role establishing positive community initiatives such as nonprofit Clean the World’s soap recycling facility, regional planning nonprofit Green Chips and Teacher EXCHANGETM

Commitment to Employees • Wellness Rewards program encourages employees to take advantage of health screenings, onsite nurses and wellness coaches

Commitment to Guests • Caesars Windsor was the first casino to receive Accreditation from the Responsible Gaming Council (Canada)

Commitment to Communities • Caesars employees individually and as members of HERO teams devoted 126,000 hours to strengthening the well being of their communities during 2011 • Combined giving to nonprofit community groups by Caesars Entertainment and Caesars Foundation averaged $1.45 million a week during 2011 • Joint Caesars corporate/Caesars Foundation volunteer program and philanthropic beneficiaries include: Meals on Wheels Association of America, Second Wind Dreams, Clean the World, National Park Trust, American Cancer Society, Green Chips, Nevada Conservation League, The Public Education Foundation’s Teacher EXCHANGETM (Nevada) • Caesars Foundation gifted $900,000 since 2008 to the nonprofit Second Wind Dreams; HERO employee volunteers helped make 700 Second Wind Dreams come true for older individuals since 2009 • Raised $156,000 for American Cancer Society during 2011 by hosting and participating in Relay For Life events • Collected more than 110,000 pounds of soaps and bottled amenities at resort casinos U.S.-wide for the nonprofit Clean the World, which works to reduce disease and mortality rates in communities globally • National Corporate Excellence Award Finalist (Points of Light Foundation)


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Sustainability Highlights continued

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Commitment to Environmental Stewardship

Environmental Awards & Recognition

Achievements • Invested nearly $70 million (corporate) in energy-efficiency measures over nine-year period

Corporate Awards • Silver IMEX Green Supplier Award (2012), awarded to Caesars Entertainment Meetings & Events division by IMEX and Green Meetings Industry Council (GMIC), for environmental excellence and innovation within the meetings industry

• On track to achieve targets announced in 2010 for reducing absolute carbon emissions by 10 percent from 2007-2013 • LED-conversion initiative replaced 50,000 halogen bulbs throughout U.S. properties • Updated targets for: energy conservation, carbon emissions, fossil fuel use, renewable energy, alternative fuels, water consumption, waste diversion, LEED • Raised nearly $6M for the nonprofit ONE DROP through inaugural World Series of Poker tournament The Big One for ONE DROP • Strengthened and expanded core sustainability management team • Committed to all properties achieving Green Key certification by the end of 2013

Resort Awards • Golden Pinecone Environmental Award (2011), from nonprofit groups Nevada EcoNet and greenUP! (Northern Nevada Region) • Water Hero Award (2011), from the Southern Nevada Water Conservation Coalition • Green Apple Award (2011), from the nonprofit Green Organization (London Clubs International) • Star of the Industry Sustainability Award, from the National Hotel & Lodging Association (Northern Nevada Region) • Certificate of Environmental Stewardship (2011), from the New Jersey Department of Environmental Protection (Atlantic City Country Club) • Audubon Cooperative Sanctuary Certification in Environmental Planning, from Audubon International* (Atlantic City County Club) • Energy Showcase Award, from San Diego Gas & Electric Company* (Harrah’s Rincon North San Diego) *also cited in 2010-2011 sustainability report


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Commitment to our Communities

GRI INDEX

Caesars Entertainment is committed to playing a positive leadership role in the communities where it operates. Our goal is to make these communities healthier and more vibrant places to live. We place a special focus on health and wellness, the well being of older individuals, and the environment. This focus is reflective of the efforts of our enthusiastic HERO employee volunteer teams at each resort. These teams work closely with nonprofits and directly with the community on projects that have included hosting Relay For Life events for the American Cancer Society, and helping to grant older individuals’ Second Wind Dreams requests. Caesars also contributes to the economic vitality of communities by creating thousands of jobs, purchasing from local suppliers, and serving as one of the largest funding supporters of local nonprofit organizations and planning and development organizations.

2.8

1.2

$

$

billion in salaries & benefits, U.S. properties

billion in U.S. taxes paid*

70 thousand employees

1.45

$

million per week combined giving**

Nearly

126 600 thousand Hero employee volunteer hours

Hero community projects & events

*includes employment, gaming, licenses/fees, property, sales & income, other **includes mandated and discretionary giving from resorts, the Corporation and Caesars Foundation


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Commitment to our Communities continued

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Caesars “Relay For Life” Teams Raise $156,000 for the American Cancer Society In 2011, in a joint effort by Caesars’ HERO employee volunteers and Caesars Foundation, more than 40 HERO teams across the country hosted Relay For Life events. Teams held overnight events with bake and barbeque sales, family games, and entertainment for employees and community participants.

Cancer impacts all of us. We are proud to stand united in our efforts to protect and inspire the women in our lives to be screened and help them fight the disease each day in our communities. Jan Jones

Executive Vice President of Communications & Government Relations, Caesars Entertainment

Harrah’s Rincon Casino.

Caesars’ support of Dartmouth College’s Big Green Bus tour helped make it possible for Dartmouth students to bring environmental education into communities across the country. For more information on Caesars’ support of The Big Green Bus, please see the Commitment to Responsible Stewardship of the Environment section on page 18 of this report.


Donny Osmond (above) and Dartmouth College students.

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Commitment to Our Communities continued

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Saving Guestroom Soap Saves Lives Around the World Our support of the nonprofit Clean the World begins with our hard-working housekeepers, who collect lightly used soap and shampoo amenities from guest rooms. These are donated to Clean the World, which sanitizes and distributes them to communities in need throughout the United States and in more than 40 developing countries around the world. Millions of lives are lost each year – the majority of them children – to disease caused by improper hygiene and lack of soap. By recycling gently used hotel soaps and distributing them to areas that lack access to these essential items, Clean the World hopes to reduce such mortality substantially.


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Commitment to Our Communities continued

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Bringing Employees and Their Families to Nature In concert with the nonprofit National Park Trust (NPT), more than 30 Caesars resorts from New Jersey to California hosted grassroots National Kids to Parks Day events in spring 2012. These outings encouraged employees, their children and neighbors to experience nature in local and national parks, and to support conservation, outdoor recreation, and a healthy environment. More than 3,300 Caesars employees and their families participated.

Integrating Employee Community Involvement with Charitable Giving for Greater Community Impacts Community Nonprofit Groups

Employee Community Involvement

Foundation Giving

Corporate Giving

Clean the World

X

X

X

National Park Trust (Kids to Parks)

X

X

X

Second Wind Dreams

X

X

Relay For Life (American Cancer Society)

X

X


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Caesars Foundation

GRI INDEX

The Caesars Foundation’s objectives are to:

4 color process

 Help older individuals live longer, healthier, more fulfilling lives … at every stage of the aging process  Marshal our financial resources – and the commitment of our colleagues – to promote a safer, cleaner environment  Strengthen the social, economic, educational, and cultural life of each community in which Caesars Entertainment operates

Preventing Infectious ® Disease Around the World The will to do wonders® Since 2010, Caesars Foundation has committed $250,000 to the nonprofit Clean the World (see previous section: Commitment to Our Communities), helping the group expand its capacity and establish a new Las Vegas-based soap recycling operations center. This facility will process soap for hundreds of hotels throughout the western United States.

RECYCLING SOAP

SAVES LIVES Every day, thousands of hotels discard millions of pounds of soap and shampoo. Every day, impoverished people around the world die from infection and 4 color process

disease because they have no soap. Studies have shown that simple hand washing substantially reduces the spread of these diseases. Clean the World partners with many North American hotels, including Caesars Entertainment resorts in Las Vegas and across the country, to recycle and

®

The will to do wonders®

distribute these discarded soap products to impoverished countries worldwide and domestic homeless shelters. Find out how you can help by visiting www.cleantheworld.org.

® The will to do wonders®

® The will to do wonders®


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Caesars Foundation continued

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Nearly

60

$

million contributed to communities since 2003*

5.5

$

million contributed to Meals on Wheels Association of America since 2002

Understanding How It Feels: HERO Volunteers Experience Virtual Dementia Simulation Through Second Wind Dreams Given the opportunity, would you voluntarily put yourself in the shoes of an older individual with dementia? Caesars HERO volunteers did just that, participating in the hands-on Virtual Dementia Tour offered by the nonprofit Second Wind Dreams®, which helps relatives and other caregivers gain critical insight into the experience of those with dementia.

900

$

thousand given to Second Wind Dreams since 2008

I am so glad that I was able to go to Second Wind Dreams’ Virtual Dementia Tour® … (it) has changed my outlook on the importance of understanding what our elders with dementia are going through. Dawn Malone (Rendon) Revenue Analyst Systems and Training Caesars Entertainment

Bringing At-Risk Students to Nature For the last two years, Caesars Entertainment and Caesars Foundation have individually provided financial support to the National Park Trust’s (NPT) Buddy Bison program that brings at-risk elementary and middle school students to natural settings on public lands. For most of these students, the field trips into nature are a new experience. After enjoying hands-on experiential learning, many return awed and filled with a desire to learn more about the environment. NPT also provides the students and their teachers with curriculum materials that focus on the responsible use of natural resources. During the past two years, Caesars and Caesars Foundation contributed $125,000 to the organization, allowing the group to reach thousands of at-risk youth in nine Caesars regions and to host Kids to Parks days at over 30 Caesars properties.

*voluntary giving


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Commitment to our Employees

GRI INDEX

Caesars Entertainment employees are critical to the success of our sustainability initiatives and business. Across the company at any given moment, you’ll find our employees excelling at customer service, finding unique ways to reduce our environmental impact, and volunteering as HERO ambassadors in the community. We are deeply committed to creating innovative programs that support our employees and their families. We fulfill this commitment by providing:  excellent pay and benefits that include retirement, 401k plans, on-site Wellness care nurses and coaches, and rewards for preventative care and participation in wellness programs  meaningful careers and professional growth through training and tuition reimbursement  a work culture that values the contributions of employees from diverse backgrounds

Innovating for Employee Health Caesars’ innovative Wellness Rewards program rewards employees who proactively manage their health care by providing them with lower medical premiums. Premiums for employees enrolled in the program have remained flat during the past five years. Each participating employee and spouse or domestic partner undergoes a biometric screening, an annual physical, and a consultation with an onsite nurse or coach who recommends behavioral changes that can lead to improved health. The on-site wellness nurse or coach also helps participants stay on track with their health improvement programs. Employees at our Las Vegas region properties also have access to workout centers and personal trainers. All of these services are free. . Caesars Entertainment Sustainability Report 2012

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Commitment to our Employees continued

GRI INDEX

Work Satisfaction and Employee Community Involvement One insight we gained in 2011 is that employees who participate in community volunteerism have higher levels of engagement and satisfaction at work. Based on a company-wide survey, employees who knew about the company’s volunteerism programs were: • 92 percent more likely to be highly engaged in the workplace • 63 percent more likely to have the highest level of morale • 58 percent more likely to have the highest level of intent to stay with the company Work Satisfaction and Employee Participation in CodeGreen Environmental Activities We also measured the effect that employee participation in CodeGreen environmental activities had on engagement and satisfaction at work. Employees were asked to rate seven key job satisfaction measures on a five point scale, with “5” ratings (A scores) being the highest: overall job satisfaction, satisfaction with supervisor, pride in the workplace, willingness to recommend Caesars to others as a place to work, loyalty to the company, feeling that leadership is ethical, and motivation to go above and beyond the job. Correlation analysis determined that greater employee involvement in CodeGreen activities is associated with higher scores in each of the seven key job satisfaction measures depicted below.

2011 EOS CodeGreen “A” Scores Correlation to Engagement Questions 80% 70%

69%

66%

60%

63%

59%

57%

50%

53%

51%

40% 30% 20% 10% 0%

Pride

Involvement Supervisor Satisfaction

Willingness to Recommend

Overall Satisfaction

Ethical Leadership


Loyalty

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Discretionary Effort

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Commitment to our Employees continued

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Work Satisfaction and Customer Loyalty Further analysis through Harvard Business School* determined that CodeGreen also helps to drive the service profit chain. That is, CodeGreen is a catalyst that can and does have an independent effect on customer satisfaction and loyalty. The analysis showed that higher levels of employee engagement at work correlated with higher levels of customer satisfaction. Higher levels of customer satisfaction, in turn, correlated with increased customer loyalty. The data show that this impact flows directly to customers and does not depend on employee attitudes.

Total Return: Connecting Work Satisfaction with Personal Pursuits Caesars introduced Total Return as a creative way to connect our employees’ achievements at work with their individual passions and pursuits. Employees who excel in customer service are rewarded with credits that can be redeemed for travel, events, merchandise and media. Since Total Return’s launch in 2009, Caesars employees have earned more than $59 million in Total Return credits. Employees at all 37 North American resorts have qualified for Total Return rewards.

*George Serafeim, Assistant Professor of Business Administration, Harvard Business School


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Commitment to our Guests

GRI INDEX

Promoting responsible gaming is part of Caesars Entertainment’s heritage and culture, and a responsibility the company takes seriously. At Caesars, we want everyone who gambles at our casinos to be there for the right reason – to have fun. We do not want people who cannot gamble responsibly to play at our casinos, or, for that matter, at any casino. To uphold our commitment to Responsible Gaming, we: • Do not cash payroll, welfare, or unemployment checks • Deny casino-play privileges to guests we know should not be gaming • Train our employees on the importance of responsible gaming and how to offer help to customers who may need it • Exceed state requirements and industry guidelines for displaying tollfree helpline numbers and restricting casino advertising • Provide financial support to the National Council on Problem Gambling and the National Center for Responsible Gaming The multiple responsible gaming programs we have pioneered during the past several decades have been widely adopted by the industry and support our commitment to promote Responsible Gaming. Part of this commitment includes honoring self-exclusion decisions on the part of guests. In 2012, we expanded our enterprise-wide system that identifies such individuals, strengthening this social safeguard.

Caesars Windsor Is First to Achieve Accreditation from the Responsible Gambling Council In June 2012, Caesars Windsor became the first gaming venue to receive responsible gaming accreditation through RG Check, a new voluntary program established by the Responsible Gambling Council. RG Check offers gaming companies the opportunity to gain an independent assessment of the quality of their responsible gaming programs.


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Commitment to our Guests continued

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Training Employees Is Essential to Responsible Gaming Caesars trains all its employees in responsible gaming policies and procedures. All Caesars customer contact employees learn to listen for and report comments that raise concerns that a customer may not be gambling responsibly. Their job is to alert one of our specially trained Responsible Gaming Ambassadors, who may then talk to the guest and provide appropriate assistance. .

R E S P O N S I B L E

G A M I N G

It’s a tribute to [Caesars’] enthusiasm to develop [responsible gaming] programs that meet not only Canadian but international standards. When you sign up to be the first, you’re taking a risk. What are these people going to tell you? What if we are not successful? So they have put themselves on the line to do this.

M E A N S :

Knowing when to stop At Caesars, we’re committed to responsible gaming. If you would like to restrict your credit, check cashing, mail, or casino play privileges, just ask any employee for more information.

WHEN GAMBLING MIGHT BE A PROBLEM: Gambling makes home life unhappy. Gambling to escape worry or trouble. Gambling to obtain money for debts. Considering or committing an illegal act to finance gambling.

Jon Kelly, CEO Responsible Gambling Council

Feeling remorse after gambling. Changing sleeping or eating habits due to gambling. Losing work time due to gambling. Borrowing to finance gambling. Considering harming yourself as a result of gambling.

Responsible Gaming Is Our Business.® If you think you or someone you care about may have a gambling problem,

call: 1-800-522-4700. All calls are confidential.

YO U M U ST B E 21 O R O LD E R TO GAM B LE

©2012 Caesars License Company, LLC.

V1_71671.2_22x28_Poster.indd 1

4/24/12 2:08 PM


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Commitment to Responsible Stewardship of the Environment

GRI INDEX

Caesars Entertainment engages its employees’ passion for the environment through a company-wide sustainability program: CodeGreen. The company’s long-term CodeGreen strategy focuses on the sustainable use of resources (energy and water), reducing carbon emissions and waste sent to landfill, and engaging guests and communities around the world in environmental stewardship. CodeGreen also supports social sustainability by providing financial support for Dartmouth College students’ Big Green Bus Tour Across America, for example, and for National Park Trust’s (NPT) Kids to Parks Day. At these annual NPT events, children and their families discover and reconnect with parks and green places to learn the importance of environmentally friendly practices at home. Based on projects initiated in 2011, Caesars anticipates recurring annual energy savings of 13.1 million kWh. That equates to an annual reduction of 7,600 metric tons of greenhouse gases.

Nearly

$

70

million investment in energy efficiency over 9 years

110

thousand pounds of gently used soap recycled

13.1

million kWh electricity savings from projects launched in 2011*

135

thousand metric tons annual avoided carbon emissions

Nearly

$

6

million raised to fund One Drop safe water access programs**

Disclosed air emissions

SOx, NOx, & VOCs for the first time

*anticipated annual recurring savings **through annual World Series of Poker (WSOP) tournament; WSOP is owned by Caesars Entertainment


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Commitment to Responsible Stewardship of the Environment continued

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Caesars Entertainment is one of a small number of companies that measure guest awareness of its environmental stewardship initiatives. In 2011, Caesars exceeded its target goal for increased guest awareness of CodeGreen by nearly 100 percent.

Investments in CodeGreen Organizational Capacity Building In 2011 we invested in organizational capacity building that will allow us to fulfill our next-stage CodeGreen strategy: • Expanded our reported U.S. carbon footprint to include international casino resorts • Convened external stakeholders as foundational work for the establishment of an external advisory board • Improved data collection capabilities through centralized review of utility invoices • Strengthened the corporate CodeGreen team by centralizing environmental compliance under a manager role, establishing a sustainable operations director position, and elevating the sustainability role to a vice president level position


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GRI INDEX

ENERGY, GREENHOUSE GASES AND WATER METRICS U.S. OPERATIONS

Electricity

Natural Gas

3,801,583

3,964,247

4,027,566

‘08 ‘09 ‘10

‘11

Water

4,133,800

4,120,706

Total gallons (000s)

1,101,596

1,128,197

1,139,691

1,153,696

Total metric tons CO2e

‘07

4,204,285

‘11

Greenhouse Gases 1,188,726

4,092,179

4,157,906 1,486,854

1,516,329

1,508,575

‘08 ‘09 ‘10

Total million BTU

4,249,164

‘07

1,564,720

1,623,478

Total megawatt hours

‘10

‘11

N/A

‘07

‘08 ‘09

‘10

‘11

‘07

‘08 ‘09

Electricity data now includes equivalent energy data for purchased chilled water, and natural gas data now includes equivalent energy data for purchased steam. Theses changes provide a more accurate picture of energy use, and were carried back through the years included on these charts. Chilled water and steam were always considered in Greenhouse Gas calculations so those numbers would not exhibit any relative change due to the modification in accounting procedure.


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GRI INDEX

Progress Toward Environmental Targets Energy Conservation • Updated Target: 20% reduction in fossil fuel use per air-conditioned square foot by 2015 from 2007 baseline • Existing Target: On track to achieve 40% reduction in fossil fuel use per airconditioned square foot 2007-2025 Carbon Emissions Reduction • Updated Target: 40% reduction 2007-2025 • Existing Target: On track to achieve 10% reduction 2007-2013 Renewable Energy • Updated Target: Currently collecting data to document progress toward target of 15% increase in use of renewables 2007-2020 Alternative Fuels • Existing Target: Currently collecting data to document progress toward target of 50% use of alternative fuels in company vehicles 2007-2020 Water Use • Updated Target: 10% reduction per airconditioned square foot 2008-2015 • Existing Target: On track to achieve 15% reduction per air-conditioned square foot 2008-2020* Waste • Updated Target: 35% diversion rate in 2014

• Existing Target: Incomplete aggregate data to identify progress toward targets of 25% diversion from landfill 2007-2014 and 50% diversion 20072020; Las Vegas properties report a 30% diversion rate Real Estate • Existing Target: On track to achieve LEED certification for all Caesarsowned newly built and expanded properties** Employees • Existing Target: Data will become available in January 2013 to identify goal of year-on-year increases in employee awareness and perception of CodeGreen Guests • Existing Target: Exceeded target of increasing guest awareness of CodeGreen compared to the previous year Alternative Fuels • Updated Target: Currently collecting data to document progress toward target of 50% use of alternative fuels in company vehicles 2007-2020 Green Key Certification • Updated Target: 100% certification for all resorts globally by end 2013

*revised from 2007-2020 in 2011 report **revised from LEED Silver certification in 2011 report for all new buildings


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GRI INDEX

Fueling Sustainability Education with the Big Green Bus Caesars’ casino resorts across the United States supported – and participated in – Dartmouth College’s Big Green Bus tour across America. A repurposed Greyhound bus that runs on waste vegetable oil (WVO), the Big Green Bus transported 13 Dartmouth College students 12,000 miles across 24 states to build enthusiasm for community involvement through environmental action. Our casino resorts provided WVO to fuel the bus, and our guests, employees and their families enjoyed visiting this “classroom on wheels.” Caesars’ sponsorship of this initiative helps increase awareness about the importance of sustainable practices and incorporating conservation at home.

Harrah’s Phoenix Ak-Chin Casino.


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Metric Tons GHG Emissions per 1,000 square feet

‘07

‘08 ‘09 ‘10

18.7

19.7

21.5

2025 Goal 22.0

23.8

Disclosing Emissions to Air Caesars in 2011 began using utility billing data to enable the reporting of criteria air pollutants sulfur oxide (SOx), nitrogen oxide (NOx), and particulates and volatile organic compounds (VOCs). For the first time we are able to disclose these data in this report.

‘11

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GRI INDEX

CodeGreen At Home Unlocks Creative Conservation Measures Sixty Caesars employees have earned rewards by participating in the CodeGreen At Home program since the company launched the initiative in 2010. The program encourages sustainable practices at home by providing Total Return credits redeemable for valuable merchandise. Employees have retrofitted their homes, installed solar panels, purchased solar heaters, and planted sustainable gardens. One employee even converted her car to run on recycled vegetable oil. The CodeGreen At Home program extends our commitment of environmental stewardship into the community, strengthening health and well being and reducing demand for scarce resources.

World Series of Poker Raises Nearly $6 Million for Water Conservation Group ONE DROP In 2012, the World Series of Poker (WSOP) selected ONE DROP as its official charity, raising nearly $6 million through The Big One for ONE DROP Tournament, the world’s largest poker buy-in at $1M. ONE DROP works to fight poverty in countries around the world by helping to provide safe access to water for those in need. Caesars’ contribution will fund three five-year infrastructure projects that will provide clean drinking water to those in need in Burkina Faso, El Salvador, and Honduras, helping an estimated 70,000 people.


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About Our Company

GRI INDEX

Caesars Entertainment Corporation, based in Las Vegas, Nevada (USA), is the world’s most diversified casino-entertainment provider and the most geographically diverse U.S. casino-entertainment company. We own, operate, or manage, through various subsidiaries, 54 casinos in 13 U.S. states and seven countries. The majority of these casinos operate in the United States and England. Our facilities, which operate primarily under the Harrah’s, Caesars and Horseshoe brand names in the United States, include 33 land-based casinos, 12 riverboat or dockside casinos, three managed casinos on Native American lands in the United States, one managed casino in Canada, one casino combined with a greyhound racetrack, one casino combined with a thoroughbred racetrack, and one casino combined with a harness racetrack. Our land-based casinos include one in Uruguay, nine in England, one in Scotland, two in Egypt and one in South Africa. As of December 31, 2011, Caesars facilities had approximately three million square feet of gaming space and 43,000 hotel rooms. Our customer loyalty program, Total Rewards, has more than 40 million members. We use the Total Rewards system to market promotions and to generate customer play across our network of properties. In addition, we own an online gaming business, providing for real money casino, bingo, and poker games in the United Kingdom, alliances with online gaming providers in Italy and France, “play for fun” offerings in other jurisdictions, social games on Facebook and other social media websites, and mobile application platforms. We also own and operate the World Series of Poker tournament and brand. Since its establishment in Reno, Nevada, 75 years ago, the company has grown through development of new properties, expansions, and acquisitions, and now hosts more than 100 million visitors per year. Combined wages and benefits in 2011 totaled $2.8 billion, and the company paid $1.2 billion in U.S. state and federal taxes. Revenues in 2011 were $8.8 billion. Select properties earned energy rebates from utility companies for their efficiency efforts while receiving little financial assistance from governments in 2011. Caesars groups its environmental policies and initiatives under the term “CodeGreen.” For more information on CodeGreen, please visit: www.caesars.com/codegreen. For more information about Caesars Entertainment Corporation, please visit: www.caesars.com/corporate/. Caesars Entertainment Sustainability Report 2012

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Corporate Governance at Caesars Caesars Entertainment Corporation, a Delaware corporation, primarily conducts its business through a wholly owned subsidiary, Caesars Entertainment Operating Company, Inc., although certain material properties are not owned by Caesars Entertainment Operating Company, Inc. Unless otherwise noted or indicated by the context, the terms “Caesars,” “Caesars Entertainment,” “Company,” “we,” “us,” and “our” refer to Caesars Entertainment Corporation. We were incorporated on November 2, 1989 in Delaware, and prior to that date operated under predecessor companies. Our principal executive offices are located at One Caesars Palace Drive, Las Vegas, Nevada 89109, telephone (702) 407-6000. Until January 28, 2008, our common stock was traded on the New York Stock Exchange under the symbol “HET.” On January 28, 2008, Caesars Entertainment (then Harrah’s Entertainment, Inc.) was acquired by affiliates of Apollo Global Management, LLC (“Apollo”) and TPG Capital, LP (“TPG”) and, together with Apollo, the “Sponsors” in an all-cash transaction. In February 2012, Caesars completed an initial public offering and its shares now trade on the NASDAQ Global Select Market (symbol: CZR). Caesars’ chief executive officer also serves as chairman of the board of directors. Caesars’ 12-person board of directors includes representatives affiliated with our controlling shareholders, affiliates of Apollo Global Management, LLC and TPG Capital, LP. To learn more, please visit: http://investor.caesars.com/. Additional information is available in our 2010-2011 sustainability report at: www.caesars.com/codegreen.


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GRI INDEX

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About This Report

GRI INDEX

The publication of this year’s Caesars Entertainment Sustainability Report 2011-2012 marks our third annual sustainability report. Boundaries & Data: This year’s report presents 2011 performance data (unless otherwise specified) from Caesars’ owned and operated properties* around the world, including racetracks and golf courses. Additionally, where indicated, the report presents illustrative and policy information from January 1, 2012 to June 30, 2012. Most data were collected through our CodeGreen Scorecard process, which collects environmental, employee and guest information from each individual property. Additional data covering 2011 may be found in our most recent Carbon Disclosure Response at: https://www.cdproject.net/en-US/Pages/HomePage.aspx. Materiality, Stakeholder Engagement, and Managing Sustainability: For information on our materiality determination and stakeholder engagement processes, and on how we manage sustainability, please see pages 12-13 in last year’s 2010-2011 sustainability report, at: http://www.caesars.com/corporate/environment-sustainability.html. Global Reporting Initiative: This report is informed by the Global Reporting Initiative’s (GRI) G3.1 Guidelines. Based on the Standard Disclosure and Indicator responses contained herein, we believe it qualifies as a GRI G3.1 Level “C” report. This report has not been assured by an external provider. We welcome stakeholder feedback on this report and on our overall sustainability performance. Please send comments directly to: [email protected]. *with the exception of Egypt and Uruguay


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Global Reporting Inititative Index Caesars Entertainment recognizes the importance of Global Reporting Initiative (GRI) standards of transparent, relevant reporting. This report is informed by GRI G3.1 Guidelines. We believe it qualifies as a G3.1 Level “C” report. This report has not been assured by an external provider. To learn more, please visit: https://www.globalreporting.org/Pages/default.aspx Disclosure

Description

Reported Report Section

1. STRATEGY AND ANALYSIS 1.1

Statement from the most senior decision-maker of the organization.

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Letter from the CEO p. 2

2. ORGANIZATIONAL PROFILE 2.1

Name of the organization.

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About Our Company p. 24

2.2

Primary brands, products, and/or services.

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2.3

Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

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2.4

Location of organization’s headquarters.

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2.5

Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

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2.6

Nature of ownership and legal form.

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Corporate Governance p. 25

2.7

Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

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2.8

Scale of the reporting organization.

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2.9

Significant changes during the reporting period regarding size, structure, or ownership.

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No significant changes occurred during the reporting period.

2.10

Awards received in the reporting period.

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Sustainability Highlights p. 5

3. REPORTING PARAMETERS 3.1

Reporting period (e.g., fiscal/calendar year) for information provided.

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3.2

Date of most recent previous report (if any).

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About This Report p. 26

3.3

Reporting cycle (annual, biennial, etc.)

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3.4

Contact point for questions regarding the report or its contents.

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3.5

Process for defining report content.

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Caesars Entertainment Sustainability Report 2010–2011 p. 10

3.6

Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

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3.7

State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).

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3.8

Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

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Caesars currently reports performance data from all the U.S. properties it manages including subsidiaries. Its several leased facilities are small and have no significant impact on aggregate performance data.

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1) See footnote p. 18 2) Electricity and natural gas have been restated back through 2007. Electricity data now includes equivalent energy data for purchased chilled water, and natural gas data now includes equivalent energy data for purchased steam. Theses changes provide a more accurate picture of energy use, and were carried back through the years included on these charts. Chilled water and steam were always considered in Greenhouse Gas calculations so those numbers would not exhibit any relative change due to the modification in accounting procedure.

3.10

Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g.,mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

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Global Reporting Initiative continued Disclosure

Description

3.11

Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

3.12


Table identifying the location of the Standard Disclosures in the report.

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By implementing more sophisticated data capture methodologies such as the utlity bill program, precision for some data has increased from previous reporting years. Also, data presented for 2011 encompasses a greater portion of the enterprise than in previous years due to a more robust tracking system. For example, Caesars has begun collecting and including data from its properties outside North America.

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GRI Index p. 28

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1) Corporate Governance, p. 25 (2) Caesars Entertainment Sustainability Report 2010–2011 p. 12 (3) Caesars Entertainment website: http://investor.caesars.com/governance.cfm

4. GOVERNANCE, COMMITMENTS, AND ENGAGEMENT 4.1

Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

4.2

Indicate whether the Chair of the highest governance body is also an executive officer.

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Letter from the CEO p. 2

4.3

For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or nonexecutive members.

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1) Corporate Governance p. 25 (2) Caesars Board of Directors http://investor.caesars.com/directors.cfm

4.4

Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

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Contact the Board: http://investor.caesars.com/contactBoard.cfm

4.14

List of stakeholder groups engaged by the organization.

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Sustainability Highlights p. 5

4.15

Basis for identification and selection of stakeholders with whom to engage.

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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.

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EC2

Financial implications and other risks and opportunities for the organization’s activities due to climate change.

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Caesars Entertainment Carbon Disclosure Project (CDP) Response

EC4

Significant financial assistance received from government.

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Caesars properties used an estimated 953 TJ of energy in calendar 2011. This figure accounts for the use of electricity, natural gas, diesel fuel, unleaded gasoline, propane, steam, and chilled water.

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Data for Las Vegas Region only: Total energy consumed = 515,184,700 kWh. Approximately 15%, per suppliers, came from renewable sources. Thus an estimated 77,088,000 kWh came from renewable sources, including: 1) 39,314,900 kWh from Geothermal 2) 23,897,300 kWh from Solar 3) 10,792,300 kWh from Wind

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Based on projects initiated in 2011, energy savings are expected to be 13.1 million kWh of electricity and 14,200 mmbtu of natural gas on continuing annual basis. Actual electricity savings will be larger, because at this point we only measure the efficiencies created by our lighting retrofit and bulb replacement initiative. Energy saved from other programs such as changing guest behavior to use less water in guestrooms, reducing the need for electricitypowered pumping, is not currently captured. Note that these reductions will not be repeated each year; rather, they reduce total consumption one time and carry that reduction forward on an ongoing basis.

ECONOMIC Economic Performance EC1

Energy EN3

Direct energy consumption by primary energy source.

EN4

Indirect energy consumption by primary source.

EN5

Energy saved due to conservation and efficiency improvements.


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Global Reporting Initiative continued Description

EN6

Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.


EN7

Initiatives to reduce indirect energy consumption and reductions achieved.

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Disclosure

1) Commitment to Responsible Stewardship of the Environment p. 19–23 2) In addition to the LED conversion initiative described on p. 6 and in last year’s report, we are installing energy efficient in-room thermostats, which save natural gas and electricity by managing heating and cooling settings. We make it easy for our guests actively to reduce their consumption of electricity and natural gas through in-room signage. Water efficiency projects are reducing the amount of gas needed to heat water as well as the electricity used to pump water.

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1) See qualitative explanation for EN6 above. (2) Commitment to Responsible Stewardship of the Environment pp. 19–23 (3) Through 20 major lighting retrofit and bulb replacement projects initiated in 2011, we expect to consume 13.1 million fewer kWh of electricity on an annual basis. That equates to a reduction of approximately 7,600 MT CO2e annually.

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Estimated water usage of 4,120,705,900 gallons (15,598,600 cubic meters) across North American operations, including metered water usage from utilities but exclusive of groundwater.

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1) Direct and indirect greenhouse gas emissions totaled 1,113,590 MT CO2e. 2) Calculations were based on a combination of factors. Emissions factors were used to calculate CO2 emissions from the direct firing of combustion sources such as natural gas boilers, diesel-fired emergency equipment, and other units using propane. 3) Greenhouse gas emissions from purchased electricity were calculated using USEPA published eGRID factors. 4) Engineering factors were applied to utility operations at our properties to estimate total GHG emissions on a per property basis. The property totals were then totaled to provide an overall GHG emission summary for the organization.

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An evaluation based on Caesars’ purchasing practices estimates Scope 3 GHG emissions to be approximately 661,830 MT CO2e. The evaluation did not include employee travel.

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GHG reduction efforts were tied to energy and utility efficiency projects. Lighting retrofit projects are expected to yield a reduction in GHG emissions of approximately 25,000 MT CO2e. The guestroom thermostat project has an estimated reduction of another 25,000 MT CO2e. A third initiative regarding the installation of low-flow showerheads is anticipated to reduce GHG emissions by 2,500 MT CO2e. These are continuing annual reductions based on changes in equipment.

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Scope: North American properties Calculations: based on average emissions factors 1) 72.21 metric tons NOx from consumed natural gas 2) 0.87 metric tons SO2 from consumed natural gas 3) Caesars does not emit POPs as a result of its operations 4) 7.94 metric tons VOC from consumed natural gas 5) 10.98 metric tons particulate matter (PM) from consumed natural gas

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Based on records, no significant spills were reported during 2011.

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Caesars does not ship wastes in violation of the Basel Convention. Active measures are taken to ensure that wastes are managed appropriately according to local regulations and carried by suppliers that do not transport waste internationally.

Water EN8

Total water withdrawal by source.

Emissions, effluents and waste EN16

EN17

EN18

EN20

Total direct and indirect greenhouse gas emissions by weight.

Other relevant indirect greenhouse gas emissions by weight.

Initiatives to reduce greenhouse gas emissions and reductions achieved.

NOx, SOx, and other significant air emissions by type and weight.

EN23

Total number and volume of significant spills.

EN24

Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally.


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Description


Products and services EN26

Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

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Commitment to Responsible Stewardship of the Environment pp. 18, 23

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

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Based on records, Caesars paid no fines or non-monetary sanctions, and no cases went to dispute resolution.

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An evaluation of Caesars’ purchasing practices estimated Scope 3 GHG emissions to be approximately 661,800 MT CO2e. The evaluation was based on the acquisition of materials and items necessary to maintain operations. Employee transportation was not included.

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1) Commitment to Responsible Stewardship of the Environment p. 18, 24 2) Sustainability Highlights p. 5

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Commitment to Our Employees pp. 13, 14

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Caesars Entertainment Sustainability Report 2010–2011 pp. 18, 20–21

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In the United States, new projects are analyzed by Legal Counsel for project-specific risks that include political contributions and gifts. Outside the United States, new projects are analyzed for risks of corruption.

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Nearly two thirds of Caesars’ management (director-level and above) have receved training in the U.S. Foreign Corrupt Practices Act. Front line employees receive Do What’s Right training and Compliance Training.

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1) Caesars is a service provider. Life-cycle stages are assessed for impacts on employees of products used in Operations such as cleaning products and dishwasher systems. 2) Staff review research and work closely with vendors to find ways to reduce impacts, such as using some Green Certified cleaning products and highly efficient dishwasher systems that require less soap and energy 3) Continuous improvement staff embedded at properties identify efficiencies and streamline operations in a range of areas such as waste management, where the amount of food discarded in preparation areas is measured and reduced.

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1) Caesars Entertainment Sustainability Report 2010–2011 p. 26 2) New data to be published 2013

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Compliance EN28 Transport EN29

Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.

Overall EN30

Total environmental protection expenditures and investments by type.

SOCIAL: LABOR PRACTICES AND DECENT WORK Occupational health and safety LA8

Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.

Training and education LA11

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

SOCIAL: SOCIETY Corruption SO2

SO3

Percentage and total number of business units analyzed for risks related to corruption.

Percentage of employees trained in organization’s anti-corruption policies and procedures.

SOCIAL: PRODUCT RESPONSIBILITY Customer health and safety PR1

Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.

Product and service labeling PR5

Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.

Marketing communications PR6

Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.


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Description


Customer privacy PR8

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.

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Data and Digital Security worked on some fraud cases in 2011, but no security or privacy breaches occurred that required customer notification.

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Caesars properties paid no fines for non-compliance with laws and regulations during the reporting period.

Compliance PR9

Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.


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