Environmental Sustainability and Community Engagement Report COMPLETE VERSION D E D I C AT E D T O : employee s / g ue sts / environment / c ommunity Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Table of Contents • CEO Letter • Fast Environmental Facts • Fast Community Facts • Our Code of Commitment • About Our Company • About This Report • Corporate Governance • Managing Sustainability • Reducing Energy Use and Carbon Emissions • Case Studies: Conservation and Renewables • Reducing Waste • Using Less Water • Harrah’s Entertainment Reaching Out (HERO) • HEROs in the Community • Giving Back to Our Communities • Responsible Gaming • GRI Index Page 2 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Dear Stakeholders, Harrah’s Entertainment’s Code of Commitment is a public pledge to our guests, employees and the communities in which we operate that we will honor the trust they have placed in us. The Code influences every aspect of our business, including our vision for corporate citizenship and our approach to sustainability, and it is the foundation for this Environmental Sustainability and Community Engagement Report – a first for Harrah’s and the gaming industry. I am proud to announce that this report contains another first for Harrah’s and the industry: An EPA-approved commitment to achieve a 10 percent absolute reduction in greenhouse gas emissions for our U.S. properties by 2013. Over the last seven years, we have invested more than $60 million in energy efficiency projects, reducing our annual energy use by approximately 163 million kilowatthours and our carbon emissions by more than 100,000 metric tons. A majority of the lighting at our resorts, inside and out, has been replaced with energy efficient bulbs. Thermostats and controls have been upgraded and optimized; energy efficient heating, ventilation, and air conditioning technologies have been deployed; and advanced strategies have been used to improve system operations and reduce energy and water consumption. We have cut annual water consumption by 200 million gallons since 2005 and recycle more than 640,000 gallons of used cooking oil each year. As we retrofit facilities we make them more efficient. The recently opened 263,000 square-foot Octavius convention expansion at Caesars Palace in Las Vegas is Harrah’s first completed LEED project. Behind these achievements lie the hard work, passion and creativity of our 70,000 employees, particularly those who serve on our CodeGreen environmental action teams at every resort. The teams develop and implement environmental sustainability initiatives that range from helping build Habitat for Humanity’s first green-certified home to finding an innovative filtration system to convert waste vegetable oil from our kitchens into bio-fuel. Our HERO (Harrah’s Entertainment Reaching Out) teams volunteered 114,000 hours in 2009 in the communities where they live and work. Projects included sponsoring Back to School Shopping and Coat drives for lower income children, advocating for veterans, and serving as domestic response advocates. Harrah’s HERO and CodeGreen teams often work together on projects, such as retrofitting the only pediatric hospice in Southern Nevada to make it more attractive and environmentally efficient, planting edible gardens at local schools, and passing out 50,000 energy efficient light bulbs in local communities on Earth Day 2010. Page 3 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report We also make a financial commitment to our communities through charitable giving. In 2009, combined donations by Harrah’s Entertainment and our operations, along with our affiliated Harrah’s Foundation, totaled more than $67 million. The Harrah’s Foundation focuses primarily on promoting the well being of seniors. We are the largest corporate donor to the Meals On Wheels Association of America, and support Atlanta-based Second Wind Dreams, the AARP Foundation, the Clinton Foundation, Age UK and many local groups. In 2010 we are expanding our CodeGreen efforts to provide grants for workplace and in-home environmental projects such as those that reduce energy consumption. And increasingly, we are taking sustainability to “the front of the house,” helping guests understand the importance of sustainable practices and creating opportunities for them to be more sustainable when they visit. The environmental sustainability and community engagement initiatives I have shared with you flow through our business strategy and are essential to our business success. We recognize that challenges lie ahead, and take seriously the responsibilities that come with being an industry leader: Promoting social safeguards through responsible gaming, serving as stewards of the environment, and making our communities healthy and vibrant places to live and work. We are committed to ensuring that these principles remain at the heart of everything we do. On behalf of my colleagues at Harrah’s Entertainment, thank you for taking a moment to review this report and for learning more about the activities that serve as a source of great pride for the entire Harrah’s family. Sincerely, Gary Loveman Chairman, CEO and President Page 4 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Fast Environmental Facts Environmental Firsts for Our Industry • Joined EPA Climate Leaders Program • Announced Carbon Inventory and EPA-Approved Reduction Goals (June 2010) • Participated in Carbon Disclosure Project • Won EPA WasteWise Gold Achievement New Partner Award • Won EPA Regional Environmental Quality Award • Became a Founding Partner of Team Earth - Conservation International • Won Seven Travelife Gold Awards for Sustainability in Tourism • Won Sierra Club Toiyabe Chapter (southern Nevada) Environmental Stewardship Award Environmental Performance by the Numbers Since 2003, Harrah’s has: • Reduced energy use by an estimated 163 million kilowatt-hours a year • Reduced carbon emissions by an estimated 106,000 metric tons • Reduced annual water consumption by more than 200 million gallons • Recycled waste vegetable oil, reaching a total of more than 640,000 gallons in 2009 Fast Community Facts Employee Volunteers in the Community • In 2009 employee-led HERO (Harrah’s Entertainment Reaching Out) teams volunteered 114,000 hours in their communities. • Beneficiaries included the Nathan Adelson Hospice, Atlantic City Women’s Center, Habitat for Humanity, and Rebuilding New Orleans Together. • In 2010, 400 HERO volunteers at 27 Harrah’s resorts passed out 50,000 energy efficient compact fluorescent light bulbs in local communities. Page 5 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Harrah’s Entertainment Giving Back • Harrah’s Entertainment and its affiliated Harrah’s Foundation provide donations to local communities that enhance the quality of life for seniors, strengthen education at all levels, support community nonprofits and protect the environment. • In 2009 combined giving by Harrah’s Entertainment and its operations, along with its affiliated Harrah’s Foundation, totaled more than $67 million from all sources. • The Harrah’s Foundation has pledged more than $70 million over seven years to community nonprofits that include Conservation International, AARP Foundation, Age UK, the Clinton Foundation, Meals On Wheels Association of America, Second Wind Dreams and hundreds of local organizations. • Corporate, regional, and individual resort donations have benefited local nonprofits including Teacher EXCHANGE, African National Women’s Council in South Africa, Macau Red Cross, and the Maldonado Hospital in Uruguay. Note: For additional information on and data-gathering parameters for these Fast Facts, please see individual sections below (for example, Reducing Energy Use and Carbon Emissions) Page 6 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Our Code of Commitment Harrah’s Code of Commitment is a public pledge to our employees, our guests and our communities that we will conduct our operations responsibly and sustainably. Adopted in 2000, the Code articulates our corporate ethos, guides our relationships with stakeholders and steers our business operations. All employees receive training in the responsibilities outlined by the Code. Our Code of Commitment is a pledge to: • Our employees, to treat them with respect and provide them with opportunities to build satisfying careers • Our guests, to promote responsible gaming • Our communities, to help make them healthy and vibrant places to work The Code also states: • We believe in being responsible stewards of the environment and we’re committed to environmental sustainability and energy conservation. To learn more, please visit: http://www.harrahs.com/harrahs-corporate/about-us-code-of-commitment.html Harrah’s Entertainment employees at the Bally’s and Paris Las Vegas resorts implemented an impressive array of programs that have had a positive impact on the environment, and educated employees and the general public. – Ronald Vance, EPA Office of Resource Conservation and Recovery About Our Company Harrah’s Entertainment, Inc. is the world’s largest gaming, hospitality, and entertainment provider, with 70,000 employees, 52 resorts, 40,000 hotel rooms, and 1.5 million square feet of convention space. Based in Las Vegas, Nevada, Harrah’s has resorts in the United States, Macau (China), South Africa, the United Kingdom and Uruguay. Revenues in 2009 were $8.9 billion. The company’s properties operate primarily under the Harrah’s®, Caesars® and Horseshoe® brand names. Harrah’s also owns the World Series of Poker® and the London Clubs International family of casinos. To learn more, please visit: http://www.harrahs.com/harrahs-corporate/index.html Page 7 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report About This Report Harrah’s recognizes that sustainability is essential to achieving its core business objectives. This, our first environmental sustainability and community engagement report, is part of an overall strategy aimed at understanding and improving our sustainability performance and strengthening and building relationships with key stakeholders. This report is informed by the Global Reporting Initiative’s (GRI) G3 Guidelines. It presents information about Harrah’s’ U.S. resorts (excluding Planet Hollywood, acquired in Q1 2010) from January 2009 through June 2010, along with case study information from Harrah’s’ non-U.S. resorts. Some performance data are also provided for earlier years. In 2010, with GRI guidance, we launched CodeGreen Scorecard, a data gathering initiative that will enable us to provide more comprehensive information in future reports. We welcome stakeholder feedback on this report and on our overall corporate responsibility performance. Please send comments to: sustainabilityfeedback@ harrahs.com Corporate Governance at Harrah’s Harrah’s Entertainment, Inc., a Delaware corporation, is one of the largest casino entertainment providers in the world. Our business is primarily conducted through a wholly-owned subsidiary, Harrah’s Operating Company, Inc., although certain material properties are not owned by Harrah’s Operating Company, Inc. As of December 31, 2009, we owned, operated or managed 52 casinos in seven countries, but primarily in the United States and England. Our casino entertainment facilities operate primarily under the Harrah’s, Caesars and Horseshoe brand names in the United States. Our casino entertainment facilities include 33 land-based casinos, 12 riverboat or dockside casinos, three managed casinos on Indian lands in the United States, one managed casino in Canada, one combination greyhound racetrack and casino, one combination thoroughbred racetrack and casino and one harness racetrack and casino. Our 33 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, 2009, our facilities have an aggregate of approximately 3 million square feet of gaming space and approximately 39,000 hotel rooms. We have a customer loyalty program, Total Rewards, which has over 40 million members that we use for marketing promotions and to generate play by our customers when they travel among our markets in the United States and Canada. We also own and operate the World Series of Poker® tournament and brand. Page 8 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Unless otherwise noted or indicated by the context, the terms “Harrah’s,” “Harrah’s Entertainment,” “Company,” “we,” “us” and “our” refer to Harrah’s Entertainment, Inc. We were incorporated on November 2, 1989 in Delaware, and prior to such 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, Harrah’s Entertainment 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, hereinafter referred to as the “Acquisition,” valued at approximately $30.7 billion, including the assumption of $12.4 billion of debt and the incurrence of approximately $1.0 billion of acquisition costs. As a result of the Acquisition, the issued and outstanding shares of non-voting common stock and non-voting preferred stock of Harrah’s Entertainment are owned by entities affiliated with Apollo and TPG, certain co-investors and members of management, and the issued and outstanding shares of voting common stock of Harrah’s Entertainment are owned by Hamlet Holdings LLC, which is owned by certain individuals affiliated with Apollo and TPG. As a result of the acquisition, our stock is no longer publicly traded. To learn more, please visit: http://investor.harrahs.com/phoenix.zhtml?c=84772&p=irol-govHighlights Managing Sustainability Harrah’s Entertainment, Inc.’s (“Harrah’s”) environmental sustainability and community engagement strategy is approved by the CEO, reviewed periodically by the senior management team, and governed by a CodeGreen Sustainability Steering Committee made up of senior executives that include a Regional President, General Manager, Vice President Capital Effectiveness, Facilities Manager, Sustainability Liaison/ Procurement Manager, Political Director, Director of Sustainability and Corporate Social Responsibility, Director of Energy and Environmental Services and Manager of Environmental Services. Direct leadership for the sustainability program is provided by the Corporate Director of Sustainability and Corporate Social Responsibility, and the Corporate Director of Energy & Environmental Services. A corporate-level sustainable sourcing liaison in the Strategic Sourcing and Procurement Department focuses on green procurement. Page 9 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Harrah’s comprehensive environmental sustainability strategy, launched in 2008, is known internally as CodeGreen. Senior management at each U.S. resort appoints a CodeGreen Lead who directs the team and its executive committee. CodeGreen Leads are held accountable for implementing a sustainability strategy that includes action measures and employee training on issues such as water conservation and “green meetings.” Each resort also has an EPA WasteWise Lead to track recycling and waste, and a Utility Lead who: (1) serves as liaison to the Energy and Environmental Services Group for participation in the EPA Climate Leaders program, and (2) implements energy and water reduction initiatives. CodeGreen teams comprise key functions in operations: Facilities, Food and Beverage, Communications, Hotel Operations, and Human Resources, among others. Continuous improvement and feedback measures include annual internal sustainability surveys at each resort regarding activities and implementation, annual CodeGreen Employee Opinion Surveys, quarterly Utility Scorecards, EPA WasteWise participation (company-wide as of 2010), and, as of July 2010, a CodeGreen Scorecard that encompasses each of these areas and guest responses. To address critical environmental issues on a broader scale, Harrah’s has formed relationships with Conservational International’s Business & Sustainability Council, Business for Social Responsibility, the U.S. Chamber of Commerce’s Environmental Committee, and TPG’s (one of Harrah’s’ private equity owners) Environmental Workgroup. We also partner with communities to address local needs. For example, Harrah’s was instrumental in developing Green Chips, a new nonprofit organization that coordinates sustainability initiatives in southern Nevada by bringing large employers, governments, nonprofits and electric utilities together for discussion and planning. The group has created a 12-month “Convene for Green” roundtable to develop a regional sustainability roadmap. Page 10 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Reducing Energy Use and Carbon Emissions Environmental sustainability and energy conservation are intrinsic to Harrah’s commitment to communities and inform company decision-making on an ongoing basis. Since 2003, when we formed the Corporate Energy and Environmental Services Group, we have invested more than $60 million in energy retrofits, training and green building initiatives. In 2008, we became the first gaming entertainment company to join the Environmental Protection Agency’s (EPA) Climate Leaders program. We are proud to report that in 2010, we opened our first LEED Silver certified facility, the 263,000 square-foot Octavius convention expansion at Caesars Palace. Our strategy has been to make energy conservation investments across all our properties – rather than to build a single showcase project – because we knew this approach would achieve greater aggregate reductions. – Gary Loveman, Chairman, CEO and President, Harrah’s Entertainment • Carbon Inventory and Reduction Goals: In this report Harrah’s announces its first carbon inventory (see below) for its U.S. resorts* along with an EPA-approved absolute emissions reduction goal of 10 percent from 2007 to 2013. Harrah’s is a Carbon Disclosure Project participant. • Reduced Carbon Emissions: As a result of energy efficiency improvements over the last seven years, Harrah’s cut its annual carbon emissions by an estimated 106,000 metric tons**, the equivalent of 122,000 roundtrip flights from Los Angeles to New York not taken, or of adding the carbon storage capacity of 88,000 new acres of pine forest for one year. • Reduced Energy Consumption: Through corporate-level investments in energy efficiency that began in 2003, Harrah’s has reduced the energy consumption of its operations by an estimated 163 million kilowatt-hours per year***, enough to power 15,000 average homes. Additional energy savings have occurred through improved operational efficiencies, conservation efforts, and operations and maintenance investments that have occurred during the normal course of business. *Excluding Planet Hollywood, acquired in Q1 2010 **Emissions calculated using national average emissions factors applied to estimated energy savings resulting from corporate efficiency investments from 2003 through 2009. ***Data represents projects implemented through corporate energy program. Regions and individual resorts have made additional investments. Page 11 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report HARRAH’S DOMESTIC GHG EMISSIONS BY SOURCE CATEGORY Purchased Steam: 2% Purchased Chilled Water: 1.5% Stationary Combustion: 16% Fugitive Emissions: 2% Mobile Combustion: 2% Purchased Electricity: 76.5% ENERGY METRICS U.S. OPERATIONS ‘07 ‘08 ‘09 ‘07 ‘08 ‘09 Greenhouse Gases ‘07 1,108,530 1,131,640 Total metric tons CO2e 1,170,150 3,415,960 3,487,780 3,392,690 1,403,170 1,444,660 Natural Gas Total million BTU 1,505,350 Electricity Total megawatt-hours ‘08 ‘09 Carbon Inventory Methodology Harrah’s used Climate Leaders GHG Inventory Guidance, based on the existing GHG Protocol Corporate Accounting and Reporting Standard developed by the World Resources Institute and the World Business Council for Sustainable Development, to quantify emissions for operations beginning in 2007. (Emissions and reductions prior to 2007 are estimated.) The Climate Leaders inventory catalogues six greenhouse gases and covers emissions generated on-site (Scope 1), as well as emissions from purchased energy such as electricity (Scope 2). Scope 3 emissions have not been inventoried. Page 12 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report CASE STUDIES: Conservation and Renewables • A co-generation facility at Harrah’s Rio All-Suites Hotel and Casino in Las Vegas generates five megawatts of electricity, reducing energy loss through transmission lines and capturing waste heat to create hot water. Harveys Lake Tahoe and Showboat Atlantic City also have co-generation facilities. • The Rincon Band of San Luiseño Indians developed a one-megawatt solar plant that provides enough power to offset 90 percent of Harrah’s Rincon Casino’s heating and air conditioning needs. As part of the project, Harrah’s Rincon Casino also upgraded heating and air conditioning systems, saving 3.3 million kilowatthours a year. • Harrah’s four Atlantic City resorts were collectively named New Jersey’s Clean Energy Business Leader of the Year in 2009 for taking a comprehensive approach to energy efficiency. The effort included replacing guestroom thermostats, installing energy efficient interior and exterior lighting, subsidizing public transit for 1,400 resort employees, and upgrading air conditioning, heating and ventilation systems controls. In 2008, the four resorts won a regional EPA Environmental Quality Award. • Harrah’s Chester Casino and Racetrack in Pennsylvania upgraded heating and cooling systems, implemented advanced control strategies for heating, ventilation and air conditioning equipment, and installed energy efficient lighting. Along with other measures, these improvements reduced annual electricity use by more than 2.8 million kilowatthours and 8,800 MMBtu. Harrah’s Entertainment and the Rincon tribe are leading community green efforts by example. Our one-megawatt solar plant has cut our grid consumption by almost 25 percent, and our expanded chiller plant captures waste heat to heat our water. At Rincon, CodeGreen isn’t a slogan; it’s a way of life. – Brendan O’Kane, Property Operations Manager, Harrah’s Rincon Hotel & Casino, California Page 13 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report CASE STUDIES: Reducing Waste Waste reduction is central to Harrah’s commitment to environmental sustainability. We are proud to be the first national gaming company to join EPA WasteWise, and gratified that the EPA recognized our hard work with a WasteWise New Partner Gold Achievement Award. Here are some examples of waste reduction initiatives at Harrah’s: • The Bally’s & Paris Las Vegas combined CodeGreen team pursued an intensive mapping and walk-through process to identify new opportunities to eliminate or reduce waste. This led to a 50 percent increase in materials recovered for recycling and a 33 percent reduction in trash. Other Bally’s and Paris Las Vegas waste reduction initiatives include: • New filtration and bottling systems that produce premium mineral water on-site. Packaged and served in reusable glass bottles, and sold as an environmentally friendly alternative, the mineral water has greatly reduced the volume of glass water bottles that go to recycling. Served in eight Bally’s and Paris Las Vegas restaurants and another 20 Harrah’s restaurants across the United States, the water now outsells premium brands. An additional benefit is reduced shipping, which has cut carbon emissions by an estimated 25,000 pounds a week. • Management provides produce and baked goods at cost to help draw thousands of employees to Harrah’s Green Farmers Markets, which offer environmental education and free CFL light bulbs. Volunteer carpenters, gardeners, and seamstresses turn excess and recycled materials into everything from gardening tables to purses and tote bags to be sold at the employee events. The Green Farmers Markets raise money for and awareness of environmentally sustainable activities, employees in need and community organizations. Page 14 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report • Harrah’s St. Louis Hotel and Casino in Missouri won the recycling round of the company-wide CodeGreen competition by recycling 8,000 pounds of batteries, 23,000 pounds of fluorescent bulbs, five different kinds of metal and wire, computer and slot machine circuit boards, cell phones, CDs, DVDs, and eyeglasses. The team’s robust employee engagement program includes comprehensive management training, posters, table tents, management memos, and parking lot receptacles where employees are encouraged to drop recyclables from home. • In Indiana, the Horseshoe Casino Hammond CodeGreen team identified an innovative filtering system that turns waste vegetable oil (WVO) from its kitchens into clean-burning bio-fuel. The fuel is used to run utility vehicles and heats a large warehouse. All Harrah’s U.S. resorts filter and recycle the daily production of WVO or deliver it to outside vendors to be recycled and used elsewhere. In 2009 domestic properties recycled more than 640,000 gallons of WVO. • At Harrah’s Louisiana Downs Casino and Racetrack, the innovative CodeGreen team encouraged on-site horse trainers to use straw rather than wood shavings for stable bedding. This enabled a local mushroom farm to use the bedding and manure for compost. During the racing season the resort now converts nearly 400 tons of would-be waste into productive agricultural use. By demonstrating that a corporate recycling program can be operated efficiently and sustainably, we hope that city agencies will follow our lead and get the curbside residential programs back in operation – Patrick Maher, Director of Facilities, Harrah’s New Orleans Hotel & Casino Page 15 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report CASE STUDIES: Using Less Water Reducing water consumption is essential to environmental stewardship and an important aspect of our sustainability strategy. Harrah’s has implemented multiple conservation approaches that have led to a companywide reduction in water consumption of more than 200 million gallons a year. • These approaches include installing more efficient fixtures, offering a standardized in-room opt-out linen program at our hotels, and serving water upon request only in restaurants and at banquets. • The innovative technology chosen for an upgrade of the laundry facility that serves eight of our Las Vegas resorts saves 72 million gallons of water a year, while increasing capacity by 40 percent and reducing energy consumption. • Water conservation programs at our golf courses have cut consumption by as much as 60 percent. These initiatives include replacing irrigated turf in non-playable areas with drought-resistant landscaping, which also permits substantial cuts in the use of fertilizer and chemicals, and increases wildlife habitat. Here are some examples of water conservation and biodiversity initiatives at Harrah’s’ golf courses: • The Chariot Run Golf Course at Harrah’s Horseshoe Southern Indiana resort achieved Audubon Cooperative Sanctuary Certification, in part for cutting annual water use by 27 million gallons from 2007 to 2009, reducing irrigated areas from 126 to 76 acres, and increasing the use of organic fertilizers from 55 to 90 percent. Since 2006 natural habitat has increased 63 percent, sparking the re-emergence of native plant and tree species. Wildlife corridors have been built that connect to surrounding native areas. Chariot Run won a 2009 Environmental Leaders in Golf Award for leadership and sustainability in golf course management from the Golf Course Superintendents Association of America and Golf Digest. Page 16 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report • Harrah’s Atlantic City Country Club in New Jersey reduced water consumption by 60 percent through use of drought tolerant grass varieties, reduced mowable acreage, more precise irrigation, and an equipment wash-down area that recycles water. The course is now adding and repairing drainage areas, which will cut the amount of chemicals and machinery required for maintenance. • In southern Nevada, the Cascata and Rio Secco golf courses replaced grass in non-playable areas with drought resistant landscaping, upgraded computerized irrigation systems for greater efficiency, and changed mowing patterns to reduce time spent on fairways and tees. The result is reduced fuel consumption and greenhouse gas emissions. The courses were also among the first to work with the Southern Nevada Water Authority (SNWA) to implement its Water Smart Landscape Program. • Caesars Golf Macau in China introduced Integrated Pest Management to reduce water consumption and the use of fertilizer and pesticides. It also established an eco-friendly habitat for ducks and other wildlife. The course is in the process of being certified by the International Audubon Society. Water* 3,310,320 3,429,450 Total gallons (000s) N/A ‘07 ‘08 ‘09 Does not include some non-gaming properties such as office buildings and several golf courses Page 17 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Volunteering in Our Communities Harrah’s is deeply committed to making its communities healthy and vibrant places in which to live and work. Employee-based Harrah’s Entertainment Reaching Out (HERO) teams at each of our resorts lend time, expertise, creativity, and passion to initiatives that improve people’s lives. In 2009 HERO teams contributed 114,000 volunteer hours at nearly 600 individual HERO events. Volunteerism initiatives frequently are combined with philanthropic gifts to achieve greater impact and meet both environmental and social needs. For example, our Atlantic City employees helped build the nation’s first green-certified* Habitat for Humanity home with the support of a $125,000 grant from the Harrah’s Foundation. The completed house was quieter and more comfortable than a traditionally built home, and offered lower energy and water costs. *NAHBGreen - National Green Building Program Page 18 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report HEROs in the Community HERO teams at every Harrah’s property contribute to the betterment of their communities. Here are some examples: • The nonprofit Nathan Adelson Hospice in Las Vegas plays an essential community role as the only hospice in Southern Nevada that serves pediatric patients, but its facilities were aging. Nearly 100 CodeGreen team members from multiple Harrah’s resorts helped renovate the hospice, making it more attractive, reducing its environmental footprint, and cutting its utility bills by 15 percent. Projects included replacing inefficient water fixtures, weather-stripping doors to increase energy efficiency, repainting everything from window trim to the aviary with eco-friendly paint, switching to rechargeable batteries, and planting desert-friendly landscaping. The work done at Nathan Adelson Hospice by Harrah’s volunteers allows us to continue to care for our patients, their friends and families in a healthier, more sustainable environment. – Carole A. Fisher, President and CEO, Nathan Adelson Hospice, Las Vegas • Table Games Dealer Colleen McIntyre-Berenotto at Showboat Atlantic City in New Jersey sets a high standard for community service. In 2009 she volunteered 386 hours as a veteran’s advocate, 416 hours as a domestic response advocate, and 60 hours as a HERO committee representative, averaging 17 hours a week. For this extraordinary effort, Colleen earned a President’s Volunteer Service Award signed by President Obama, bestowed on individuals whose commitment and example inspire others to volunteer. • Accounting Services Clerk Janet Leis at Harrah’s Reno in Nevada is an energetic organizer for Salvation Army dinners, and helped organize Back to School Shopping and Coat drives for lower income families. She also raised money and recruited volunteers to send 700 packages to U.S. troops in the Middle East, and launched a resort-wide recycling program. • CodeGreen volunteers from Harrah’s New Orleans work with the Coalition to Restore Coastal Louisiana to preserve critical cypress and mangrove forests. These forests stabilize barrier islands, improving wildlife habitat and providing critical flood protection. New Orleans HERO volunteers support Boys Town and Junior Achievement. To learn more about HERO, please visit: http://www.harrahs.com/harrahs-corporate/about-us-HERO.html Page 19 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Giving Back to Our Communities Harrah’s is committed to supporting the communities in which it is privileged to operate by donating to local charitable organizations. In 2009 combined giving by Harrah’s Entertainment and its operations, along with its affiliated Harrah’s Foundation, totaled more than $67 million. Of this, $13.5 million was discretionary. The Harrah’s Foundation provides multi-year donations to community nonprofits, with a core focus on promoting vitality, longevity, and independence among seniors. The Foundation is the largest corporate donor to the Meals On Wheels Association of America, and supports Atlanta-based Second Wind Dreams, the AARP Foundation, Age UK, the Clinton Foundation, the Brees Dream Foundation and many local groups. Atlanta, Georgia-based Second Wind Dreams’ mission is to improve the quality of life in elder care communities by identifying and fulfilling resident’s individual life dreams. Harrah’s Foundation donations helped reunite 89- and 93-year-old sisters separated for 13 years, sent an 81-year-old fan to an Aretha Franklin concert, and helped a 68-year-old woman who felt she had let her family down by failing to graduate high school receive a diploma for life-long learning. Harrah’s Foundation also provides educational and civic grants to local groups vital to the success of communities. Examples include Guardian Family Services in Metropolis, Illinois, and Bossier Arts Council in Bossier City, Louisiana. To learn more about the Harrah’s Foundation, please visit: http://www.harrahsfoundation.com Page 20 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Corporate, Regional and Resort Giving Harrah’s also gives back to its communities at the corporate level and through its regional operations and resorts. For example, the Las Vegas Region and Harrah’s Foundation jointly awarded a $700,000 grant to the nonprofit Teacher EXCHANGE, a reuse/recycle center where teachers in Southern Nevada can obtain donated new or gently-used computers, furniture, and office supplies at no cost. Las Vegas Meetings By Harrah’s Entertainment has supported the effort with a donation of $50,000 in lightly used or new convention and office materials over the last several years. Donations from Harrah’s international resorts include: • Emerald Resort and Casino in South Africa donated funds to refurbish a home health care facility that serves 200 patients. • Conrad Punte del Este Casino and Resort in Uruguay donated $50,000 to Maldonado Hospital for the purchase of medical equipment, and provides annual donations of school supplies, materials and clothes for school children. • Caesars Golf Macau donated $1 million (HKD), raised through local fundraising efforts, to the Macau Red Cross for Szechuan earthquake victims. To learn more, visit: http://www.harrahs.com/harrahs-corporate/about-us-community.html Responsible Gaming Harrah’s is committed to social sustainability and social safeguards. Responsible gaming is core to our Code of Commitment and part of our corporate heritage, culture and daily operations. Harrah’s established the first task force to study problem gambling issues more than two decades ago, then implemented the industry’s first responsible gaming initiative, and funded a 24-hour toll-free helpline at the National Council on Problem Gambling. We provide ongoing financial support to the National Center for Responsible Gaming, and have been a consistent public advocate of responsible gaming practices. We want the people who gamble at our casinos to be there for the right reason – to have fun. To learn more, please visit: http://www.harrahs.com/harrahs-corporate/about-us-responsible-gaming.html Page 21 of 22 Harrah’s Entertainment Environmental Sustainability and Community Engagement Report Global Reporting Initiative Index Harrah’s Entertainment recognizes the importance of the Global Reporting Initiative (GRI) standards to transparent, relevant reporting. This Environmental Sustainability and Community Engagement report was informed by and references GRI G3 Guidelines. It is G3 Undeclared. To learn more, please visit: http://www.globalreporting.org/Home DISCLOSURE DESCRIPTION REPORT SECTION STRATEGY AND ANALYSIS 1.1 Statement from the most senior decision-maker of the organization about CEO Letter the relevance of sustainability to the organization and its strategy ORGANIZATIONAL PROFILE 2.1 Name of the Organization About Our Company 2.2 Primary brands, products, and/or services About Our Company 2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures About Our Company 2.4 Location of organization’s headquarters About Our Company 2.5 Number of countries where the organization operates, and names of countries About Our Company with either major operations or that are specifically relevant to the sustainability issues covered in the report 2.6 Nature of ownership and legal form Corporate Governance 2.10 Awards received during the reporting period Fast Environmental and Community Facts REPORT PARAMETERS 3.1 Reporting period for information provided About This Report 3.4 Contact point for questions regarding the report or its contents About This Report 3.7 State any specific limitations on the scope or boundary of the report About This Report 3.9 Data measurement techniques and the bases of calculations, including Reducing Energy Use and Carbon assumptions and techniques underlying estimations applied to the compilation Emissions & About This Report of the Indicators and other information in the report 3.12 Table identifying the location of the Standard Disclosures in the report GRI Index GOVERNANCE, COMMITMENTS, AND ENGAGEMENT 4.1 Governance structure of the organization, including committees under the Corporate Governance highest governance body responsible for specific tasks, such as setting strategy & Managing Sustainability or organizational oversight 4.6 Processes in place for the highest governance body to ensure conflicts of interest Corporate Governance are avoided 4.8 Internally developed statements of mission or values, codes of conduct, and Code of Commitment principles relevant to economic, environmental, and social performance and the & Responsible Gaming status of their implementation. 4.13 Memberships in associations and/or national/international advocacy Managing Sustainability & Fast organizations Environmental and Community Facts 4.14 List of stakeholder groups engaged by the organization Managing Sustainability & Fast Environmental and Community Facts ECONOMIC EC8 Development and impact of infrastructure investments and services provided primarily Giving Back to Our Communities for public benefit through commercial, in-kind, or pro bono engagement (Core) ENVIRONMENTAL Disclosure on Management Approach Managing Sustainability EN3 Direct energy consumption by primary energy source (Core) Reducing Energy Use and Carbon Emissions EN5 Energy saved due to conservation and efficiency improvements (Additional) Reducing Energy Use and Carbon Emissions EN8 Total water withdrawal by source (Core) Using Less Water EN16 Total direct and indirect greenhouse gas emissions by weight (Core) Reducing Energy Use and Carbon Emissions EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved (Additional) Reducing Energy Use and Carbon Emissions LABOR PRACTICES AND DECENT WORK LA1 Total workforce by employment type, employment contract, and region (Core) About Our Company PRODUCT RESPONSIBILITY PR5 Practices related to customer satisfaction, including results of surveys measuring Managing Sustainability customer satisfaction (Additional) Page 22 of 22